TOP STORIES
Governor signs new taxes increases into law
The cost of everything from a visit with your lawyer or accountant to a can of Coke and a candy bar will soon be going up.
Gov. Chris Gregoire signed into law Friday a
$780 million tax package that includes a temporary three-tenths percent increase in the business-and-occupation tax for service businesses and a boost in the state’s tobacco tax. Both of those increases go into effect Saturday. Higher taxes on soda pop, candy, bottled water, chewing gum, mass-marketed beer and direct sellers such as Mary Kay distributors will follow later this year. AWB is disappointed that legislators resorted to raising taxes rather than tackling the hard work of serious government reform and further compounding the state’s fragile economy. For a good overview of the tax package, see the Washington Research Council’s
policy brief.
Assistance is available to employers as new taxes take effect
Employers should watch their online account messages from the Department of Revenue as they log in to their taxpayer account for new taxes that go into effect May 1, June 1 and July 1. More information, including a special notice on cigarette tax increases with instructions on inventory and stamping is available on DOR’s
Web site. For more information or assistance with specific issues, contact AWB’s
Amber Carter or call the taxpayer assistance hotline at 800.647.7706.Finally,
click here if you need to obtain a ruling request from DOR on a specific tax situation.
Campaign begins for state income tax initiative
A state income tax will be up for a vote in November if
Initiative 1077 gets on the ballot. Bill Gates, Sr. and other income tax advocates
introduced I-1077 last week, a proposal that would enact an income tax on the top 3 percent of the state’s earners. A couple earning $1 million would pay approximately $30,000. Couples earning above $400,000 would be taxed at 5 percent, and 9 percent above $1 million. In exchange, the initiative would reduce the state’s share of property taxes by 20 percent and allow the majority of small businesses to avoid paying business-and-occupation taxes. Washington voters have said no to a state income taxes four out of five times since 1932, and the state Supreme Court twice ruled that graduated income taxes are unconstitutional. An initial poll, however, showed
strong support for the idea among voters. The Seattle Times came out against the initiative, stating in
an editorial that it will stymie job creation.
AWB endorses Wilcox, Wyatt
Last week, the AWB Executive Board took action to provide an early endorsement to association members J.T. Wilcox and Nancy Wyatt who are running for the State House of Representatives.
Wilcox is the chief financial officer of Wilcox Farms and is pursuing Position 2 in the 2nd Legislative District currently held by Rep. Tom Campbell, R-Roy.
Wyatt, president and chief operating officer of the Auburn Area Chamber of Commerce, is a Republican who is pursuing the Position 1 seat in the 47th Legislative District currently held by Rep. Geoff Simpson, D-Covington. AWB’s policies support early endorsement of association members running for office. Both candidates emphasize job growth as a priority in their campaigns. AWB encourages our members to be active in the political process and to support business-minded candidates.
Europeans still competing against Boeing for Air Force tanker contract
The Boeing Co. will have competition for the $35 billion contract to build an Air Force tanker fleet. The
European Aeronautic Defence and Space Co. (EADS)
announced Tuesday it will remain in the fight against Boeing for the contract, without its North American partner Northrop Grumman. The Pentagon has offered to extend the May 10 deadline by 60 days to help EADS assemble a bid. If Boeing wins the competition, the tanker would be built at its factory in Everett. Approximately 9,000 jobs in Washington state
directly depend on Boeing winning the contract.
New climate change legislation suffers setback
Sen. Lindsey Graham, the lone Senate Republican working with Democrats and the Obama administration on a climate and energy bill,
withdrew his support for the plan over the weekend to
protest Democrats’ plans to put immigration reform ahead of the climate legislation. Prior to his announcement, a new climate bill was expected to be introduced as early as today. Graham, R-S.C., had been working closely with Sens. John Kerry, D-Mass., and Joe Lieberman, I-Conn. on the legislation. Details were sketchy, but it was expected to include a cap on emissions from utilities, a fee on transportation fuels and expanded offshore drilling and nuclear power.
Sen. Darlene Fairley announces her retirement
Sen. Darlene Fairley, D-Lake Forest Park, is the latest Washington legislator to announce her retirement. “I've always believed that if you hate what you're doing, and you can't give it your best, stop doing it,” Fairly wrote last week
in a message to her constituents. Fairley’s announcement brings to 14 the number of state lawmakers who won’t return to Olympia next year, either due to retirement or because they are running for another office.
