BILL REQ. #: H-4253.1
| State of Washington | 61st Legislature | 2010 Regular Session |
Read first time 01/13/10. Referred to Committee on Finance.
AN ACT Relating to local government taxation; amending RCW 82.14.450, 82.14.450, 82.14.460, 82.14.460, 84.55.050, 82.46.035, 82.12.010, and 82.14.230; reenacting and amending RCW 82.46.035; adding a new section to chapter 35.21 RCW; adding a new chapter to Title 36 RCW; providing effective dates; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.14.450 and 2009 c 551 s 1 are each amended to read
as follows:Funds raised under this tax shall not supplant
existing funds used for these purposes, except as follows: Up to one
hundred percent may be used to supplant existing funding in calendar
year 2010; up to eighty percent may be used to supplant existing
funding in calendar year 2011; up to sixty percent may be used to
supplant existing funding in calendar year 2012; up to forty percent
may be used to supplant existing funding in calendar year 2013; and up
to twenty percent may be used to supplant existing funding in calendar
year 2014. For purposes of this subsection, existing funds means the
actual operating expenditures for the calendar year in which the ballot
measure is approved by voters. Actual operating expenditures excludes
lost federal funds, lost or expired state grants or loans,
extraordinary events not likely to reoccur, changes in contract
provisions beyond the control of the county or city receiving the
services, and major nonrecurring capital expenditures.)) The rate of
tax under this section may not exceed three-tenths of one percent of
the selling price in the case of a sales tax, or value of the article
used, in the case of a use tax.
(2) The tax authorized in this section is in addition to any other
taxes authorized by law and must be collected from those persons who
are taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of any taxable event within the county.
(3) The retail sale or use of motor vehicles, and the lease of
motor vehicles for up to the first thirty-six months of the lease, are
exempt from tax imposed under this section.
(4) One-third of all money received under this section must be used
solely for criminal justice purposes, fire protection purposes, or
both. For the purposes of this subsection, "criminal justice purposes"
has the same meaning as provided in RCW 82.14.340.
(5) Money received under this section must be shared between the
county and the cities as follows: Sixty percent must be retained by
the county and forty percent must be distributed on a per capita basis
to cities in the county.
Sec. 2 RCW 82.14.450 and 2007 c 380 s 1 are each amended to read
as follows:Funds raised under this tax shall not supplant
existing funds used for these purposes. For purposes of this
subsection, existing funds means the actual operating expenditures for
the calendar year in which the ballot measure is approved by voters.
Actual operating expenditures excludes lost federal funds, lost or
expired state grants or loans, extraordinary events not likely to
reoccur, changes in contract provisions beyond the control of the
county or city receiving the services, and major nonrecurring capital
expenditures.)) The rate of tax under this section shall not exceed
three-tenths of one percent of the selling price in the case of a sales
tax, or value of the article used, in the case of a use tax.
(2) The tax authorized in this section is in addition to any other
taxes authorized by law and ((shall)) must be collected from those
persons who are taxable by the state under chapters 82.08 and 82.12 RCW
upon the occurrence of any taxable event within the county.
(3) The retail sale or use of motor vehicles, and the lease of
motor vehicles for up to the first thirty-six months of the lease, are
exempt from tax imposed under this section.
(4) One-third of all money received under this section ((shall))
must be used solely for criminal justice purposes. For the purposes of
this subsection, "criminal justice purposes" means additional police
protection, mitigation of congested court systems, or relief of
overcrowded jails or other local correctional facilities.
(5) Money received under this section ((shall)) must be shared
between the county and the cities as follows: Sixty percent ((shall))
must be retained by the county and forty percent ((shall)) must be
distributed on a per capita basis to cities in the county.
Sec. 3 RCW 82.14.460 and 2009 c 551 s 2 are each amended to read
as follows:
(2) The tax authorized in this section ((shall be)) is in addition
to any other taxes authorized by law and ((shall)) must be collected
from those persons who are taxable by the state under chapters 82.08
and 82.12 RCW upon the occurrence of any taxable event within the
county. The rate of tax ((shall)) equals one-tenth of one percent of
the selling price in the case of a sales tax, or value of the article
used, in the case of a use tax.
