View: Incentives | Financing Options | Utilities | Taxes
Washington State and Cowlitz County provide a wide range of business incentives for new and expanding industrial growth. Tax incentive programs, industrial revenue bonds, and job training programs are just a few of the incentives available. Washington State has no corporate income, unitary waters edge or inventory tax. The state does not collect a personal income or capital gains tax.
Tax Incentives for locating at the Port of Kalama:
The Port of Kalama is able to facilitate in a variety of loans for businesses that are seeking financial assistance. The Port works with the Cowlitz Economic Development Council who is available to help business and industry secure long-term expansion loans combining private financial resources with federal and state lending assistance.
There are various loan programs available for real estate, new construction, renovation, major lease improvements, machinery, equipment and working capital.
Businesses that may qualify for these loans include:
- Manufacturing
- Service
- Start-up businesses
- Wholesale companies
Following are the various loan programs available:
Though this is not an exhaustive consideration of the tax issues in the state of Washington, it is intended to bring attention to the most prominent taxes to be addressed in siting a facility. An in-depth evaluation can be provided if requested. The taxes discussed are:
1. INCOME TAX
The state of Washington has no income tax; it is prohibited by the State Constitution.
2. PROPERTY TAX
This tax is based upon value (ad valorem). It applies to both personal and real property. It is levied and collected at the county level based upon the county's valuation of the property at 100% of market value. The tax rate varies throughout the state. The rate in Cowlitz County is $11.15 - $17.67/$1,000. The consolidated tax rate for Kalama is $9.25/$1,000 A.V.
3. LEASEHOLD TAX
Public entities do not pay property tax. In lieu thereof, a leasehold tax is assessed against rent payments paid to the public entity. The leasehold tax rate is 12.84% of the rent payments; however, the leasehold tax cannot be greater than the property tax amount which would be owed if the property were held by a non-public entity.
4. SALES TAX/USE TAX
Sales tax applies to retail sales and includes construction contracts. It is the purchaser's obligation to pay the tax. Tax incentives exist which allow sales tax associated with new manufacturing businesses to be exempt entirely for three years and then paid over the next five years (total deferral - eight years). The state tax rate is 6.5%. In addition, counties and cities can levy additional sales taxes which make the sales tax statewide vary from 7 to 8%. In Cowlitz County the rate is 7.6% and inside Kalama city limits it is also 7.6%.
Use tax is the counterpart to sales tax for items which are not purchased within the state but which are brought into the state.
5. BUSINESS AND OCCUPATION TAX
The B & O tax is assessed against the gross receipts of the business. The rate varies according to the business involved. A tax incentive program exists whereby a credit can be claimed against the B & 0 tax liability for new employees hired by a manufacturing business.
6. REAL ESTATE EXCISE TAX
This tax is on conveyance of real property. It equals 1.32% of the sales price. It does not apply to real estate purchased from a public entity.