BILL REQ. #: H-0632.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/28/11. Referred to Committee on Ways & Means.
AN ACT Relating to doubling the small business tax credit to encourage small business job creation; amending RCW 82.04.4451, 82.32.030, and 82.32.045; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.04.4451 and 2010 1st sp.s. c 23 s 1102 are each
amended to read as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed against the amount of tax otherwise due under this chapter, as
provided in this section. ((Except for taxpayers that report at least
fifty percent of their taxable amount under RCW 82.04.255,
82.04.290(2)(a), and 82.04.285, the maximum credit for a taxpayer for
a reporting period is thirty-five dollars multiplied by the number of
months in the reporting period, as determined under RCW 82.32.045. For
a taxpayer that reports at least fifty percent of its taxable amount
under RCW 82.04.255, 82.04.290(2)(a), and 82.04.285,)). The maximum
credit for a reporting period is seventy dollars multiplied by the
number of months in the reporting period, as determined under RCW
82.32.045.
(2) When the amount of tax otherwise due under this chapter is
equal to or less than the maximum credit, a credit is allowed equal to
the amount of tax otherwise due under this chapter.
(3) When the amount of tax otherwise due under this chapter exceeds
the maximum credit, a reduced credit is allowed equal to twice the
maximum credit, minus the tax otherwise due under this chapter, but not
less than zero.
(4) The department may prepare a tax credit table consisting of tax
ranges using increments of no more than five dollars and a
corresponding tax credit to be applied to those tax ranges. The table
((shall)) must be prepared in such a manner that no taxpayer will owe
a greater amount of tax by using the table than would be owed by
performing the calculation under subsections (1) through (3) of this
section. A table prepared by the department under this subsection must
be used by all taxpayers in taking the credit provided in this section.
Sec. 2 RCW 82.32.030 and 2007 c 6 s 202 are each amended to read
as follows:
(1) Except as provided in subsections (2) and (3) of this section,
if any person engages in any business or performs any act upon which a
tax is imposed by the preceding chapters, he or she ((shall)) must,
under such rules as the department ((of revenue shall)) prescribes,
apply for and obtain from the department a registration certificate.
Such registration certificate ((shall be)) is personal and
nontransferable and shall be valid as long as the taxpayer continues in
business and pays the tax accrued to the state. In case business is
transacted at two or more separate places by one taxpayer, a separate
registration certificate for each place at which business is transacted
with the public ((shall be)) is required. Each certificate ((shall))
must be numbered and ((shall)) must show the name, residence, and place
and character of business of the taxpayer and such other information as
the department ((of revenue)) deems necessary and ((shall)) must be
posted in a conspicuous place at the place of business for which it is
issued. Where a place of business of the taxpayer is changed, the
taxpayer must return to the department the existing certificate, and a
new certificate will be issued for the new place of business. No
person required to be registered under this section shall engage in any
business taxable hereunder without first being so registered. The
department, by rule, may provide for the issuance of certificates of
registration to temporary places of business.
(2) Unless the person is a dealer as defined in RCW 9.41.010,
registration under this section is not required if the following
conditions are met:
(a) A person's value of products, gross proceeds of sales, or gross
income of the business, from all business activities taxable under
chapter 82.04 RCW, is less than ((twelve)) twenty-eight thousand
dollars per year;
(b) The person's gross income of the business from all activities
taxable under chapter 82.16 RCW is less than ((twelve)) twenty-eight
thousand dollars per year;
(c) The person is not required to collect or pay to the department
((of revenue)) any other tax or fee which the department is authorized
to collect; and
(d) The person is not otherwise required to obtain a license
subject to the master application procedure provided in chapter 19.02
RCW.
(3) All persons who agree to collect and remit sales and use tax to
the department under the agreement must register through the central
registration system authorized under the agreement. Persons required
to register under subsection (1) of this section are not relieved of
that requirement because of registration under this subsection (3).
(4) Persons registered under subsection (3) of this section who are
not required to register under subsection (1) of this section and who
are not otherwise subject to the requirements of chapter 19.02 RCW are
not subject to the fees imposed by RCW 19.02.075.
Sec. 3 RCW 82.32.045 and 2010 1st sp.s. c 23 s 1103 are each
amended to read as follows:
(1) Except as otherwise provided in this chapter, payments of the
taxes imposed under chapters 82.04, 82.08, 82.12, 82.14, and 82.16 RCW,
along with reports and returns on forms prescribed by the department,
are due monthly within twenty-five days after the end of the month in
which the taxable activities occur.
(2) The department ((of revenue)) may relieve any taxpayer or class
of taxpayers from the obligation of remitting monthly and may require
the return to cover other longer reporting periods, but in no event may
returns be filed for a period greater than one year. For these
taxpayers, tax payments are due on or before the last day of the month
next succeeding the end of the period covered by the return.
(3) The department ((of revenue)) may also require verified annual
returns from any taxpayer, setting forth such additional information as
it may deem necessary to correctly determine tax liability.
(4) Notwithstanding subsections (1) and (2) of this section, the
department may relieve any person of the requirement to file returns if
the following conditions are met:
(a) The person's value of products, gross proceeds of sales, or
gross income of the business, from all business activities taxable
under chapter 82.04 RCW, is less than((:)) fifty-six thousand dollars per year;
(i) Twenty-eight thousand dollars per year; or
(ii) Forty-six thousand six hundred sixty-seven dollars per year
for persons generating at least fifty percent of their taxable amount
from activities taxable under RCW 82.04.255, 82.04.290(2)(a), and
82.04.285
(b) The person's gross income of the business from all activities
taxable under chapter 82.16 RCW is less than twenty-four thousand
dollars per year; and
(c) The person is not required to collect or pay to the department
((of revenue)) any other tax or fee which the department is authorized
to collect.
NEW SECTION. Sec. 4 This act takes effect August 1, 2011.