OLYMPIA – Help for communities with large warehousing and manufacturing centers is one step closer to reality. The Washington House of Representatives passed House Bill 1521 sponsored by Representative Debra Entenman (D-Kent) with a 97-0 vote today. HB 1521 is virtually identical to HB 1948, which passed the Legislature last year. Unfortunately, at the beginning of the COVID-19 pandemic, Gov. Inslee vetoed most legislation that added new spending in anticipation of decreased tax revenue. Both bills create a Warehousing and Manufacturing Job Centers Account to provide mitigation funds for communities who received substantial mitigation funds from the recently closed Streamlined Sales Tax Mitigation Account. HB 1948 passed the House with an 84-12 vote last year.
“Cities with large warehousing and manufacturing centers like Kent and Auburn help drive our state’s economy. Changes in tax structure have left these communities to foot the bill for services and road maintenance that benefits all of Washington,” said Entenman. “I am thankful that we were able to once again pass this bill that will provide our communities the revenue they need to keep our state’s economy moving.”
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. These funds are vital for public safety, public works, and economic development.
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 directly benefit Kent and Auburn taxpayers by allowing these cities to maintain their current budgets without tax increases.” said Entenman.
The bill now heads to the Senate for consideration. Its predecessor passed the Senate 42-7 last year.