July 2020

2020 Reviews: Four of eight preferences identified for further legislative review

In 2020, JLARC staff conducted eight tax preference reviews as part of its annual reporting cycle. These include preferences for agriculture, economic development, and hiring unemployed veterans. Of the eight preferences JLARC staff reviewed:

Two are not meeting their stated objectives

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Legislative Auditor's Recommendation
Allow to expire

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

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Legislative Auditor's Recommendation
Modify the preferences

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

 

Two are for industries that have changed since the preferences were enacted

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Legislative Auditor's Recommendation
Clarify

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

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Legislative Auditor's Recommendation
Review and clarify

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

 

One likely had limited impact in its initial form, but it was changed to a different purpose last legislative session and made permanent

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Legislative Auditor's Recommendation
Continue the preference as amended in 2020

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

 

Two are meeting the Legislature's stated intent

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Legislative Auditor's Recommendation
Continue

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

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Legislative Auditor's Recommendation
Continue

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary

 

One was amended with a new goal. It is too soon to know its impact.

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Legislative Auditor's Recommendation
Continue and monitor future use

Commissioners' Recommendation
Available October 2020

Summary

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Video Summary


The Citizen Commission for Performance Measurement of Tax Preferences also considers preferences based on information provided by the Department of Revenue. View the 2020 expedited preference report here (PDF).

 

 

2020 Tax Preference Performance Reviews

July 2020

Joint Legislative Audit & Review Committee

More about 2020 reviews

Study questions

The Citizen Commission selected the following tax preferences for a performance review by JLARC staff in 2020:

 

In addition, the Commission will consider the following tax preferences, using an expedited process. The expedited process is primarily based on information published by the Department of Revenue in its most recent statutorily required tax exemption study. View the 2020 Expedited Preference Review.

  1. Active Duty Military Penalty Waiver (Multiple Taxes) | 82.32.055 | 2008
  2. Airports Owned by Cities in Other States (Property Tax) | 84.36.130 | 1941
  3. Assignment of Property through Divorce (Real Estate Excise Tax) | 82.45.010(3)(f) | 1955
  4. Cigarettes Covered by Indian Tribal Contracts (Tobacco Tax) | 82.24.295(1) | 2001
  5. Cigarettes Sold via Tribal Contracts (Sales and Use Tax) | 82.08.0316; 82.12.0316 | 2001
  6. Delinquency Penalty and Interest Waivers (Property Tax) | 84.56.025 | 1984
  7. Destroyed Property (Property Tax) | 84.70.010 | 1974
  8. Family-Owned Business Interest (Estate Tax) | 83.100.048 | 2013
  9. Fuel for Transporting Persons with Special Needs (Sales and Use Tax) | 82.08.0255(1)(b); 82.12.0256(2)(b) | 1983
  10. Gun Safes (Sales and Use Tax) | 82.08.832; 82.12.832 | 1998
  11. Home Improvements (Property Tax) | 84.36.400 | 1972
  12. Income of Employees (B&O Tax) | 82.04.360 | 1935
  13. Interstate Bridges (Property Tax) | 84.36.230 | 1949
  14. Labor and Services Used to Construct and Repair Public Roads (Sales and Use Tax) | 82.04.050(10) | 1943
  15. Life Insurance Sales Employees (B&O Tax) | 82.04.360(1) | 1991
  16. Marital Deduction (Estate Tax) | 83.100.047 | 2005
  17. METRO Transit Planning (Public Utility Tax) | 35.58.560 | 1967
  18. Military Housing (Leasehold Excise Tax) | 82.29A.130(19) | 2008
  19. Military Housing (Property Tax) | 84.36.665 | 2008
  20. Personal or Domestic Uses of Hazardous Substance (Hazardous Substance Tax) | 82.21.040(2) | 1989
  21. Personal Property Up to $15,000 (Property Tax) | 84.36.110(2) | 1890
  22. Public Transit Charges (Public Utility Tax) | 82.16.050(14) | 2006
  23. Quinault Tribal Tax (Timber Tax) | 84.33.0776 | 2007
  24. Refund of Motor Vehicle Fuel Taxes for METRO (Fuel Tax) | 35.58.560 | 1967
  25. Regional Transit Authority Sale-Leasebacks (B&O Tax) | 82.04.4201 | 2000
  26. Regional Transit Authority Sale-Leasebacks (Leasehold Excise Tax) | 82.29A.134 | 2000
  27. Regional Transit Authority Sale-Leasebacks (Property Tax) | 84.36.605 | 2000
  28. Regional Transit Authority Sale-Leasebacks (Real Estate Excise Tax) | 82.45.010(3)(o) | 1951
  29. Regional Transit Authority Sale-Leasebacks (Sales and Use Tax) | 82.08.834; 82.12.834 | 2000
  30. Ride Sharing and Special Needs Transportation (B&O Tax) | 82.04.355 | 1979
  31. Ride Sharing and Special Needs Transportation (Public Utility Tax) | 82.16.047 | 1979
  32. Ride Sharing Vehicles (Motor Vehicle Excise Tax) | 82.44.015 | 1980
  33. Ride Sharing Vehicles (Sales and Use Tax) | 82.08.0287; 82.12.0282 | 1980
  34. Route 520 Replacement Bridge (Sales and Use Tax) | 47.01.412 | 2008
  35. RTA Maintenance Contracts (Sales and Use Tax) | 82.04.050(13) | 2005
  36. Sand and Gravel for Local Road Construction (B&O Tax) | 82.04.415 | 1965
  37. Sand and Gravel for Local Road Construction (Sales and Use Tax) | 82.08.0275; 82.12.0269 | 1980
  38. Second Narrows Bridge (B&O Tax) | 82.04.416 | 1998
  39. Second Narrows Bridge (Leasehold Excise Tax) | 82.29A.132 | 1998
  40. Second Narrows Bridge (Property Tax) | 84.36.010(1) | 1998
  41. Second Narrows Bridge (Public Utility Tax) | 82.16.046 | 1998
  42. Second Narrows Bridge (Real Estate Excise Tax) | 82.45.190 | 1998
  43. Second Narrows Bridge (Sales and Use Tax) | 47.46.060 | 1998
  44. Tobacco Sales to U.S. or Indian Tribes (Tobacco Tax) | 82.26.110 | 2007
  45. Transportation of Persons with Special Needs (Fuel Tax) | 82.38.080(1)(d); 82.38.180(3)(a) | 1983
  46. Tribal Compact Marijuana (Sales and Use Tax) | 43.06.490; 82.08.9997; 82.12.9997 | 2015
  47. Tribal Lands Used for Government Purposes (Property Tax) | 84.36.010(1) | 2004
  48. Urban Passenger Transit Fuel (Sales and Use Tax) | 82.08.0255(1)(a),(c); 82.12.0256(2)(a),(c) | 1980
  49. Urban Transportation (Fuel Tax) | 82.38.080(1)(f)-(g); 82.38.180(3)(b) | 1957
  50. Vehicles Acquired While in Military Service (Use Tax) | 82.12.0266 | 1963
  51. Veteran Widows and Widowers (Property Tax) | 84.39.010 | 2005
  52. Veterans Organizations (Property Tax) | 84.36.030(4) | 1929