Washington 2023-2024 Regular Session

Washington House Bill HB1604

Introduced

1/26/23

Refer

1/26/23

Caption

Providing a retroactive business and occupation tax exemption for custom farming.

Impact

If enacted, HB 1604 would modify state tax laws by exempting custom farming operations from business and occupation taxes for previous periods. This could incentivize more businesses to engage in custom farming and potentially bolster agricultural production by reducing operational costs. Such a tax exemption is likely to have significant implications for the local agricultural economy, as it would provide more resources for farmers to reinvest in their businesses and enhance productivity.

Summary

House Bill 1604 aims to provide a retroactive business and occupation tax exemption specifically for custom farming operations. This legislation is designed to alleviate tax burdens for farmers who engage in custom farming activities, thus promoting economic activity within the agricultural sector. The bill's retroactive nature suggests that it intends to address past financial strains on these businesses, potentially impacting their cash flow and operational sustainability.

Sentiment

The sentiment surrounding HB 1604 appears to be largely positive among legislators and stakeholders in the agricultural community. Supporters argue that the bill is a necessary measure to support farmers who have faced economic challenges, especially in light of fluctuating market conditions and rising operational costs. Conversely, there may be concerns from some lawmakers or tax policy advocates about the implications of retroactive tax exemptions, specifically regarding state revenue and the equitable treatment of other businesses.

Contention

Notable points of contention regarding HB 1604 may revolve around the prioritization of agricultural interests over other sectors that also face tax burdens. While advocates for the bill emphasize the need for support in the farming community, critics might argue that such exemptions could lead to perceptions of unequal financial relief among different business types. Additionally, discussions may arise regarding the long-term impacts on state tax revenues, as well as potential pressures on the budgeting process if exemptions become a recurring theme in state tax policy.

Companion Bills

No companion bills found.

Previously Filed As

WA SB5675

Providing a business and occupation tax exemption for manufacturing facilities and green manufacturing facilities.

WA SB6243

Providing a state business and occupation tax exemption to encourage clean technology manufacturing in Washington.

WA HB1653

Providing a business and occupation tax exemption for amounts derived from animal adoption fees collected by a nonprofit.

WA HB1993

Exempting child care providers from the business and occupation tax.

WA HB1895

Establishing a business and occupation tax credit for small business employers providing educational assistance to employees.

WA SB6136

Revised for 1st Substitute: Reestablishing a business and occupation tax on the privilege of providing property for rent.Original: Reestablishing a business and occupation tax on the privilege of providing property for rent and supporting access to affordable rental property by exempting from tax landlords participating in a rent stabilization program.

WA HB1716

Supporting employers providing child care assistance to employees by establishing a business and occupation tax credit for businesses and requiring the department of revenue to provide a report to the legislature.

WA HB2045

Investing in Washington families by restructuring the business and occupation tax on high grossing businesses and financial institutions.

WA HB2081

Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.

WA SB5815

Similar Bills

No similar bills found.