The state of Washington gave Boeing an enormous series of tax-breaks in 2014 to encourage it to build its 777X jets in Everett, a city located less than 50 miles north of Seattle. Now, information relating to part of those tax breaks has been publicized.
Washington’s Department of Revenue released a report to the Seattle Times which shows that Boeing saved nearly $20 million in sales taxes due to an exemption related to its construction of airplane-manufacturing facilities.
Though $20 million is a lot of money, the amount published in the report signifies a small portion of the total amount Boeing will save annualy due to the record-high tax-incentive package, which the state’s legislature approved in 2013. The entire tax-incentive package also featured even greater savings which were attributed to the state’s decision to dramatically reduce the sales tax on Boeing’s business revenues. The Seattle Times estimates the 2013 aerospace tax-incentive package to be worth $8.7 billion over 16 years.
The release of the sales break is historic, as it marks the first time that Washington has publicly stated the exact savings Boeing claimed from a portion of a tax-relief package. Organizations are able to place a public records request for such information due to a tax-transparency provision included in a bill that Washington’s legislature approved in 2013. The provision requires that tax savings claimed by a business be made public within two years of the date that lawmakers approved a tax break. A request can also be placed for the tax incentives given to Boeing’s suppliers under the package.
A complete figure relating to how much Boeing saved due to the tax break won’t be divulged until 2026, according to the Washington Department of Revenue’s interpretation of the laws passed. The Seattle Times said that it is appealing the interpretation.
Filed Under: Aerospace + defense