AN ACT Relating to tax
reporting and registration requirements of small businesses with no tax
liability; amending RCW 82.32.045 and 82.16.040; reenacting and amending RCW
82.32.030; creating a new section; and providing an effective date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec.
1. The legislature finds
that small businesses play a vital role in the state's current and future
economic health. The legislature also finds that the state's excise tax
reporting and registration requirements are unduly burdensome for small
businesses incurring little or no tax liability. The legislature recognizes
the costs associated in complying with the reporting and registration requirements
that are hindering the further development of those businesses. For these
reasons the legislature with this act simplifies the tax reporting and
registration requirements for certain small businesses.
Sec. 2. RCW 82.32.030 and 1994
sp.s. c 7 s 446 and 1994 sp.s. c 2 s 2 are each reenacted and amended to read
as follows:
(1) Except as provided
in subsection (2) of this section, if any person engages in any business or
performs any act upon which a tax is imposed by the preceding chapters, he or
she shall, under such rules as the department of revenue shall prescribe, apply
for and obtain from the department a registration certificate. Such
registration certificate shall be personal and nontransferable and shall be
valid as long as the taxpayer continues in business and pays the tax accrued to
the state. In case business is transacted at two or more separate places by
one taxpayer, a separate registration certificate for each place at which
business is transacted with the public shall be required. Each certificate
shall be numbered and shall show the name, residence, and place and character
of business of the taxpayer and such other information as the department of
revenue deems necessary and shall be posted in a conspicuous place at the place
of business for which it is issued. Where a place of business of the taxpayer
is changed, the taxpayer must return to the department the existing
certificate, and a new certificate will be issued for the new place of
business. No person required to be registered under this section shall engage
in any business taxable hereunder without first being so registered. The
department, by rule, may provide for the issuance of certificates of
registration to temporary places of business.
(2) Unless the person
is a dealer as defined in RCW 9.41.010, registration under this section is not
required if the following conditions are met:
(a) A person's value of
products, gross proceeds of sales, or gross income of the business, from all
business activities taxable under chapter 82.04 RCW, is less than twelve
thousand dollars per year;
(b) The person's
gross income of the business from all activities taxable under chapter 82.16
RCW is less than twelve thousand dollars per year;
(c) The person
is not required to collect or pay to the department of revenue any other tax or
fee which the department is authorized to collect; and
(((c))) (d)
The person is not otherwise required to obtain a license subject to the master
application procedure provided in chapter 19.02 RCW.
Sec. 3. RCW 82.32.045 and 1983
2nd ex.s. c 3 s 63 are each amended to read as follows:
(1) Except as otherwise
provided in this chapter, payments of the taxes imposed under chapters 82.04,
82.08, 82.12, 82.14, and 82.16 RCW, along with reports and returns on forms
prescribed by the department, are due monthly within twenty-five days after the
end of the month in which the taxable activities occur.
(2) The department of
revenue may relieve any taxpayer or class of taxpayers from the obligation of
remitting monthly and may require the return to cover other longer reporting
periods, but in no event may returns be filed for a period greater than one
year. For these taxpayers, tax payments are due on or before the last day of
the month next succeeding the end of the period covered by the return.
(3) The department of
revenue may also require verified annual returns from any taxpayer, setting
forth such additional information as it may deem necessary to correctly determine
tax liability.
(4) Notwithstanding
subsections (1) and (2) of this section, the department may relieve any person
of the requirement to file returns if the following conditions are met:
(a) The person's
value of products, gross proceeds of sales, or gross income of the business,
from all business activities taxable under chapter 82.04 RCW, is less than
twenty-four thousand dollars per year;
(b) The person's
gross income of the business from all activities taxable under chapter 82.16
RCW is less than twenty-four thousand dollars per year; and
(c) The person is
not required to collect or pay to the department of revenue any other tax or
fee which the department is authorized to collect.
Sec. 4. RCW 82.16.040 and 1961 c
15 s 82.16.040 are each amended to read as follows:
The provisions of this
chapter shall not apply to persons engaging in one or more businesses taxable
under this chapter whose total gross income is less than ((five hundred))
two thousand dollars for a monthly period or portion thereof. Any
person claiming exemption under this section may be required to file returns
even though no tax may be due. If the total gross income for a taxable monthly
period is ((five hundred)) two thousand dollars, or more, no
exemption or deductions from the gross operating revenue is allowed by this
provision.
NEW SECTION. Sec.
5. This act shall take
effect July 1, 1996.
