SENATE BILL REPORT

 

 

                                    SB 6233

 

 

BYSenators Lee, Nelson, Bluechel, Hayner, Bailey, Amondson, Smith, von Reichbauer, Thorsness, Sellar, Benitz, Craswell, Warnke, Smitherman and Barr

 

 

Providing a business and occupation tax exemption for certain new businesses.

 

 

Senate Committee on Economic Development & Labor

 

      Senate Hearing Date(s):January 25, 1990; January 29, 1990

 

Majority Report:  Do pass and be referred to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Murray, Saling, Smitherman, Warnke.

 

      Senate Staff:Forrest Bathurst (786-7429)

                  January 29, 1990

 

 

  AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 29, 1990

 

BACKGROUND:

 

The business and occupation tax places a financial burden on businesses by lengthening the time frame needed for them to become profitable.  This longer time frame causes financial ramifications that discourage entrepreneurship and the creation of new business organizations in Washington State.

 

SUMMARY:

 

Businesses with a June 1, 1990 date of licensure, or after, are exempt from the business and occupation tax for a period of three years if they have gross annual revenues less than $100,000 and can demonstrate they are not part of an ongoing business entity.

 

Appropriation:    none

 

Revenue:    none

 

Fiscal Note:      requested January 19, 1990

 

Effective Date:June 1, 1990

 

Senate Committee - Testified: Robert Dilger (con)