House Finance committee advances a package of tax bills, including grocery-store incentives and tobacco tax changes

The Washington House Finance Committee met in executive session on Monday, Feb. 9, to consider a tranche of tax and revenue bills and reported a series of substitute measures out of committee with due-pass recommendations.

The most contested measure was substitute House Bill 22-97, which would create tax incentives aimed at bringing grocery stores to designated underserved community zones. Christina King, staff to the committee, summarized the proposed substitute (HDash3481.1) and an Orcutt amendment that would remove a state and local property tax exemption program. Representative Orcutt cautioned that “Whenever you exempt somebody from paying property tax, it doesn't take the actual tax off of being paid,” warning the exemption shifts costs to other taxpayers. Representative Mena responded that “The property tax incentive is a really big part of incentivizing grocery stores to come in these underserved communities zones,” saying the measure targets a small number of eligible zones and is intended to improve local access to food and pharmacies. After debate the committee recorded 9 ayes, 5 nays and 1 excused and reported the substitute out of committee with a due-pass recommendation.

The committee also moved substitute House Bill 23-82, a comprehensive change to tobacco-related taxes that would raise the cigarette tax by $2 per pack, restructure the vapor-products tax to 95% of retail price and change other…