BILL REQ. #:  S-0446.1 

Read first time 01/18/13.   Referred to Committee on Financial Institutions, Housing & Insurance.

     AN ACT Relating to a sales and use tax exemption for certain financial information provided to qualifying businesses providing international investment management services; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax imposed by RCW 82.08.020 does not apply to sales of standard financial information to qualifying international investment management companies. The exemption provided in this section applies regardless of whether the standard financial information is provided to the buyer in a tangible format or on a tangible storage medium or as a digital product transferred electronically.
     (2) Sellers making tax-exempt sales under this section must obtain an exemption certificate from the buyer in a form and manner prescribed by the department. The seller must retain a copy of the exemption certificate for the seller's files. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement.
     (3) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a)(i) "Qualifying international investment management company" means a person:
     (A) Who is primarily engaged in the business of providing investment management services; and
     (B) Who has gross income that is at least ten percent derived from providing investment management services to:
     (I) Persons or collective investment funds residing outside the United States; or
     (II) Collective investment funds with at least ten percent of their investments located outside the United States.
     (ii) The definitions in RCW 82.04.293 apply to this subsection (3)(a).
     (b)(i) "Standard financial information" means financial data, facts, or information, or financial information services, not generated, compiled, or developed only for a single customer. Standard financial information includes, but is not limited to, financial market data, bond ratings, credit ratings, and deposit, loan, or mortgage reports.
     (ii) For purposes of this subsection (3)(b), "financial market data" means market pricing information, such as for securities, commodities, and derivatives; corporate actions for publicly and privately traded companies, such as dividend schedules and reorganizations; corporate attributes, such as domicile, currencies used, and exchanges where shares are traded; and currency information.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The tax imposed by RCW 82.12.020 does not apply to the use of standard financial information by qualifying international investment management companies. The exemption provided in this section applies regardless of whether the standard financial information is in a tangible format or resides on a tangible storage medium or is a digital product transferred electronically to the qualifying international investment management company.
     (2) The definitions in section 1 of this act apply to this section.

NEW SECTION.  Sec. 3   This act takes effect August 1, 2013.