"NEW SECTION.  Sec. 1   A new section is added to chapter 82.32 RCW to read as follows:
     (1) Unless otherwise provided by statute, any tax preference that is passed by the legislature after the effective date of this section:
     (a) Requires the beneficiaries of the tax preference to file a complete annual survey with the department under RCW 82.32.585 if the beneficiary is a business required to be registered with the department;
     (b)(i) Except as otherwise provided in this subsection, expires on the date that is ten years after the date the tax preference became effective. However, if the date that is ten years after the date the tax preference became effective is not the first day of a fiscal year, the tax preference expires on the first day of the next fiscal year.
     (ii) If a tax preference is a property tax exemption and the date that is ten years after the date the exemption became effective is not the first day of a calendar year, the exemption expires on the first day of the next calendar year; and
     (c) Requires a statement of legislative intent describing the context making the tax preference necessary and providing clear and measurable public policy objectives.
     (2) For purposes of subsection (1) of this section:
     (a) Except as provided in this subsection (2)(a), the beneficiary of a tax preference is the taxpayer entitled to claim the tax preference. However, when the ability of a taxpayer to claim a tax preference is conditioned in this title on the taxpayer passing the economic benefit of that tax preference to someone else, the individual or entity receiving the economic benefit of the tax preference is the beneficiary of the tax preference, not the taxpayer.
     (b) "Tax preference that is passed by the legislature" does not include the continuation or expansion of any tax preference originally enacted by the legislature on or before the effective date of this section. For purposes of this subsection (2)(b):
     (i) "Continuation" means that the legislature has taken affirmative action to eliminate or extend an expiration date or otherwise extend the effective period for claiming a tax preference; and
     (ii) "Expansion" means that the legislature has made a change to a tax preference that either increases the number of persons eligible for the tax preference or reduces state tax revenue or the amount of taxable property on the property tax rolls, even if fewer taxpayers will be eligible to claim the tax preference. For purposes of this subsection (2)(b)(ii), the department is responsible for determining whether a change to a tax preference constitutes an expansion and is based on the department's estimate of the impact of the change as reflected in the department's final fiscal note for the legislation that changed the tax preference or in the department's workpapers for such fiscal note. However, if the department did not prepare a fiscal note for the legislation that changed the tax preference or the department is unable to determine from the fiscal note whether the change constitutes an expansion of the tax preference, the department must perform an estimate of the impact of the change within ninety days following the effective date of the change to determine whether the change constitutes an expansion of the tax preference.
     (3) For purposes of this section, the following definitions apply:
     (a) "Fiscal year" means the year beginning July 1st and ending the following June 30th.
     (b) "Tax preference" means the following tax benefits for any state tax administered by the department, including property taxes levied by the state: Exemptions, including exemptions in the form of a remittance or refund of tax paid; deductions; credits; deferrals; or reduced tax rates.

Sec. 2   RCW 82.32.585 and 2011 c 23 s 6 are each amended to read as follows:
     (1)(a) Unless the department extends the due date as provided in RCW 82.32.590, every person claiming a tax preference that requires a survey under this section must file a complete annual survey with the department by the due date as provided in (b) of this subsection.
     (b)(i) Except as provided in (((a))) (b)(ii) of this subsection, the survey is due by April 30th of the year following any calendar year in which a person becomes eligible to claim the tax preference that requires a survey under this section. If a person remains eligible to claim a tax preference in subsequent calendar years, the person must file additional surveys by April 30th of each year following each calendar year that the person remains eligible to claim the tax preference.
     (ii) If the tax preference is a deferral of tax, the first survey must be filed by April 30th of the calendar year following the calendar year in which the investment project is certified by the department as operationally complete, and a survey must be filed by April 30th of each of the seven succeeding calendar years.
     (((b) The department may extend the due date for timely filing of annual surveys under this section as provided in RCW 82.32.590.))
     (2)(((a))) The survey must include information as required in this subsection for the calendar year preceding the calendar year in which the survey is due.
     (a)(i) The amount of the tax preference claimed ((for the calendar year covered by)) must be reported on the survey.
