Inslee vetoes tax break for manufacturers

OLYMPIA, Wash. (AP) - Gov. Jay Inslee has vetoed a plan to give manufacturers the same tax cut that the Legislature previously gave to Boeing.

The tax break was one of 13 listed in a bill that Inslee signed Friday, though he used his veto pen on both the manufacturing business and occupation tax rate and also on a sales tax exemption for TransAlta as it converts its coal plant to natural gas.

While some Republicans had argued that the manufacturing tax break was part of an overall state budget deal that ultimately avoided a partial government shutdown, Inslee's office insists he was never directly asked about - and never agreed to - the tax cut for manufacturers.

The rate would have lowered manufacturer's rate from .484 percent to .2904 percent, costing the state about $64 million over the next four years.