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Politics & Government

Sen. Chase Sponsors Bills to Close Tax Loopholes

Basic Health Plan could be restored if breaks for out-of-state coal purchases, non-essential plastic surgery, mortgage-interest earnings for banks and privately owned airplanes were eliminated

OLYMPIA – Sen. Maralyn Chase, D-Shoreline, is sponsoring three pieces of legislation that will target tax exemptions through audits, transparency and in some cases, elimination.

 “It is clear that our tax structure is out of whack,” Sen. Chase said. “Many of these exemptions have served their purpose yet they remain on the books, taking away revenue from people and services in dire need.

 “At a time when we’re talking about cutting education, health care and other critical services, all options must be on the table.”

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 Senate Bill 5816 will end four tax breaks and reroute the money – an estimated savings of $150 million over the next two years – to keep the Basic Health Plan in place. The four expenditures to be closed under this plan are breaks for out-of-state coal purchases, non-essential plastic surgery, mortgage-interest earnings for banks and privately owned airplanes.

 SB 5922 will examine tax expenditures through audits known as “Clawbacks,” a process which examines the net benefit of expenditures and provides a mechanism to reclaim the benefit if the entity has failed to follow through on the original investment. Over 20 states currently have some form of clawback rules in place.

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 SB 5831 will increase the DOR tax expenditure report to every two years down from every four. It will also lists tax breaks in the budget and what program those breaks support. For example, if there is a tax break going to a non-profit family clinic it is classified as a health care tax break.

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