During the 2017 legislative session, the Legislature eliminated mitigation payments for local governments. However, during the 2019 session they extended the payments for the current biennium. This bill further extends payments to cities dependent upon Streamlined Sales Tax mitigation payments (SST).
HB 1948, sponsored by Rep. Debra Entenman (D–Kent), provides mitigation payments for the support of manufacturing and job centers in manufacturing and warehousing communities negatively impacted by the Streamlined Sales and Use Tax Agreement.
Under this bill, qualified local taxing districts negatively impacted by the agreement may receive annual mitigation payments beginning July 2020. Distributions will be made from the Warehousing and Manufacturing Jobs Center Account (created in HB 1948).
AWC supports this bill, as this is a continued effort by the Legislature to make whole the revenue losses from the streamlined changes. HB 1948 awaits the Governor’s signature.