BILL REQ. #: H-2764.1
| State of Washington | 60th Legislature | 2007 Regular Session |
READ FIRST TIME 03/05/07.
AN ACT Relating to the taxation of temporary staffing services; amending RCW 82.04.460; adding a new section to chapter 82.04 RCW; creating a new section; and providing an effective date.
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) Upon every person engaging in this state in the business of
providing staffing services; as to such persons the amount of tax with
respect to such business shall be equal to the gross income of the
business, multiplied by the rate of 0.484 percent.
(2) For the purpose of this section, "staffing services" means an
arrangement in which the taxpayer recruits and hires employees from the
labor market and assigns them on a temporary basis to perform services
for another to support, or supplement, the customer's work force, or to
provide assistance in special work situations such as employee
absences, skill shortages, and seasonal workloads, or to perform
special assignments or projects, all under the direction and
supervision of the customer. "Staffing services" does not include
permanent employee leasing or permanent employee placement services.
Sec. 2 RCW 82.04.460 and 2004 c 174 s 6 are each amended to read
as follows:
(1) Any person rendering services taxable under RCW 82.04.290
((or)), 82.04.2908, or section 1 of this act and maintaining places of
business both within and without this state which contribute to the
rendition of such services shall, for the purpose of computing tax
liability under RCW 82.04.290 ((or)), 82.04.2908, or section 1 of this
act, apportion to this state that portion of the person's gross income
which is derived from services rendered within this state. Where such
apportionment cannot be accurately made by separate accounting methods,
the taxpayer shall apportion to this state that proportion of the
taxpayer's total income which the cost of doing business within the
state bears to the total cost of doing business both within and without
the state.
(2) Notwithstanding the provision of subsection (1) of this
section, persons doing business both within and without the state who
receive gross income from service charges, as defined in RCW 63.14.010
(relating to amounts charged for granting the right or privilege to
make deferred or installment payments) or who receive gross income from
engaging in business as financial institutions within the scope of
chapter 82.14A RCW (relating to city taxes on financial institutions)
shall apportion or allocate gross income taxable under RCW 82.04.290 to
this state pursuant to rules promulgated by the department consistent
with uniform rules for apportionment or allocation developed by the
states.
(3) The department shall by rule provide a method or methods of
apportioning or allocating gross income derived from sales of telephone
services taxed under this chapter, if the gross proceeds of sales
subject to tax under this chapter do not fairly represent the extent of
the taxpayer's income attributable to this state. The rules shall be,
so far as feasible, consistent with the methods of apportionment
contained in this section and shall require the consideration of those
facts, circumstances, and apportionment factors as will result in an
equitable and constitutionally permissible division of the services.
NEW SECTION. Sec. 3 This act applies to staffing services, as
defined in section 1 of this act, rendered on or after October 1, 2007.
NEW SECTION. Sec. 4 This act takes effect October 1, 2007.