S-205                 _______________________________________________

                                                   SENATE BILL NO. 3110

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Wojahn, Zimmerman, Gaspard, Vognild, Sellar, Thompson, Deccio, Johnson and Conner

Read first time 1/17/85 and referred to Committee on Ways and Means.

AN ACT Relating to business and occupation taxation; and amending RCW 82.04.290.

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

        Sec. 1.  Section 82.04.290, chapter 15, Laws of 1961 as last amended by section 2, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.04.290 are each amended to read as follows:

          Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, and 82.04.280; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 1.50 percent:  PROVIDED, That ((this tax shall be imposed only if all of the amendments contained in sections 1, 3, and 4 of this 1983 act become law)) where income from amusement devices, as defined in RCW 66.44.316, is divided between the owner of the device and the person upon whose premises the device is operated, each person shall pay the tax only upon his or her respective share of the income.  This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale."  The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.