S-2850.1  _______________________________________________

                         SENATE BILL 6195

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State of Washington   57th Legislature 2001 Second Special Session

By Senator Jacobsen

Read first time 06/07/2001.  Referred to Committee on Ways & Means.

Imposing a tax on nonresident athletes or entertainers.

    AN ACT Relating to the taxation of nonresident athletes or entertainers; and adding a new section to chapter 82.02 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.02 RCW to read as follows:

    (1) A tax equal to one percent of the income determined under subsection (2) of this section is imposed on an individual who is a nonresident of Washington and who is an athlete or entertainer.

    (2) Income from compensation for labor or personal services performed within this state will be determined in the following manner:

    (a) The amount of income to be assigned to Washington for an individual who is a nonresident salaried athletic team employee will be determined by using a fraction in which the denominator contains the total number of days in which the individual is under a duty to perform for the employer, and the numerator is the total number of those days spent in Washington.  For purposes of this section, off-season training activities, unless conducted at the team's facilities as part of a team imposed program, are not included in the total number of duty days.  Bonuses earned as a result of play during the regular season or for participation in championship, play-off, or all-star games must be allocated under the formula.  Signing bonuses are not subject to allocation under the formula if they are not conditional on playing any games for the team, are payable separately from any other compensation, and are nonrefundable; and

    (b) The amount of income to be assigned to Washington for an individual who is a nonresident, and who is an athlete or entertainer not listed in (a) of this subsection, the person's athletic or entertainment performance in Washington will be determined by assigning to this state all income directly earned from performances or athletic contests in this state.

    (3) Revenue collected under this section will be deposited in the youth athletic facility account created in RCW 43.99N.060.

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