Newspaper publishers seek tax cut

Newspaper publishers want lawmakers to give them a temporary break on the state's main business tax.

Seattle Times publisher Frank Blethen and Scott Campbell, publisher of The Columbian in Vancouver, say they need help during tumultuous times in the industry.

Under the proposed measure, the business and occupation tax on newspapers would be cut by 40 percent through 2015.

Blethen said a state tax break wouldn't fix all that ails newspapers, but it would help them preserve jobs.

The loss of advertising revenue, mixed with the current economic climate, has put weekly and daily newspapers in the state under "tremendous financial pressure," he said.

"Some of us, like The Seattle Times, are literally holding on by our fingertips today."

Rowland Thompson, executive director for Allied Daily Newspapers of Washington, said newspapers are asking for the same tax rate that the aerospace and timber industries currently have.

He noted the decline in the number of statehouse reporters over the past few years.

"That's something we're desperately trying to stem the tide of, to keep those newsrooms vibrant and alive," he said.

Senate Ways and Means Chairwoman Margarita Prentice, D-Renton, said the financial downturn for newspapers is troubling, and that it might be time for the Legislature to offer some help.

"We need to have that investigative journalism," she said. "Society can't afford to be without it."

The committee heard testimony on two bills, one that relates solely to newspapers and another that would also reduce the tax for businesses that publish magazines and periodicals, and for printers.

The one addressing just newspapers would cost the state $2.1 million through 2011. Through 2015, when the reduction would end, it would cost a total of $8.1 million

The measure that would cover magazines and periodicals would cost double that amount over the next seven years, or $16 million.

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The tax break bill for newspapers is Senate Bill 5942. The tax break that includes magazines and periodicals is Senate Bill 5962.

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Washington state Legislature: http://www.leg.wa.gov