Pandemic Darlings The pandemic economy, in original documents
Home Source documents Senate Bill Report SB 5483 — Classification of Digital Processing Services (January 24, 2023)

Senate Bill Report SB 5483 — Classification of Digital Processing Services (January 24, 2023)

Summary

Senate Bill Report on SB 5483, as of January 24, 2023, for an act relating to classification of digital processing services. The bill clarifies sales and use tax exemptions in statute to include financial institutions use of automated services if the digital automated services are used solely for business purposes. The background section states that in April 2022, the Department of Revenue made a determination that a certain online banking platform for a financial institution was not eligible for a digital automated services exemption. The report lists Appropriation: None and says the bill takes effect ninety days after adjournment of the session in which it is passed.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2023-01-26
Case
2023 01 26 A30527 D249268 Bill Report 5483 Sba Bfgt 23

Cite this document

“Senate Bill Report SB 5483 — Classification of Digital Processing Services (January 24, 2023).” Original at app.leg.wa.gov, dated 2023-01-26. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-26-2023-01-26-a30527-d249268-bill-report-5483-sba-bfgt-23/, SHA-256 e75f4a781cf1c25210a385c799296aa7d99ab172c25d6ec0c09f3b34db9292ac.

Full text

                             SENATE BILL REPORT
                                   SB 5483

                                      As of January 24, 2023

Title: An act relating to classification of digital processing services.

Brief Description: Concerning the classification of digital processing services.

Sponsors: Senators Stanford, Dozier, Lovick, Mullet, MacEwen, Gildon, Boehnke and Wilson,
    J..

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/26/23.


                                      Brief Summary of Bill
           • Clarifies sales and use tax exemptions in statute to include financial
             institutions use of automated services if the digital automated services
             are used solely for business purposes.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: Retail Sales and Use Tax. Retail sales and use taxes are imposed by the
     state, most cities, and all counties. Retail sales taxes are imposed on retail sales of most
     articles of tangible personal property (TPP) and some services. If retail sales taxes were not
     collected when the property or services were acquired by the user, then use taxes are applied
     to the value of most TPP and some services when used in this state. Use tax rates are the
     same as retail sales tax rates.

     In 2009, the Legislature exempted certain digital products from the sales and use tax. Those
     products include:
         • digital products purchased for resale, and digital products incorporated as an
           ingredient or component of another product for resale:



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                               -1-                                            SB 5483
         • digital products provided free of charge;
         • sales of radio and television broadcast programming by a radio or television
           broadcaster including broadcasts on a pay-per-program basis if the sale of the
           programming is subject to a franchise fee; and
         • standard digital information purchased solely for business purposes.

     "Standard digital information" means a digital good consisting primarily of data, facts, or
     information that is not generated for a specific client or customer.

     In April 2022, the Department of Revenue made a determination that a certain online
     banking platform for a financial institution was not eligible for a digital automated services
     exemption.

     Summary of Bill: Sales and use tax exemptions are clarified in statute to include financial
     institutions use of automated services if the digital automated services are used solely for
     business purposes. "Financial institutions" means a bank, trust company, mutual savings
     bank, savings and loan association, or credit union authorized to do business and accept
     deposits in this state under state or federal law.

     Appropriation: None.

     Fiscal Note: Requested on January 24, 2022.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                             -2-                                         SB 5483

File and source

File
2023-01-26_a30527_d249268_bill-report-5483-sba-bfgt-23.pdf
Size
4,274 bytes
SHA-256
e75f4a781cf1c25210a385c799296aa7d99ab172c25d6ec0c09f3b34db9292ac
Our copy
2023-01-26_a30527_d249268_bill-report-5483-sba-bfgt-23.pdf
Original
app.leg.wa.gov
Back to top