S-3775               _______________________________________________

                                                   SENATE BILL NO. 6233

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

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

Read first time 1/9/90 and referred to Committee on Economic Development & Labor.

AN ACT Relating to the business and occupation tax as applied to new businesses; and amending RCW 82.04.300.

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

        Sec. 1.  Section 82.04.300, chapter 15, Laws of 1961 as last amended by section 213, chapter 3, Laws of 1983 and RCW 82.04.300 are each amended to read as follows:

(1) This chapter shall apply to any person engaging in any business activity taxable under RCW 82.04.230, 82.04.240, 82.04.250, 82.04.260, 82.04.270, 82.04.280 and 82.04.290 other than:

(a) Those whose value of products, gross proceeds of sales, or gross income of the business is less than one thousand dollars per month:  PROVIDED, That where one person engages in more than one business activity and the combined measures of the tax applicable to such businesses equal or exceed one thousand dollars per month, no exemption or deduction from the amount of tax is allowed by this section; and

(b) Businesses whose initial licensure date is June 1, 1990, or after, and whose value of products, gross proceeds of sales, or gross income of the business does not exceed one hundred thousand dollars per year.  This exemption is only available for the three years following initial licensure.  A person claiming this exemption shall be able to demonstrate, when requested, that their business activity is not part of an ongoing business which existed before June 1, 1990, and that a change in ownership or a reincorporation did not occur in order to be eligible for this exemption.

(2) Any person claiming exemption under the provisions of this section may be required to file returns even though no tax may be due:  PROVIDED, FURTHER, That the department of revenue may allow exemptions, by general rule or regulation, in those instances in which quarterly, semiannual, or annual returns are permitted.  Exemptions for such periods shall be equivalent in amount to the total of exemptions for each month of a reporting period.