OLYMPIA — The state Senate has approved a revised bill to repeal a tax break for Boeing, a measure that was requested by the aerospace giant to resolve a long-running trade dispute.
The Daily Herald reported that Senate Bill 6690 was passed by a 43-5 vote on Tuesday and no goes to the House. It seeks to address an international trade dispute between the U.S. and the European Union and prevent billions of dollars in retaliatory tariffs on Boeing planes and other Washington exports.
“We applaud the Senate for its commitment to full WTO compliance,” Boeing spokesman Bryan Watt said in an email. “We support this legislation and look forward to the House vote.”
The lower rate the company now seeks to repeal has saved Boeing hundreds of millions of dollars since 2003. In 2013, that tax break was extended to 2040, helping convince the company to build the 777X in Everett.
Currently, the company pays a business-and-occupation tax rate of 0.2904 percent. Starting April 1, it would be gone and the company’s rate would rise to 0.484 percent, an increase of 40 percent, according to the legislation.
That rate would come back down to 0.357 percent, a roughly 25 percent cut, once the state Department of Commerce verifies that the U.S. and European Union have entered into a written agreement resolving any World Trade Organization disputes involving large civil aircraft.