S-1506               _______________________________________________

                                                   SENATE BILL NO. 4258

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Fleming, Goltz, Hansen and Bauer

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

AN ACT Relating to business and occupation taxation; and amending RCW 82.04.270.

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

        Sec. 1.  Section 82.04.270, chapter 15, Laws of 1961 as last amended by section 4, chapter 172, Laws of 1981 and RCW 82.04.270 are each amended to read as follows:

          (1) Upon every person except persons taxable under subsections (1) or (8) of RCW 82.04.260 engaging within this state in the business of making sales at wholesale; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of forty-four one-hundredths of one percent.

          (2) The tax imposed by this section is levied and shall be collected from every person engaged in the business of distributing in this state articles of tangible personal property, owned by them from their own warehouse or other central location in this state to two or more of their own retail stores or outlets, where no change of title or ownership occurs, the intent hereof being to impose a tax equal to the wholesaler's tax upon persons performing functions essentially comparable to those of a wholesaler, but not actually making sales:  PROVIDED, That the tax designated in this section may not be assessed twice to the same person for the same article.  The amount of the tax as to such persons shall be computed by multiplying forty-four one-hundredths of one percent of the value of the article so distributed as of the time of such distribution:  PROVIDED, That persons engaged in the activities described in this subsection shall not be liable for the tax imposed if by proper invoice it can be shown that they have purchased such property from a wholesaler who has paid a business and occupation tax to the state upon the same articles.  This proviso shall not apply to purchases from manufacturers as defined in RCW 82.04.110.  The department of revenue shall prescribe uniform and equitable rules for the purpose of ascertaining such value, which value shall correspond as nearly as possible to the gross proceeds from sales at wholesale in this state of similar articles of like quality and character, and in similar quantities by other taxpayers:  PROVIDED FURTHER, That delivery trucks or vans will not under the purposes of this section be considered to be retail stores or outlets.

(3) For the purposes of this section, "sale at wholesale" and "wholesale sale" includes loans made for commercial, agricultural, or investment purposes by a state or national bank, a state or federal savings bank, a savings and loan association, entities subject to Title 30 or 31 RCW, and corporations which are more than eighty percent owned by or own more than eighty percent of any such institutions.