6326-S2 AMH .... ENSL 048

2SSB 6326 - H AMD 1125

By Representative Kenney

ADOPTED 3/4/2006

   On page 3, after line 21, insert the following:

   "(c) Preference shall be given to employers with fewer than fifty employees."

   On page 4, after line 17, insert the following:

   "NEW SECTION. Sec. 6. A new section is added to chapter 82.04 RCW to read as follows:

   (1) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources the legislature needs information on how a tax incentive is used.

    (2) Each person claiming a tax credit under section 5 of this act shall report information to the department by filing a complete annual survey. The survey is due by March 31st of the year following any calendar year in which a tax credit under section 5 of this act is taken. The department may extend the due date for timely filing of annual surveys under this section as provided in RCW 82.32.590. The survey shall include the amount of tax credit taken. The survey shall also include the following information for employment positions in Washington:

    (a) The number of total employment positions;

    (b) Full-time, part-time, and temporary employment positions as a percent of total employment;

    (c) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and

    (d) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.

    The first survey filed under this subsection shall also include information for the twelve-month period immediately before first use of a tax incentive.

    (3) The department may request additional information necessary to measure the results of the credit program, to be submitted at the same time as the survey.

    (4) All information collected under this section, except the amount of the tax credit taken, is deemed taxpayer information under RCW 82.32.330. Information on the amount of tax credit taken is not subject to the confidentiality provisions of RCW 82.32.330.

    (5) If a person fails to submit an annual survey under subsection (2) of this section by the due date of the report or any extension under RCW 82.32.590, the department shall declare the amount of taxes credited for the previous calendar year to be immediately due and payable. The department shall assess interest, but not penalties, on the amounts due under this section. The interest shall be assessed at the rate provided for delinquent taxes under this chapter, retroactively to the date the credit was claimed, and shall accrue until the taxes for which the credit was claimed are repaid. This information is not subject to the confidentiality provisions of RCW 82.32.330.

    (6) The department shall use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers shall be included in any category. The department shall report these statistics to the legislature each year by September 1st.

    (7) The department shall study the tax credit authorized in section 5 of this act. The department shall submit a report to the finance committee of the house of representatives and the ways and means committee of the senate by December 1, 2011. The report shall measure the effect of the credit on job creation, job retention, company growth, the movement of firms or the consolidation of firms' operations into the state, and such other factors as the department selects.

   NEW SECTION. Sec. 7. RCW 82.32.590 and 2005 c 514 s 1001 are each amended to read as follows:

    (1) If the department finds that the failure of a taxpayer to file an annual survey under RCW 82.04.4452 or section 6 of this act by the due date was the result of circumstances beyond the control of the taxpayer, the department shall extend the time for filing the survey. Such extension shall be for a period of thirty days from the date the department issues its written notification to the taxpayer that it qualifies for an extension under this section. The department may grant additional extensions as it deems proper.

    (2) In making a determination whether the failure of a taxpayer to file an annual survey by the due date was the result of circumstances beyond the control of the taxpayer, the department shall be guided by rules adopted by the department for the waiver or cancellation of penalties when the underpayment or untimely payment of any tax was due to circumstances beyond the control of the taxpayer."

   On page 5, beginning on line 1, strike all of section 7

   On page 5, line 12, after "July 1," strike "2016" and insert "2012" 

   Renumber the remaining sections consecutively and correct any internal references accordingly

   Correct the title

EFFECT: Requires a participating employer who takes the tax credit to file a survey with the Department of Revenue with employment information. Requires that the program give preference to employers with less than 50 employees. Requires the Department of Revenue to report to the Legislature in December 2011 regarding job creation and related information. Expires the program on July 1, 2012, rather than 2016. Removes the appropriation from the bill.