Congratulations to Air-Tight Windows & Remodeling on their ribbon cutting ceremony on Thursday, June 5! You can visit their new location at 1017 Wright Ave. in Richland.
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Unlocking Economic Growth: Understanding Opportunity Zones in Benton and Franklin CountiesOpportunity Zones (OZs) are designated areas that aim to stimulate economic development in distressed communities by offering tax incentives to investors. Established under the 2017 Tax Cuts and Jobs Act, OZs encourage investment in low-income areas by providing tax benefits to those who reinvest capital gains in these zones.
Purpose and Function of Opportunity Zones The primary goal of OZs is to spur economic growth and job creation in the underdeveloped regions. Investors can defer capital gains taxes by reinvesting those gains in ((QOFs) that finance projects within OZs. If an investment is held for a certain period, investors may benefit from reduced or eliminated capital gains taxes on the new investment. Opportunity Zones in Benton and Franklin Counties In Washington State, 139 census tracts have been designated as Opportunity Zones, including areas within Benton and Franklin Counties. In Benton County, the city of Kennewick features two OZs: the Vista Opportunity Zone and the Downtown/Waterfront Opportunity Zone. Franklin County's city of Pasco also contains designated OZs aimed at attracting investments to stimulate local economic development. Current Status and Future of the Program As of 2025, the Opportunity Zone program will remain active, with key tax benefits available to investors. However, the program is set to expire on December 31, 2026, unless extended by new legislation. Recent legislative proposals aim to renew and enhance the program, potentially extending its benefits beyond the current expiration date. Tax Advantages and Limitations Investing in OZs offers several tax benefits:
Resources for Further Information For those interested in exploring OZ opportunities in Benton and Franklin Counties, local economic development offices and the IRS provide resources and guidance. The Port of Pasco offers information on OZs within Franklin County, while the City of Kennewick provides details on its designated zones. In addition, the IRS website contains comprehensive information on OZ regulations and benefits. Additional information on OZ can also be found by visiting Opportunity Zones | HUD.gov / U.S. Department of Housing and Urban Development (HUD) Conclusion Opportunity Zones present a strategic avenue for investors to contribute to the revitalization of economically distressed areas while receiving tax incentives. In Benton and Franklin Counties, these zones offer the potential for community development and economic growth. As the program's future beyond 2026 remains uncertain, stakeholders should remain informed of legislative developments to maximize the benefits of OZ investments. Breaking Down Washington’s Unemployment Insurance Taxes: Experience-Rated vs. Social CostIn Washington State, experience-related tax and social cost tax are the two primary components of the Unemployment Insurance (UI) tax system. Both are paid by employers; however, they serve different purposes and are calculated differently.
1. Experience-Rated Tax The Experience-Rated Tax is based on an individual employer's history of layoffs and unemployment claims. Employers with more layoffs in the past are assigned a higher tax rate, whereas those with fewer layoffs pay a lower rate. This system incentivizes employers to minimize layoffs and maintain workforce stability. How It Works:
2. Social Cost Tax The Social Cost Tax covers the costs of unemployment benefits that cannot be directly attributed to specific employers. These include:
1. Total UI Tax Rate:
Summary
Congratulations to the City of Kennewick on the grand opening and ribbon cutting for the new splash pad at Kenneth Serier Pool! Check out the new water playground for yourself at 315 W. 6th Ave. in Kennewick. Thank you to everyone who attended the Regional Chamber's Legislative Session Wrap-Up Membership Luncheon on Wednesday, May 28! Our guest presenters - 8th District Sen. Matt Boehnke, 14th District Rep. Deb Manjarrez, 15th District Sen. Nikki Torres, and 16th District Rep. Mark Klicker - shared updates on the latest laws and pivotal changes from the recent legislative session. Congratulations to Highstreet Insurance & Financial Services on their ribbon cutting on Wednesday, May 28! Check out their beautiful location at 6816 W. Rio Grande Ave., Ste. 120 in Kennewick. Congratulations to Ideal Dentistry on the ribbon cutting and grand opening of their new state-of-the-art office. Check out the beautiful new dental clinic at 1663 Fowler St. in Richland. Congratulations to The Falls on 24th on their ribbon cutting and grand opening celebration on Thursday, May 29! You can tour the modern residential units at 4112 W. 24th Ave. in Kennewick. Understanding How Unemployment Insurance Works in Washington State In this two-part series, we cover what Washington State Unemployment Insurance works and how it is collected. In the second part of the series, we discuss how UI rates are calculated.
Unemployment Insurance (UI) in Washington State is a program that provides temporary financial assistance to workers who lose their jobs through no fault of their own. The program is funded by taxes paid by employers, and the system is designed to ensure the stability of both workers and businesses. How UI is Collected UI in Washington is funded by employer-paid taxes. Employers contribute based on their payroll and their "experience rating," which reflects their history of laying off workers. 1. Experience Rating:
The Two Parts of the Fund The Washington State UI system involves two key funds. 1. Unemployment Insurance Trust Fund:
2. Solvency or Supplemental Fund:
Who Pays Each Portion? 1. Employers:
2. Employees:
Employers are solely responsible for funding Washington State's UI program, which consists of the Unemployment Insurance Trust Fund for benefits, and a Supplemental Fund for solvency. The system's design balances individual employer contributions with shared costs to cover broader economic risks, ensuring the program supports workers while maintaining fairness for businesses. Stay tuned for part two. "Breaking Down Washington’s Unemployment Insurance Taxes: Experience-Rated vs. Social Cost" How Property Taxes Work in Washington State Property taxes are one of the main ways communities in Washington State pay for public services. These taxes help fund schools, police, fire departments, roads, libraries, etc. Understanding how property taxes are calculated and where money goes can help one see how tax dollars are used.
In Washington, property taxes are based on the value of one’s home or land. Each year, the county assessor estimates how much your property is worth. This is called an assessed value. Once this value is set, it is multiplied by the tax rate to determine how much you owe. The tax rate comprises several smaller parts. These come from different local governments and services, such as cities, counties, school districts, and fire districts. Each of these groups, called taxing districts, determines how much money it needs to operate. The total amount of money that all these districts want to collect is divided by the value of all properties in the area. This is how the total tax rate is determined. Most of your property tax—about 80 to 85 percent—goes to local taxing districts. This money pays for public schools (local levies), fire protection, parks, and city and county services. The remaining 15 to 20 percent of your tax goes to the state government, mainly to fund K-12 public education. The state collects a uniform tax across all counties, which is called the state school levy. Currently, it is approximately $2.70 per $1,000 of the assessed value, although it can change. This means that if your home is worth $300,000, about $810 of your property taxes goes to the state for public schools. In summary, property taxes in Washington are based on the value of property and the needs of local and state services. Most of what you pay remains in your community, helping to keep schools running, roads repaired, and emergency services available. A smaller portion goes to the state to help fund education across Washington. Here is a short video provided by Washington State that addresses property taxes |
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