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                                                   HOUSE BILL NO. 1022

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State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Silver, G. Nelson, Hastings, Thomas, Brough, J. Williams, Long, Isaacson, May and L. Smith; by Small Business Improvement Council request

Read first time 2/8/85 and referred to Committee on Trade & Economic Development.

AN ACT Relating to sales and use taxes; adding new sections to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

          As used in sections 1 and 2 of this act, the following definitions apply:

          (1) "Software" means such items of software as are directly used for business purposes.

          (2) "Manufacturing equipment" means such equipment as is directly used to manufacture a product for sale.

          (3) "Research and development equipment" means such equipment as may be required to develop a product for sale.

          (4) "Molds, tools, and dies" means such equipment as will be directly used in the operation of a business which provides a product for sale.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

          The tax levied by RCW 82.08.010 shall not apply to sales of software, manufacturing equipment, research and development equipment, and molds, tools, and dies to businesses as defined under RCW 82.04.140.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.12 RCW to read as follows:

          The tax levied by RCW 82.12.020 shall not apply to the use of software, manufacturing equipment, research and development equipment, and molds, tools, and dies by businesses as defined under RCW 82.04.140.

NEW SECTION. Sec. 4.     The department shall adopt rules to implement this act including rules on the procedure to be followed and information required to be submitted to qualify for an exemption under this act.

NEW SECTION. Sec. 5.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.