BILL REQ. #:  H-0139.1 

Prefiled 01/06/11. Read first time 01/10/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to phasing-out the business and occupation tax rate for on-site property managers; amending RCW 82.04.394; and providing an effective date.

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

Sec. 1   RCW 82.04.394 and 2010 1st sp.s. c 23 s 1202 are each amended to read as follows:
     (1) This chapter does not apply to((:
     (a))) amounts received by a ((nonprofit)) property management company from the owner of a property for gross wages and benefits paid directly to or on behalf of on-site personnel from property management trust accounts that are required to be maintained under RCW 18.85.285((; or
     (b) Amounts received by a property management company from a housing authority for gross wages and benefits paid directly to or on behalf of on-site personnel from property management trust accounts that are required to be maintained under RCW 18.85.285)).
     (2) ((The definitions in this subsection apply to this section.
     (a))) As used in this section, "on-site personnel" means a person who meets all of the following conditions:
     (((i) The person)) (a) Works primarily at the owner's property;
     (((ii) the person's)) (b) Has duties that include leasing property units, maintaining the property, collecting rents, or similar activities; and
     (((iii))) (c) Is under a written property management agreement providing that:
     (((A))) (i) The person's compensation is the ultimate obligation of the property owner and not the property manager;
     (((B))) (ii) The property manager is liable for payment only as agent of the owner; and
     (((C))) (iii) The property manager is the agent of the owner with respect to the on-site personnel and that all actions, including, but not limited to, hiring, firing, compensation, and conditions of employment, taken by the property manager with respect to the on-site personnel are subject to the approval of the property owner.
     (((b) "Nonprofit property management company" means a property management company that is exempt from tax under 26 U.S.C. Sec. 501(c) of the federal internal revenue code, as it exists on January 1, 2010.
     (c) "Housing authority" means a city or county housing authority created pursuant to chapter 35.82 RCW.))

NEW SECTION.  Sec. 2   This act takes effect July 1, 2013.