Serving Waitsburg, Dayton and the Touchet Valley
State tax incentive program benefits many downtown projects
DAYTON – Have you ever wondered who pays for those gorgeous baskets of flowers that hang in downtown Dayton through the spring and summer? Or who is responsible for the creation of the new playground located next to the Dayton Historic Depot by the caboose?
One part of the answer is the dedicated members of the Dayton Development Task Force and its partner organizations; the other part is – you.
The task force, which has been working to improve downtown Dayton over the last 31 years, is a tax-exempt nonprofit organization. Donations from local businesses and individuals, as well as grants and certain state tax dollars, have supported its many projects over the years – projects such as the major renovation of Main Street in the 1990s and the creation of the public parking lot on East Commercial Street.
But as the organization continues to do its work in Dayton, it continues to need financial support. Two years ago, the task force became eligible to receive money through the Washington Main Street Tax Incentive Program, which allows community businesses to donate a large percentage of their state Business and Occupation (B&O) tax or Public Utility Tax (PUT) specifically toward the economic development of downtown Dayton.
"We are just a speck on the map when it comes to the state pooling these tax dollars and distributing them to organizations by population," said Betty Lou Crothers, operator of State Farm Insurance in downtown Dayton, and one of the original members of the Task Force.
"This program allows businesses to invest directly into their community," she said. "It really does work that way, and it's really cool."
When business owners go online to the Department of Revenue website, they can click on "Credits and Tax Incentives" and pledge their B&O or PUT tax dollars to the task force and its many planned projects. Once the donation request is approved by the Department of Revenue, businesses are eligible for a tax credit the following year worth 75 percent of the contribution pledged.
This means that if a local business donated $1,000 to the task force before the end of 2015, that business would receive a $750 tax credit on its B&O or PUT taxes in 2016. The tax credit cannot be carried forward, however, and the Department of Revenue does not refund businesses who pledge more than 75 percent of their taxes to the program, according to a flyer provided by the state.
Businesses may pledge money any time during the year; the donation payment is not required until Dec. 31, Crothers said. This allows people to wait until the end of the year to donate, if they need to, and then receive their credit right away, in the following year, she said.
The Main Street Tax Credit Incentive program is a way to guarantee that tax dollars go directly toward local improvement programs through the task force, Crothers said. The task force receives all of the donated funds.
In the first year, the task force received more than $64,000. In 2014, local businesses such as The McGregor Company, Puget Sound Energy, Elk Drug, Banner Bank, Columbia Rural Electric Association, Dayton Mercantile, and the Best Western Hotel donated a total of $88,000. The task force can receive up to $133,000 annually per state limits.
"We just want to really thank all these people and these businesses for their support," Crothers said. "And encourage more people to participate in the program. It's really a cool way to directly support the community."
Dayton Development Task Force Projects:
Completed Projects:
Main Street Improvement
Flour Mill Park
Lewis and Clark Camp Site
Public Parking Lot
Asphalt on Touchet River Dike
Public Art
Liberty Theater Restoration
Kiwanis Playground next to the Depot
Flower Baskets on Main Street
Financial Support of Chamber Projects/Events
Projects in the Works:
Public Restrooms by Kiwanis Playground
Continued Support to Chamber
Flower Baskets on Main Street
Regional Signage Project
Revolving Small Business/Building Repair Loan Fund
2014 Tax-Incentive Donors:
Columbia Rural Electric Association
Banner Bank
Best Western Plus
Puget Sound Energy, Inc.
Elk Drug
Dayton Mercantile
State Farm
The McGregor Company
The Times
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