S-1344.1
SENATE BILL 5925
State of Washington | 66th Legislature | 2019 Regular Session |
BySenators Fortunato, Schoesler, Rivers, Padden, and Wagoner
AN ACT Relating to renaming the department of revenue as the department of taxation; amending RCW
6.13.090,
6.13.090,
9.41.100,
9.41.110,
9.41.135,
9.46.070,
11.08.170,
11.08.180,
11.08.185,
11.08.200,
11.08.210,
11.08.220,
11.08.230,
11.08.240,
11.08.250,
11.08.260,
11.08.300,
11.44.015,
11.76.220,
11.76.240,
11.76.245,
14.08.122,
15.100.040,
15.100.050,
15.100.100,
18.11.085,
18.11.095,
18.16.050,
18.16.175,
18.27.030,
18.27.390,
18.300.020,
18.300.070,
19.02.020,
19.02.050,
19.02.115,
19.02.210,
19.94.015,
19.240.080,
19.305.010,
19.305.030,
19.305.040,
19.305.060,
19.365.010,
19.370.060,
22.28.040,
22.28.060,
23.90.040,
24.03.220,
24.06.260,
26.23.065,
28A.150.400,
28A.150.412,
28C.04.420,
30A.22.200,
34.05.010,
34.05.030,
34.05.110,
34.05.328,
34.05.422,
35.21.392,
35.42.090,
35.90.010,
35.100.050,
35.101.052,
35.101.090,
35.102.040,
35.102.1301,
35A.21.340,
36.21.011,
36.21.015,
36.21.100,
36.35.140,
36.38.020,
36.57A.210,
36.57A.224,
36.100.040,
36.100.090,
36.102.070,
36.120.050,
38.52.510,
39.08.010,
39.08.030,
39.12.100,
39.26.010,
39.88.070,
39.100.010,
39.100.040,
39.102.020,
39.102.040,
39.102.210,
39.102.220,
39.104.020,
39.104.100,
39.104.150,
40.07.070,
42.56.390,
43.05.140,
43.06.400,
43.06.455,
43.06.465,
43.06.466,
43.06.475,
43.06.490,
43.07.200,
43.07.390,
43.08.290,
43.09.475,
43.10.067,
43.17.010,
43.31C.020,
43.42A.010,
43.62.040,
43.136.035,
43.136.075,
43.136.080,
43.330.737,
43.365.040,
44.28.805,
44.73.015,
46.12.560,
46.12.650,
46.12.695,
46.37.427,
46.68.124,
46.68.250,
46.70.021,
46.70.101,
46.71.090,
46.85.060,
47.01.412,
47.46.060,
48.31.155,
49.48.086,
50.04.140,
50.04.145,
50A.04.010,
51.08.181,
51.08.195,
53.08.090,
54.16.425,
54.28.040,
54.28.050,
54.28.055,
54.28.125,
57.08.005,
59.18.312,
59.18.595,
59.30.010,
59.30.020,
60.28.011,
60.28.021,
60.28.051,
60.28.060,
63.29.135,
63.29.230,
63.29.350,
63.29.380,
66.08.150,
66.20.370,
66.24.010,
66.24.620,
67.28.200,
69.07.210,
69.43.035,
69.50.375,
69.50.535,
69.51A.230,
70.93.180,
70.94.161,
70.94.162,
70.94.483,
70.95.510,
70.95.515,
70.95C.220,
70.105D.070,
70.108.140,
70.155.120,
70.157.010,
70.158.020,
74.04.014,
74.08A.350,
74.20A.020,
76.09.040,
76.09.240,
76.13.120,
76.13.160,
79.100.170,
79.100.180,
81.100.030,
81.100.070,
81.104.190,
81.112.360,
82.01.050,
82.01.060,
82.01.070,
82.01.100,
82.02.010,
82.02.210,
82.03.130,
82.03.150,
82.03.160,
82.03.190,
82.04.020,
82.04.090,
82.04.44525,
82.04.447,
82.04.450,
82.08.0201,
82.08.0266,
82.08.02665,
82.08.0268,
82.08.0273,
82.08.060,
82.08.080,
82.08.090,
82.08.100,
82.08.120,
82.08.160,
82.08.811,
82.08.820,
82.08.890,
82.12.010,
82.12.024,
82.12.0256,
82.12.045,
82.12.070,
82.12.811,
82.14.048,
82.14.0485,
82.14.0494,
82.14.050,
82.14.070,
82.14.370,
82.14.390,
82.14.400,
82.14.415,
82.14.430,
82.14A.020,
82.16.0495,
82.16.0497,
82.16.055,
82.16.120,
82.16.165,
82.18.060,
82.18.080,
82.19.010,
82.19.030,
82.21.050,
82.23B.010,
82.24.030,
82.24.090,
82.24.110,
82.24.120,
82.24.180,
82.24.190,
82.24.210,
82.24.520,
82.24.560,
82.26.090,
82.27.060,
82.27.070,
82.29A.010,
82.29A.020,
82.29A.040,
82.29A.050,
82.29A.060,
82.29A.070,
82.29A.080,
82.29A.130,
82.29A.135,
82.29A.140,
82.32.030,
82.32.033,
82.32.045,
82.32.050,
82.32.070,
82.32.090,
82.32.110,
82.32.120,
82.32.140,
82.32.200,
82.32.215,
82.32.220,
82.32.230,
82.32.240,
82.32.260,
82.32.270,
82.32.300,
82.32.310,
82.32.320,
82.32.330,
82.32.340,
82.32.360,
82.32.394,
82.32.410,
82.32.532,
82.32.533,
82.32.580,
82.32.785,
82.32.790,
82.32.900,
82.32A.005,
82.32A.010,
82.32A.020,
82.32A.030,
82.32A.050,
82.33.040,
82.34.010,
82.45.035,
82.45.090,
82.45.100,
82.45.180,
82.48.020,
82.49.010,
82.49.040,
82.49.050,
82.49.080,
82.60.020,
82.60.080,
82.62.010,
82.62.060,
82.63.010,
82.66.010,
82.73.010,
82.74.010,
82.75.010,
82.80.010,
82.80.110,
82.80.120,
82.82.010,
83.100.160,
84.04.047,
84.08.010,
84.08.020,
84.08.030,
84.08.040,
84.08.050,
84.08.060,
84.08.070,
84.08.080,
84.08.120,
84.08.140,
84.08.190,
84.12.220,
84.12.230,
84.12.240,
84.12.250,
84.12.260,
84.12.270,
84.12.300,
84.12.310,
84.12.330,
84.12.340,
84.12.350,
84.12.360,
84.12.370,
84.12.390,
84.14.020,
84.16.010,
84.16.020,
84.16.030,
84.16.032,
84.16.034,
84.16.036,
84.16.040,
84.16.050,
84.16.090,
84.16.100,
84.16.110,
84.16.120,
84.16.130,
84.25.040,
84.26.040,
84.26.080,
84.33.051,
84.33.074,
84.33.075,
84.33.0775,
84.33.086,
84.33.091,
84.33.200,
84.34.030,
84.34.041,
84.34.065,
84.34.141,
84.34.145,
84.34.160,
84.36.037,
84.36.041,
84.36.049,
84.36.255,
84.36.260,
84.36.264,
84.36.310,
84.36.383,
84.36.385,
84.36.387,
84.36.389,
84.36.400,
84.36.590,
84.36.630,
84.36.635,
84.36.640,
84.36.660,
84.36.812,
84.36.813,
84.36.815,
84.36.820,
84.36.830,
84.36.835,
84.36.840,
84.36.850,
84.36.860,
84.36.865,
84.37.070,
84.38.020,
84.38.050,
84.38.100,
84.38.110,
84.38.180,
84.40.025,
84.40.038,
84.40.040,
84.40.065,
84.40.190,
84.40.320,
84.40.340,
84.40.405,
84.41.041,
84.41.060,
84.41.070,
84.41.080,
84.41.090,
84.41.110,
84.41.120,
84.41.130,
84.44.090,
84.48.010,
84.48.014,
84.48.032,
84.48.042,
84.48.046,
84.48.050,
84.48.075,
84.48.080,
84.48.130,
84.48.200,
84.52.043,
84.52.0502,
84.52.063,
84.52.065,
84.55.060,
84.55.100,
84.56.025,
84.56.290,
84.56.440,
84.64.050,
84.68.120,
84.68.130,
84.68.140,
84.69.050,
84.69.100,
84.72.010,
84.72.020,
84.72.030,
88.02.370,
88.02.420,
88.02.570,
88.26.020,
89.08.440,
90.76.010, and
90.76.020; reenacting and amending RCW
11.08.160,
19.80.005,
28B.145.040,
63.29.010,
82.26.010,
82.32.235,
82.33.020,
82.45.150,
83.100.020,
84.12.200,
84.34.310,
84.34.360, and
84.48.120; creating a new section; and providing effective dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. To promote truth in government, the department of revenue shall be renamed as the department of taxation. The department shall continue to use existing materials bearing the name "Department of Revenue" and order new materials with the name "Department of Taxation" when needed.
Sec. 2. RCW
6.13.090 and 2007 c 429 s 3 are each amended to read as follows:
A judgment against the owner of a homestead shall become a lien on the value of the homestead property in excess of the homestead exemption from the time the judgment creditor records the judgment with the recording officer of the county where the property is located. However, if a judgment of a district court of this state has been transferred to a superior court, the judgment becomes a lien from the time of recording with such recording officer a duly certified abstract of the record of such judgment as it appears in the office of the clerk in which the transfer was originally filed. A department of ((
revenue))
taxation tax warrant filed pursuant to RCW
82.32.210 shall become a lien on the value of the homestead property in excess of the homestead exemption from the time of filing in superior court.
Sec. 3. RCW
6.13.090 and 2007 c 429 s 3 are each amended to read as follows:
A judgment against the owner of a homestead shall become a lien on the value of the homestead property in excess of the homestead exemption from the time the judgment creditor records the judgment with the recording officer of the county where the property is located. However, if a judgment of a district court of this state has been transferred to a superior court, the judgment becomes a lien from the time of recording with such recording officer a duly certified abstract of the record of such judgment as it appears in the office of the clerk in which the transfer was originally filed. A department of ((
revenue))
taxation tax warrant filed pursuant to RCW
82.32.210 shall become a lien on the value of the homestead property in excess of the homestead exemption from the time of filing in superior court.
Sec. 4. RCW
9.41.100 and 1994 sp.s. c 7 s 415 are each amended to read as follows:
Every dealer shall be licensed as provided in RCW
9.41.110 and shall register with the department of ((
revenue))
taxation as provided in chapters
82.04 and
82.32 RCW.
Sec. 5. RCW
9.41.110 and 2019 c 3 s 10 (Initiative Measure No. 1639) are each amended to read as follows:
(1) No dealer may sell or otherwise transfer, or expose for sale or transfer, or have in his or her possession with intent to sell, or otherwise transfer, any pistol without being licensed as provided in this section.
(2) No dealer may sell or otherwise transfer, or expose for sale or transfer, or have in his or her possession with intent to sell, or otherwise transfer, any firearm other than a pistol without being licensed as provided in this section.
(3) No dealer may sell or otherwise transfer, or expose for sale or transfer, or have in his or her possession with intent to sell, or otherwise transfer, any ammunition without being licensed as provided in this section.
(4) The duly constituted licensing authorities of any city, town, or political subdivision of this state shall grant licenses in forms prescribed by the director of licensing effective for not more than one year from the date of issue permitting the licensee to sell firearms within this state subject to the following conditions, for breach of any of which the license shall be forfeited and the licensee subject to punishment as provided in RCW
9.41.010 through
9.41.810. A licensing authority shall forward a copy of each license granted to the department of licensing. The department of licensing shall notify the department of ((
revenue))
taxation of the name and address of each dealer licensed under this section.
(5)(a) A licensing authority shall, within thirty days after the filing of an application of any person for a dealer's license, determine whether to grant the license. However, if the applicant does not have a valid permanent Washington driver's license or Washington state identification card, or has not been a resident of the state for the previous consecutive ninety days, the licensing authority shall have up to sixty days to determine whether to issue a license. No person shall qualify for a license under this section without first receiving a federal firearms license and undergoing fingerprinting and a background check. In addition, no person ineligible to possess a firearm under RCW
9.41.040 or ineligible for a concealed pistol license under RCW
9.41.070 shall qualify for a dealer's license.
(b) A dealer shall require every employee who may sell a firearm in the course of his or her employment to undergo fingerprinting and a background check. An employee must be eligible to possess a firearm, and must not have been convicted of a crime that would make the person ineligible for a concealed pistol license, before being permitted to sell a firearm. Every employee shall comply with requirements concerning purchase applications and restrictions on delivery of pistols or semiautomatic assault rifles that are applicable to dealers.
(6)(a) Except as otherwise provided in (b) of this subsection, the business shall be carried on only in the building designated in the license. For the purpose of this section, advertising firearms for sale shall not be considered the carrying on of business.
(b) A dealer may conduct business temporarily at a location other than the building designated in the license, if the temporary location is within Washington state and is the location of a gun show sponsored by a national, state, or local organization, or an affiliate of any such organization, devoted to the collection, competitive use, or other sporting use of firearms in the community. Nothing in this subsection (6)(b) authorizes a dealer to conduct business in or from a motorized or towed vehicle.
In conducting business temporarily at a location other than the building designated in the license, the dealer shall comply with all other requirements imposed on dealers by RCW
9.41.090,
9.41.100, and this section. The license of a dealer who fails to comply with the requirements of RCW
9.41.080 and
9.41.090 and subsection (8) of this section while conducting business at a temporary location shall be revoked, and the dealer shall be permanently ineligible for a dealer's license.
(7) The license or a copy thereof, certified by the issuing authority, shall be displayed on the premises in the area where firearms are sold, or at the temporary location, where it can easily be read.
(8)(a) No pistol or semiautomatic assault rifle may be sold: (i) In violation of any provisions of RCW
9.41.010 through
9.41.810; nor (ii) may a pistol or semiautomatic assault rifle be sold under any circumstances unless the purchaser is personally known to the dealer or shall present clear evidence of his or her identity.
(b) A dealer who sells or delivers any firearm in violation of RCW
9.41.080 is guilty of a class C felony. In addition to any other penalty provided for by law, the dealer is subject to mandatory permanent revocation of his or her dealer's license and permanent ineligibility for a dealer's license.
(c) The license fee for pistols shall be one hundred twenty-five dollars. The license fee for firearms other than pistols shall be one hundred twenty-five dollars. The license fee for ammunition shall be one hundred twenty-five dollars. Any dealer who obtains any license under subsection (1), (2), or (3) of this section may also obtain the remaining licenses without payment of any fee. The fees received under this section shall be deposited in the state general fund.
(9)(a) A true record in triplicate shall be made of every pistol or semiautomatic assault rifle sold, in a book kept for the purpose, the form of which may be prescribed by the director of licensing and shall be personally signed by the purchaser and by the person effecting the sale, each in the presence of the other, and shall contain the date of sale, the caliber, make, model and manufacturer's number of the weapon, the name, address, occupation, and place of birth of the purchaser, and a statement signed by the purchaser that he or she is not ineligible under state or federal law to possess a firearm.
(b) One copy shall within six hours be sent by certified mail to the chief of police of the municipality or the sheriff of the county of which the purchaser is a resident, or the state pursuant to RCW
9.41.090; the duplicate the dealer shall within seven days send to the director of licensing; the triplicate the dealer shall retain for six years.
(10) Subsections (2) through (9) of this section shall not apply to sales at wholesale.
(11) The dealer's licenses authorized to be issued by this section are general licenses covering all sales by the licensee within the effective period of the licenses. The department shall provide a single application form for dealer's licenses and a single license form which shall indicate the type or types of licenses granted.
(12) Except as provided in RCW
9.41.090, every city, town, and political subdivision of this state is prohibited from requiring the purchaser to secure a permit to purchase or from requiring the dealer to secure an individual permit for each sale.
Sec. 6. RCW
9.41.135 and 1995 c 318 s 6 are each amended to read as follows:
(1) At least once every twelve months, the department of licensing shall obtain a list of dealers licensed under 18 U.S.C. Sec. 923(a) with business premises in the state of Washington from the United States bureau of alcohol, tobacco, and firearms. The department of licensing shall verify that all dealers on the list provided by the bureau of alcohol, tobacco, and firearms are licensed and registered as required by RCW
9.41.100.
(2) At least once every twelve months, the department of licensing shall obtain from the department of ((
revenue))
taxation and the department of ((
revenue))
taxation shall transmit to the department of licensing a list of dealers registered with the department of ((
revenue))
taxation, and a list of dealers whose names and addresses were forwarded to the department of ((
revenue))
taxation by the department of licensing under RCW
9.41.110, who failed to register with the department of ((
revenue))
taxation as required by RCW
9.41.100.
(3) At least once every twelve months, the department of licensing shall notify the bureau of alcohol, tobacco, and firearms of all dealers licensed under 18 U.S.C. Sec. 923(a) with business premises in the state of Washington who have not complied with the licensing or registration requirements of RCW
9.41.100. In notifying the bureau of alcohol, tobacco, and firearms, the department of licensing shall not specify whether a particular dealer has failed to comply with licensing requirements or has failed to comply with registration requirements.
