b'2019 State ReportWashington WireWAand all other taxpayers MTCA: This measure changed the formula in the MTCA tax In what was undoubtedly the worst legislativesession in history for businesses from a percentage of the wholesale price of a barrel of oil to in the state of Washington, the legislature adjourned the 2019a volumetric tax. Under the volumetric formula the current session just prior to midnight on April 28th, the last day of thebarrel tax would have been .70 cents; instead, it was raised to 105 day session. With solid majorities in both the House and$1.09 per barrel, representing a 60 percent increase.Senate, democrats passed billions of dollars in new taxes andWOMA Priority Action Items in 2019increased state spending by over 17 percent above the previousLegislative Sessiontwo-year budget ($43.7 billion) by passing a $52.4 billion 2019WOMAs 2019 legislative activities were 100 percent defen- 2021 state operating budget. This massive increase in taxessive. We went into the session knowing we would be facing an and spending occurred despite record revenues flowing intounworkable climate agenda advanced by Governor Inslee and state coffers due to unprecedented economic conditions. As weworked from the first day until the last day to defeat the most have seen in previous times when spending went out of control,harmful proposals. The following are the three carbon reduc-the first hint of a dip in the economy or a recession will resulttion bills we fought and defeated:in a major deficit where state programs will be slashed and ad-ditional tax proposals will, yet again, be on the table.HB 1110Low Carbon Fuel Standard: Below are projections on the revenue impact of several newLawmakers ended the 2019 Session without passing a Low taxes passed this session.Carbon Fuel Standard. Killing the LCFS is a major victory for WOMA given the impact on fuel prices. An LCFS is a cost driver and has increased the price of fuel in Oregon and Cali-fornia. By way of example, CA officials estimate the LCFS will raise the cost of gasoline by 46 cents per gallon by 2030 and the cost of diesel by 50 cents per gallon also by 2030. SB 5971Carbon and Gas Tax Transportation Legislation: If enacted, this bill would have imposed a $15/metric ton price on carbon and enact an additional five cent tax on motor vehicle fuel.SB 5981Cap and Trade: This bill would have implemented a GHG emission cap and trade program. Under the bill, upper limits would be set on carbon emissions from transportation fuels supplied by oil marketers (among other carbon emitting entities), where addi-tional capacity above the set cap would have to be purchased from other entities that dont use their full allowances.GHG and Other Climate Related MeasuresWhat some of these major taxes are and what they do: that Passed the Legislature Payroll Tax: Creates a long-term care program by imposing a HB 1070Renewable Natural Gas Tax Exemption:0.58 percent tax on individual wages. Provides a public utility tax exemption on the sale by a gasProperty Tax: Increases levy authority for school districts. distribution business of renewable natural gas. States that the sale of natural gas, including compressed natural gas and liq- B&O Tax on Services: This is a three-tier tax that starts withuefied natural gas used or sold to manufacture transportationa 20 percent surcharge on specific professional services. Thefuel, and renewable natural gas by a gas distribution business, second tier is a 33.3 percent surcharge on advanced comput- are not exempt from business and occupation taxes under ing businesses with worldwide revenues between $25 andcertain circumstances$100 billion. The third tier is a 66.7 percent surcharge on the HB 1257Green Buildings: same type of advanced computing companies with revenues exceeding $100 billion. Requires the State Building Code Council to develop rules for electric vehicle infrastructure that require electric vehicleGraduated Real Estate Excise Tax: The current REET oncharging capability at all new buildings that provide on-sitehome sales is 1.28 percent. The new tax would elevate toparking. By November 1, 2020, the Department of Commerce 2.75 percent on homes between $1.5 and $3.0 million and 3(Department) must establish by rule a State Energy Perfor-percent on home sales above $3 million. mance Standard (Standard) for covered commercial buildings.Banks: Adds a 1.2 percent B&O tax on out-of-state banksCovered commercial building means a building where the sum of nonresidential, hotel, motel, and dormitory floor areas above the 1.5 percent B&O tax currently paid. exceeds 50,000 gross square feet, excluding the parking ga-52 www.wpma.com / Summer 2019'