S-0269.1  _______________________________________________

                         SENATE BILL 5276

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators Fraser, West, Loveland, Hale, T. Sheldon, Honeyford and Winsley

Read first time 01/18/1999.  Referred to Committee on Ways & Means.

Defining gross income for a person engaged in a travel service business.

    AN ACT Relating to the meaning of gross income for a person engaged in a travel service business and who also receives reimbursements for administrative services provided to its foreign affiliates that also engage in a travel service business; and amending RCW 82.04.080.

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

    Sec. 1.  RCW 82.04.080 and 1961 c 15 s 82.04.080 are each amended to read as follows:

    "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses:  PROVIDED HOWEVER, It shall not mean amounts proceeding or accruing (1) under a written cost-sharing agreement for allocable reimbursement of administrative services incurred on behalf of a foreign affiliate that engages in a travel service business and (2) by a person that engages a travel service business and also holds a passenger vessel surety bond in compliance with Subpart A of Part 540 of Title 48, Code of Federal Regulations.  "Affiliate" means a person who directly or indirectly controls, or is controlled by, or is under common control with, a person.  "Foreign" means the affiliate is organized under laws outside of the United States.

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