BILL REQ. #: S-4533.2
| State of Washington | 61st Legislature | 2010 Regular Session |
Read first time 02/04/10. Referred to Committee on Ways & Means.
AN ACT Relating to tax preferences; amending RCW 84.36.040, 82.38.180, 82.16.020, 82.16.020, 82.16.050, 82.04.280, 82.04.280, and 48.14.020; amending 2009 c 461 s 9 (uncodified); reenacting and amending RCW 82.04.260; repealing RCW 82.04.350, 82.36.280, 82.04.4282, 82.04.330, 82.04.410, 82.08.0261, 84.36.635, 82.29A.135, 84.36.640, 82.08.0257, 82.12.0258, 84.36.130, 48.36A.240, 82.04.4289, 82.16.0491, 82.04.4483, 82.04.4484, 82.08.841, 82.12.841, 82.04.4485, 82.08.0253, and 82.12.0345; providing effective dates; providing a contingent effective date; providing an expiration date; and providing a contingent expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 84.36.040 and 2001 c 126 s 1 are each amended to read
as follows:
(1) The real and personal property used by nonprofit (a) day care
centers as defined pursuant to RCW 74.15.020; (b) free public
libraries; (c) ((orphanages and orphan asylums; (d))) homes for the
sick or infirm; (((e) hospitals for the sick;)) and (((f))) (d)
outpatient dialysis facilities, which are used for the purposes of such
organizations shall be exempt from taxation((: PROVIDED, That)). The
benefit of the exemption must inure((s)) to the user.
(2) The real and personal property leased to and used by a
hospital, owned and operated by a public hospital district established
under chapter 70.44 RCW, for hospital purposes is exempt from taxation.
The benefit of the exemption must inure to the user.
(3) To be exempt under this section, the property must be used
exclusively for the purposes for which exemption is granted, except as
provided in RCW 84.36.805.
Sec. 2 RCW 82.38.180 and 2007 c 515 s 29 are each amended to read
as follows:
(1) Any person who has purchased special fuel on which tax has been
paid may file a claim with the department for a refund of the tax for:
(((1) Taxes previously paid on special fuel used for purposes other
than for the propulsion of motor vehicles upon the public highways in
this state.)) (a) Taxes previously paid on special fuel exported for use
outside of this state. Special fuel carried from this state in the
fuel tank of a motor vehicle is deemed to be exported from this state.
Special fuel distributed to a federally recognized Indian tribal
reservation located within the state of Washington is not considered
exported outside this state.
(2)
(((3))) (b) Tax, penalty, or interest erroneously or illegally
collected or paid.
(((4))) (c) Taxes previously paid on all special fuel which is lost
or destroyed, while the licensee shall be the owner thereof, through
fire, lightning, flood, wind storm, or explosion.
(((5))) (d) Taxes previously paid on all special fuel of five
hundred gallons or more which is lost or destroyed while the licensee
shall be the owner thereof, through leakage or other casualty except
evaporation, shrinkage, or unknown causes.
(((6))) (e) Taxes previously paid on special fuel that is
inadvertently mixed with dyed special fuel.
(2) Recovery for such loss or destruction under either subsection
(((4), (5), or (6))) (1)(c), (d), or (e) of this section must be
susceptible to positive proof thereby enabling the department to
conduct such investigation and require such information as it may deem
necessary. In the event that the department is not satisfied that the
fuel was lost, destroyed, or contaminated as claimed because
information or proof as required hereunder is not sufficient to
substantiate the accuracy of the claim, it may deem such as sufficient
cause to deny all right relating to the refund or credit for the excise
tax paid on special fuel alleged to be lost or destroyed.
(3) No refund or claim for credit ((shall)) may be approved by the
department unless the gallons of special fuel claimed as nontaxable
satisfy the conditions specifically set forth in this section and the
nontaxable event or use occurred during the period covered by the
refund claim. Refunds or claims for credit ((shall)) are not ((be))
allowed for anticipated nontaxable use or events.
Sec. 3 RCW 82.16.020 and 2009 c 469 s 702 are each amended to
read as follows:
(1) There is levied and ((there shall be)) collected from every
person a tax for the act or privilege of engaging within this state in
any one or more of the businesses herein mentioned. The tax ((shall
be)) is equal to the gross income of the business, multiplied by the
rate set out after the business, as follows:
(a) Express, sewerage collection, and telegraph businesses: Three
and six-tenths percent;
(b) Light and power business: Three and sixty-two one-hundredths
percent;
(c) Gas distribution business: Three and six-tenths percent;
(d) ((Urban transportation business: Six-tenths of one percent;)) Motor transportation, railroad, railroad car, and tugboat
businesses, and all public service businesses other than ones mentioned
above: One and eight-tenths of one percent;
(e) Vessels under sixty-five feet in length, except tugboats,
operating upon the waters within the state: Six-tenths of one percent;
(f)
(((g))) (e) Water distribution business: Four and seven-tenths
percent;
(((h))) (f) Log transportation business: One and twenty-eight one-hundredths percent.
