6384 AMS .... WILS 029
SB 6384 - S AMD
By Senator ....
On page 3, after line 4, insert the following:
"Sec. 3. RCW 82.04.4281 and 2002 c -- s 2 (this act) are each amended to read as follows:
(((1)))
In computing tax there may be deducted from the measure of tax((:
(a))) amounts
derived by persons, other than those engaging in banking, loan, security, or
other financial businesses, from investments((; and
(b))) or
the use of money as such, and also amounts derived as dividends ((or
distributions from capital account)) by a parent from its subsidiary ((entities))
corporations.
(((2)
The following are not deductible under subsection (1)(a) of this section:
(a)
Amounts received from loans or the extension of credit to another, revolving
credit arrangements, installment sales, the acceptance of payment over time for
goods or services, or any of the foregoing that have been transferred by the
originator of the same to an affiliate of the transferor; or
(b)
Amounts received by a banking, lending, or security business.
(3)
The definitions in this subsection apply only to this section.
(a)
"Banking business" means a person engaging in business as a national
or state-chartered bank, a mutual savings bank, a savings and loan association,
a trust company, an alien bank, a foreign bank, a credit union, a stock savings
bank, or a similar entity that is chartered under Title 30, 31, 32, or 33 RCW,
or organized under Title 12 U.S.C.
(b)
"Lending business" means a person engaged in the business of making
secured or unsecured loans of money, or extending credit, and (i) more than
one-half of the person's gross income is earned from such activities and (ii)
more than one-half of the person's total expenditures are incurred in support
of such activities.
(c)
The terms "loan" and "extension of credit" do not include
ownership of or trading in publicly traded debt instruments, or substantially
equivalent instruments offered in a private placement.
(d)
"Security business" means a person, other than an issuer, who is
engaged in the business of effecting transactions in securities as a broker,
dealer, or broker-dealer, as those terms are defined in the securities act of
Washington, chapter 21.20 RCW, or the federal securities act of 1933.
"Security business" does not include any company excluded from the
definition of broker or dealer under the federal investment company act of 1940
or any entity that is not an investment company by reason of sections 3(c)(1)
and 3(c)(3) through 3(c)(14) thereof.))
NEW SECTION. Sec.
4. Section 2 of this act expires July 1, 2006.
NEW SECTION. Sec.
5. Section 3 of this act takes effect July 1, 2006."
Renumber the sections consecutively and correct any internal references accordingly.
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EFFECT: Sunsets the act in 4 years.