H-1294              _______________________________________________

                                                   HOUSE BILL NO. 2047

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Holland, Fraser, Horn, Brumsickle and Basich

Read first time 2/17/89 and referred to Committee on Revenue.

AN ACT Relating to the definition of "gross proceeds of sales"; and amending RCW 82.04.070.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 82.04.070, chapter 15, Laws of 1961 and RCW 82.04.070 are each amended to read as follows:

          "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property and/or for services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses:  PROVIDED, That "gross proceeds of sales" shall not include the value of core deposits or credits when received or transferred as consideration in a retail or wholesale sale.  For purposes of this section, the term "core deposits or credits" means the amount representing the value of returnable products such as batteries, starters, brakes, and other products with returnable value added for the purpose of recycling or remanufacturing.