State of Washington
66th Legislature
2020 Regular Session
ByRepresentatives Robinson, Chapman, and Tharinger
Read first time 02/18/20.Referred to Committee on Finance.
AN ACT Relating to providing a business and occupation tax preference for behavioral health administrative services organizations; adding a new section to chapter 82.04 RCW; creating a new section; providing an effective date; and providing an expiration date.
NEW SECTION.  Sec. 1. (1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter . . ., Laws of 2020 (section 2 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to accomplish a general purpose, reducing taxes so more money can go directly to behavioral health services, as indicated in RCW 82.32.808(2)(f).
(3) It is the legislature's specific public policy objective to support behavioral health services that can prevent more serious and costly health issues.
(4) If a review finds that the amount of funding available for behavioral health services by these taxpayers increased, then the legislature intends to extend the expiration date of the tax preference.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state.
NEW SECTION.  Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:
(1) A health or social welfare organization may deduct from the measure of tax amounts received as compensation for providing mental health services or substance use disorder treatment services under a government-funded program.
(2) A behavioral health administrative services organization may deduct from the measure of tax amounts received from the state of Washington for distribution to a health or social welfare organization that is eligible to deduct the distribution under subsection (1) of this section.
(3) A person claiming a deduction under this section must file a complete annual tax performance report with the department under RCW 82.32.534.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Behavioral health administrative services organization" has the same meaning as provided in RCW 71.24.025.
(b) "Health or social welfare organization" has the meaning provided in RCW 82.04.431.
(c) "Mental health services" means mental health services as described in chapter 71.24 RCW.
(d) "Substance use disorder treatment services" means substance use disorder treatment services as described in chapter 71.24 RCW.
(5) This section expires January 1, 2031.
NEW SECTION.  Sec. 3. This act takes effect July 1, 2020.
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