2335 AMH .... H5301.1

HB 2335 - H AMD 1021 BEYOND SCOPE 2-27-98

By Representative

    On page 8, after line 25, insert the following:

    "Sec. 8.  RCW 82.04.4451 and 1997 c 238 s 2 are each amended to read as follows:

    (1) In computing the tax imposed under this chapter, a credit is allowed against the amount of tax otherwise due under this chapter, as provided in this section.  The maximum credit for a taxpayer for a reporting period is ((thirty-five)) fifty dollars multiplied by the number of months in the reporting period, as determined under RCW 82.32.045.

    (2) When the amount of tax otherwise due under this chapter is equal to or less than the maximum credit, a credit is allowed equal to the amount of tax otherwise due under this chapter.

    (3) When the amount of tax otherwise due under this chapter exceeds the maximum credit, a reduced credit is allowed equal to twice the maximum credit, minus the tax otherwise due under this chapter, but not less than zero.

    (4) The department may prepare a tax credit table consisting of tax ranges using increments of no more than five dollars and a corresponding tax credit to be applied to those tax ranges.  The table shall be prepared in such a manner that no taxpayer will owe a greater amount of tax by using the table than would be owed by performing the calculation under subsections (1) through (3) of this section.  A table prepared by the department under this subsection shall be used by all taxpayers in taking the credit provided in this section.

NEW SECTION. Sec. 9.  Section 8 of this act applies to the entire period of reporting periods ending after the effective date of this section."

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

EFFECT:  Increases the small business B&O tax credit from $420 to $600 per year.

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