(2) An additional tax is imposed equal to the rate specified in RCW
82.02.030 multiplied by the tax payable under subsection (1) of this
section.
(3) Twenty percent of the moneys collected under subsection (1) of
this section on water distribution businesses and sixty percent of the
moneys collected under subsection (1) of this section on sewerage
collection businesses ((shall)) must be deposited in the public works
assistance account created in RCW 43.155.050.
Sec. 4 RCW 82.16.020 and 1996 c 150 s 2 are each amended to read
as follows:
(1) There is levied and ((there shall be)) collected from every
person a tax for the act or privilege of engaging within this state in
any one or more of the businesses herein mentioned. The tax ((shall
be)) is equal to the gross income of the business, multiplied by the
rate set out after the business, as follows:
(a) Express, sewerage collection, and telegraph businesses: Three
and six-tenths percent;
(b) Light and power business: Three and sixty-two one-hundredths
percent;
(c) Gas distribution business: Three and six-tenths percent;
(d) ((Urban transportation business: Six-tenths of one percent;)) Motor transportation, railroad, railroad car, and tugboat
businesses, and all public service businesses other than ones mentioned
above: One and eight-tenths of one percent;
(e) Vessels under sixty-five feet in length, except tugboats,
operating upon the waters within the state: Six-tenths of one percent;
(f)
(((g))) (e) Water distribution business: Four and seven-tenths
percent.
(2) An additional tax is imposed equal to the rate specified in RCW
82.02.030 multiplied by the tax payable under subsection (1) of this
section.
(3) Twenty percent of the moneys collected under subsection (1) of
this section on water distribution businesses and sixty percent of the
moneys collected under subsection (1) of this section on sewerage
collection businesses ((shall)) must be deposited in the public works
assistance account created in RCW 43.155.050.
Sec. 5 RCW 82.04.260 and 2009 c 479 s 64, 2009 c 461 s 1, and
2009 c 162 s 34 are each reenacted and amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) ((Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business shall be equal to the value
of the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;)) Beginning July 1, 2012, seafood products that remain in a
raw, raw frozen, or raw salted state at the completion of the
manufacturing by that person; or selling manufactured seafood products
that remain in a raw, raw frozen, or raw salted state at the completion
of the manufacturing, to purchasers who transport in the ordinary
course of business the goods out of this state; as to such persons the
amount of tax with respect to such business ((
(b)shall be)) is equal to
the value of the products manufactured or the gross proceeds derived
from such sales, multiplied by the rate of 0.138 percent. Sellers must
keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the
ordinary course of business out of this state;
(((c))) (b) Beginning July 1, 2012, dairy products that as of
September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131,
133, and 135, including by-products from the manufacturing of the dairy
products such as whey and casein; or selling the same to purchasers who
transport in the ordinary course of business the goods out of state; as
to such persons the tax imposed ((shall be)) is equal to the value of
the products manufactured or the gross proceeds derived from such sales
multiplied by the rate of 0.138 percent. Sellers must keep and
preserve records for the period required by RCW 82.32.070 establishing
that the goods were transported by the purchaser in the ordinary course
of business out of this state;
(((d))) (c) Beginning July 1, 2012, fruits or vegetables by
canning, preserving, freezing, processing, or dehydrating fresh fruits
or vegetables, or selling at wholesale fruits or vegetables
manufactured by the seller by canning, preserving, freezing,
processing, or dehydrating fresh fruits or vegetables and sold to
purchasers who transport in the ordinary course of business the goods
out of this state; as to such persons the amount of tax with respect to
such business shall be equal to the value of the products manufactured
or the gross proceeds derived from such sales multiplied by the rate of
0.138 percent. Sellers must keep and preserve records for the period
required by RCW 82.32.070 establishing that the goods were transported
by the purchaser in the ordinary course of business out of this state;
(((e) Until July 1, 2009, alcohol fuel, biodiesel fuel, or
biodiesel feedstock, as those terms are defined in RCW 82.29A.135; as
to such persons the amount of tax with respect to the business shall be
equal to the value of alcohol fuel, biodiesel fuel, or biodiesel
feedstock manufactured, multiplied by the rate of 0.138 percent; and)) (d)(i) Alcohol fuel or wood biomass fuel((
(f), as those terms
are defined in RCW 82.29A.135)); as to such persons the amount of tax
with respect to the business ((shall be)) is equal to the value of
alcohol fuel or wood biomass fuel manufactured, multiplied by the rate
of 0.138 percent.
