H‑0397.2   _____________________________________________

HOUSE BILL 1948

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives G. Chandler, Linville, Sump, McIntire and Casada

Read first time 02/09/2001.  Referred to Committee on Finance.

_1      AN ACT Relating to increasing the amount of the small business

_2  business and occupation tax credit; amending RCW 82.04.4451;

_3  providing an effective date; and declaring an emergency.

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5      Sec. 1.  RCW 82.04.4451 and 1997 c 238 s 2 are each amended to read

_6  as follows:

_7      (1) In computing the tax imposed under this chapter, a credit

_8  is allowed against the amount of tax otherwise due under this

_9  chapter, as provided in this section.  The maximum credit for a

10  taxpayer for a reporting period is ((thirty-five)) fifty dollars

11  multiplied by the number of months in the reporting period, as

12  determined under RCW 82.32.045.

13      (2) When the amount of tax otherwise due under this chapter is

14  equal to or less than the maximum credit, a credit is allowed

15  equal to the amount of tax otherwise due under this chapter.

16      (3) When the amount of tax otherwise due under this chapter

17  exceeds the maximum credit, a reduced credit is allowed equal to

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_1  twice the maximum credit, minus the tax otherwise due under this

_2  chapter, but not less than zero.

_3      (4) The department may prepare a tax credit table consisting of

_4  tax ranges using increments of no more than five dollars and a

_5  corresponding tax credit to be applied to those tax ranges.  The

_6  table shall be prepared in such a manner that no taxpayer will owe

_7  a greater amount of tax by using the table than would be owed by

_8  performing the calculation under subsections (1) through (3) of

_9  this section.  A table prepared by the department under this

10  subsection shall be used by all taxpayers in taking the credit

11  provided in this section.

12      NEW SECTION. Sec. 2.  This act is necessary for the immediate

13  preservation of the public peace, health, or safety, or support of

14  the state government and its existing public institutions, and

15  takes effect July 1, 2001.

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