S-3707               _______________________________________________

                                                   SENATE BILL NO. 4562

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senator Goltz

Read first time 1/15/86 and referred to Committee on Ways & 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; creating a new section; 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:

          The tax levied by RCW 82.08.020 shall not apply to lease amounts paid by a seller/lessee to a lessor under sale/leaseback agreement nor to the purchase amount paid by the lessee pursuant to an option to purchase at the end of the lease term.  The term "sale/leaseback agreement" means a written agreement with an option to purchase that provides for the sale of tangible personal property to a lessor and the immediate leaseback of the same property to the seller/lessee, but the property must have been initially acquired or previously used by the seller/lessee under such circumstances that the acquisition or use thereof by the seller/lessee was subject to tax under this chapter or chapter 82.12 RCW.

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 lease amounts paid by a seller/lessee to a lessor under sale/leaseback agreement nor to the purchase amount paid by the lessee pursuant to an option to purchase at the end of the lease term.  The term "sale/leaseback agreement" means a written agreement with an option to purchase that provides for the sale of tangible personal property to a lessor and the immediate leaseback of the same property to the seller/lessee, but the property must have been initially acquired or previously used by the seller/lessee under such circumstances that the acquisition or use thereof by the seller/lessee was subject to tax under this chapter or chapter 82.08 RCW.

NEW SECTION. Sec. 3.     This act applies to payments made or received after the effective date of this act pursuant to leases executed before, on, or after the effective date of this act.

NEW SECTION. Sec. 4.     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 immediately.