H-1819.1  _______________________________________________

                          HOUSE BILL 2157

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State of Washington      56th Legislature     1999 Regular Session

By Representatives Conway, Tokuda, Kessler, Linville, Edwards, Campbell, Constantine, Haigh, Kenney, Keiser, Rockefeller and Anderson

Read first time 02/17/1999.  Referred to Committee on Finance.

Allowing restaurants credits for reporting tip income to the internal revenue service.

    AN ACT Relating to restaurant tax credits; and adding a new section to chapter 82.04 RCW.

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) There may be credited against the tax imposed by this chapter, the value of services and information relating to tip income received and reported to the internal revenue service by a restaurant, tavern, or bar.

    (2) The credit allowed under this section is limited to an amount equal to two and one-half percent of the value of tip income received by employees that is reported by a restaurant, tavern, or bar to the internal revenue service.

    (3) As used in this section, "restaurant" does not include grocery stores, minimarkets, or convenience stores.

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