"NEW SECTION.  Sec. 1   A new section is added to chapter 82.32 RCW to read as follows:
     (1) Except as otherwise provided in this section, every bill enacting a new tax preference expires on the first day of the calendar year that is subsequent to the calendar year that is five years from the effective date of the bill. With respect to any property tax exemption, the exemption does not apply to taxes levied for collection beginning in the calendar year that is subsequent to the calendar year that is five years from the effective date of the bill.
     (2) Subsection (1) of this section does not apply if legislation creating a new tax preference includes an expiration date for the new tax preference.
     (3) Subsection (1) of this section does not apply to any existing tax preference that is amended to clarify an ambiguity or correct a technical inconsistency.
     (4) For the purposes of this section, the following definitions apply:
     (a) "New tax preference" means a tax preference that initially took effect after August 1, 2013, or a tax preference in effect as of August 1, 2013, that is expanded or extended after August 1, 2013.
     (b) "Tax preference" has the same meaning as in RCW 43.136.021 with respect to any state tax under this title and Title 84 RCW.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) As provided in this section, every bill enacting a new tax preference must include a tax preference performance statement.
     (2) A tax preference performance statement must state the legislative purpose for the new tax preference. The tax preference performance statement must indicate one or more of the following general categories, by reference to the applicable category specified in this subsection, as the legislative purpose of the new tax preference:
     (a) Tax preferences intended to induce certain designated behavior by taxpayers;
     (b) Tax preferences intended to improve industry competitiveness;
     (c) Tax preferences intended to create or retain jobs;
     (d) Tax preferences intended to reduce structural inefficiencies in the tax structure; or
     (e) Tax preferences intended to provide tax relief for certain businesses or individuals.
     (3) In addition to identifying the general legislative purpose of the tax preference under subsection (2) of this section, the tax preference performance statement must provide additional detailed information regarding the legislative purpose of the new tax preference.
     (4) A new tax preference performance statement must specify clear, relevant, and ascertainable metrics and data requirements that allow the joint legislative audit and review committee to measure the effectiveness of the new tax preference in achieving the purpose designated under subsection (2) of this section.
     (5) If the tax preference performance statement for a new tax preference indicates a legislative purpose described in subsection (2)(b) or (c) of this section, any taxpayer claiming the new tax preference must file an annual survey in accordance with RCW 82.32.585.
     (6) Taxpayers claiming a new tax preference impacting any tax under this title must report the amount of the tax preference claimed by the taxpayer to the department as part of the taxpayer's regular tax reporting responsibilities under this chapter. For new tax preferences allowing certain types of gross income of the business to be excluded from business and occupation taxation, the tax return must explicitly report the amount of the exclusion, regardless of whether it is structured as an exemption or deduction. For a new sales and use tax exemption, the total taxable sales subject to the exemption claimed by the taxpayer must be reported on an addendum to the taxpayer's tax return.
     (7) The amount claimed by a taxpayer for any new tax preference, as well as the taxpayer's gross income and taxable income, is subject to public disclosure and is not considered confidential tax information under RCW 82.32.330. The department may waive the public disclosure requirement under this subsection for good cause. Good cause may be demonstrated by a reasonable showing of economic harm to a taxpayer if the information specified under this subsection is disclosed.
     (8) If a new tax preference does not include the information required under subsections (2) through (4) of this section, the joint legislative audit and review committee is not required to perform a tax preference review under chapter 43.136 RCW, and it is legislatively presumed that it is the intent of the legislature to allow the new tax preference to expire upon its scheduled expiration date.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.136 RCW to read as follows:
     By January 1, 2015, and in compliance with RCW 43.01.036, the joint legislative audit and review committee must provide a report to the appropriate fiscal committees of the legislature that makes recommendations on the appropriate data and metrics that should be included in a tax preference performance statement to evaluate a new tax preference. The committee must consult with the department of revenue and legislative fiscal staff in the preparation of the report. The committee's recommendation must identify the appropriate data and metrics for each of the general categories provided in section 2(2) of this act.

Sec. 4   RCW 82.32.585 and 2011 c 23 s 6 are each amended to read as follows:
     (1)(a) Every person claiming a tax preference that requires a survey under this section must file a complete annual survey with the department.
     (i) Except as provided in (a)(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.
     (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 the amount of the tax preference claimed for the calendar year covered by the survey. 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 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 and include additional information necessary for the joint legislative audit and review committee to evaluate a new tax preference, as defined in section 1 of this section.
     (4) 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. 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. For any new tax preference, as defined in section 1 of this act, all information collected under this section may be disclosed to the public upon request and is not subject to the confidentiality provisions of RCW 82.32.330.
     (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)) all information collected under this section as confidential under RCW 82.32.330.
     (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 statistics to the legislature each year by October 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. 5   A new section is added to chapter 82.04 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 6   A new section is added to chapter 82.08 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 7   A new section is added to chapter 82.12 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 8   A new section is added to chapter 82.14B RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 9   A new section is added to chapter 82.18 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 10   A new section is added to chapter 82.19 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 11   A new section is added to chapter 82.21 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 12   A new section is added to chapter 82.23A RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 13   A new section is added to chapter 82.23B RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 14   A new section is added to chapter 82.24 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 15   A new section is added to chapter 82.26 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 16   A new section is added to chapter 82.27 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 17   A new section is added to chapter 82.29A RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 18   A new section is added to chapter 82.36 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 19   A new section is added to chapter 82.38 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 20   A new section is added to chapter 82.42 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 21   A new section is added to chapter 82.45 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 22   A new section is added to chapter 82.48 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 23   A new section is added to chapter 82.49 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter.

NEW SECTION.  Sec. 24   A new section is added to chapter 82.64 RCW to read as follows:
     See section 1 of this act for the expiration date of new tax preferences for the tax imposed under this chapter."