Unpaid taxes to help balance state budget

SEATTLE — The names are familiar, Subway, McDonald’s, Jack in the Box. All are national chains with locally owned outlets.

Each outlet pays a franchise fee to national headquarters, and lawmakers say it's those national corporations that haven't been paying the taxes they owe on the franchise fee.

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“You don't just get to not pay your taxes in our state, that is a responsibility that we all owe,” said Anacortes state Rep. Kristine Lytton (D-40th District).

So lawmakers are offering the national corporations a deal, pay four years of back taxes with interest -- and the state will forgo legal action and penalties.

The deal will raise $46 million dollars, money that will go to help with the teacher shortage, to improve mental health facilities like Western State Hospital.

Lytton says it's time those big out-of-state corporations pay their fair share.

"One of the things that we did prevent in this budget is another tax break for large national corporations that are making huge profits."

Cox Media Group