AN
ACT Relating to the business and occupation taxation of warehousing and
reselling of pharmaceutical drugs subject to regulation by the federal drug
enforcement administration and the state board of pharmacy; amending RCW
82.04.270, 82.04.280, 82.04.290, and 82.04.250; adding a new section to chapter
82.04 RCW; 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)
Upon every person engaging within this state in the business of warehousing and
reselling prescription drugs; as to such persons, the amount of the tax shall
be equal to the gross income of the business multiplied by the rate of 0.138
percent.
(2)
For the purposes of this section:
(a)
"Prescription drug" has the same meaning as that term is given in RCW
82.08.0281; and
(b)
"Warehousing and reselling prescription drugs" means the buying of
prescription drugs from a manufacturer or another wholesaler, and reselling of
the drugs to persons selling at retail or to hospitals, clinics, health care
providers, or other providers of health care services, by a wholesaler or
retailer who is registered with the federal drug enforcement administration and
licensed by the state board of pharmacy.
Sec.
2. RCW
82.04.270 and 1994 c 124 s 2 are each amended to read as follows:
(1)
Upon every person except persons taxable under ((subsections (1) or (8) of))
RCW 82.04.260 (1) or (8) or section 1 of this act engaging within this
state in the business of making sales at wholesale; as to such persons the
amount of tax with respect to such business shall be equal to the gross
proceeds of sales of such business multiplied by the rate of 0.484 percent.
(2)
The tax imposed by this section is levied and shall be collected from every
person engaged in the business of distributing in this state articles of tangible
personal property, owned by them from their own warehouse or other central
location in this state to two or more of their own retail stores or outlets,
where no change of title or ownership occurs, the intent hereof being to impose
a tax equal to the wholesaler's tax upon persons performing functions
essentially comparable to those of a wholesaler, but not actually making
sales. The tax designated in this section may not be assessed twice to the
same person for the same article. The amount of the tax as to such persons
shall be computed by multiplying 0.484 percent of the value of the article so
distributed as of the time of such distribution. The department of revenue
shall prescribe uniform and equitable rules for the purpose of ascertaining such
value, which value shall correspond as nearly as possible to the gross proceeds
from sales at wholesale in this state of similar articles of like quality and
character, and in similar quantities by other taxpayers. Delivery trucks or
vans will not under the purposes of this section be considered to be retail
stores or outlets.
Sec.
3. RCW
82.04.280 and 1994 c 112 s 1 are each amended to read as follows:
Upon
every person engaging within this state in the business of: (1) Printing, and
of publishing newspapers, periodicals, or magazines; (2) building, repairing or
improving any street, place, road, highway, easement, right of way, mass public
transportation terminal or parking facility, bridge, tunnel, or trestle which
is owned by a municipal corporation or political subdivision of the state or by
the United States and which is used or to be used, primarily for foot or
vehicular traffic including mass transportation vehicles of any kind and
including any readjustment, reconstruction or relocation of the facilities of
any public, private or cooperatively owned utility or railroad in the course of
such building, repairing or improving, the cost of which readjustment,
reconstruction, or relocation, is the responsibility of the public authority
whose street, place, road, highway, easement, right of way, mass public
transportation terminal or parking facility, bridge, tunnel, or trestle is
being built, repaired or improved; (3) extracting for hire or processing for
hire; (4) operating a cold storage warehouse or storage warehouse, but not
including the rental of cold storage lockers; (5) representing and performing
services for fire or casualty insurance companies as an independent resident
managing general agent licensed under the provisions of RCW 48.05.310; (6)
radio and television broadcasting, excluding network, national and regional
advertising computed as a standard deduction based on the national average
thereof as annually reported by the Federal Communications Commission, or in
lieu thereof by itemization by the individual broadcasting station, and
excluding that portion of revenue represented by the out-of-state audience
computed as a ratio to the station's total audience as measured by the 100
micro-volt signal strength and delivery by wire, if any; (7) engaging in
activities which bring a person within the definition of consumer contained in
RCW 82.04.190(6); as to such persons, the amount of tax on such business shall
be equal to the gross income of the business multiplied by the rate of 0.484
percent.
As
used in this section, "cold storage warehouse" means a storage
warehouse used to store fresh and/or frozen perishable fruits or vegetables,
meat, seafood, dairy products, or fowl, or any combination thereof, at a
desired temperature to maintain the quality of the product for orderly
marketing.
As
used in this section, "storage warehouse" means a building or
structure, or any part thereof, in which goods, wares, or merchandise are
received for storage for compensation, except field warehouses, fruit
warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW,
public garages storing automobiles, railroad freight sheds, docks and wharves,
and "self-storage" or "mini storage" facilities whereby
customers have direct access to individual storage areas by separate entrance.
"Storage warehouse" does not include a building or structure, or
that part of such building or structure, in which an activity taxable under
section 1 of this act is conducted.
As
used in this section, "periodical or magazine" means a printed
publication, other than a newspaper, issued regularly at stated intervals at
least once every three months, including any supplement or special edition of
the publication.
Sec.
4. RCW
82.04.290 and 1997 c 7 s 2 are each amended to read as follows:
(1)
Upon every person engaging within this state in the business of providing
international investment management services, as to such persons, the amount of
tax with respect to such business shall be equal to the gross income or gross
proceeds of sales of the business multiplied by a rate of 0.275 percent.
(2)
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 section 1 of
this act, and subsection (1) 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 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.
Sec.
5. RCW
82.04.250 and 1993 sp.s. c 25 s 103 are each amended to read as follows:
(1)
Upon every person except persons taxable under RCW 82.04.260(8), section 1
of this act, or subsection (2) of this section engaging within this state
in the business of making sales at retail, as to such persons, the amount of
tax with respect to such business shall be equal to the gross proceeds of sales
of the business, multiplied by the rate of 0.471 percent.
(2)
Upon every person engaging within this state in the business of making sales at
retail that are exempt from the tax imposed under chapter 82.08 RCW by reason
of RCW 82.08.0261, 82.08.0262, or 82.08.0263, as to such persons, the amount of
tax with respect to such business shall be equal to the gross proceeds of sales
of the business, multiplied by the rate of 0.484 percent.
NEW SECTION. Sec. 6. This
act takes effect July 1, 2001.
