OLYMPIA – Today, House Bill 1521, sponsored by Rep. Debra Entenman (D-Kent), which provides relief for communities with large warehousing and manufacturing centers, was signed by Gov. Inslee. The bill is virtually identical to HB 1948, which passed the Legislature last year, but was vetoed by the Governor at the beginning of the COVID-19 pandemic. Most legislation that added new spending was vetoed last year in anticipation of decreased tax revenue. HB 1521 creates the 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.
“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 that benefit all of Washington,” said Entenman. “I am pleased that, after some starts and stops, the Governor has finally signed this bill to provide relief to Kent and Auburn taxpayers, who have been funding the road maintenance needed 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 that simplified 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 from the account.
HB 1521 passed the House on March 3 with a vote of 97-0 and the Senate on April 6 with a vote of 44-5. Now that it has been signed by the Governor it will go into effect in 90 days.
