2089 AMH THOB LONG 190

HB 2089 ‑ H AMD to AMD (H2954.1)845 ADOPTED 4/13/95

By Representative B. Thomas

     On page 1, after line 5, strike the remainder of the amendment and insert:

     "NEW SECTION. Sec. 19.  The legislature finds:

(1) Washington is the only state to impose a business and occupation tax upon gross income as its primary business tax;

(2) The business and occupation tax is unrelated to a business's ability to pay;

(3) The business and occupation tax arbitrarily penalizes businesses with low-profit margins, such as new businesses, high turnover businesses, and small, nonvertically integrated businesses;

(4) The business and occupation tax results in multiple taxation by taxing full gross income at each stage of production, including manufacturing, wholesaling, and retailing; and

(5) The business and occupation tax does not encourage economic development.

NEW SECTION. Sec. 20.  There is hereby created a joint select committee on business tax reform composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives.  The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee.  The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW.  Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the joint select committee.  The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

NEW SECTION. Sec. 21.  The joint select committee on  business tax reform shall complete a thorough review of Washington's business tax system.  The committee shall examine alternatives to the current business and occupation tax and recommend changes that would increase the overall fairness of the state's business tax system, reduce tax burdens for small businesses, and encourage economic development. The joint select committee on business tax reform shall submit its final report to the legislature by December 31, 1995."

     Renumber sections consecutively, correct any internal references accordingly, and correct the title.