FINAL BILL REPORT

HB 66

                                  C 139 L 87

BYRepresentatives Rayburn, Nealey, Prince, Kremen, McLean, Fuhrman, Betrozoff, P. King, Chandler, Lewis and Doty

Lowering the business and occupation tax rate on the manufacture of barley into pearl barley.

House Committe on Agriculture & Rural Development

Rereferred House Committee on Ways & Means/Revenue

Senate Committee on Agriculture

SYNOPSIS AS ENACTED

BACKGROUND:

State law imposes a business and occupation (B&O) tax on manufacturing activities at a rate equal to 0.484 percent of the value of the products manufactured.  The rate is composed of a base rate of 0.44 percent plus a 10 percent tax surcharge.  The activities that qualify as manufacturing activities for the purpose of that tax are defined broadly.

State law provides exemptions from B&O taxation for certain activities and reduced rates of taxation for others.  The milling of wheat is among the activities that have been granted a reduced rate.  This activity is taxed at a rate equal to 0.138 percent of the value of the product manufactured.

SUMMARY:

The business and occupation tax on the manufacturing of barley into pearl barley is set at 0.138 percent of the value of the product manufactured.

VOTES ON FINAL PASSAGE:

      House 92   4

      Senate    49     0

EFFECTIVE:July 26, 1987