Sec. 7. RCW
9.46.070 and 2012 c 116 s 1 are each amended to read as follows:
The commission shall have the following powers and duties:
(1) To authorize and issue licenses for a period not to exceed one year to bona fide charitable or nonprofit organizations approved by the commission meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said organizations to conduct bingo games, raffles, amusement games, and social card games, to utilize punchboards and pull-tabs in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter or any rules and regulations adopted pursuant thereto: PROVIDED, That the commission shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: PROVIDED FURTHER, That the commission or director shall not issue, deny, suspend, or revoke any license because of considerations of race, sex, creed, color, or national origin: AND PROVIDED FURTHER, That the commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;
(2) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization operating a business primarily engaged in the selling of items of food or drink for consumption on the premises, approved by the commission meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said person, association, or organization to utilize punchboards and pull-tabs and to conduct social card games as a commercial stimulant in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter and any rules and regulations adopted pursuant thereto: PROVIDED, That the commission shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: PROVIDED FURTHER, That the commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;
(3) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization approved by the commission meeting the requirements of this chapter and meeting the requirements of any rules and regulations adopted by the commission pursuant to this chapter as now or hereafter amended, permitting said person, association, or organization to conduct or operate amusement games in such manner and at such locations as the commission may determine. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;
(4) To authorize, require, and issue, for a period not to exceed one year, such licenses as the commission may by rule provide, to any person, association, or organization to engage in the selling, distributing, or otherwise supplying or in the manufacturing of devices for use within this state for those activities authorized by this chapter. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;
(5) To establish a schedule of annual license fees for carrying on specific gambling activities upon the premises, and for such other activities as may be licensed by the commission, which fees shall provide to the commission not less than an amount of money adequate to cover all costs incurred by the commission relative to licensing under this chapter and the enforcement by the commission of the provisions of this chapter and rules and regulations adopted pursuant thereto: PROVIDED, That all licensing fees shall be submitted with an application therefor and such portion of said fee as the commission may determine, based upon its cost of processing and investigation, shall be retained by the commission upon the withdrawal or denial of any such license application as its reasonable expense for processing the application and investigation into the granting thereof: PROVIDED FURTHER, That if in a particular case the basic license fee established by the commission for a particular class of license is less than the commission's actual expenses to investigate that particular application, the commission may at any time charge to that applicant such additional fees as are necessary to pay the commission for those costs. The commission may decline to proceed with its investigation and no license shall be issued until the commission has been fully paid therefor by the applicant: AND PROVIDED FURTHER, That the commission may establish fees for the furnishing by it to licensees of identification stamps to be affixed to such devices and equipment as required by the commission and for such other special services or programs required or offered by the commission, the amount of each of these fees to be not less than is adequate to offset the cost to the commission of the stamps and of administering their dispersal to licensees or the cost of administering such other special services, requirements or programs;
(6) To prescribe the manner and method of payment of taxes, fees and penalties to be paid to or collected by the commission;
(7) To require that applications for all licenses contain such information as may be required by the commission: PROVIDED, That all persons (a) having a managerial or ownership interest in any gambling activity, or the building in which any gambling activity occurs, or the equipment to be used for any gambling activity, or (b) participating as an employee in the operation of any gambling activity, shall be listed on the application for the license and the applicant shall certify on the application, under oath, that the persons named on the application are all of the persons known to have an interest in any gambling activity, building, or equipment by the person making such application: PROVIDED FURTHER, That the commission shall require fingerprinting and national criminal history background checks on any persons seeking licenses, certifications, or permits under this chapter or of any person holding an interest in any gambling activity, building, or equipment to be used therefor, or of any person participating as an employee in the operation of any gambling activity. All national criminal history background checks shall be conducted using fingerprints submitted to the United States department of justice-federal bureau of investigation. The commission must establish rules to delineate which persons named on the application are subject to national criminal history background checks. In identifying these persons, the commission must take into consideration the nature, character, size, and scope of the gambling activities requested by the persons making such applications;
(8) To require that any license holder maintain records as directed by the commission and submit such reports as the commission may deem necessary;
(9) To require that all income from bingo games, raffles, and amusement games be recorded and reported as established by rule or regulation of the commission to the extent deemed necessary by considering the scope and character of the gambling activity in such a manner that will disclose gross income from any gambling activity, amounts received from each player, the nature and value of prizes, and the fact of distributions of such prizes to the winners thereof;
(10) To regulate and establish maximum limitations on income derived from bingo. In establishing limitations pursuant to this subsection the commission shall take into account (a) the nature, character, and scope of the activities of the licensee; (b) the source of all other income of the licensee; and (c) the percentage or extent to which income derived from bingo is used for charitable, as distinguished from nonprofit, purposes. However, the commission's powers and duties granted by this subsection are discretionary and not mandatory;
(11) To regulate and establish the type and scope of and manner of conducting the gambling activities authorized by this chapter, including but not limited to, the extent of wager, money, or other thing of value which may be wagered or contributed or won by a player in any such activities;
(12) To regulate the collection of and the accounting for the fee which may be imposed by an organization, corporation, or person licensed to conduct a social card game on a person desiring to become a player in a social card game in accordance with RCW
9.46.0282;
(13) To cooperate with and secure the cooperation of county, city, and other local or state agencies in investigating any matter within the scope of its duties and responsibilities;
(14) In accordance with RCW
9.46.080, to adopt such rules and regulations as are deemed necessary to carry out the purposes and provisions of this chapter. All rules and regulations shall be adopted pursuant to the administrative procedure act, chapter
34.05 RCW;
(15) To set forth for the perusal of counties, city-counties, cities and towns, model ordinances by which any legislative authority thereof may enter into the taxing of any gambling activity authorized by this chapter;
(16)(a) To establish and regulate a maximum limit on salaries or wages which may be paid to persons employed in connection with activities conducted by bona fide charitable or nonprofit organizations and authorized by this chapter, where payment of such persons is allowed, and to regulate and establish maximum limits for other expenses in connection with such authorized activities, including but not limited to rent or lease payments. However, the commissioner's powers and duties granted by this subsection are discretionary and not mandatory.
(b) In establishing these maximum limits the commission shall take into account the amount of income received, or expected to be received, from the class of activities to which the limits will apply and the amount of money the games could generate for authorized charitable or nonprofit purposes absent such expenses. The commission may also take into account, in its discretion, other factors, including but not limited to, the local prevailing wage scale and whether charitable purposes are benefited by the activities;
(17) To authorize, require, and issue for a period not to exceed one year such licenses or permits, for which the commission may by rule provide, to any person to work for any operator of any gambling activity authorized by this chapter in connection with that activity, or any manufacturer, supplier, or distributor of devices for those activities in connection with such business. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission. The commission shall not require that persons working solely as volunteers in an authorized activity conducted by a bona fide charitable or bona fide nonprofit organization, who receive no compensation of any kind for any purpose from that organization, and who have no managerial or supervisory responsibility in connection with that activity, be licensed to do such work. The commission may require that licensees employing such unlicensed volunteers submit to the commission periodically a list of the names, addresses, and dates of birth of the volunteers. If any volunteer is not approved by the commission, the commission may require that the licensee not allow that person to work in connection with the licensed activity;
(18) To publish and make available at the office of the commission or elsewhere to anyone requesting it a list of the commission licensees, including the name, address, type of license, and license number of each licensee;
(19) To establish guidelines for determining what constitutes active membership in bona fide nonprofit or charitable organizations for the purposes of this chapter;
(20) To renew the license of every person who applies for renewal within six months after being honorably discharged, removed, or released from active military service in the armed forces of the United States upon payment of the renewal fee applicable to the license period, if there is no cause for denial, suspension, or revocation of the license;
(21) To issue licenses under subsections (1) through (4) of this section that are valid for a period of up to eighteen months, if it chooses to do so, in order to transition to the use of the business licensing services program through the department of ((revenue))taxation; and
(22) To perform all other matters and things necessary to carry out the purposes and provisions of this chapter.
Sec. 8. RCW
11.08.160 and 1988 c 128 s 1 and 1988 c 64 s 23 are each reenacted and amended to read as follows:
The department of ((
revenue))
taxation of this state shall have supervision of and jurisdiction over escheat property and may institute and prosecute any proceedings, including any proceeding under chapter
11.62 RCW, deemed necessary or proper in the handling of such property, and it shall be the duty of the department of ((
revenue))
taxation to protect and conserve escheat property for the benefit of the permanent common school fund of the state until such property or the proceeds thereof have been forwarded to the state treasurer or the department of natural resources as hereinafter provided.
Sec. 9. RCW
11.08.170 and 1994 c 221 s 3 are each amended to read as follows:
Escheat property may be probated under the provisions of the probate laws of this state. Whenever such probate proceedings are instituted, whether by special administration or otherwise, the petitioner shall promptly notify the department of ((
revenue))
taxation in writing thereof on forms furnished by the department of ((
revenue))
taxation to the county clerks. Thereafter, the department of ((
revenue))
taxation shall be served with written notice at least twenty days prior to any hearing on proceedings involving the valuation or sale of property, on any petition for the allowance of fees, and on all interim reports, final accounts or petitions for the determination of heirship. Like notice shall be given of the presentation of any claims to the court for allowance. Failure to furnish such notice shall be deemed jurisdictional and any order of the court entered without such notice shall be void. The department of ((
revenue))
taxation may waive the provisions of this section in its discretion. The department shall be deemed to have waived its right to administer in such probate proceedings under RCW
11.28.120(5) unless application for appointment of the director or the director's designee is made within forty days immediately following receipt of notice of institution of proceedings.
Sec. 10. RCW
11.08.180 and 2010 c 8 s 2007 are each amended to read as follows:
The department of ((
revenue))
taxation may demand copies of any papers, documents, or pleadings involving the escheat property or the probate thereof deemed by it to be necessary for the enforcement of RCW
11.08.140 through
11.08.280 and it shall be the duty of the administrator or his or her attorney to furnish such copies to the department.
Sec. 11. RCW
11.08.185 and 1973 c 25 s 1 are each amended to read as follows:
All records of the department of ((revenue))taxation relating to escheated property or property about to escheat shall be a public record and shall be made available by the department of ((revenue))taxation for public inspection. Without limitation, the records to be made public shall include all available information regarding possible heirs, descriptions and amounts of property escheated or about to escheat, and any information which might serve to identify the proper heirs.
Sec. 12. RCW
11.08.200 and 2010 c 8 s 2008 are each amended to read as follows:
If any person shall take possession of escheat property without proper authorization to do so, and shall have the use thereof for a period exceeding sixty days, he or she shall be liable to the state for the reasonable value of such use, payment of which may be enforced by the department of ((revenue))taxation or by the administrator of the estate.
Sec. 13. RCW
11.08.210 and 1979 ex.s. c 209 s 19 are each amended to read as follows:
If at the expiration of four months from the date of the first publication of notice to creditors no heirs have appeared and established their claim to the estate, the court may enter an interim order allowing claims, expenses, and partial fees. If at the expiration of ten months from the date of issuance of letters testamentary or of administration no heirs have appeared and established their claim to the estate, all personal property not in the form of cash shall be sold under order of the court. Personal property found by the court to be worthless shall be ordered abandoned. Real property shall not be sold for the satisfaction of liens thereon, or for the payment of the debts of decedent or expenses of administration until the proceeds of the personal property are first exhausted. The court shall then enter a decree allowing any additional fees and charges deemed proper and distributing the balance of the cash on hand, together with any real property, to the state. Remittance of cash on hand shall be made to the department of ((revenue))taxation which shall make proper records thereof and forthwith forward such funds to the state treasurer for deposit in the permanent common school fund of the state.
Sec. 14. RCW
11.08.220 and 1988 c 128 s 2 are each amended to read as follows:
The department of ((revenue))taxation shall be furnished two certified copies of the decree of the court distributing any real property to the state, one of which shall be forwarded to the department of natural resources which shall thereupon assume supervision of and jurisdiction over such real property and thereafter handle it the same as state common school lands. The administrator shall also file a certified copy of the decree with the auditor of any county in which the escheated real property is situated.
Sec. 15. RCW
11.08.230 and 2010 c 8 s 2009 are each amended to read as follows:
Upon the appearance of heirs and the establishment of their claim to the satisfaction of the court prior to entry of the decree of distribution to the estate, the provisions of RCW
11.08.140 through
11.08.280 shall not further apply, except for purposes of appeal: PROVIDED, That the department of ((
revenue))
taxation shall be promptly given written notice of such appearance by the claimants and furnished copies of all papers or documents on which such claim of heirship is based. Any documents in a foreign language shall be accompanied by translations made by a properly qualified translator, certified by him or her to be true and correct translations of the original documents. The administrator or his or her attorney shall also furnish the department of ((
revenue))
taxation with any other available information bearing on the validity of the claim.
Sec. 16. RCW
11.08.240 and 2010 c 8 s 2010 are each amended to read as follows:
Any claimant to escheated funds or real property shall have seven years from the date of issuance of letters testamentary or of administration within which to file his or her claim. Such claim shall be filed with the court having original jurisdiction of the estate, and a copy thereof served upon the department of ((revenue))taxation, together with twenty days notice of the hearing thereon.
Sec. 17. RCW
11.08.250 and 1993 c 49 s 2 are each amended to read as follows:
Upon establishment of the claim to the satisfaction of the court, it shall order payment to the claimant of any escheated funds and delivery of any escheated land, or the proceeds thereof, if sold. If, however, the escheated property shall have been transferred to the state parks and recreation commission or local jurisdiction for park purposes, the court shall order payment to the claimant for the fair market value of the property at the time of transfer, excluding the value of physical improvements to the property while managed by a state agency or local jurisdiction. The value shall be established by independent appraisal obtained by the department of ((revenue))taxation.
Sec. 18. RCW
11.08.260 and 1993 c 49 s 3 are each amended to read as follows:
In the event the order of the court requires the payment of escheated funds or the proceeds of the sale of escheated real property or the appraised value of escheated property transferred for park purposes, a certified copy of such order shall be served upon the department of ((revenue))taxation which shall thereupon take any steps necessary to effect payment to the claimant out of the general fund of the state.
Sec. 19. RCW
11.08.300 and 2008 c 6 s 907 are each amended to read as follows:
Escheat property may be transferred to the department of ((
revenue))
taxation under the provisions of RCW
11.62.005 through
11.62.020. The department of ((
revenue))
taxation shall furnish proof of death and an affidavit made by the department which meets the requirements of RCW
11.62.010 to any person who is indebted to or has possession of any personal property belonging to the decedent or to the decedent and his or her surviving spouse or surviving domestic partner as a community, which debt or personal property is an asset which is subject to probate. Upon receipt of such proof of death and affidavit, the person shall pay the indebtedness or deliver the personal property, or as much of either as is claimed, to the department of ((
revenue))
taxation pursuant to RCW
11.62.010.
The department of ((
revenue))
taxation shall file a copy of its affidavit made pursuant to chapter
11.62 RCW with the clerk of the court where any probate administration of the decedent has been commenced, or, if no probate administration has been commenced, then with the clerk of the court of any county provided by law as a place for probate administration of the estate of such person. The affidavit shall be indexed under the name of the decedent in the probate index upon payment of a fee of two dollars. Any claimant to escheated funds shall have seven years from the filing of the affidavit by the department of ((
revenue))
taxation within which to file the claim. The claim shall be filed with the clerk of the court where the affidavit of the department of ((
revenue))
taxation was filed, and a copy served upon the department of ((
revenue))
taxation, together with twenty days notice of a hearing to be held thereon, and the provisions of RCW
11.08.250 through
11.08.280 shall apply.
Sec. 20. RCW
11.44.015 and 1997 c 252 s 41 are each amended to read as follows:
(1) Within three months after appointment, unless a longer time shall be granted by the court, every personal representative shall make and verify by affidavit a true inventory and appraisement of all of the property of the estate passing under the will or by laws of intestacy and which shall have come to the personal representative's possession or knowledge, including a statement of all encumbrances, liens, or other secured charges against any item. The personal representative shall determine the fair net value, as of the date of the decedent's death, of each item contained in the inventory after deducting the encumbrances, liens, and other secured charges on the item. Such property shall be classified as follows:
(a) Real property, by legal description;
(b) Stocks and bonds;
(c) Mortgages, notes, and other written evidences of debt;
(d) Bank accounts and money;
(e) Furniture and household goods;
(f) All other personal property accurately identified, including the decedent's proportionate share in any partnership, but no inventory of the partnership property shall be required of the personal representative.
(2) The inventory and appraisement may, but need not be, filed in the probate cause, but upon receipt of a written request for a copy of the inventory and appraisement from any heir, legatee, devisee, unpaid creditor who has filed a claim, or beneficiary of a nonprobate asset from whom contribution is sought under RCW
11.18.200, or from the department of ((
revenue))
taxation, the personal representative shall furnish to the person, within ten days of receipt of a request, a true and correct copy of the inventory and appraisement.
Sec. 21. RCW
11.76.220 and 1975 1st ex.s. c 278 s 10 are each amended to read as follows:
If the estate remains in the hands of the agent unclaimed for three years, any property not in the form of cash shall be sold under order of the court, and all funds, after deducting a reasonable sum for expenses and services of the agent, to be fixed by the court, shall be paid into the county treasury. The county treasurer shall issue triplicate receipts therefor, one of which shall be filed with the county auditor, one with the court, and one with the department of ((revenue))taxation. If the funds remain in the county treasury unclaimed for a period of four years and ninety days, the county treasurer shall forthwith remit them to the department of ((revenue))taxation for deposit in the state treasury in the fund in which escheats and forfeitures are by law required to be deposited.
Sec. 22. RCW
11.76.240 and 2010 c 8 s 2075 are each amended to read as follows:
During the time the estate is held by the agent, or within four years after it is delivered to the county treasury, claim may be made thereto only by the absentee person or his or her legal representative, excepting that if it clearly appears that such person died prior to the decedent in whose estate distribution was made to him or her, but leaving lineal descendants surviving, such lineal descendants may claim. If any claim to the estate is made during the period specified above, the claimant shall forthwith notify the department of ((revenue))taxation in writing of such claim. The court, being first satisfied as to the right of such person to the estate, and after the filing of a clearance from the department of ((revenue))taxation, shall order the agent, or the county treasurer, as the case may be, to forthwith deliver the estate, or the proceeds thereof, if sold, to such person.
Sec. 23. RCW
11.76.245 and 2010 c 8 s 2077 are each amended to read as follows:
After any time limitation prescribed in RCW
11.76.220,
11.76.240 or
11.76.243, the absentee claimant may, at any time, if the assets of the estate have not been claimed under the provisions of RCW
11.76.240 and
11.76.243, notify the department of ((
revenue))
taxation of his or her claim to the estate, and file in the court which had jurisdiction of the original probate a petition claiming the assets of the estate. The department of ((
revenue))
taxation may appear in answer to such petition. Upon proof being made to the probate court that the claimant is entitled to the estate assets, the court shall render its judgment to that effect and the assets shall be paid to the claimant without interest, upon appropriation made by the legislature.
Sec. 24. RCW
14.08.122 and 1999 c 302 s 1 are each amended to read as follows:
An airport operator may adopt all regulations necessary for rental and use of airport facilities and for the expeditious collection of airport charges. The regulations may also establish procedures for the enforcement of these regulations by the airport operator. The regulations shall include the following:
(1) Procedures authorizing airport personnel to take reasonable measures including, but not limited to, the use of chains, ropes, and locks to secure aircraft within the airport facility so that the aircraft are in the possession and control of the airport operator and cannot be removed from the airport. These procedures may be used if an owner hangaring or parking an aircraft at the airport fails, after being notified that charges are owing and of the owner's right to contest that such charges are owing, to pay the airport charges owed or to commence legal proceedings. Notification shall be by registered mail to the owner at his or her last known address. In the case of an aircraft where an owner's address cannot be determined or obtained after reasonable effort, the airport operator need not give such notice prior to securing the aircraft. At the time of securing the aircraft, an authorized airport employee shall attach to the aircraft a readily visible notice and shall make a reasonable attempt to send a copy of the notice to the owner at his or her last known address by registered mail, return receipt requested, and an additional copy of the notice by first-class mail. The notice shall be of a reasonable size and shall contain the following information:
(a) The date and time the notice was attached;
(b) A reasonable description of the aircraft;
(c) The identity of the authorized employee;
(d) The amount of airport charges owing;
(e) A statement that if the account is not paid in full within ninety days from the time the notice was attached the aircraft may be sold at public auction to satisfy the airport charges;
(f) A statement of the owner's right to commence legal proceedings to contest the charges owing and to have the aircraft released upon posting of an adequate cash bond or other security; and
(g) The address and telephone number where additional information may be obtained concerning the release of the aircraft.
