2021 Tax Preference Performance Reviews
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December 2021 Eric Thomas 2021 Tax Preference Performance Reviews Proposed Final Report The Legislative Auditor recommends action on four of seven preferences reviewed. Citizen Commission unanimously endorsed recommendations, adopted comments on four.
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Transcript of 2021 Tax Preference Performance Reviews
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 1December 2021
Eric Thomas
2021 Tax Preference Performance ReviewsProposed Final Report
The Legislative Auditor recommends action on four of seven preferences reviewed. Citizen Commission unanimously endorsed recommendations, adopted comments on four.
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 2
Citizen Commission plays vital role in tax preference review process
Present final report to JLARC
December
Citizen Commission commented on recs.
October
Citizen Commission heard public testimony
September
Presented preliminary report to the Citizen Commission
August
Presented preliminary report to JLARC
July
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 3
Health Benefit Exchange (Extend or make permanent)
Manufacturers’ Deferral (Extend and consider modifying)
Reduced B&O Rate for Printing and Publishing Newspapers
(Review and assess sufficiency)
Allow one preference to expire and clarify intent of another:
Medical Cannabis Tax Preferences(Continue and monitor DOH/DOR guidance)
Legislative Auditor recommends action on four preferences:
Allow one preference to expire ................................................................................................................................... ........................ ........................ ........................ ........................ ........................ ........................ .................
One recommendation already implemented during 2021 session:
Credit for Renewable Energy Program Payments
Targeted Urban Area Exemption
Nonprofit Outpatient Dialysis Facilities
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 4
Legislative Auditor Recommendations with Commission Comments
Legislature should review to determine if it providessufficient relief, and if additional assistance is needed to help these businesses stabilize financially.
Reduced B&O Rate for Printing and Publishing Newspapers
Legislature should continue preferences and theDepartments of Revenue and Health should updatetaxpayer guidance. Agencies concur.
Medical Cannabis Tax Preferences
Health Benefit Exchange
Legislature should extend the July 2023 expiration date or make the preference permanent—appears to address structural tax issue.
Credit for Renewable Energy Program Payments
Met metrics in statute but did not broaden low-income participation. Legislature should allow to expire, as installations have continued after funding limit reached.
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 5
Representative Gerry PolletJLARC Chair
Pat McCarthyState Auditor
Dr. Grant D. Forsyth, ChairChief Economist, Avista Corp.
Ronald L. Bueing, Vice ChairTax attorney and CPA
Diane Lourdes DickAssociate Professor of Law, Seattle University School of Law
Andi Nofziger-MeadowsPresident, Edmonds Education Association
Dr. Sharon KiokoAssociate Professor of Public Administration, Evans School of Public Policy and Governance, University of Washington
Five Commissioners, appointed by caucuses and Governor
Non-Voting Members
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 6
Consider additional approaches: (1) current preference may be too small, and (2) local papers still support democratic and community vitality with news absent from national digital providers. Offer alternative format for residents with barriers to accessing digital formats.
Citizen Commission’s comments on four preferences
Review definitions and guidelines, evaluate other states’ approaches, consider if laws can be altered to better meet patient needs.Additional interventions related to quality and price differentials between the regulated and unregulated market may be needed.
Exclude preference from future reviews. It serves a structural purpose related to the state’s broader healthcare policy.
Low-income participation is problematic because low-income households (1) lack money to pay upfront installation costs, and (2) are renters and do not make installation decision. Legislature will want to consult Commerce’s commentary.
Reduced B&O Rate for Printing and Publishing Newspapers Health Benefit Exchange
Medical Cannabis Tax PreferencesCredit for Renewable Energy Program Payments
2021 Tax Preference Performance Reviews |Proposed Final Report December 2021 7
Contact Us
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Eric [email protected]
Research Analysts
Project Coordinator
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Pete van [email protected]
Eric [email protected]
Legislative AuditorKeenan [email protected]
