CERTIFICATION OF ENROLLMENT

 

                        SENATE BILL 5195

 

 

                   Chapter 408, Laws of 1997

 

 

                        55th Legislature

                      1997 Regular Session

 

 

BUSINESS AND OCCUPATION TAX EXEMPTION FOR OUT-OF-STATE MEMBERSHIP SALES IN DISCOUNT PROGRAMS

 

 

 

                    EFFECTIVE DATE:  7/1/97

Passed by the Senate April 21, 1997

  YEAS 36   NAYS 6

 

 

 

               BRAD OWEN

President of the Senate

 

Passed by the House April 14, 1997

  YEAS 62   NAYS 32

             CERTIFICATE

 

I, Mike O=Connell, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SENATE BILL 5195 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

           MIKE O'CONNELL

                            Secretary

 

 

Approved May 16, 1997 Place Style On Codes above, and Style Off Codes below.  

                                FILED          

 

 

             May 16, 1997 - 3:45 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                         SENATE BILL 5195

          _______________________________________________

 

             Passed Legislature - 1997 Regular Session

 

                      AS AMENDED BY THE HOUSE

 

State of Washington      55th Legislature     1997 Regular Session

 

By Senators Deccio and Newhouse; by request of Department of Revenue

 

Read first time 01/20/97.  Referred to Committee on Ways & Means.

 

 

Providing for taxation of membership sales in discount programs. 


    AN ACT Relating to the taxation of membership sales in discount programs; adding a new section to chapter 82.04 RCW; providing an effective date; and declaring an emergency.

 

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) For the purposes of this section, "qualifying discount program" means a membership program, club, or plan that entitles the member to discounts on services or products sold by others.  The term does not include any discount program which in part or in total entitles the member to discounts on services or products sold by the seller of the membership or an affiliate of the seller of the membership.  "Affiliate," for the purposes of this section, means any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the seller.

    (2) Persons selling memberships in a qualifying discount program are not subject to tax under this chapter on that portion of the membership sales where the seller delivers the membership materials to the purchaser who receives them at a point outside this state.

 

    NEW SECTION.  Sec. 2.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.


    Passed the Senate April 21, 1997.

    Passed the House April 14, 1997.

Approved by the Governor May 16, 1997.

    Filed in Office of Secretary of State May 16, 1997.