S-263                 _______________________________________________

                                                   SENATE BILL NO. 5297

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State of Washington                              50th Legislature                              1987 Regular Session

By Senators Hayner, Barr and Zimmerman

Read first time 1/22/87 and referred to Committee on Ways & Means.

AN ACT Relating to the business and occupation tax; adding a new section to chapter 82.04 RCW; and declaring an emergency.

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:

          This chapter shall not apply to persons first commencing business within the boundaries of Washington state subsequent to January 1, 1987, who are engaged in manufacturing or research and development activities for those years, if any, when such activities are not making a profit as determined by the incurrence of tax liability under the federal income tax:  PROVIDED, That this exemption shall apply only during the first three calendar years following the commencement of business in Washington state.

NEW SECTION. Sec. 2.     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.