BILL REQ. #:  H-0491.7 

Read first time 02/12/2007.   Referred to Committee on Finance.

     AN ACT Relating to a business and occupation tax credit for qualifying businesses that operate call centers; reenacting and amending RCW 82.32.590 and 82.32.600; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.32 RCW; providing an effective date; and providing an expiration 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) Subject to the limits and provisions of this section, an eligible person is allowed a credit against the tax due under this chapter. The credit is based on qualified employment positions in eligible call centers located within the state of Washington.
     (2) The credit under this section is one thousand dollars for each qualified employment position created after the effective date of this act. A credit is earned if the employment position is filled for at least a year. A person may not take a credit for an employment position until the credit is earned. An additional credit is earned for each additional year the position is filled, up to four years.
     (3) The credit under this section may be used against taxes due under this chapter and a credit earned during one calendar year may be carried over to be credited against taxes incurred in a subsequent calendar year. A person is not eligible to receive a credit under this section if the person is receiving a tax preference under any other provision of law for the same employment position. No refunds may be granted for credits under this section.
     (4) To qualify for the credit under this section:
     (a) All employees working at the eligible call center must be working legally within the United States and at least seventy-five percent of the employees working within the eligible call center directly provide product support or product information services;
     (b) The person may not encourage or discourage unionization;
     (c) At least ninety percent of the employees of the eligible person and any person that has a controlling interest in the eligible person, must work within the United States; and
     (d) Health care benefits must be available to all employees working at the eligible call center through the person receiving the credit.
     (5) A person may not take a cumulative amount of credit under this section in excess of five hundred thousand dollars.
     (6)(a) 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 to evaluate whether the stated goals of legislation were achieved. A person taking a credit under this section shall make an annual survey to the department as provided in section 2 of this act.
     (b) The goal of the tax credit authorized under this section is to encourage the creation, expansion, and retention of family wage jobs in call centers.
     (7) For the purposes of this section, the following definitions apply:
     (a) "Eligible call center" means a single facility or work space that meets all of the following requirements:
     (i) The facility or work space is primarily used to provide product support or product information services through telephonic, electronic mail, or any other widely accepted means of communication; and
     (ii) The facility or work space is at least five thousand square feet.
     (b) "Eligible person" means a person that maintains at least twenty qualified employment positions at an eligible call center every calendar year in which credit is taken under this section.
     (c)(i) "Encourage or discourage unionization" means attempting to influence the decision of the person's employees in this state regarding whether to support or oppose an employee organization that represents or seeks to represent those employees for the purpose of collective bargaining, or become a member of an employee organization.
     (ii) "Encourage or discourage unionization" does not mean:
     (A) Addressing a grievance or negotiating or administering a collective bargaining agreement;
     (B) Allowing an employee organization or its representatives access to the employer's facilities or property;
     (C) Performing an activity required by federal or state law or by a collective bargaining agreement; or
     (D) Negotiating, entering into, or carrying out a voluntary recognition agreement with an employee organization.
     (d) "Qualified employee" means an employee that has graduated from an institution of higher education located within the state of Washington.
     (e) "Qualified employment position" means a position that pays at least one hundred twenty percent of the minimum wage required under RCW 49.46.020(4) to a qualified employee and the position requires the qualified employee to average at least thirty-five hours per week on an annualized basis.
     (8) This section expires January 1, 2012. A credit may be claimed under this section on or after January 1, 2012, for any credit earned during a reporting period ending before January 1, 2012.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) Each person claiming a tax preference that requires a survey under this section must 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 the tax preference 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 must include the amount of the tax preference taken. The survey must 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.
     (2) The department may request additional information necessary to measure the results of, or determine eligibility for, the tax preference, to be submitted at the same time as the survey.
     (3) All information collected under this section, except the amount of the tax preference taken, is deemed taxpayer information under RCW 82.32.330. Information on the amount of tax preference taken is not subject to the confidentiality provisions of RCW 82.32.330. If the amount of the tax preference taken as reported on the survey is different than the amount actually taken or otherwise allowed by the department based on the taxpayer's excise tax returns or other information known to the department, the amount actually taken or allowed may be disclosed.
     (4) If a person fails to submit an annual survey under this section by the due date of the report or any extension under RCW 82.32.590, the department shall declare the amount of the tax preference taken 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 must be assessed at the rate provided for delinquent taxes under this chapter, retroactively to the date the credit was claimed, and must 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.
     (5) 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.
     (6) For the purposes of this section, "tax preference" has the meaning provided in RCW 43.136.021 and includes only the tax preferences requiring a survey under this section.

Sec. 3   RCW 82.32.590 and 2006 c 354 s 17, 2006 c 300 s 10, 2006 c 177 s 8, 2006 c 112 s 7, and 2006 c 84 s 7 are each reenacted and amended to read as follows:
     (1) If the department finds that the failure of a taxpayer to file an annual survey or annual report under RCW 82.04.4452, 82.32.5351, 82.32.650, 82.32.635, 82.32.640, 82.32.630, 82.32.610, section 2 of this act, or 82.74.040 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 or report. 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 or annual report 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.

Sec. 4   RCW 82.32.600 and 2006 c 354 s 16, 2006 c 300 s 11, 2006 c 178 s 9, 2006 c 177 s 9, and 2006 c 84 s 8 are each reenacted and amended to read as follows:
     (1) Persons required to file annual surveys or annual reports under RCW 82.04.4452 ((or)), 82.32.5351, or section 2 of this act must electronically file with the department all surveys, reports, returns, and any other forms or information the department requires in an electronic format as provided or approved by the department. As used in this section, "returns" has the same meaning as "return" in RCW 82.32.050.
     (2) Any survey, report, return, or any other form or information required to be filed in an electronic format under subsection (1) of this section is not filed until received by the department in an electronic format.
     (3) The department may waive the electronic filing requirement in subsection (1) of this section for good cause shown.

NEW SECTION.  Sec. 5   This act takes effect August 1, 2007.