Municipal Finance & Economic Development

ACTION ITEM: Contact Representatives to Pass Streamlined Sales Tax (SSB 6594) This Year

Cities must continue to contact House members and seek their support in advancing SSB 6594 out of the Rules Committee to the full House for a vote. The bill is in trouble as the last week of the session nears. Even if you have recently contacted your Representatives on this issue, contact them again to request that they ask their leadership to pass the bill this year.

Remind them that SSB 6594 will provide fairness and equity for Washington businesses by leveling the playing field. This bill also provides full mitigation to impacted cities and counties, and does so without any supplemental reporting from the business community.

This bill is supported by a broad coalition of organizations representing businesses, counties and cities, and should be approved this year.

Levy Lid Lift Flexibility (2SSB 5333)

2SSB 5333 moved out of the Rules Committee and was placed on the floor calendar on March 1. We are hopeful for floor action on the bill Friday, March 3.

Local Infrastructure Finance Tool (E2SHB 2673)

This legislation would provide funding for local infrastructure using sales tax increases generated by an economic development project. The bill is on the floor calendar and is expected to be passed by the full Senate.

However, we expect additional work on this bill as it moves through the process. Some Representatives and Senators have told us the bill is still a work in progress, and the final version will be decided in conference committee.

Farm Equipment Replacement Parts Sales Tax Exemption (SHB 2457)

SHB 2457 was amended by the Ways and Means Committee to apply the sales tax exemption only to replacement parts for farm equipment for farm operations of more than $10,000 per year. This amendment will substantially reduce the bill’s fiscal hit on the State and local governments. The bill moved out of the Rules Committee on March 1 and is on the floor calendar awaiting action by the full Senate.

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