SB 5763 makes cents | Editorial

Government is often criticized for moving with all the swiftness of a glacier.

When it comes to Senate Bill 5763, however, our elected officials in the state House and Senate deserve credit for speedy and decisive action.

That bill, sponsored by Sen. Kevin Ranker, D-San Juan Island, and championed in the House by Rep. Jeff Morris, D-Mount Vernon, appears exceedingly fair and couldn’t be more timely.

British Columbia recently changed the way it collects sales-tax and teamed up with its federal government to impose a single value-added tax on purchases. The net effect is Canadian shoppers in certain states and provinces, those no longer subject to a regional sales-tax, qualify for an exemption when buying goods in the U.S.

SB 5763 closes the door on that exemption. It sailed through the House March 9 and is headed to the governor.

According to Morris, the bill reflects the status quo and ensures Canadians pay their fair share of state sales tax, as do U.S. shoppers in Canada.

“When we cross into B.C., we must pay their tax upwards of 12 percent on every purchase,” he said. “Even with this disqualification, Canadian visitors are receiving a deal by shopping in our state.”

Without SB 5763, Whatcom County stands to lose hundreds of thousands of dollars in sale-tax revenue, according to Ranker, and Bellingham would lose up to 10 percent of its annual sales-tax revenue.

And without the bill, San Juan County would have been in the same boat. Our Canadian friends are just a ferry ride away, and their tourist dollars count in our island economy.

We urge the governor to support this critical legislation.