Economy of Washington (state)
The 2009 total gross state product for Washington was $336.3 billion, placing it 14th in the nation.[1]
As of August 2013, the state's seasonally adjusted unemployment rate was 7%.[2]
Taxes
The state of Washington is one of only seven states that does not levy a personal income tax. The state also does not collect a 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 sales tax is 6.5% which is combined with a local rate. As of April 2010, the rate will be 9.5% in Seattle and other cities.[3] These taxes apply to services as well as products.[4] Most foods are exempt from sales tax; however, prepared foods, dietary supplements and soft drinks remain taxable. The combined state and local retail sales tax rates increase the taxes paid by consumers, depending on the variable local sales tax rates, generally between 8 and 9%.[5]
An (ex) applies to certain select products such as gasoline, cigarettes, and alcoholic beverages. Property tax was the first tax levied in the state of Washington and its collection accounts for about 30% of Washington's total state and local revenue. It continues to be the most important revenue source for public schools, fire protection, libraries, parks and recreation, and other special purpose districts.
All real property and personal property is subject to tax unless specifically exempted by law. Personal property also is taxed, although most personal property owned by individuals is exempt. Personal property tax applies to personal property used when conducting business or to other personal property not exempt by law. All property taxes are paid to the county treasurer's office where the property is located. Washington does not impose a tax on assets such as bank accounts, stocks or bonds. Neither does the state assess any tax on retirement income earned and received from another state. Washington does not collect inheritance taxes; however, the 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.[6]
Among its resident billionaires, Washington boasts Bill Gates, chairman of Microsoft, who, with a net worth of $40 billion, was ranked the wealthiest man in the world as of February 2009, according to Forbes magazine.[7] Other Washington state billionaires include Paul Allen (Microsoft), Steve Ballmer (Microsoft), Jeff Bezos (Amazon), Craig McCaw (McCaw Cellular Communications), James Jannard (Oakley), Howard Schultz (Starbucks), and Charles Simonyi (Microsoft).[8]
Trade
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.[9]
Industries
Washington industries by GDP value added 2011
| Industry | GDP value added $ billions 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 aircraft (Boeing), computer software development (Microsoft, Nintendo of America, Valve Corporation), online retailers (Amazon.com, 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 has four Washington-based companies in it, Starbucks, Microsoft, Costco and Nordstrom.[10]
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.[11] This however was overturned by 2011's Initiative 1183 which ceased state-run liquor stores as of June 1, 2012.[12]
Agriculture
Washington is a leading agricultural state. (The following figures are from the Washington State Office of Financial Management and the USDA, National Agricultural Statistics Service, 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.[13]
In 2004, Washington ranked first in the nation in production of red raspberries (90.0% of total U.S. production), wrinkled seed peas (80.6%), hops (75.0%), spearmint oil (73.6%), apples (58.1%), sweet cherries (47.3%), pears (42.6%), peppermint oil (40.3%), Concord grapes (39.3%), carrots for processing (36.8%), and Niagara grapes (31.6%). Washington also ranked second in the nation in production of lentils, fall potatoes, dry edible peas, apricots, grapes (all varieties taken together), asparagus (over a third of the nation's production), sweet corn for processing, and green peas for processing; third in tart cherries, prunes and plums, and dry summer onions; fourth in barley and trout; and fifth in wheat, cranberries, and strawberries.
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.[14] Two areas account for the vast majority of the state's apple crop: the Wenatchee–Okanogan region (comprising Chelan, Okanogan, Douglas, and Grant counties), and the Yakima region (Yakima, Benton and Kittitas counties).[15]
Energy
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.[16]
Employment
Employment by industry in Washington [17]
| 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, lodging and construction | 6.1 | 0.21% |
| Total | 2,909.5 | 100% |
Consumers
(under construction)
Fiscal Budget
(under construction)
| Revenue by Source | $ thousands | Percent of revenue |
|---|
| Expense | $ millions 2011 fiscal year | Percent of expenses |
|---|
See also
References
- ↑ "www.bea.gov/regional/gsp/". Archived from the original on July 7, 2010.
- ↑ ; Seasonally Adjusted Unemployment Rates for Washington State
- ↑ "Local Sales and Use Tax Rates by City/County" (PDF). Washington State Department of Revenue. Retrieved 2010-03-22.
- ↑ "Collection of Retail Sales Tax". Washington State Department of Revenue. Retrieved 2007-10-06.
- ↑ http://dor.wa.gov/content/home/TaxTopics/FederalDeductionLSTaxTable.aspx
- ↑ http://www.bea.gov/newsreleases/regional/spi/2010/pdf/spi0310.pdf Retrieved 2010-17-7
- ↑ #1 William Gates III - The World's Billionaires 2009 — Forbes (February 11, 2009). Retrieved 9-13-2009.
- ↑ Seattle Times September 22, 2006 "No news here ... Gates still richest"
- ↑ http://www.washingtonports.org/issues_areas/economic_development/trade_statistics.asp Trade Statistics. Retrieved 2010-07-17.
- ↑ "Top 20 Most Admired Companies". Fortune Magazine. Retrieved 2007-06-15.
- ↑ "Washington State Liquor Control Board". Washington State Liquor Control Board. Archived from the original on 2007-06-27. Retrieved 2007-06-15.
- ↑ "Washington State Liquor Control Board". Washington State Liquor Control Board.
- ↑ Dininny, Shannon (2011-10-24). "State ag sees a banner year in 2010, promises of more in 2011". Yakima Herald-Republic. Retrieved 2011-10-26.
- ↑ 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
- ↑ Lemons, Hoyt; Rayburn, D. Tousley (July 1945). "The Washington Apple Industry. I. Its Geographic Basis". Economic Geography (Clark University) 21 (3): 161–162, 166. doi:10.2307/141294.
- ↑ http://www.eia.doe.gov/state/state_energy_profiles.cfm?sid=WA Retrieved 2010-17-7
- ↑ http://www.bls.gov/eag/eag.wa.htm
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