S-1039               _______________________________________________

                                                   SENATE BILL NO. 3769

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Lee, Newhouse, Johnson, Zimmerman, McCaslin, Kiskaddon, Craswell, Deccio, Bailey, Barr, McDonald, Guess, Hayner, Benitz, Metcalf and Sellar

Read first time 2/6/85 and referred to Committee on Ways and Means.

AN ACT Relating to the reduction of business and occupation taxes; amending RCW 82.04.255, 82.04.290, and 82.02.030; repealing RCW 82.04.2901, 82.04.2902, 82.04.2903, and 82.04.2904; providing an effective date; and declaring an emergency.

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

        Sec. 1.  Section 3, chapter 65, Laws of 1970 ex. sess. as last amended by section 1, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.255 are each amended to read as follows:

          Upon every person engaging within the state as a real estate broker; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of ((1.50)) one percent((: PROVIDED, That this tax shall be imposed only if all of the amendments contained in sections 2 through 4 of this 1983 act become law)).

          The measure of the tax on real estate commissions earned by the real estate broker shall be the gross commission earned by the particular real estate brokerage office including that portion of the commission paid to salesmen or associate brokers in the same office on a particular transaction:  PROVIDED, HOWEVER, That where a real estate commission is divided between an originating brokerage office and a cooperating brokerage office on a particular transaction, each brokerage office shall pay the tax only upon their respective shares of said commission:  AND PROVIDED FURTHER, That where the brokerage office has paid the tax as provided herein, salesmen or associate brokers within the same brokerage office shall not be required to pay a similar tax upon the same transaction.

        Sec. 2.  Section 82.04.290, chapter 15, Laws of 1961 as last amended by section 2, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.290 are each amended to read as follows:

          Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, and 82.04.280; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of ((1.50)) one percent((: PROVIDED, That this tax shall be imposed only if all of the amendments contained in sections 1, 3, and 4 of this 1983 act become law)).  This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale."  The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.

        Sec. 3.  Section 31, chapter 35, Laws of 1982 1st ex. sess. as last amended by section 6, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.02.030 are each amended to read as follows:

          (1) The rate of the additional taxes under RCW 54.28.020(2), 54.28.025(2), 66.24.210(2), 66.24.290(2), ((82.04.2901,)) 82.16.020(2), 82.20.010(2), 82.26.020(2), 82.27.020(5), 82.29A.030(2), 82.44.020(5), and 82.45.060(2) shall be seven percent;

          (2) The rate of the additional taxes under RCW 82.08.150(4) shall be fourteen percent;

          (3) The rate of the additional taxes under RCW 82.24.020(2) shall be fifteen percent; and

          (4) The rate of the additional taxes under RCW 48.14.020(3) shall be four percent.

NEW SECTION. Sec. 4.  The following acts or parts of acts are each repealed:

                   (1) Section 3, chapter 130, Laws of 1975-'76 2nd ex. sess., section 1, chapter 324, Laws of 1977 ex. sess., section 2, chapter 35, Laws of 1982 1st ex. sess., section 4, chapter 9, Laws of 1983, section 4, chapter 3, Laws of 1983 2nd ex. sess., section 61, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.2901;

          (2) Section 3, chapter 7, Laws of 1983 and RCW 82.04.2902;

          (3) Section 5, chapter 9, Laws of 1983 and RCW 82.04.2903; and

          (4) Section 3, chapter 9, Laws of 1983, section 3, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.2904.

          These repeals shall not be construed as affecting any existing right acquired or any liability or obligation incurred under the statute repealed or under any rule, regulation, or order adopted pursuant thereto; nor as affecting any proceeding instituted thereunder.

NEW SECTION. Sec. 5.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.