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Hinkle-sponsored bill moves
up effective date of
previous tax relief law, helps producers
Change to
sales and use tax will benefit fruit and vegetable businesses
The governor signed
legislation Monday that is expected to encourage some local fruit and
vegetable businesses to move forward with expansion plans.
Rep. Bill Hinkle,
sponsor of
House Bill 2032, joined the governor and others in the bill-signing
ceremony.
The legislation authorizes businesses to apply for a deferral of fruit
and vegetable processing and storage taxes before a July 1, 2007
effective date from past legislation. Many businesses were consequently
holding off on construction and potential productivity until that date.
Hinkle, R-Cle Elum, believes by moving up the effective date it will
create an incentive for local businesses to expand their operations.
“I talked to fruit and vegetable businesses that said they wanted to
expand their facilities, but were delaying until the July effective
date. With the passage of this bill, they will no longer have to delay
their growth,” said Hinkle. “The savings these businesses will receive
will go into new construction, more jobs and economic vitality for the
region.”
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.
“Harvest dates also played a factor in the passage of this legislation.
It was important we provided these businesses the assurances they needed
to make investments in their operations,” said Hinkle. “This is
important not only to these local businesses, but our overall economy.”
# # #
Picture of bill-signing for House Bill
2032 (April 30): From left to right, Sen. Marilyn Rasmussen, Rep. Bill
Hinkle, Jake Wardenaar, T. K. Bentler, Ray Wardenaar, Rep. Dean Takko,
and Gov. Chris Gregoire (center).
For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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