S-4989               _______________________________________________

                                          SENATE JOINT MEMORIAL NO. 8031

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators West, Smitherman, Lee, Owen, Warnke, Gaspard, Sellar, McDonald and McMullen

Read first time 2/16/88.  Under suspension of rules, read second and third times 2/16/88 and passed.

TO THE HONORABLE RONALD REAGAN, PRESIDENT OF THE UNITED STATES, AND TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED, AND TO BOOTH GARDNER, GOVERNOR OF THE STATE OF WASHINGTON:

          We, your Memorialists, the Senate and House of Representatives of the State of Washington, in legislative session assembled, respectfully represent and petition as follows:

          WHEREAS, The Advisory Commission on Intergovernmental Relations estimates that in 1987 the State of Washington lost sixty million dollars in sales tax revenue to out-of-state mail order and telemarketing sales not subject to sales tax, even though tangible personal property was sold to persons within this state; and

          WHEREAS, The Advisory Commission on Intergovernmental Relations projects that catalog and telemarketing sales will grow by four hundred percent nation-wide in 1988; and

          WHEREAS, Businesses located within the State of Washington which sell goods similar to those sold by out-of-state  mail order firms are at a distinct competitive disadvantage because they are required to collect taxes on the goods sold; and

          WHEREAS, Currently a business must have a physical presence in the State of Washington in order for it to be required to collect and remit sales taxes to the State, according to the 1967 United States Supreme Court decision Bellas Hess v. Illinois Department of Revenue; and

          WHEREAS, A business does not have a physical presence within the State of Washington unless it has (1) a place of business in this state, or (2) a stock of goods within the state, or (3) sales solicited by sales agents or representatives in this state; and

          WHEREAS, The United States Congress has before it HR 1242, legislation which would grant states the authority to require out-of-state mail order businesses to collect and remit to a state sales and use taxes on tangible personal property, to be delivered by any means to a destination within the state, if the business has annual gross receipts exceeding twelve million five hundred thousand dollars from sales throughout the United States or exceeding five hundred thousand dollars from sales within that state;

          NOW, THEREFORE, Your Memorialists respectfully pray that:

          (1) The Governor of the State of Washington actively support passage of HR 1242;

          (2) The Washington State Delegation to Congress support HR 1242 and utilize their influence to persuade the members of the United States Senate and House of Representatives to pass HR 1242;

          (3) The President utilize his influence to persuade the members of Congress to pass HR 1242 and to sign the bill upon its passage out of the Congress.

          BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable Ronald Reagan, President of the United States, the President of the United States Senate, the Speaker of the House of Representatives, Booth Gardner, Governor of the State of Washington, and each member of Congress from the State of Washington.