(3) Moneys collected under this section ((shall)) must be used
solely for the purpose of providing for the operation or delivery of
chemical dependency or mental health treatment programs and services
and for the operation or delivery of therapeutic court programs and
services. For the purposes of this section, "programs and services"
includes, but is not limited to, treatment services, case management,
and housing that are a component of a coordinated chemical dependency
or mental health treatment program or service.
(((4) All moneys collected under this section must be used solely
for the purpose of providing new or expanded programs and services as
provided in this section, except a portion of moneys collected under
this section may be used to supplant existing funding for these
purposes in any county as follows: Up to fifty percent may be used to
supplant existing funding in calendar year 2010; up to forty percent
may be used to supplant existing funding in calendar year 2011; up to
thirty percent may be used to supplant existing funding in calendar
year 2012; up to twenty percent may be used to supplant existing
funding in calendar year 2013; and up to ten percent may be used to
supplant existing funding in calendar year 2014.))
(5) Nothing in this section may be interpreted to prohibit the use
of moneys collected under this section for the replacement of lapsed
federal funding previously provided for the operation or delivery of
services and programs as provided in this section.
Sec. 4 RCW 82.14.460 and 2008 c 157 s 2 are each amended to read
as follows:
(2) The tax authorized in this section ((shall be)) is in addition
to any other taxes authorized by law and ((shall)) must be collected
from those persons who are taxable by the state under chapters 82.08
and 82.12 RCW upon the occurrence of any taxable event within the
county. The rate of tax ((shall)) equals one-tenth of one percent of
the selling price in the case of a sales tax, or value of the article
used, in the case of a use tax.
(3) Moneys collected under this section ((shall)) must be used
solely for the purpose of providing for the operation or delivery of
new or expanded chemical dependency or mental health treatment programs
and services and for the operation or delivery of new or expanded
therapeutic court programs and services. For the purposes of this
section, "programs and services" includes, but is not limited to,
treatment services, case management, and housing that are a component
of a coordinated chemical dependency or mental health treatment program
or service.
(((4) Moneys collected under this section shall not be used to
supplant existing funding for these purposes, provided that nothing in
this section shall be interpreted to prohibit the use of moneys
collected under this section for the replacement of lapsed federal
funding previously provided for the operation or delivery of services
and programs as provided in this section.))
Sec. 5 RCW 84.55.050 and 2009 c 551 s 3 are each amended to read
as follows:shall)) must be
held not more than twelve months prior to the date on which the
proposed levy is to be made, except as provided in subsection (2) of
this section. The ballot of the proposition ((shall)) must state the
dollar rate proposed and ((shall)) must clearly state the conditions,
if any, which are applicable under subsection (4) of this section.
(2)(((a))) Subject to statutory dollar limitations, a proposition
placed before the voters under this section may authorize annual
increases in levies for multiple consecutive years, up to six
consecutive years, during which period each year's authorized maximum
legal levy ((shall)) must be used as the base upon which an increased
levy limit for the succeeding year is computed, but the ballot
proposition must state the dollar rate proposed only for the first year
of the consecutive years and must state the limit factor, or a
specified index to be used for determining a limit factor, such as the
consumer price index, which need not be the same for all years, by
which the regular tax levy for the district may be increased in each of
the subsequent consecutive years. Elections for this purpose must be
held at a primary or general election. The title of each ballot
measure must state the limited purposes for which the proposed annual
increases during the specified period of up to six consecutive years
shall be used.
(((b)(i) Except as otherwise provided in this subsection (2)(b),
funds raised by a levy under this subsection may not supplant existing
funds used for the limited purpose specified in the ballot title. For
purposes of this subsection, existing funds means the actual operating
expenditures for the calendar year in which the ballot measure is
approved by voters. Actual operating expenditures excludes lost
federal funds, lost or expired state grants or loans, extraordinary
events not likely to reoccur, changes in contract provisions beyond the
control of the taxing district receiving the services, and major
nonrecurring capital expenditures.))
