Bottled Water, Oregon Shoppers Remain Tax Free Under Washington Budget

Jun 29, 2015

Oregon shoppers and bottled water will remain untaxed in Washington’s next two-year budget, but a couple of other tax exemptions will be eliminated.

That’s according to a summary released Monday afternoon of the budget deal reached by House Democrats and Senate Republicans over the weekend.

Democrats had proposed to end the sales-tax exemptions for out-of-state shoppers and for bottled water. But in the end, two tax breaks you’ve likely never heard of are getting whacked. One is a machinery and equipment exemption for software manufacturers. Another is a preferential tax rate for royalty income.

The budget deal includes a couple of other wonky revenue generators. The total amount raised from this mini-tax package is projected to be $185 million over the next two years, a far cry from the $1.5 billion tax package Democrats proposed in March.

The budget also extends some expiring tax breaks, something Republicans insisted upon. Overall, the next two year budget would spend $38 billion -- a 13 percent increase over the last two years.