6244-S.E AMH .... H4423.2

ESSB 6244 - H AMD TO APP COMM AMD (H-4310.3/94) 1228BEYOND S/O22594

By Representatives Forner and Reams

    On page 142, after line 27 of the amendment, insert the following:

    "Sec. 907.  RCW 82.04.290 and 1993 sp.s. c 25 s 203 are each amended to read as follows:

    (1) Upon every person engaging within this state in the business of providing selected business services other than or in addition to those enumerated in RCW 82.04.250 or 82.04.270; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of ((2.5)) 1.5 percent.

    (2) Upon every person engaging within this state in banking, loan, security, investment management, investment advisory, or other financial businesses; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of 1.70 percent.

    (3) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, and 82.04.280, and subsections (1) and (2) of this section; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of ((2.0)) 1.5 percent.  This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale."  The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.

    Sec. 908.  RCW 82.04.300 and 1993 sp.s. c 25 s 205 are each amended to read as follows:

(1)(a) This chapter shall apply to any person engaging in any business activity taxable under RCW 82.04.230, 82.04.240, ((82.04.250,)) 82.04.255, 82.04.260, 82.04.270, 82.04.280, and 82.04.290(2) other than 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)) subsection.

(b) This chapter shall apply to any person engaging in any business activity taxable under RCW 82.04.250 other than those whose value of products, gross proceeds of sales, or gross income of the business is less than twenty-five thousand dollars per month.  However, where one person engages in more than one business activity and the combined measures of the tax applicable to such businesses equal or exceed twenty-five thousand dollars per month, no exemption or deduction for the amount of tax is allowed by this subsection.

(c) This chapter shall apply to any person engaging in any business activity taxable under RCW 82.04.290(1) and (3) other than those whose value of products, gross proceeds of sales, or gross income of the business is less than twelve thousand five hundred dollars per month.  However, where one person engages in more than one business activity and the combined measures of the tax applicable to such businesses equal or exceed twelve thousand five hundred dollars per month, no exemption or deduction for the amount of tax is allowed by this subsection.

(2) Any person claiming exemption under the provisions of this section may be required, according to rules adopted by the department, to file returns even though no tax may be due.  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.

NEW SECTION. Sec. 909.  The department of revenue may not recategorize entities or businesses impacted by sections 1 and 2 of this act in a manner that would effectively increase the rate of applicable taxation."

    Renumber the remaining sections consecutively and correct any internal references accordingly.

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