CERTIFICATION OF ENROLLMENT

 

             ENGROSSED SUBSTITUTE SENATE BILL 5286

 

 

                   Chapter 181, Laws of 1997

 

 

                        55th Legislature

                      1997 Regular Session

 

 

INTANGIBLE PERSONAL PROPERTY--CLARIFICATION OF TAXATION

 

 

 

                    EFFECTIVE DATE:  7/27/97

Passed by the Senate April 15, 1997

  YEAS 30   NAYS 19

 

 

 

               BRAD OWEN

President of the Senate

 

Passed by the House April 9, 1997

  YEAS 71   NAYS 27

             CERTIFICATE

 

I, Mike O=Connell, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  ENGROSSED SUBSTITUTE SENATE BILL 5286 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 April 23, 1997 Place Style On Codes above, and Style Off Codes below.     

                                FILED          

 

 

           April 23, 1997 - 9:22 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

               ENGROSSED SUBSTITUTE SENATE BILL 5286

          _______________________________________________

 

                      AS AMENDED BY THE HOUSE

 

             Passed Legislature - 1997 Regular Session

 

State of Washington      55th Legislature     1997 Regular Session

 

By Senate Committee on Ways & Means (originally sponsored by Senators Horn, Benton, West, McCaslin, Wood, Prince, Roach, McDonald, Hale, Sellar, Anderson, Deccio, Johnson, Oke, Morton, Zarelli, Swecker, Hochstatter, Schow and Strannigan)

 

Read first time 03/10/97.

Clarifying the taxation of intangible personal property.      


    AN ACT Relating to intangible personal property; amending RCW 84.36.070; adding a new section to chapter 84.48 RCW; and creating new sections.

 

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

 

    Sec. 1.  RCW 84.36.070 and 1974 ex.s. c 118 s 1 are each amended to read as follows:

    ((The following)) (1) Intangible personal property ((shall be)) is exempt from ad valorem taxation((:)).

    (2) "Intangible personal property" means:

    (a) All moneys and credits including mortgages, notes, accounts, certificates of deposit, tax certificates, judgments, state, county and municipal bonds and warrants and bonds and warrants of other taxing districts, bonds of the United States and of foreign countries or political subdivisions thereof and the bonds, stocks, or shares of private corporations((,));

    (b) Private nongovernmental personal service contracts ((or)), private nongovernmental athletic or sports franchises, or private nongovernmental athletic or sports agreements provided that ((such)) the contracts, franchises, or agreements do not pertain to the use or possession of tangible personal or real property or to any interest in tangible personal or real property; and

    (c) Other intangible personal property such as trademarks, trade names, brand names, patents, copyrights, trade secrets, franchise agreements, licenses, permits, core deposits of financial institutions, noncompete agreements, customer lists, patient lists, favorable contracts, favorable financing agreements, reputation, exceptional management, prestige, good name, or integrity of a business.

    (3) "Intangible personal property" does not include zoning, location, view, geographic features, easements, covenants, proximity to raw materials, condition of surrounding property, proximity to markets, the availability of a skilled work force, and other characteristics or attributes of property.

    (4) This section does not preclude the use of, or permit a departure from, generally accepted appraisal practices and the appropriate application thereof in the valuation of real and tangible personal property, including the appropriate consideration of licenses, permits, and franchises granted by a government agency that affect the use of the property.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 84.48 RCW to read as follows:

    (1) In equalizing personal property as of January 1, 1998, the department shall treat intangible personal property in the same manner as intangible personal property is to be treated after the effective date of this act.

    (2) This section expires December 31, 1998.

 

    NEW SECTION.  Sec. 3.  This act shall not be construed to amend or modify any existing statute or rule relating to the treatment of computer software, retained rights in computer software, and golden and master copies of computer software for property tax purposes.

 

    NEW SECTION.  Sec. 4.  Nothing in this act is intended to incorporate and nothing in this act is based on any other state's statutory or case law.

 

    NEW SECTION.  Sec. 5.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

    NEW SECTION.  Sec. 6.  This act is effective for taxes levied for collection in 1999 and thereafter.

 

    NEW SECTION.  Sec. 7.  By December 1, 2000, the department of revenue shall submit a report to the house finance committee, the senate ways and means committee, and the office of the governor on tax shifts, tax losses, and any litigation resulting from this act.


    Passed the Senate April 15, 1997.

    Passed the House April 9, 1997.

Approved by the Governor April 23, 1997.

    Filed in Office of Secretary of State April 23, 1997.