Manufacturing facilities/tax

AN ACT Relating to manufacturing facilities; adding a new section 1
to chapter 84.36 RCW; creating new sections; and providing an 2
expiration date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. It is the purpose of this act to retain 5
and increase manufacturing opportunities in Washington state. Chapter 6
64, Laws of 2021, also known as the Washington BEST manufacturing 7
act, which was approved unanimously by the legislature in 2021, calls 8
for a doubling of Washington's manufacturing jobs over the next 10 9
years, along with a doubling of the number of manufacturing firms 10
owned by women and people of color. It is further the purpose of this 11
act to stimulate the construction of new manufacturing facilities and 12
the rehabilitation of existing vacant and underutilized buildings for 13
manufacturing purposes. To achieve these purposes, this chapter 14
provides for special valuations for eligible improvements associated 15
with manufacturing.16
NEW SECTION. Sec. 2. A new section is added to chapter 84.36 17
RCW to read as follows: 18
(1)(a) All buildings, machinery, equipment, and other personal 19
property which is used primarily for manufacturing, the land upon 20
S-1103.1
SENATE BILL 5674
State of Washington 69th Legislature 2025 Regular Session
By Senators Boehnke and Dozier
Read first time 02/05/25. Referred to Committee on Ways & Means.
p. 1 SB 5674
which the property is located, and land that is reasonably necessary 1
for the manufacturing facility, which together comprise a new 2
manufacturing facility or an addition to an existing manufacturing 3
facility, is exempt from property taxation for the six assessment 4
years following the date on which the facility or the addition to the 5
existing facility becomes operational. 6
(b) In addition to the conditions in (a) of this subsection, if 7
the facility is a green manufacturing facility, or a manufacturing 8
facility that exports goods through Washington seaports, all 9
buildings, machinery, equipment, and other personal property that is 10
used primarily for manufacturing, the land upon which this property 11
is located, and land that is reasonably necessary for the 12
manufacturing facility, which together comprise a new manufacturing 13
facility or an addition to an existing manufacturing facility, is 14
exempt from property taxation for the eight assessment years 15
following the date on which the facility or the addition to the 16
existing facility becomes operational. 17
(2) Claims for exemptions authorized by this section must be 18
filed with the county assessor on forms prescribed by the department 19
and furnished by the assessor. Once filed, the exemption is valid for 20
six years or eight years and may not be renewed. The county assessor 21
shall verify and approve claims as the assessor determines to be 22
justified and in accordance with this section. The department may 23
adopt rules as necessary to properly administer this section.24
(3) The definitions in this subsection apply throughout this 25
section unless the context clearly requires otherwise.26
(a) "Green manufacturing facility" means a manufacturing facility 27
that has been certified by a state or nationally recognized 28
organization that rates the sustainability of the manufacturing 29
process. 30
(b) "Manufacturing facility" means a facility that is used to 31
manufacture, as defined in RCW 82.04.120. 32
(4) This section expires January 1, 2036. 33
NEW SECTION. Sec. 3. Section 2 of this act applies for taxes 34
levied for collection in calendar years 2026 through 2035.35
NEW SECTION. Sec. 4. RCW 82.32.808 does not apply to this act.36
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p. 2 SB 5674