SENATE BILL REPORT

HB 1734

BYRepresentatives Appelwick, Taylor, Pruitt, Crane,P. King, Brough and Todd

Revising the business and occupation taxation of the care of children.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):February 29, 1988

Senate Staff:William Bafus (786-7715)

AS OF FEBRUARY 29, 1988

BACKGROUND:

State reimbursements are provided through the Department of Social and Health Services for foster and day care of children. In addition, Indian organizations provide reimbursements for foster care.  These reimbursements are provided to offset the cost of providing children's services.

Business and occupation taxes are currently due on these reimbursements affecting children over the age of eight (B&O service rate of 1.5 percent).

SUMMARY:

A deduction from business and occupation taxation for amounts received from DSHS and Indian organizations as reimbursements for foster and day care of children regardless of age is provided.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect June 1, 1988.