Washington Governor Proposes Extending Taxes, Eliminating Exemptions
- Sales Tax News
- Apr 1, 2013 | Will Frei
Washington Governor Jay Inslee's 2013-2015 budget proposal includes extending two temporary tax increases and eliminating several sales tax exemptions.
The budget proposal states that "a key part of [Governor Inslee's] strategy is a budget focused on rebuilding the state's economy and meeting its education obligations while preserving essential services." To accomplish these goals, Inslee wants to extend two temporary taxes, otherwise set to expire June 30, 2013:
- A .3% B&O tax paid by doctors, lawyers, accountants, and others, and
- A 50-cent-per-gallon beer tax
Extending these two taxes would yield an estimated $660 million over the next two years.
In addition, Inslee proposes eliminating the following tax exemptions and preferential tax rates to generate an estimated $565.2 million:
- Limit trade-in exemption to first $10,000 of value
- Repeal sales tax exemption for local residential telephone service (HB 1971)
- Extend sales tax to computer software
- Trim preferential B&O rates for most industries by 25%
- Repeal sales tax exemption for bottled water
- Repeal use tax exemption for extracted fuel, except hog fuel
- Eliminate preferential tax rate for resellers of prescription drugs
- Repeal B&O tax exemption for long-term rental of commercial real estate
- Narrow tax exemption for import commerce
- Repeal sales tax exemption for farm auction purchases
Read the entire 2013-2015 budget proposal.
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