Z-0179.1 _______________________________________________
HOUSE BILL 1547
_______________________________________________
State of Washington 55th Legislature 1997 Regular Session
By Representatives Skinner, Clements and Honeyford; by request of Department of Revenue
Read first time 01/30/97. Referred to Committee on Finance.
AN ACT Relating to the taxation of membership sales in discount programs; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective date; and declaring an emergency.
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 be codified between RCW 82.04.220 and 82.04.290 to read as follows:
(1) Upon every person engaging within this state in the business of selling memberships in a qualifying discount program; as to such persons the amount of the tax with respect to such business shall be equal to the value of the gross income of the business multiplied by the rate of 0.471 percent.
(2) For the purposes of this chapter, "qualifying discount program" means a membership program, club, or plan that entitles the member to discounts on services or products sold by others. The term does not include any discount program which in part or in total entitles the member to discounts on services or products sold by the seller of the membership or an affiliate of the seller of the membership. "Affiliate," for the purposes of this section, means any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the seller.
(3) Persons subject to taxation under this section are not subject to payment of tax on that portion of the membership sales where the seller delivers the membership materials to the purchaser who receives them at a point outside this state.
NEW SECTION. Sec. 2. A new section is added to chapter 82.08 RCW to read as follows:
The tax levied by RCW 82.08.020 shall not apply to sales of membership materials to be provided to members of a qualifying discount program, as defined in section 1 of this act. "Membership materials" include, but are not necessarily limited to, coupon books, participating vendor directories, and membership identification cards.
NEW SECTION. Sec. 3. A new section is added to chapter 82.12 RCW to read as follows:
The provisions of this chapter shall not apply to the use of membership materials by a member of a qualifying discount program, as defined in section 1 of this act. "Membership materials" include, but are not necessarily limited to, coupon books, participating vendor directories, and membership identification cards.
NEW SECTION. Sec. 4. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.
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