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Fruit and vegetable
businesses get needed
sales and use tax change
13th District lawmakers believe moving up
effective date of previous
tax relief law will help local producers, economy
Thirteenth District
lawmakers are applauding the passage of a bill off the Senate floor late
yesterday that would help local fruit and vegetable and other
businesses, while stimulating the local economy.
House Bill 2032 would authorize businesses to apply for a deferral
of fruit and vegetable processing and storage taxes before a previous
July 1, 2007 effective date from past legislation.
Rep. Bill Hinkle, R-Cle Elum, sponsored the measure and
believes by moving up the effective date it will create further
incentive for some local businesses to plan and expand their operations.
“Moving the effective date up from past legislation is vital for some
local businesses that want to expand their operations and grow. It came
down to harvest dates and providing the assurances that these businesses
needed to make the necessary investments in their operations,” said
Hinkle. “This is important not only to these local businesses, but
our overall economic vitality.”
Previous legislation contained a July 1, 2007 effective date. Many
businesses consequently were holding off on construction and potential
productivity until that date.
“Several fruit and vegetable companies are ready to expand but are
holding off until the July effective date. Being able to apply for the
tax deferral earlier will help bring new jobs to
agriculturally-dependent rural areas like Grant County more quickly,”
said
Sen. Janéa Holmquist, R-Moses Lake. “For example, a company
in Grant County needs to build an onion processing plant and have it
completed before September. The previous law did not give any
flexibility for a waiver or end-around to qualify for the tax deferral.
This project represents a $4 million investment. The savings from House
Bill 2032 for this employer alone will be $300,000.”
A sales and use tax deferral program was authorized by the Legislature
in 2005 for fruit and vegetable processing, cold storage warehousing,
and related research and development businesses. Dairy product
manufacturing and seafood processing were added in 2006. The deferred
taxes are forgiven if the investment project meets the program criteria
for eight years. The program expires July 1, 2012.
“The extension of tax exemptions for many of our agribusinesses’
investments in facilities and the research and development of their
products are critical to many in our district,” said
Rep.
Judy Warnick, R-Moses Lake. “It only makes common sense when
one thinks about the number of jobs that will be created by the passage
of this legislation.”
The 105-day legislative session is scheduled to adjourn April 22.
Holmquist can be contacted at (360) 786-7624 or
holmquist.janea@leg.wa.gov
Hinkle can be
contacted at (360) 786-7808 or
hinkle.bill@leg.wa.gov
Warnick can be
contacted at (360) 786-7932 or
warnick.judy@leg.wa.gov
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