3159 AMH UPTH MATT 037
HB 3159 - H AMD 823
By Representative Upthegrove
On page 7, after line 16, insert the following:
"(12) Upon every person engaging within this state in inspecting, testing, labeling, and storing canned salmon owned by another person, as to such persons, the amount of tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.484 percent."
On page 27, after line 22, insert the following:
"NEW SECTION. Sec. 14. A new section is added to chapter 82.08 RCW to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales to persons who are subject to tax under RCW 82.04.260(12) of: (a) Materials used to package canned salmon including, but not limited to, clear wrap, boxes, tape, and box labels; and (b) glue, ink, or similar tangible personal property, that: (i) Affixes the label to the labeled product; or (ii) becomes a component of the label.
(2) The exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
NEW SECTION. Sec. 15. A new section is added to chapter 82.12 RCW to read as follows:
The provisions of this chapter do not apply with respect to the use by persons who are subject to tax under RCW 82.04.260(12) of: (a) Materials used to package canned salmon including, but not limited to, clear wrap, boxes, tape, and box labels; and (b) glue, ink, or similar tangible personal property, that: (i) Affixes the label to the labeled product; or (ii) becomes a component of the label."
Renumber remaining sections consecutively, correct internal references accordingly, and correct the title.
EFFECT: Reduces the B&O tax rate to 0.484 percent for persons that inspect, test, label, and store canned salmon owned by another person. Exempts these businesses from sales and use taxes on materials used in the labeling or packaging of canned salmon.