House Finance advances tax package including grocery‑store incentives and cigarette tax increase

The House Finance Committee on Monday, Feb. 9 advanced a slate of tax and revenue measures, moving several bills out of committee with due‑pass recommendations after amendment debates and roll‑call votes.

The most heavily discussed item was substitute House Bill 22 97, a proposal described by committee staff as an incentive package for grocery stores in underserved community zones. Christina King, staff to the committee, said the proposed substitute (H‑3481.1) would let cities set preferential B&O (business and occupation) tax rates for retailing, create a targeted exemption or remittance for qualifying grocery stores in designated underserved community zones, and add tax‑credit and local‑ownership carve‑outs for certain grocery formats. King summarized changes to certificate timing and compliance and said the bill would authorize local requirements that qualifying stores accept SNAP/Washington Basic Food benefits.

Rep. Orcutt led the amendment that would remove the state and local property tax exemption portion of the bill. He told members: “I’m growing increasingly concerned with bills that do property tax exemptions. … Whenever you exempt somebody from paying property tax, it doesn't take the actual tax off of being paid. So that means everybody else has to make up for it. It's what we refer to as the shift.” Rep. Mena, the sponsor’s lead supporter, countered that the property exemption is central to incentivizing grocery stores to open in limited zones and asked members to vote against the striking amendment: “The…