H-0264.2

HOUSE BILL 1417

ByRepresentatives Chase and McCaslin

AN ACT Relating to the taxation of precious metal bullion made of gold and silver and monetized bullion, and providing that the use of bullion as tender is voluntary; amending RCW 82.04.062 and 84.36.070; adding a new chapter to Title 43 RCW; providing an effective date; and declaring an emergency.

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

(1) "Legal tender" means a recognized medium of exchange for payment of debt and taxes.

(2) "Monetized bullion" means coin or other forms of money manufactured from gold, silver, or other metals, and is used as a medium of exchange under the laws of this state, the United States, or any foreign nation. "Monetized bullion" includes, but is not limited to, nuggets, bars, sticks, dust, or other forms of processed forms of precious metals. "Monetized bullion" does not include coins or money sold to be manufactured into jewelry or works of art.

(3) "Precious metal bullion" means gold or silver which has been put through a process of smelting or refining and which is in such a state or condition that its value depends upon its content and not upon its form.

Sec. 5. RCW 82.04.062 and 1985 c 471 s 5 are each amended to read as follows:

(1) For purposes of this chapter, "wholesale sale," "sale at wholesale," "retail sale," and "sale at retail" do not include the sale of precious metal bullion or monetized bullion.

(2) In computing tax under this chapter on the business of making sales of precious metal bullion or monetized bullion, the tax shall not be imposed on the amounts received as commissions upon transactions for the accounts of customers over and above the amount paid to other dealers associated in such transactions, but ((no))a deduction or offset is allowed on account of salaries or commissions paid to salesmen or other employees.

(3) For purposes of this section, (("precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art))the definitions in section 1 of this act apply.

Sec. 6. RCW 84.36.070 and 1997 c 181 s 1 are each amended to read as follows:

(1) Intangible personal property is exempt from ad valorem taxation.

(2) "Intangible personal property" means:

(a) All moneys and credits, including mortgages, notes, accounts, certificates of deposit, tax certificates, judgments, state, county and municipal bonds and warrants and bonds and warrants of other taxing districts, bonds of the United States and of foreign countries or political subdivisions thereof ((and)), the bonds, stocks, or shares of private corporations, or precious metal bullion made of gold or silver, or monetized bullion, as defined in section 1 of this act;

(b) Private nongovernmental personal service contracts, private nongovernmental athletic or sports franchises, or private nongovernmental athletic or sports agreements provided that the contracts, franchises, or agreements do not pertain to the use or possession of tangible personal or real property or to any interest in tangible personal or real property; and

(c) Other intangible personal property such as trademarks, trade names, brand names, patents, copyrights, trade secrets, franchise agreements, licenses, permits, core deposits of financial institutions, noncompete agreements, customer lists, patient lists, favorable contracts, favorable financing agreements, reputation, exceptional management, prestige, good name, or integrity of a business.

(3) "Intangible personal property" does not include zoning, location, view, geographic features, easements, covenants, proximity to raw materials, condition of surrounding property, proximity to markets, the availability of a skilled workforce, and other characteristics or attributes of property.

(4) This section does not preclude the use of, or permit a departure from, generally accepted appraisal practices and the appropriate application thereof in the valuation of real and tangible personal property, including the appropriate consideration of licenses, permits, and franchises granted by a government agency that affect the use of the property.

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