Federal financial reform effort split along party lines
Senate Republicans are
reportedly working on a rival bill to overhaul Democrats’ proposed regulation of the nation’s financial system if a bipartisan deal cannot be struck, possibly as early as later today. Sen. Richard Shelby, R-Ala.,
said Monday that Republicans had enough votes to block Democrats from beginning a debate on the Senate floor, but he suggested the unity could be tenuous, The Wall Street Journal reported.
AWB names Kris Johnson as new vice president of operations
AWB
announced Wednesday that Kristofer T. Johnson will become its new vice president of operations. Johnson will come aboard in August and transition into the position. He is currently president of the
Saint Paul (Minn.) Area Chamber of Commerce. Prior to that, Johnson led the
Tri-City Regional Chamber of Commerce in Kennewick, where he served on the AWB Board of Directors. “Kris is an extremely talented organizational manager and a dynamic leader. He brings an array of valuable skills to our leadership team to help AWB in the years ahead. We look forward to having him aboard this summer,” said AWB President Don Brunell. Johnson will succeed Dick Walter, who is retiring at the end of the year, but will continue working part time in areas including membership development, investment and benefit programs.
KEY HEARINGS, MEETINGS
Learn what’s next for health-care reform at AWB’s spring meeting, May 11-12
Need to gain a better understanding of how the new health-care reform law will affect your business? AWB has assembled a panel of experts to discuss what’s next during our
spring board meeting in Spokane. It will include an overview of the new law, as well as details about how it relates to state initiatives and implementation timelines. AWB will live-stream the event on our Web site for those who are unable to attend. The board meeting also features remarks by Dr. Elson Floyd, president,
Washington State University; David Allen, executive vice president,
McKinstry Co.; Dr. Arun Raha, executive director of the
Washington State Economic and Revenue Forecast Council; the presentation of AWB’s annual Community Service and Environmental Excellence Awards; and discussions on the 2010 legislative session by AWB’s Government Affairs staff. The meeting is at the
Davenport Hotel in Spokane May 11-12.
Register online or contact AWB’s
Jodi Martinez.
DOR will discuss new taxes at next Tax and Fiscal Policy Council meeting
Representatives of the
Department of Revenue will discuss implementation of tax avoidance and other provisions passed by the 2010 Legislature at AWB’s Tax and Fiscal Policy Council meeting on Wednesday, May 5, 9:30-noon, at AWB. For more information, contact AWB’s
Amber Carter.
David Dicks at Puget Sound Partnership Subcommittee meeting, May 5
AWB members will hear from staff from the
Puget Sound Partnership, including Executive Director David Dicks, on a wide range of issues including a 2010 legislative session review, the current work of the
PSP Ecosystem Coordination Board and its newly formed workgroups, the
PSP Leadership Council, and development of the PSP’s 2011 legislative agenda. The meeting is on Wednesday, May 5, 1:30 – 3:30 p.m., at the
Master Builders Association of King and Snohomish Counties, 335 116
th Ave. SE, Bellevue. For more information, contact AWB’s
Chris McCabe.
AWB Air Quality Committee, April 28
Department of Ecology’s Air Program staff members Sarah Rees and Stu Clark will provide an update to AWB’s Air Quality Committee regarding greenhouse gas emissions reporting, ozone, regional haze and other issues. The meeting is Wednesday, April 28 from 2 -4:15p.m. at AWB. For more information, contact AWB’s
Grant Nelson.
New draft boatyard permit – comments due May 28
Following legal appeals and settlement negotiations, the Department of Ecology reissued a new draft
boatyard general permit. The permit covers approximately 80 boatyards in Washington state that are engaged in construction, repair and maintenance of small vessels. Ecology will hold two public hearings on the draft permit; one on
May 24 in Lacey and the other on
May 26 in Everett. Comments are due by 5 p.m. on May 28. For more information, contact AWB’s
Grant Nelson.
OTHER NEWS
IRS sends notice of new tax credit to small businesses
The Internal Revenue Service began mailing notices last week to 4 million small employers advising them they may be eligible for a new small-employer tax credit if they provide health insurance to their employees.The credit was included as part of the Patient Protection and Affordable Care Act, the new health-care reform legislation, and can be claimed as part of 2010 federal tax filings.In general, it is available to employers with fewer than 25 employees who pay less than $50,000 in average annual salaries.However, the process for determining the exact value of the credit is complex and employers should be aware that any amount claimed must be subtracted from the amount of health-care expenses claimed as federal tax deductions.AWB has prepared an
overview of the tax credit to help employers identify interest and eligibility.A
broad overview of the Patient Protection and Affordable Care Act is also available.For more information, please contact AWB’s
Donna Steward.
