SENATE BILL REPORT

SB 5983

As Reported By Senate Committee On:

Economic Development, March 5, 2003

Title: An act relating to including international companies investing in Washington in the definition of "person" for the purposes of excise tax incentives.

Brief Description: Including international companies investing in Washington in the definition of "person" for the purposes of excise tax incentives.

Sponsors: Senators Shin, T. Sheldon, Reardon, Prentice, Franklin, McAuliffe, Rasmussen and B. Sheldon.

Brief History:

Committee Activity: Economic Development: 2/28/03, 3/5/03 [DPS].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT

Majority Report: That Substitute Senate Bill No. 5983 be substituted therefor, and the substitute bill do pass.

      Signed by Senators T. Sheldon, Chair; Zarelli, Vice Chair; Benton, Hale, Kohl-Welles; Rossi, Schmidt, B. Sheldon and Shin.

Staff: Jack Brummel (786-7428)

Background: Many international companies with an interest in operating in Washington are not aware of the various tax incentives available. The tax code's definition of "person" used for business and occupation taxes, as well as for sales and use taxes and the various tax incentive statutes, does not include international companies investing in Washington.

Summary of Substitute Bill: An international company investing in Washington is included within the definition of person in the state's tax code.

Substitute Bill Compared to Original Bill: The original bill amended the existing definition of "person" in the tax code. The substitute instead adds a new section that specifies that international companies are included within the definition.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: We are trying to attract businesses to Washington State. This is simple but will encourage international investment in Washington State.

Testimony Against: None.

Testified: Senator Shin, prime sponsor.