HB 1549

HOUSE BILL REPORT
HB 1549

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed Legislature

Title: An act relating to exempting wholesale sales of unprocessed milk for processing from business and occupation tax.

Brief Description: Exempting wholesale sales of bulk unprocessed milk from the business and occupation tax.

Sponsors: By Representatives Linville, Kristiansen, Ericksen, McCune and Dunn.

Majority Report: Do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Conway, Ericks, McIntire, Roach and Santos.

Background:

Washington's major business tax is the business and occupation (B&O) tax. The B&O tax is imposed on the gross receipts of business activities conducted within the state, without any deduction for the costs of doing business. Revenues are deposited in the State General Fund. A business may have more than one B&O tax rate, depending on the types of activities conducted. There are a number of different rates. The main rates are: 0.471 percent for retailing; 0.484 percent for manufacturing, wholesaling, and extracting; and 1.5 percent for professional and personal services, and activities not classified elsewhere.

Summary of Bill:

Wholesale sales of unprocessed milk are exempted from the state B&O tax.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony:

(In support) Dairygold is a farmer cooperative and sells milk as an agent for the farmers. The Co-op is a nonprofit so the money goes back to the members of the Co-op. The bill makes tax policy consistent with the wholesaling of other products, such as wheat, oats, dry peas, and triticale.

(Opposed) None.