House Bill 3176, discussed in this blog on Tuesday, will have a public hearing this Saturday morning in the House Finance Committee.  The purpose of this bill is to increase taxes and raise new revenue for the state to close the $2.6 billion gap between state spending and revenue.  Here are some of the provisions of this bill:

(1) Establish economic nexus standards 

(2) Create tax avoidance transactions 

(3) Place a cap on the first mortgage deduction 

(4) Clarify direct seller business and occupation tax exemption 

(5) Limit business and occupation tax preferences for manufacturers of products derived from certain agricultural products

(6) Eliminate tax preferences for bullion 

(7) End the preferential business and occupation tax treatment received by directors of corporations 

(8) Impose airplane excise tax              

(9) Impose public utility tax on interstate hauls 

(10) Limit foreclosure exemption

(11) Address tax debts 

(12) Repeal the nonresident sales tax exemption 

(13) Remove the sales and use tax exemption for livestock nutrient equipment and facilities

(14) Eliminate the business and occupation tax credit for new employment for international service activities 

In the "economic nexus" sections of the bill, there are clauses that allow for apportionment of royalty income, which will benefit many Washington based WTIA members.  This is the only provision of this bill that is worth supporting.  WTIA will oppose or be neutral on the remainder of the bill.

You can find out more about the bill here: 

http://apps.leg.wa.gov/billinfo/summary.aspx?bill=3176&year=2009 

A bill report will be ready sometime Friday.  Please contact us at Lmcmurran@washingtontechnology.org if you have any specific concerns or wish to testify at the public hearing.