(ii) The supplanting limitations in (b)(i) of this subsection do
not apply to levies approved by the voters in calendar years 2009,
2010, and 2011, in any county with a population of one million five
hundred thousand or more. This subsection (2)(b)(ii) only applies to
levies approved by the voters after July 26, 2009.
(iii) The supplanting limitations in (b)(i) of this subsection do
not apply to levies approved by the voters in calendar year 2009 and
thereafter in any county with a population less than one million five
hundred thousand. This subsection (2)(b)(iii) only applies to levies
approved by the voters after July 26, 2009.
(3) After a levy authorized pursuant to this section is made, the
dollar amount of ((such)) the levy may not be used for the purpose of
computing the limitations for subsequent levies provided for in this
chapter, unless the ballot proposition expressly states that the levy
made under this section will be used for this purpose.
(4) If expressly stated, a proposition placed before the voters
under subsection (1) or (2) of this section may:
(a) Use the dollar amount of a levy under subsection (1) of this
section, or the dollar amount of the final levy under subsection (2) of
this section, for the purpose of computing the limitations for
subsequent levies provided for in this chapter;
(b) Limit the period for which the increased levy is to be made
under (a) of this subsection;
(c) Limit the purpose for which the increased levy is to be made
under (a) of this subsection, but if the limited purpose includes
making redemption payments on bonds, the period for which the increased
levies are made shall not exceed nine years;
(d) Set the levy or levies at a rate less than the maximum rate
allowed for the district; or
(e) Include any combination of the conditions in this subsection.
(5) Except as otherwise expressly stated in an approved ballot
measure under this section, subsequent levies ((shall)) must be
computed as if:
(a) The proposition under this section had not been approved; and
(b) The taxing district had made levies at the maximum rates which
would otherwise have been allowed under this chapter during the years
levies were made under the proposition.
NEW SECTION. Sec. 6
(2) A county with a population of one million five hundred thousand
persons or less may not impose an excise tax on the privilege of
engaging in business as a gas utility.
(3) A county may not impose a rate of tax that exceeds six percent,
except a county with a population of one million five hundred thousand
persons or less may not impose a rate that exceeds one percent on an
electrical power utility.
(4) A county must use taxes collected under the authority of this
section only for public safety, infrastructure, capital projects, and
other services.
(5) A utility subject to tax under this section must add the tax to
the rates or charges it makes for utility services and separately state
the amount of tax on billings.
(6) A county may initially impose the tax authorized under this
section only on the first day of a calendar quarter and no sooner than
seventy-five days from the date the county adopts the ordinance or
resolution imposing the tax.
(7) A county may provide exemptions for sales by utilities to
business customers, such as manufacturing facilities, aircraft repair
facilities, industrial parks, industrial facilities, farm businesses,
and computer data centers. A county may not provide a general
exemption for sales by utilities to residential customers unless
business customers are also exempt.
(8) A county must allow a credit against the cable service utility
tax for any franchise fee paid by the cable service utility to the
county.
(9) A county must provide a deduction for gross income derived from
providing utility service to consumers: (a) Located within the
incorporated areas of the county; and (b) located within the
unincorporated areas of the county that are outside any urban growth
areas, as designated in the county's comprehensive plan.
(10) The following definitions apply throughout this section unless
the context clearly requires otherwise.
(a) "Cable service utility" means a person providing cable service
as defined in the federal telecommunications act of 1996.
(b) "Electrical power utility" means a "light and power business"
as defined in RCW 82.16.010.
(c) "Gas utility" means a "gas distribution business" as defined in
RCW 82.16.010.
(d) "Gross income" has the same meaning as provided in RCW
82.16.010.
(e) "Sewer utility" means a sewerage collection business as that
term is used in chapter 82.16 RCW.
