1023 AMS ROAC S3457.1

EHB 1023 - S AMD - 459

By Senators Roach, Anderson, A., Palmer, Strannigan, McDonald, Morton, Hale, Johnson, West, Hochstatter, Cantu, Oke, Wood, Finkbeiner

    On page . . ., after line . . ., following Sec. 3, insert the following:

    "NEW SECTION. Sec. ...  The legislature finds that property owners often hire property management companies to manage their real property.  Frequently, the property management companies also manage the personnel who perform the necessary services at the property location.  The property management company is merely acting as a conduit for the property owner's payment to the personnel at the property site.

    Section . . . of this act is intended to clarify that the business and occupation tax does not apply to amounts received by a property management company and paid to on-site personnel.  Section . . . of this act is not intended to modify the taxation of amounts received by a property management company for purposes other than payment to on-site personnel.

NEW SECTION. Sec. ...  A new section is added to chapter 82.04 RCW to read as follows:

    This chapter shall not apply to amounts received by a property management company from the owner of a property for gross wages and benefits paid to or on behalf of on-site personnel if the on-site personnel are paid through use of trust accounts, dedicated bank accounts, or paymaster accounts established for this purpose by the property management company.  As used in this section, "on-site personnel" means a person who meets all of the following conditions:  (1) The person works at the owner's property; (2) the person's duties include leasing property units, maintaining the property, collecting rents, or similar activities; and (3) pursuant to a written property management agreement, the person's compensation is the obligation of the property owner and not the property manager."

    Renumber the remaining sections consecutively and correct any internal references accordingly.

EHB 1023 - S AMD - 459

By Senators Roach, Anderson, A., Palmer, Strannigan, McDonald, Morton, Hale, Johnson, West, Hochstatter, Cantu, Oke, Wood, Finkbeiner

    On page . . ., after line . . . of the title, after ". . ." insert ". . ."

EFFECT:  Clarifies that the business and occupation tax does not apply to amounts received by a property management company and paid for on-site personnel. 

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