SENATE BILL REPORT

SB 6052

BYSenators McDonald, Gaspard, Hayner, Smitherman, Smith, Vognild, Metcalf, Wojahn, Thorsness, Stratton, Johnson, Anderson and Owen

Imposing a sales tax on adult entertainment materials and services.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 16, 1989; March 31, 1989

Majority Report:  That Substitute Senate Bill No. 6052 be substituted therefor, and the substitute bill do pass.

      Signed by McDonald, Chairman; Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Johnson, Lee, Newhouse, Owen, Saling, Smith, Warnke, Williams, Wojahn.

Senate Staff:Terry Wilson (786-7715)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 31, 1989

BACKGROUND:

The 6.5 percent state retail sales and use tax applies to the retail sale or use of tangible personal property in this state. The tax applies to a limited number of services.

SUMMARY:

A 25 percent tax is imposed on the retail sale or use of adult entertainment materials in lieu of the 6.5 percent tax.  In addition, the tax is extended to adult entertainment services at a 25 percent rate.

Adult entertainment materials and services are defined as those entertainment materials and services that are primarily oriented to an interest in sex, including magazines, photographs, motion pictures, videotapes, videodiscs, cable television services, telephone services, audiotapes, computer programs, and paraphernalia.  The term does not include (a) books or magazines that contain no pictures or other graphics or (b) motion pictures, videotapes, videodiscs, or cable television services that do not contain any explicit sex of the type that would be rated "X" using the standards of the Motion Picture Association of America.  Any visual medium that contains explicit sex is considered to be primarily oriented to an interest in sex.

EFFECT OF PROPOSED SUBSTITUTE:

Revenues from the tax on adult entertainment materials and services are deposited into the public safety and education account to be used for crime victims' compensation.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Robert Seeber, Washington Publications Distributors Association; Paul Conrad, Allied Daily Newspapers; Jan Gee, Washington Retailers Association