AN ACT
Relating to reducing business and occupation tax rates; amending RCW 82.04.255,
82.04.290, and 82.62.030; adding a new section to chapter 82.04 RCW; providing
an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.04.255 and 1993 sp.s. c 25 s 202 are each amended to read as follows:
Upon
every person engaging within the state as a real estate broker; as to such
persons, the amount of the tax with respect to such business shall be equal to
the gross income of the business, multiplied by the rate of ((2.0)) 1.75
percent.
The
measure of the tax on real estate commissions earned by the real estate broker
shall be the gross commission earned by the particular real estate brokerage
office including that portion of the commission paid to salesmen or associate
brokers in the same office on a particular transaction: PROVIDED, HOWEVER,
That where a real estate commission is divided between an originating brokerage
office and a cooperating brokerage office on a particular transaction, each
brokerage office shall pay the tax only upon their respective shares of said
commission: AND PROVIDED FURTHER, That where the brokerage office has paid the
tax as provided herein, salesmen or associate brokers within the same brokerage
office shall not be required to pay a similar tax upon the same transaction.
Sec.
2. RCW
82.04.290 and 1995 c 229 s 3 are each amended to read as follows:
(1)
Upon every person engaging within this state in the business of providing
selected business services other than or in addition to those enumerated in RCW
82.04.250 or 82.04.270; as to such persons the amount of tax on account of such
activities shall be equal to the gross income of the business multiplied by the
rate of ((2.5)) 2.0 percent.
(2)
Upon every person engaging within this state in banking, loan, security,
investment management, investment advisory, or other financial businesses,
other than or in addition to those enumerated in subsection (3) of this
section; as to such persons, the amount of the tax with respect to such
business shall be equal to the gross income of the business, multiplied by the
rate of ((1.70)) 1.6 percent.
(3)
Upon every person engaging within this state in the business of providing
international investment management services, as to such persons, the amount of
tax with respect to such business shall be equal to the gross income or gross
proceeds of sales of the business multiplied by a rate of 0.275 percent.
(4)
Upon every person engaging within this state in any business activity other than
or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250,
82.04.255, 82.04.260, 82.04.270, and 82.04.280, and subsections (1), (2), and
(3) of this section; as to such persons the amount of tax on account of such
activities shall be equal to the gross income of the business multiplied by the
rate of ((2.0)) 1.75 percent.
This
section includes, among others, and without limiting the scope hereof (whether
or not title to materials used in the performance of such business passes to
another by accession, confusion or other than by outright sale), persons
engaged in the business of rendering any type of service which does not
constitute a "sale at retail" or a "sale at wholesale."
The value of advertising, demonstration, and promotional supplies and materials
furnished to an agent by his principal or supplier to be used for
informational, educational and promotional purposes shall not be considered a
part of the agent's remuneration or commission and shall not be subject to
taxation under this section.
Sec.
3. RCW
82.62.030 and 1986 c 116 s 17 are each amended to read as follows:
(1) A
person shall be allowed a credit against the tax due under chapter 82.04 RCW ((of
an amount equal to)) as provided in this section. For an application
approved before January 1, 1996, the credit shall equal one thousand
dollars for each qualified employment position directly created in an eligible
business project. For an application approved on or after January 1, 1996,
the credit shall equal two thousand dollars for each qualified employment
position directly created in an eligible business project.
(2)
The department shall keep a running total of all credits granted under this
chapter during each fiscal biennium. The department shall not allow any
credits which would cause the tabulation for a biennium to exceed fifteen
million dollars. If all or part of an application for credit is disallowed
under this subsection, the disallowed portion shall be carried over for
approval the next biennium. However, the applicant's carryover into the next
biennium is only permitted if the tabulation for the next biennium does not
exceed fifteen million dollars as of the date on which the department has
disallowed the application.
(3) No
recipient is eligible for tax credits in excess of three hundred thousand
dollars.
(4) No
recipient may use the tax credits to decertify a union or to displace existing
jobs in any community in the state.
(5) No
recipient may receive a tax credit on taxes which have not been paid during the
taxable year.
NEW
SECTION. Sec. 4. A new
section is added to chapter 82.04 RCW to read as follows:
(1)
There may be credited against the tax imposed by this chapter, the value of
state-approved, employer-provided or sponsored job training services designed
to enhance the job-related performance of employees, for those businesses
eligible for a tax deferral under chapter 82.60 RCW.
(2)
The value of the state-approved, job training services provided by the employer
to the employee, without charge, shall be determined by the allocation of the
cost method using generally accepted accounting standards.
(3) The
credit allowed under this section shall be limited to an amount equal to twenty
percent of the value of the state-approved, job training services determined
under subsection (2) of this section. The total credits allowed under this
section for a business shall not exceed five thousand dollars per calendar
year.
(4)
Prior to claiming the credit under this section, the business must obtain
approval of the proposed job training service from the employment security
department. The employer's request for approval must include a description of
the proposed job training service, how the job training will enhance the
employee's performance, and the cost of the proposed job training.
(5)
This section only applies to training in respect to eligible business projects
for which an application is approved on or after October 1, 1995.
NEW SECTION. Sec. 5. 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 July 1, 1995.
