SENATE RESOLUTION

                         1991-8687

By Senators von Reichbauer and McDonald

     WHEREAS, Businesses engaged in the marketing of securities, insurance, and financial advice, are an integral part of the economy of the State of Washington; and

     WHEREAS, The marketing of these financial products is often conducted by independent contractors not employed by specified companies; and

     WHEREAS, Independent contractors that are licensed to market insurance and securities products are often required by law to conduct transactions through another licensee that is also an independent contractor; and

     WHEREAS, Both independent contractor licensees often pay B & O tax on the same receipts generated out of a single transaction; and

     WHEREAS, When both licensees pay B & O tax on a single transaction, this results in a portion of the receipts from a transaction being taxed twice; and

     WHEREAS, The double taxation that can occur in securities and insurance transactions has a major impact on the ability of these businesses to compete successfully both on an interstate and intrastate basis; and

     WHEREAS, The issue of the double B & O tax in securities and insurance transactions needs to be studied to determine appropriate solutions;

     NOW, THEREFORE, BE IT RESOLVED, That a Senate select committee be established to study the taxation of insurance and securities transactions; and

     BE IT FURTHER RESOLVED, That the select committee created herein consist of three members from the Ways and Means and three members of the Financial Institutions and Insurance committees; and

     BE IT FURTHER RESOLVED, That the Senate Select Committee on the Taxation of Securities and Insurance Transactions study the issues raised by this resolution and report to the legislature by January 1, 1992, its findings and recommendations including proposed legislation.

I, Gordon A. Golob, Secretary of the Senate,

do hereby certify that this is a true and

correct copy of Senate Resolution 1991-8687

adopted by the Senate April 28, 1991.

GORDON A. GOLOB

Secretary of the Senate