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Tuesday, February 08, 2005 - Page updated at 12:00 A.M. Review of business tax breaks is proposed under House bill Seattle Times Olympia bureau OLYMPIA — Hundreds of tax breaks worth billions of dollars would get reviewed by the state to see if they're still needed, under a bill passed by the House yesterday. The measure raised the ire of some Republicans who see it as an attempt to get rid of tax breaks that businesses depend on. The bill passed the House 63-32 and goes to the Senate. GOP lawmakers say they expect more bills targeted at tax incentives. "I think this is the tip of the iceberg for this session. I think you're going to see an onslaught of bills very much like this," said Rep. Mike Armstrong, R-Wenatchee, deputy GOP leader in the House. Some Democrats in the Legislature want fast action on tax breaks this session to help close a budget shortfall projected at more than $2 billion. The state has more than 500 tax breaks on the books. Labor is pushing as well. "We need to really start looking at loopholes that we can close this year to help close the budget gap," said Adam Glickman, a spokesman for the Service Employees International Union. Glickman called the measure that passed yesterday, House Bill 1069, a good first step, but one that wouldn't pay off for a while. The bill would set up an annual review of tax exemptions. A citizens panel would create a schedule of breaks to be reviewed at least once every 10 years. The Joint Legislative Audit and Review Committee would do the reviews and come up with recommendations for the Legislature. The first report would not be due until summer 2006. House Majority Leader Lynn Kessler, D-Hoquiam, said the bill isn't aimed directly at getting rid of tax breaks. "We're looking at it to see what's working and what's not," she said. It's possible that in many cases nothing will happen, or maybe tweaks are needed, she said, but "there is some hope that we will look at some of these and find out they're not necessary any more."
It's not clear how the legislation will fare in the Senate. Gov. Christine Gregoire has supported the concept of reviewing tax breaks to see if they're needed, but she doesn't have a position on the bill, according to her office. Andrew Garber: 360-943-9882 or agarber@seattletimes.com
Copyright © 2005 The Seattle Times Company
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