* See Institute Memorandum to Tax Committee No. 8-95, dated February 28, 1995.
May 1, 1995
TO: TAX COMMITTEE No. 17-95
RE: WASHINGTON ADOPTS LEGISLATION REDUCING INVESTMENT MANAGER
TAXES
______________________________________________________________________________
Washington State has adopted legislation that will substantially reduce the state tax burden on
investment management companies located in Washington that provide international investment
management services. The legislation, a copy of which is attached, reduces the tax rate on investment
managers from 1.7 percent of gross income to 0.275 percent, if at least 10 percent of the manager's gross
income is derived from providing investment management services to persons or fund outside the U.S.
or to investment funds with at least 10 percent of their investments located outside the U.S. The
Institute submitted a statement supporting the legislation.*
We will keep you informed of developments.
Peter J. Cinquegrani
Assistant Counsel - Tax
Attachment