Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS

Finance Committee

HB 3283


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.

Brief Description: Relieving active duty military personnel of interest and penalties on delinquent excise taxes.

Sponsors: Representatives Herrera, Takko, Orcutt, Hurst, Eddy, Sump, Ericks, Fromhold, McCoy, Hudgins, Kelley, Kessler, Dunn, Ormsby, Linville, Roach and McCune.

Brief Summary of Bill
  • Excise tax penalties and interest do not apply to businesses while the owner is on active duty in the military and engaged in an armed conflict outside of the country.

Hearing Date: February 12, 2008.

Staff: Don Taylor (786-7388).

Background:

Current law provides a variety of penalties for late payment of state excise taxes and for failure to file a tax return, failure to obtain a business registration, and failure to pay at least a substantial portion of the tax that is due. Penalties also apply to assessments involving filing of a warrant against the taxpayer and for intentional evasion. Interest is added to the amount of outstanding taxes but not to the amount of any penalties that are assessed.

Summary of Bill:

Penalties or interest for state excise tax purposes may not be levied against any business in which the majority owner is a member of the armed forces during the period in which the person: (1) is on active duty, (2) is participating in an armed conflict, and (3) is assigned to a location outside of the United States.

Appropriation: None.

Fiscal Note: Requested on February 7, 2008.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.