SENATE BILL REPORT

SHB 198

BYHouse Committee on Ways & Means/Revenue (originally sponsored by Representatives Sayan and Madsen; by request of Department of Revenue)

Providing for retail sales tax trust fund accountability.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):March 23, 1987

Majority Report:  Do pass as amended.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Craswell, Deccio, Kreidler, McDonald, Moore, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Stephen Rose (786-7443)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 23, 1987

BACKGROUND:

Estimates are that the state is losing $5 million per year in sales taxes collected but not remitted.

Various other states have this type of provision and it would give the state of Washington equal authority with the IRS in regard to personal liability for corporate trust fund taxes.

SUMMARY:

Corporate officers or other persons who had control or supervision over taxes collected and who willfully fail to pay or cause to be paid are personally liable for these taxes.

Revenue:    yes

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENT:

Taxes that have been paid but not collected may be deducted from taxes that have been collected but not paid.

Senate Committee - Testified: No one