(ii) For the purposes of this subsection (1)(d):
(A) "Alcohol fuel" means any alcohol made from a product other than
petroleum or natural gas, which is used alone or in combination with
gasoline or other petroleum products for use as a fuel for motor
vehicles, farm implements, and machines or implements of husbandry; and
(B) "Wood biomass fuel" means a pyrolytic liquid fuel or synthesis
gas-derived liquid fuel, used in internal combustion engines, and
produced from wood, forest, or field residue, or dedicated energy crops
that do not include wood pieces that have been treated with chemical
preservatives such as creosote, pentachlorophenol, or copper-chroma-arsenic.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business ((shall be)) is equal to the value of
the peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities ((shall be)) is equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed ((shall be)) is equal to the gross proceeds
derived from such sales multiplied by the rate of 0.138 percent.
(5) Upon every person engaging within this state in the business of
acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities ((shall be)) is equal
to the gross income derived from such activities multiplied by the rate
of 0.275 percent.
(6) Upon every person engaging within this state in business as an
international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities ((shall be)) is equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of
stevedoring and associated activities pertinent to the movement of
goods and commodities in waterborne interstate or foreign commerce; as
to such persons the amount of tax with respect to such business ((shall
be)) is equal to the gross proceeds derived from such activities
multiplied by the rate of 0.275 percent. Persons subject to taxation
under this subsection ((shall be)) are exempt from payment of taxes
imposed by chapter 82.16 RCW for that portion of their business subject
to taxation under this subsection. Stevedoring and associated
activities pertinent to the conduct of goods and commodities in
waterborne interstate or foreign commerce are defined as all activities
of a labor, service or transportation nature whereby cargo may be
loaded or unloaded to or from vessels or barges, passing over, onto or
under a wharf, pier, or similar structure; cargo may be moved to a
warehouse or similar holding or storage yard or area to await further
movement in import or export or may move to a consolidation freight
station and be stuffed, unstuffed, containerized, separated or
otherwise segregated or aggregated for delivery or loaded on any mode
of transportation for delivery to its consignee. Specific activities
included in this definition are: Wharfage, handling, loading,
unloading, moving of cargo to a convenient place of delivery to the
consignee or a convenient place for further movement to export mode;
documentation services in connection with the receipt, delivery,
checking, care, custody and control of cargo required in the transfer
of cargo; imported automobile handling prior to delivery to consignee;
terminal stevedoring and incidental vessel services, including but not
limited to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(8)(a) Upon every person engaging within this state in the business
of disposing of low-level waste, as defined in RCW 43.145.010; as to
such persons the amount of the tax with respect to such business
((shall be)) is equal to the gross income of the business, excluding
any fees imposed under chapter 43.200 RCW, multiplied by the rate of
3.3 percent.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state ((shall)) must be determined in accordance
with the methods of apportionment required under RCW 82.04.460.
(9) Upon every person engaging within this state as an insurance
producer or title insurance agent licensed under chapter 48.17 RCW or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
((shall be)) is equal to the gross income of such business multiplied
by the rate of 0.484 percent.
(10) Upon every person engaging within this state in business as a
hospital, as defined in chapter 70.41 RCW, that is operated as a
nonprofit corporation or by the state or any of its political
subdivisions, as to such persons, the amount of tax with respect to
such activities ((shall be)) is equal to the gross income of the
business multiplied by the rate of 0.75 percent through June 30, 1995,
and 1.5 percent thereafter.
(11)(a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, or making sales, at retail
or wholesale, of commercial airplanes or components of such airplanes,
manufactured by the seller, as to such persons the amount of tax with
respect to such business ((shall)), in the case of manufacturers,
((be)) is equal to the value of the product manufactured and the gross
proceeds of sales of the product manufactured, or in the case of
processors for hire, ((be)) is equal to the gross income of the
business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning July 1, 2008, upon every person who is not eligible
to report under the provisions of (a) of this subsection (11) and is
engaging within this state in the business of manufacturing tooling
specifically designed for use in manufacturing commercial airplanes or
components of such airplanes, or making sales, at retail or wholesale,
of such tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business ((shall)), in the case of
manufacturers, ((be)) is equal to the value of the product manufactured
and the gross proceeds of sales of the product manufactured, or in the
case of processors for hire, ((be)) is equal to the gross income of the
business, multiplied by the rate of 0.2904 percent.
(c) For the purposes of this subsection (11), "commercial airplane"
and "component" have the same meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person eligible for the tax rate under this subsection (11) must report
as required under RCW 82.32.545.
