H-873                _______________________________________________

                                                    HOUSE BILL NO. 423

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Smitherman, Tilly, J. Williams, Vander Stoep, Zellinsky, Holland, Schmidt, Hastings, Prince, Chandler, Betrozoff, Ballard, Addison, Bond, May, Fuhrman, Dobbs, Patrick, Van Luven, Long, Lundquist, P. King, Silver, Todd, van Dyke, Isaacson and Thomas

Read first time 2/1/85 and referred to Committee on Ways & Means.

AN ACT Relating to the recovery or refund of taxes; and amending RCW 82.32.060, 84.69.100, and 84.69.140.

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

        Sec. 1.  Section 82.32.060, chapter 15, Laws of 1961 as last amended by section 4, chapter 95, Laws of 1979 ex. sess. and RCW 82.32.060 are each amended to read as follows:

          If, upon receipt of an application by a taxpayer for a refund or for an audit of his records, or upon an examination of the returns or records of any taxpayer, it is determined by the department that within the statutory period for assessment of taxes prescribed by RCW 82.32.050 a tax has been paid in excess of that properly due, the excess amount paid within such period shall be credited to the taxpayer's account or shall be refunded to the taxpayer, at his option.  No refund or credit shall be made for taxes paid more than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.

          Notwithstanding the foregoing limitations there shall be refunded or credited to taxpayers engaged in the performance of United States government contracts or subcontracts the amount of any tax paid, measured by that portion of the amounts received from the United States, which taxpayer is required by contract or applicable federal statute to refund or credit to the United States, if claim for such refund is filed by the taxpayer with the department within one year of the date that the amount of the refund or credit due to the United States is finally determined and filed within four years of the date on which the tax was paid:  PROVIDED, That no interest shall be allowed on such refund.

          Any such refunds shall be made by means of vouchers approved by the department and by the issuance of state warrants drawn upon and payable from such funds as the legislature may provide.

          Any judgment for which a recovery is granted by any court of competent jurisdiction, not appealed from, for tax, penalties, and interest which were paid by the taxpayer, and costs, in a suit by any taxpayer shall be paid in like manner, upon the filing with the department of a certified copy of the order or judgment of the court.  Except as to the credits in computing tax authorized by RCW 82.04.435, interest at the rate of ((three)) nine percent per annum shall be allowed by the department and by any court on the amount of any refund or recovery allowed to a taxpayer for taxes, penalties, or interest paid by him after May 1, 1949, and interest at the same rate shall be allowed on any judgment recovered by a taxpayer for taxes, penalties, or interest paid after such date.

        Sec. 2.  Section 84.69.100, chapter 15, Laws of 1961 as amended by section 4, chapter 5, Laws of 1973 2nd ex. sess. and RCW 84.69.100 are each amended to read as follows:

          Refunds of taxes made pursuant to RCW 84.69.010 through 84.69.090 shall include interest at the rate of ((five)) twelve percent per annum from the date of collection of the portion refundable ((or from the date of claim for refund, whichever is later:  PROVIDED, That refunds on a state, county, or district wide basis during 1973 shall not commence to accrue interest until six months following the date of the final order of the court.  No written protest by individual taxpayers need to be filed to receive a refund pursuant to this 1973 amendatory act)).

        Sec. 3.  Section 84.69.140, chapter 15, Laws of 1961 and RCW 84.69.140 are each amended to read as follows:

          In any action in which recovery of taxes is allowed by the court, the plaintiff is entitled to interest on the taxes for which recovery is allowed at a rate of ((five)) twelve percent per annum from the date of collection of the tax to the date of entry of judgment, and such accrued interest shall be included in the judgment.  This section shall not apply to taxes paid before June 12, 1957.