BILL REQ. #:  H-0338.1 

Read first time 01/22/2007.   Referred to Committee on Finance.

     AN ACT Relating to clarifying the business and occupation taxation of property management companies in regards to on-site property managers' wages and benefits; and amending RCW 82.04.394.

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

Sec. 1   RCW 82.04.394 and 1998 c 338 s 2 are each amended to read as follows:
     (1) This chapter does not apply to amounts received by a property management company from ((the owner of)) a property owner for gross wages and benefits paid directly to or on behalf of on-site personnel from property management trust accounts that are required to be maintained under RCW 18.85.310.
     (2) As used in this section, "on-site personnel" means a person who meets all of the following conditions: (a) The person works primarily on-site at ((the owner's property)) one or more properties managed by the property management company; (b) the person's duties include leasing property units, maintaining ((the)) property, collecting rents, or similar activities; and (c) under a written property management agreement: (i) The person's compensation is the ultimate obligation of the property owner and not the property manager; (ii) the property manager is liable for payment only as agent of the owner; and (iii) the property manager is the agent of the owner with respect to the on-site personnel and that all actions, including, but not limited to, hiring, firing, compensation, and conditions of employment, taken by the property manager with respect to the on-site personnel are subject to the approval of the property owner.