5572 AMH FIN H3060.2

SB 5572  - H COMM AMD
     By Committee on Finance

ADOPTED 04/03/2007

     Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1   A new section is added to chapter 82.04 RCW to read as follows:
     This chapter does not apply to public corporations, commissions, or authorities created under RCW 35.21.660 or 35.21.730 for amounts derived from sales of tangible personal property and services to:
     (1) A limited liability company in which the corporation, commission, or authority is the managing member;
     (2) A limited partnership in which the corporation, commission, or authority is the general partner; or
     (3) A single asset entity required under any federal, state, or local governmental housing assistance program, which is controlled directly or indirectly by the corporation, commission, or authority.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax imposed by RCW 82.08.020 does not apply to sales of tangible personal property and services provided by a public corporation, commission, or authority created under RCW 35.21.660 or 35.21.730 to an eligible entity.
     (2) For purposes of this section, "eligible entity" means a limited liability company, a limited partnership, or a single asset entity, described in section 1 of this act.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of tangible personal property and services provided by a public corporation, commission, or authority created under RCW 35.21.660 or 35.21.730 to an eligible entity.
     (2) For purposes of this section, "eligible entity" means a limited liability company, a limited partnership, or a single asset entity, described in section 1 of this act."

EFFECT:  Clarifies that tangible personal property is exempt from B&O and retail sales and use tax. Makes the language in the sales and use tax exemptions more uniform with the B&O exemption.

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