(e) This subsection (11) does not apply on and after July 1, 2024.
(12)(a) Until July 1, 2024, upon every person engaging within this
state in the business of extracting timber or extracting for hire
timber; as to such persons the amount of tax with respect to the
business ((shall)), in the case of extractors, ((be)) is equal to the
value of products, including by-products, extracted, or in the case of
extractors for hire, ((be)) is equal to the gross income of the
business, multiplied by the rate of 0.4235 percent from July 1, 2006,
through June 30, 2007, and 0.2904 percent from July 1, 2007, through
June 30, 2024.
(b) Until July 1, 2024, upon every person engaging within this
state in the business of manufacturing or processing for hire: (i)
Timber into timber products or wood products; or (ii) timber products
into other timber products or wood products; as to such persons the
amount of the tax with respect to the business ((shall)), in the case
of manufacturers, ((be)) is equal to the value of products, including
by-products, manufactured, or in the case of processors for hire,
((be)) is equal to the gross income of the business, multiplied by the
rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and
0.2904 percent from July 1, 2007, through June 30, 2024.
(c) Until July 1, 2024, upon every person engaging within this
state in the business of selling at wholesale: (i) Timber extracted by
that person; (ii) timber products manufactured by that person from
timber or other timber products; or (iii) wood products manufactured by
that person from timber or timber products; as to such persons the
amount of the tax with respect to the business ((shall be)) is equal to
the gross proceeds of sales of the timber, timber products, or wood
products multiplied by the rate of 0.4235 percent from July 1, 2006,
through June 30, 2007, and 0.2904 percent from July 1, 2007, through
June 30, 2024.
(d) Until July 1, 2024, upon every person engaging within this
state in the business of selling standing timber; as to such persons
the amount of the tax with respect to the business ((shall be)) is
equal to the gross income of the business multiplied by the rate of
0.2904 percent. For purposes of this subsection (12)(d), "selling
standing timber" means the sale of timber apart from the land, where
the buyer is required to sever the timber within thirty months from the
date of the original contract, regardless of the method of payment for
the timber and whether title to the timber transfers before, upon, or
after severance.
(e) For purposes of this subsection, the following definitions
apply:
(i) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven
cellulosic fibers held together largely by hydrogen bonding. "Paper
and paper products" includes newsprint; office, printing, fine, and
pressure-sensitive papers; paper napkins, towels, and toilet tissue;
kraft bag, construction, and other kraft industrial papers; paperboard,
liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and
related types of cellulosic products containing primarily, by weight or
volume, cellulosic materials. "Paper and paper products" does not
include books, newspapers, magazines, periodicals, and other printed
publications, advertising materials, calendars, and similar types of
printed materials.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (12)(e)(iii), "postconsumer
waste" means a finished material that would normally be disposed of as
solid waste, having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or
publicly owned land. "Timber" does not include Christmas trees that
are cultivated by agricultural methods or short-rotation hardwoods as
defined in RCW 84.33.035.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products
obtained wholly from the processing of timber, short-rotation hardwoods
as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional
lumber; engineered wood products such as particleboard, oriented strand
board, medium density fiberboard, and plywood; wood doors; wood
windows; and biocomposite surface products.
(13) Upon every person engaging within this state in inspecting,
testing, labeling, and storing canned salmon owned by another person,
as to such persons, the amount of tax with respect to such activities
((shall be)) is equal to the gross income derived from such activities
multiplied by the rate of 0.484 percent.
(14) Upon every person engaging within this state in the business
of printing a newspaper, publishing a newspaper, or both, the amount of
tax on such business is equal to the gross income of the business
multiplied by the rate of 0.2904 percent.
Sec. 6 RCW 82.16.050 and 2007 c 330 s 1 are each amended to read
as follows:
In computing tax there may be deducted from the gross income the
following items:
(1) Amounts derived by municipally owned or operated public service
businesses, directly from taxes levied for the support or maintenance
thereof. This subsection may not be construed to exempt service
charges which are spread on the property tax rolls and collected as
taxes;
(2) Amounts derived from the sale of commodities to persons in the
same public service business as the seller, for resale as such within
this state. This deduction is allowed only with respect to water
distribution, gas distribution or other public service businesses which
furnish water, gas or any other commodity in the performance of public
service businesses;
(3) Amounts actually paid by a taxpayer to another person taxable
under this chapter as the latter's portion of the consideration due for
services furnished jointly by both, if the total amount has been
credited to and appears in the gross income reported for tax by the
former;
(4) The amount of cash discount actually taken by the purchaser or
customer;
(5) The amount of bad debts, as that term is used in 26 U.S.C. Sec.
