S-3724.1                   _______________________________________________

                                                     SENATE BILL 6239

                              _______________________________________________

State of Washington                              53rd Legislature                             1994 Regular Session

By Senators Bluechel, McDonald, Cantu, Oke, Sellar, Erwin, Roach and Nelson

Read first time 01/17/94.  Referred to Committee on Ways & Means.

Decreasing business and occupation taxes.

          AN ACT Relating to decreasing business and occupation taxes; and amending RCW 82.04.290.

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

        Sec. 1.  RCW 82.04.290 and 1993 1st 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)) 1.5 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.

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