S-1559               _______________________________________________

 

                                                   SENATE BILL NO. 4296

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Senators Lee, Johnson, Benitz, Patterson, Saling, Barr and Bailey

 

 

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

 

 


AN ACT Relating to the business and occupation tax; amending RCW 82.04.220; creating new sections; repealing RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, 82.04.280, 82.04.290, 82.04.2901, 82.04.2902, 82.04.2903, and 82.04.2904; providing an effective date; and declaring an emergency.

 

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

 

          NEW SECTION.  Sec. 1.     The Washington state tax burden is disproportionally high on new and small businesses.  The business and occupation tax on gross proceeds creates inequities between high profit margin and low profit margin businesses, and places many businesses at a competitive disadvantage with other states.  It is the intent of the legislature to develop a more equitable measure for the business and occupation tax.

 

          NEW SECTION.  Sec. 2.     There is created a nine member joint committee as follows:

          (a) The president of the senate shall appoint two members from the senate ways and means committee, and two members from the senate commerce and labor committee.  One member appointed from each committee shall be from the majority caucus, and one shall be from the minority caucus.

          (b) The speaker of the house of representatives shall appoint two members from the house ways and means committee, and two members from the house commerce and labor committee.  One member appointed from each committee shall be from the majority caucus, and one shall be from the minority caucus.

          (c) The director of commerce and economic development shall serve as chairman of the committee.

 

          NEW SECTION.  Sec. 3.     The joint committee established under section 2 of this act shall propose a more equitable measure for the state business and occupation tax.  In developing its proposal, the committee shall consider Washington state's tax burden as compared to competing states and its effect on job creation in this state.  The proposal may be revenue neutral or result in a revenue reduction but shall not result in a net increase in state revenue.  The committee shall report to the legislature by January 6, 1986.

 

        Sec. 4.  Section 82.04.220, chapter 15, Laws of 1961 and RCW 82.04.220 are each amended to read as follows:

          There is levied and shall be collected from every person a tax for the act or privilege of engaging in business activities.  ((Such tax shall be measured by the application of rates against value of products, gross proceeds of sales, or gross income of the business, as the case may be.))

 

          NEW SECTION.  Sec. 5.  The following acts or parts of acts are each repealed:

                   (1) Section 82.04.230, chapter 15, Laws of 1961, section 7, chapter 149, Laws of 1967 ex. sess., section 33, chapter 262, Laws of 1969 ex. sess., section 2, chapter 281, Laws of 1971 ex. sess. and RCW 82.04.230;

          (2) Section 82.04.240, chapter 15, Laws of 1961, section 5, chapter 173, Laws of 1965 ex. sess., section 8, chapter 149, Laws of 1967 ex. sess., section 34, chapter 262, Laws of 1969 ex. sess., section 3, chapter 281, Laws of 1971 ex. sess., section 1, chapter 196, Laws of 1979 ex. sess., section 1, chapter 172, Laws of 1981 and RCW 82.04.240;

          (3) Section 82.04.250, chapter 15, Laws of 1961, section 9, chapter 149, Laws of 1967 ex. sess., section 35, chapter 262, Laws of 1969 ex. sess., section 2, chapter 186, Laws of 1971 ex. sess., section 4, chapter 281, Laws of 1971 ex. sess., section 2, chapter 172, Laws of 1981 and RCW 82.04.250;

          (4) Section 3, chapter 65, Laws of 1970 ex. sess., section 1, chapter 9, Laws of 1983, section 1, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.255;

          (5) Section 5, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.260;

          (6) Section 82.04.270, chapter 15, Laws of 1961, section 11, chapter 149, Laws of 1967 ex. sess., section 37, chapter 262, Laws of 1969 ex. sess., section 4, chapter 186, Laws of 1971 ex. sess., section 6, chapter 281, Laws of 1971 ex. sess., section 4, chapter 172, Laws of 1981 and RCW 82.04.270;

          (7) Section 2, chapter 8, Laws of 1970 ex. sess., section 7, chapter 281, Laws of 1971 ex. sess., section 5, chapter 299, Laws of 1971 ex. sess., section 3, chapter 90, Laws of 1975 1st ex. sess., section 1, chapter 132, Laws of 1983 and RCW 82.04.280;

          (8) Section 82.04.290, chapter 15, Laws of 1961, section 2, chapter 28, Laws of 1963 ex. sess., section 14, chapter 149, Laws of 1967 ex. sess., section 39, chapter 262, Laws of 1969 ex. sess., section 4, chapter 65, Laws of 1970 ex. sess., section 8, chapter 281, Laws of 1971 ex. sess., section 212, chapter 3, Laws of 1983, section 2, chapter 9, Laws of 1983, section 2, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.290;

          (9) Section 3, chapter 130, Laws of 1975-'76 2nd ex. sess., section 1, chapter 324, Laws of 1977 ex. sess., section 2, chapter 35, Laws of 1982 1st ex. sess., section 4, chapter 9, Laws of 1983, section 4, chapter 3, Laws of 1983 2nd ex. sess., section 61, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.2901;

          (10) Section 3, chapter 7, Laws of 1983 and RCW 82.04.2902;

          (11) Section 5, chapter 9, Laws of 1983 and RCW 82.04.2903; and

          (12) Section 3, chapter 9, Laws of 1983, section 3, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.2904.

 

          NEW SECTION.  Sec. 6.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately, except that sections 4 and 5 of this act shall take effect on July 1, 1987.