Boeing asks lawmakers to suspend preferential tax rate

OLYMPIA, Wash. (AP) — Washington state lawmakers say they will introduce bills, at The Boeing Co.’s request, to suspend the aerospace giant’s preferential business and occupation tax rate until the United States and European Union resolve their long-running international trade dispute.

The legislation will suspend the 40% tax break that the Legislature adopted for the aerospace industry in 2003 and expanded in 2013.

Last year, the World Trade Organization body ruled Boeing received an illegal U.S. tax break from Washington state that damaged sales by European archrival Airbus.

But the ruling was limited and the decision found no grounds upon which the European bloc could seek damages, except for the Washington state tax program.