BILL REQ. #: H-0604.1
State of Washington | 63rd Legislature | 2013 Regular Session |
Read first time 01/30/13. Referred to Committee on Finance.
AN ACT Relating to a sales and use tax exemption for certain financial information provided to qualifying businesses providing international investment management services; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; 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 82.08 RCW
to read as follows:
(1) The tax imposed by RCW 82.08.020 does not apply to sales of
standard financial information to qualifying international investment
management companies. The exemption provided in this section applies
regardless of whether the standard financial information is provided to
the buyer in a tangible format or on a tangible storage medium or as a
digital product transferred electronically.
(2) Sellers making tax-exempt sales under this section must obtain
an exemption certificate from the buyer in a form and manner prescribed
by the department. The seller must retain a copy of the exemption
certificate for the seller's files. In lieu of an exemption
certificate, a seller may capture the relevant data elements as allowed
under the streamlined sales and use tax agreement.
(3) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a)(i) "Qualifying international investment management company"
means a person:
(A) Who is primarily engaged in the business of providing
investment management services; and
(B) Who has gross income that is at least ten percent derived from
providing investment management services to:
(I) Persons or collective investment funds residing outside the
United States; or
(II) Collective investment funds with at least ten percent of their
investments located outside the United States.
(ii) The definitions in RCW 82.04.293 apply to this subsection
(3)(a).
(b)(i) "Standard financial information" means financial data,
facts, or information, or financial information services, not
generated, compiled, or developed only for a single customer. Standard
financial information includes, but is not limited to, financial market
data, bond ratings, credit ratings, and deposit, loan, or mortgage
reports.
(ii) For purposes of this subsection (3)(b), "financial market
data" means market pricing information, such as for securities,
commodities, and derivatives; corporate actions for publicly and
privately traded companies, such as dividend schedules and
reorganizations; corporate attributes, such as domicile, currencies
used, and exchanges where shares are traded; and currency information.
NEW SECTION. Sec. 2 A new section is added to chapter 82.12 RCW
to read as follows:
(1) The tax imposed by RCW 82.12.020 does not apply to the use of
standard financial information by qualifying international investment
management companies. The exemption provided in this section applies
regardless of whether the standard financial information is in a
tangible format or resides on a tangible storage medium or is a digital
product transferred electronically to the qualifying international
investment management company.
(2) The definitions in section 1 of this act apply to this section.
NEW SECTION. Sec. 3 This act takes effect August 1, 2013.