(f) "Solid waste utility" means a "solid waste collection business"
as defined in RCW 82.18.010.
(g) "Telephone utility" means a person providing
"telecommunications service" as defined in RCW 82.04.065.
(h) "Water utility" means a "water distribution business" as
defined in RCW 82.16.010.
(i) "Utility" means an electrical power utility, gas utility,
telephone utility, water utility, sewer utility, solid waste utility,
or cable service utility. "Utility" also means a water-sewer district
formed under Title 57 RCW.
NEW SECTION. Sec. 7 A new section is added to chapter 35.21 RCW
to read as follows:
(2) A city or town imposing the tax authorized under this section
may not impose a rate of tax that exceeds six percent. A city or town
may impose the tax only upon the gross income of a water-sewer district
derived from services provided within the city or town.
(3) A city or town imposing the tax authorized under this section
must allow a credit against the tax for any franchise fee paid by a
water-sewer district to the city or town.
Sec. 8 RCW 82.46.035 and 2009 c 211 s 1 are each amended to read
as follows:shall)) must identify in
the adopted budget the capital projects and park maintenance and
operation expenditures, or both, funded in whole or in part from the
proceeds of the tax authorized in this section((, and shall indicate
that such tax is intended to be in addition to other funds that may be
reasonably available for such capital projects)).
(2) The legislative authority of any county or any city that plans
under RCW 36.70A.040(1) may impose an additional excise tax on each
sale of real property in the unincorporated areas of the county for the
county tax and in the corporate limits of the city for the city tax at
a rate not exceeding one-quarter of one percent of the selling price.
Any county choosing to plan under RCW 36.70A.040(2) and any city within
such a county may only adopt an ordinance imposing the excise tax
authorized by this section if the ordinance is first authorized by a
proposition approved by a majority of the voters of the taxing district
voting on the proposition at a general election held within the
district or at a special election within the taxing district called by
the district for the purpose of submitting such proposition to the
voters.
(3) Revenues generated from the tax imposed under subsection (2) of
this section ((shall)) must be used by such counties and cities
((solely)) for financing capital projects specified in a capital
facilities plan element of a comprehensive plan and park maintenance
and operation expenditures. However, revenues (a) pledged by such
counties and cities to debt retirement prior to March 1, 1992, may
continue to be used for that purpose until the original debt for which
the revenues were pledged is retired, or (b) committed prior to March
1, 1992, by such counties or cities to a project may continue to be
used for that purpose until the project is completed.
(4) Revenues generated by the tax imposed by this section ((shall))
must be deposited in a separate account.
(5) As used in this section: (a) "City" means any city or town;
(b) "capital project" means those public works projects of a local
government for planning, acquisition, construction, reconstruction,
repair, replacement, rehabilitation, or improvement of streets, roads,
highways, sidewalks, street and road lighting systems, traffic signals,
bridges, municipally owned heavy rail short line railroads, domestic
water systems, storm and sanitary sewer systems, and planning,
construction, reconstruction, repair, rehabilitation, or improvement of
parks; and (c) "short line railroads" means class III railroads as
defined by the United States surface transportation board.
(6) When the governor files a notice of noncompliance under RCW
36.70A.340 with the secretary of state and the appropriate county or
city, the county or city's authority to impose the additional excise
tax under this section ((shall)) must be temporarily rescinded until
the governor files a subsequent notice rescinding the notice of
noncompliance.
(7) A city or county may use revenue generated under subsection (2)
of this section for municipally owned heavy short line railroads only
if the revenue was collected prior to December 31, 2008, and may not
use more than twenty-five percent of the total revenue generated under
subsection (2) of this section for municipally owned heavy short line
railroads.
Sec. 9 RCW 82.46.035 and 1992 c 221 s 3 and 1991 sp.s. c 32 s 33
are each reenacted and amended to read as follows:, and shall indicate that such tax
is intended to be in addition to other funds that may be reasonably
available for such capital projects)).
