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SUBSTITUTE HOUSE BILL 2671
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AS RECOMMENDED BY THE CONFERENCE COMMITTEE
Passed Legislature - 1994 1st Special Session
State of Washington 53rd Legislature 1994 1st
Special Session
By
Read first time 02/04/94.
Reducing gross receipts taxes for small
businesses.
AN ACT Relating to
gross receipts tax relief for small businesses; amending RCW 82.32.030 and
70.95E.020; adding a new section to chapter 82.04 RCW; creating a new section;
repealing RCW 82.04.300; 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) In computing the
tax imposed under this chapter, a credit is allowed against the amount of tax
otherwise due under this chapter, as provided in this section. The maximum
credit for a taxpayer for a reporting period is thirty-five dollars multiplied
by the number of months in the reporting period, as determined under RCW
82.32.045.
(2) When the amount of
tax otherwise due under this chapter is equal to or less than the maximum
credit, a credit is allowed equal to the amount of tax otherwise due under this
chapter.
(3) When the amount of
tax otherwise due under this chapter exceeds the maximum credit, a reduced
credit is allowed equal to twice the maximum credit, minus the tax otherwise
due under this chapter, but not less than zero.
Sec. 2. RCW 82.32.030 and 1992 c
206 s 8 are each amended to read as follows:
(1) Except as provided
in subsection (2) of this section, if any person engages in any business or
performs any act upon which a tax is imposed by the preceding chapters, he or
she shall, under such rules as the department of revenue shall prescribe, apply
for and obtain from the department a registration certificate ((upon payment
of fifteen dollars)). Such registration certificate shall be personal and
nontransferable and shall be valid as long as the taxpayer continues in
business and pays the tax accrued to the state. In case business is transacted
at two or more separate places by one taxpayer, a separate registration
certificate for each place at which business is transacted with the public
shall be required((, but, for such additional certificates no additional
payment shall be required)). Each certificate shall be numbered and shall
show the name, residence, and place and character of business of the taxpayer
and such other information as the department of revenue deems necessary and
shall be posted in a conspicuous place at the place of business for which it is
issued. Where a place of business of the taxpayer is changed, the taxpayer
must return to the department the existing certificate, and a new certificate
will be issued for the new place of business ((free of charge)). No
person required to be registered under this section shall engage in any
business taxable hereunder without first being so registered. The department,
by rule, may provide for the issuance of certificates of registration((,
without requiring payment,)) to temporary places of business ((or to
persons who are exempt from tax under RCW 82.04.300)).
(2) Registration under
this section is not required if the following conditions are met:
(a) A person's value of
products, gross proceeds of sales, or gross income of the business ((is
below the tax reporting threshold provided in RCW 82.04.300)), from all
business activities, is less than twelve thousand dollars per year;
(b) The person is not
required to collect or pay to the department of revenue any other tax which the
department is authorized to collect; and
(c) The person is not
otherwise required to obtain a license subject to the master application
procedure provided in chapter 19.02 RCW.
Sec. 3. RCW 70.95E.020 and 1990
c 114 s 12 are each amended to read as follows:
A fee is imposed for
the privilege of generating or potentially generating hazardous waste in the
state. The annual amount of the fee shall be thirty-five dollars upon every
known generator or potential generator doing business in Washington in the
current calendar year or any part thereof. This fee shall be collected by the
department of revenue. A potential generator shall be exempt from the fee
imposed under this section if the ((potential generator is entitled to the
exemption in RCW 82.04.300)) value of products, gross proceeds of sales,
or gross income of the business, from all business activities of the potential
generator, is less than twelve thousand dollars in the current calendar
year. The department shall, subject to appropriation, use the funds collected
from the fees assessed in this subsection to support the activities of the
office of waste reduction as specified in RCW 70.95C.030. The fee imposed
pursuant to this section shall be first due on July 31, 1990, for any generator
or potential generator operating in Washington from March 21, 1990, to December
31, 1990, or any part thereof.
NEW SECTION. Sec.
4. RCW 82.04.300 and 1992 c
206 s 7, 1983 c 3 s 213, 1979 ex.s. c 196 s 4, 1975 1st ex.s. c 278 s 41, 1961
c 293 s 3, & 1961 c 15 s 82.04.300 are each repealed.
NEW SECTION. Sec.
5. This act shall take
effect on July 1, 1994.
NEW
SECTION. Sec. 6. Section 1 of this act
applies to the entire period of reporting periods ending after the effective
date of this act.
