Z-197                 _______________________________________________

                                                    HOUSE BILL NO. 198

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Sayan and Madsen; by request of Department of Revenue

Read first time 1/20/87 and referred to Committee on Ways & Means.

AN ACT Relating to the collection of retail sales taxes held in trust; and adding a new section to chapter 82.32 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.32 RCW to read as follows:

          (1) Upon termination, dissolution, or abandonment of a corporate business, all corporate officers or other persons having a proprietary interest in the business or having control or dominion over retail sales tax funds collected and held in trust under RCW 82.08.050 shall be personally, jointly, and severally liable for any such funds not paid to the department within ten days of termination, dissolution, or abandonment of the corporation.  This personal liability is limited to retail sales taxes under chapter 82.08 RCW.

          (2) Persons liable under subsection (1) of this section are exempt from liability in situations where nonpayment of the retail sales tax funds held in trust is due to reasons beyond their control as determined by the department by rule.

          (3) If there is more than one person liable under subsection (1) of this section and the department has collected the funds from fewer than all persons liable under subsection (1) of this section, then those persons shall have the right of contribution against any and all other persons liable under subsection (1) of this section.

          (4) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 82.32.170, 82.32.180, 82.32.190, and 82.32.200.

          (5) This section applies only in situations where the department has determined that there is no reasonable means of collecting the retail sales tax funds held in trust directly from the corporation.

          (6) This section does not relieve the corporation of other tax liabilities or otherwise impair other tax collection remedies afforded by law.

          (7) Collection authority and procedures prescribed in this chapter apply to collections under this section.