S-4744.3
SENATE BILL 5980
State of Washington | 67th Legislature | 2022 Regular Session |
BySenators Carlyle, Randall, Hunt, Kuderer, and Mullet
Read first time 02/22/22.Referred to Committee on Ways & Means.
AN ACT Relating to providing substantial and permanent tax relief for small businesses to mitigate structural deficiencies in Washington's business and occupation tax and lessen long-term negative economic consequences of the pandemic that have disproportionately impacted small businesses; amending RCW
82.04.4451; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW
82.04.4451 and 2010 1st sp.s. c 23 s 1102 are each amended to read as follows:
(1) In computing the tax imposed under this chapter, a credit is allowed against the amount of tax otherwise due under this chapter, as provided in this section. Except for taxpayers that report at least ((
fifty))
50 percent of their taxable amount under RCW
82.04.255,
82.04.290(2)(a), and
82.04.285, the maximum credit for a taxpayer for a reporting period is ((
thirty-five dollars))
$50.415 multiplied by the number of months in the reporting period, as determined under RCW
82.32.045. For a taxpayer that reports at least ((
fifty))
50 percent of its taxable amount under RCW
82.04.255,
82.04.290(2)(a), and
82.04.285, the maximum credit for a reporting period is ((
seventy dollars))
$156.25 multiplied by the number of months in the reporting period, as determined under RCW
82.32.045.
(2) When the amount of tax otherwise due under this chapter is equal to or less than the maximum credit, a credit is allowed equal to the amount of tax otherwise due under this chapter.
(3) When the amount of tax otherwise due under this chapter exceeds the maximum credit, a reduced credit is allowed equal to twice the maximum credit, minus the tax otherwise due under this chapter, but not less than zero.
(4) The department may prepare a tax credit table consisting of tax ranges using increments of no more than five dollars and a corresponding tax credit to be applied to those tax ranges. The table shall be prepared in such a manner that no taxpayer will owe a greater amount of tax by using the table than would be owed by performing the calculation under subsections (1) through (3) of this section. A table prepared by the department under this subsection must be used by all taxpayers in taking the credit provided in this section.
NEW SECTION. Sec. 2. This act applies to reporting periods beginning on or after July 1, 2022.
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