SENATE BILL REPORT
SHB 2380
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 of February 28, 2008
Title: An act relating to providing taxpayer relief for costs associated with compliance with the sourcing requirements of the streamlined sales and use tax agreement.
Brief Description: Providing relief for businesses for streamlined sales and use tax agreement compliance costs.
Sponsors: House Committee on Finance (originally sponsored by Representatives Ericks, Orcutt, Hunter, Kretz, Linville and Ormsby).
Brief History: Passed House: 1/30/08, 97-0.
Committee Activity: Ways & Means: 2/29/08.
SENATE COMMITTEE ON WAYS & MEANS
Staff: Dean Carlson (786-7305)
Background: Substitute Senate Bill 5089 (2007), signed into law March 22, conforms
Washington law with the Streamline Sales and Use Tax Agreement (SSUTA).
The legislation includes relief for in-state sellers impacted by the change to destination sourcing.
To qualify for relief, the seller must meet several requirements. The seller must: in calendar year
2008, have gross income less than $500,000 and have a physical presence in the state; have at
least 5 percent of sales derived from shipping property to locations away from its place of
business; have at least 1 percent of sales derived from shipments to multiple jurisdictions; and
as of July 1, 2008, be registered with the Department of Revenue (DOR).
A qualifying in-state seller may choose one of two options. A seller may: use a certified service
provider (CSP) for up to two years at no cost to the taxpayer, or claim a tax credit, not to exceed
$1,000. A credit may be claimed until used.
Under the agreement, sellers are authorized to designate an agent, referred to as a CSP, to register
the seller with the state and perform all the seller's sale and use tax functions.
Summary of Bill: Relief is provided for additional in-state sellers for costs associated with the
sourcing changes in the SSUTA.
To qualify for relief, the seller must meet several requirements. The seller must: in calendar year
2008, have a gross income between $500,000 and $3 million and have a physical presence in the
state; have at least 95 percent of sales derived from shipping property to jurisdictions other than
the jurisdiction in which the taxpayer has his or her main physical location; and, as of July 1,
2008, be registered with the DOR.
A qualifying in-state seller may choose one of two options. A seller may: use a certified service
provider for up to one year at no cost to the taxpayer, or claim a tax credit, not to exceed $1,000.
Sellers must use the credit by July 1, 2009.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.