Senate Bill 6137 - State of Washington, 66th Legislature (2020 Regular Session)

Summary

Senate Bill 6137, State of Washington, 66th Legislature, 2020 Regular Session, by Senators Mullet, Becker, Conway, Warnick, King, Brown, Padden, Schoesler, Short, and Zeiger, prefiled January 7, 2020 and read first time January 13, 2020. It is referred to the Committee on Financial Institutions, Economic Development & Trade. The act relates to reauthorizing the business and occupation tax deduction for cooperative finance organizations and adds a new section to chapter 82.04 RCW. That section lets a cooperative finance organization deduct amounts derived from loans to rural electric cooperatives or other nonprofit or governmental providers of utility services, and it expires January 1, 2030. The last section states that the act takes effect July 1, 2019.

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Full text

     S-0396.1

                               SENATE BILL 6137


     State of Washington       66th Legislature       2020 Regular Session

     By Senators Mullet, Becker, Conway, Warnick, King, Brown, Padden,
     Schoesler, Short, and Zeiger

     Prefiled 01/07/20. Read first time 01/13/20. Referred to Committee
     on Financial Institutions, Economic Development & Trade.




 1       AN ACT Relating to reauthorizing the business and occupation tax
 2   deduction for cooperative finance organizations; adding a new section
 3   to chapter 82.04 RCW; creating a new section; providing an effective
 4   date; providing an expiration date; and declaring an emergency.


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


 6       NEW SECTION.   Sec. 1.   (1) This section is the tax preference
 7   performance statement for the tax preference contained in section 2,
 8   chapter . . ., Laws of 2019 (section 2 of this act). This performance
 9   statement is only intended to be used for subsequent evaluation of
10   the tax preference. It is not intended to create a private right of
11   action by any party or to be used to determine eligibility for
12   preferential tax treatment.
13       (2) The legislature categorizes this tax preference as one
14   intended to provide tax relief for certain businesses or individuals,
15   as indicated in RCW 82.32.808(2)(e).
16       (3) It is the legislature's specific public policy objective to
17   reduce the tax burden on individuals and businesses imposed by the
18   existing business and occupation tax rates.
19       (4) If the review finds that at least one cooperative finance
20   organization in this state used the deduction, then the legislature
21   intends to extend the expiration date of this tax deduction.
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1        (5) In order to obtain the data necessary to perform the review
2    in subsection (4) of this section, the joint legislative audit and
3    review committee may refer to any data collected by the state.


 4       NEW SECTION.   Sec. 2.   A new section is added to chapter 82.04
 5   RCW to read as follows:
 6       (1) In computing tax there may be deducted from the measure of
 7   tax, amounts received by a cooperative finance organization where the
 8   amounts are derived from loans to rural electric cooperatives or
 9   other nonprofit or governmental providers of utility services
10   organized under the laws of this state.
11       (2) For the purposes of this section, the following definitions
12   apply:
13       (a)   "Cooperative  finance   organization"   means  a   nonprofit
14   organization with the primary purpose of providing, securing, or
15   otherwise arranging financing for rural electric cooperatives.
16       (b) "Rural electric cooperative" means a nonprofit, customer-
17   owned organization that provides utility services to rural areas.
18       (3) This section expires January 1, 2030.


19       NEW SECTION.   Sec. 3.  This act is necessary for the immediate
20   preservation of the public peace, health, or safety, or support of
21   the state government and its existing public institutions, and takes
22   effect July 1, 2019.

                                  --- END ---




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