HOUSE BILL REPORT

EHB 1401

BYRepresentatives Spanel, Holland, Belcher, Cole, Ferguson, Grant, Grimm, Winsley, Rayburn, Nutley, Leonard, Doty, Sanders, Lewis, Silver, Wang, Sayan, Appelwick, Bristow, Patrick, Taylor, Heavey, Kremen, Holm, May, Brough, Jesernig, Schoon, Moyer, Rasmussen, Unsoeld, Brekke and Day

Expanding the business and occupation tax exemption for sheltered workshops.

House Committe on Ways & Means/Revenue

Majority Report:  Do pass.  (9)

      Signed by Representatives Appelwick, Chair; Basich, Bristow, Dellwo, Holland, Rust, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7136)

AS PASSED HOUSE FEBRUARY 1, 1988

BACKGROUND:

In 1970, a business and occupation tax exemption was enacted for sheltered workshops.  The statutory exemption is for income derived from activities performed within the workshop facility. At that time all work was performed within the facility.

With the passage of time, employment opportunities have become increasingly available "off-site." However, the income from such "off-site" activities is not exempt from the B&O tax.

SUMMARY:

The business and occupation tax exemption would be extended to income derived from "off-site" activities of sheltered workshops.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.