(2) Procedures authorizing airport personnel at their discretion to move aircraft to an area within the airport operator's control or for storage with private persons under the airport operator's control as bailees of the airport facility. Costs of any such procedure shall be paid by the aircraft's owner.
(3) If an aircraft is secured under subsection (1) of this section or moved under conditions authorized by subsection (2) of this section the owner who is obligated for hangaring or parking or other airport charges may regain possession of the aircraft by:
(a) Making arrangements satisfactory with the airport operator for the immediate removal of the aircraft from the airport's hangar, or making arrangements for authorized parking; and
(b) By making payment to the airport operator of all airport charges or by posting with the airport operator a sufficient cash bond or other security acceptable to such operator, to be held in trust by the airport operator pending written agreement of the parties with respect to payment by the aircraft owner of the amount owing, or pending resolution of charges in a civil action in a court of competent jurisdiction. Upon written agreement or judicial resolution, the trust shall terminate and the airport operator shall receive so much of the bond or other security as is necessary to satisfy the agreement, or any judgment, costs, and interest as may be awarded to the airport operator. The balance shall be refunded immediately to the owner at the owner's last known address by registered mail, return receipt requested. The airport operator shall send to the owner by first-class mail a notice that the balance of funds was forwarded to him or her by registered mail, return receipt requested.
(4) If an aircraft parked or hangared at an airport is abandoned, the airport operator may authorize the public sale of the aircraft by authorized personnel to the highest and best bidder for cash as follows:
(a) If an aircraft has been secured by the airport operator under subsection (1) of this section and is not released to the owner under the bonding provisions of this section within ninety days after notifying or attempting to notify the owner under subsection (1) of this section, or in all other cases, for ninety days after the airport operator secures the aircraft, the aircraft shall be conclusively presumed to have been abandoned by the owner;
(b) Before the aircraft is sold, the owner of the aircraft shall be given at least twenty days' notice of sale by registered mail, return receipt requested, if the name and address of the owner are known, and the notice of sale shall be published at least once, more than ten but less than twenty days before the sale, in a newspaper of general circulation in the county in which the airport is located. The notice shall include the name of the aircraft, if any, its aircraft identification number, the last known owner and address, the time and place of sale, the amount of airport charges that will be owing at the time of sale, a reasonable description of the aircraft to be sold and a statement that the airport operator may bid all or part of its airport charges at the sale and may become a purchaser at the sale;
(c) Before the aircraft is sold, any person seeking to redeem an impounded aircraft under this section may commence a lawsuit in the superior court of the county in which the aircraft was impounded, to contest the validity of the impoundment or the amount of airport charges owing. Such lawsuit must be commenced within ten days of the date the notification was provided under subsection (1) of this section, or the right to a hearing is waived and the owner is liable for any airport charges owing the airport operator. In the event of litigation, the prevailing party is entitled to reasonable attorneys' fees and costs;
(d) The proceeds of a sale under this section shall first be applied to payment of airport charges owed. The balance, if any, shall be deposited with the department of ((
revenue))
taxation to be held in trust for the owner or owners and lienholders for a period of one year. If more than one owner appears on the aircraft title, and/or if any liens appear on the title, the department must, if a claim is made, interplead the balance into a court of competent jurisdiction for distribution. The department may release the balance to the legal owner provided that the claim is made within one year of sale and only one legal owner and no lienholders appear on the title. If no valid claim is made within one year of the date of sale, the excess funds from the sale shall be deposited in the aircraft search and rescue, safety, and education account created in RCW
47.68.236. If the sale is for a sum less than the applicable airport charges, the airport operator is entitled to assert a claim against the aircraft owner or owners for the deficiency;
(e) In the event that no one purchases the aircraft at a sale, or that the aircraft is not removed from the premises or other arrangements are not made within ten days of the sale, title to the aircraft shall revert to the airport operator.
(5) The regulations authorized under this section shall be enforceable only if:
(a) The airport operator has had its tariff and/or regulations, including any and all regulations authorizing the impoundment of an aircraft that is the subject of delinquent airport charges, conspicuously posted at the airport manager's office at all times((.[;]));
(b) All impounding remedies available to the airport operator are included in any written contract for airport charges between an airport operator and an aircraft owner; and
(c) All rules and regulations authorized under this section are adopted either pursuant to chapter
34.05 RCW, or by resolution of the appropriate legislative authority, as applicable.
Sec. 25. RCW
15.100.040 and 2002 c 251 s 3 are each amended to read as follows:
(1) The director shall call the initial meeting of producers of forest products for the purpose of nominating their respective members of the commission after receiving notice from an association representing producers of forest products that substantial interest exists in forming a forest products commission. Public notice of the meeting shall be given by the director in the manner the director determines is appropriate. A producer may on his or her own motion file his or her name with the director for the purpose of receiving notice of the meeting. The nonreceipt of the notice by any interested person does not invalidate the proceedings.
(2) Prior to the nomination of commission members, the department of ((revenue))taxation shall provide the director with a list of all qualified producers within the state based upon tax records of the department.
(3) For the initial election of commission members, any qualified producer may be nominated orally for a commissioner position at the meeting convened by the director. Nominations may also be made within five days prior to the meeting by a written petition filed with the department, signed by at least five producers who reside in the state. If the director determines that one of the positions from eastern Washington will go unfilled because of a lack of candidates, the director shall announce that this position shall be filled by a member from western Washington. If the position designated for eastern Washington is filled by a member from western Washington because of a lack of candidates from eastern Washington, this position shall be designated as position number seven by the director for purposes of RCW
15.100.030(5). Under no circumstances will there be less than two board members from eastern Washington.
(4) The initial members of the commission shall be elected by secret mail ballot under the supervision of the director at the same time the referendum is submitted under RCW
15.100.120 calling for the creation of the commission and the imposition of the initial assessment. If a nominee does not receive a majority of the votes on the first ballot, a runoff election shall be held by mail in a similar manner between the two candidates for the position receiving the largest number of votes.
(5) If the director determines under RCW
15.100.120(3) that the requisite approval for the establishment of a commission has not been given, any subsequent efforts to create a commission must follow the procedures established under this chapter for the initial nomination and election of members.
Sec. 26. RCW
15.100.050 and 2001 c 314 s 5 are each amended to read as follows:
(1) After the initial election of commission members, the commission shall establish rules for electing commission members, including the method used for notification, nominating, and voting. The commission may create commission districts and boundaries, and may also establish a weighted voting procedure for election of commission members. The commission shall hold its annual meeting during the month of October each year for the purpose of nominating commission members and the transaction of other business. Public notice of the meeting shall be given by the commission in the manner it determines is appropriate. A producer may on his or her own motion file his or her name with the commission for the purpose of receiving notice of the meeting. The nonreceipt of the notice by any interested person does not invalidate the proceedings.
(2) Prior to the nomination of commission members, the department of ((revenue))taxation shall provide the commission with a list of all qualified producers within the state based upon tax records of the department.
Sec. 27. RCW
15.100.100 and 2001 c 314 s 10 are each amended to read as follows:
(1) The commission shall cause a list to be prepared of all Washington producers of forest products from any information available from the commission, producers' association, or producers, including tax records from the department of ((revenue))taxation. This list shall contain the names and addresses of all persons who produce forest products within this state, the amount of forest products produced during the period designated by the commission, and the assessment amount for each member. The list is considered confidential and may be reviewed only by the employees of the commission, except for information that may be disclosed to the public and commission members under subsection (4) of this section. A qualified person may, at any time, have his or her name placed upon the list by delivering or mailing the information to the commission. This list shall be corrected and brought up-to-date in accordance with evidence and information available to the commission on or before December 31st of each year, or as soon thereafter as possible. For all purposes of giving notice and holding referendums, the list on hand, corrected up to the day next preceding the date for issuing notices or ballots as the case may be, is, for purposes of this chapter, the list of all producers entitled to notice or to assent or dissent or to vote.
(2) The commission shall develop a reporting system to document that the producers of forest products in this state are reporting quantities of forest products produced and subject to the assessment as provided in RCW
15.100.110.
(3) The department of ((revenue))taxation may charge the commission for the reasonable costs of providing reports of harvest activity on a quarterly basis.
(4) Any taxpayer information received by the commission from the department of ((revenue))taxation may only be used for the limited purposes of establishing lists of producers necessary to determine eligibility for voting, eligibility for serving as a commission member, the amount of assessments owed, or other necessary purposes as established by law. Any return or tax information received from the department of ((revenue))taxation may be reviewed only by the employees of the commission. Employees may disclose to the public and commission members a list of commission members, groupings of at least three commission members by the amount of forest products harvested over any time period designated by the commission of at least one quarter, and the members who are eligible for the various positions on the commission.
Sec. 28. RCW
18.11.085 and 2002 c 86 s 206 are each amended to read as follows:
Every individual, before acting as an auctioneer, shall obtain an auctioneer certificate of registration. To be licensed as an auctioneer, an individual shall meet all of the following requirements:
(1) Be at least eighteen years of age or sponsored by a licensed auctioneer.
(2) File with the department a completed application on a form prescribed by the director.
(3) Show that the proper tax registration certificate required by RCW
82.32.030 has been obtained from the department of ((
revenue))
taxation.
(4) Pay the auctioneer registration fee required under the agency rules adopted pursuant to this chapter.
(5) Except as otherwise provided under RCW
18.11.121, file with the department an auctioneer surety bond in the amount and form required by RCW
18.11.121 and the agency rules adopted pursuant to this chapter.
Sec. 29. RCW
18.11.095 and 2002 c 86 s 207 are each amended to read as follows:
Every person, before operating an auction company as defined in RCW
18.11.050, shall obtain an auction company certificate of registration.
(1) Except as provided in subsection (2) of this section, to be licensed as an auction company, a person shall meet all of the following requirements:
(a) File with the department a completed application on a form prescribed by the director.
(b) Sign a notarized statement included on the application form that all auctioneers hired by the auction company to do business in the state shall be properly registered under this chapter.
(c) Show that the proper tax registration certificate required by RCW
82.32.030 has been obtained from the department of ((
revenue))
taxation.
(d) Pay the auction company registration fee required under the agency rules adopted pursuant to this chapter.
(e) File with the department an auction company surety bond in the amount and form required by RCW
18.11.121 and the agency rules adopted pursuant to this chapter.
(2) An auction company shall not be charged a license fee if it is a sole proprietorship or a partnership owned by an auctioneer or auctioneers, each of whom is licensed under this chapter, and if it has in effect a surety bond or bonds or other security approved by the director in the amount that would otherwise be required for an auction company to be granted or to retain a license under RCW
18.11.121.
Sec. 30. RCW
18.16.050 and 2015 c 62 s 3 are each amended to read as follows:
(1) There is created a state cosmetology, hair design, barbering, esthetics, and manicuring advisory board consisting of a maximum of ten members appointed by the director. These members of the board shall include: A representative of private schools licensed under this chapter; a representative from an approved apprenticeship program conducted in an approved salon/shop; a representative of public vocational technical schools licensed under this chapter; a consumer who is unaffiliated with the cosmetology, hair design, barbering, esthetics, master esthetics, or manicuring industry; and six members who are currently practicing licensees who have been engaged in the practice of manicuring, esthetics, master esthetics, barbering, hair design, or cosmetology for at least three years. Members shall serve a term of three years. Any board member may be removed for just cause. The director may appoint a new member to fill any vacancy on the board for the remainder of the unexpired term.
(2) Board members shall be entitled to compensation pursuant to RCW
43.03.240 for each day spent conducting official business and to reimbursement for travel expenses as provided by RCW
43.03.050 and
43.03.060.
(3) The board may seek the advice and input of officials from the following state agencies: (a) The workforce training and education coordinating board; (b) the employment security department; (c) the department of labor and industries; (d) the department of health; (e) the department of licensing; and (f) the department of ((revenue))taxation.
Sec. 31. RCW
18.16.175 and 2015 c 62 s 7 are each amended to read as follows:
(1) A salon/shop or mobile unit shall meet the following minimum requirements:
(a) Maintain an outside entrance separate from any rooms used for sleeping or residential purposes;
(b) Provide and maintain for the use of its customers adequate toilet facilities located within or adjacent to the salon/shop or mobile unit;
(c) Any room used wholly or in part as a salon/shop or mobile unit shall not be used for residential purposes, except that toilet facilities may be used for both residential and business purposes;
(d) Meet the zoning requirements of the county, city, or town, as appropriate;
(e) Provide for safe storage and labeling of chemicals used in the practices under this chapter;
(f) Meet all applicable local and state fire codes; and
(g) Certify that the salon/shop or mobile unit is covered by a public liability insurance policy in an amount not less than one hundred thousand dollars for combined bodily injury and property damage liability.
(2) The director may by rule determine other requirements that are necessary for safety and sanitation of salons/shops, personal services, or mobile units. The director may consult with the state board of health and the department of labor and industries in establishing minimum salon/shop, personal services, and mobile unit safety requirements.
(3) Personal services license holders shall certify coverage of a public liability insurance policy in an amount not less than one hundred thousand dollars for combined bodily injury and property damage liability.
(4) Upon receipt of a written complaint that a salon/shop or mobile unit has violated any provisions of this chapter, chapter
18.235 RCW, or the rules adopted under either chapter, or at least once every two years for an existing salon/shop or mobile unit, the director or the director's designee shall inspect each salon/shop or mobile unit. If the director determines that any salon/shop or mobile unit is not in compliance with this chapter, the director shall send written notice to the salon/shop or mobile unit. A salon/shop or mobile unit which fails to correct the conditions to the satisfaction of the director within a reasonable time shall, upon due notice, be subject to the penalties imposed by the director under RCW
18.235.110. The director may enter any salon/shop or mobile unit during business hours for the purpose of inspection. The director may contract with health authorities of local governments to conduct the inspections under this subsection.
(5) A salon/shop, personal services, or mobile unit shall obtain a certificate of registration from the department of ((revenue))taxation.
(6) This section does not prohibit the use of motor homes as mobile units if the motor home meets the health and safety standards of this section.
(7) Salon/shop or mobile unit licenses issued by the department must be posted in the salon/shop or mobile unit's reception area.
(8) Cosmetology, hair design, barbering, esthetics, master esthetics, and manicuring licenses issued by the department must be posted at the licensed person's workstation.
Sec. 32. RCW
18.27.030 and 2008 c 120 s 1 are each amended to read as follows:
(1) An applicant for registration as a contractor shall submit an application under oath upon a form to be prescribed by the director and which shall include the following information pertaining to the applicant:
(a) Employer social security number.
(b) Unified business identifier number.
(c) Evidence of workers' compensation coverage for the applicant's employees working in Washington, as follows:
(i) The applicant's industrial insurance account number issued by the department;
(ii) The applicant's self-insurer number issued by the department; or
(iii) For applicants domiciled in a state or province of Canada subject to an agreement entered into under RCW
51.12.120(7), as permitted by the agreement, filing a certificate of coverage issued by the agency that administers the workers' compensation law in the applicant's state or province of domicile certifying that the applicant has secured the payment of compensation under the other state's or province's workers' compensation law.
(d) Employment security department number.
(e) Unified business identifier (UBI) account number may be substituted for the information required by (c) and (d) of this subsection if the applicant will not employ employees in Washington.
(f) Type of contracting activity, whether a general or a specialty contractor and if the latter, the type of specialty.
(g) The name and address of each partner if the applicant is a firm or partnership, or the name and address of the owner if the applicant is an individual proprietorship, or the name and address of the corporate officers and statutory agent, if any, if the applicant is a corporation or the name and address of all members of other business entities. The information contained in such application is a matter of public record and open to public inspection.
(2) The department may verify the workers' compensation coverage information provided by the applicant under subsection (1)(c) of this section, including but not limited to information regarding the coverage of an individual employee of the applicant. If coverage is provided under the laws of another state, the department may notify the other state that the applicant is employing employees in Washington.
(3)(a) The department shall deny an application for registration if: (i) The applicant has been previously performing work subject to this chapter as a sole proprietor, partnership, corporation, or other entity and the department has notice that the applicant has an unsatisfied final judgment against him or her in an action based on work performed subject to this chapter or the applicant owes the department money for penalties assessed or fees due under this chapter as a result of a final judgment; (ii) the applicant was an owner, principal, or officer of a partnership, corporation, or other entity that either has an unsatisfied final judgment against it in an action that was incurred for work performed subject to this chapter or owes the department money for penalties assessed or fees due under this chapter as a result of a final judgment; (iii) the applicant does not have a valid unified business identifier number; (iv) the department determines that the applicant has falsified information on the application, unless the error was inadvertent; or (v) the applicant does not have an active and valid certificate of registration with the department of ((revenue))taxation.
(b) The department shall suspend an active registration if (i) the department has determined that the registrant has an unsatisfied final judgment against it for work within the scope of this chapter; (ii) the department has determined that the registrant is a sole proprietor or an owner, principal, or officer of a registered contractor that has an unsatisfied final judgment against it for work within the scope of this chapter; (iii) the registrant does not maintain a valid unified business identifier number; (iv) the department has determined that the registrant falsified information on the application, unless the error was inadvertent; or (v) the registrant does not have an active and valid certificate of registration with the department of ((revenue))taxation.
(c) The department may suspend an active registration if the department has determined that an owner, principal, partner, or officer of the registrant was an owner, principal, or officer of a previous partnership, corporation, or other entity that has an unsatisfied final judgment against it.
(4) The department shall not deny an application or suspend a registration because of an unsatisfied final judgment if the applicant's or registrant's unsatisfied final judgment was determined by the director to be the result of the fraud or negligence of another party.
Sec. 33. RCW
18.27.390 and 2001 c 159 s 13 are each amended to read as follows:
(1) The legislature finds that it is contrary to public policy to allow unregistered contractors to continue doing business illegally.
