Economy of Washington (state)

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The northwestern U.S. state of Washington's economy grew 3.7% in 2016, nearly two and a half times the national rate. Average income per head in 2009 was $41,751, 12th among states of the U.S.

The United States' largest concentration of

hydroelectric power, are other important sectors. Important firms based in Washington include Starbucks, Amazon, Costco, and Microsoft
.

Washington does not levy a personal income tax, but raises revenue through sales tax, property tax, and a gross receipts tax on businesses.

Taxes

The state of Washington is one of only seven states that does not levy a personal

corporate income tax or franchise tax. However, Washington businesses are responsible for various other state levies. One tax Washington charges on most businesses is the business and occupation tax (B & O), a gross receipts tax
which charges varying rates for different types of businesses.

Washington's state base

Lynnwood and Mill Creek have the highest sale tax rate in the state at 10.4 percent.[2] These taxes apply to services as well as products.[3] Most foods are exempt from sales tax; however, prepared foods, dietary supplements and soft drinks
remain taxable.

An "ex" applies to certain select products such as

libraries, parks
and recreation, and other special-purpose districts.

All

estate tax
is decoupled from the federal estate tax laws, and therefore the state imposes its own estate tax.

Personal income

The

per capita personal income in 2009 was $41,751, 12th in the nation.[4]

Several notable billionaires, including

James Jannard (Oakley), Howard Schultz (Starbucks), and Charles Simonyi (Microsoft).[5][6]

Trade

Bainbridge Island
ferry near Terminal 46

Significant amounts of trade with Asia pass through the ports of the Puget Sound. Washington is the fourth largest exporting state in the United States, after New York, California, and Texas.

The ports of Washington handle 8% of all American exports and receive 6% of the nation's imports.[7]

Industries

Washington industries by GDP value added 2011

Industry GDP value added $ millions 2011 % of total GDP
Government 52,757 14.86%
Real estate and rental leasing 43,123 12.14%
Information 31,283 8.81%
Durable good manufacturing 30,372 8.55%
Retail trade 25,057 7.06%
Healthcare and social assistance 24,798 6.98%
Finance and insurance 17,317 4.88%
Non-durable good manufacturing 13,763 3.88%
Construction 12,883 3.63%
Administrative and waste management 10,403 2.93%
Accommodation and food services 10,104 2.84%
Transportation and warehousing 9,724 2.74%
Other services, except government 8,023 2.26%
Arts, entertainment and recreation 2,700 0.76%
Educational services 2,094 0.59%
Mining 710 0.19%
Total 355,083 100%

Manufacturing and commercial

Key businesses within the state include the design and manufacture of jet

Expedia, Inc.), electronics, biotechnology, aluminum production, lumber and wood products (Weyerhaeuser), mining
, and tourism.

A Fortune magazine survey of the top 20 most admired companies in the US included four Washington-based companies: Starbucks, Microsoft, Costco and Nordstrom.[8]

Washington was one of eighteen states which had a

government monopoly on sales of alcoholic beverages, although beer and wine with less than 20% alcohol by volume could be purchased in convenience stores and supermarkets. Liqueurs (even if under 20% alcohol by volume) and spirits could only be purchased in state-run or privately owned-state-contracted liquor stores.[9] This however was overturned by 2011's Initiative 1183 which ceased state-run liquor stores as of June 1, 2012.[10]

Agriculture

Main article:
Agriculture in Washington
Dryland farming caused a large dust storm in parts of Eastern Washington on October 4, 2009.

Washington is a leading

Washington Field Office). For 2003, the total value of Washington's agricultural products was $5.79 billion, the 11th highest in the country. The total value of its crops was $3.8 billion, the 7th highest. The total value of its livestock and specialty products was $1.5 billion, the 26th highest. In 2010, the total value of the crops was $7.93 billion.[12]

Azwell, Washington, a small community of pickers' cabins and apple orchards. Wells Dam visible in background.

In 2004, Washington ranked first in the nation in production of red

strawberries
.

