S-4594               _______________________________________________

                                                   SENATE BILL NO. 6707

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Zimmerman and Smith

Read first time 2/2/88 and referred to Committee on Ways & Means.

AN ACT Relating to exemption from sales and use taxes; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales to residents of the state of Washington who pay income tax to another state on wages earned in that state.  To qualify for this exemption, the purchaser shall present at the time of sale a permit issued by the department of revenue annually which shall be subject to the same conditions as permits under RCW 82.08.0273.  Persons applying for permits under this section shall provide proof of employment in another state.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.12 RCW to read as follows:

          The provisions of this chapter shall not apply in respect to the use of any tangible personal property, the sale of which was exempt from taxation under section 1 of this act.