     (ii) For a person that claimed an exemption provided in RCW 82.08.025651 or 82.12.025651, the survey must include the amount of tax exempted under those sections in the prior calendar year for each general area or category of research and development for which exempt machinery and equipment and labor and services were acquired in the prior calendar year.
     (b) The survey must also include the following information for employment positions in Washington, not to include names of employees((, for the year that the tax preference was claimed)):
     (i) The number of total employment positions;
     (ii) Full-time, part-time, and temporary employment positions as a percent of total employment;
     (iii) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and
     (iv) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.
     (c) For persons claiming the tax preference provided under chapter 82.60 or 82.63 RCW, the survey must also include the number of new products or research projects by general classification, and the number of trademarks, patents, and copyrights associated with activities at the investment project.
     (d) For persons claiming the credit provided under RCW 82.04.4452, the survey must also include the qualified research and development expenditures ((during the calendar year for which the credit was claimed)), the taxable amount ((during the calendar year for which the credit was claimed)), the number of new products or research projects by general classification, the number of trademarks, patents, and copyrights associated with the research and development activities for which the credit was claimed, and whether the tax preference has been assigned, and who assigned the credit. The definitions in RCW 82.04.4452 apply to this subsection (2)(d).
     (e) For persons claiming the tax exemption in RCW 82.08.025651 or 82.12.025651, the survey must also include the general areas or categories of research and development for which machinery and equipment and labor and services were acquired, exempt from tax under RCW 82.08.025651 or 82.12.025651((, in the prior calendar year)).
     (f) If the person filing a survey under this section did not file a survey under this section with the department in the previous calendar year, the survey filed under this section must also include the employment, wage, and benefit information required under (b)(i) through (iv) of this subsection for the calendar year immediately preceding the calendar year for which a tax preference was claimed.
     (3) As part of the annual survey, the department may request additional information necessary to measure the results of, or determine eligibility for, the tax preference.
     (4)(a) All information collected under this section, except the information required in subsection (2)(a) of this section, is deemed taxpayer information under RCW 82.32.330. Information required in subsection (2)(a) of this section is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request, except as provided in subsection (5) of this section.
     (b) If the amount of the tax preference claimed as reported on the survey is different than the amount actually claimed or otherwise allowed by the department based on the taxpayer's excise tax returns or other information known to the department, the amount actually claimed or allowed may be disclosed.
     (5) Persons for whom the actual amount of the tax reduced or saved is less than ten thousand dollars during the period covered by the survey ((may request the department to treat the amount of the tax reduction or savings as confidential under RCW 82.32.330)) are not required to file an annual survey for the period.
     (6)(a) Except as otherwise provided by law, if a person claims a tax preference that requires an annual survey under this section but fails to submit a complete annual survey by the due date of the survey or any extension under RCW 82.32.590, the department must declare the amount of the tax preference claimed for the previous calendar year to be immediately due. If the tax preference is a deferral of tax, twelve and one-half percent of the deferred tax is immediately due. If the economic benefits of the deferral are passed to a lessee, the lessee is responsible for payment to the extent the lessee has received the economic benefit.
     (b) The department must assess interest, but not penalties, on the amounts due under this subsection. The interest must be assessed at the rate provided for delinquent taxes under this chapter, retroactively to the date the tax preference was claimed, and accrues until the taxes for which the tax preference was claimed are repaid. Amounts due under this subsection are not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.
     (7) The department must use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers may be included in any category. The department must report ((these)) summary descriptive statistics to the legislature each year by ((October)) December 1st.
     (8) For the purposes of this section:
     (a) "Person" has the meaning provided in RCW 82.04.030 and also includes the state and its departments and institutions.
     (b) "Tax preference" has the meaning provided in RCW 43.136.021 and includes only the tax preferences requiring a survey under this section.

NEW SECTION.  Sec. 3   RCW 82.32.534 (Annual report requirement for tax preferences) and 2010 c 114 s 103 are each repealed.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.32 RCW to read as follows:
     For the purposes of this title and Title 84 RCW, "annual report" means the annual survey required under RCW 82.32.585."