HOUSE BILL REPORT

ESB 5402

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed House - Amended:

March 6, 2020

Title: An act relating to improving tax and licensing laws administered by the department of revenue, but not including changes to tax laws that are estimated to affect state or local tax collections as reflected in any fiscal note prepared and approved under the process established in chapter 43.88A RCW.

Brief Description: Improving tax and licensing laws administered by the department of revenue, but not including changes to tax laws that are estimated to affect state or local tax collections as reflected in any fiscal note prepared and approved under the process established in chapter 43.88A RCW.

Sponsors: Senators Schoesler and Rolfes.

Brief History:

Committee Activity:

Finance: 2/25/20, 2/27/20, 3/2/20 [DPA].

Floor Activity:

Passed House - Amended: 3/6/20, 97-0.

Brief Summary of Engrossed Bill

(As Amended by House)

  • Makes technical clarifications, updates, and consolidations in the state tax and licensing codes.

HOUSE COMMITTEE ON FINANCE

Majority Report: Do pass as amended. Signed by 12 members: Representatives Tarleton, Chair; Walen, Vice Chair; Orcutt, Ranking Minority Member; Young, Assistant Ranking Minority Member; Chapman, Frame, Macri, Orwall, Springer, Stokesbary, Vick and Wylie.

Staff: Rachelle Harris (786-7137).

Background:

Periodically, technical revisions to the Revised Code of Washington (RCW) may be required for multiple reasons. Sections of the RCW may be repealed, recodified, or amended in a way changing their internal or statutory numbering or terminology. The language in these sections, as well as references to these sections in other provisions of the RCW, then becomes incorrect. Statutes may become obsolete with the passage of time, evolution of technology, improvement of administrative processes, or adoption of state or federal legislation. Administrative agencies occasionally suggest statutory revisions for the purpose of increasing clarity or improving administration.

Summary of Amended Bill:

Updating Tax Preference Performance Statements.

Updates are made to tax preference performance statements for a number of tax preferences by clarifying tax preference standards and replacing references to the annual tax surveys and reports with consolidated annual tax performance reports.

Clarifying and Consolidating Provisions.

The following updates are made in order to provide clarity and consolidate various provisions:

Technical Corrections.

The following technical corrections are made:

Restoring Statutory Definitions.

The following statutory definitions are provided:

Reduces Administrative Burden on Claimants.

The following administrative amendments are made:

Appropriation: None.

Fiscal Note: Preliminary fiscal note available.

Effective Date of Amended Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed, except for section 37, relating to allowable leasehold excise tax credits, which takes effect January 1, 2022.

Staff Summary of Public Testimony:

(In support) The bill makes technical corrections to tax laws and the intent is to correct errors and simplify the statutes wherever possible, without having any substantive effect on tax policy or revenue.

(Opposed) None.

Persons Testifying: Gil Brewer, Department of Revenue.

Persons Signed In To Testify But Not Testifying: None.