H-1861.2  _______________________________________________

                          HOUSE BILL 2027

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Pennington and Sherstad

Read first time 02/22/95.  Referred to Committee on Finance.

Providing retail sales tax refund credit vouchers.

    AN ACT Relating to credit vouchers for retail sales taxes; creating new sections; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The legislature finds that state revenues have exceeded the amount previously forecasted, and that the excess should be returned to the taxpayers of this state.  The legislature further finds that an efficient, fair, and cost-effective method of returning excess tax revenues is to provide a system of credit vouchers that can be used as a credit against future retail sales taxes.

NEW SECTION. Sec. 2.  (1) The department of revenue shall issue retail sales tax credit vouchers as provided in this section.  The vouchers shall be issued in denominations of two dollars, three dollars, and five dollars and shall be printed in sheets that contain one voucher of each denomination, for a total of ten dollars worth of vouchers per sheet.  The voucher sheets shall be perforated so that the vouchers may be separated by the user.

    (2) The department shall mail one sheet of vouchers to each person who filed a tax return on form 1040, 1040A, or 1040EZ with the federal internal revenue service for 1993 taxes, and used a Washington mailing address on the return.  For joint returns, the voucher sheet shall be mailed to the first person named on the return.  Married persons filing separate returns shall receive separate voucher sheets.

    (3) Vouchers issued under this section are transferrable and may be used by the bearer as payment for any tax liability under chapters 82.08 and 82.14 RCW.  A voucher may be used to pay tax for any purchase or combination of purchases that are made as part of a single transaction.  However, if the face value of a voucher exceeds the amount of tax due on the transaction, the excess shall not be refunded.

    (4) A seller accepting a voucher may deduct the face value of the voucher from the amount of tax to be paid to the department.  Immediately after accepting a voucher, the seller shall mark it canceled.  The seller shall deliver or account for canceled vouchers to the department in a manner specified by the department.  The department shall deduct the full amount of the face value of the voucher from state general fund revenues, and shall not reduce the distribution of revenue to other state or local funds.

    (5) Vouchers issued under this section shall be valid only for purchases made on or after July 1, 1995, through June 30, 1997.

    (6) This section shall expire July 1, 1997.

NEW SECTION. Sec. 3.  This act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the section expired in this act or under any rule or order adopted under that section nor as affecting any proceeding instituted under that section.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

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