S-294                 _______________________________________________

                                         SENATE JOINT RESOLUTION NO. 8204

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State of Washington                              50th Legislature                              1987 Regular Session

By Senator Moore

Read first time 1/15/87 and referred to Committee on Ways & Means.

BE IT RESOLVED, BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE STATE OF WASHINGTON, IN LEGISLATIVE SESSION ASSEMBLED:

          THAT, At the next general election to be held in this state there shall be submitted to the qualified voters of the state for their approval and ratification, or rejection, an amendment to Article VII of the Constitution of the state of Washington by adding thereto a new section to read as follows:

Article VII, section ....          (1) Income is not property within the meaning of this article, and an income tax is not a tax on property.  The legislature may enact an income tax, subject to the conditions in this section, with a single rate for persons other than corporations and a separate single rate for corporations.

          (2) The rate of an income tax imposed on persons other than corporations shall never exceed nine percent, and the rate of an income tax imposed on corporations shall never exceed ten percent.

          (3) The rate of the income tax imposed on persons other than corporations in the act initially adopting an income tax shall be seven percent.  The rate of the income tax imposed on corporations in the act initially adopting an income tax shall be seven percent.  The maximum rate of state and local general sales and use taxes in the act initially adopting an income tax shall be four and eighty-five one-hundredths percent.

          (4) During any period in which an income tax is in effect:

          (a) The combined rate of state and local general sales and use taxes shall not exceed five percent.

          (b) The following ratios as established in the act initially adopting an income tax shall not be altered:

          (i) The ratio between the rate of the income tax imposed on individuals and the rate of the income tax imposed on corporations; and

          (ii) The ratio between the rate of the income tax imposed on individuals and the maximum rate of state general sales and use taxes.

          (5) The legislature may by law coordinate the administration and collection of state income taxes with the income tax laws, regulations, and procedures of the United States.  The legislature may adopt by reference any federal statutes relating to federal income taxes, including future amendments thereto.

          (6) As used in this section, "income tax" means a tax imposed on or measured by income as defined by the legislature.

          BE IT FURTHER RESOLVED, That the secretary of state shall cause notice of the foregoing constitutional amendment to be published at least four times during the four weeks next preceding the election in every legal newspaper in the state.