Repeal
of AZ death tax attracts Washington company
Other
companies expected to follow
by Barry Cohen
NORTH VALLEY - A $2 billion West Seattle, Washington, food services
company is moving its headquarters to Scottsdale because of Arizona's
pending repeal of the death tax, said Sen. Dean Martin, sponsor
of Senate Bill 1170, which will end the tax and the state's generation
skipping transfer tax.
"With Washington's legislature and governor electing to impose
the highest state inheritance tax in the nation on family owned
companies, it has left us with little choice but to move,"
said Gary Odegard, vice president of corporate communications for
Services Group of America Inc. Odegard pointed out that state's
inheritance tax levied on family owned businesses is currently 19
percent.
Sen. Martin called the death tax the most morally objectionable
tax on the books. "Our repeal is good for families, good for
business and good for Arizona's economic development," he continued.
Stating that his bill to repeal the death tax closed the Services
Group deal, Sen. Martin added he is excited that "our hard
work moving Arizona to a low, fair tax structure is already paying
off." He expects other out of state private companies to follow
because of Arizona's favorable business climate.
Services Group of America is Washington's second largest private
company. Although it employs some 4,000 people, the company said
it expects relatively few of them will be affected by the move.
SB 1170 passed the Senate with overwhelming bipartisan support and
is heading for a voice vote in the House of Representatives before
going to Gov. Janet Napolitano. |
