HB 1884 - DIGEST

(DIGEST AS ENACTED)

     Exempts nonprofit organizations that provide credit and debt education, counseling, and negotiation services from the business and occupation tax.

VETO MESSAGE ON HB 1884

                   May 15, 1993

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval as to section 2, House Bill No. 1884, entitled:

"AN ACT Relating to nonprofit organizations providing credit services,"

     House Bill No. 1884 provides a B & O tax exemption for certain nonprofit corporations providing credit services.  Section 2 of the bill contains an inappropriate and potentially costly retroactivity clause.  Applying this exemption retroactively is unfair to taxpayers who have complied with the existing law by paying their taxes accurately and in a timely manner.  Further, it encourages taxpayers to delay paying lawful taxes in the hope of future legislative exemption. I have, therefore, vetoed section 2 of House Bill No. 1884.

     With the exception of section 2, House Bill No. 1884 is approved.

                   Respectfully submitted,

                   Mike Lowry

                   Governor