S-0369.1  _______________________________________________

                         SENATE BILL 5051

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators Goings, Winsley, Hale, Oke, Benton, Rasmussen and Costa

Read first time 01/11/1999.  Referred to Committee on Ways & Means.

Exempting "new small businesses" from business and occupation tax.

    AN ACT Relating to business and occupation tax for new small businesses; 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) This chapter does not apply to amounts received by a new small business for the first thirty-six months of operation.

    (2) As used in this section, "new small business" means a business with five or fewer full-time employees that obtained or was required to obtain a registration certificate under RCW 82.32.030 for the first time during the twelve months immediately preceding the date in which an exemption is claimed under this section but does not include:

    (a) A business that has been restructured, reorganized, or transferred to a new owner, unless the majority of the activities to be conducted after restructuring, reorganization, or transferral are significantly different from the activities previously conducted;

    (b) A new branch location or other facility; or

    (c) A business that is substantially similar to a business currently operated, or operated within the past ten years, by the same principals.

NEW SECTION. Sec. 2.  This act takes effect August 1, 1999.

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