166, as amended or renumbered as of January 1, 2003, on which tax was
previously paid under this chapter;
(6) Amounts derived from business which the state is prohibited
from taxing under the Constitution of this state or the Constitution or
laws of the United States;
(7) ((Amounts derived from the distribution of water through an
irrigation system, for irrigation purposes;)) Amounts derived from the transportation of commodities from
points of origin in this state to final destination outside this state,
or from points of origin outside this state to final destination in
this state, with respect to which the carrier grants to the shipper the
privilege of stopping the shipment in transit at some point in this
state for the purpose of storing, manufacturing, milling, or other
processing, and thereafter forwards the same commodity, or its
equivalent, in the same or converted form, under a through freight rate
from point of origin to final destination;
(8)
(((9))) (8) Amounts derived from the transportation of commodities
from points of origin in the state to an export elevator, wharf, dock
or ship side on tidewater or its navigable tributaries to be forwarded,
without intervening transportation, by vessel, in their original form,
to interstate or foreign destinations. No deduction is allowed under
this subsection when the point of origin and the point of delivery to
the export elevator, wharf, dock, or ship side are located within the
corporate limits of the same city or town;
(((10))) (9) Amounts derived from the transportation of
agricultural commodities, not including manufactured substances or
articles, from points of origin in the state to interim storage
facilities in this state for transshipment, without intervening
transportation, to an export elevator, wharf, dock, or ship side on
tidewater or its navigable tributaries to be forwarded, without
intervening transportation, by vessel, in their original form, to
interstate or foreign destinations. If agricultural commodities are
transshipped from interim storage facilities in this state to storage
facilities at a port on tidewater or its navigable tributaries, the
same agricultural commodity dealer must operate both the interim
storage facilities and the storage facilities at the port.
(a) The deduction under this subsection is available only when the
person claiming the deduction obtains a certificate from the
agricultural commodity dealer operating the interim storage facilities,
in a form and manner prescribed by the department, certifying that:
(i) More than ninety-six percent of all of the type of agricultural
commodity delivered by the person claiming the deduction under this
subsection and delivered by all other persons to the dealer's interim
storage facilities during the preceding calendar year was shipped by
vessel in original form to interstate or foreign destinations; and
(ii) Any of the agricultural commodity that is transshipped to
ports on tidewater or its navigable tributaries will be received at
storage facilities operated by the same agricultural commodity dealer
and will be shipped from such facilities, without intervening
transportation, by vessel, in their original form, to interstate or
foreign destinations.
(b) As used in this subsection, "agricultural commodity" has the
same meaning as agricultural product in RCW 82.04.213;
(((11))) (10) Amounts derived from the production, sale, or
transfer of electrical energy for resale within or outside the state or
for consumption outside the state;
(((12))) (11) Amounts derived from the distribution of water by a
nonprofit water association and used for capital improvements by that
nonprofit water association;
(((13))) (12) Amounts paid by a sewerage collection business
taxable under RCW 82.16.020(1)(a) to a person taxable under chapter
82.04 RCW for the treatment or disposal of sewage;
(((14))) (13) Amounts derived from fees or charges imposed on
persons for transit services provided by a public transportation
agency. For the purposes of this subsection, "public transportation
agency" means a municipality, as defined in RCW 35.58.272, and urban
public transportation systems, as defined in RCW 47.04.082. Public
transportation agencies ((shall)) must spend an amount equal to the
reduction in tax provided by this tax deduction solely to adjust routes
to improve access for citizens using food banks and senior citizen
services or to extend or add new routes to assist low-income citizens
and seniors.
Sec. 7 RCW 82.04.280 and 2009 c 461 s 2 are each amended to read
as follows:
(1) Upon every person engaging within this state in the business
of: (((1))) (a) Printing materials other than newspapers, and of
publishing periodicals or magazines; (((2))) (b) building, repairing or
improving any street, place, road, highway, easement, right-of-way,
mass public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state or by the United States and which is
used or to be used, primarily for foot or vehicular traffic including
mass transportation vehicles of any kind and including any
readjustment, reconstruction or relocation of the facilities of any
public, private or cooperatively owned utility or railroad in the
course of such building, repairing or improving, the cost of which
readjustment, reconstruction, or relocation, is the responsibility of
the public authority whose street, place, road, highway, easement,
right-of-way, mass public transportation terminal or parking facility,
bridge, tunnel, or trestle is being built, repaired or improved;
(((3))) (c) extracting for hire or processing for hire, except persons
taxable as extractors for hire or processors for hire under another
section of this chapter; (((4))) (d) operating a cold storage warehouse
or storage warehouse, but not including the rental of cold storage
lockers; (((5))) (e) representing and performing services for fire or
casualty insurance companies as an independent resident managing
general agent ((licensed under the provisions of RCW 48.05.310; (6)
radio and television broadcasting, excluding network, national and
regional advertising computed as a standard deduction based on the
national average thereof as annually reported by the Federal
Communications Commission, or in lieu thereof by itemization by the
individual broadcasting station, and excluding that portion of revenue
represented by the out-of-state audience computed as a ratio to the
station's total audience as measured by the 100 micro-volt signal
strength and delivery by wire, if any; (7))); (f) engaging in
activities which bring a person within the definition of consumer
contained in RCW 82.04.190(6); as to such persons, the amount of tax on
such business is equal to the gross income of the business multiplied
by the rate of 0.484 percent.
