H-1411              _______________________________________________

                                                   HOUSE BILL NO. 1023

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Jacobsen and Nelson

Read first time 2/19/87 and referred to Committee on Ways & Means.

AN ACT Relating to business and occupation taxation; and adding new sections to chapter 82.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

          (1) There is levied and shall be collected from every person for the act or privilege of engaging in business activities, as a part of the tax imposed under RCW 82.04.220 through 82.04.280, inclusive, an additional tax equal to three percent  multiplied by the tax payable under RCW 82.04.220 through 82.04.280, inclusive.

          (2) This section shall apply to any person engaging in any business activity taxable under RCW 82.04.230, 82.04.240, 82.04.250, 82.04.260, 82.04.270, and 82.04.280 other than those whose value of products, gross proceeds of sales, or gross income of the business is less than eight hundred thousand dollars per month:  PROVIDED, That where one person engages in more than one business activity and the combined measures of the tax applicable to such businesses equal or exceed eight hundred thousand dollars per month, no exemption or deduction from the amount of tax is allowed by this section.

          (3) To facilitate collection of these additional taxes, the department of revenue is authorized to adjust the basic rates of persons to which this section applies in such manner as to reflect the amount to the nearest one-thousandth of one percent of the additional tax hereby imposed, adjusting ten-thousandths equal to or greater than five ten-thousandths to the greater thousandth.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

          A credit is allowed against the tax imposed under section 1 of this act equal to the amount of money or value of property donated by the taxpayer to one or more of the state institutions of higher education during the tax year if such donations are actually accepted by the state institution of higher education.