HOUSE BILL REPORT

ESSB 5266

BYSenate Committee on Ways & Means (originally sponsored by Senators McDermott and Gaspard; by request of Department of Revenue)

Providing for retail sales tax trust fund accountability.

House Committe on Ways & Means/Revenue

Majority Report:  Do pass with amendments.  (7)

      Signed by Representatives Appelwick, Chair; Holland, Madsen, Rust, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE MARCH 30, 1987

BACKGROUND:

The sales taxes that consumers pay are collected by private businesses in trust for the state.  currently, more than $5 million a year in sales taxes paid to corporations are not remitted to the state.

California, Idaho, Utah, Wyoming, and many other states hold corporate officers personally liable for taxes collected in trust for their state revenue agencies.

SUMMARY:

BILL AS AMENDED:  Officers or other persons who had control or supervision over taxes collected and who wilfully fail to pay or to cause to be paid are personally liable.  Any taxes that have been paid but not collected are credited against the taxes that have been collected but not paid.

AMENDED BILL COMPARED TO ENGROSSED SUBSTITUTE:  Clarifies that taxpayers are responsible for remitting only sales taxes that are collected for remittance to the Department of Revenue.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Attached.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.