SENATE BILL REPORT

                   HB 1621

                     As of March 22, 1999

Title:  An act relating to electronic filing of tax returns and remittances.

Brief Description:  Authorizing the department of revenue to receive electronically filed taxpayer returns and remittances.

Sponsors:  Representatives Stensen, Cairnes, Reardon, Miloscia and Thomas; by request of Department of Revenue.

Brief History:

Committee Activity:  Energy, Technology & Telecommunications:  3/23/99.

SENATE COMMITTEE ON ENERGY, TECHNOLOGY & TELECOMMUNICATIONS

Staff:  Karen Kirkpatrick (786-7403)

Background:  The Department of Revenue (DOR) collects the state's major excise taxes, such as the retail sales and the business and occupation tax.  The taxes collected by DOR are reported on the combined excise tax return.  Taxpayers who report on the combined excise tax form with annual tax liability of $240,000 or more are required to pay taxes through an Electronic Funds Transfer (EFT) process.  An EFT allows funds to be received almost instantaneously by the department.

The law is unclear whether DOR has the authority to accept remittances from other taxpayers who voluntarily choose to remit electronically or to accept returns from any taxpayer who wishes to transfer this information electronically.

Summary of Bill:  The Department of Revenue is authorized to allow electronic filing of returns or remittances from any taxpayer.  The return or remittance is considered filed as provided by rule of the department.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.