S-4948               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 6859

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators McDonald, Gaspard, Hayner, Vognild, Bluechel, Sellar, Warnke, Saling, Owen, Cantu, Amondson, Johnson, Moore, Newhouse, Smith, Bauer and Sutherland)

Read first time 2/6/90.

AN ACT Relating to the tax status of computer software; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1.     For property taxes due in 1991, a county assessor shall collect taxes on  computer software in the same manner and to the same extent as the county collected taxes on computer software for taxes due in 1989.

NEW SECTION. Sec. 2.     (1) The department of revenue shall establish a committee to study the taxation of computer software.  The committee shall consist of a representative of the department of revenue, a tax law specialist, and representatives of county assessors, computer software development companies, computer hardware development companies, and large and small businesses that use computer software.  The committee shall be chaired by a member of the private sector.  The department shall consult with the chairmen of the legislative fiscal committees dealing with revenue matters regarding composition of the committee.

          (2) The committee shall be staffed by the department of revenue.

          (3) The committee shall study the tax status of computer software in this and other states to determine if and to what extent computer software should be subject to property tax in this state.  In considering the tax status of computer software, the committee shall compare its taxability with the tax treatment of other property and shall consider potential equal protection issues.

          (4) The department shall report the findings of the committee to the legislative fiscal committees dealing with revenue matters no later than November 30, 1990.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.