2030 AMH SANT MATT 72

HB 2030 - H AMD TO H AMD (H-2526.1) 0324 FAILED 3-19-03

By Representative Santos

   On page 9, after line 31, insert the following:

   "Sec. 15. RCW 35.21.710 and 2002 c 179 s 1 are each amended to read as follows:

   (1) Any city which imposes a license fee or tax upon business activities consisting of the making of retail sales of tangible personal property which are measured by gross receipts or gross income from such sales, shall impose such tax at a single uniform rate upon all such business activities.

   (2)(a) Except as provided under subsection (c) of this subsection, the taxing authority granted to cities for taxes upon business activities measured by gross receipts or gross income from sales shall not exceed a rate of .0020; except that any city with an adopted ordinance at a higher rate, as of January 1, 1982 shall be limited to a maximum increase of ten percent of the January 1982 rate, not to exceed an annual incremental increase of two percent of current rate((: PROVIDED, That)).

   (b) Any adopted ordinance which classifies according to different types of business or services shall be subject to both the ten percent and the two percent annual incremental increase limitation on each tax rate((: PROVIDED FURTHER, That)).

   (c)(i) A city that has imposed a tax under this subsection (2) as of the effective date of section 13 of this act may increase the rate or rates of tax pursuant to this subsection (c).

   (ii) A city that incurs a reduction in municipal business and occupation tax revenue due to the implementation of the apportionment provisions under section 13 of this act may adjust its rate or rates to the extent necessary to offset any revenue losses. Such rate adjustments may not take effect before January 1, 2008.

   (3) All surtaxes on business and occupation classifications in effect as of January 1, 1982, shall expire no later than December 31, 1982, or by expiration date established by local ordinance.

   (4) Cities which impose a license fee or tax upon business activities consisting of the making of retail sales of tangible personal property which are measured by gross receipts or gross income from such sales shall be required to submit an annual report to the state auditor identifying the rate established and the revenues received from each fee or tax.

   (5) This section shall not apply to any business activities subject to the tax imposed by chapter 82.16 RCW.

   (6) For purposes of this section, the providing to consumers of competitive telephone service, as defined in RCW 82.04.065, or the providing of payphone service, shall be subject to tax at the same rate as business activities consisting of the making of retail sales of tangible personal property. As used in this section, "payphone service" means making telephone service available to the public on a fee-per-call basis, independent of any other commercial transaction, for the purpose of making telephone calls, when the telephone can only be activated by inserting coins, calling collect, using a calling card or credit card, or dialing a toll-free number, and the provider of the service owns or leases the telephone equipment but does not own the telephone line providing the service to that equipment and has no affiliation with the owner of the telephone line."

   Renumber remaining sections consecutively and correct the title

EFFECT: Allows cities that have enacted business and occupation taxes prior to the implementation of the apportionment provisions to be able to raise rates to offset revenue losses.