(2) The department of labor and industries, the employment security department, and the department of ((revenue))taxation shall establish an unregistered contractors enforcement team. The team shall develop a written plan to coordinate the activities of the participating agencies to enforce the state's contractor registration laws and rules and other state laws and rules deemed appropriate by the team. In developing the plan, the team shall seek the input and advice of interested stakeholders who support the work of the team.
(3) The director or the director's designee shall call the initial meeting of the unregistered contractors enforcement team by September 1, 2001. The team shall complete the plan and forward it to the appropriate standing committees of the legislature and to the departments that contribute members to the team by December 1, 2001.
(4) The department of labor and industries, the employment security department, and the department of ((
revenue))
taxation shall accomplish the tasks listed in this section within existing resources, including but not limited to fees charged under RCW
18.27.075.
Sec. 34. RCW
18.300.020 and 2009 c 412 s 3 are each amended to read as follows:
In addition to any other duties imposed by law, including RCW
18.235.030 and
18.235.040, the director has the following powers and duties:
(1) To set all license, examination, and renewal fees in accordance with RCW
43.24.086;
(2) To adopt rules necessary to implement this chapter;
(3) To prepare and administer or approve the preparation and administration of licensing;
(4) To establish minimum safety and sanitation standards for practitioners of body art, body piercing, or tattooing as determined by the department of health;
(5) To maintain the official department record of applicants and licensees;
(6) To set license expiration dates and renewal periods for all licenses consistent with this chapter;
(7) To ensure that all informational notices produced and mailed by the department regarding statutory and regulatory changes affecting any particular class of licensees are mailed to each licensee in good standing in the affected class whose mailing address on record with the department has not resulted in mail being returned as undeliverable for any reason; and
(8) To make information available to the department of ((revenue))taxation to assist in collecting taxes from persons and businesses required to be licensed under this chapter.
Sec. 35. RCW
18.300.070 and 2009 c 412 s 8 are each amended to read as follows:
(1) A body art, body piercing, or tattooing shop or business shall meet the following minimum requirements:
(a) Maintain an outside entrance separate from any rooms used for sleeping or residential purposes;
(b) Provide and maintain for the use of its customers adequate toilet facilities located within or adjacent to the shop or business;
(c) Any room used wholly or in part as a shop or business may not be used for residential purposes, except that toilet facilities may be used for both residential and business purposes;
(d) Meet the zoning requirements of the county, city, or town, as appropriate;
(e) Provide for safe storage and labeling of equipment and substances used in the practices under this chapter;
(f) Meet all applicable local and state fire codes; and
(g) Certify that the shop or business is covered by a public liability insurance policy in an amount not less than one hundred thousand dollars for combined bodily injury and property damage liability.
(2) The director may by rule determine other requirements that are necessary for safety and sanitation of shops or businesses. The director may consult with the state board of health and the department of labor and industries in establishing minimum shop and business safety requirements.
(3) Upon receipt of a written complaint that a shop or business has violated any provisions of this chapter, chapter
18.235 RCW, or the rules adopted under either chapter, or at least once every two years for an existing shop or business, the director or the director's designee shall inspect each shop or business. If the director determines that any shop or business is not in compliance with this chapter, the director shall send written notice to the shop or business. A shop or business which fails to correct the conditions to the satisfaction of the director within a reasonable time is, upon due notice, subject to the penalties imposed by the director under RCW
18.235.110. The director may enter any shop or business during business hours for the purpose of inspection. The director may contract with health authorities of local governments to conduct the inspections under this subsection.
(4) A shop or business shall obtain a certificate of registration from the department of ((revenue))taxation.
(5) Shop or business location licenses issued by the department must be posted in the shop or business's reception area.
(6) Body art, body piercing, and tattooing practitioner individual licenses issued by the department must be posted at the licensed person's workstation.
Sec. 36. RCW
19.02.020 and 2013 c 144 s 16 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Business license" means the single document designed for public display issued by the business licensing service, which certifies state agency or local government license approval and which incorporates the endorsements for individual licenses included in the business licensing system, which the state or local government requires for any person subject to this chapter.
(2) "Business license application" means a document incorporating pertinent data from existing applications for licenses covered under this chapter.
(3) "Business licensing service" means the business registration and licensing service established by this chapter and located in and under the administrative control of the department of ((revenue))taxation.
(4) "Department" means the department of ((revenue))taxation.
(5) "Director" means the director of the department.
(6) "License" means the whole or part of any agency or local government permit, license, certificate, approval, registration, charter, or any form or permission required by law, including agency rule, to engage in any activity.
(7) "License information packet" means a collection of information about licensing requirements and application procedures custom-assembled for each request.
(8) "Participating local government" means a municipal corporation or political subdivision that participates in the business licensing system established by this chapter.
(9) "Person" means any individual, sole proprietorship, partnership, association, cooperative, corporation, nonprofit organization, state or local government agency, and any other organization required to register with the state or a participating local government to do business in the state or the participating local government and to obtain one or more licenses from the state or any of its agencies or the participating local government.
(10) "Regulatory" means all licensing and other governmental or statutory requirements pertaining to business or professional activities.
(11) "Regulatory agency" means any state agency, board, commission, division, or local government that regulates one or more professions, occupations, industries, businesses, or activities.
(12) "Renewal application" means a document used to collect pertinent data for renewal of licenses covered under this chapter.
(13) "System" or "business licensing system" means the procedure by which business licenses are issued and renewed, license and regulatory information is collected and disseminated with due regard to privacy statutes, and account data is exchanged by the agencies and participating local governments.
Sec. 37. RCW
19.02.050 and 2018 c 58 s 33 are each amended to read as follows:
Each of the following agencies must fully participate in the implementation of this chapter:
(1) Department of agriculture;
(2) Secretary of state;
(3) Department of social and health services;
(4) Department of ((revenue))taxation;
(5) Department of fish and wildlife;
(6) Employment security department;
(7) Department of labor and industries;
(8) Liquor and cannabis board;
(9) Department of health;
(10) Department of licensing;
(11) Utilities and transportation commission;
(12) Board of accountancy;
(13) Department of archaeology and historic preservation;
(14) Department of children, youth, and families;
(15) Department of ecology;
(16) Department of financial institutions;
(17) Department of transportation;
(18) Gambling commission;
(19) Horse racing commission;
(20) Office of the insurance commissioner;
(21) State lottery;
(22) Student achievement council;
(23) Washington state patrol;
(24) Workforce training and education coordinating board; and
(25) Other agencies as determined by the governor.
Sec. 38. RCW
19.02.115 and 2017 c 323 s 701 are each amended to read as follows:
(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Disclose" means to make known to any person in any manner licensing information.
(b) "Licensing information" means any information created or obtained by the department in the administration of this chapter and chapters
19.80 and
59.30 RCW, which information relates to any person who: (i) Has applied for or has been issued a license or trade name; or (ii) has been issued an assessment or delinquency fee. Licensing information includes initial and renewal business license applications, and business licenses.
(c) "Person" has the same meaning as in RCW
82.04.030 and also includes the state and the state's departments and institutions.
(d) "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency.
(2) Licensing information is confidential and privileged, and except as authorized by this section, neither the department nor any other person may disclose any licensing information. Nothing in this chapter requires any person possessing licensing information made confidential and privileged by this section to delete information from such information so as to permit its disclosure.
(3) This section does not prohibit the department of ((revenue))taxation, or any other person receiving licensing information from the department under this subsection, from:
(a) Disclosing licensing information in a civil or criminal judicial proceeding or an administrative proceeding:
(i) In which the person about whom such licensing information is sought and the department, another state agency, or a local government are adverse parties in the proceeding; or
(ii) Involving a dispute arising out of the department's administration of chapter
19.80 or
59.30 RCW, or this chapter if the licensing information relates to a party in the proceeding;
(b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter
34.05 RCW, such licensing information regarding a license applicant or license holder to such license applicant or license holder or to such person or persons as that license applicant or license holder may designate in a request for, or consent to, such disclosure, or to any other person, at the license applicant's or license holder's request, to the extent necessary to comply with a request for information or assistance made by the license applicant or license holder to such other person. However, licensing information not received from the license applicant or holder must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the license applicant, license holder, or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies, which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the license applicant or license holder by the order of any court;
(c) Publishing statistics so classified as to prevent the identification of particular licensing information;
(d) Disclosing licensing information for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions, or licensing;
(e) Permitting the department's records to be audited and examined by the proper state officer, his or her agents and employees;
(f) Disclosing any licensing information to a peace officer as defined in RCW
9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax or license enforcement. A peace officer or county prosecuting attorney who receives the licensing information may disclose that licensing information only for use in the investigation and a related court proceeding, or in the court proceeding for which the licensing information originally was sought;
(g) Disclosing, in a manner that is not associated with other licensing information, the name of a license applicant or license holder, entity type, registered trade name, business address, mailing address, unified business identifier number, list of licenses issued to a person through the business licensing system established in this chapter and their issuance and expiration dates, and the dates of opening of a business. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of persons for any commercial purpose;
(h) Disclosing licensing information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter
42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;
(i) Disclosing any licensing information when the disclosure is specifically authorized under any other section of the Revised Code of Washington;
(j) Disclosing licensing information to the proper officer of the licensing or tax department of any city, town, or county of this state, for official purposes. If the licensing information does not relate to a license issued by the city, town, or county requesting the licensing information, disclosure may be made only if the laws of the requesting city, town, or county grants substantially similar privileges to the proper officers of this state; or
(k) Disclosing licensing information to the federal government for official purposes.
(4) Notwithstanding anything to the contrary in this section, a state agency or local government agency may disclose licensing information relating to a license issued on its behalf by the department pursuant to this chapter if the disclosure is authorized by another statute, local law, or administrative rule.
(5) The department, any other state agency, or local government may refuse to disclose licensing information that is otherwise disclosable under subsection (3) of this section if such disclosure would violate federal law or any information sharing agreement between the state or local government and federal government.
(6) Any person acquiring knowledge of any licensing information in the course of his or her employment with the department and any person acquiring knowledge of any licensing information as provided under subsection (3)(d), (e), (f), (j), or (k) of this section, who discloses any such licensing information to another person not entitled to knowledge of such licensing information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this state for a period of two years thereafter.
Sec. 39. RCW
19.02.210 and 2016 sp.s. c 36 s 916 are each amended to read as follows:
The business license account is created in the state treasury. Unless otherwise indicated in RCW
19.02.075, all receipts from handling and business license delinquency fees must be deposited into the account. Moneys in the account may be spent only after appropriation beginning in fiscal year 1993. Expenditures from the account may be used only to administer the business licensing service program. During the 2015-2017 fiscal biennium, moneys from the business license account may be used for operations of the department of ((
revenue))
taxation.
Sec. 40. RCW
19.80.005 and 2011 c 298 s 13 are each reenacted and amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Business" means an occupation, profession, or employment engaged in for the purpose of seeking a profit.
(2) "Department" means the department of ((revenue))taxation.
(3) "Person" means any individual, partnership, limited liability company, or corporation conducting or having an interest in a business in the state.
(4) "Trade name" means a word or name, or any combination of a word or name, used by a person to identify the person's business which:
(a) Is not, or does not include, the true and real name of all persons conducting the business; or
(b) Includes words which suggest additional parties of interest such as "company," "and sons," or "and associates."
(5) "True and real name" means:
(a) The surname of an individual coupled with one or more of the individual's other names, one or more of the individual's initials, or any combination;
(b) The designation or appellation by which an individual is best known and called in the business community where that individual transacts business, if this is used as that individual's legal signature;
(c) The registered corporate name of a domestic corporation as filed with the secretary of state;
(d) The registered corporate name of a foreign corporation authorized to do business within the state of Washington as filed with the secretary of state;
(e) The registered partnership name of a domestic limited partnership as filed with the secretary of state;
(f) The registered partnership name of a foreign limited partnership as filed with the secretary of state; or
(g) The name of a general partnership which includes in its name the true and real names, as defined in (a) through (f) of this subsection, of each general partner as required in RCW
19.80.010.
Sec. 41. RCW
19.94.015 and 2013 c 144 s 34 are each amended to read as follows:
(1) Except as provided in subsection (4) of this section for the initial registration of an instrument or device, no weighing or measuring instrument or device may be used for commercial purposes in the state unless its commercial use is registered annually. If its commercial use is within a city that has a city sealer and a weights and measures program as provided by RCW
19.94.280, the commercial use of the instrument or device must be registered with the city if the city has adopted fees pursuant to subsection (2) of this section. If its commercial use is outside of such a city, the commercial use of the instrument or device must be registered with the department.
(2) A city with such a sealer and program may establish an annual fee for registering the commercial use of such a weighing or measuring instrument or device with the city. The annual fee may not exceed the fee established in RCW
19.94.175 for registering the use of a similar instrument or device with the department. Fees upon weighing or measuring instruments or devices within the jurisdiction of the city that are collected under this subsection by city sealers must be deposited into the general fund, or other account, of the city as directed by the governing body of the city.
(3) Registrations with the department are accomplished as part of the business licensing system under chapter
19.02 RCW. Payment of the registration fee for a weighing or measuring instrument or device under the business licensing system constitutes the registration required by this section.
(4) The fees established by or under RCW
19.94.175 for registering a weighing or measuring instrument or device must be paid to the department of ((
revenue))
taxation concurrently with an application for a business license under chapter
19.02 RCW or with the annual renewal of a business license under chapter
19.02 RCW. A weighing or measuring instrument or device must be initially registered with the state at the time the owner applies for a business license for a new business or at the first renewal of the license that occurs after the instrument or device is first placed into commercial use. The department of ((
revenue))
taxation must remit to the department of agriculture all fees collected under this provision less reasonable collection expenses.
(5) Each city charging registration fees under this section must notify the department of agriculture at the time such fees are adopted and whenever changes in the fees are adopted.
Sec. 42. RCW
19.240.080 and 2004 c 168 s 9 are each amended to read as follows:
An issuer is not required to honor a gift certificate presumed abandoned under RCW
63.29.110, reported, and delivered to the department of ((
revenue))
taxation in the dissolution of a business association.
Sec. 43. RCW
19.305.010 and 2008 c 239 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Agent" means any person licensed by the department of ((revenue))taxation to purchase and affix adhesive or meter stamps on packages of cigarettes.
(2) "Cigarette" means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape and irrespective of the tobacco being flavored, adulterated, or mixed with any other ingredient, when the roll has a wrapper or cover made of paper or any material, except when the wrapper is wholly or in the greater part made of natural leaf tobacco in its natural state.
(3) "Manufacturer" means:
(a) Any entity that manufactures or otherwise produces cigarettes or causes cigarettes to be manufactured or produced anywhere that the manufacturer intends to be sold in this state, including cigarettes intended to be sold in the United States through an importer;
(b) The first purchaser anywhere that intends to resell in the United States cigarettes manufactured anywhere that the original manufacturer or maker does not intend to be sold in the United States; or
(c) Any entity that becomes a successor of an entity described in (a) or (b) of this subsection.
(4) "Quality control and quality assurance program" means the laboratory procedures implemented to ensure that operator bias, systematic and nonsystematic methodological errors, and equipment-related problems do not affect the results of the testing. Such a program ensures that the testing repeatability remains within the required repeatability values stated in RCW
19.305.020(1)(f) for all test trials used to certify cigarettes in accordance with this chapter.
(5) "Repeatability" means the range of values within which the repeat results of cigarette test trials from a single laboratory will fall ninety-five percent of the time.
(6) "Retail dealer" means any person, other than a manufacturer or wholesale dealer, engaged in selling cigarettes or tobacco products.
(7) "Sale" or "sell" means any transfer of title of cigarettes for consideration, exchange, barter, gift, offer for sale, or distribution, in any manner or by any means.
(8) "Wholesale dealer" means any person who sells cigarettes or tobacco products to retail dealers or other persons for purposes of resale, and any person who owns, operates, or maintains one or more cigarette or tobacco product vending machines in, at, or upon premises owned or occupied by any other person.
Sec. 44. RCW
19.305.030 and 2008 c 239 s 3 are each amended to read as follows:
(1) Each manufacturer shall submit to the state director of fire protection a written certification attesting that:
(a) Each cigarette listed in the certification has been tested in accordance with RCW
19.305.020; and
(b) Each cigarette listed in the certification meets the performance standard set forth in RCW
19.305.020(1)(c).
(2) Each cigarette listed in the certification shall be described with the following information:
(a) Brand or trade name on the package;
(b) Style, such as light or ultra light;
(c) Length in millimeters;
(d) Circumference in millimeters;
(e) Flavor, such as menthol or chocolate, if applicable;
(f) Filter or nonfilter;
(g) Package description, such as soft pack or box;
(h) Marking approved in accordance with RCW
19.305.040;
(i) The name, address, and telephone number of the laboratory, if different than the manufacturer that conducted the test; and
(j) The date the testing occurred.
(3) The certifications must be made available to the attorney general for purposes consistent with this chapter and the department of ((revenue))taxation for the purposes of ensuring compliance with this section.
(4) Each cigarette certified under this section must be recertified every three years.
(5) For each cigarette listed in a certification, a manufacturer shall pay to the state director of fire protection a fee of two hundred fifty dollars. The state director of fire protection is authorized to annually adjust this fee to ensure it defrays the actual costs of the processing, testing, enforcement, and oversight activities required by this chapter.
(6) If a manufacturer has certified a cigarette under this section, and thereafter makes any change to that cigarette that is likely to alter its compliance with the reduced cigarette ignition propensity standards required by this chapter, that cigarette may not be sold or offered for sale in this state until the manufacturer retests the cigarette in accordance with the testing standards set forth in RCW
19.305.020 and maintains records of that retesting as required by RCW
19.305.020. Any altered cigarette which does not meet the performance standard set forth in RCW
19.305.020 may not be sold in this state.
Sec. 45. RCW
19.305.040 and 2008 c 239 s 4 are each amended to read as follows:
(1) Cigarettes that are certified by a manufacturer in accordance with RCW
19.305.030 must be marked to indicate compliance with the requirements of RCW
19.305.020. The marking must be in eight-point type or larger and consist of:
(a) Modification of the universal product code to include a visible mark printed at or around the area of the code. The mark may consist of alphanumeric or symbolic characters permanently stamped, engraved, embossed, or printed in conjunction with the universal product code; or
(b) Any visible combination of alphanumeric or symbolic characters permanently stamped, engraved, or embossed upon the cigarette package or cellophane wrap; or
(c) Printed, stamped, engraved, or embossed text that indicates that the cigarettes meet the standards of this chapter.
(2) A manufacturer shall use only one marking, and shall apply this marking uniformly for all packages, including but not limited to packs, cartons, and cases, and brands marketed by that manufacturer.
