BILL REQ. #: Z-0493.1
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 01/24/2005. Referred to Committee on Economic Development, Agriculture & Trade.
AN ACT Relating to revising excise tax provisions to encourage small business; amending RCW 82.32.030, 82.04.4451, and 82.32.045; providing an effective date; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.32.030 and 1996 c 111 s 2 are each amended to read
as follows:
(1) Except as provided in subsection (2) of this section, if any
person engages in any business or performs any act upon which a tax is
imposed by the preceding chapters, he or she shall, under such rules as
the department of revenue shall prescribe, apply for and obtain from
the department a registration certificate. Such registration
certificate shall be personal and nontransferable and shall be valid as
long as the taxpayer continues in business and pays the tax accrued to
the state. In case business is transacted at two or more separate
places by one taxpayer, a separate registration certificate for each
place at which business is transacted with the public shall be
required. Each certificate shall be numbered and shall show the name,
residence, and place and character of business of the taxpayer and such
other information as the department of revenue deems necessary and
shall be posted in a conspicuous place at the place of business for
which it is issued. Where a place of business of the taxpayer is
changed, the taxpayer must return to the department the existing
certificate, and a new certificate will be issued for the new place of
business. No person required to be registered under this section shall
engage in any business taxable hereunder without first being so
registered. The department, by rule, may provide for the issuance of
certificates of registration to temporary places of business.
(2) Unless the person is a dealer as defined in RCW 9.41.010,
registration under this section is not required if the following
conditions are met:
(a) A person's value of products, gross proceeds of sales, or gross
income of the business, from all business activities taxable under
chapter 82.04 RCW, is less than ((twelve)) twenty thousand dollars per
year;
(b) The person's gross income of the business from all activities
taxable under chapter 82.16 RCW is less than ((twelve)) twenty thousand
dollars per year;
(c) The person is not required to collect or pay to the department
of revenue any other tax or fee which the department is authorized to
collect; and
(d) The person is not otherwise required to obtain a license
subject to the master application procedure provided in chapter 19.02
RCW.
Sec. 2 RCW 82.04.4451 and 1997 c 238 s 2 are each amended to read
as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed against the amount of tax otherwise due under this chapter, as
provided in this section. The maximum credit for a taxpayer for a
reporting period is ((thirty-five)) seventy dollars multiplied by the
number of months in the reporting period, as determined under RCW
82.32.045.
(2) When the amount of tax otherwise due under this chapter is
equal to or less than the maximum credit, a credit is allowed equal to
the amount of tax otherwise due under this chapter.
(3) When the amount of tax otherwise due under this chapter exceeds
the maximum credit, a reduced credit is allowed equal to twice the
maximum credit, minus the tax otherwise due under this chapter, but not
less than zero.
(4) The department may prepare a tax credit table consisting of tax
ranges using increments of no more than five dollars and a
corresponding tax credit to be applied to those tax ranges. The table
shall be prepared in such a manner that no taxpayer will owe a greater
amount of tax by using the table than would be owed by performing the
calculation under subsections (1) through (3) of this section. A table
prepared by the department under this subsection shall be used by all
taxpayers in taking the credit provided in this section.
Sec. 3 RCW 82.32.045 and 2003 1st sp.s. c 13 s 8 are each amended
to read as follows:
(1) Except as otherwise provided in this chapter, payments of the
taxes imposed under chapters 82.04, 82.08, 82.12, 82.14, and 82.16 RCW,
along with reports and returns on forms prescribed by the department,
are due monthly within twenty days after the end of the month in which
the taxable activities occur.
(2) The department of revenue may relieve any taxpayer or class of
taxpayers from the obligation of remitting monthly and may require the
return to cover other longer reporting periods, but in no event may
returns be filed for a period greater than one year. For these
taxpayers, tax payments are due on or before the last day of the month
next succeeding the end of the period covered by the return.
(3) The department of revenue may also require verified annual
returns from any taxpayer, setting forth such additional information as
it may deem necessary to correctly determine tax liability.
(4) Notwithstanding subsections (1) and (2) of this section, the
department may relieve any person of the requirement to file returns if
the following conditions are met:
(a) The person's value of products, gross proceeds of sales, or
gross income of the business, from all business activities taxable
under chapter 82.04 RCW, is less than ((twenty-eight)) fifty-six
thousand dollars per year;
(b) The person's gross income of the business from all activities
taxable under chapter 82.16 RCW is less than twenty-four thousand
dollars per year; and
(c) The person is not required to collect or pay to the department
of revenue any other tax or fee which the department is authorized to
collect.
NEW SECTION. Sec. 4 Section 2 of this act applies to the entire
reporting period for reporting periods ending after July 1, 2005.
NEW SECTION. Sec. 5 This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect
July 1, 2005.