FINAL BILL REPORT

SHB 198

                                  C 245 L 87

BYHouse Committee on Ways & Means/Revenue (originally sponsored by Representatives Sayan and Madsen; by request of Department of Revenue)

Providing for retail sales tax trust fund accountability.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

The Department of Revenue estimates that the state is losing $6 million per biennium in sales taxes which are collected by businesses, but not remitted to the state.  The department does not have legal authority to determine personal liability for unremitted sales taxes.

SUMMARY:

Procedures for collecting unremitted sales taxes owing from businesses are altered.  In the event of a termination of a business, any officer or individual having a proprietary interest in the corporation will be personally liable for state and local sales tax funds that have not been remitted to the state within ten days of the business termination date.

VOTES ON FINAL PASSAGE:

      House 91   2

      Senate    28    21(Senate amended)

      House 97   1(House concurred)

EFFECTIVE:May 1, 1987