(2) The legislative authority of any county or any city that plans
under RCW 36.70A.040(1) may impose an additional excise tax on each
sale of real property in the unincorporated areas of the county for the
county tax and in the corporate limits of the city for the city tax at
a rate not exceeding one-quarter of one percent of the selling price.
Any county choosing to plan under RCW 36.70A.040(2) and any city within
such a county may only adopt an ordinance imposing the excise tax
authorized by this section if the ordinance is first authorized by a
proposition approved by a majority of the voters of the taxing district
voting on the proposition at a general election held within the
district or at a special election within the taxing district called by
the district for the purpose of submitting such proposition to the
voters.
(3) Revenues generated from the tax imposed under subsection (2) of
this section ((shall)) must be used by such counties and cities
((solely)) for financing capital projects specified in a capital
facilities plan element of a comprehensive plan and park maintenance
and operation expenditures. However, revenues (a) pledged by such
counties and cities to debt retirement prior to March 1, 1992, may
continue to be used for that purpose until the original debt for which
the revenues were pledged is retired, or (b) committed prior to March
1, 1992, by such counties or cities to a project may continue to be
used for that purpose until the project is completed.
(4) Revenues generated by the tax imposed by this section ((shall))
must be deposited in a separate account.
(5) As used in this section, "city" means any city or town and
"capital project" means those public works projects of a local
government for planning, acquisition, construction, reconstruction,
repair, replacement, rehabilitation, or improvement of streets, roads,
highways, sidewalks, street and road lighting systems, traffic signals,
bridges, domestic water systems, storm and sanitary sewer systems, and
planning, construction, reconstruction, repair, rehabilitation, or
improvement of parks.
(6) When the governor files a notice of noncompliance under RCW
36.70A.340 with the secretary of state and the appropriate county or
city, the county or city's authority to impose the additional excise
tax under this section ((shall)) must be temporarily rescinded until
the governor files a subsequent notice rescinding the notice of
noncompliance.
Sec. 10 RCW 82.12.010 and 2009 c 535 s 304 are each amended to
read as follows:
(1) "Purchase price" means the same as sales price as defined in
RCW 82.08.010;
(2)(a) "Value of the article used" shall be the purchase price for
the article of tangible personal property, the use of which is taxable
under this chapter. The term also includes, in addition to the
purchase price, the amount of any tariff or duty paid with respect to
the importation of the article used. In case the article used is
acquired by lease or by gift or is extracted, produced, or manufactured
by the person using the same or is sold under conditions wherein the
purchase price does not represent the true value thereof, the value of
the article used ((shall be)) is determined as nearly as possible
according to the retail selling price at place of use of similar
products of like quality and character under such rules as the
department may prescribe.
(b) In case the articles used are acquired by bailment, the value
of the use of the articles so used ((shall)) must be in an amount
representing a reasonable rental for the use of the articles so bailed,
determined as nearly as possible according to the value of such use at
the places of use of similar products of like quality and character
under such rules as the department of revenue may prescribe. In case
any such articles of tangible personal property are used in respect to
the construction, repairing, decorating, or improving of, and which
become or are to become an ingredient or component of, new or existing
buildings or other structures under, upon, or above real property of or
for the United States, any instrumentality thereof, or a county or city
housing authority created pursuant to chapter 35.82 RCW, including the
installing or attaching of any such articles therein or thereto,
whether or not such personal property becomes a part of the realty by
virtue of installation, then the value of the use of such articles so
used ((shall be)) is determined according to the retail selling price
of such articles, or in the absence of such a selling price, as nearly
as possible according to the retail selling price at place of use of
similar products of like quality and character or, in the absence of
either of these selling price measures, such value may be determined
upon a cost basis, in any event under such rules as the department of
revenue may prescribe.
(c) In the case of articles owned by a user engaged in business
outside the state which are brought into the state for no more than one
hundred eighty days in any period of three hundred sixty-five
consecutive days and which are temporarily used for business purposes
by the person in this state, the value of the article used ((shall))
must be an amount representing a reasonable rental for the use of the
articles, unless the person has paid tax under this chapter or chapter
82.08 RCW upon the full value of the article used, as defined in (a) of
this subsection.
