The bill aims to exempt manufacturing machinery and equipment from the real estate excise tax in Washington state, addressing the decline in manufacturing jobs and the unequal tax treatment faced by manufacturers across different counties. The legislature recognizes the importance of manufacturing to the state's economy and seeks to enhance taxpayer equity by clarifying that machinery and equipment, as defined in RCW 82.08.02565, should not be classified as real property for tax purposes. This change is intended to alleviate the unintended tax burden on manufacturers and support the sustainability and competitiveness of the manufacturing industry in Washington.

To implement this exemption, the bill amends RCW 82.45.032 by specifying that the definitions of "real estate" or "real property" do not include machinery and equipment as defined in the relevant RCW. Additionally, the bill establishes a new section that sets the effective date for the act as July 1, 2025. This legislative action is part of a broader effort to ensure that manufacturing remains a critical source of family-wage jobs in the state.

Statutes affected:
Original Bill: 82.45.032