JLARC review: auditors find mixed results across 2024 tax-preference reviews, urge legislative choices on continuation or change

The Joint Legislative Audit and Review Committee (JLARC) presented its 2024 tax preference performance reviews to the Washington House Finance Committee on Jan. 14, reporting mixed outcomes across 29 preferences and urging the Legislature to decide whether to continue, modify or let several expire.

JLARC staffer Pete Van Moorsil summarized the reviews. "The legislative auditor concludes that alternative fuel vehicles and associated infrastructure have increased in Washington, but that the effect of the preferences is unclear because changes in the market and other increased state and federal incentives also influence adoption of these technologies," Van Moorsil said. The committee reviewed eight alternative-fuel vehicle and infrastructure preferences that together are estimated to reduce state revenue by about $98 million in the current biennium; the largest single preference is a sales-and-use tax exemption estimated to save $53 million in the biennium.

Why this matters: several preferences are scheduled to expire soon (the earliest in July 2025), and JLARC found varying evidence that preferences are accomplishing their stated or inferred objectives. For some, JLARC said objectives are met but recommended legislators clarify performance expectations; for others it recommended termination because preferences are no longer used or do not clearly affect behavior.

Key findings and recommendations from JLARC's presentation:

- Alternative-fuel vehicle preferences: JLARC found…