H-2050.1 _______________________________________________
HOUSE BILL 2139
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State of Washington 55th Legislature 1997 Regular Session
By Representatives Morris, Dickerson, Dunshee, Butler, Mason, Kastama, Conway, Gombosky, Keiser, O'Brien, Costa and Cooper
Read first time 02/24/97. Referred to Committee on Finance.
AN ACT Relating to exempting new businesses from business and occupation tax; 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:
(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 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 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.
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