H-1789              _______________________________________________

                                           HOUSE JOINT MEMORIAL NO. 4020

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Nelson, Sprenkle, Valle, Rust, Jacobsen, Spanel, Brekke and Ferguson

Read first time 2/19/87 and referred to Committee on Ways & Means.

TO THE HONORABLE RONALD REAGAN, PRESIDENT OF THE UNITED STATES, AND TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED, AND TO THE SECRETARY OF DEFENSE:

          WHEREAS, Retail sales occurring on federal military bases are exempt from state and local sales taxes, resulting in an annual revenue loss to the State of Washington of twenty-six million dollars.  Nationally, the revenue loss exceeds one-half billion dollars; and

          WHEREAS, Large shopping facilities on military bases, which were once justified because of the isolation from civilian communities and public shopping facilities, are no longer justified; and

          WHEREAS, The tax exemption for sales on military bases, including alcohol and tobacco products, increases inequities in the state's tax structure and encourages the transfer of merchandise to persons not authorized to make purchases on military bases; and

          WHEREAS, The shift of programs and responsibilities to state and local government under the "new federalism" doctrine should also provide for tax equity between the state and federal government;

          NOW, THEREFORE, Your Memorialists respectfully pray that Congress enact legislation to remove the military exemption from state and local sales, alcohol, and tobacco taxes or, alternatively, provide for payments in lieu of the state and local taxes.

          BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable Ronald Reagan, President of the United States, the Secretary of Defense, the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the State of Washington.