wa-law.org > bill > 2023-24 > HB 1561 > Substitute Bill

HB 1561 - Public utility tax exemption

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Section 1

  1. The provisions of this chapter do not apply to persons engaging in one or more businesses taxable under this chapter whose total gross income is less than $4,000 for a monthly period or portion thereof.

  2. Any person claiming exemption under this section may be required to file returns even though no tax may be due. If the total gross income for a taxable monthly period is $4,000, or more, no exemption or deductions from the gross operating revenue is allowed by this provision.

  3. Beginning October 1, 2024, and each October 1st thereafter, the department shall adjust the threshold amount in subsection (1) of this section by multiplying the current threshold amount by one plus the percentage by which the most current consumer price index available on October 1st of the current year exceeds the consumer price index for the prior 12-month period and rounding the result to the nearest $10. If an adjustment under this subsection (3) would reduce the threshold amount in subsection (1) of this section, the department may not adjust the threshold amount for use in the following year. The department must publish the threshold amount on its public website by December 31st of each year. The adjusted threshold amount calculated under this subsection (3) applies to taxes due in the following calendar year.

  4. For purposes of this section, the following definitions apply:

    1. "Consumer price index" means the consumer price index for all urban consumers, all items, for the Seattle area as calculated by the United States bureau of labor statistics or its successor agency.

    2. "Seattle area" means the geographic area sample that includes Seattle and surrounding areas.

Section 2

  1. Except as otherwise provided in this chapter and subsection (6) of this section, payments of the taxes imposed under chapters 82.04, 82.08, 82.12, 82.14, and 82.16 RCW, along with reports and returns on forms prescribed by the department, are due monthly within twenty-five days after the end of the month in which the taxable activities occur.

  2. The department of revenue may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. Except as provided in subsection (3) of this section, for these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.

  3. For annual filers, tax payments, along with reports and returns on forms prescribed by the department, are due on or before April 15th of the year immediately following the end of the period covered by the return.

  4. The department of revenue may also require verified annual returns from any taxpayer, setting forth such additional information as it may deem necessary to correctly determine tax liability.

  5. Notwithstanding subsections (1) and (2) of this section, the department may relieve any person of the requirement to file returns if the following conditions are met:

    1. The person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter 82.04 RCW, is less than $125,000;

    2. The person's gross income of the business from all activities taxable under chapter 82.16 RCW is less than the threshold amount provided in RCW 82.16.040; and

    3. The person is not required to collect or pay to the department of revenue any other tax or fee which the department is authorized to collect.

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    1. Taxes imposed under chapter 82.08 or 82.12 RCW on taxable events that occur beginning January 1, 2019, through June 30, 2019, and payable by a consumer directly to the department are due, on returns prescribed by the department, by July 25, 2019.

    2. This subsection (6) does not apply to the reporting and payment of taxes imposed under chapters 82.08 and 82.12 RCW:

      1. On the retail sale or use of motor vehicles, vessels, or aircraft; or

      2. By consumers who are engaged in business, unless the department has relieved the consumer of the requirement to file returns pursuant to subsection (5) of this section.

Section 3

RCW 82.32.805 and 82.32.808 do not apply to this act.

Section 4

This act takes effect January 1, 2024.

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