2089 AMH CHAP H3083.1

2089 AMH CHAP H3083.1

HB 2089 - H AMD TO H AMD (H-3080.1/95) 855 WITHDRAWN 4/13/95

By Representative Chappell

On page 22, after line 6 of the amendment, insert the following:

"NEW SECTION. Sec. 19. A new section is added to chapter 82.04 RCW to read as follows:

(1) During the first sixty months of operation, a new business with fewer than ten employees is exempt from taxes due under this chapter according to the following schedule:

Year Exemption

1 50%

2 50%

3 50%

4 35%

5 20%

after 5 0%

A business is not eligible for exemption under this section after the sixtieth month of operation.

(2) As used in this section:

(a) "New business" means a business that obtained or was required to obtain a registration certificate under RCW 82.32.030 for the first time during the calendar year for which exemption is first claimed under this chapter.

(b) "New business" does not include:

(i) A business that has been restructured, reorganized, or transferred, unless the majority of the activities to be conducted after restructuring, reorganization, or transferral are significantly different from the activities previously conducted;

(ii) A new branch location or other facility except by an existing out-of-state entity first doing business in this state;

(iii) A business that is substantially similar to a business currently operated, or operated within the past five years, by the same principals.

The department may require a new business to certify its status as part of its master business application, or with the first tax return claiming exemption under this section."

Renumber remaining sections consecutively and correct internal references.