AN
ACT Relating to the taxation of grocery distribution cooperatives; amending RCW
82.04.270, 82.04.270, 82.19.050, and 82.19.050; reenacting and amending RCW
82.04.290, 82.04.290, and 82.04.290; adding a new section to chapter 82.04 RCW;
providing effective dates; providing expiration dates; and declaring an
emergency.
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)
The amount of tax with respect to a qualified grocery distribution
cooperative's sales of groceries or related goods for resale, excluding items
subject to tax under RCW 82.04.260(4), to customer-owners of the grocery
distribution cooperative is equal to the gross proceeds of sales of the grocery
distribution cooperative multiplied by the rate of one and one‑half
percent.
(2)
A qualified grocery distribution cooperative is allowed a deduction from the
gross proceeds of sales of groceries or related goods for resale, excluding
items subject to tax under RCW 82.04.260(4), to customer-owners of the grocery
distribution cooperative that is equal to the portion of the gross proceeds of
sales for resale that represents the actual cost of the merchandise sold by the
grocery distribution cooperative to customer-owners.
(3)
The definitions in this subsection apply throughout this section unless the
context clearly requires otherwise.
(a)
"Grocery distribution cooperative" means an entity that sells
groceries and related items to customer-owners of the grocery distribution
cooperative and has customer-owners, in the aggregate, who own a majority of
the outstanding ownership interests of the grocery distribution cooperative or
of the entity controlling the grocery distribution cooperative. "Grocery
distribution cooperative" includes an entity that controls a grocery
distribution cooperative.
(b)
"Qualified grocery distribution cooperative" means a grocery
distribution cooperative that has been determined by a court of record of the
state of Washington to be not engaged in wholesaling or making sales at
wholesale, within the meaning of RCW 82.04.270 or any similar provision of a
municipal ordinance that imposes a tax on gross receipts, gross proceeds of
sales, or gross income, with respect to purchases made by customer-owners, and
subsequently changes its form of doing business to make sales at wholesale of
groceries or related items to its customer-owners.
(c)
"Customer-owner" means a person who has an ownership interest in a
grocery distribution cooperative and purchases groceries and related items at
wholesale from that grocery distribution cooperative.
(d)
"Controlling" means holding fifty percent or more of the voting
interests of an entity and having at least equal power to direct or cause the
direction of the management and policies of the entity, whether through the
ownership of voting securities, by contract, or otherwise.
Sec.
2. RCW
82.04.270 and 1999 c 358 s 1 are each amended to read as follows:
Upon
every person except persons taxable under RCW 82.04.260(5) 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.
Sec.
3. RCW
82.04.270 and 1999 c 358 s 2 are each amended to read as follows:
Upon
every person except persons taxable under RCW 82.04.260(5), section 1 of
this act, or 82.04.272 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.
Sec.
4. RCW
82.04.290 and 1998 c 331 s 2, 1998 c 312 s 8, and 1998 c 308 s 4 are each
reenacted and 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, section 1 of this act, 82.04.2905,
82.04.280, 82.04.2635, and 82.04.2907, 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
82.04.290 and 1998 c 343 s 4, 1998 c 331 s 2, 1998 c 312 s 8, and 1998 c 308 s
4 are each reenacted and 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, section 1 of this act, 82.04.2905,
82.04.280, 82.04.2635, 82.04.2907, and 82.04.272, 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.
6. RCW
82.04.290 and 1998 c 343 s 4, 1998 c 331 s 2, 1998 c 312 s 8, and 1998 c 308 s
5 are each reenacted and 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, section 1 of this act, 82.04.2905,
82.04.280, 82.04.2907, and 82.04.272, 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.
7. RCW
82.19.050 and 2001 c 118 s 7 are each amended to read as follows:
The
litter tax imposed in this chapter does not apply to:
(1)
The manufacture or sale of products for use and consumption outside the state;
((or))
(2)
The value of products or gross proceeds of the sales exempt from tax under RCW
82.04.330; or
(3)
The sale of products for resale by a qualified grocery distribution cooperative
to customer-owners of the grocery distribution cooperative. For the purposes
of this section, "qualified grocery distribution cooperative" and
"customer-owner" have the meanings given in section 1 of this act.
Sec.
8. RCW
82.19.050 and 1992 c 175 s 7 are each amended to read as follows:
The
litter tax imposed in this chapter does not apply to:
(1)
The manufacture or sale of products for use and consumption outside the state;
((or))
(2)
The value of products or gross proceeds of the sales of any animal, bird, or
insect or the milk, eggs, wool, fur, meat, honey, or other substance obtained
therefrom, if the person performs only the growing or raising function of such
animal, bird, or insect; or
(3)
The sale of products for resale by a qualified grocery distribution cooperative
to customer-owners of the grocery distribution cooperative. For the purposes
of this section, "qualified grocery distribution cooperative" and
"customer-owner" have the meanings given in section 1 of this act.
NEW
SECTION. Sec. 9. (1)
Sections 1, 2, 4, and 8 of this act are necessary for the immediate
preservation of the public peace, health, or safety, or support of the state
government and its existing public institutions, and take effect immediately.
(2)
Sections 3 and 5 of this act are necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and take effect July 1, 2001.
(3)
Section 6 of this act takes effect July 1, 2003.
(4)
Section 7 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 22, 2001.
NEW
SECTION. Sec. 10. (1)
Sections 2 and 4 of this act expire July 1, 2001.
(2)
Section 5 of this act expires July 1, 2003.
(3)
Section 8 of this act expires July 22, 2001.