((As used)) (2) The definitions in this section((,)) apply
throughout this section unless the context clearly requires otherwise.
(a) "Cold storage warehouse" means a storage warehouse used to
store fresh and/or frozen perishable fruits or vegetables, meat,
seafood, dairy products, or fowl, or any combination thereof, at a
desired temperature to maintain the quality of the product for orderly
marketing.
((As used in this section,)) (b) "Storage warehouse" means a
building or structure, or any part thereof, in which goods, wares, or
merchandise are received for storage for compensation, except field
warehouses, fruit warehouses, fruit packing plants, warehouses licensed
under chapter 22.09 RCW, public garages storing automobiles, railroad
freight sheds, docks and wharves, and "self-storage" or "mini storage"
facilities whereby customers have direct access to individual storage
areas by separate entrance. "Storage warehouse" does not include a
building or structure, or that part of such building or structure, in
which an activity taxable under RCW 82.04.272 is conducted.
((As used in this section,))
(c) "Periodical or magazine" means a printed publication, other
than a newspaper, issued regularly at stated intervals at least once
every three months, including any supplement or special edition of the
publication.
Sec. 8 RCW 82.04.280 and 2009 c 461 s 3 are each amended to read
as follows:
(1) Upon every person engaging within this state in the business
of: (((1))) (a) Printing materials other than newspapers, and of
publishing periodicals or magazines; (((2))) (b) building, repairing or
improving any street, place, road, highway, easement, right-of-way,
mass public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state or by the United States and which is
used or to be used, primarily for foot or vehicular traffic including
mass transportation vehicles of any kind and including any
readjustment, reconstruction or relocation of the facilities of any
public, private or cooperatively owned utility or railroad in the
course of such building, repairing or improving, the cost of which
readjustment, reconstruction, or relocation, is the responsibility of
the public authority whose street, place, road, highway, easement,
right-of-way, mass public transportation terminal or parking facility,
bridge, tunnel, or trestle is being built, repaired or improved;
(((3))) (c) extracting for hire or processing for hire, except persons
taxable as extractors for hire or processors for hire under another
section of this chapter; (((4))) (d) operating a cold storage warehouse
or storage warehouse, but not including the rental of cold storage
lockers; (((5))) (e) representing and performing services for fire or
casualty insurance companies as an independent resident managing
general agent ((licensed under the provisions of RCW 48.05.310; (6)
radio and television broadcasting, excluding network, national and
regional advertising computed as a standard deduction based on the
national average thereof as annually reported by the Federal
Communications Commission, or in lieu thereof by itemization by the
individual broadcasting station, and excluding that portion of revenue
represented by the out-of-state audience computed as a ratio to the
station's total audience as measured by the 100 micro-volt signal
strength and delivery by wire, if any; (7))); (f) engaging in
activities which bring a person within the definition of consumer
contained in RCW 82.04.190(6); as to such persons, the amount of tax on
such business is equal to the gross income of the business multiplied
by the rate of 0.484 percent.
((As used)) (2) The definitions in this section((,)) apply
throughout this section unless the context clearly requires otherwise.
(a) "Cold storage warehouse" means a storage warehouse used to
store fresh and/or frozen perishable fruits or vegetables, meat,
seafood, dairy products, or fowl, or any combination thereof, at a
desired temperature to maintain the quality of the product for orderly
marketing.
((As used in this section,)) (b) "Storage warehouse" means a
building or structure, or any part thereof, in which goods, wares, or
merchandise are received for storage for compensation, except field
warehouses, fruit warehouses, fruit packing plants, warehouses licensed
under chapter 22.09 RCW, public garages storing automobiles, railroad
freight sheds, docks and wharves, and "self-storage" or "mini storage"
facilities whereby customers have direct access to individual storage
areas by separate entrance. "Storage warehouse" does not include a
building or structure, or that part of such building or structure, in
which an activity taxable under RCW 82.04.272 is conducted.