(d) In the case of articles manufactured or produced by the user
and used in the manufacture or production of products sold or to be
sold to the department of defense of the United States, the value of
the articles used ((shall be)) is determined according to the value of
the ingredients of such articles.
(e) In the case of an article manufactured or produced for purposes
of serving as a prototype for the development of a new or improved
product, the value of the article used ((shall be)) is determined by:
(i) The retail selling price of such new or improved product when first
offered for sale; or (ii) the value of materials incorporated into the
prototype in cases in which the new or improved product is not offered
for sale.
(f) In the case of an article purchased with a direct pay permit
under RCW 82.32.087, the value of the article used ((shall be)) is
determined by the purchase price of such article if, but for the use of
the direct pay permit, the transaction would have been subject to sales
tax;
(3) "Value of the service used" means the purchase price for the
digital automated service or other service, the use of which is taxable
under this chapter. If the service is received by gift or under
conditions wherein the purchase price does not represent the true value
thereof, the value of the service used ((shall be)) is determined as
nearly as possible according to the retail selling price at place of
use of similar services of like quality and character under rules the
department may prescribe;
(4) "Value of the extended warranty used" means the purchase price
for the extended warranty, the use of which is taxable under this
chapter. If the extended warranty is received by gift or under
conditions wherein the purchase price does not represent the true value
of the extended warranty, the value of the extended warranty used
((shall be)) is determined as nearly as possible according to the
retail selling price at place of use of similar extended warranties of
like quality and character under rules the department may prescribe;
(5) "Value of the digital good or digital code used" means the
purchase price for the digital good or digital code, the use of which
is taxable under this chapter. If the digital good or digital code is
acquired other than by purchase, the value of the digital good or
digital code must be determined as nearly as possible according to the
retail selling price at place of use of similar digital goods or
digital codes of like quality and character under rules the department
may prescribe;
(6) "Use," "used," "using," or "put to use" have their ordinary
meaning, and mean:
(a) With respect to tangible personal property, except for natural
gas and manufactured gas, the first act within this state by which the
taxpayer takes or assumes dominion or control over the article of
tangible personal property (as a consumer), and include installation,
storage, withdrawal from storage, distribution, or any other act
preparatory to subsequent actual use or consumption within this state;
(b) With respect to a service defined in RCW 82.04.050(2)(a), the
first act within this state after the service has been performed by
which the taxpayer takes or assumes dominion or control over the
article of tangible personal property upon which the service was
performed (as a consumer), and includes installation, storage,
withdrawal from storage, distribution, or any other act preparatory to
subsequent actual use or consumption of the article within this state;
(c) With respect to an extended warranty, the first act within this
state after the extended warranty has been acquired by which the
taxpayer takes or assumes dominion or control over the article of
tangible personal property to which the extended warranty applies, and
includes installation, storage, withdrawal from storage, distribution,
or any other act preparatory to subsequent actual use or consumption of
the article within this state;
(d) With respect to a digital good or digital code, the first act
within this state by which the taxpayer, as a consumer, views,
accesses, downloads, possesses, stores, opens, manipulates, or
otherwise uses or enjoys the digital good or digital code;
(e) With respect to a digital automated service, the first act
within this state by which the taxpayer, as a consumer, uses, enjoys,
or otherwise receives the benefit of the service;
(f) With respect to a service defined as a retail sale in RCW
82.04.050(6)(b), the first act within this state by which the taxpayer,
as a consumer, accesses the prewritten computer software; ((and))
(g) With respect to a service defined as a retail sale in RCW
82.04.050(2)(g), the first act within this state after the service has
been performed by which the taxpayer, as a consumer, views, accesses,
downloads, possesses, stores, opens, manipulates, or otherwise uses or
enjoys the digital good upon which the service was performed; and
(h) With respect to natural gas or manufactured gas, the use of
which is taxable under RCW 82.12.022, including gas that is also
taxable under the authority of RCW 82.14.230, the first act within this
state by which the taxpayer consumes the gas by burning the gas or
storing the gas in the taxpayer's own facilities for later consumption
by the taxpayer;
(7) "Taxpayer" and "purchaser" include all persons included within
the meaning of the word "buyer" and the word "consumer" as defined in
chapters 82.04 and 82.08 RCW;
(8)(a)(i) Except as provided in (a)(ii) of this subsection (8),
"retailer" means every seller as defined in RCW 82.08.010 and every
person engaged in the business of selling tangible personal property at
retail and every person required to collect from purchasers the tax
imposed under this chapter.
