Tag Archives: Tax Fairness

Braun heads bipartisan call for veto of new $133 million tax

Governor will block hastily approved tax ‘if he’s consistent’, says budget leader

OLYMPIA… A bipartisan group of high-ranking state legislators today asked Gov. Jay Inslee to veto a new $133 million tax that came out of nowhere to zoom through the Legislature just before its annual session ended April 28.

“This was bad policy to start with, and the fact that it was hustled through in little more than 48 hours makes it even less defensible. That’s not how our state constitution intends for laws to be made,” said Sen. John Braun, Senate Republican budget leader.

Joining him in the veto request are Sen. Mark Mullet, D-Issaquah, who heads the Senate committee on banking; Senate Republican Leader Mark Schoesler of Ritzville; House Republican Leader J.T. Wilcox of Yelm; and Rep. Drew Stokesbary, R-Auburn, who is Republican leader on the House budget committee.

Inslee has until May 21 to veto House Bill 2167, which would effectively double the business-and-occupation (B&O) tax on out-of-state banks; otherwise it becomes law and takes effect July 28.

In their veto-request letter the lawmakers detail how the policy in HB 2167 wasn’t made public until the final Friday afternoon of the 2019 session, yet was through the Democrat-controlled Legislature and on its way to Inslee just two days later. Along the way it bypassed both the Senate and House committees that address policies concerning banks.

They also cite Inslee’s veto of a 2017 manufacturing tax-fairness bill that had moved rapidly through the Legislature. In his veto message the governor wrote that the “tax reductions should be considered in a thoughtful, transparent process that incorporates public input and business accountability.”

“If he’s consistent, the governor will veto this tax increase for the same reason. And in doing so he’ll also protect the taxpayers from any chance of a lawsuit on the grounds that this tax is in violation of the U.S. constitution,” said Braun, R-Centralia.

“It’s as though the majority simply wanted more money to spend and said ‘let’s go after the big banks’ without giving any consideration to the legislative process envisioned by the state constitution.”

Braun bill aimed at better treatment of taxpayers’ appeals

Taxpayers in Washington can face a lengthy and challenging process when disputing a tax assessment. To create a more open and fair process Sen. John Braun, R-Centralia, introduced Senate Bill 5449 which would create a statewide elected Tax Appeals Division of the appeals court and eliminate the executive agency comprised of political appointees that currently hears tax appeals. The bill has bipartisan support and has already received a public hearing in the Senate before a joint meeting of the Trade and Economic Development and Law & Justice Committees.

“This bill is about fairness in the tax system,” Braun said. “The Council on State Taxation gives our state a ‘C’ grade for the appeals process. Washington is behind many other states in modernizing its tax appeals process. We need to streamline our process and create a fair and level playing field between the taxpayer and tax collector.”

Washington has a complex tax-appeals system that requires filing with different agencies depending on the type of tax. It also requires taxpayers to pay all taxes, fines, penalties and interest before seeking relief from a court.

“This legislation would not only improve the appeals process but also enhance our state’s business climate and reputation as a good place to do business. This bill sets high standards for those who will be reviewing these cases, lowers standards of evidence and has fewer steps for appellants. The result is a more transparent, simple and fair process that helps property owners and small businesses.” Braun said.

The current tax appeal agency, the Board of Tax Appeals, is comprised of gubernatorial appointees that may or may not have expertise in tax law. Under Braun’s proposed legislation, the Tax Appeal Division would consist of elected judges from each of the three divisions of the Court of Appeals. The new court would hear cases involving excise taxes, property taxes, estate taxes, and adverse rulings from a taxing authority.