AN
ACT Relating to business and occupation tax on the handling of hay, alfalfa,
and seed; amending RCW 82.04.290; reenacting and amending RCW 82.04.260; adding
new sections to chapter 82.04 RCW; providing an effective date; and providing
contingent effective dates.
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:
Upon
every person engaging within this state in the business of making wholesale
sales to farmers of seed conditioned for use in planting and not packaged for
retail sale, or in the business of conditioning seed for planting owned by
others; the tax imposed shall be equal to the gross proceeds derived from such
sales multiplied by the rate of 0.011 percent.
For
the purposes of this section, "seed" means seed potatoes and all
other "agricultural seed" as defined in RCW 15.49.011.
"Seed" does not include "flower seeds" or "vegetable
seeds" as defined in RCW 15.49.011, or any other seeds or propagative
portions of plants used to grow ornamental flowers or used to grow any type of
bush, moss, fern, shrub, or tree.
NEW
SECTION. Sec. 2. A
new section is added to chapter 82.04 RCW to read as follows:
(1)
This chapter does not apply to amounts received by a person engaging within
this state in the business of: (a) Making wholesale sales to farmers of seed
conditioned for use in planting and not packaged for retail sale; or (b)
conditioning seed for planting owned by others.
(2)
For the purposes of this section, "seed" means seed potatoes and all
other "agricultural seed" as defined in RCW 15.49.011.
"Seed" does not include "flower seeds" or "vegetable
seeds" as defined in RCW 15.49.011, or any other seeds or propagative
portions of plants used to grow ornamental flowers or used to grow any type of
bush, moss, fern, shrub, or tree.
Sec.
3. 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.
4. RCW
82.04.260 and 1996 c 148 s 2 and 1996 c 115 s 1 are each reenacted and amended
to read as follows:
(1)
Upon every person engaging within this state in the business of buying wheat,
oats, dry peas, dry beans, lentils, triticale, canola, corn, rye and barley, but
not including any manufactured ((or processed)) products thereof, and
selling the same at wholesale; the tax imposed shall be equal to the gross
proceeds derived from such sales multiplied by the rate of 0.011 percent.
(2)
Upon every person engaging within this state in the business of manufacturing
wheat into flour, barley into pearl barley, soybeans into soybean oil, canola
into canola oil, canola meal, or canola byproducts, or sunflower seeds into
sunflower oil; as to such persons the amount of tax with respect to such
business shall be equal to the value of the flour, pearl barley, oil, canola
meal, or canola byproduct manufactured, multiplied by the rate of 0.138
percent.
(3)
Upon every person engaging within this state in the business of splitting or
processing dried peas; as to such persons the amount of tax with respect to
such business shall be equal to the value of the peas split or processed,
multiplied by the rate of 0.275 percent.
(4)
Upon every person engaging within this state in the business of manufacturing
seafood products which remain in a raw, raw frozen, or raw salted state at the
completion of the manufacturing by that person; as to such persons the amount
of tax with respect to such business shall be equal to the value of the products
manufactured, multiplied by the rate of 0.138 percent.
(5)
Upon every person engaging within this state in the business of manufacturing
by canning, preserving, freezing, processing, or dehydrating fresh fruits and
vegetables, or selling at wholesale fresh fruits and vegetables canned,
preserved, frozen, processed, or dehydrated by the seller and sold to
purchasers who transport in the ordinary course of business the goods out of
this state; as to such persons the amount of tax with respect to such business
shall be equal to the value of the products canned, preserved, frozen,
processed, or dehydrated multiplied by the rate of 0.33 percent. As proof of
sale to a person who transports in the ordinary course of business goods out of
this state, the seller shall annually provide a statement in a form prescribed
by the department and retain the statement as a business record.
(6)
Upon every nonprofit corporation and nonprofit association engaging within this
state in research and development, as to such corporations and associations,
the amount of tax with respect to such activities shall be equal to the gross
income derived from such activities multiplied by the rate of 0.484 percent.