(ii) "Retailer" does not include a professional employer
organization when a covered employee coemployed with the client under
the terms of a professional employer agreement engages in activities
that constitute a sale of tangible personal property, extended
warranty, digital good, digital code, or a sale of any digital
automated service or service defined as a retail sale in RCW 82.04.050
(2) (a) or (g), (3)(a), or (6)(b) that is subject to the tax imposed by
this chapter. In such cases, the client, and not the professional
employer organization, is deemed to be the retailer and is responsible
for collecting and remitting the tax imposed by this chapter.
(b) For the purposes of (a) of this subsection, the terms "client,"
"covered employee," "professional employer agreement," and
"professional employer organization" have the same meanings as in RCW
82.04.540;
(9) "Extended warranty" has the same meaning as in RCW
82.04.050(7);
(10) The meaning ascribed to words and phrases in chapters 82.04
and 82.08 RCW, insofar as applicable, ((shall have)) has full force and
effect with respect to taxes imposed under the provisions of this
chapter. "Consumer," in addition to the meaning ascribed to it in
chapters 82.04 and 82.08 RCW insofar as applicable, ((shall)) also
means any person who distributes or displays, or causes to be
distributed or displayed, any article of tangible personal property,
except newspapers, the primary purpose of which is to promote the sale
of products or services. With respect to property distributed to
persons within this state by a consumer as defined in this subsection
(10), the use of the property shall be deemed to be by such consumer.
Sec. 11 RCW 82.14.230 and 1989 c 384 s 2 are each amended to read
as follows:
(2) The tax ((shall be)) is imposed in an amount equal to the value
of the article used by the taxpayer multiplied by the rate in effect
for the tax on natural gas businesses under RCW 35.21.870 in the city
in which the article is used. The "value of the article used," does
not include any amounts that are paid for the hire or use of a natural
gas business in transporting the gas subject to tax under this
subsection if those amounts are subject to tax under RCW 35.21.870.
(3) The tax imposed under this section ((shall)) does not apply to
the use of natural or manufactured gas if the person who sold the gas
to the consumer has paid a tax under RCW 35.21.870 with respect to the
gas for which exemption is sought under this subsection.
(4) There ((shall be)) is a credit against the tax levied under
this section in an amount equal to any tax paid by:
(a) The person who sold the gas to the consumer when that tax is a
gross receipts tax similar to that imposed pursuant to RCW 35.21.870 by
another ((state)) municipality or other unit of local government with
respect to the gas for which a credit is sought under this subsection;
or
(b) The person consuming the gas upon which a use tax similar to
the tax imposed by this section was paid to another ((state))
municipality or other unit of local government with respect to the gas
for which a credit is sought under this subsection.
(5) The use tax ((hereby)) imposed ((shall)) must be paid by the
consumer. The administration and collection of the tax ((hereby))
imposed ((shall be)) is pursuant to RCW 82.14.050.
NEW SECTION. Sec. 12 Section 6 of this act constitutes a new
chapter in Title
NEW SECTION. Sec. 13 Sections 2 and 4 of this act take effect
January 1, 2015.
NEW SECTION. Sec. 14 Sections 1 and 3 of this act expire January
1, 2015.
NEW SECTION. Sec. 15 Section 9 of this act takes effect June 30,
2012.
NEW SECTION. Sec. 16 Section 8 of this act expires June 30,
2012.