(3) The state director of fire protection must be notified as to the marking that is selected.
(4) Prior to the certification of any cigarette, a manufacturer shall present its proposed marking to the state director of fire protection for approval. Upon receipt of the request, the state director of fire protection shall approve or disapprove the marking offered, except that the state director of fire protection shall (a) approve the letters "FSC," which signify fire standards compliant; and (b) give preference to any packaging marking in use and approved for that cigarette in New York pursuant to New York Executive Law section 156-c, Fire Safety Standards for Cigarettes, unless the state director of fire protection demonstrates a reasonable basis why that marking should not be approved under this chapter. Proposed markings are deemed approved if the state director of fire protection fails to act within ten business days of receiving a request for approval.
(5) A manufacturer shall not modify its approved marking unless the modification has been approved by the state director of fire protection in accordance with this section.
(6) Manufacturers certifying cigarettes in accordance with RCW
19.305.030 shall provide a copy of the certifications to all wholesale dealers and agents to which they sell cigarettes, and shall also provide sufficient copies of an illustration of the package marking utilized by the manufacturer under this section for each retail dealer to which the wholesale dealers or agents sell cigarettes. Wholesale dealers and agents shall provide a copy of these package markings received from manufacturers to all retail dealers to which they sell cigarettes. Wholesale dealers, agents, and retail dealers shall permit the state director of fire protection, the department of ((
revenue))
taxation, the attorney general, and their employees to inspect markings of cigarette packaging marked in accordance with this section.
Sec. 46. RCW
19.305.060 and 2008 c 239 s 6 are each amended to read as follows:
(1) The state director of fire protection may adopt rules necessary to implement this chapter.
(2) The department of ((
revenue))
taxation in the regular course of conducting inspections of wholesale dealers, agents, and retail dealers, as authorized under chapter
82.24 RCW, may inspect cigarettes to determine if the cigarettes are marked as required by RCW
19.305.040. If the cigarettes are not marked as required, the department of ((
revenue))
taxation shall notify the state director of fire protection.
Sec. 47. RCW
19.365.010 and 2015 c 166 s 1 are each amended to read as follows:
(1) Any radiology benefit manager that is owned by a carrier as defined in RCW
48.43.005 or acts as a subcontractor for a carrier must be registered with the department of ((
revenue's))
taxation's business licensing service and annually renew the registration.
(2)(a) For purposes of this section, a "radiology benefit manager" means a person that contracts with, or is owned by, a carrier or a third-party payor to:
(i) Process claims for services and procedures performed by a licensed radiologist or advanced diagnostic imaging service provider; or
(ii) Pay or authorize payment to radiology clinics, radiologists, or advanced diagnostic imaging service providers for services or procedures;
(b) "Radiology benefit manager" does not include a health care service contractor as defined in RCW
48.44.010, a health maintenance organization as defined in RCW
48.46.020, or an issuer as defined in RCW
48.01.053.
(3) To register under this section, a radiology benefit manager must:
(a) Submit an application requiring the following information:
(i) The identity of the radiology benefit manager;
(ii) The name, business address, phone number, and medical director for the radiology benefit manager; and
(iii) Where applicable, the federal tax employer identification number for the entity; and
(b) Pay a registration fee of two hundred dollars.
(4) To renew a registration under this section, a radiology benefit manager must pay a renewal fee of two hundred dollars.
(5) All receipts from registrations and renewals collected by the department of ((
revenue))
taxation must be deposited into the business license account created in RCW
19.02.210.
Sec. 48. RCW
19.370.060 and 2016 c 38 s 6 are each amended to read as follows:
(1) The department of ((revenue))taxation shall inform proprietors of their rights and responsibilities regarding the public performance of copyrighted music as part of the business licensing service.
(2) Performing rights societies are encouraged to conduct outreach campaigns to educate existing proprietors on their rights and responsibilities regarding the public performance of copyrighted music.
Sec. 49. RCW
22.28.040 and 2011 c 336 s 651 are each amended to read as follows:
If the amount due for the rental of any safe or box in the vaults of any safe deposit company shall not have been paid for one year, it may, at the expiration thereof, send to the person in whose name such safe or box stands on its books a notice in writing in securely closed, postpaid and certified mail, return receipt requested, directed to such person at his or her post office address, as recorded upon the books of the safe deposit company, notifying such person that if the amount due for the rental of such safe or box is not paid within thirty days from date, the safe deposit company will then cause such safe or box to be opened, and the contents thereof to be inventoried, sealed, and placed in one of its general safes or boxes.
Upon the expiration of thirty days from the date of mailing such notice, and the failure of the person in whose name the safe or box stands on the books of the company to pay the amount due for the rental thereof to the date of notice, the corporation may, in the presence of two officers of the corporation, cause such safe or box to be opened, and the contents thereof, if any, to be removed, inventoried and sealed in a package, upon which the officers shall distinctly mark the name of the person in whose name the safe or box stood on the books of the company, and the date of removal of the property, and when such package has been so marked for identification by the officers, it shall be placed in one of the general safes or boxes of the company at a rental not to exceed the original rental of the safe or box which was opened, and shall remain in such general safe or box for a period of not less than one year, unless sooner removed by the owner thereof, and two officers of the corporation shall thereupon file with the company a certificate which shall fully set out the date of the opening of such safe or box, the name of the person in whose name it stood and a reasonable description of the contents, if any.
A copy of such certificate shall within ten days thereafter be mailed to the person in whose name the safe or box so opened stood on the books of the company, at his or her last known post office address, in securely closed, postpaid and certified mail, return receipt requested, together with a notice that the contents will be kept, at the expense of such person, in a general safe or box in the vaults of the company, for a period of not less than one year. At any time after the mailing of such certificate and notice, and before the expiration of one year, such person may require the delivery of the contents of the safe as shown by said certificate, upon the payment of all rentals due at the time of opening of the safe or box, the cost of opening the box, and the payment of all further charges accrued during the period the contents remained in the general safe or box of the company.
The company may sell all the property or articles of value set out in said certificate, at public auction, provided a notice of the time and place of sale has been published once within ten days prior to the sale in a newspaper published in the county where the contents of the safe or box is located and where the holder chooses to conduct the sale. If the holder chooses not to sell the contents at public sale, the contents shall be delivered to the department of ((revenue))taxation as unclaimed property.
From the proceeds of the sale, the company shall deduct amounts which shall then be due for rental up to the time of opening the safe, the cost of opening thereof, and the further cost of safekeeping all of its contents for the period since the safe or box was opened, plus any additional charges accruing to the time of sale, including advertising and cost of sale. The balance, if any, of such proceeds, together with any unsold property, shall be deposited by the company within thirty days after the receipt of the same, with the department of ((revenue))taxation as unclaimed property. The company shall file with such deposit a certificate stating the name and last known place of residence of the owner of the property sold, the articles sold, the price obtained therefor, and showing that the notices herein required were duly mailed and that the sale was advertised as required herein.
Sec. 50. RCW
22.28.060 and 1983 c 289 s 2 are each amended to read as follows:
Whenever the contents of any such safe or box, so opened, shall consist either wholly or in part, of documents or letters or other papers of a private nature, such documents, letters, or papers shall not be sold, but shall be deposited with the department of ((revenue))taxation as unclaimed property unless sooner claimed by the owner. The department may hold or destroy documents or letters or other papers, and the holder shall not be held liable to any person or persons whatsoever for the destruction of papers or other contents which the department declines to accept.
The provision of this section shall not preclude any other remedy by action or otherwise now existing for the enforcement of the claims of a corporation against the person in whose name such safe or box stood, nor bar the right of a safe deposit company to recover so much of the debt due it as shall not be paid by the proceeds of the sale of the property deposited with it. The sale or disposition of property in accordance with this chapter shall discharge the holder of all liability to the owner for such sale or disposition, irrespective of whether a better price could have been obtained by a sale at a different time or in a different method from that selected by the holder.
Sec. 51. RCW
23.90.040 and 2015 c 176 s 9112 are each amended to read as follows:
(1) Any Massachusetts trust desiring to do business in this state shall file with the secretary of state, in accordance with Article 2 of chapter
23.95 RCW, a verified copy of the trust instrument creating such a trust and any amendment thereto, the assumed business name, if any, and the names and addresses of its trustees.
(2) Any person dealing with such Massachusetts trust shall be bound by the terms and conditions of the trust instrument and any amendments thereto so filed.
(3) Any Massachusetts trust created under this chapter or entering this state pursuant thereto shall pay such taxes and fees as are imposed by the laws, ordinances, and resolutions of the state of Washington and any counties and municipalities thereof on domestic and foreign corporations, respectively, on an identical basis therewith. In computing such taxes and fees, the shares of beneficial interest of such a trust shall have the character for tax purposes of shares of stock in private corporations.
(4) Any Massachusetts trust shall be subject to such applicable provisions of law, now or hereafter enacted, with respect to domestic and foreign corporations, respectively, as relate to the issuance of securities, filing of required statements or reports, service of process, general grants of power to act, right to sue and be sued, limitation of individual liability of shareholders, rights to acquire, mortgage, sell, lease, operate and otherwise to deal in real and personal property, and other applicable rights and duties existing under the common law and statutes of this state in a manner similar to those applicable to domestic and foreign corporations.
(5) The secretary of state, director of licensing, and the department of ((revenue))taxation of the state of Washington are each authorized and directed to prescribe binding rules and regulations applicable to said Massachusetts trusts consistent with this chapter.
Sec. 52. RCW
24.03.220 and 2004 c 265 s 23 are each amended to read as follows:
A corporation may dissolve and wind up its affairs in the following manner:
(1) Where there are members having voting rights with regard to the question, the board of directors shall adopt a resolution recommending that the corporation be dissolved, and directing that the question of such dissolution be submitted to a vote at a meeting of members having such voting rights, which may be either an annual or a special meeting. Notice in the form of a record stating that the purpose, or one of the purposes, of such meeting is to consider the advisability of dissolving the corporation, shall be given to each member entitled to vote at such meeting, within the time and in the manner provided in this chapter for the giving of notice of meetings of members. A resolution to dissolve the corporation shall be adopted upon receiving at least two-thirds of the votes which members present at such meeting or represented by proxy are entitled to cast.
(2) Where there are no members, or no members having voting rights with regard to the question, the dissolution of the corporation shall be authorized at a meeting of the board of directors upon the adoption of a resolution to dissolve by the vote of a majority of the directors in office.
Upon the adoption of such resolution by the members, or by the board of directors where there are no members or no members having voting rights, the corporation shall cease to conduct its affairs except in so far as may be necessary for the winding up thereof, shall immediately cause a notice of the proposed dissolution to be mailed to each known creditor of the corporation, to the attorney general with respect to assets subject to RCW
24.03.225(3), and to the department of ((
revenue))
taxation, and shall proceed to collect its assets and apply and distribute them as provided in this chapter.
Sec. 53. RCW
24.06.260 and 2000 c 167 s 12 are each amended to read as follows:
A corporation may dissolve and wind up its affairs in the following manner:
(1) The board of directors shall adopt a resolution recommending that the corporation be dissolved, and directing that the question of such dissolution be submitted to a vote at a meeting of members and shareholders which may be either an annual or a special meeting.
(2) Written or printed notice or, if specifically permitted by the articles of incorporation or bylaws of the corporation, notice by electronic transmission, stating that the purpose or one of the purposes of such meeting is to consider the advisability of dissolving the corporation shall be given to each member and shareholder within the time and in the manner provided in this chapter for the giving of notice of meetings of members and shareholders.
(3) A resolution to dissolve the corporation shall be adopted upon receiving at least two-thirds of the votes which members and shareholders present in person or by mail or by electronic transmission at such meeting or represented by proxy are entitled to cast.
Upon the adoption of such resolution by the members and shareholders, the corporation shall cease to conduct its affairs and, except insofar as may be necessary for the winding up thereof, shall immediately cause a notice of the proposed dissolution to be mailed to each known creditor of the corporation and to the department of ((
revenue))
taxation, and shall proceed to collect its assets and to apply and distribute them as provided in RCW
24.06.265.
Sec. 54. RCW
26.23.065 and 2018 c 150 s 201 are each amended to read as follows:
(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Electronic funds transfer" means any transfer of funds, other than a transaction originated or accomplished by conventional check, drafts, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit a checking or other deposit account. "Electronic funds transfer" includes payments made:
(i) By electronic check (echeck); and
(ii) By any means made available through the division of child support's web-based payment services.
(b) "Income withholding order" means an order to withhold income, order to withhold and deliver, or notice of payroll deduction issued under this chapter or chapter
26.10, 26.18, 74.20, or
74.20A RCW.
(c) "Payroll processor" means a person, entity, agent, or company which provides payroll services to an employer or other business such as calculating paychecks and providing electronic funds transfer services for payments to employees and other entities.
(2) Except as provided in subsection (4) of this section, an employer or other business that has received an income withholding order from the department of social and health services requiring payment to the Washington state support registry must remit payments through electronic funds transfer when the following conditions apply:
(a) The income withholding order applies to a person who is either an employee or contractor of the business, and the employer or business has:
(i) Ten or more employees; or
(ii) Ten or more contractors;
(b) The employer or business has received an income withholding order for more than one employee or contractor, even if the employer or business has fewer than ten employees or contractors, but has received an income withholding order for more than one employee or contractor;
(c) The employer or business uses a payroll processor to handle its payroll, payment, and tax processes and the payroll processor has the capacity to transmit payments through electronic funds transfer; or
(d) The employer or business is required by the department of ((
revenue))
taxation to file and pay taxes electronically under RCW
82.32.080.
(3) All electronic funds transfer payments must identify the person from whom the payment was withheld, the amount of the payment, the person's identifying number assigned by the division of child support, or the division of child support case number to which the payment is to be applied. If a business, employer, or payroll processor required to remit payments by electronic funds transfer under this section fails to comply with this requirement, the division of child support may issue a notice of noncompliance pursuant to RCW
74.20A.350.
(4) The department may waive the requirement to remit payments electronically for a business, employer, or payroll processor that is unable to comply despite good faith efforts or due to circumstances beyond that entity's reasonable control. Grounds for approving a waiver include, but are not limited to, circumstances in which:
(a) The business, employer, or payroll processor does not have a computer that meets the minimum standards necessary for electronic remittance;
(b) Additional time is needed to program the entity's computer;
(c) The business, employer, or payroll processor does not currently file data electronically with any business or government agency;
(d) Compliance conflicts with the entity's business procedures;
(e) Compliance would cause a financial hardship.
(5) The department has the discretion to terminate a waiver granted under subsection (4) of this section if:
(a) The business or employer has received at least one income withholding order for a person or employee and has failed to withhold or failed to withhold within the time provided in the order at least twice;
(b) The business, employer, or payroll processor has submitted at least one dishonored check; or
(c) The business, employer, or payroll processor continues to incorrectly identify withholdings or makes other errors that affect proper distribution of the support, despite contact and information from the department on how to correct the error.
(6) The department of social and health services has rule-making authority to enact rules in compliance with this section, including, but not limited to:
(a) The necessary conditions required for a business, employer, or payroll processor to electronically remit child support payments to the Washington state support registry;
(b) Options for electronic funds transfers and the process by which one must comply in order to establish such payment arrangements;
(c) Which types of payment meet the definition of electronic funds transfer; and
(d) Reasons for exemption from the requirement to remit funds by electronic funds transfer.
Sec. 55. RCW
28A.150.400 and 1990 c 33 s 117 are each amended to read as follows:
State and county funds which may become due and apportionable to school districts shall be apportioned in such a manner that any apportionment factors used shall utilize data and statistics derived in the school year that such funds are paid: PROVIDED, That the superintendent of public instruction may make necessary administrative provision for the use of estimates, and corresponding adjustments to the extent necessary: PROVIDED FURTHER, That as to those revenues used in determining the amount of state funds to be apportioned to school districts pursuant to RCW
28A.150.250, any apportionment factors shall utilize data and statistics derived in an annual period established pursuant to rules and regulations promulgated by the superintendent of public instruction in cooperation with the department of ((
revenue))
taxation.
Sec. 56. RCW
28A.150.412 and 2018 c 266 s 203 are each amended to read as follows:
(1) Beginning with the 2023 regular legislative session, and every four years thereafter, the legislature shall review and rebase state basic education compensation allocations compared to school district compensation data, regionalization factors, what inflationary measure is the most representative of actual market experience for school districts, and other economic information. The legislature shall revise the minimum allocations, regionalization factors, and inflationary measure if necessary to ensure that state basic education allocations continue to provide market-rate salaries and that regionalization adjustments reflect actual economic differences between school districts.
(2)(a) For school districts with single-family residential values above the statewide median residential value, regionalization factors for school years 2018-19 through school year 2022-23 are as follows:
(i) For school districts in tercile 1, state salary allocations for school district employees are regionalized by six percent;
(ii) For school districts in tercile 2, state salary allocations for school district employees are regionalized by twelve percent; and
(iii) For school districts in tercile 3, state salary allocations for school district employees are regionalized by eighteen percent.
(b) In addition to the regionalization factors specified in (a) of this subsection, school districts located west of the crest of the Cascade mountains and sharing a boundary with any school district with a regionalization factor more than one tercile higher, are regionalized by six additional percentage points.
(c) In addition to the regionalization factors specified in this subsection, for school districts that have certificated instructional staff median years of experience that exceed the statewide average certificated instructional staff years of experience and a ratio of certificated instructional staff advanced degrees to bachelor degrees above the statewide ratio, an experience factor of four percentage points is added to the regionalization factor, beginning in the 2019-20 school year.
(d) Additional school district adjustments are identified in the omnibus appropriations act, and these adjustments are partially reduced or eliminated by the 2022-23 school year as follows:
(i) Adjustments that increase the regionalization factor to a value that is greater than the tercile 3 regionalization factor must be reduced by two percentage points each school year beginning with school year 2020-21, through 2022-23.
(ii) Adjustments that increase the regionalization factor to a value that is less than or equal to the tercile 3 regionalization factor must be reduced by one percentage point each school year beginning with school year 2020-21, through 2022-23.
(3) To aid the legislature in reviewing and rebasing regionalization factors, the department of ((revenue))taxation shall, by November 1, 2022, and by November 1st every four years thereafter, determine the median single-family residential value of each school district as well as the median value of proximate districts within fifteen miles of the boundary of the school district for which the median residential value is being calculated.
(4) No district may receive less state funding for the minimum state salary allocation as compared to its prior school year salary allocation as a result of adjustments that reflect updated regionalized salaries.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Median residential value of each school district" means the median value of all single-family residential parcels included within a school district and any other school district that is proximate to the school district.
