By Representative Manweller

NOT ADOPTED 3/3/2015

On page 12, after line 17, insert the following:

NEW SECTION.  Sec. 17.  "TAX PREFERENCE PERFORMANCE STATEMENT. This section is the tax preference performance statement for the tax preferences contained in sections 18 and 19 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.

(1) The legislature categorizes these tax preferences as tax preferences intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).

(2) It is the legislature's specific public policy objective to provide tax relief to businesses for the cost of compliance with chapter 49.--- RCW (the new chapter created in section 16 of this act). It is the legislature's intent to allow a business and occupation tax credit and a public utility tax credit for cost of compliance in order to provide tax relief.

(3) If a review finds that the percentage increase in the real growth domestic product in the state since the effective date of this section is less than ten percent, then the legislature intends to extend the expiration date of the tax preference.

(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee may refer to:

(a) Data reported by the bureau of economic analysis in the United States department of commerce;

(b) The amount of the business and occupation tax credit taken under section 18 of this act, as reported on the tax return form; and

(c) The amount of the public utility tax credit taken under section 19 of this act, as reported on the tax return form.

NEW SECTION.  Sec. 18.  A new section is added to chapter 82.04 RCW to read as follows:

BUSINESS AND OCCUPATION TAX CREDIT. In computing the tax imposed under this chapter, a credit is allowed for the cost of compliance with chapter 49.--- RCW (the new chapter created in section 16 of this act). No application is necessary for the credit; however, a business taking a credit under this section must keep and preserve records for the period required by RCW 82.32.070 establishing that the business is eligible for the credit.

NEW SECTION.  Sec. 19.  A new section is added to chapter 82.16 RCW to read as follows:

PUBLIC UTILITY TAX CREDIT. In computing the tax imposed under this chapter, a credit is allowed for the cost of compliance with chapter 49.--- RCW (the new chapter created in section 16 of this act). No application is necessary for the credit; however, a business taking a credit under this section must keep and preserve records for the period required by RCW 82.32.070 establishing that the business is eligible for the credit."

Renumber the remaining section consecutively, correct any internal references accordingly, and correct the title.

EFFECT: Provides a business and occupation and public utility tax credit for the cost of compliance with the paid sick and safe leave requirements. Adds a tax preference performance statement for the credits, which includes a metric providing that if the review by the joint legislative audit and review committee finds that the percentage in the real growth domestic product in the state since the effective date of the act is less than ten percent, then the legislature intends to extend the expiration of the tax preferences.