OLYMPIA – Rep. Debra Entenman, D-Kent, is ensuring local manufacturing and warehousing jobs stay in the area by funding a new account that supports communities where those businesses reside. The House budget includes funding for Rep. Entenman’s manufacturing and warehousing jobs bill, HB 1948.
Many families in Kent and the surrounding area have found gainful employment in manufacturing and warehouse jobs. Unfortunately, communities in the region are losing sales tax revenue due to a law change in 2008. Currently, cities receive mitigation payments to make up for losses from previous legislation that implemented the Streamlined Sales and Use Tax Agreement. However, without HB 1948, those payments are scheduled to end later this year.
When the Legislature passed the Marketplace Fairness Act in 2017 to ensure online retailers did not have a competitive advantage over in-state small businesses, lawmakers phased out the local mitigation payments with the assumption that cities like Kent would finally be made whole. Unfortunately, a few cities sales tax revenues are still falling short. Mitigation payments allow cities to continuing investing in areas like public safety, local law enforcement, road maintenance, and public works projects while continuing to support and value manufacturing and warehousing jobs in the area.
HB 1948 creates a new Manufacturing and Warehousing Job Centers Account. The account provides mitigation payments to support manufacturing and warehousing communities that are negatively impacted by the loss of sales tax revenue. Cities can invest in services and programs communities need to be welcoming to families and to businesses.
“When we work together, we succeed together,” said Entenman. “Cities need to have the tools to invest in thriving communities, so that working and middle class families have a place to live, and businesses have the workforce they need to succeed. That is why it is so important we fully fund the Manufacturing and Warehousing Job Centers Account and make these cities whole. It is good for our families, good for our businesses, and good for our state.”
A final budget will be negotiated between House and Senate leadership in the next three weeks.
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