(b) "Proximate to the school district" means within fifteen miles of the boundary of the school district for which the median residential value is being calculated.
(c) "School district employees" means state-funded certificated instructional staff, certificated administrative staff, and classified staff.
(d) "School districts in tercile 1" means school districts with median single-family residential values in the first tercile of districts with single-family residential values above the statewide median residential value.
(e) "School districts in tercile 2" means school districts with median single-family residential values in the second tercile of districts with single-family residential values above the statewide median residential value.
(f) "School districts in tercile 3" means school districts with median single-family residential values in the third tercile of districts with single-family residential values above the statewide median residential value.
(g) "Statewide median residential value" means the median value of single-family residential parcels located within all school districts, reduced by five percent.
Sec. 57. RCW
28B.145.040 and 2018 c 209 s 9 and 2018 c 114 s 5 are each reenacted and amended to read as follows:
(1) The opportunity scholarship program is established.
(2) The purpose of this scholarship program is to provide scholarships that will help low and middle-income Washington residents earn professional-technical certificates, professional-technical degrees, or baccalaureate degrees in high employer demand and other programs of study and advanced degrees in health professions needed in service obligation areas, and encourage them to remain in the state to work. The program must be designed for students starting professional-technical certificate or degree programs, students starting at two-year institutions of higher education and intending to transfer to four-year institutions of higher education, students starting at four-year institutions of higher education, and students enrolled in an eligible advanced degree program.
(3) The opportunity scholarship board shall determine which programs of study, including but not limited to high employer demand programs, are eligible for purposes of the opportunity scholarship. For eligible advanced degree programs, the board shall limit scholarships to eligible students enrolling in programs that lead to credentials in health professions needed in service obligation areas.
(4) The source of funds for the program shall be a combination of private grants and contributions and state matching funds. A state match may be earned under this section for private contributions made on or after June 6, 2011. A state match, up to a maximum of fifty million dollars annually, shall be provided beginning the later of January 1, 2014, or January 1st next following the end of the fiscal year in which collections of state retail sales and use tax, state business and occupation tax, and state public utility tax exceed, by ten percent the amounts collected from these tax resources in the fiscal year that ended June 30, 2008, as determined by the department of ((revenue))taxation.
Sec. 58. RCW
28C.04.420 and 2013 c 103 s 1 are each amended to read as follows:
The college board may, subject to appropriation from the legislature or from funds made available from any other public or private source and pursuant to rules adopted by the college board, and with the advice of the workforce training customer advisory committee established in RCW
28C.04.390, provide job skills grants to educational institutions. The job skills grants shall be used exclusively for programs which are consistent with the job skills program. The college board shall work in collaboration with the workforce training customer advisory committee established in RCW
28C.04.390 to assure that:
(1) The program is within the scope of the job skills program under this chapter and may reasonably be expected to succeed and thereby increase employment within the state;
(2) Provision has been made to use any available alternative funding from local, state, and federal sources;
(3) The job skills grant will only be used to cover the costs associated with the program;
(4) The program will not unnecessarily duplicate existing programs and could not be provided by another educational institution more effectively or efficiently;
(5) The program involves an area of skills training and education for which there is a demonstrable need;
(6) The applicant has made provisions for the use of existing federal and state resources for student financial assistance;
(7) The job skills grant is essential to the success of the program as the resources of the applicant are inadequate to attract the technical assistance and financial support necessary for the program from business and industry;
(8) The program represents a collaborative partnership between business, industry, labor, educational institutions, and other partners, as appropriate;
(9)(a) The commitment of financial support from businesses with an annual gross business income of five hundred thousand dollars or more shall be equal to or greater than the amount of the requested job skills grant;
(b) The commitment of financial support from businesses with an annual gross business income of less than five hundred thousand dollars shall be at least equal to the trainees' salaries and benefits while in training;
(c) The annual gross business income shall be the income reported to the department of ((revenue))taxation for the previous fiscal year;
(10) The job skills program gives priority to applications:
(a) Proposing training that provides college credit or leads to a recognized industry credential;
(b) From firms in strategic industry clusters as identified by the state or local areas;
(c) Proposing coordination with other cluster-based programs or initiatives including, but not limited to, industry skill panels, centers of excellence, innovation partnership zones, state-supported cluster growth grants, and local cluster-based economic development initiatives;
(d) From consortia of colleges or consortia of employers; and
(e) Proposing increased capacity for educational institutions that can be made available to industry and students beyond the grant recipients;
(11) Binding commitments have been made to the college board by the applicant for adequate reporting of information and data regarding the program to the college board, particularly information concerning the recruitment and employment of trainees and students, and including a requirement for an annual or other periodic audit of the books of the applicant directly related to the program, and for such control on the part of the college board as it considers prudent over the management of the program, so as to protect the use of public funds, including, in the discretion of the college board and without limitation, right of access to financial and other records of the applicant directly related to the programs; and
(12) A provision has been made by the applicant to work, in cooperation with the employment security department, to identify and screen potential trainees, and that provision has been made by the applicant for the participation as trainees of low-income persons including temporary assistance for needy families recipients, dislocated workers, and persons from minority and economically disadvantaged groups to participate in the program.
Beginning January 1, 2014, and every year thereafter, the college board shall provide the legislature and the governor with a report describing the activities and outcomes of the state job skills program.
Sec. 59. RCW
30A.22.200 and 1988 c 29 s 9 are each amended to read as follows:
In each case where it is provided in this chapter that payment may be made to the personal representative of the estate of a deceased depositor or trust or P.O.D. account beneficiary, financial institutions may make payment of the funds on deposit in a deceased depositor's or beneficiary's account to the personal representative of the decedent's estate appointed under the laws of any other state or territory or country after:
(1) At least sixty days have elapsed since the date of the deceased depositor's death; and
(2) Upon receipt of the following:
(a) Proof of death of the deceased depositor or beneficiary;
(b) Proof of the appointment and continuing authority of the personal representative requesting payment;
(c) The personal representative's, or its agent's, affidavit to the effect that to the best of his or her knowledge no personal representative has been or will be appointed under the laws of this state; and
(d) Receipt of either an estate tax release from the department of ((revenue))taxation or the personal representative's, or its agent's, affidavit that the estate is not subject to Washington estate tax. However, if a personal representative of the deceased depositor's or beneficiary's estate is appointed and qualified as such under the laws of this state, and delivers proof of the appointment and qualification to the office or branch of the financial institution in which the deposit is maintained prior to the transmissions of the sums on deposit to the foreign personal representative, then the funds shall be paid to the personal representative of the deceased depositor's or beneficiary's estate who has been appointed and qualified in this state.
(3) The financial institution paying, delivering, transferring, or issuing funds on deposit in a deceased depositor's or beneficiary's account in accordance with the provisions of this section is discharged and released to the same extent as if such person has dealt with a personal representative of the decedent, unless at the time of such payment, delivery, transfer, or issuance such institution had actual knowledge of the falsity of any statement or affidavit required to be provided under this section. Such institution is not required to see to the application of funds, or to inquire into the truth of any matter specified in any statement or affidavit required to be provided under this section.
Sec. 60. RCW
34.05.010 and 2014 c 97 s 101 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Adjudicative proceeding" means a proceeding before an agency in which an opportunity for hearing before that agency is required by statute or constitutional right before or after the entry of an order by the agency. Adjudicative proceedings also include all cases of licensing and rate making in which an application for a license or rate change is denied except as limited by RCW
66.08.150, or a license is revoked, suspended, or modified, or in which the granting of an application is contested by a person having standing to contest under the law.
(2) "Agency" means any state board, commission, department, institution of higher education, or officer, authorized by law to make rules or to conduct adjudicative proceedings, except those in the legislative or judicial branches, the governor, or the attorney general except to the extent otherwise required by law and any local governmental entity that may request the appointment of an administrative law judge under chapter
42.41 RCW.
(3) "Agency action" means licensing, the implementation or enforcement of a statute, the adoption or application of an agency rule or order, the imposition of sanctions, or the granting or withholding of benefits.
Agency action does not include an agency decision regarding (a) contracting or procurement of goods, services, public works, and the purchase, lease, or acquisition by any other means, including eminent domain, of real estate, as well as all activities necessarily related to those functions, or (b) determinations as to the sufficiency of a showing of interest filed in support of a representation petition, or mediation or conciliation of labor disputes or arbitration of labor disputes under a collective bargaining law or similar statute, or (c) any sale, lease, contract, or other proprietary decision in the management of public lands or real property interests, or (d) the granting of a license, franchise, or permission for the use of trademarks, symbols, and similar property owned or controlled by the agency.
(4) "Agency head" means the individual or body of individuals in whom the ultimate legal authority of the agency is vested by any provision of law. If the agency head is a body of individuals, a majority of those individuals constitutes the agency head.
(5) "Entry" of an order means the signing of the order by all persons who are to sign the order, as an official act indicating that the order is to be effective.
(6) "Filing" of a document that is required to be filed with an agency means delivery of the document to a place designated by the agency by rule for receipt of official documents, or in the absence of such designation, at the office of the agency head.
(7) "Institutions of higher education" are the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, the various community colleges, and the governing boards of each of the above, and the various colleges, divisions, departments, or offices authorized by the governing board of the institution involved to act for the institution, all of which are sometimes referred to in this chapter as "institutions."
(8) "Interpretive statement" means a written expression of the opinion of an agency, entitled an interpretive statement by the agency head or its designee, as to the meaning of a statute or other provision of law, of a court decision, or of an agency order.
(9)(a) "License" means a franchise, permit, certification, approval, registration, charter, or similar form of authorization required by law, but does not include (i) a license required solely for revenue purposes, or (ii) a certification of an exclusive bargaining representative, or similar status, under a collective bargaining law or similar statute, or (iii) a license, franchise, or permission for use of trademarks, symbols, and similar property owned or controlled by the agency.
(b) "Licensing" includes the agency process respecting the issuance, denial, revocation, suspension, or modification of a license.
(10) "Mail" or "send," for purposes of any notice relating to rule making or policy or interpretive statements, means regular mail or electronic distribution, as provided in RCW
34.05.260. "Electronic distribution" or "electronically" means distribution by electronic mail or facsimile mail.
(11)(a) "Order," without further qualification, means a written statement of particular applicability that finally determines the legal rights, duties, privileges, immunities, or other legal interests of a specific person or persons.
(b) "Order of adoption" means the official written statement by which an agency adopts, amends, or repeals a rule.
(12) "Party to agency proceedings," or "party" in a context so indicating, means:
(a) A person to whom the agency action is specifically directed; or
(b) A person named as a party to the agency proceeding or allowed to intervene or participate as a party in the agency proceeding.
(13) "Party to judicial review or civil enforcement proceedings," or "party" in a context so indicating, means:
(a) A person who files a petition for a judicial review or civil enforcement proceeding; or
(b) A person named as a party in a judicial review or civil enforcement proceeding, or allowed to participate as a party in a judicial review or civil enforcement proceeding.
(14) "Person" means any individual, partnership, corporation, association, governmental subdivision or unit thereof, or public or private organization or entity of any character, and includes another agency.
(15) "Policy statement" means a written description of the current approach of an agency, entitled a policy statement by the agency head or its designee, to implementation of a statute or other provision of law, of a court decision, or of an agency order, including where appropriate the agency's current practice, procedure, or method of action based upon that approach.
(16) "Rule" means any agency order, directive, or regulation of general applicability (a) the violation of which subjects a person to a penalty or administrative sanction; (b) which establishes, alters, or revokes any procedure, practice, or requirement relating to agency hearings; (c) which establishes, alters, or revokes any qualification or requirement relating to the enjoyment of benefits or privileges conferred by law; (d) which establishes, alters, or revokes any qualifications or standards for the issuance, suspension, or revocation of licenses to pursue any commercial activity, trade, or profession; or (e) which establishes, alters, or revokes any mandatory standards for any product or material which must be met before distribution or sale. The term includes the amendment or repeal of a prior rule, but does not include (i) statements concerning only the internal management of an agency and not affecting private rights or procedures available to the public, (ii) declaratory rulings issued pursuant to RCW
34.05.240, (iii) traffic restrictions for motor vehicles, bicyclists, and pedestrians established by the secretary of transportation or his or her designee where notice of such restrictions is given by official traffic control devices, (iv) rules of institutions of higher education involving standards of admission, academic advancement, academic credit, graduation and the granting of degrees, employment relationships, or fiscal processes, or (v) the determination and publication of updated nexus thresholds by the department of ((
revenue))
taxation in accordance with RCW
82.04.067.
(17) "Rules review committee" or "committee" means the joint administrative rules review committee created pursuant to RCW
34.05.610 for the purpose of selectively reviewing existing and proposed rules of state agencies.
(18) "Rule making" means the process for formulation and adoption of a rule.
(19) "Service," except as otherwise provided in this chapter, means posting in the United States mail, properly addressed, postage prepaid, or personal or electronic service. Service by mail is complete upon deposit in the United States mail. Agencies may, by rule, authorize service by electronic transmission, or by commercial parcel delivery company.
Sec. 61. RCW
34.05.030 and 2015 3rd sp.s. c 1 s 309 are each amended to read as follows:
(1) This chapter shall not apply to:
(a) The state militia, or
(b) The board of clemency and pardons, or
(c) The department of corrections or the indeterminate sentencing review board with respect to persons who are in their custody or are subject to the jurisdiction of those agencies.
(a) To adjudicative proceedings of the board of industrial insurance appeals except as provided in RCW
7.68.110 and
51.48.131;
(b) Except for actions pursuant to chapter
46.29 RCW, to the denial, suspension, or revocation of a driver's license by the department of licensing;
(c) To the department of labor and industries where another statute expressly provides for review of adjudicative proceedings of a department action, order, decision, or award before the board of industrial insurance appeals;
(d) To actions of the Washington personnel resources board, the director of financial management, and the department of enterprise services when carrying out their duties under chapter
41.06 RCW;
(e) To adjustments by the department of ((
revenue))
taxation of the amount of the surcharge imposed under RCW
82.04.261; or
(f) To the extent they are inconsistent with any provisions of chapter
43.43 RCW.
(3) Unless a party makes an election for a formal hearing pursuant to RCW
82.03.140 or
82.03.190, RCW
34.05.410 through
34.05.598 do not apply to a review hearing conducted by the board of tax appeals.
(4) The rule-making provisions of this chapter do not apply to:
(a) Reimbursement unit values, fee schedules, arithmetic conversion factors, and similar arithmetic factors used to determine payment rates that apply to goods and services purchased under contract for clients eligible under chapter
74.09 RCW; and
(b) Adjustments by the department of ((
revenue))
taxation of the amount of the surcharge imposed under RCW
82.04.261.
(5) All other agencies, whether or not formerly specifically excluded from the provisions of all or any part of the administrative procedure act, shall be subject to the entire act.
Sec. 62. RCW
34.05.110 and 2011 c 18 s 1 are each amended to read as follows:
(1) Agencies must provide to a small business a copy of the state law or agency rule that a small business is violating and a period of at least seven calendar days to correct the violation before the agency may impose any fines, civil penalties, or administrative sanctions for a violation of a state law or agency rule by a small business. If no correction is possible or if an agency is acting in response to a complaint made by a third party and the third party would be disadvantaged by the application of this subsection, the requirements in this subsection do not apply.
(2) Except as provided in subsection (4) of this section, agencies shall waive any fines, civil penalties, or administrative sanctions for first-time paperwork violations by a small business.
(3) When an agency waives a fine, penalty, or sanction under this section, when possible it shall require the small business to correct the violation within a reasonable period of time, in a manner specified by the agency. If correction is impossible, no correction may be required and failure to correct is not grounds for reinstatement of fines, penalties, or sanctions under subsection (5)(b) of this section.
(4) Exceptions to requirements of subsection (1) of this section and the waiver requirement in subsection (2) of this section may be made for any of the following reasons:
(a) The agency head determines that the effect of the violation or waiver presents a direct danger to the public health, results in a loss of income or benefits to an employee, poses a potentially significant threat to human health or the environment, or causes serious harm to the public interest;
(b) The violation involves a knowing or willful violation;
(c) The violation is of a requirement concerning the assessment, collection, or administration of any tax, tax program, debt, revenue, receipt, a regulated entity's financial filings, or insurance rate or form filing;
(d) The requirements of this section are in conflict with federal law or program requirements, federal requirements that are a prescribed condition to the allocation of federal funds to the state, or the requirements for eligibility of employers in this state for federal unemployment tax credits, as determined by the agency head;
(e) The small business committing the violation previously violated a substantially similar requirement; or
(f) The owner or operator of the small business committing the violation owns or operates, or owned or operated a different small business which previously violated a substantially similar requirement.
(5)(a) Nothing in this section prohibits an agency from waiving fines, civil penalties, or administrative sanctions incurred by a small business for a paperwork violation that is not a first-time offense.
(b) Any fine, civil penalty, or administrative sanction that is waived under this section may be reinstated and imposed in addition to any additional fines, penalties, or administrative sanctions associated with a subsequent violation for noncompliance with a substantially similar paperwork requirement, or failure to correct the previous violation as required by the agency under subsection (3) of this section.
(6) Nothing in this section may be construed to diminish the responsibility for any citizen or business to apply for and obtain a permit, license, or authorizing document that is required to engage in a regulated activity, or otherwise comply with state or federal law.
(7) Nothing in this section shall be construed to apply to small businesses required to provide accurate and complete information and documentation in relation to any claim for payment of state or federal funds or who are licensed or certified to provide care and services to vulnerable adults or children.
(8) Nothing in this section affects the attorney general's authority to impose fines, civil penalties, or administrative sanctions as otherwise authorized by law; nor shall this section affect the attorney general's authority to enforce the consumer protection act, chapter
19.86 RCW.
(9) As used in this section:
(a) "Small business" means a business with two hundred fifty or fewer employees or a gross revenue of less than seven million dollars annually as reported on its most recent federal income tax return or its most recent return filed with the department of ((revenue))taxation.
(b) "Paperwork violation" means the violation of any statutory or regulatory requirement that mandates the collection of information by an agency, or the collection, posting, or retention of information by a small business. This includes but is not limited to requirements in the Revised Code of Washington, the Washington Administrative Code, the Washington State Register, or any other agency directive.
(c) "First-time paperwork violation" means the first instance of a particular or substantially similar paperwork violation.
