OLYMPIA – Representative Debra Entenman’s (D-Kent) bill, HB 1948, to assist communities with large warehousing and manufacturing sectors passed the House today with an overwhelming majority.
“This bill ensures that communities like Kent and Auburn will have the necessary revenue to maintain roads and services in our warehousing and manufacturing centers. The warehousing and manufacturing centers in these cities help drive the state’s economy and it should not fall exclusively on Kent and Auburn taxpayers to maintain the roads they rely on,” said Rep. Entenman.
The bill creates a Warehousing and Manufacturing Job Centers Account which will ensure that cities who received substantial mitigation funds from the recently closed Streamlined Sales Tax Mitigation Account will continue to receive funds. These funds are vital for public safety, public works, and economic development.
In 2007, Kent and Auburn lost sales tax revenue because of a change in tax structure by multiple states to simplify the collection of sales taxes from online purchases. To mitigate that lost revenue the Legislature created the Streamlined Sales Tax Account.
The Legislature ended the Streamlined Sales Tax Account in 2017, speculating that changes resulting from the Marketplace Fairness Act would compensate for the lost revenue. Unfortunately, in cities with large warehousing and manufacturing centers, this was not the case. In 2018, the City of Kent still received over $4.5 million. This bill will allow the cities of Kent and Auburn to maintain their current budgets without additional tax increases.
This legislation now goes to the Senate for consideration.
The 60-day Washington state legislative session will conclude on March 12, 2020.