(7)
Upon every person engaging within this state in the business of slaughtering,
breaking and/or processing perishable meat products and/or selling the same at
wholesale only and not at retail; as to such persons the tax imposed shall be
equal to the gross proceeds derived from such sales multiplied by the rate of
0.138 percent.
(8)
Upon every person engaging within this state in the business of making sales,
at retail or wholesale, of nuclear fuel assemblies manufactured by that person,
as to such persons the amount of tax with respect to such business shall be
equal to the gross proceeds of sales of the assemblies multiplied by the rate
of 0.275 percent.
(9)
Upon every person engaging within this state in the business of manufacturing
nuclear fuel assemblies, as to such persons the amount of tax with respect to
such business shall be equal to the value of the products manufactured
multiplied by the rate of 0.275 percent.
(10)
Upon every person engaging within this state in the business of acting as a
travel agent or tour operator; as to such persons the amount of the tax with
respect to such activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(11)
Upon every person engaging within this state in business as an international
steamship agent, international customs house broker, international freight
forwarder, vessel and/or cargo charter broker in foreign commerce, and/or
international air cargo agent; as to such persons the amount of the tax with
respect to only international activities shall be equal to the gross income
derived from such activities multiplied by the rate of 0.363 percent.
(12)
Upon every person engaging within this state in the business of stevedoring and
associated activities pertinent to the movement of goods and commodities in
waterborne interstate or foreign commerce; as to such persons the amount of tax
with respect to such business shall be equal to the gross proceeds derived from
such activities multiplied by the rate of 0.363 percent. Persons subject to
taxation under this subsection shall be exempt from payment of taxes imposed by
chapter 82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to the
conduct of goods and commodities in waterborne interstate or foreign commerce
are defined as all activities of a labor, service or transportation nature
whereby cargo may be loaded or unloaded to or from vessels or barges, passing
over, onto or under a wharf, pier, or similar structure; cargo may be moved to
a warehouse or similar holding or storage yard or area to await further
movement in import or export or may move to a consolidation freight station and
be stuffed, unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for delivery to
its consignee. Specific activities included in this definition are: Wharfage,
handling, loading, unloading, moving of cargo to a convenient place of delivery
to the consignee or a convenient place for further movement to export mode;
documentation services in connection with the receipt, delivery, checking,
care, custody and control of cargo required in the transfer of cargo; imported
automobile handling prior to delivery to consignee; terminal stevedoring and
incidental vessel services, including but not limited to plugging and
unplugging refrigerator service to containers, trailers, and other refrigerated
cargo receptacles, and securing ship hatch covers.
(13)
Upon every person engaging within this state in the business of disposing of
low-level waste, as defined in RCW 43.145.010; as to such persons the amount of
the tax with respect to such business shall be equal to the gross income of the
business, excluding any fees imposed under chapter 43.200 RCW, multiplied by
the rate of 3.3 percent.
If
the gross income of the taxpayer is attributable to activities both within and
without this state, the gross income attributable to this state shall be
determined in accordance with the methods of apportionment required under RCW
82.04.460.
(14)
Upon every person engaging within this state as an insurance agent, insurance
broker, or insurance solicitor licensed under chapter 48.17 RCW; as to such
persons, the amount of the tax with respect to such licensed activities shall
be equal to the gross income of such business multiplied by the rate of 0.55
percent.
(15)
Upon every person engaging within this state in business as a hospital, as
defined in chapter 70.41 RCW, that is operated as a nonprofit corporation or by
the state or any of its political subdivisions, as to such persons, the amount
of tax with respect to such activities shall be equal to the gross income of
the business multiplied by the rate of 0.75 percent through June 30, 1995, and
1.5 percent thereafter. The moneys collected under this subsection shall be
deposited in the health services account created under RCW 43.72.900.
NEW
SECTION. Sec. 5. (1)
Sections 1 and 3 of this act take effect only if House Bill No. 2335 fails to
become law.
(2)
Section 2 of this act takes effect only if House Bill No. 2335 becomes law.
NEW
SECTION. Sec. 6. This
act takes effect July 1, 1998.
