Providing a perfect example of bills still moving despite legislative cutoffs, a Senate tax incentive bill that’s still in its house of origin received a public hearing late last week.
SB 5849, sponsored by Sen. Judy Warnick (R–Moses Lake), addresses a few existing tax exemptions including the targeted urban area property
tax exemption, the sales and use tax deferral for certain businesses in distressed areas, and a reduced business and occupation tax for certain solar energy systems.
The item of particular interest to cities is the targeted urban area property tax exemption. Currently cities and towns are authorized to grant a ten-year local property tax exemption for new industrial or manufacturing facilities in designated areas.
Industrial or manufacturing facilities must be at least 10,000 square feet with an improvement value of at least $800,000 and meet certain building use standards by the United States Department of Labor. New construction of industrial or manufacturing
facilities must:
- Be within a targeted area designated by the city;
- Be on land that has no existing building improvements and that is zoned for an industrial or manufacturing use as of December 31, 2014;
- Meet all construction and development regulations of the city; and
- Be completed within three years from the date of approval of the application.
Within one year of building occupancy, the facility must create at least 25 family living wage jobs with an average wage of at least $23 per hour. No new exemption applications are allowed after December 2030.
SB 5849 removes the requirement that the facility be on land that has no existing building improvements and that is zoned for an industrial or manufacturing use as of December 31, 2014, allowing more flexibility in applying this tax exemption
to development.
SB 5849 received a public hearing last week in the Senate Ways & Means Committee and now awaits executive action.