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AWB Case Studies
Kaiser Aluminum
AWB Action Saves Members on Licenses and Taxes
Embargoed at the Dock
When Kaiser Aluminum found itself at loggerheads with the State of Washington over some wheeled equipment it was
importing for its Washington operations, the company came to AWB. State regulators wanted to have Kaiser license its
machinery which was to be used within its operations. Since it was the early 1990s and Washington still had its Motor
Vehicle Excise Tax (MVET), the company was to pay thousands of dollars in MVET taxes. And, since it was the early 1990s
and the legislature still hadn’t passed the AWB backed sales and use tax exemption on manufacturing machinery,
equipment, repair and replacement parts and for research and development, the licenses fees and MVET was piled on to the
sales and use taxes.
When Kaiser Appeals Failed, AWB Got Results
Kaiser did the right thing. It appealed the state’s decision, but lost. AWB got involved through our Tax and Fiscal
Policy Committee and, on behalf of the Association’s entire membership, we appealed and won. If we hadn’t won this
appeal, then every folk lift in every operation in our state, for example, would have had to be licenses and companies
would paid an annual excise tax (MVET). That would have cost Washington businesses millions for wheeled vehicles which
never use a state highway, city street or county road.
Kaiser Saved More Money on this One Appeal Than the Company Would Pay in Dues to AWB in over 100 Years.
Following the decision, then Kaiser Northwest Public Affairs Manager George Cheek told AWB President Don Brunell: “By
AWB intervening in this one appeal and winning a decision which Kaiser couldn’t win on its own, Kaiser saved more money
than it would pay to AWB in dues in over 100 years……That was just one of many savings from that AWB provides its members
each year…..AWB dues is not a charitable contribution, it is a business investment,” Cheek said.
Cheek is Right
George Cheek knows an association which produces when he sees one. George was a former senior vice president of
Potlatch Corp. in San Francisco and former president of the American Forest Institute in Washington, D.C., before
retiring and moving to Spokane. It was in Spokane that Kaiser recruited him to help with its issues.
Without AWB, Members Would Be on Their Own. Just Ask George Cheek and Kaiser How Your Chances Improve When You Get
AWB Involved!
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