Published: Tuesday, April 28, 2009
Gregoire to OK tax break for newspapers
OLYMPIA -- A tax break for The Herald and other companies that print and publish newspapers is headed to the governor for her expected signature.
The Senate on Sunday voted 46-2 to approve legislation to lower the business and occupation tax rate charged producers of newspapers. In March, the House passed the same measure 91-5.
The proposed new rate is the same one paid by aerospace and timber firms. If signed by Gov. Chris Gregoire, it will go into effect July 1.
Herald Publisher Allen Funk said he viewed the wide margin of support in the Legislature as a reflection of a "widespread recognition that the newspaper industry is a valued asset and people want them to survive."
In Washington and across the country, newspapers are struggling financially, primarily because advertising dollars are plummeting in the recession. Newspaper closures are occurring frequently and it's not the small ones. Two major papers, the Seattle Post-Intelligencer and the Rocky Mountain News in Colorado, closed within days of each other earlier this year.
"In this environment, all newspapers across Washington state are being forced to examine every cost. For us to get a nice tax break like this does help us at the margins," Funk said.
For the community it will mean the paper can keep more reporters covering the news, he added.
Under the legislation, the tax rate will be reduced from 0.484 percent to 0.2904 percent of gross income from the printing and publishing of newspapers.
The state will lose an estimated $1.2 million in revenues the first year and $1.3 million in ensuing years.
In addition, the Department of Revenue expects to spend $31,025 to set up, test, and verify the computer systems for the new tax rate and for sending out a special notice to affected businesses.
Jerry Cornfield;360-352-8623; jcornfield@heraldnet.com
The Senate on Sunday voted 46-2 to approve legislation to lower the business and occupation tax rate charged producers of newspapers. In March, the House passed the same measure 91-5.
The proposed new rate is the same one paid by aerospace and timber firms. If signed by Gov. Chris Gregoire, it will go into effect July 1.
Herald Publisher Allen Funk said he viewed the wide margin of support in the Legislature as a reflection of a "widespread recognition that the newspaper industry is a valued asset and people want them to survive."
In Washington and across the country, newspapers are struggling financially, primarily because advertising dollars are plummeting in the recession. Newspaper closures are occurring frequently and it's not the small ones. Two major papers, the Seattle Post-Intelligencer and the Rocky Mountain News in Colorado, closed within days of each other earlier this year.
"In this environment, all newspapers across Washington state are being forced to examine every cost. For us to get a nice tax break like this does help us at the margins," Funk said.
For the community it will mean the paper can keep more reporters covering the news, he added.
Under the legislation, the tax rate will be reduced from 0.484 percent to 0.2904 percent of gross income from the printing and publishing of newspapers.
The state will lose an estimated $1.2 million in revenues the first year and $1.3 million in ensuing years.
In addition, the Department of Revenue expects to spend $31,025 to set up, test, and verify the computer systems for the new tax rate and for sending out a special notice to affected businesses.
Jerry Cornfield;360-352-8623; jcornfield@heraldnet.com
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