BILL REQ. #:  H-3574.3 

Read first time 01/29/14.   Referred to Committee on Finance.

     AN ACT Relating to increasing the exemption and filing threshold for small public utility businesses; amending RCW 82.16.040 and 82.32.045; and providing an effective date.

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

Sec. 1   RCW 82.16.040 and 1996 c 111 s 4 are each amended to read as follows:
     The provisions of this chapter ((shall)) do not apply to persons engaging in one or more businesses taxable under this chapter whose total gross income is less than ((two)) three thousand dollars for a monthly period or portion thereof. Any person claiming exemption under this section may be required to file returns even though no tax may be due. If the total gross income for a taxable monthly period is ((two)) three thousand dollars, or more, no exemption or deductions from the gross operating revenue is allowed by this provision.

Sec. 2   RCW 82.32.045 and 2010 1st sp.s. c 23 s 1103 are each amended to read as follows:
     (1) Except as otherwise provided in this chapter, payments of the taxes imposed under chapters 82.04, 82.08, 82.12, 82.14, and 82.16 RCW, along with reports and returns on forms prescribed by the department, are due monthly within twenty-five days after the end of the month in which the taxable activities occur.
     (2) The department ((of revenue)) may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. For these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.
     (3) The department ((of revenue)) may also require verified annual returns from any taxpayer, setting forth such additional information as it may deem necessary to correctly determine tax liability.
     (4) Notwithstanding subsections (1) and (2) of this section, the department may relieve any person of the requirement to file returns if the following conditions are met:
     (a) The person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter 82.04 RCW, is less than:
     (i) Twenty-eight thousand dollars per year; or
     (ii) Forty-six thousand six hundred sixty-seven dollars per year for persons generating at least fifty percent of their taxable amount from activities taxable under RCW 82.04.255, 82.04.290(2)(a), and 82.04.285;
     (b) The person's gross income of the business from all activities taxable under chapter 82.16 RCW is less than ((twenty-four)) thirty-six thousand dollars per year; and
     (c) The person is not required to collect or pay to the department ((of revenue)) any other tax or fee which the department is authorized to collect.

NEW SECTION.  Sec. 3   This act takes effect July 1, 2014.