H-4198.1  _______________________________________________

 

                          HOUSE BILL 2938

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By Representatives Barlean, DeBolt, Ericksen and Koster

 

Read first time 01/24/2000.  Referred to Committee on Finance.

Providing excise tax relief for food processors.


    AN ACT Relating to excise tax relief for food processors; adding a new section to chapter 82.04 RCW; and providing an effective date.

 

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:

    (1) A credit is allowed against the tax imposed under this chapter, equal to 0.138 percent of the difference between a taxpayer's food processing wages and the taxpayer's adjusted food processing wages. Credits under this section are limited to the amount of tax imposed by this chapter.  Any unused excess credit in a reporting period may be carried forward to future reporting periods for a maximum of one year.

    (2) The definitions in this subsection apply for the purposes of this section.

    (a) "Adjusted food processing wages" means the amount of wages a taxpayer would have paid to employees engaged in activities subject to tax under RCW 82.04.260 (1), (2), and (4) if such employees had been paid an average annual wage computed under this section.  This average annual wage shall be computed in the same manner and at the same time as the average annual wage defined in RCW 50.04.355, using information from taxpayers in eastern Washington reporting taxes under RCW 82.04.260 (1), (2), and (4).

    (b) "Food processing wages" means wages actually paid for activities subject to tax under RCW 82.04.260 (1), (2), and (4).

    (3) The department shall inform taxpayers paying taxes under 82.04.260 (1), (2), and (4) of the average annual wage computed under subsection (2)(a) of this section.

 

    NEW SECTION.  Sec. 2.  This act takes effect July 1, 2000.

 


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