H-2381

AN ACT Relating to revising laws impacting retailer tax collection and remittance; amending RCW 82.32.045; adding a new section to chapter 35.58 RCW; adding a new section to chapter to 44.04 RCW; adding a new section to chapter 81.104 RCW; adding a new section to chapter 82.14 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 82.32.045 and 1996 c 111 s 3 are each amended to read as follows:

(1) Except as otherwise provided in this chapter, payments of the taxes imposed under chapters 82.04, 82.08, 82.12, 82.14, and 82.16 RCW, along with reports and returns on forms prescribed by the department, are due monthly within twenty-five days after the end of the month in which the taxable activities occur.

(2) The department of revenue may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. For these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.

(3) The department of revenue may implement through rule a procedure for the remittance of estimated tax if, after review and examination of the advantages and disadvantages to the department and to taxpayers, the department finds that the advantages outweigh the disadvantages and that implementation would be an improvement over the existing reporting system. As part of the review and examination, the department shall seek input from taxpayers on this issue and shall consult with other states regarding experience with estimated tax. The department must make a "yes" or "no" decision regarding whether it will implement an estimated tax procedure by December 1, 1999, and shall in writing inform the fiscal committees of the senate and the house of representatives of the decision to proceed or not proceed with a rule.

(4) The department of revenue may also require verified annual returns from any taxpayer, setting forth such additional information as it may deem necessary to correctly determine tax liability.

((~~(4)~~)) (5) Notwithstanding subsections (1) and (2) of this section, the department may relieve any person of the requirement to file returns if the following conditions are met:

(a) The person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter 82.04 RCW, is less than twenty-four thousand dollars per year;

(b) The person's gross income of the business from all activities taxable under chapter 82.16 RCW is less than twenty-four thousand dollars per year; and

(c) The person is not required to collect or pay to the department of revenue any other tax or fee which the department is authorized to collect.

NEW SECTION. Sec. 2. The legislature finds that retailers have an important role in the state's tax system by collecting sales tax from consumers and remitting it to the state. Changes to the tax system, such as rate or exemption changes place an accounting and organizational burden on these businesses. In recognition of that burden, it is the intent of the legislature to limit changes to state and local sales and use tax to once a year. Additionally, it is the intent of the legislature to require the local government enacting or revising a tax to give advance notice to the department of revenue of any such change so that the department may provide adequate notice to retailers of pending changes. Sections 3 through 6 of this act are intended to minimize the retailer computer reprogramming costs that result from changes in the tax.

NEW SECTION. Sec. 3. A new section is added to chapter 35.58 RCW to read as follows:

In order to lessen the disruption on sellers, ordinances enacting or revising a sales and use tax under the authority of this chapter shall require ordinances to take effect October 1st. Ordinances must be enacted no later than July 1st to take effect the following October 1st. The department of revenue must receive notice of any changes to taxes authorized under this chapter no later than fifteen days after the date of enactment of such changes. The department of revenue must notify the sellers responsible for collecting the tax of the change not less than sixty days prior to the effective date.

NEW SECTION. Sec. 4. A new section is added to chapter 44.04 RCW to read as follows:

In order to lessen the disruption on sellers, legislation enacting or revising a sales and use tax under chapters 82.08, 82.12, and 82.14 RCW shall provide that the act take effect October 1st. The department of revenue must notify the sellers responsible for collecting the tax of the change not less than sixty days prior to the effective date.

NEW SECTION. Sec. 5. A new section is added to chapter 81.104 RCW to read as follows:

NEW SECTION. Sec. 6. A new section is added to chapter 82.14 RCW to read as follows: