WSR 05-05-061

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed February 15, 2005, 11:13 a.m. ]

Subject of Possible Rule Making: WAC 458-20-24001 Sales and use tax deferral -- Manufacturing and research/development activities in ((distressed areas)) rural counties -- Applications filed after ((July 31, 1999)) March 31, 2004 and 458-20-24001A Sales and use tax deferral -- Manufacturing and research/development activities in ((distressed areas)) rural counties -- Applications filed prior to ((August 1, 1999)) April 1, 2004.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300 and 82.01.060(2).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Chapter 82.60 RCW establishes a sales and use tax deferral program. The purpose of the program is to promote economic stimulation, create employment opportunities, and reduce poverty in certain areas of the state. The legislature established this program to be effective solely in those areas and under circumstances where the deferral is for investments that result in the creation of a specified minimum number of jobs or investment for a qualifying project.

The department is considering a revision to this rule to incorporate provisions of chapter 25, Laws of 2004. These provisions extend the expiration date of the deferral program to July 1, 2010. Furthermore, they require a recipient of the deferral to complete an annual survey. The definitions of eligible area and eligible investment project are also revised.

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, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Allan C. Lau, Interpretations and Technical Advice Unit, P.O. Box 47453, Olympia, WA 98504-47453 [98504-7453], e-mail Allanl@dor.wa.gov, phone (360) 570-6134, fax (360) 586-5543.

Public Meeting Location: Capital Plaza Building, 4th Floor, L&P Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on March 30, 2005, at 1:30 p.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) 725-7499.

February 15, 2005

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office