| Passed by the House February 15, 2008 Yeas 94 FRANK CHOPP ________________________________________ Speaker of the House of Representatives Passed by the Senate March 4, 2008 Yeas 49 BRAD OWEN ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 3275 as passed by the House of Representatives and the Senate on the dates hereon set forth. BARBARA BAKER ________________________________________ Chief Clerk | |
| Approved March 17, 2008, 3:22 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | March 18, 2008 Secretary of State State of Washington |
| State of Washington | 60th Legislature | 2008 Regular Session |
AN ACT Relating to the taxation of grocery distribution cooperatives; and amending RCW 82.04.298.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.04.298 and 2001 1st sp.s. c 9 s 1 are each amended
to read as follows:
(1) The amount of tax with respect to a qualified grocery
distribution cooperative's sales of groceries or related goods for
resale, excluding items subject to tax under RCW 82.04.260(4), to
customer-owners of the grocery distribution cooperative is equal to the
gross proceeds of sales of the grocery distribution cooperative
multiplied by the rate of one and one-half percent.
(2) A qualified grocery distribution cooperative is allowed a
deduction from the gross proceeds of sales of groceries or related
goods for resale, excluding items subject to tax under RCW
82.04.260(4), to customer-owners of the grocery distribution
cooperative that is equal to the portion of the gross proceeds of sales
for resale that represents the actual cost of the merchandise sold by
the grocery distribution cooperative to customer-owners.
(3) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Grocery distribution cooperative" means an entity that sells
groceries and related items to customer-owners of the grocery
distribution cooperative and has customer-owners, in the aggregate, who
own a majority of the outstanding ownership interests of the grocery
distribution cooperative or of the entity controlling the grocery
distribution cooperative. "Grocery distribution cooperative" includes
an entity that controls a grocery distribution cooperative.
(b) "Qualified grocery distribution cooperative" means:
(i) A grocery distribution cooperative that has been determined by
a court of record of the state of Washington to be not engaged in
wholesaling or making sales at wholesale, within the meaning of RCW
82.04.270 or any similar provision of a municipal ordinance that
imposes a tax on gross receipts, gross proceeds of sales, or gross
income, with respect to purchases made by customer-owners, and
subsequently changes its form of doing business to make sales at
wholesale of groceries or related items to its customer-owners; or
(ii) A grocery distribution cooperative that has acquired
substantially all of the assets of a grocery distribution cooperative
described in (b)(i) of this subsection.
(c) "Customer-owner" means a person who has an ownership interest
in a grocery distribution cooperative and purchases groceries and
related items at wholesale from that grocery distribution cooperative.
(d) "Controlling" means holding fifty percent or more of the voting
interests of an entity and having at least equal power to direct or
cause the direction of the management and policies of the entity,
whether through the ownership of voting securities, by contract, or
otherwise.