2SHB 2580 -
By Representative Buys
SCOPE AND OBJECT 02/13/2014
On page 4, after line 4, insert the following:
"Sec. 3 RCW 82.04.240 and 2004 c 24 s 4 are each amended to read
as follows:
(1) Upon every person engaging within this state in business as a
manufacturer, except persons taxable as manufacturers under other
provisions of this chapter; as to such persons the amount of the tax
with respect to such business ((shall be)) is equal to the value of the
products, including byproducts, manufactured, multiplied by the rate of
((0.484)) 0.2904 percent.
(2) The measure of the tax is the value of the products, including
byproducts, so manufactured regardless of the place of sale or the fact
that deliveries may be made to points outside the state.
Sec. 4 RCW 82.04.240 and 2010 c 114 s 104 are each amended to
read as follows:
(1) Upon every person engaging within this state in business as a
manufacturer, except persons taxable as manufacturers under other
provisions of this chapter; as to such persons the amount of the tax
with respect to such business is equal to the value of the products,
including byproducts, manufactured, multiplied by the rate of ((0.484))
0.2904 percent.
(2)(a) Upon every person engaging within this state in the business
of manufacturing semiconductor materials, as to such persons the amount
of tax with respect to such business is, in the case of manufacturers,
equal to the value of the product manufactured, or, in the case of
processors for hire, equal to the gross income of the business,
multiplied by the rate of 0.275 percent. For the purposes of this
subsection "semiconductor materials" means silicon crystals, silicon
ingots, raw polished semiconductor wafers, compound semiconductors,
integrated circuits, and microchips.
(b) A person reporting under the tax rate provided in this
subsection (2) must file a complete annual report with the department
under RCW 82.32.534.
(c) This subsection (2) expires twelve years after the effective
date of this act.
(3) The measure of the tax is the value of the products, including
byproducts, so manufactured regardless of the place of sale or the fact
that deliveries may be made to points outside the state.
Sec. 5 RCW 82.32.790 and 2010 c 114 s 201 and 2010 c 106 s 401
are each reenacted and amended to read as follows:
(1)(a) Section 4, chapter ---, Laws of 2014 (section 4 of this
act), section 206, chapter 106, Laws of 2010, sections 104, 110, 117,
123, 125, 129, 131, and 150, chapter 114, Laws of 2010, section 3,
chapter 461, Laws of 2009, section 7, chapter 300, Laws of 2006, and
section 4, chapter 149, Laws of 2003 are contingent upon the siting and
commercial operation of a significant semiconductor microchip
fabrication facility in the state of Washington.
(b) For the purposes of this section:
(i) "Commercial operation" means the same as "commencement of
commercial production" as used in RCW 82.08.965.
(ii) "Semiconductor microchip fabrication" means "manufacturing
semiconductor microchips" as defined in RCW 82.04.426.
(iii) "Significant" means the combined investment of new buildings
and new machinery and equipment in the buildings, at the commencement
of commercial production, will be at least one billion dollars.
(2) Chapter 149, Laws of 2003 takes effect the first day of the
month in which a contract for the construction of a significant
semiconductor fabrication facility is signed, as determined by the
director of the department of revenue.
(3)(a) The department of revenue must provide notice of the
effective date of section 4, chapter ---, Laws of 2014 (section 4 of
this act), sections 104, 110, 117, 123, 125, 129, 131, and 150, chapter
114, Laws of 2010, section 3, chapter 461, Laws of 2009, section 7,
chapter 300, Laws of 2006, and section 4, chapter 149, Laws of 2003 to
affected taxpayers, the legislature, and others as deemed appropriate
by the department.
(b) If, after making a determination that a contract has been
signed and chapter 149, Laws of 2003 is effective, the department
discovers that commencement of commercial production did not take place
within three years of the date the contract was signed, the department
must make a determination that chapter 149, Laws of 2003 is no longer
effective, and all taxes that would have been otherwise due are deemed
deferred taxes and are immediately assessed and payable from any person
reporting tax under RCW 82.04.240(2) or claiming an exemption or credit
under section 2 or 5 through 10, chapter 149, Laws of 2003. The
department is not authorized to make a second determination regarding
the effective date of chapter 149, Laws of 2003.
NEW SECTION. Sec. 6 Section 3 of this act expires on the date
that section 4 of this act takes effect."
Correct the title.
EFFECT: Decreases the business and occupation tax rate for businesses engaged in manufacturing in the state from 0.484 percent to 0.2904 percent.