HB 2005 — Improving the business climate in this state by simplifying the administration of municipal general business licenses.

H-1303.1HOUSEENGROSSED HOUSE BILL 2005State of Washington65th Legislature2017 Regular SessionBy Representatives Lytton, Nealey, Kagi, and OrmsbyRead first time 02/07/17.

and Washington retail association.(c) The department may, in its sole discretion, alter the plan required in (a) of this subsection (4) with a minimum notice of thirty days to affected cities.(5) When determining the plan to partner with cities for the issuance and renewal of general business licenses as required in subsection (4) of this section, cities that notified the department of their wish to partner with the department before January 1, 2017, must be allowed to partner before other cities.(6) A city that partners with the department for the issuance and renewal of general business licenses through the business licensing service in accordance with chapter 19.02 RCW may not issue and renew those licenses.(7) A city may decline to partner with the department for the issuance and renewal of a general business license as provided in subsection (1) of this section if:(a) The city participates in the online local business license and tax filing portal known as "FileLocal" as of July 1, 2017.2018.

A city that ceases participation in FileLocal after July 1, 2017,2018, must partner with the department for the issuance and renewal of its general business license as provided in subsection (1) of this section;

Such written notice must include an explanation of the nature of the hardship.(8) By January 1, 2019, and each January 1st thereafter through January 1, 2028, the department must submit a progress report to the governor;legislature.

legislative fiscal committees;

house local government committee;

senate agriculture, water, trade and economic development committee;

senate local government committee;

association of Washington cities;

association of Washington business;

national federation of independent business;

and Washington retail association.

The task force must consist of the following seven representatives:(i) Three voting representatives selected by the association of Washington cities that are tax managers representing municipalities that impose a local business and occupation tax, including at least one jurisdiction that has performed an audit where apportionment errors were discovered.(ii) Three voting representatives selected by the association of Washington business, including at least one tax practitioner or legal counsel with experience representing business clients during municipal audits that involved apportionment errors or disputes.(iii) One nonvoting representative from the departmentmunicipal ofresearch revenue.(b)and services center.(b) The task force may seek input or collaborate with other parties, as it deems necessary.

The departmentmunicipal ofresearch revenueand services center must serve as the task force chair and must staff the task force.(c) Beginning in the first month following the effective date of this section, the task force must meet no less frequently than once per month until it reports to the legislature as provided under subsection (3) of this section.(3) By October 31, 2018, the task force established in subsection (2) of this section must prepare a report to the legislature to recommend changes to RCW 35.102.130 and related sections, as needed, to develop a method for assigning gross receipts to a local jurisdiction using a market-based model.