S-1604               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5182

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senate Committee on Agriculture (originally sponsored by Senators Hansen, Barr, Gaspard, Bauer, Anderson, Bailey, Lee and Patterson)

Read first time 2/13/87.

AN ACT Relating to the administration of the business and occupation tax statutes; and adding a new section to chapter 82.32 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.32 RCW to read as follows:

          (1) Notwithstanding any other provision in this chapter, if a person receives written instructions from an employee of the department, acting within the scope of his or her authority and duties, that a business activity taxable under chapter 82.04 RCW is to be reported under a particular tax classification, or the instruction otherwise relates to taxation of that person under that chapter, the department shall not thereafter assess taxes in a manner inconsistent with the written instructions, except on a prospective basis.  This section applies only if:

          (a) The written instructions are based on all material facts concerning the person's business activities;

          (b) Later instructions from the department are inconsistent with the written instructions;

          (c) The person takes action on the faith of the written instructions; and

          (d) The person would be damaged, on a retroactive basis, if the department were to act contrary to its earlier written instructions.

          (2) The prevailing party in any litigation under chapter 82.04 RCW, in a court of competent jurisdiction, shall be entitled to reasonable attorneys' fees.