H-0979.1  _______________________________________________

                          HOUSE BILL 1500

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Dickerson, Pennington, Morris, Van Luven, Conway, Santos and Dunn

Read first time 01/29/2001.  Referred to Committee on Finance.

Exempting certain assembly activities from the business and occupation tax on manufacturing.

    AN ACT Relating to exempting certain assembly activities from the business and occupation tax on manufacturing; 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:

    The tax imposed under RCW 82.04.240 does not apply to the assembly of an article from pumping equipment, motor equipment, or compressor equipment, including starters, controls, couplings, blowers, and other accessories for this equipment, if some of the equipment and accessories are purchased from another person and the amount paid for the purchased equipment and accessories is at least eighty percent of the cost of the goods sold, based on materials, labor, and direct overhead.

NEW SECTION. Sec. 2.  This act takes effect October 1, 2001.

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