H-1323.1
HOUSE BILL 1916
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State of Washington | 65th Legislature | 2017 Regular Session |
By Representatives Schmick, Blake, Nealey, Jenkin, Dye, Buys, and Haler
Read first time 02/02/17. Referred to Committee on Agriculture & Natural Resources.
AN ACT Relating to creating a business and occupation tax exemption for certain sales of commercial fertilizer, agricultural crop protection products, and seed; adding a new section to chapter
82.04 RCW; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:
(1) This chapter does not apply to wholesale sales of commercial fertilizer, agricultural crop protection products, and seed, by an eligible distributor to an eligible retailer.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Affiliated persons" means persons who have any ownership interest, whether direct or indirect, in each other, or where any ownership interest, whether direct or indirect, is held in each of the persons by another person or by a group of other persons that are affiliated with respect to each other.
(b) "Agricultural crop protection products" has the same meaning as provided in RCW
82.21.040.
(c) "Commercial fertilizer" has the same meaning as provided in RCW
15.54.270.
(d) "Seed" means seed potatoes and all other "agricultural seed" as defined in RCW
15.49.011 and conditioned for use in planting.
(e) "Eligible distributor" means a wholesaler who purchases commercial fertilizer, agricultural crop protection products, and seed from the manufacturer and resells those products only to eligible retailers who are not affiliated persons and who have an ownership interest in an entity that has at least a fifty percent ownership interest in the wholesaler.
(f) "Eligible retailer" means a person engaged in the business of making retail sales of commercial fertilizer, agricultural crop protection products, and seed, that also holds at least a five percent ownership interest in an entity that holds at least a fifty percent ownership interest in an eligible distributor.
NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2017.
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