FINAL BILL REPORT

SSB 6033

                                  C 495 L 87

BYSenate Committee on Ways & Means (originally sponsored by Senators Newhouse, Hansen, Benitz and Deccio)

Exempting from business and occupation tax wholesale sales of hops for shipment out of state.

Senate Committee on Ways & Means

House Committe on Ways & Means/Revenue

SYNOPSIS AS ENACTED

BACKGROUND:

Under long standing Department of Revenue practice, Business and Occupation taxes were levied on hop brokers and dealers on the value of the warehousing services and the charges for processing hops sold out of state.  Recent changes in this practice now make such brokers or dealers subject to Business and Occupation taxes on wholesaling functions and on the full value of hops processed under the "manufacturing-other" rate.

SUMMARY:

Amounts received by hop brokers and dealers for hops sold for first use out of state are exempt from the business and occupation tax only if the hops have first been processed in this state.  Amounts received for raw hops are not exempt.

VOTES ON FINAL PASSAGE:

      Senate    41     0

      House 93   3 (House amended)

      Senate    45     0 (Senate concurred)

EFFECTIVE:May 19, 1987