BILL REQ. #:  H-1381.2 

Read first time 02/09/2005.   Referred to Committee on Economic Development, Agriculture & Trade.

     AN ACT Relating to a business and occupation tax deduction for new businesses; adding a new section to chapter 82.04 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.04 RCW to read as follows:
     (1) A new business may take deductions from the measure of tax during the first thirty-six months of operation of the new business. The deduction is equal to eight thousand three hundred thirty-three dollars, multiplied by the number of months in the reporting period.
     (2) As used in this section:
     (a) "New business" means a business that obtains or is required to obtain a registration certificate under RCW 82.32.030 for the first time. "New business" also includes a branch location or other facility established after the effective date of this section by an entity doing business in this state;
     (b) "New business" does not include:
     (i) A business that has been restructured, reorganized, or transferred, if the activities to be conducted after restructuring, reorganization, or transferral are substantially similar to the activities previously conducted; or
     (ii) A business that is substantially similar to a business currently operated, or operated within the past five years, by the same principals.

NEW SECTION.  Sec. 2   This act takes effect October 1, 2005.