SENATE BILL 6571
State of Washington 55th Legislature 1998 Regular Session
By Senators Wood, T. Sheldon, Snyder, Strannigan, Loveland, Patterson, Sellar, Johnson and West
Read first time 01/21/98. Referred to Committee on Ways & Means.
AN ACT Relating to the business and occupation taxation of warehousing and reselling of pharmaceutical drugs subject to regulation by the federal drug enforcement administration and the state board of pharmacy; amending RCW 82.04.270, 82.04.280, and 82.04.290; adding a new section to chapter 82.04 RCW; and providing an effective date.
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:
Upon every person engaging within this state in the business of warehousing and reselling pharmaceutical drugs; as to such persons, the amount of the tax shall be equal to the gross warehousing income derived from the sale of the products multiplied by the rate of 0.484 percent.
(2) For the purposes of this section:
(a) "Gross warehousing income" means four percent of the gross income of the business; and
(b) "Warehousing and reselling pharmaceutical drugs" means the buying of pharmaceutical drugs from a manufacturer or another wholesaler, and reselling of the drugs to retail merchants or health care providers, by a distributor. The distributor must be registered with the federal drug enforcement administration and licensed by the state board of pharmacy.
Sec. 2. RCW 82.04.270 and 1994 c 124 s 2 are each amended to read as follows:
Upon every person except persons taxable under ((
subsections (1) or (8) of))
RCW 82.04.260 (1) or (8) or section 1 of this act 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.
Sec. 3. RCW 82.04.280 and 1994 c 112 s 1 are each amended to read as follows:
Upon every person engaging within this state in the business of: (1) Printing, and of publishing newspapers, periodicals, or magazines; (2) building, repairing or improving any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (3) extracting for hire or processing for hire; (4) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (5) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of RCW 48.05.310; (6) radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station's total audience as measured by the 100 micro-volt signal strength and delivery by wire, if any; (7) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.484 percent.
As used in this section, "cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.
used in this section, "storage warehouse" means a building or
structure, or any part thereof, in which goods, wares, or merchandise are
received for storage for compensation, except field warehouses, fruit
warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW,
public garages storing automobiles, railroad freight sheds, docks and wharves,
and)) "self-storage" or "mini storage" facilities
whereby customers have direct access to individual storage areas by separate
entrance, and warehousing and reselling pharmaceutical drugs.
As used in this section, "periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.
Sec. 4. RCW 82.04.290 and 1997 c 7 s 2 are each amended to read as follows:
(1) Upon every person engaging within this state in the business of providing international investment management services, as to such persons, the amount of tax with respect to such business shall be equal to the gross income or gross proceeds of sales of the business multiplied by a rate of 0.275 percent.
Upon every person engaging within this state in any business activity other
than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250,
82.04.255, 82.04.260, 82.04.270, ((
and)) 82.04.280, and section 1 of
this act, and subsection (1) of this section; as to such persons the amount
of tax on account of such activities shall be equal to the gross income of the
business multiplied by the rate of 1.5 percent.
This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale." The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.
NEW SECTION. Sec. 5. This act takes effect July 1, 1998.
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