Z-558                 _______________________________________________

                                                   SENATE BILL NO. 5240

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senators McDermott and Gaspard; by request of Department of Revenue

Read first time 1/20/87 and referred to Committee on Ways & Means.

AN ACT Relating to the taxation of mini-storage warehouse and refuse collection businesses; 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 3, chapter 32, Laws of 1985 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.  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), (1) persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale((.))"; (2) mini-storage warehouse businesses which lease, rent, or grant licenses to use storage space, regardless of the duration of such use; and (3) refuse collection businesses as defined in RCW 82.18.010.

          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.