((As used in this section,)) (c) "Periodical or magazine" means a
printed publication, other than a newspaper, issued regularly at stated
intervals at least once every three months, including any supplement or
special edition of the publication.
Sec. 9 RCW 48.14.020 and 2009 c 161 s 3 are each amended to read
as follows:
(1) Subject to other provisions of this chapter, each authorized
insurer except title insurers ((shall)) must on or before the first day
of March of each year pay to the state treasurer through the
commissioner's office a tax on premiums. Except as provided in
subsection (2) of this section, such tax ((shall be)) is in the amount
of two percent of all premiums, excluding amounts returned to or the
amount of reductions in premiums allowed to holders of industrial life
policies for payment of premiums directly to an office of the insurer,
collected or received by the insurer under RCW 48.14.090 during the
preceding calendar year other than ocean marine and foreign trade
insurances, after deducting premiums paid to policyholders as returned
premiums, upon risks or property resident, situated, or to be performed
in this state. For tax purposes, the reporting of premiums ((shall))
must be on a written basis or on a paid-for basis consistent with the
basis required by the annual statement. For the purposes of this
section the consideration received by an insurer for the granting of an
annuity ((shall)) is not ((be)) deemed to be a premium.
(2) In the case of insurers which require the payment by their
policyholders at the inception of their policies of the entire premium
thereon in the form of premiums or premium deposits which are the same
in amount, based on the character of the risks, regardless of the
length of term for which such policies are written, such tax ((shall
be)) is in the amount of two percent of the gross amount of such
premiums and premium deposits upon policies on risks resident, located,
or to be performed in this state, in force as of the thirty-first day
of December next preceding, less the unused or unabsorbed portion of
such premiums and premium deposits computed at the average rate thereof
actually paid or credited to policyholders or applied in part payment
of any renewal premiums or premium deposits on one-year policies
expiring during such year.
(3) ((Each authorized insurer shall with respect to all ocean
marine and foreign trade insurance contracts written within this state
during the preceding calendar year, on or before the first day of March
of each year pay to the state treasurer through the commissioner's
office a tax of ninety-five one-hundredths of one percent on its gross
underwriting profit. Such gross underwriting profit shall be
ascertained by deducting from the net premiums (i.e., gross premiums
less all return premiums and premiums for reinsurance) on such ocean
marine and foreign trade insurance contracts the net losses paid (i.e.,
gross losses paid less salvage and recoveries on reinsurance ceded)
during such calendar year under such contracts. In the case of
insurers issuing participating contracts, such gross underwriting
profit shall not include, for computation of the tax prescribed by this
subsection, the amounts refunded, or paid as participation dividends,
by such insurers to the holders of such contracts.)) The state does hereby preempt the field of imposing excise or
privilege taxes upon insurers or their appointed insurance producers,
other than title insurers, and no county, city, town or other municipal
subdivision ((
(4)shall have)) has the right to impose any such taxes upon
such insurers or these insurance producers.
(((5))) (4) If an authorized insurer collects or receives any such
premiums on account of policies in force in this state which were
originally issued by another insurer and which other insurer is not
authorized to transact insurance in this state on its own account, such
collecting insurer ((shall be)) is liable for and ((shall)) must pay
the tax on such premiums.
NEW SECTION. Sec. 10 The following acts or parts of acts are
each repealed:
(1) RCW 82.04.350 (Exemptions -- Racing) and 2005 c 369 s 7 & 1961 c
15 s 82.04.350;
(2) RCW 82.36.280 (Refunds for nonhighway use of fuel) and 1998 c
176 s 36, 1993 c 141 s 1, 1985 c 371 s 5, 1980 c 131 s 5, 1972 ex.s. c
138 s 1, 1971 ex.s. c 36 s 1, 1969 ex.s. c 281 s 23, & 1961 c 15 s
82.36.280;
(3) RCW 82.04.4282 (Deductions -- Fees, dues, charges) and 2009 c 535
s 410, 1994 c 124 s 3, 1989 c 392 s 1, & 1980 c 37 s 3;
(4) RCW 82.04.330 (Exemptions -- Sales of agricultural products) and
2001 c 118 s 3, 1993 sp.s. c 25 s 305, 1988 c 253 s 2, & 1987 c 23 s 4;
