H-0897.1  _______________________________________________

                          HOUSE BILL 1809

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Ruderman, Thomas, Dunshee, Esser and K. Schmidt

Read first time 02/05/1999.  Referred to Committee on Finance.

Exempting certain cost-sharing agreements and persons in the travel service business from the business and occupation tax.

    AN ACT Relating to a tax exemption for certain amounts received by persons in the travel service business; and adding a new section to chapter 82.04 RCW.

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:

    This chapter does not apply to amounts proceeding or accruing (1) under a written cost-sharing agreement for allocable reimbursement of administrative services incurred on behalf of a foreign affiliate that engages in a travel service business and (2) by a person that engages in a travel service business and also holds a passenger vessel surety bond in compliance with Subpart A of Part 540 of Title 48, Code of Federal Regulations.  "Affiliate" means a person who directly or indirectly controls, or is controlled by, or is under common control with, a person.  "Foreign" means the affiliate is organized under laws outside the United States.

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