| Passed by the Senate April 28, 2011 YEAS 42 ________________________________________ President of the Senate Passed by the House May 22, 2011 YEAS 90 ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5289 as passed by the Senate and the House of Representatives on the dates hereon set forth. ________________________________________ Secretary | |
| Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/20/11. Referred to Committee on Ways & Means.
AN ACT Relating to a business and occupation tax deduction for payments made to certain property management companies for personnel performing on-site functions; adding a new section to chapter 82.04 RCW; creating a new section; and repealing RCW 82.04.394.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 82.04 RCW
to read as follows:
(1) In computing tax due under this chapter, there may be deducted
from the measure of tax all amounts received by:
(a) A nonprofit property management company from the owner of
property for gross wages, benefits, and payroll taxes paid to, or for,
personnel performing on-site functions;
(b) A property management company from a housing authority for
gross wages, benefits, and payroll taxes paid to, or for, personnel
performing on-site functions; or
(c) A property management company from a limited liability company
or limited partnership of which the sole managing member or sole
general partner is a housing authority for gross wages, benefits, and
payroll taxes paid to, or for, personnel performing on-site functions.
(2) The definitions in this subsection apply to this section.
(a) "Personnel performing on-site functions" means a person who
meets all of the following conditions:
(i) The person works at the owner's property or centrally performs
on-site functions for the property;
(ii) The person's duties include leasing property units,
maintaining the property, preparing tenant income certification
paperwork or other compliance documents required to lease the unit,
collecting rents, recording rents, or performing similar activities;
and
(iii) The property management company, for whom the personnel
performing on-site functions works, operates under a written property
management agreement.
(b) "Nonprofit property management company" means a property
management company that:
(i) Is exempt from the tax under 26 U.S.C. Sec. 501(c) of the
federal internal revenue code, as it exists on January 1, 2010, but
only when such organization is providing property management services
for low-income housing that has qualified for the property tax
exemption under RCW 84.36.560; or
(ii) Is a public corporation established under RCW 35.21.730.
(c) "Housing authority" means a housing authority created pursuant
to chapter 35.82 RCW.
NEW SECTION. Sec. 2 RCW 82.04.394 (Exemptions -- Amounts received
by property management company for on-site personnel) and 2010 1st
sp.s. c 23 s 1202, 2010 c 106 s 209, & 1998 c 338 s 2 are each
repealed.
NEW SECTION. Sec. 3 This act does not affect any existing right
acquired or liability or obligation incurred under the sections amended
or repealed in this act or under any rule or order adopted under those
sections, nor does it affect any proceeding instituted under those
sections.