The House supplemental budget proposal includes a package of education investments that will bring the state closer to meeting its McCleary education goals, drawing funds from the closure of four costly and unnecessary tax exemptions. Yesterday, we focused on the narrowing of an outdated tax loophole for big oil companies—a loophole that hurts Washington and only benefits an industry that needs it least.
Collect due sales tax to pay for our education
House budget writers are looking to repeal the sales tax exemption Washington gives nonresidents in a second step to fund our educational needs.
Currently, residents of states with a sales tax below 3 percent are able to purchase
products in Washington without having to pay our state sales tax. This means out-of-state shoppers are allowed to purchase Washington products sold by Washington businesses without having to contribute to our state in any way. No other state provides this giveaway to nonresidents, and continuing to do so deprives our students and schools.
Furthermore, this exemption has little impact on the purchasing habits of nonresidents. Oregon, Idaho and Montana residents don’t flock to Washington to buy our goods without sales tax, since they already reside in a state with a sales tax below 3 percent. If anything, more Washington residents shop out-of-state then nonresidents shop in Washington.
Still, closing this unnecessary loophole would raise about $29 million for our schools in 2014.
So, do we sell Washington goods without a sales tax to nonresidents or do we buy books, computers, and supplies for our schools?
It’s important to stay informed on what we’re doing to fulfill our paramount responsibility of funding education right—come back tomorrow to find out what else stands in between us and our goals.