Z-188                 _______________________________________________

                                                   SENATE BILL NO. 3888

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators McDermott and McDonald; by Department of Revenue request

Read first time 2/8/85 and referred to Committee on Ways and Means.

AN ACT Relating to excise taxation; and amending RCW 82.04.180 and 82.32.140.

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

        Sec. 1.  Section 82.04.180, chapter 15, Laws of 1961 and RCW 82.04.180 are each amended to read as follows:

          "Successor" means any person ((who, through direct or mesne conveyance, purchases or succeeds to the)) to whom a taxpayer quitting, selling out, exchanging, or disposing of a business((, or portion thereof, or the whole or any part of the stock of goods, wares,)) sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, a major part of the materials, supplies, merchandise, ((or)) inventory, fixtures, or ((any interest therein of a taxpayer quitting, selling out, exchanging, or otherwise disposing of his business)) equipment of the taxpayer.  Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor.

        Sec. 2.  Section 82.32.140, chapter 15, Laws of 1961 as amended by section 82, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.32.140 are each amended to read as follows:

          Whenever any taxpayer quits business, or sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable, and such taxpayer shall, within ten days thereafter, make a return and pay the tax due; and any person who becomes a successor ((to such business))  shall become liable for the full amount of the tax and withhold from the purchase price a sum sufficient to pay any tax due from the taxpayer until such time as the taxpayer shall produce a receipt from the  department of revenue showing payment in full of any tax due or a certificate that no tax is due and, if such tax is not paid by the taxpayer within ten days from the date of such sale, exchange, or disposal, the ((purchaser or)) successor shall become liable for the payment of the full amount of tax, and the payment thereof by such ((purchaser or)) successor shall, to the extent thereof, be deemed a payment upon the purchase price, and if such payment is greater in amount than the purchase price the amount of the difference shall become a debt due such ((purchaser or)) successor from the taxpayer.

          No successor shall be liable for any tax due from the person from whom he has acquired a business or stock of goods if he gives written notice to the  department of revenue of such acquisition and no assessment is issued by the  department of revenue within six months of receipt of such notice against the former operator of the business and a copy thereof mailed to such successor.