Bucking the trend: Tell us who started or expanded a business during the recession
Do you know of a business that started or expanded during the height of the recession? Counter-intuitive as it may seem, an economic downturn is supposedly a great time to start a new business, at least according to some experts. Sixteen of the 30 companies that made up the Dow industrial average at the start of the 2008 recession reportedly began during a recession or depression. Help us identify the Washington companies that either started from scratch or expanded during the latest recession so we can feature them in a possible upcoming article in our magazine, Washington Business. Contact AWB’s
Jason Hagey to share your story.
AWB members honored for commute reduction efforts
Six AWB members —
General Plastics Manufacturing Co.,
Propel Insurance,
Microsoft,
Everett Clinic and
Western Institutional Review Board — were recently honored for their commute trip reduction efforts with the
Governor's Commute Smart Awards. These awards, sponsored by Washington’s
Department of Transportation, recognize the contributions of communities, businesses, agencies and employee transportation coordinators in creating better traffic flow and cleaner air. Read more about this story on AWB’s
Member Spotlight. If you have good news to share about your company, contact AWB’s
Paul Schlienz.
Washington Business Week now open for registration
Washington Business Week is accepting registrations now for its 35th annual summer program lineup for high school students. AWB founded the program with the aim of exposing young people to the world of free enterprise and entrepreneurship. For one full week, students live on a university campus while they explore possible future careers in fields including health care, construction and manufacturing. In addition to students, the program needs volunteer mentors and judges.
Register online as either a student or mentor. To learn more, watch
this video or contact
Steve Hyer, executive director, at 253.815.6900.
Fast Facts survey winners
Congratulations and a big thank you to Ann Jarvis of the Associated Builders and Contractors of Washington in Bellevue and Sara Hamilton of The Tux Store, Inc. in Kennewick, just two of the hundreds of AWB members who took the time to complete our survey about Fast Facts. Both Jarvis and Hamilton will receive a complimentary Starbucks gift card for completing the survey. We appreciate everyone who responded and will use member feedback to guide our efforts to improve this e-newsletter.
AWB EVENTS & RESOURCES
2010 AWB Salary and Benefits Survey results now available
The first quarterly release of the
AWB Salary and Benefits Survey results are now available
. The AWB Salary and Benefits Survey results are updated quarterly and provide the ability to select and filter results by geographic location, industry, annual revenue and/or number of employees. The survey results include a comprehensive set of statistics and analysis tools. Incentive pay, pay practices and benefits results are also included for no additional cost. AWB members receive a $150 discount off the standard subscription price. The discounted rate is $349 for survey participants and $749 for non-participants. Subscribe using the special promotion code AWB223
to receive the discount.
Click here to sign-up now! If you have not yet participated in the survey, it's not too late. Since the survey results are updated quarterly, your data can still be included.
Employee handbooks and personnel policies: Are you in compliance?
Given the growing legal and practical importance of personnel policies in today's workplace, many employers are turning to the use of employee handbooks to implement and communicate the details of the employer/employee relationship. A carefully prepared and customized handbook can be an employer's biggest weapon against labor and employment litigation, if properly crafted and utilized. This seminar on Tuesday, May 4, from 8 a.m. – noon at the Holiday Inn Seattle-SeaTac Airport (17338 International Blvd., SeaTac) will offer helpful advice on what to include in your employee handbook so that you can maximize communication and minimize your liability. For more information, contact AWB’s
Jodi Martinez.
Reminder: We need your nominations for AWB Board
AWB is seeking nominations for its board of directors. Please send the name and contact information of your nominee(s)
to Dick Walter, AWB vice president of operations, by Friday, April 30.
THEY SAID IT
“With some of the highest unemployment rates in the state in nearly two decades, this legislative session should have been about jobs and what we could do to get people working again. Instead, Washington has higher unemployment now than it did when the Legislature convened in January and, unfortunately, we can expect a lot more people out of work when the new tax hikes take effect.” –
Rep. Dan Kristiansen, R-SnohomishThis Week's President's Perspective: Mistake to bypass the moon
