Notice of Committee Passage of Senate Bill 5423

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SB 5423, titled AN ACT Relating to creating the Washington rural development and opportunity zone act, has been passed by the Senate Committee on Financial Institutions, Economic Development & Trade. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

ASSUMPTIONS

- The revenue impact of this bill is indeterminate

- That the maximum amount of potential business and occupation tax credit is taken by taxpayers.  This maximum is $60 million.

- The closing date is sometime in January 2020.  Up to one-third of the $60 million in authorized credits may be claimed in the fourth through sixth years after the closing date.  

- The fourth, fifth, and sixth years after the closing date are assumed to be CY 2023, CY 2024, and CY 2025.  The majority of the fiscal impacts would likely be in FY 2023, FY 2024, and FY 2025.

- The carry-forward provisions allow taxpayers to continue to claim any credit that has not been used in years four through six indefinitely, potentially creating B&O tax impacts in years outside the analysis time frame of this fiscal note.

The cash receipts impact associated with this proposed legislation is indeterminate. No historical data exists to support a reasonable set of assumptions regarding application fees.

The following legislators voted do pass:

Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov

Senator Mark Mullet
Democrat
(360) 786-7608
Mark.Mullet@leg.wa.gov

Senator John Braun
Republican
(360) 786-7638
John.Braun@leg.wa.gov

Senator Lynda Wilson
Republican
(360) 786-7632
Lynda.Wilson@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov


The following legislators voted to refer the bill without recommendation:

Senator Bob Hasegawa
Democrat
(360) 786-7616
Bob.Hasegawa@leg.wa.gov


Not voting:

Senator Doug Ericksen
Republican
(360) 786-7682
Doug.Ericksen@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp