H-4292.1          _______________________________________________

                                  HOUSE BILL 2774

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State of Washington              54th Legislature             1996 Regular Session

By Representatives Casada, Pelesky, Hickel, Mitchell, Talcott, Huff, Carrell, B. Thomas, Silver and Thompson

Read first time 01/19/96.  Referred to Committee on Finance.

Providing that imprinting advertising on sporting goods is not manufacturing for purposes of the B&O tax.

     AN ACT Relating to excise taxation of imprinting advertising on sporting goods; amending RCW 82.04.120; and providing an effective date.

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

     Sec. 1.  RCW 82.04.120 and 1989 c 302 s 201 are each amended to read as follows:

(1) "To manufacture" embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and shall include the production or fabrication of special made or custom made articles.

(2) "To manufacture" shall not include:

(a) Conditioning of seed for use in planting or activities which consist of cutting, grading, or ice glazing seafood which has been cooked, frozen or canned outside this state.

(b) Printing, stamping, or otherwise applying logos or advertising messages on sporting goods.

NEW SECTION. Sec. 2.  This act shall take effect July 1, 1996.

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