BILL REQ. #: S-3490.1
| State of Washington | 63rd Legislature | 2014 Regular Session |
Read first time 01/21/14. Referred to Committee on Energy, Environment & Telecommunications.
AN ACT Relating to providing telecommunications investment incentives; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) This section is the tax preference
performance statement for the tax preference contained in section 2 of
this act. This performance statement is only intended to be used for
subsequent evaluation of the tax preference. It is not intended to
create a private right of action by any party or be used to determine
eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended
to create or retain jobs, as indicated in RCW 82.32.808(2)(c).
(3) It is the legislature's specific public policy objective to
increase the number of jobs in the telecommunications industry in
Washington. It is the legislature's intent to exempt from the tax
levied by RCW 82.08.020 telecommunications machinery and equipment, or
tangible personal property that becomes an ingredient or component of
telecommunications machinery and equipment, thereby increasing the
ability of these firms to invest in and expand their Washington
operations, thereby increasing the number of jobs in the
telecommunications industry in Washington.
(4) If a review finds that the number of jobs in the
telecommunications industry in Washington has increased by ten percent
compared to the number of those jobs at the time of enactment, then the
legislature intends to extend the expiration date of the tax
preference.
(5) In order to obtain the data necessary to perform the review in
subsection (4) of this section, the joint legislative audit and review
committee may refer to:
(a) The annual survey that a taxpayer reporting under the tax rate
provided in section 2 of this act must file with the department of
revenue per RCW 82.32.585; and
(b) Employment data available from the employment security
department.
NEW SECTION. Sec. 2 A new section is added to chapter 82.08 RCW
to read as follows:
(1) Subject to the provisions of this section, the tax levied by
RCW 82.08.020 does not apply to sales of telecommunications machinery
and equipment, or to sales of tangible personal property that becomes
an ingredient or component of telecommunications machinery and
equipment.
(2) For the purposes of this section, "telecommunications machinery
and equipment" means machinery, equipment, and network software that
is: Capable of directly sending, receiving, or storing voice or data
communications; or used to enable, facilitate, maintain, or monitor a
telecommunications network. "Telecommunications machinery and
equipment" includes, but is not limited to: Antennas, amplifiers,
wires, cable, fiber optic cable, rectifiers, duplexers, triplexers,
multiplexers, receivers, repeaters, transmitters, power equipment,
modems, routers, storage devices, closures, conduits, controllers,
filters, input devices, insulators, microwave equipment, output
devices, pedestals, power converters, radio channels, terminals, timing
units, transformers, bridges, network computers, cross connects, plug-in circuitry, oscillators, network software, servers, power transport
equipment, test equipment, connectors, attenuators, circuit switches,
analog electronic switches, digital electronic switches, and switches
for operator assistance.
NEW SECTION. Sec. 3 A new section is added to chapter 82.12 RCW
to read as follows:
(1) The provisions of this chapter do not apply to the use of
telecommunications machinery and equipment, or to the use of tangible
personal property that becomes an ingredient or component of
telecommunications machinery and equipment.
(2) The definitions in section 2 of this act apply to this section.
NEW SECTION. Sec. 4 This act takes effect August 1, 2014.