SENATE 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

Senate Committee on Ways & Means

Senate Hearing Date(s):February 17, 1988; February 18, 1988

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Newhouse, Saling, Smith, Talmadge, Zimmerman.

Senate Staff:William Bafus (786-7715)

                  February 19, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 18, 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 is extended to income derived from "off-site" activities of sheltered workshops.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Representative Spanel (for)