2335 AMS HARG GOLD 002

HB 2335 - S AMD - 1023

    By Senator Hargrove

                                                 WITHDRAWN 3/12/98

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

    "NEW SECTION. Sec. 9. The legislature finds that section 10 of this act is intended to consolidate business and occupation taxes in distressed areas.

    Sec. 10.  RCW 82.62.030 and 1997 c 366 s 5 are each amended to read as follows:

    (1) A person shall be allowed a credit against the tax due under chapter 82.04 RCW 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.  For an application approved on or after July 1, 1997, the credit shall equal four thousand dollars for each qualified employment position with wages and benefits greater than forty thousand dollars annually that is directly created in an eligible business.  For an application approved on or after July 1, 1997, the credit shall equal two thousand dollars for each qualified employment position with wages and benefits less than or equal to forty thousand dollars annually that is directly created in an eligible business.

    (2) The department shall keep a running total of all credits granted under this chapter during each fiscal year.  The department shall not allow any credits which would cause the tabulation to exceed five million five hundred thousand dollars in fiscal year 1998 or 1999 or seven million five hundred thousand dollars in any fiscal year thereafter.  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 fiscal year.  However, the applicant's carryover into the next fiscal year is only permitted if the tabulation for the next fiscal year does not exceed the cap for that fiscal year as of the date on which the department has disallowed the application.

    (3) No recipient may use the tax credits to decertify a union or to displace existing jobs in any community in the state.

    (4) No recipient may receive a tax credit on taxes which have not been paid during the taxable year.

(5) A business that has committed to an investment, by the time of completion of the project, in land, structures, and equipment, the value of which must be at least four percent of the total of the equalized assessed value in the county in which the project is located, is eligible for an annual credit of four thousand dollars for each of the new positions.  The total equalized assessed value in the county is as published annually by the department in accordance with RCW 84.48.080.  Continuing eligibility is conditioned on the investment having actually occurred.  The business may apply for the credit once the project is complete.  The business may apply each of the successive seven years following its initial application under this subsection  The credits granted under this subsection do not affect the caps under subsection (2) of this section and the fifteen percent requirement under RCW 82.62.010.  Application for the credit under this subsection may not be accepted before the effective date of this section."

    Renumber the sections consecutively and correct any internal references accordingly.

HB 2335 - S AMD - 1023

    By Senator Hargrove

                                                 WITHDRAWN 3/12/98

    On page 1, on line 3 of the title, strike "and 82.04.440," and insert "82.04.440, and 82.62.030"

    On page 1 on line 4 of the title, strike "a new section" and insert "new sections"

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