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Boeing requests to pay higher state taxes to resolve trade dispute

Years after pushing for a record $8.7 billion tax break from the state, Boeing on Wednesday asked legislators to temporarily take it back.

The company says eliminating a preferential state tax rate would resolve a long-running trade dispute with the European Union over competition with Airbus.

Boeing requested the state legislature suspend the special tax rate until the dispute is over.

“This is about the health of the aerospace industry here in the State of Washington and it’s important for all of us to work together on a solution,” said State Rep. Pat Sullivan, the House Democratic majority leader who introduced the bill on Boeing’s behalf.

Supporters say the bill will head off retaliatory tariffs on other Washington products, like wine and apples.

Gov. Jay Inslee convened a special session in 2013 to dramatically extend aerospace tax breaks that were first enacted in 2003.

Boeing committed to building the 777X in Everett, but faced a backlash for moving some jobs out of state.