OLYMPIA - 13th District State Rep. Matt Manweller, of Ellensburg, has introduced legislation that would help the economies of small counties across the state.

House Bill 2204, which received a public hearing last week, would re-establish the Rural County Sales and Use Tax Deferral Program - a program Manweller says proved successful from 1994 to 2009.

The Rural County Sales and Use Tax Deferral Program would grant a deferral of sales and use taxes. Such deferrals would be granted on the purchase of qualified machinery, equipment and construction to approved businesses that locate in rural counties and engage in manufacturing, research and development, commercial testing, or vegetable seed conditioning.

"The economies of many small and rural counties are hurting, and this tax incentive legislation will provide an opportunity to attract business and diversify their economies," Manweller said. "We helped Boeing a couple months ago, and now it is time to provide some assistance to the little guy. What's good for the large companies should also be good for our smaller employers."

From 1994 to 2009, the Rural County Sales and Use Tax Deferral Program was responsible for 1,057 approved projects by 802 firms, resulting in $3.2 billion in investment. In 2010, the Legislature allowed the program to expire and cut off applications at the end of fiscal year 2010.

In 2010, state lawmakers created the Qualifying County Program. The program, which is scheduled to run through July 1, 2020, is based on average county unemployment rates rather than the populations of counties. House Bill 2204 would change eligibility back to the rural county sales and use tax deferral program - based on population density only. Thirty-two counties with less than 100 residents per square mile would qualify.

"Reestablishing the rural county sales and use tax deferral program would allow us to see more growth in business and employment opportunities in the areas where we have higher unemployment," Manweller said.

Testifying in support of the legislation were Moses Lake BMW SGL Plant Manager Steve Swanson, Joseph Akers of Chemi-Con, also in Moses Lake, and Jonathan Smith of the Grant County Economic Development Council.