EXPEDITED ADOPTION
Title of Rule: Delinquent predecessor taxes.
Purpose: To amend CR-102XA filed May 19, 1999, under WSR 99-11-090 and to provide a method for a successor employer to pay the delinquent taxes of a predecessor employer.
Other Identifying Information: To add the allowance of a successor to pay off taxes after the September 30 cut-off date.
Statutory Authority for Adoption: Chapters 34.05 and 50.12 RCW.
Statute Being Implemented: Portion of RCW 50.29.062.
Summary: To revise the originally filed expedited adoption to allow employers to pay off the taxes of delinquent predecessors after the September 30th cut-off date and still acquire a lower tax rate.
Reasons Supporting Proposal: To allow equity to employers paying off delinquent taxes of a predecessor employer after the statutory September 30th cut-off date.
Name of Agency Personnel Responsible for Drafting: George Mante, 212 Maple Park, Olympia, WA, (360) 902-9642; Implementation and Enforcement: Dale Ziegler, 212 Maple Park, Olympia, WA, (360) 902-9303.
Name of Proponent: Employment Security Department, UI Tax Administration, UI Division, P.O. Box 9046, Olympia, WA 98507, governmental.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: This amendment precludes the agency having to introduce special statutory changes to address an equity issue for successor employers.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The original CR-102XA filed on May 19, 1999, under WSR 99-11-090 is being amended at the request of our UI tax legislative liaison and UI tax management to include under proposed WAC 192-320-060 Delinquent predecessor taxes item number (c). Item (c) will allow, without having to resort to statutory change, an equity issue for successor employers who pay off the delinquent predecessor taxes of an employer after the cut-off date of September 30th. These employers will now be able to pay off taxes and have their tax rate recalculated instead of receiving the highest tax rate possible - 5.6%. This is a fairness/equity issue for employers and enhances the integrity of the UI trust fund.
Proposal Changes the Following Existing Rules: As noted in
Explanation of Rule above this proposed change will promote
fairness and equity for successor employers who pay off the
delinquent taxes of a predecessor employer after the department's
cut off date of September 30th. These successor employers will
enjoy the same recalculation as those successor employers who
acquire a business prior to the September 30th cut-off date and
pay off delinquent taxes. There will be equity in the
recalculation of tax rates for successor employers who pay the
delinquent taxes of a predecessor employer.
THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO George Mante, Employment Security Department, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046 , AND RECEIVED BY November 22, 1999.
August 30, 1999
Carver Gayton
Commissioner
Chapter 192-320-WACRCW 50.29.062 provides that a successor employer, as defined in WAC 192-300-050 will be assigned the tax rate of the predecessor employer. If the successor employer has been assigned the maximum tax rate due to late, or nonpayment of, taxes to the department by the predecessor employer; they may receive a lower rate upon completion of the following:
a. submit a written request to the department; and
b. payment of delinquent tax payments by the cut-off date of September 30th; or
c. if the purchase was finalized after September 30th and all reports any taxes due are submitted within thirty (30) days of escrow closure, or purchase of the business.
The successor employer will receive the tax rate of the predecessor employer as if the taxes had been paid timely. The successor will keep this rate until eligible under experience rating statutes for a different rate.
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Reviser's note: The unnecessary underscoring in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
REPEALER
The following section of the Washington Administrative Code is repealed:
| WAC 192-12-076 | Delinquent predecessor taxes. |