Sec. 63. RCW
34.05.328 and 2018 c 207 s 8 are each amended to read as follows:
(1) Before adopting a rule described in subsection (5) of this section, an agency must:
(a) Clearly state in detail the general goals and specific objectives of the statute that the rule implements;
(b) Determine that the rule is needed to achieve the general goals and specific objectives stated under (a) of this subsection, and analyze alternatives to rule making and the consequences of not adopting the rule;
(c) Provide notification in the notice of proposed rule making under RCW
34.05.320 that a preliminary cost-benefit analysis is available. The preliminary cost-benefit analysis must fulfill the requirements of the cost-benefit analysis under (d) of this subsection. If the agency files a supplemental notice under RCW
34.05.340, the supplemental notice must include notification that a revised preliminary cost-benefit analysis is available. A final cost-benefit analysis must be available when the rule is adopted under RCW
34.05.360;
(d) Determine that the probable benefits of the rule are greater than its probable costs, taking into account both the qualitative and quantitative benefits and costs and the specific directives of the statute being implemented;
(e) Determine, after considering alternative versions of the rule and the analysis required under (b), (c), and (d) of this subsection, that the rule being adopted is the least burdensome alternative for those required to comply with it that will achieve the general goals and specific objectives stated under (a) of this subsection;
(f) Determine that the rule does not require those to whom it applies to take an action that violates requirements of another federal or state law;
(g) Determine that the rule does not impose more stringent performance requirements on private entities than on public entities unless required to do so by federal or state law;
(h) Determine if the rule differs from any federal regulation or statute applicable to the same activity or subject matter and, if so, determine that the difference is justified by the following:
(i) A state statute that explicitly allows the agency to differ from federal standards; or
(ii) Substantial evidence that the difference is necessary to achieve the general goals and specific objectives stated under (a) of this subsection; and
(i) Coordinate the rule, to the maximum extent practicable, with other federal, state, and local laws applicable to the same activity or subject matter.
(2) In making its determinations pursuant to subsection (1)(b) through (h) of this section, the agency must place in the rule-making file documentation of sufficient quantity and quality so as to persuade a reasonable person that the determinations are justified.
(3) Before adopting rules described in subsection (5) of this section, an agency must place in the rule-making file a rule implementation plan for rules filed under each adopting order. The plan must describe how the agency intends to:
(a) Implement and enforce the rule, including a description of the resources the agency intends to use;
(b) Inform and educate affected persons about the rule;
(c) Promote and assist voluntary compliance; and
(d) Evaluate whether the rule achieves the purpose for which it was adopted, including, to the maximum extent practicable, the use of interim milestones to assess progress and the use of objectively measurable outcomes.
(4) After adopting a rule described in subsection (5) of this section regulating the same activity or subject matter as another provision of federal or state law, an agency must do all of the following:
(a) Coordinate implementation and enforcement of the rule with the other federal and state entities regulating the same activity or subject matter by making every effort to do one or more of the following:
(i) Deferring to the other entity;
(ii) Designating a lead agency; or
(iii) Entering into an agreement with the other entities specifying how the agency and entities will coordinate implementation and enforcement.
If the agency is unable to comply with this subsection (4)(a), the agency must report to the legislature pursuant to (b) of this subsection;
(b) Report to the joint administrative rules review committee:
(i) The existence of any overlap or duplication of other federal or state laws, any differences from federal law, and any known overlap, duplication, or conflict with local laws; and
(ii) Make recommendations for any legislation that may be necessary to eliminate or mitigate any adverse effects of such overlap, duplication, or difference.
(5)(a) Except as provided in (b) of this subsection, this section applies to:
(i) Significant legislative rules of the departments of ecology, labor and industries, health, revenue, social and health services, and natural resources, the employment security department, the forest practices board, the office of the insurance commissioner, the state building code council, and to the legislative rules of the department of fish and wildlife implementing chapter
77.55 RCW; and
(ii) Any rule of any agency, if this section is voluntarily made applicable to the rule by the agency, or is made applicable to the rule by a majority vote of the joint administrative rules review committee within forty-five days of receiving the notice of proposed rule making under RCW
34.05.320.
(b) This section does not apply to:
(i) Emergency rules adopted under RCW
34.05.350;
(ii) Rules relating only to internal governmental operations that are not subject to violation by a nongovernment party;
(iii) Rules adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of statewide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule;
(iv) Rules that only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect;
(v) Rules the content of which is explicitly and specifically dictated by statute;
(vi) Rules that set or adjust fees under the authority of RCW
19.02.075 or that set or adjust fees or rates pursuant to legislative standards, including fees set or adjusted under the authority of RCW
19.80.045;
(vii) Rules of the department of social and health services relating only to client medical or financial eligibility and rules concerning liability for care of dependents; or
(viii) Rules of the department of ((
revenue))
taxation that adopt a uniform expiration date for reseller permits as authorized in RCW
82.32.780 and
82.32.783.
(c) For purposes of this subsection:
(i) A "procedural rule" is a rule that adopts, amends, or repeals (A) any procedure, practice, or requirement relating to any agency hearings; (B) any filing or related process requirement for making application to an agency for a license or permit; or (C) any policy statement pertaining to the consistent internal operations of an agency.
(ii) An "interpretive rule" is a rule, the violation of which does not subject a person to a penalty or sanction, that sets forth the agency's interpretation of statutory provisions it administers.
(iii) A "significant legislative rule" is a rule other than a procedural or interpretive rule that (A) adopts substantive provisions of law pursuant to delegated legislative authority, the violation of which subjects a violator of such rule to a penalty or sanction; (B) establishes, alters, or revokes any qualification or standard for the issuance, suspension, or revocation of a license or permit; or (C) adopts a new, or makes significant amendments to, a policy or regulatory program.
(d) In the notice of proposed rule making under RCW
34.05.320, an agency must state whether this section applies to the proposed rule pursuant to (a)(i) of this subsection, or if the agency will apply this section voluntarily.
(6) By January 31, 1996, and by January 31st of each even-numbered year thereafter, the office of regulatory assistance, after consulting with state agencies, counties, and cities, and business, labor, and environmental organizations, must report to the governor and the legislature regarding the effects of this section on the regulatory system in this state. The report must document:
(a) The rules proposed to which this section applied and to the extent possible, how compliance with this section affected the substance of the rule, if any, that the agency ultimately adopted;
(b) The costs incurred by state agencies in complying with this section;
(c) Any legal action maintained based upon the alleged failure of any agency to comply with this section, the costs to the state of such action, and the result;
(d) The extent to which this section has adversely affected the capacity of agencies to fulfill their legislatively prescribed mission;
(e) The extent to which this section has improved the acceptability of state rules to those regulated; and
(f) Any other information considered by the office of financial management to be useful in evaluating the effect of this section.
Sec. 64. RCW
34.05.422 and 2012 c 39 s 6 are each amended to read as follows:
(1) Unless otherwise provided by law: (a) Applications for rate changes and uncontested applications for licenses may, in the agency's discretion, be conducted as adjudicative proceedings; (b) applications for licenses that are contested by a person having standing to contest under the law and review of denials of applications for licenses or rate changes must be conducted as adjudicative proceedings; and (c) an agency may not revoke, suspend, or modify a license unless the agency gives notice of an opportunity for an appropriate adjudicative proceeding in accordance with this chapter or other statute.
(2) An agency with authority to grant or deny a professional or occupational license must notify an applicant for a new or renewal license not later than twenty days prior to the date of the examination required for that license of any grounds for denial of the license which are based on specific information disclosed in the application submitted to the agency. The agency must notify the applicant either that the license is denied or that the decision to grant or deny the license will be made at a future date. If the agency fails to give the notification prior to the examination and the applicant is denied licensure, the examination fee must be refunded to the applicant. If the applicant takes the examination, the agency must notify the applicant of the result.
(3) When a licensee has made timely and sufficient application for the renewal of a license or a new license with reference to any activity of a continuing nature, an existing full, temporary, or provisional license does not expire until the application has been finally determined by the agency, and, in case the application is denied or the terms of the new license limited, until the last day for seeking review of the agency order or a later date fixed by order of the reviewing court.
(4) If the agency finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings must be promptly instituted and determined.
(5) This section does not apply to requests made by the department of ((
revenue))
taxation, under the authority of RCW
82.08.155, to the liquor ((
control))
and cannabis board to suspend a person's spirits license and to refuse to renew any spirits license held by the person and to issue any new spirits license to the person.
Sec. 65. RCW
35.21.392 and 2013 c 144 s 36 are each amended to read as follows:
A city that issues a business license to a person required to be registered under chapter
18.27 RCW may verify that the person is registered under chapter
18.27 RCW and report violations to the department of labor and industries. The department of ((
revenue))
taxation must conduct the verification for cities that participate in the business licensing system.
Sec. 66. RCW
35.42.090 and 1975 1st ex.s. c 278 s 22 are each amended to read as follows:
All leases executed pursuant to RCW
35.42.010 through
35.42.090 shall be exempt from the tax imposed by chapter 19, Laws of 1951 second extraordinary session, as amended, and chapter
82.45 RCW; section 5, chapter 389, Laws of 1955, and RCW
82.04.040; and section 9, chapter 178, Laws of 1941, and RCW
82.08.090, and by rules and regulations of the department of ((
revenue))
taxation issued pursuant thereto.
Sec. 67. RCW
35.90.010 and 2017 c 209 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Business licensing service," "business licensing system," and "business license" have the same meaning as in RCW
19.02.020.
(2) "City" means a city, town, or code city.
(3) "Department" means the department of ((revenue))taxation.
(4) "General business license" means a license, not including a regulatory license or a temporary license, that a city requires all or most businesses to obtain to conduct business within that city.
(5) "Partner" means the relationship between a city and the department under which general business licenses are issued and renewed through the business licensing service in accordance with chapter
19.02 RCW.
(6) "Regulatory business license" means a license, other than a general business license, required for certain types of businesses that a city has determined warrants additional regulation, such as taxicab or other for hire vehicle operators, adult entertainment businesses, amusement device operators, massage parlors, debt collectors, door-to-door sales persons, trade-show operators, and home-based businesses.
Sec. 68. RCW
35.100.050 and 2002 c 79 s 5 are each amended to read as follows:
A city or town shall determine at its own cost the amount of local sales and use tax increment revenue that may be generated in the downtown and neighborhood commercial districts it designates. The department of ((revenue))taxation may, at its discretion, provide advice or other assistance to cities and towns to assist in determining local sales and use tax increment revenue.
Sec. 69. RCW
35.101.052 and 2009 c 442 s 2 are each amended to read as follows:
(1) A legislative authority shall contract, prior to the effective date of an ordinance imposing a lodging charge under RCW
35.101.050, for the administration and collection of the charge by the state department of ((
revenue))
taxation. The department may deduct a percentage amount, as provided by contract, for the administration and collection expenses incurred by the department.
(2) This section only applies to a legislative authority consisting of a county with a population of one million or more or a city or town within such a county.
Sec. 70. RCW
35.101.090 and 2003 c 148 s 9 are each amended to read as follows:
(1) The charge authorized by this chapter shall be administered by the department of ((
revenue))
taxation and shall be collected by lodging businesses from those persons who are taxable by the state under chapter
82.08 RCW. Chapter
82.32 RCW applies to the charge imposed under this chapter.
(2) At least seventy-five days prior to the effective date of the resolution or ordinance imposing the charge, the legislative authority shall contract for the administration and collection by the department of ((revenue))taxation.
(3) The charges authorized by this chapter that are collected by the department of ((
revenue))
taxation shall be deposited by the department in the local tourism promotion account created in RCW
35.101.100.
Sec. 71. RCW
35.102.040 and 2010 c 271 s 706 are each amended to read as follows:
(1)(a) The cities, working through the association of Washington cities, shall form a model ordinance development committee made up of a representative sampling of cities that as of July 27, 2003, impose a business and occupation tax. This committee shall work through the association of Washington cities to adopt a model ordinance on municipal gross receipts business and occupation tax. The model ordinance and subsequent amendments shall be adopted using a process that includes opportunity for substantial input from business stakeholders and other members of the public. Input shall be solicited from statewide business associations and from local chambers of commerce and downtown business associations in cities that levy a business and occupation tax.
(b) The department of commerce shall contract to post the model ordinance on an internet web site and to make paper copies available for inspection upon request. The department of ((
revenue))
taxation and the department of licensing shall post copies of or links to the model ordinance on their internet web sites. Additionally, a city that imposes a business and occupation tax must make copies of its ordinance available for inspection and copying as provided in chapter
42.56 RCW.
(c) The definitions and tax classifications in the model ordinance may not be amended more frequently than once every four years, however the model ordinance may be amended at any time to comply with changes in state law. Any amendment to a mandatory provision of the model ordinance must be adopted with the same effective date by all cities.
(2) A city that imposes a business and occupation tax must adopt the mandatory provisions of the model ordinance. The following provisions are mandatory:
(a) A system of credits that meets the requirements of RCW
35.102.060 and a form for such use;
(b) A uniform, minimum small business tax threshold of at least the equivalent of twenty thousand dollars in gross income annually. A city may elect to deviate from this requirement by creating a higher threshold or exemption but it shall not deviate lower than the level required in this subsection. If a city has a small business threshold or exemption in excess of that provided in this subsection as of January 1, 2003, and chooses to deviate below the threshold or exemption level that was in place as of January 1, 2003, the city must notify all businesses licensed to do business within the city at least one hundred twenty days prior to the potential implementation of a lower threshold or exemption amount;
(c) Tax reporting frequencies that meet the requirements of RCW
35.102.070;
(e) Claim periods that meet the requirements of RCW
35.102.100;
(f) Refund provisions that meet the requirements of RCW
35.102.110; and
(g) Definitions, which at a minimum, must include the definitions enumerated in RCW
35.102.030 and
35.102.120. The definitions in chapter
82.04 RCW shall be used as the baseline for all definitions in the model ordinance, and any deviation in the model ordinance from these definitions must be described by a comment in the model ordinance.
(3) Except for the deduction required by RCW
35.102.160 and the system of credits developed to address multiple taxation under subsection (2)(a) of this section, a city may adopt its own provisions for tax exemptions, tax credits, and tax deductions.
(4) Any city that adopts an ordinance that deviates from the nonmandatory provisions of the model ordinance shall make a description of such differences available to the public, in written and electronic form.
Sec. 72. RCW
35.102.1301 and 2003 c 79 s 15 are each amended to read as follows:
(1) The department of ((
revenue))
taxation shall conduct a study of the net fiscal impacts of chapter 79, Laws of 2003, with particular emphasis on the revenue impacts of the apportionment and allocation method contained in RCW
35.102.130 and any revenue impact resulting from the increased uniformity and consistency provided through the model ordinance. In conducting the study, the department shall use, and regularly consult with, a committee composed of an equal representation from interested business representatives and from a representative sampling of cities imposing business and occupation taxes. The department shall report the final results of the study to the governor and the fiscal committees of the legislature by November 30, 2005. In addition, the department shall provide progress reports to the governor and the fiscal committees of the legislature on November 30, 2003, and November 30, 2004. As part of its report, the department shall examine and recommend options to address any adverse revenue impacts to local jurisdictions.
(2) For the purposes of this section, "net fiscal impacts" means accounting for the potential of both positive and negative fiscal impacts on local jurisdictions that may result from chapter 79, Laws of 2003.
(3) It is the intent of the legislature through this study to provide accurate fiscal impact analysis and recommended options to alleviate revenue impacts from chapter 79, Laws of 2003 so as to allow local jurisdictions to anticipate and appropriately address any potential adverse revenue impacts from chapter 79, Laws of 2003.
Sec. 73. RCW
35A.21.340 and 2013 c 144 s 37 are each amended to read as follows:
A city that issues a business license to a person required to be registered under chapter
18.27 RCW may verify that the person is registered under chapter
18.27 RCW and report violations to the department of labor and industries. The department of ((
revenue))
taxation must conduct the verification for cities that participate in the business licensing system.
Sec. 74. RCW
36.21.011 and 2011 1st sp.s. c 43 s 470 are each amended to read as follows:
Any assessor who deems it necessary in order to complete the listing and the valuation of the property of the county within the time prescribed by law, (1) may appoint one or more well qualified persons to act as assistants or deputies who shall not engage in the private practice of appraising within the county in which he or she is employed without the written permission of the assessor filed with the auditor; and each such assistant or deputy so appointed shall, under the direction of the assessor, after taking the required oath, perform all the duties enjoined upon, vested in or imposed upon assessors, and (2) may contract with any persons, firms or corporations, who are expert appraisers, to assist in the valuation of property.
To assist each assessor in obtaining adequate and well qualified assistants or deputies, the office of financial management, after consultation with the Washington state association of county assessors, the Washington state association of counties, and the department of ((revenue))taxation, shall establish by July 1, 1967, and shall thereafter maintain, a classification and salary plan for those employees of an assessor who act as appraisers. The plan shall recommend the salary range and employment qualifications for each position encompassed by it, and shall, to the fullest extent practicable, conform to the classification plan, salary schedules and employment qualifications for state employees performing similar appraisal functions.
An assessor who intends to put such plan into effect shall inform the department of ((
revenue))
taxation and the county legislative authority of this intent in writing. The department of ((
revenue))
taxation and the county legislative authority may thereupon each designate a representative, and such representative or representatives as may be designated by the department of ((
revenue))
taxation or the county legislative authority, or both, shall form with the assessor a committee. The committee so formed may, by unanimous vote only, determine the required number of certified appraiser positions and their salaries necessary to enable the assessor to carry out the requirements relating to revaluation of property in chapter
84.41 RCW. The determination of the committee shall be certified to the county legislative authority. The committee may be formed only once in a period of four calendar years.
After such determination, the assessor may provide, in each of the four next succeeding annual budget estimates, for as many positions as are established in such determination. Each county legislative authority to which such a budget estimate is submitted shall allow sufficient funds for such positions. An employee may be appointed to a position covered by the plan only if the employee meets the employment qualifications established by the plan.
Sec. 75. RCW
36.21.015 and 1991 c 218 s 3 are each amended to read as follows:
(1) Any person having the responsibility of valuing real property for purposes of taxation including persons acting as assistants or deputies to a county assessor under RCW
36.21.011 shall have first:
(a) Had at least one year of experience in transactions involving real property, in appraisal of real property, or in assessment of real property, or at least one year of experience in a combination of the three;
(b) Become knowledgeable in repair and remodeling of buildings and improvement of land, and in the significance of locality and area to the value of real property;
(c) Become knowledgeable in the standards for appraising property set forth by the department of ((revenue))taxation; and
(d) Met other minimum requirements specified by department of ((revenue))taxation rule.
(2) The department of ((revenue))taxation shall prepare and administer an examination on subjects related to the valuation of real property. No person shall assess real property for purposes of taxation without having passed said examination or having received an examination waiver from the department of ((revenue))taxation upon showing education or experience determined by the department to be equivalent to passing the examination. A person passing said examination or receiving an examination waiver shall be accredited accordingly by the department of ((revenue))taxation.
