February 26, 2018
Fast Facts
Bringing Business Up to Speed
Top Stories

AWB continues push for B&O tax relief to help all manufacturers; Senate hearing suggests issue will be part of end-game negotiations

Manufacturing is the bedrock of communities large and small, but the state's manufacturing sector continues to face challenging headwinds. A legislative proposal to bring business and occupation (B&O) tax relief to some rural manufacturers is a good start, and AWB is leading discussions to ensure this help comes to all manufacturers in every part of the state.

The House Finance Committee approved a bill last week that would lower the B&O rate for manufacturers, but only in 30 of the state’s 39 counties.

House Bill 2992 would exclude manufacturers in Whatcom, Snohomish, King, Kitsap, Pierce, Thurston, Clark, Benton and Spokane counties, prompting AWB to send an Action Alert to manufacturers last week asking them to contact their lawmakers and urge support for a B&O tax reduction for manufacturers in every part of Washington.

AWB will continue to work this issue until the final moments of the legislative session if necessary.

In the Senate, lawmakers signaled during a hearing last week that they may be looking for another way to support manufacturers. During a hearing on Senate Bill 6481, which would expand a program that provides a sales tax deferral for construction of expansion of a manufacturing facility, Sen. David Frockt, D-Seattle, asked AWB's Clay Hill which would provide more help to manufacturers -- that proposal, or a B&O rate reduction, adding, "Let's assume you can't do both."

Hill said that AWB would rather not look at an "either-or," but instead at a "both-and."

He concluded by reminding lawmakers that no other sector of the economy has struggled like manufacturing over the previous two decades.

“Why aren’t we growing here in manufacturing?” Hill asked. “Certainly, we can do more.” (Watch the discussion on TVW)

AWB President Kris Johnson addressed the issue last week in an op-ed in The Olympian, saying that manufacturers in every part of the state need help to remain competitive.

You can add your voice to the effort by contacting your legislator through AWB's letter-writing tool.

For more information on this issue, contact AWB Government Affairs Director Clay Hill at 360.943.1600.

« Back to Main
Capital Gains Tax
All Manufacturers Need Relief

Manufacturing jobs key to all of our communities

By AWB President Kris Johnson

The health of Washington state's manufacturing sector is a bellwether for the strength of our overall economy, and a key driver of economic opportunity for families in every city and small town across the state.

The sector is vital to the state. Manufacturing jobs support families with livable wages and benefits and they grow the local economy and tax base to ensure funding for critical services.

Along with all that positive news, is the reality is the sector needs some support.

Since 2000, Washington has lost more than 50,000 manufacturing jobs, the majority of which are not in the aerospace sector.

The good news is lawmakers are currently considering bills that would reinstate the uniform B&O tax relief. It's a move our members support as one way to jumpstart job creation in every part of the state...

Read the full guest column in The Olympian
Upcoming Events