1821 AMH MORR H2594.1

HB 1821 - H AMD 321 WITHDRAWN 3-18-97

By Representative Morris

    On page 2, after line 2, insert the following:

    "NEW SECTION. Sec. 3.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) This chapter shall not apply to the gross sales or the gross income received by a new business.

    (2) As used in this section:

    (a) "New business" means a business that obtained or was required to obtain a registration certificate under RCW 82.32.030 for the first time after the effective date of this act and during the thirty-six months immediately preceding the date in which an exemption is claimed under this section.  For out-of-state entities first engaging in business in this state, "new business" means a person or company, as defined in RCW 82.04.030, located outside this state that obtained or was required to obtain registration with any state, federal, or foreign agency for the first time after the effective date of this act and during the thirty-six months immediately preceding the date in which an exemption is claimed under this section.

    (b) "New business" does not include:

    (i) A business that has been restructured, reorganized, or transferred, unless the majority of the activities to be conducted after restructuring, reorganization, or transferral are significantly different from the activities previously conducted;

    (ii) A new branch location or other facility; or

    (iii) A business that is substantially similar to a business currently operated, or operated within the past ten years, by the same principals."

    Renumber the sections consecutively and correct internal references and the title accordingly.

EFFECT:  Exempts new businesses started after July 1, 1997, from paying B&O tax for 3 years.

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