H-1082              _______________________________________________

                                                    HOUSE BILL NO. 447

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Nealey, Baugher, Rayburn, C. Smith, Zellinsky, Fuhrman, Dobbs, J. Williams, May, Walker, Chandler and Long

Read first time 2/1/85 and referred to Committee on Ways & Means.

AN ACT Relating to excise taxes on installment sales and leases; amending RCW 82.08.090 and 82.12.060; and providing an effective date.

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

        Sec. 1.  Section 82.08.090, chapter 15, Laws of 1961 as amended by section 49, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.08.090 are each amended to read as follows:

          In the case of installment sales and leases of personal property, the department of revenue, by regulation, may provide for the collection of taxes upon the installments of the purchase price, or amount of rental, as of the time the same fall due.  However, the taxpayer shall always have the option of paying the full amount of tax due for the installment sale or lease at the time the first payment is made, based on the fair market value of the personal property at the beginning of the installment sale or lease.

        Sec. 2.  Section 82.12.060, chapter 15, Laws of 1961 as last amended by section 54, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.12.060 are each amended to read as follows:

          In the case of installment sales and leases of personal property, the department, by regulation, may provide for the collection of taxes upon the installments of the purchase price, or amount of rental, as of the time the same fall due.  However, the taxpayer shall always have the option of paying the full amount of tax due for the installment sale or lease at the time the first payment is made, based on the fair market value of the personal property at the beginning of the installment sale or lease.

          In the case of property acquired by bailment, the department, by regulation, may provide for payment of the tax due in installments based on the reasonable rental for the property as determined under RCW 82.12.010(1).

NEW SECTION. Sec. 3.     This act shall take effect on October 1, 1985.