AN
ACT Relating to simplifying tax reporting by revising the active nonreporting
threshold so that it parallels the small business credit; amending RCW
82.32.045 and 82.32.080; creating a new section; providing an effective date;
and declaring an emergency.
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 also require verified annual returns from any
taxpayer, setting forth such additional information as it may deem necessary to
correctly determine tax liability.
(4)
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)) twenty-eight 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. It is
the intent of the legislature to allow the department of revenue to increase
its ability to provide timely and cost-effective service to taxpayers.
Sec.
3. RCW
82.32.080 and 1997 c 156 s 3 are each amended to read as follows:
Payment
of the tax may be made by uncertified check under such regulations as the
department shall prescribe, but, if a check so received is not paid by the bank
on which it is drawn, the taxpayer, by whom such check is tendered, shall
remain liable for payment of the tax and for all legal penalties, the same as
if such check had not been tendered.
Payment
of the tax shall be made by electronic funds transfer, as defined in RCW
82.32.085, if the amount of the tax due in a calendar year is one million eight
hundred thousand dollars or more. The department may by rule provide for tax
thresholds between two hundred forty thousand dollars and one million eight
hundred thousand dollars for mandatory use of electronic funds transfer. All
taxes administered by this chapter are subject to this requirement except the
taxes authorized by chapters 82.14A, 82.14B, 82.24, 82.27, 82.29A, and 84.33
RCW. It is the intent of this section to require electronic funds transfer for
those taxes reported on the department's combined excise tax return or any
successor return.
A
return or remittance which is transmitted to the department by United States
mail shall be deemed filed or received on the date shown by the post office
cancellation mark stamped upon the envelope containing it, except as otherwise
provided in this chapter. The department is authorized to allow electronic
filing of returns or remittances from any taxpayer. A return or remittance
which is transmitted to the department electronically shall be deemed filed or
received according to procedures set forth by the department.
The
department, for good cause shown, may extend the time for making and filing any
return, and may grant such reasonable additional time within which to make and
file returns as it may deem proper, but any permanent extension granting the
taxpayer a reporting date without penalty more than ten days beyond the due
date, and any extension in excess of thirty days shall be conditional on
deposit with the department of an amount to be determined by the department
which shall be approximately equal to the estimated tax liability for the
reporting period or periods for which the extension is granted. In the case of
a permanent extension or a temporary extension of more than thirty days the
deposit shall be deposited within the state treasury with other tax funds and a
credit recorded to the taxpayer's account which may be applied to taxpayer's
liability upon cancellation of the permanent extension or upon reporting of the
tax liability where an extension of more than thirty days has been granted.
The
department shall review the requirement for deposit at least annually and may
require a change in the amount of the deposit required when it believes that
such amount does not approximate the tax liability for the reporting period or
periods for which the extension is granted.
The
department shall keep full and accurate records of all funds received and
disbursed by it. Subject to the provisions of RCW 82.32.105 and 82.32.350, the
department shall apply the payment of the taxpayer first against penalties and
interest, and then upon the tax, without regard to any direction of the
taxpayer.
The
department may refuse to accept any return which is not accompanied by a
remittance of the tax shown to be due thereon. When such return is not
accepted, the taxpayer shall be deemed to have failed or refused to file a
return and shall be subject to the procedures provided in RCW 82.32.100 and to
the penalties provided in RCW 82.32.090. The above authority to refuse to
accept a return shall not apply when a return is timely filed and a timely
payment has been made by electronic funds transfer.
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, 1999.
