BILL REQ. #: S-4358.1
| State of Washington | 63rd Legislature | 2014 Regular Session |
READ FIRST TIME 02/07/14.
AN ACT Relating to providing a sales and use tax exemption for certain new building construction to be used by maintenance repair operators for commercial airplane repair and maintenance; amending RCW 82.08.980, 82.08.980, 82.12.980, and 82.12.980; creating a new section; providing a contingent effective date; and providing contingent expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 This section is the tax preference
performance statement for the tax preference contained in RCW 82.08.980
and 82.12.980. 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.
(1) The legislature categorizes this tax preference as one intended
to create jobs, as indicated in RCW 82.32.808(2)(c).
(2) It is the legislature's specific public policy objective to
create additional jobs in the competitive commercial airplane repair
sector. It is the legislature's intent to reduce the cost of building
a F.A.A. part 145 repair station at a location in which one currently
does not exist, in order to make Washington a competitive site for
locating a F.A.A. part 145 repair station.
(3) The joint legislative audit and review committee must review
these tax preferences during calendar year 2020. If the review finds
that at least two hundred fifty additional jobs compared to the
employment today, in the F.A.A. part 145 repair station sector, has
taken place in the first five years of the enactment of this act, then
the legislature intends that the expiration dates remain. If there are
not at least two hundred fifty additional jobs in the F.A.A. part 145
repair station sector, then the legislature intends for this act to
expire July 1, 2021.
(4) In order to obtain the data necessary to perform the review in
subsection (3) of this section, the joint legislative audit and review
committee may refer to the annual survey for tax preferences that
F.A.A. part 145 repair stations are required to file with the
department.
Sec. 2 RCW 82.08.980 and 2010 c 114 s 126 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to charges made
for labor and services rendered in respect to the constructing of new
buildings by: (a) A manufacturer engaged in the manufacturing of
superefficient airplanes ((or by)); (b) a port district, to be leased
to a manufacturer engaged in the manufacturing of superefficient
airplanes; (c) a maintenance repair operator engaged in the maintenance
of commercial airplanes or the fuselages or wings of commercial
airplanes; or (d) a port district, to be leased to a maintenance repair
operator engaged in the maintenance of commercial airplanes or the
fuselages or wings of commercial airplanes, to sales of tangible
personal property that will be incorporated as an ingredient or
component of such buildings during the course of the constructing, or
to labor and services rendered in respect to installing, during the
course of constructing, building fixtures not otherwise eligible for
the exemption under RCW 82.08.02565(2)(b). The exemption is available
only when the buyer provides the seller with an exemption certificate
in a form and manner prescribed by the department. The seller must
retain a copy of the certificate for the seller's files. For the
purposes of this subsection (1), "maintenance repair operator" means a
person classified by the federal aviation administration as a federal
aviation regulation part 145 certificated repair station and
"commercial airplane" has the same meaning as provided in RCW
82.32.550.
(2) No application is necessary for the tax exemption in this
section, however in order to qualify under this section before starting
construction the port district must have entered into an agreement with
the manufacturer to build such a facility. A person claiming the
exemption under this section is subject to all the requirements of
chapter 82.32 RCW. In addition, the person must file a complete annual
report with the department under RCW 82.32.534.
(3) The exemption in this section applies to buildings, or parts of
buildings, that are used exclusively in the manufacturing of
superefficient airplanes, including buildings used for the storage of
raw materials and finished product.
(4) If the employment metrics outlined in section 1 of this act are
not met by 2020, any maintenance repair operator taking advantage of
the exemption in this section must repay the exempted sales tax back to
the department in 2021.
(5) For the purposes of this section, "superefficient airplane" has
the meaning given in RCW 82.32.550.
(((5))) (6) This section expires July 1, 2024.
Sec. 3 RCW 82.08.980 and 2013 3rd sp.s. c 2 s 3 are each amended
to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to:
(a) Charges, for labor and services rendered in respect to the
constructing of new buildings, made to (i) a manufacturer engaged in
the manufacturing of commercial airplanes or the fuselages or wings of
commercial airplanes ((or)); (ii) a port district, political
subdivision, or municipal corporation, to be leased to a manufacturer
engaged in the manufacturing of commercial airplanes or the fuselages
or wings of commercial airplanes; (iii) a maintenance repair operator
engaged in the maintenance of commercial airplanes or the fuselages or
wings of commercial airplanes; or (iv) a port district, to be leased to
a maintenance repair operator engaged in the maintenance of commercial
airplanes or the fuselages or wings of commercial airplanes. For the
purposes of this subsection (1)(a), "maintenance repair operator" means
a person classified by the federal aviation administration as a federal
aviation regulation part 145 certificated repair station;
(b) Sales of tangible personal property that will be incorporated
as an ingredient or component of such buildings during the course of
the constructing; or
(c) Charges made for labor and services rendered in respect to
installing, during the course of constructing such buildings, building
fixtures not otherwise eligible for the exemption under RCW
82.08.02565(2)(b).
