More than 2,000 businesses are planning to relocate to Washington state for the 2018 tax season, the first wave of the tax season that opens Thursday.
But those are just the first businesses moving into the state.
The next wave of new business will be coming online by 2020, according to a state-level projection released Tuesday.
And more than 10,000 new businesses will be created in Washington state next year, including more than 3,400 new businesses in the next two years, the forecast said.
The forecast, released by the Office of Business and Economic Development (OBD), is the first of its kind.
It projects a robust economy for Washington state, with job creation and revenue generating.
The state is forecast to add $11.3 billion in economic activity this year and $23.1 billion in 2020, the projection said.
That’s an increase of 4.5 percent and a $2.5 billion jump in gross domestic product, or GDP.
The projections are based on a new version of the Washington state’s Tax Foundation model, which the state used to calculate the tax revenue projections in 2017 and 2018.OBD said the forecast shows the state is on track to add about $7 billion in additional revenue by 2021, up from the $5.4 billion forecast in 2018.
The increase will come largely from a reduction in the corporate income tax rate from 15 percent to 14.5.
Oddly, the tax revenues increase doesn’t include any of the revenue from the sales tax.
The Washington state Department of Revenue said the state has already collected more than $2 billion from the tax in the first two years of the forecast.
It’s not clear how much of the projected tax revenue will be offset by the impact of the state’s economic downturn, which has resulted in some businesses being closed.
The economic downturn has made it more difficult for some small businesses to find qualified buyers.
In January, the state lost the help it used to help businesses relocate from other states, including Washington.
That meant fewer people in the state and a sharp reduction in sales tax collections.
Statewide, the revenue is projected to drop from $6.1 to $4.4 million by 2021.
That means the state will have to pay out less in taxes this year.