SENATE 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.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 28, 1987; February 9, 1987

Majority Report:  That Substitute Senate Bill No. 5266 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Kreidler, Lee, Moore, Owen, Rasmussen, Rinehart, Talmadge, Vognild, Williams, Wojahn.

Senate Staff:Stephen Rose (786-7443)

                  March 18, 1987

AS PASSED SENATE, MARCH 17, 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:

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.

Revenue:    yes

Fiscal Note:      available

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

Senate Committee - Testified: Roger Dodd, Barney McClure, Department Revenue