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Second chances can be hard to get.  With the landslide passage of the regional sales tax increase last month, the Town Toyota Center and Public Facilities District have been given a second chance.  They can not waste this opportunity.  Third chances are rarely given.

The Town Toyota Center is a very nice facility.  But the original plan sold to and by the City of Wenatchee was a financial disaster.  Clearly, mistakes and very bad decisions were made.   Once new leaders were put in place the City was able to realistically assess Read More »

Dr. Arun Raha, state economist and speaker at our spring economic outlook breakfast, is revising his economic forecasts downward for the State due to the weak economy.  The Governor has already directed departments to look for 5% more in cuts.  After the next official forecast on September 15th, expect the Legislature to be called into Special Session to make more cuts in the two year state budget that just started last month.

What does this mean to us here in the Valley?  More budget cuts are coming and that means there will be fewer state employees.  At the start of the recession,  businesses, large and small, went through a similar process to survive.  Now it is government’s turn.  Expect fewer services and slower response from your state government.  Most of the State employee job losses so far have been concentrated in King, Pierce, and Thurston counties, although layoffs and restructuring might be felt here as we are a regional center for government services.  Increased or new fees are also likely as the State tries to generate additional non-tax revenue.

By Paul Trause, Employment Security Commissioner

Great news! The state Legislature has passed Gov. Gregoire’s proposal to reduce unemployment tax rates for most employers in Washington beginning this year.

As you may recall, our state has one of the healthiest unemployment funds in the country, yet the tax formulas in state law were triggering substantial tax increases for employers in 2011.  The Governor asked the state Legislature to revise the tax formulas to reduce tax rates – and to vote on it early in the legislative session so the lower rates could take effect this year.

The legislation was the first to pass and be signed by the Governor this year.  It succeeded due to considerable collaboration, spurred by a shared concern for how businesses and jobless workers have been affected by the recession.  Not only was it adopted quickly, but it received almost unanimous votes in both the Senate and House. 

As a result, tax rates for 2011 will be reduced for 90 percent of Washington employers, and about half of them will pay lower rates than in 2010.  The reduction will save employers $300 million in 2011, and an estimated $360 million from 2011 through 2017.

Employment Security will recalculate tax rates and send new tax-rate notices in March to replace the ones sent to employers in December. Employers do not have to request an updated tax-rate notice; all employers will receive one in the mail.

The legislation also made some changes to the benefits side of the unemployment insurance system. It continues federally funded extended benefits through the end of 2011, makes the Training Benefits Program more accessible, and provides a temporary, $25 benefit increase for workers who file new unemployment claims during an eight-month window this year.

For more details about the tax reduction and benefit enhancements contained in the legislation, read Employment Security’s fact sheet.

Well here is your chance to share it with the Department of Revenue.  Pursuant to an order from the Governor, the Department of Revenue is hosting meetings around the State seeking feedback from business, especially small business, on our State tax code and tax simplification.  The meeting in our Valley is Tuesday, February 15th from 2 to 3:30 p.m. at the 3rd Floor Conference Room at Columbia Street Station, 300 South Columbia (former Chamber location).  It is free and open to all businesses, not just our members.  If you are interested, please RSVP at 662-2116.  Below is the information from the Department of Revenue about the meeting:

The meeting will be informal and we are looking to capture simplification ideas and answers to questions such as:

• What are the areas related to our tax system that take up the most time for small businesses?
• Without recommending the elimination of taxes, please describe what “tax simplification” means to you.
• What do you believe are the primary “road blocks” to tax simplification?
• What can be done to simplify the process of collection and reporting of state and local sales taxes?   B&O taxes?  Other taxes?
• What suggestions do you have for ways to simplify the business tax process in general?
• Any other feedback you have for us on how we can make it simpler for you to pay your taxes?

As I was putting the finishing touches on the 2011 Chamber Budget, I received the 2011 rate notice for unemployment taxes.  Like many of our members, the Chamber is going to be paying  significantly more into the unemployment system next year.  Today I received some information from Employment Security explaining the reasons behind the increases which I would like to share with our members.  And, as always, we are interested in your comments on this and our other posts.

Recession drives higher unemployment taxes

By Employment Security Commissioner Paul Trause

During these extraordinarily challenging times, it’s not welcome news to hear that unemployment-insurance taxes will increase again for most employers in 2011. 

Our state’s unemployment-insurance system is set up so that rates usually are lower during tough times and higher during good times. Unfortunately, this recession has gone longer and deeper than any recession in decades, so tax rates are rising before the recovery has gained momentum.

 In 2011, the average tax rate will be an estimated 3.26 percent, up from 2.39 percent in 2010.  Rates in 2011 will range from Read More »