January, 2000

TO: The Honorable Valoria Loveland, Chair
Senate Ways and Means Committee
The Honorable Brian Thomas, Co-Chair
House Finance Committee
The Honorable Hans Dunshee, Co-Chair
House Finance Committee

FROM:           Frederick C. Kiga, Director

SUBJECT:     2000 TAX EXEMPTION REPORT

This report is submitted to you and your committees pursuant to RCW 43.06.400 which was enacted in 1983. This edition is the ninth in a series of exemption studies which have been prepared each biennium, starting with the 1984 report.

The report covers 431 exemptions, deductions, credits, etc. for major state and local tax sources. Estimated savings for taxpayers exceed $45 billion in state/local taxes for the current biennium. The format provides a description of the statutory provisions, the purpose of the exemption, a categorical assignment, the year the exemption was enacted and major subsequent revisions, an indication of the primary beneficiaries, whether the exemption conflicts with a state program, and, of course, the estimated fiscal impacts in terms of savings for taxpayers for each year of the current biennium as well as 2001-03.

The exemption estimates were prepared by analysts of the Research Division, under the direction of Mary Welsh, Assistant Director, and Don Taylor, Revenue Analysis Manager. Please contact the Research Division (360-753-2087) if you have any questions about the study. We are making the report available to all legislators, the staff of your committees, the Governor's office, and other interested parties. We hope you will find the information to be useful. As always, we are glad to answer any questions you or your committees may have relating to exemptions or any other tax matter.

cc: The Honorable Gary Locke, Governor