PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: WAC 458-20-24001 Sales and use tax deferral -- Manufacturing and research/development activities in distressed areas -- Applications filed after July 31, 1999 and 458-20-24001A Sales and use tax deferral -- Manufacturing and research/development activities in distressed areas -- Applications filed prior to August 1, 1999.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.01.060 and 82.32.300.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: These rules implement the distressed area sales and use tax deferral statutes and explain the administrative procedures for the programs. The department anticipates making the following changes to Rule 24001:
| • | Subsection (2), clarifying existing definitions and adding a new definition for "date of application"; |
| • | Subsection (5), clarifying the explanation of the apportionment formula (no change to the formula provided in the rule) for building construction and providing an additional formula to provide flexibility to taxpayers; |
| • | Subsection (7), explaining that the department will consider approving an application only if construction will begin within one year or the applicant can establish that there is a specific and active program to begin construction within two years; and |
| • | Subsection (13), explaining that in the case of a project no longer satisfying required employment positions, while no interest or penalties apply to the deferred sales or use taxes found owing, other penalties and interest that apply to delinquent payments will apply. Subsection (13) currently explains that interest but not penalties apply to taxes found owing. |
| • | Subsections (4), (17), and (30), clarifying the explanation of the apportionment formula for building construction (no change to the formula provided in the rule); and |
| • | Subsection (27), correcting an inaccurate definition of "person." |
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.
Process for Developing New Rule: Modified negotiated rule making.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, e-mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary discussion draft of a possible new or revised rule(s) is available upon request. Written comments on and/or requests for copies of the draft may be directed to Cindy Evans, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6134, fax (360) 664-0693, e-mail cindyev@dor.wa.gov.
Date and Location of Public Meeting: Capital Plaza Building, 4th Floor Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on September 8, 2003, at 9:30 a.m.
Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TTY 1-800-451-7985 or (360) 570-6175.
July 9, 2003
Alan R. Lynn
Rules Coordinator
Legislation and Policy Division