| Passed by the Senate March 1, 2011 YEAS 43 BRAD OWEN ________________________________________ President of the Senate Passed by the House April 4, 2011 YEAS 95 FRANK CHOPP ________________________________________ 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 5057 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
| Approved April 13, 2011, 1:42 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | April 13, 2011 Secretary of State State of Washington |
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/12/11. Referred to Committee on Judiciary.
AN ACT Relating to the income tax required to be paid by a trustee; and amending RCW 11.104A.290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 11.104A.290 and 2002 c 345 s 505 are each amended to
read as follows:
(((a))) (1) A tax required to be paid by a trustee based on
receipts allocated to income must be ((paid from)) charged to income.
(((b))) (2) A tax required to be paid by a trustee based on
receipts allocated to principal must be ((paid from)) charged to
principal, even if the tax is called an income tax by the taxing
authority.
(((c))) (3) A tax required to be paid by a trustee on the trust's
share of an entity's taxable income must be ((paid proportionately))
charged:
(((1) From)) (a) To income to the extent that receipts from the
entity are allocated only to income; ((and)) (b) To principal to the extent that((
(2) From:)) receipts from the entity are allocated only to
principal;
(i) Receipts from the entity are allocated to principal; and
(ii) The trust's share of the entity's taxable income exceeds the
total receipts described in (1) and (2)(i) of this subsection.
(d) For purposes of this section, receipts allocated to principal
or income must be reduced by the amount distributed to a beneficiary
from principal or income for which the trust receives a deduction in
calculating the tax
(c) Proportionately to income and principal to the extent that
receipts from the entity are allocated to both income and principal;
(d) Otherwise to principal.
(4) Before applying subsections (1) through (3) of this section,
the trustee must adjust income or principal receipts by the
distributions to a beneficiary for which the trust receives an income
tax deduction.