H-1877              _______________________________________________

                                                   HOUSE BILL NO. 1154

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Schoon, J. Williams, B. Williams, Vekich and P. King

Read first time 3/2/87 and referred to Committee on Ways & Means.

AN ACT Relating to the taxation of software; and creating a new section.

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

NEW SECTION. Sec. 1.     A software industry advisory committee is hereby created to consist of eleven members. Nine of the members shall be appointed by the governor from the software industry.  The director of trade and economic development, who shall serve as chair, and the director of revenue shall serve as ex officio members.   The committee shall study the tax treatment of software, including the question of whether software is a product which is subject to sales and use taxes or whether software is a service and therefore not subject to these taxes, with the purpose of clarifying the tax treatment.  The committee shall make recommendations to the governor on any proposed rule changes.  The committee shall report to the legislature by January 1988 on any recommendations for legislation that it may propose.

          Members of the committee shall receive no compensation but shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.