(5) RCW 82.04.410 (Exemptions -- Hatching eggs and poultry) and 1967
ex.s. c 149 s 15 & 1961 c 15 s 82.04.410;
(6) RCW 82.08.0261 (Exemptions -- Sales of personal property for use
connected with private or common carriers in interstate or foreign
commerce) and 1980 c 37 s 28;
(7) RCW 84.36.635 (Property used for the manufacture of alcohol
fuel or biodiesel fuel) and 2008 c 268 s 1 & 2003 c 261 s 9;
(8) RCW 82.29A.135 (Exemptions -- Property used to manufacture
alcohol, biodiesel, or wood biomass fuel) and 2008 c 268 s 2;
(9) RCW 84.36.640 (Property used for the manufacture of wood
biomass fuel) and 2003 c 339 s 9;
(10) RCW 82.08.0257 (Exemptions -- Auction sales of personal property
used in farming) and 2009 c 535 s 511 & 1980 c 37 s 25;
(11) RCW 82.12.0258 (Exemptions -- Use of personal property
previously used in farming and purchased from farmer at auction) and
2009 c 535 s 612 & 1980 c 37 s 58;
(12) RCW 84.36.130 (Airport property in this state for smaller
airports belonging to municipalities of adjoining states) and 1998 c
201 s 1 & 1961 c 15 s 84.36.130;
(13) RCW 48.36A.240 (Funds tax exempt, exception) and 1987 c 366 s
24;
(14) RCW 82.04.4289 (Exemption -- Compensation for patient services
or attendant sales of drugs dispensed pursuant to prescription by
certain nonprofit organizations) and 2003 c 168 s 402, 1998 c 325 s 1,
1993 c 492 s 305, 1981 c 178 s 2, & 1980 c 37 s 10;
(15) RCW 82.16.0491 (Credit -- Contributions to an electric utility
rural economic development revolving fund) and 2008 c 131 s 4, 2004 c
238 s 1, & 1999 c 311 s 402;
(16) RCW 82.04.4483 (Credit -- Programming or manufacturing software
in rural counties) and 2004 c 25 s 1;
(17) RCW 82.04.4484 (Credit -- Information technology help desk
services in rural counties) and 2004 c 25 s 2;
(18) RCW 82.08.841 (Exemptions -- Farming equipment -- Hay sheds) and
2005 c 420 s 2;
(19) RCW 82.12.841 (Exemptions -- Farming equipment -- Hay sheds) and
2005 c 420 s 3;
(20) RCW 82.04.4485 (Credit -- Mechanical lifting devices purchased
by hospitals) and 2006 c 165 s 5;
(21) RCW 82.08.0253 (Exemptions -- Sale and distribution of
newspapers) and 2009 c 535 s 506 & 1980 c 37 s 21; and
(22) RCW 82.12.0345 (Exemptions -- Use of newspapers) and 2009 c 535
s 618 & 1994 c 124 s 11.
Sec. 11 2009 c 461 s 9 (uncodified) is amended to read as
follows:
(1)(a) Section 8, chapter ..., Laws of 2010 (section 8 of this
act), section 3, chapter 461, Laws of 2009, section 7, chapter 300,
Laws of 2006, and section 4, chapter 149, Laws of 2003 are contingent
upon the siting and commercial operation of a significant semiconductor
microchip fabrication facility in the state of Washington.
(b) For the purposes of this section:
(i) "Commercial operation" means the same as "commencement of
commercial production" as used in RCW 82.08.965.
(ii) "Semiconductor microchip fabrication" means "manufacturing
semiconductor microchips" as defined in RCW 82.04.426.
(iii) "Significant" means the combined investment of new buildings
and new machinery and equipment in the buildings, at the commencement
of commercial production, will be at least one billion dollars.
(2) Chapter 149, Laws of 2003 takes effect the first day of the
month in which a contract for the construction of a significant
semiconductor fabrication facility is signed, as determined by the
director of the department of revenue.
(3)(a) The department of revenue must provide notice of the
effective date of this act to affected taxpayers, the legislature, and
others as deemed appropriate by the department.
(b) If, after making a determination that a contract has been
signed and chapter 149, Laws of 2003 is effective, the department
discovers that commencement of commercial production did not take place
within three years of the date the contract was signed, the department
must make a determination that chapter 149, Laws of 2003 is no longer
effective, and all taxes that would have been otherwise due are deemed
deferred taxes and are immediately assessed and payable from any person
reporting tax under RCW 82.04.240(2) or claiming an exemption or credit
under section 2 or 5 through 10, chapter 149, Laws of 2003. The
department is not authorized to make a second determination regarding
the effective date of chapter 149, Laws of 2003.
NEW SECTION. Sec. 12 Section 3 of this act expires June 30,
2013.
NEW SECTION. Sec. 13 Section 4 of this act takes effect June 30,
2013.
NEW SECTION. Sec. 14 Section 7 of this act expires on the date
that section 8 of this act takes effect.
NEW SECTION. Sec. 15 Section 8 of this act takes effect if the
contingency in section 11 of this act occurs.
NEW SECTION. Sec. 16 Except for sections 4 and 8, this act takes
effect January 1, 2013.