BILL REQ. #:  H-5004.1 

READ FIRST TIME 02/10/04.   

     AN ACT Relating to suspending business and occupation taxation on certain businesses impacted by the ban on American beef products; adding a new section to chapter 82.04 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that the recent occurrence of bovine spongiform encephalopathy and the resulting bans on beef imports from the United States have had a severe economic impact on the state's beef processing industry. The legislature intends to provide temporary business and occupation tax relief for Washington's beef processors.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.04 RCW to read as follows:
     (1) In computing tax there may be deducted from the measure of tax a portion of the following amounts received for:
     (a) Slaughtering cattle, but only if the taxpayer sells the resulting slaughtered cattle at wholesale and not at retail;
     (b) Breaking or processing perishable beef products, but only if the perishable beef products are derived from cattle slaughtered by the taxpayer and sold at wholesale only and not at retail;
     (c) Wholesale sales of perishable beef products derived from cattle slaughtered by the taxpayer;
     (d) Processing nonperishable beef products, but only if the products are derived from cattle slaughtered by the taxpayer and sold at wholesale only and not at retail; and
     (e) Wholesale sales of nonperishable beef products derived from cattle slaughtered by the taxpayer.
     (2) The portion of the amounts under subsection (1) of this section that are deductible is calculated by multiplying those amounts by a fraction. The numerator of the fraction is the taxable proceeds received by the taxpayer from the sale of beef products subject to tax under RCW 82.04.260(4) that were exported from the United States during the period December 1, 2002, through November 30, 2003. The denominator of the fraction is the total taxable proceeds received by the taxpayer from the sale of beef products subject to tax under RCW 82.04.260(4) during the same period.
     (3) For the purposes of this section, "beef products" means the carcass, parts of carcass, meat, and meat by-products, derived exclusively from cattle and containing no other ingredients.
     (4) The deduction allowed under this section is allowed only for tax liability incurred after the effective date of this section and until the first day of the month following the date on which the bans on the importation of beef and beef products from the United States of America by Japan, Mexico, and the Republic of South Korea have all been lifted.
     (5) The department must provide notice, on the department's web site, of the date on which this deduction is no longer available. The notice required by this section does not affect the availability of the deduction under this section.

NEW SECTION.  Sec. 3   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 immediately.