The Southwest Washington Association of Business Leaders (SWABL) and the Woodland Chamber of Commerce have each sent a letter to legislators in Olympia strongly opposing any repeal to the Washington State Sales Tax Exemption for Oregon residents.
The Legislature is considering doing away with the exemption for out-of-state shoppers as a potential component to help balance the budget – an idea that was first proposed during the Legislature’s last session.
“We understand the Legislature’s need to look extensively and consider everything in making the cuts to the state budget,” reads SWABL’s letter. “But we disagree with anyone who says repealing the sales tax exemption is a harmless way to recoup state revenues.”
Some companies in Southwest Washington report 18 to 25 percent of their business comes from Oregon residents, according to SWABL.
“We represent nearly 200 businesses in Woodland and Southwestern Washington,” reads the letter from the Woodland Chamber of Commerce. “Although Woodland is located 21 miles north of the I-5 Interstate Bridge, a significant number of our businesses receive out-of-state sales from our neighbors in Oregon. One Woodland nursery reports 15-20 percent of their sales consistently come from out-of-state shoppers.”
"This is a huge issue for border communities," added Tammie Howard, executive director of the Woodland Chamber, in a press release. "Our businesses can't afford to lose sales, even if it is only a small percentage, it makes a difference. We feel the impact."
In addition to the letters, Darlene Johnson and Mary Urban, both Board of Trustees Officers for the Woodland Chamber of Commerce, made the drive to Olympia to testify at a legislative hearing last month, as did Kelly Parker, CEO & President of the Greater Vancouver Chamber of Commerce.
"What small amount the state might make in sales tax they will lose in business revenue when sales decline and unemployment goes even higher," said Johnson. “In an area where the effective unemployment rate remains over 12 percent, that is a real concern.”
Legislators are expected to make a decision on the issue within the month.
