Following is a new release from the Washington State House Democratic Causus
Legislation passed today by the House would eliminate construction sales and use taxes on company headquarters built in certain areas of the state. One of the areas eligible is downtown Tacoma, where community-employer Russell Investments is looking to locate their new headquarters.
State Rep. Troy Kelley, D-University Place, is prime-sponsor of the House version seeking to provide this tax deferral in Community Empowerment Zones (CMZ).
“People in these areas are looking for growth and good-paying jobs,” Kelley said. “For companies like Russell Investments, it’s a big decision. For the areas they will end up locating in, it’s a community-changing event.”
“We need small business and we need big business. This legislation will give large-employers one more reason to choose Washington.”
The proposal, Senate Bill 6626, would provide a deferral on construction taxes and then later forgive those taxes if the company continues to meet criteria laid out in the bill. The headquarters must cost $30 million or more, it must employ 300 full-time employees or more and pay at least the average state salary.
In addition to Tacoma, this legislation is expected to help Spokane which is often competing with Idaho. Idaho passed a similar law a few years ago to lure company headquarters to their state.
“The state, and especially the Tacoma area, is a great place to do business and passing this incentive is just another step towards making us the best,” Kelley said.
Kelley’s companion bill, House Bill 3099, made it to the Rules Committee, but never made it to the floor. The House’s vote today will send SB 6626 back to the Senate to concur the amendment added to it in committee.