(2) The exemption is available only when the buyer provides the
seller with an exemption certificate in a form and manner prescribed by
the department. The seller must retain a copy of the certificate for
the seller's files.
(3) No application is necessary for the tax exemption in this
section. However, in order to qualify under this section before
starting construction, the port district, political subdivision, or
municipal corporation must have entered into an agreement with the
manufacturer to build such a facility. A person claiming the exemption
under this section is subject to all the requirements of chapter 82.32
RCW. In addition, the person must file a complete annual report with
the department under RCW 82.32.534.
(4) The exemption in this section applies to buildings or parts of
buildings, including buildings or parts of buildings used for the
storage of raw materials or finished product, that are used primarily
in the manufacturing of any one or more of the following products:
(a) Commercial airplanes;
(b) Fuselages of commercial airplanes; or
(c) Wings of commercial airplanes.
(5) For the purposes of this section, "commercial airplane" has the
meaning given in RCW 82.32.550.
(6) If the employment metrics outlined in section 1 of this act are
not met by 2020, any maintenance repair operator taking advantage of
the exemption in this section must repay the exempted sales tax back to
the department in 2021.
(7) This section expires July 1, 2040.
Sec. 4 RCW 82.12.980 and 2010 c 114 s 132 are each amended to
read as follows:
(1) The provisions of this chapter do not apply with respect to the
use of tangible personal property that will be incorporated as an
ingredient or component of new buildings: (a) By a manufacturer
engaged in the manufacturing of superefficient airplanes ((or)); (b)
owned by a port district and to be leased to a manufacturer engaged in
the manufacturing of superefficient airplanes; (c) by a maintenance
repair operator engaged in the maintenance of commercial airplanes or
the fuselages of commercial airplanes; or (d) a port district, to be
leased to a maintenance repair operator engaged in the maintenance of
commercial airplanes or the fuselages or wings of commercial airplanes,
during the course of constructing such buildings, or to labor and
services rendered in respect to installing, during the course of
constructing, building fixtures not otherwise eligible for the
exemption under RCW 82.08.02565(2)(b).
(2) The eligibility requirements, conditions, and definitions in
RCW 82.08.980 apply to this section, including the filing of a complete
annual report with the department under RCW 82.32.534.
(3) This section expires July 1, 2024.
Sec. 5 RCW 82.12.980 and 2013 3rd sp.s. c 2 s 4 are each amended
to read as follows:
(1) The provisions of this chapter do not apply with respect to the
use of:
(a) Tangible personal property that will be incorporated as an
ingredient or component in constructing new buildings for (i) a
manufacturer or maintenance repair operator engaged in the
manufacturing or maintaining of commercial airplanes or the fuselages
or wings of commercial airplanes or (ii) a port district, political
subdivision, or municipal corporation, to be leased to a manufacturer
or maintenance repair operator engaged in the manufacturing of
commercial airplanes or the fuselages or wings of commercial airplanes;
or
(b) Labor and services rendered in respect to installing, during
the course of constructing such buildings, building fixtures not
otherwise eligible for the exemption under RCW 82.08.02565(2)(b).
(2) The eligibility requirements, conditions, and definitions in
RCW 82.08.980 apply to this section, including the filing of a complete
annual report with the department under RCW 82.32.534.
(3) This section expires July 1, 2040.
NEW SECTION. Sec. 6 Sections 2 and 4 of this act expire July 1,
2024, subject to the contingency stated in section 2, chapter 2, Laws
of 2013 3rd sp. sess.
NEW SECTION. Sec. 7 Sections 3 and 5 of this act take effect
subject to the contingency stated in section 2, chapter 2, Laws of 2013
3rd sp. sess.
NEW SECTION. Sec. 8 Sections 3 and 5 of this act expire July 1,
2040, subject to the contingency stated in section 2, chapter 2, Laws
of 2013 3rd sp. sess.