H-3906.2  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2671

          _______________________________________________

State of Washington      53rd Legislature     1994 Regular Session

By House Committee on Revenue (originally sponsored by Representatives G. Fisher, Foreman, Holm, Mastin, Kremen, Roland, Kessler, Dellwo, Karahalios, Chappell, Conway, R. Johnson, J. Kohl, Patterson, Finkbeiner, Springer, Brown, Dunshee, Shin, Campbell, Dorn, Lemmon, Bray, R. Meyers, Basich, Johanson, Pruitt, Ogden, Wolfe, Sheldon, Caver, Quall, Jacobsen, Jones, Romero, Moak, Valle, H. Myers, King, Cothern, Morris, Backlund, Van Luven, Rayburn, Long, L. Johnson and Anderson)

Read first time 02/04/94.

Reducing gross receipts taxes for small businesses.

    AN ACT Relating to gross receipts tax relief for small businesses; amending RCW 82.32.030 and 70.95E.020; adding a new section to chapter 82.04 RCW; repealing RCW 82.04.300; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) In computing the tax imposed under this chapter, a credit is allowed against the amount of tax otherwise due under this chapter, as provided in this section.  The maximum credit for a taxpayer for a reporting period is sixty dollars multiplied by the number of months in the reporting period, as determined under RCW 82.32.045.

    (2) When the amount of tax otherwise due under this chapter is equal to or less than the maximum credit, a credit is allowed equal to the amount of tax otherwise due under this chapter.

    (3) When the amount of tax otherwise due under this chapter exceeds the maximum credit, a reduced credit is allowed equal to twice the maximum credit, minus the tax otherwise due under this chapter, but not less than zero.

    Sec. 2.  RCW 82.32.030 and 1992 c 206 s 8 are each amended to read as follows:

    (1) Except as provided in subsection (2) of this section, if any person engages in any business or performs any act upon which a tax is imposed by the preceding chapters, he or she shall, under such rules as the department of revenue shall prescribe, apply for and obtain from the department a registration certificate ((upon payment of fifteen dollars)).  Such registration certificate shall be personal and nontransferable and shall be valid as long as the taxpayer continues in business and pays the tax accrued to the state.  In case business is transacted at two or more separate places by one taxpayer, a separate registration certificate for each place at which business is transacted with the public shall be required((, but, for such additional certificates no additional payment shall be required)).  Each certificate shall be numbered and shall show the name, residence, and place and character of business of the taxpayer and such other information as the department of revenue deems necessary and shall be posted in a conspicuous place at the place of business for which it is issued.  Where a place of business of the taxpayer is changed, the taxpayer must return to the department the existing certificate, and a new certificate will be issued for the new place of business ((free of charge)).  No person required to be registered under this section shall engage in any business taxable hereunder without first being so registered.  The department, by rule, may provide for the issuance of certificates of registration((, without requiring payment,)) to temporary places of business ((or to persons who are exempt from tax under RCW 82.04.300)).

    (2) Registration under this section is not required if the following conditions are met:

    (a) A person's value of products, gross proceeds of sales, or gross income of the business ((is below the tax reporting threshold provided in RCW 82.04.300)), from all business activities, is less than twelve thousand dollars per year;

    (b) The person is not required to collect or pay to the department of revenue any other tax which the department is authorized to collect; and

    (c) The person is not otherwise required to obtain a license subject to the master application procedure provided in chapter 19.02 RCW.

    Sec. 3.  RCW 70.95E.020 and 1990 c 114 s 12 are each amended to read as follows:

    A fee is imposed for the privilege of generating or potentially generating hazardous waste in the state.  The annual amount of the fee shall be thirty-five dollars upon every known generator or potential generator doing business in Washington in the current calendar year or any part thereof.  This fee shall be collected by the department of revenue.  A potential generator shall be exempt from the fee imposed under this section if the ((potential generator is entitled to the exemption in RCW 82.04.300)) value of products, gross proceeds of sales, or gross income of the business, from all business activities of the potential generator, is less than twelve thousand dollars in the current calendar year.  The department shall, subject to appropriation, use the funds collected from the fees assessed in this subsection to support the activities of the office of waste reduction as specified in RCW 70.95C.030.  The fee imposed pursuant to this section shall be first due on July 31, 1990, for any generator or potential generator operating in Washington from March 21, 1990, to December 31, 1990, or any part thereof.

NEW SECTION. Sec. 4.  RCW 82.04.300 and 1992 c 206 s 7, 1983 c 3 s 213, 1979 ex.s. c 196 s 4, 1975 1st ex.s. c 278 s 41, 1961 c 293 s 3, & 1961 c 15 s 82.04.300 are each repealed.

NEW SECTION. Sec. 5.  This act shall take effect on July 1, 1994.

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