Bill that remits Boeing’s B&O tax preferences passes both chambers

The bill was requested by Boeing to ease a transatlantic trade dispute over aircraft subsidies.

SB 6690, sponsored by Sen. Marko Liias (D–Lynnwood), eliminates the preferential B&O tax rate for the manufacturing, wholesaling, and retailing of Boeing commercial airplanes and airplane components. The planned law changes would remove roughly 40% savings of B&O tax, which saved the company nearly $118 million in 2018. The bill also includes a provision that allows Boeing to reinstate a preferential B&O rate after March 21, 2021 if the World Trade Organization (WTO) disputes are resolved and other criteria are met.

Under some estimates, reinstating the tax will generate $100 million for the state in the next fiscal year; however, the Legislature did not include that revenue in their supplemental budget.

SB 6690 was passed by both the House and Senate, and now awaits the Governor’s signature.