HOUSE BILL REPORT
HB 1557
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Finance
Title: An act relating to tax incentives for emergency preparedness at retail gasoline stations.
Brief Description: Providing a business and occupation tax credit for the purchase of alternative power generation devices to operate gasoline service station pumps.
Sponsors: Representatives Rodne, Lovick, Haler, Springer, Strow, Sells, Jarrett, Hurst, Linville, Ormsby, Hudgins and Dunn.
Brief History:
Finance: 2/6/07, 3/2/07 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON FINANCE
Majority Report: Do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Conway, Ericks, McIntire, Roach and Santos.
Staff: Rick Peterson (786-7150).
Background:
Washington's major business tax is the business and occupation (B&O) tax. The B&O tax is
imposed on the gross receipts of business activities conducted within the state, without any
deduction for the costs of doing business. Revenues are deposited in the State General Fund.
A business may have more than one B&O tax rate, depending on the types of activities
conducted. There are a number of different rates. The main rates are: 0.471 percent for
retailing; 0.484 percent for manufacturing, wholesaling, and extracting; and 1.5 percent for
professional and personal services, and activities not classified elsewhere.
Summary of Bill:
A B&O tax credit is allowed for gasoline service stations equal to 50 percent of the cost for
an electrical generator. The credit cannot exceed $15,000.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect on August 1, 2007.
Staff Summary of Public Testimony:
(In support) The week of power outages in December demonstrated that continued operations
of service stations during these times is critical to maintaining stability and order in our
society. The appropriate response is to provide incentives for service stations to invest in
backup power capabilities, rather than mandating them to do so. Service station operators
have a small profit margin and would lose money if they installed backup power sources
without a tax exemption.
(Opposed) None.
Persons Testifying: Representative Rodne, prime sponsor; and Tim Hamilton, Automotive United Trades Organization.