S-1345               _______________________________________________

                                                   SENATE BILL NO. 3875

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Cantu, Hayner, Lee, Deccio, McCaslin and Johnson

Read first time 2/8/85 and referred to Committee on Ways and Means.

AN ACT Relating to retail sales and use taxation; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective date; and declaring an emergency.

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:

          (1) The tax levied by RCW 82.08.020 shall not apply to sales of manufacturing equipment, molds, tools and dies, research and development equipment, and computer software by start-up businesses and business expansions.

          (2) To qualify for exemption under this section and section 2 of this act, a person shall apply for the prior approval of the department of revenue.

          (3) The total amount of exemptions granted under this section shall not exceed three million dollars over a two-year period.

          (4) The department shall adopt rules to implement this section and section 2 of this act.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.12 RCW to read as follows:

          The provisions of this chapter shall not apply with respect to the use of manufacturing equipment, molds, tools and dies, research and development equipment, and computer software by start-up businesses and business expansions.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985.