S-0706.3
SENATE BILL 5424
State of Washington | 67th Legislature | 2021 Regular Session |
BySenators Wilson, L., Braun, Brown, Fortunato, Holy, Keiser, and Rivers
Read first time 02/04/21.Referred to Committee on Human Services, Reentry & Rehabilitation.
AN ACT Relating to providing financial relief for working families; amending RCW
82.08.0206; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW
82.08.0206 and 2008 c 325 s 2 are each amended to read as follows:
(1) A working families' tax exemption, in the form of a remittance
of tax due under this chapter and chapter
82.12 RCW, is provided to eligible low-income persons for sales taxes paid under this chapter after January 1, ((
2008))
2022.
(2) For purposes of the exemption in this section, ((an eligible low-income person is))the following definitions apply:
(a) ((An))"Eligible low-income person" means an individual((, or an individual and that individual's spouse if they file a federal joint income tax return;
(b) [An individual who] Who is))who:
(i) Is eligible for((, and is granted,)) the credit provided in Title 26 U.S.C. Sec. 32; and
(((c) [An individual who] Who properly))(ii) Properly files a federal income tax return as a Washington resident, and has been a resident of the state of Washington more than one hundred eighty days of the year for which the exemption is claimed.
(b) "Income" means earned income as defined by Title 26 U.S.C. Sec. 32.
(c) "Individual" means an individual and that individual's spouse if they file a federal joint income tax return.
(3) ((For remittances made in 2009 and 2010, the working families' tax exemption for the prior year is a retail sales tax exemption equal to the greater of five percent of the credit granted as a result of Title 26 U.S.C. Sec. 32 in the most recent year for which data is available or twenty-five dollars. For 2011))(a) For 2023 and thereafter, the working families' tax ((exemption))remittance amount for the prior year is equal to the greater of ten percent of the credit granted as a result of Title 26 U.S.C. Sec. 32 in the most recent year for which data is available or fifty dollars.
(b) If the remittance for an eligible person as calculated in this section is greater than one cent, but less than $50, the remittance amount is $50.
(4) ((For any fiscal period, the working families' tax exemption authorized under this section shall be approved by the legislature in the state omnibus appropriations act before persons may claim the exemption during the fiscal period.
(5))) The working families' tax exemption shall be administered as provided in this subsection.
((
(a) An eligible low-income person claiming an exemption under this section must pay the tax imposed under chapters 82.08, 82.12, and 82.14 RCW in the year for which the exemption is claimed. The eligible low-income person may then apply to the department for the remittance as calculated under subsection (3) of this section.(b) Application shall be made to the department in a form and manner determined by the department, but the department must provide alternative filing methods for applicants who do not have access to electronic filing.
(c) Application for the exemption remittance under this section must be made in the year following the year for which the federal return was filed, but in no case may any remittance be provided for any period before January 1, 2008. The department may use the best available data to process the exemption remittance. The department shall begin accepting applications October 1, 2009.
(d) The department shall review the application and determine eligibility for the working families' tax exemption based on information provided by the applicant and through audit and other administrative records, including, when it deems it necessary, verification through internal revenue service data.
(e) The department shall remit the exempted amounts to eligible low-income persons who submitted applications. Remittances may be made by electronic funds transfer or other means.
(f) The department may, in conjunction with other agencies or organizations, design and implement a public information campaign to inform potentially eligible persons of the existence of and requirements for this exemption.
(g) The department may contact persons who appear to be eligible low-income persons as a result of information received from the internal revenue service under such conditions and requirements as the internal revenue service may by law require.
(6) The provisions of chapter 82.32 RCW apply to the exemption in this section. (7) The department may adopt rules necessary to implement this section.
(8) The department shall limit its costs for the exemption program to the initial start-up costs to implement the program. The state omnibus appropriations act shall specify funding to be used for the ongoing administrative costs of the program. These ongoing administrative costs include, but are not limited to, costs for: The processing of internet and mail applications, verification of application claims, compliance and collections, additional full-time employees at the department's call center, processing warrants, updating printed materials and web information, media advertising, and support and maintenance of computer systems.))
(a) The remittance paid under this section will be paid to eligible filers who apply pursuant to this subsection.
(i) Application must be made to the department in a form and manner determined by the department. If the application process is initially done electronically, the department must provide a paper application upon request. The application must include any information and documentation as required by the department.
(ii) Application for the remittance under this section must be made in the year following the year for which the federal return was filed, but in no case may any remittance be provided for any period before January 1, 2022. The department must use the eligible person's most recent federal tax filing to process the remittance.
(iii) A person may not claim an exemption on behalf of a deceased individual. No individual may claim an exemption under this section for any year in a disallowance period under Title 26 U.S.C. Sec. 32(k)(1) or for any year for which the individual is ineligible to claim the credit in Title 26 U.S.C. Sec. 32 by reason of Title 26 U.S.C. Sec. 32(k)(2).
(b) The department shall protect the privacy and confidentiality of personal data of remittance recipients in accordance with chapter 82.32 RCW. (c) The department shall, in conjunction with other agencies or organizations, design and implement a public information campaign to inform potentially eligible persons of the existence of, and requirements for, this section.
(d) The department must work with the internal revenue service to administer the exemption on an automatic basis as soon as practicable.
(5) Receipt of the remittance under this section may not be used in eligibility determinations for any state income support programs or in making public charge determinations.
(6) The department may adopt rules necessary to implement this section. This includes establishing a date by which applications will be accepted, with the aim of accepting applications as soon as possible. The department may gather necessary data through audit and other administrative records, including verification through internal revenue service data.
(7) The department must review the application and determine eligibility for the working families' tax exemption based on information provided by the applicant and through audit and other administrative records, including, when it deems it necessary, verification through internal revenue service data.
(8) If, upon review of internal revenue service data or other information obtained by the department, it appears that an individual received a remittance that the individual was not entitled to, or received a larger remittance than the individual was entitled to, the department may assess against the individual the overpaid amount. The department may also assess such overpaid amount against the individual's spouse if the remittance in question was based on both spouses filing a joint federal income tax return for the year for which the remittance was claimed.
(a) Interest as provided under RCW 82.32.050 applies to assessments authorized under this subsection (8). Except as otherwise provided in this subsection, penalties may not be assessed on amounts due under this subsection. (b) If an amount due under this subsection is not paid in full by the date due, or the department issues a warrant for the collection of amounts due under this subsection, the department may assess the applicable penalties under RCW 82.32.090. (c) If the department finds by clear, cogent, and convincing evidence that an individual knowingly submitted, caused to be submitted, or consented to the submission of, a fraudulent claim for remittance under this section, the department must assess a penalty of 50 percent of the overpaid amount. This penalty is in addition to any other applicable penalties assessed in accordance with (b) of this subsection (8).
(9) If, within the period allowed for refunds under RCW 82.32.060, the department finds that an individual received a lesser remittance than the individual was entitled to, the department must remit the additional amount due under this section to the individual. (10) Interest does not apply to remittances provided under this act.
(11) For any fiscal period, the working families' tax exemption authorized under this section shall be approved by the legislature in the state omnibus appropriations act before persons may claim the exemption during the fiscal period.
NEW SECTION. Sec. 2. The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act. --- END ---