SENATE BILL REPORT

SB 5155

BYSenators Wojahn, Anderson, Madsen, Bauer, Vognild, Warnke, Lee, Niemi, Smith and McMullen

Providing a business and occupation tax deduction for capital and operation expenses related to child care facilities.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 16, 1989; February 21, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Matson, Moore, Newhouse, Niemi, Owen, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Terry Wilson (786-7715)

                  March 3, 1989

AS PASSED SENATE, MARCH 2, 1989

BACKGROUND:

The business and occupation tax is imposed on the privilege of doing business in this state.  Most businesses pay this tax.

SUMMARY:

A business and occupation tax deduction is allowed equal to amounts expended by the taxpayer for capital and operating expenses incurred in providing on-site child care for employees or to directly purchase child care services for employees.  The deduction is not allowed if the services are provided outside the state.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Lonnie Johns-Brown, Washington State NOW (pro)