Apples

Main article: Washington apples

The apple industry is of particular importance to Washington. Because of the favorable climate of dry, warm summers and cold winters of Central Washington, the state has led the U.S. in apple production since the 1920s.[13] Two areas in Eastern Washington – the Yakima River valley and the Wenatchee River valley – account for the vast majority of the state's apple crop.[14] The Washington Apple Commission regulates the industry.

Energy

See also:
Wind power in Washington (state)
Washington electricity production by type

Washington is the leading producer of

hydroelectric power in the U.S. Hydroelectricity makes up over half of electricity state's electric generation and nearly 35% of its total energy consumption.[15]

Employment

Employment by industry in Washington[16]

Industry Employment thousands March 2013 Percent of total employment
Trade, transportation and utilities 548.2 18.84%
Government 540.9 18.59%
Education and health services 392.2 13.4%
Professional and business services 352.0 12.10%
Manufacturing 288.0 9.90%
Leisure and hospitality 281.7 9.65%
Financial activities 142.3 4.89%
Other services 112.4 3.86%
Information 104.7 3.60%
Mining, logging and construction 6.1 0.21%
Total 2,909.5 100%

Real estate

At $43 billion, real estate and rental leasing forms 12.14% of total GDP in Washington. (see above)

On December 4, 2016 Bloomberg compared the cost of housing between

single-family houses in Seattle.[19]

See also

References

  1. ^ "Local Sales and Use Tax Rates by City/County" (PDF). Washington State Department of Revenue. Retrieved December 30, 2017.
  2. ^ a b "Sound Transit 3 sales-tax increase takes effect Saturday". The Seattle Times. 2017-03-31. Retrieved 2017-05-01.
  3. ^ "Retail sales tax". Washington State Department of Revenue. Retrieved April 19, 2014.
  4. ^ https://www.bea.gov/newsreleases/regional/spi/2010/pdf/spi0310.pdf Archived 2012-09-21 at the Wayback Machine Retrieved 2010-17-7
  5. ^ Ahrens, Frank (September 22, 2006). "No news here ... Gates still richest". The Seattle Times. Retrieved April 19, 2014.
  6. ^ "Jeff Bezos and Bill Gates got even richer in 2017". Bloomberg News. Retrieved December 28, 2017.
  7. ^ http://www.washingtonports.org/issues_areas/economic_development/trade_statistics.asp Archived 2010-04-14 at the Wayback Machine Trade Statistics. Retrieved 2010-07-17.
  8. ^ "Top 20 Most Admired Companies". Fortune Magazine. Retrieved 2007-06-15.
  9. ^ "Washington State Liquor Control Board". Washington State Liquor Control Board. Archived from the original on 2007-06-27. Retrieved 2007-06-15.
  10. ^ "Washington State Liquor Control Board". Washington State Liquor Control Board. Archived from the original on 2012-05-27. Retrieved 2012-07-10.
  11. ^ Washington State Office of Financial Management
  12. ^ Dininny, Shannon (2011-10-24). "State ag sees a banner year in 2010, promises of more in 2011". Yakima Herald-Republic. Archived from the original on 2012-04-07. Retrieved 2011-10-26.
  13. ^ Schotzko, Thomas R.; Granatstein, David (2005), A Brief Look at the Washington Apple Industry: Past and Present (PDF), Pullman, WA: Washington State University, p. 1, retrieved 2008-05-09
  14. JSTOR 141294
    .
  15. ^ "U.S. Energy Information Administration - EIA - Independent Statistics and Analysis". www.eia.doe.gov. Retrieved 2010-07-17.
  16. ^ "Washington Economy at a Glance". www.bls.gov.
  17. ^ "Vancouver Tax Pushes Chinese to $1 Million Seattle Homes". Bloomberg.com. 4 December 2016 – via www.bloomberg.com.
  18. ^ "Vancouver's housing mess: Could it happen here?". crosscut.com.
  19. ^ "Ruling expected on attempt to block Seattle's expansion of mother-in-law units". seattletimes.com. 9 December 2016.
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