H-4171              _______________________________________________

                                                   HOUSE BILL NO. 1913

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Sommers, Rust and Appelwick

Read first time 1/24/86 and referred to Committee on Ways & Means.

AN ACT Relating to the business and occupation taxation of interest on qualified scholarship funding bonds; and adding a new section to chapter 82.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

          Effective January 1, 1982, in computing tax there may be deducted from the measure of tax amounts derived by persons from interest received from the issuance of qualified scholarship funding bonds.

          For purposes of this section, "qualified scholarship funding bonds" means obligations issued by a corporation which:

          (1) Is a nonprofit corporation established and operated exclusively for the purpose of acquiring student loan notes incurred under the federal higher education act of 1965; and

          (2) Is organized at the request of the state and required by its corporate charter and bylaws to devote any income, after payment of expenses, debt service, and the creation of reserves for the same, to the purchase of additional student loan notes.