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SENATE
BILL 6449
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Passed
Legislature - 1998 Regular Session
State
of Washington 55th Legislature 1998 Regular Session
By
Read
first time 01/19/98. Referred to Committee on Ways & Means.
Specifying a business and occupation tax rate for income
in the nature of royalties for the use of intangible rights.
AN
ACT Relating to the business and occupation taxation of income in the nature of
royalties for the use of intangible rights; amending RCW 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 receiving income
from royalties or charges in the nature of royalties for the granting of
intangible rights, such as copyrights, licenses, patents, or franchise fees,
the amount of tax with respect to such business shall be equal to the gross
income from royalties or charges in the nature of royalties from the business
multiplied by the rate of 0.484 percent.
"Royalties"
means compensation for the use of intangible property, such as copyrights,
patents, licenses, franchises, trademarks, trade names, and similar items. It
does not include compensation for any natural resource.
Sec.
2. 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.
(2)
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, 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. 3. This
act takes effect July 1, 1998.
Passed the Senate February 13, 1998.
Passed the House March 10, 1998.
Approved by the Governor
April 3, 1998.
Filed
in Office of Secretary of State April 3, 1998.
