FINAL BILL REPORT

HB 1401

                                   C 13 L 88

BYRepresentatives Spanel, Holland, Belcher, Cole, Ferguson, Grant, Grimm, Winsley, Rayburn, Nutley, Leonard, Doty, Sanders, Lewis, Silver, Wang, Sayan, Appelwick, Bristow, Patrick, Taylor, Heavey, Kremen, Holm, May, Brough, Jesernig, Schoon, Moyer, Rasmussen, Unsoeld, Brekke and Day

Expanding the business and occupation tax exemption for sheltered workshops.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

In 1970 a business and occupation (B&O) tax exemption was enacted for sheltered workshops.  The statute exempts income derived from activities performed within the workshop facility. At that time all work was performed within the facility.

With the passage of time employment opportunities have become increasingly available "off-site." However, the income from such "off-site" activities is not exempt from the B&O tax.

SUMMARY:

A business and occupation tax exemption is extended to income derived from "off-site" activities of sheltered workshops.

VOTES ON FINAL PASSAGE:

      House 94   0

      Senate    48     0

EFFECTIVE:June 9, 1988