Manufacturing is the cornerstone of Washington’s economy, but we know manufacturers could use some support right now. Since 2000, Washington state has lost more than 50,000 manufacturing jobs, the bulk of which are outside of aerospace.
Last year, the Legislature took action to help the manufacturing sector regain momentum, passing with a strong bipartisan vote a measure that lowered the business and occupation (B&O) tax rate for manufacturers, creating one statewide tax rate.
However, the provision was vetoed before it could take effect. The tax relief would have helped roughly 10,000 small- and medium-sized manufacturers invest in their businesses and employees and create jobs.
This session, there are several bills in play that would provide our vital manufacturing sector tax relief. To help support these bills, AWB launched an "action alert" to our members last week, urging them to contact their senators and representatives in support of House Bill 2947 (and its companion, Senate Bill 6596), with a change to include all counties across the state, and Senate Bill 6542.
As currently drafted, HB 2947 and SB 6596 would reduce the B&O rate for eligible rural manufacturers by 40 percent, phased in over four years, starting in 2020. AWB is encouraging a change in the bill to make all manufacturers eligible.
This follows AWB’s social media video campaign, highlighting small, family-owned Washington manufacturing employers who explain how B&O tax relief would support their businesses.
For more information on the manufacturing B&O tax relief, contact AWB Government Affairs Director Clay Hill at 360.943.1600.