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SUBSTITUTE
SENATE BILL 5484
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Passed
Legislature - 2001 Regular Session
State of Washington 57th
Legislature 2001 Regular Session
By
READ FIRST TIME 03/08/01.
Providing
a limited sales tax exemption for certain sales of conifer seed.
AN
ACT Relating to taxation of businesses selling conifer seed or growing
seedlings; adding a new section to chapter 82.08 RCW; adding a new section to
chapter 82.12 RCW; and creating new sections.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that in-state sellers of conifer seed and persons growing
customer-owned conifer seed into seedlings are placed at a marketplace
disadvantage compared to persons doing the same activity out of state because
of the unique storage and growing requirements of conifer seed. It is the
intent of the legislature to eliminate this disadvantage by providing a limited
sales tax exemption for the sale of conifer seed to be used to grow timber
outside Washington, or sold to an Indian tribe or member to grow timber in
Indian country, if upon sale the seed is immediately placed into freezer
storage operated by the seller.
NEW
SECTION. Sec. 2. A
new section is added to chapter 82.08 RCW to read as follows:
(1)
The tax levied by RCW 82.08.020 does not apply to the sale of conifer seed that
is immediately placed into freezer storage operated by the seller and is: (a)
Used for growing timber outside Washington; or (b) sold to an Indian tribe or
member and is to be used for growing timber in Indian country. This section
applies only if the buyer provides the seller with an exemption certificate in
a form and manner prescribed by the department. The seller shall retain a copy
of the certificate for the seller's files. For the purposes of this section,
"Indian country" has the meaning given in RCW 82.24.010.
(2)
If a buyer of conifer seed is normally engaged in growing timber both within
and outside Washington and is not able to determine at the time of purchase
whether the seed acquired, or the seedlings germinated from the seed acquired,
will be used for growing timber within or outside Washington, the buyer may
defer payment of the sales tax until it is determined that the seed, or
seedlings germinated from the seed, will be planted for growing timber in
Washington. A buyer that does not pay sales tax on the purchase of conifer
seed and subsequently determines that the sale did not qualify for the tax
exemption must remit to the department the amount of sales tax that would have
been paid at the time of purchase.
(3)
A buyer who pays retail sales tax on the purchase of conifer seed and
subsequently determines that the sale qualifies for the tax exemption provided
in this section is entitled to a deduction on the buyer's tax return equal to
the cost to the buyer of the purchased seed. The deduction is allowed only if
the buyer keeps and preserves records that show from whom the seed was
purchased, the date of the purchase, the amount of the purchase, and the tax
that was paid.
NEW
SECTION. Sec. 3. A
new section is added to chapter 82.12 RCW to read as follows:
The
provisions of this chapter do not apply in respect to the use of conifer seed
to grow seedlings if the seedlings are grown by a person other than the owner
of the seed. This section applies only if the seedlings will be used for growing
timber outside Washington, or if the owner of the conifer seed is an Indian
tribe or member and the seedlings will be used for growing timber in Indian
country.
If
the owner of conifer seed is not able to determine at the time the seed is used
in a growing process whether the use of the seed is exempt from tax under this
section, the owner may defer payment of the use tax until it is determined that
the seedlings will be planted for growing timber in Washington. For the
purposes of this section, "Indian country" has the meaning given in
RCW 82.24.010.
NEW SECTION. Sec. 4. This
act applies retroactively.
