Pandemic Darlings The pandemic economy, in original documents
Home Source documents Senate Bill Report — SB 5440, Manufacturing Tax Reform to Preserve Aerospace Jobs (February 10, 2021)

Senate Bill Report — SB 5440, Manufacturing Tax Reform to Preserve Aerospace Jobs (February 10, 2021)

Summary

Senate Bill Report on SB 5440, as of February 10, 2021, prepared for the Senate Committee on Business, Financial Services & Trade, with committee activity listed for 2/11/21. The report names Senators Wilson, J., Fortunato and Frockt as sponsors. It states that the bill reduces the manufacturing business and occupation tax multiplier for various industries to 0.00 percent, including semiconductor materials, seafood products, dairy products, aluminum, and commercial airplanes or components beginning July 1, 2021. The report lists Appropriation: None and Fiscal Note: Requested on February 9, 2021, and states that the bill takes effect on October 1, 2021.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2021-02-11
Case
2021 02 11 A28532 D228366 Bill Report 5440 Sba Bfst 21

Cite this document

“Senate Bill Report — SB 5440, Manufacturing Tax Reform to Preserve Aerospace Jobs (February 10, 2021).” Original at app.leg.wa.gov, dated 2021-02-11. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-02-11-2021-02-11-a28532-d228366-bill-report-5440-sba-bfst-21/, SHA-256 3ce2a4530a3fe8e8d25b4ea6be9250e26fb8e682eb7fe097f225cc2983dc12cd.

Full text

                            SENATE BILL REPORT
                                  SB 5440

                                     As of February 10, 2021

Title: An act relating to manufacturing tax reform to preserve aerospace and other
     manufacturing jobs in Washington.

Brief Description: Concerning manufacturing tax reform to preserve aerospace and other
     manufacturing jobs in Washington.

Sponsors: Senators Wilson, J., Fortunato and Frockt.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 2/11/21.


                                     Brief Summary of Bill
           • Reduces the manufacturing business and occupation tax multiplier for
             various industries to 0.00 percent.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: Washington's major business tax is the business and occupation (B&O) tax.
     The B&O tax is imposed on the gross receipts of business activities conducted within the
     state, without any deduction for the costs of doing business. Businesses must pay the B&O
     tax even though they may not have any profits or may be operating at a loss. A taxpayer
     may have more than one B&O tax rate, depending on the types of activities conducted.
     Major B&O tax rates are 0.471 percent for retailing; 0.484 percent for manufacturing,
     wholesaling, and extracting; and 1.5 percent for services and for activities not classified
     elsewhere. Financial institutions are subject to the 1.5 percent service and other B&O tax
     rate.

     While the standard B&O tax rate for manufacturing is 0.484 percent, there are a number of



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5440
     manufacturing sectors that have lower preferential rates. Examples include:
        • semiconductor materials—0.275 percent;
        • various agricultural goods manufactured into refined products—0.138 percent;
        • seafood products—0.138 percent;
        • dairy products—0.138 percent;
        • fruit or vegetable products—0.138 percent;
        • aluminum—0.2904 percent; and
        • solar energy systems using photovoltaic modules or stirling converters—0.275
          percent.

     In 2020, the preferential B&O tax rate for the manufacturing, wholesaling, and retailing of
     commercial airplanes and airplane components of 0.357 percent was eliminated, and the
     rate of 0.484 percent was instituted.

     Summary of Bill: The following manufacturing tax rate multipliers are reduced to zero:
       • manufacturers, and this tax multiplier is expanded to include processors for hire;
       • semiconductor materials;
       • various agricultural goods into refined products;
       • seafood products;
       • dairy products;
       • fruit or vegetable products;
       • commercial airplanes or components of such planes beginning July 1, 2021;
       • aluminum; and
       • solar energy systems using photovoltaic modules or stirling converters.

     These preferential rates are only applicable to out of state activity.

     Appropriation: None.

     Fiscal Note: Requested on February 9, 2021.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: The bill takes effect on October 1, 2021.




Senate Bill Report                               -2-                                    SB 5440

File and source

File
2021-02-11_a28532_d228366_bill-report-5440-sba-bfst-21.pdf
Size
7,253 bytes
SHA-256
3ce2a4530a3fe8e8d25b4ea6be9250e26fb8e682eb7fe097f225cc2983dc12cd
Our copy
2021-02-11_a28532_d228366_bill-report-5440-sba-bfst-21.pdf
Original
app.leg.wa.gov
Back to top