6750-S

S-5097.1 _______________________________________________

SUBSTITUTE SENATE BILL 6750

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State of Washington 54th Legislature 1996 Regular Session

By Senate Committee on Labor, Commerce & Trade (originally sponsored by Senators Heavey, Newhouse, Haugen, Oke, Hochstatter, Schow, Rasmussen and Johnson)

Read first time 02/02/96.

AN ACT Relating to excise taxation of management entities providing services for casino gambling activity in Washington state; amending RCW 82.04.290; and adding a new section to chapter 82.04 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:

"Casino management services" means management services provided by a management entity certified by the state of Washington for casino gambling activity including financing, development, or operation of a facility capable of conducting gambling activity using thirty or more gaming stations and allowing wagers of two hundred fifty dollars or more.

Sec. 2. RCW 82.04.290 and 1996 c 1 s 2 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 2.0 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 1.6 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 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.

(5) Upon every person engaging within this state in casino management services under section 1 of this act; 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 two percent.