Z-1265.1  _______________________________________________

                         SENATE BILL 6270

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Senators Anderson, Spanel, Swecker, West and Oke; by request of Department of Revenue

Read first time 01/14/98.  Referred to Committee on Ways & Means.

Eliminating the business and occupation tax on internal distributions.

    AN ACT Relating to eliminating the business and occupation tax on internal distributions; amending RCW 82.04.270; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 82.04.270 and 1994 c 124 s 2 are each amended to read as follows:

    (((1))) Upon every person except persons taxable under ((subsections (1) or (8) of)) RCW 82.04.260 (1) or (8) engaging within this state in the business of making sales at wholesale; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.484 percent.

    (((2) The tax imposed by this section is levied and shall be collected from every person engaged in the business of distributing in this state articles of tangible personal property, owned by them from their own warehouse or other central location in this state to two or more of their own retail stores or outlets, where no change of title or ownership occurs, the intent hereof being to impose a tax equal to the wholesaler's tax upon persons performing functions essentially comparable to those of a wholesaler, but not actually making sales.  The tax designated in this section may not be assessed twice to the same person for the same article.  The amount of the tax as to such persons shall be computed by multiplying 0.484 percent of the value of the article so distributed as of the time of such distribution.  The department of revenue shall prescribe uniform and equitable rules for the purpose of ascertaining such value, which value shall correspond as nearly as possible to the gross proceeds from sales at wholesale in this state of similar articles of like quality and character, and in similar quantities by other taxpayers.  Delivery trucks or vans will not under the purposes of this section be considered to be retail stores or outlets.))

NEW SECTION. Sec. 2.  This act takes effect July 1, 1998.

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