(3) The department of ((revenue))taxation may by rule establish continuing education requirements for persons assessing real property for purposes of taxation. The department shall provide accreditation of completion of requirements imposed under this section. No person shall assess real property for purposes of taxation without complying with requirements imposed under this subsection.
(4) To the extent practical, the department of ((
revenue))
taxation shall coordinate accreditation requirements under this section with the requirements for certified real estate appraisers under chapter
18.140 RCW.
(5) The examination requirements of subsection (2) of this section shall not apply to any person who shall have either:
(a) Been certified as a real property appraiser by the department of personnel prior to July 1, 1992; or
(b) Attended and satisfactorily completed the assessor's school operated jointly by the department of ((revenue))taxation and the Washington state assessors association prior to August 9, 1971.
Sec. 76. RCW
36.21.100 and 1991 c 218 s 4 are each amended to read as follows:
Every county assessor shall report to the department of ((revenue))taxation on the property tax levies and related matters within the county annually at a date and in a form prescribed by the department of ((revenue))taxation. The report shall include, but need not be limited to, the results of sales-assessment ratio studies performed by the assessor. The ratio studies shall be based on use classes of real property and shall be performed under a plan approved by the department of ((revenue))taxation.
Sec. 77. RCW
36.35.140 and 2013 c 221 s 3 are each amended to read as follows:
The board of county commissioners of any county may, pending sale of any county property acquired by foreclosure of delinquent taxes or amounts deferred under chapter
84.37 or
84.38 RCW, rent any portion thereof on a tenancy from month to month. From the proceeds of the rentals the board of county commissioners must first pay all expense in management of said property and in repairing, maintaining and insuring the improvements thereon. The balance of said proceeds must first be paid to reimburse the county for the costs of foreclosure and sale as defined in RCW
36.35.110. The remainder of the proceeds, if any, must be paid to the department of ((
revenue))
taxation in the amount of any taxes deferred under chapter
84.37 or
84.38 RCW on the property, including accrued interest, outstanding at the time the county acquired the property by tax deed, and then to the various taxing units interested in the taxes levied against said property in the same proportion as the current tax levies of the taxing units having levies against said property.
Sec. 78. RCW
36.38.020 and 2009 c 549 s 4080 are each amended to read as follows:
In addition to the provisions levying and fixing the amount of tax, the ordinance may contain any or all of the following provisions:
(1) A provision defining the words and terms used therein;
(2) A provision requiring the price (exclusive of the tax to be paid by the person paying for admission) at which every admission ticket or card is sold to be conspicuously and indelibly printed or written on the face or back of that part of the ticket which is to be taken up by the management of the place for which an admission charge is exacted, and making the violation of such provision a misdemeanor punishable by fine of not exceeding one hundred dollars;
(3) Provisions fixing reasonable exemptions from such tax;
(4) Provisions allowing as an offset against the tax, the amount of like taxes levied, fixed, and collected within their jurisdiction by incorporated cities and towns in the county;
(5) A provision requiring persons receiving payments for admissions taxed under said ordinance to collect the amount of the tax from the persons making such payments;
(6) A provision to the effect that the tax imposed by said ordinance shall be deemed to be held in trust by the person required to collect the same until paid to the county treasurer, and making it a misdemeanor for any person receiving payment of the tax and appropriating or converting the same to his or her own use or to any use other than the payment of the tax as provided in said ordinance to the extent that the amount of such tax is not available for payment on the due date for filing returns as provided in said ordinance;
(7) A provision that in case any person required by the ordinance to collect the tax imposed thereby fails to collect the same, or having collected the tax fails to pay the same to the county treasurer in the manner prescribed by the ordinance, whether such failure is the result of such person's own acts or the result of acts or conditions beyond such person's control, such person shall nevertheless be personally liable to the county for the amount of the tax;
(8) Provisions fixing the time when the taxes imposed by the ordinance shall be due and payable to the county treasurer; requiring persons receiving payments for admissions to make periodic returns to the county treasurer on such forms and setting forth such information as the county treasurer may specify; requiring such return to show the amount of tax upon admissions for which such person is liable for specified preceding periods, and requiring such person to sign and transmit the same to the county treasurer together with a remittance for the amount;
(9) A provision requiring taxpayers to file with the county treasurer verified annual returns setting forth such additional information as he or she may deem necessary to determine tax liability correctly;
(10) A provision to the effect that whenever a certificate of registration, if required by the ordinance, is obtained for operating or conducting temporary places of amusement by persons who are not the owners, lessees, or custodians of the building, lot or place where the amusement is to be conducted, or whenever the business is permitted to be conducted without the procurement of a certificate, the tax imposed shall be returned and paid as provided in the ordinance by such owner, lessee, or custodian, unless paid by the person conducting the place of amusement;
(11) A provision requiring the applicant for a temporary certificate of registration, if required by the ordinance, to furnish with the application therefor, the name and address of the owner, lessee, or custodian of the premises upon which the amusement is to be conducted, and requiring the county treasurer to notify such owner, lessee, or custodian of the issuance of any such temporary certificate, and of the joint liability for such tax;
(12) A provision empowering the county treasurer to declare the tax upon temporary or itinerant places of amusement to be immediately due and payable and to collect the same, when he or she believes there is a possibility that the tax imposed under the ordinance will not be otherwise paid;
(13) Any or all of the applicable general administrative provisions contained in RCW
82.32.010 through
82.32.340 and
82.32.380, and the amendments thereto, except that unless otherwise indicated by the context of said sections, in all provisions so incorporated in such ordinance (a) the term "county treasurer" (of the county enacting said ordinance) shall be substituted for each reference made in said sections to the "department," the "department of ((
revenue))
taxation," "any employee of the department," or "director of the department of ((
revenue))
taxation"; (b) the name of the county enacting such ordinance shall be substituted for each reference made in said sections to the "state" or to the "state of Washington"; (c) the term "this ordinance" shall be substituted for each reference made in said sections to "this chapter"; (d) the name of the county enacting said ordinance shall be substituted for each reference made in said sections to "Thurston county"; and (e) the term "board of county commissioners" shall be substituted for each reference made in said sections to the "director of financial management."
Sec. 79. RCW
36.57A.210 and 2003 c 83 s 202 are each amended to read as follows:
(1) A public transportation benefit area may, as part of a passenger-only ferry investment plan, recommend some or all of the following revenue sources as provided in this chapter:
(a) A motor vehicle excise tax, as provided in RCW
82.80.130;
(b) A sales and use tax, as provided in RCW
82.14.440;
(c) Tolls for passengers and packages and, where applicable, parking; and
(d) Charges or licensing fees for advertising, leasing space for services to ferry passengers, and other revenue-generating activities.
(2) Taxes may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the area voting on a single ballot proposition to both approve a passenger-only ferry investment plan and to approve taxes to implement the plan. Revenues from these taxes and fees may be used only to implement the plan and must be used for the benefit of the residents of the benefit area. A district may contract with the state department of ((revenue))taxation or other appropriate entities for administration and collection of any of the taxes or charges authorized in this section.
Sec. 80. RCW
36.57A.224 and 2015 3rd sp.s. c 44 s 314 are each amended to read as follows:
(1) A passenger-only ferry service district may, as part of a passenger-only ferry investment plan, recommend some or all of the following revenue sources as provided in this chapter:
(a) A sales and use tax, as authorized in RCW
82.14.445;
(b) A parking tax, as authorized in RCW
82.80.035;
(c) Tolls for passengers, packages, and, where applicable, parking; and
(d) Charges or licensing fees for advertising, leasing space for services to ferry passengers, and other revenue generating activities.
(2) Taxes may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the passenger-only ferry service district voting on a single ballot proposition to both approve a passenger-only ferry investment plan and to approve taxes to implement the plan. Revenues from these taxes and fees may be used only to implement the plan and must be used for the benefit of the residents of the passenger-only ferry service district. A district must contract with the department of ((
revenue))
taxation for the administration and collection of a sales and use tax as authorized in RCW
82.14.445. A district may contract with other appropriate entities for the administration and collection of any of the other taxes or charges authorized in this section.
Sec. 81. RCW
36.100.040 and 2018 c 245 s 2 are each amended to read as follows:
(1) A public facilities district may impose an excise tax on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter
82.08 RCW, except that no such tax may be levied on any premises having fewer than forty lodging units. Except for any tax imposed under subsection (4) or (5) of this section, if a public facilities district has not imposed such an excise tax prior to December 31, 1995, the public facilities district may only impose the excise tax if a ballot proposition authorizing the imposition of the tax has been approved by a simple majority vote of voters of the public facilities district voting on the proposition.
(2) The rate of the tax may not exceed two percent and the proceeds of the tax may only be used for the acquisition, design, construction, remodeling, maintenance, equipping, reequipping, repairing, and operation of its public facilities. This excise tax may not be imposed until the district has approved the proposal to acquire, design, and construct the public facilities.
(3) Except for a public facilities district created within a county with a population of one million five hundred thousand or more for the purpose of acquiring, owning, and operating a convention and trade center, a public facilities district may not impose the tax authorized in this section if, after the tax authorized in this section was imposed, the effective combined rate of state and local excise taxes, including sales and use taxes and excise taxes on lodging, imposed on the sale of or charge made for furnishing of lodging in any jurisdiction in the public facilities district exceeds eleven and one-half percent.
(4)(a) To replace the tax authorized by RCW
67.40.090, a public facilities district created within a county with a population of one million five hundred thousand or more for the purpose of acquiring, owning, operating, renovating, and expanding a convention and trade center may impose an excise tax on the sale of or charge made for the furnishing of lodging (including but not limited to any short-term rental) that is subject to tax under chapter
82.08 RCW, except that no such tax may be levied on:
(i) Any premises:
(A) Having fewer than sixty lodging units if the premises is located in a town with a population less than three hundred; or
(B) Classified as a hostel;
(ii) Any lodging that is concurrently subject to a tax on engaging in the business of being a short-term rental operator imposed by a city in which a convention and trade center is located; or
(iii) Any lodging that is operated by a university health care system exclusively for family members of patients.
(b) The rate of the tax may not exceed seven percent within the portion of the district that corresponds to the boundaries of the largest city within the public facilities district and may not exceed 2.8 percent in the remainder of the district. The tax imposed under this subsection (4) may not be collected prior to the transfer date defined in RCW
36.100.230.
(5) To replace the tax authorized by RCW
67.40.130, a public facilities district created within a county with a population of one million five hundred thousand or more for the purpose of acquiring, owning, operating, renovating, and expanding a convention and trade center may impose an additional excise tax on the sale of or charge made for the furnishing of lodging (including but not limited to any short-term rental) that is subject to tax under chapter
82.08 RCW, except that no such tax may be levied on any premises: (a) Having fewer than sixty lodging units if the premises is located in a town with a population less than three hundred; or (b) classified as a hostel. The rate of the additional excise tax may not exceed two percent and may be imposed only within the portion of the district that corresponds to the boundaries of the largest city within the public facilities district and may not be imposed in the remainder of the district. The tax imposed under this subsection (5) may not be collected prior to the transfer date specified in RCW
36.100.230. The tax imposed under this subsection (5) must be credited against the amount of the tax otherwise due to the state from those same taxpayers under chapter
82.08 RCW. The tax under this subsection (5) may be imposed only for the purpose of paying or securing the payment of the principal of and interest on obligations issued or incurred by the public facilities district and paying annual payment amounts to the state under subsection (6)(a) of this section. The authority to impose the additional excise tax under this subsection (5) expires on the date that is the earlier of (i) July 1, 2029, or (ii) the date on which all obligations issued or incurred by the public facilities district to implement any redemption, prepayment, or legal defeasance of outstanding obligations under RCW
36.100.230(3)(a) are no longer outstanding.
(6)(a) Commencing with the first full fiscal year of the state after the transfer date defined in RCW
36.100.230 and for so long as a public facilities district imposes a tax under subsection (5) of this section, the public facilities district must transfer to the state of Washington on June 30th of each state fiscal year an annual payment amount.
(b) For the purposes of this subsection (6), "annual payment amount" means an amount equal to revenues received by the public facilities district in the fiscal year from the additional excise tax imposed under subsection (5) of this section plus an interest charge calculated on one-half the annual payment amount times an interest rate equal to the average annual rate of return for the prior calendar year in the Washington state local government investment pool created in chapter
43.250 RCW.
(c)(i) If the public facilities district in any fiscal year is required to apply additional lodging excise tax revenues to the payment of principal and interest on obligations it issues or incurs, and the public facilities district is unable to pay all or any portion of the annual payment amount to the state, the deficiency is deemed to be a loan from the state to the public facilities district for the purpose of assisting the district in paying such principal and interest and must be repaid by the public facilities district to the state after providing for the payment of the principal of and interest on obligations issued or incurred by the public facilities district, all on terms established by an agreement between the state treasurer and the public facilities district executed prior to the transfer date. Any agreement between the state treasurer and the public facilities district must specify the term for the repayment of the deficiency in the annual payment amount with an interest rate equal to the twenty bond general obligation bond buyer index plus one percentage point.
(ii) Outstanding obligations to repay any loans deemed to have been made to the public facilities district as provided in any such agreements between the state treasurer and the public facilities district survive the expiration of the additional excise tax under subsection (5) of this section.
(iii) For the purposes of this subsection (6)(c), "additional lodging excise tax revenues" mean the tax revenues received by the public facilities district under subsection (5) of this section.
(7) A public facilities district is authorized to pledge any of its revenues, including without limitation revenues from the taxes authorized in this section, to pay or secure the payment of obligations issued or incurred by the public facilities district, subject to the terms established by the board of directors of the public facilities district. So long as a pledge of the taxes authorized under this section is in effect, the legislature may not withdraw or modify the authority to levy and collect the taxes at the rates permitted under this section and may not increase the annual payment amount to be transferred to the state under subsection (6) of this section.
(8) The department of ((revenue))taxation must perform the collection of such taxes on behalf of the public facilities district at no cost to the district, and the state treasurer must distribute those taxes as available on a monthly basis to the district or, upon the direction of the district, to a fiscal agent, paying agent, or trustee for obligations issued or incurred by the district.
(9) Except as expressly provided in this chapter, all of the provisions contained in RCW
82.08.050 and
82.08.060 and chapter
82.32 RCW have full force and application with respect to taxes imposed under the provisions of this section.
(10) In determining the effective combined rate of tax for purposes of the limit in subsection (3) of this section, the tax rate under RCW
82.14.530 is not included.
(11) The taxes imposed in this section do not apply to sales of temporary medical housing exempt under RCW
82.08.997.
(12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Hostel" means a structure or facility where a majority of the rooms for sleeping accommodations are hostel dormitories containing a minimum of four standard beds designed for single-person occupancy within the facility. Hostel accommodations are supervised and must include at least one common area and at least one common kitchen for guest use.
(ii) For the purpose of this subsection (12)(a), "hostel dormitory" means a single room, containing four or more standard beds designed for single-person occupancy, used exclusively as nonprivate communal sleeping quarters, generally for unrelated persons, where such persons independently acquire the right to occupy individual beds, with the operator supervising and determining which bed each person will occupy.
(b) "Short-term rental" means a lodging use, that is not a hotel or motel, in which a dwelling unit, or portion thereof, that is offered or provided to a guest or guests by a short-term rental operator for a fee for fewer than thirty consecutive nights. The term "short-term rental" does not include:
(i) A dwelling unit, or portion thereof, that is used by the same person for thirty or more consecutive nights; and
(ii) A dwelling unit, or portion thereof, that is operated by an organization or government entity that is registered as a charitable organization with the secretary of state, state of Washington, and/or is classified by the federal internal revenue service as a public charity or a private foundation, and provides temporary housing to individuals who are being treated for trauma, injury, or disease and/or their family members.
(13) Taxes authorized under subsections (4) and (5) of this section are deemed to have been imposed on December 1, 2000, for the purposes of RCW
82.14.410.
(14)(a) Beginning on the date that the condition in (b) of this subsection is satisfied, a public facilities district created within a county with a population of one million five hundred thousand or more for the purpose of acquiring, owning, operating, renovating, and expanding a convention and trade center must make quarterly payments from tax revenue collected by a public facilities district as a result of the tax imposed in chapter 245, Laws of 2018 to a city in which the convention and trade center is located that has authorized on or before December 31, 2017, a tax on engaging in the business of being a short-term rental operator. Such payments must be made no more than thirty days after the last day of each fiscal quarter and must equal the portion of the revenues received by the public facilities district during such fiscal quarter from the lodging taxes authorized under subsection (4) of this section that are determined by the department of ((revenue))taxation to be derived from the short-term rental activity within such city.
(b) The public facilities district is not required to make any payments under this subsection (14) unless the city has repealed any ordinance authorizing a tax on engaging in the business of being a short-term rental operator.
(c) The public facilities district is not required to make any payments to a city under this subsection (14), if the city, after satisfying the condition in (b) of this subsection imposes any tax specifically on the act of engaging in the business of being a short-term rental operator.
(d) The proceeds of any payments made by a public facilities district to a city under this subsection (14) must be used by the city to support community-initiated equitable development and affordable housing programs, as determined by the city in its sole discretion.
(15) Fifty percent of any tax revenue collected by a public facilities district as a result of the tax imposed in chapter 245, Laws of 2018 must be distributed by the public facilities district to the county in which the convention and trade center is located. However, if a city has satisfied the condition in subsection (14)(b) of this section, payments made under this subsection to the county in which the convention and trade center is located must be calculated after deducting any payments made to a city under subsection (14) of this section from the total tax revenue received by the public facilities district as a result of the enactment of chapter 245, Laws of 2018. The proceeds of such payments to a county under this subsection (15) must be used by the county to support affordable housing programs, as determined by the county, in its sole discretion.
Sec. 82. RCW
36.100.090 and 1995 1st sp.s. c 14 s 6 are each amended to read as follows:
(1) The governing board of a public facilities district may apply for deferral of taxes on the construction of buildings, site preparation, and the acquisition of related machinery and equipment for a new public facility. Application shall be made to the department of ((revenue))taxation in a form and manner prescribed by the department of ((revenue))taxation. The application shall contain information regarding the location of the public facility, estimated or actual costs, time schedules for completion and operation, and other information required by the department of ((revenue))taxation. The department of ((revenue))taxation shall approve the application within sixty days if it meets the requirements of this section.
(2) The department of ((
revenue))
taxation shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters
82.08, 82.12, and
82.14 RCW on the public facility. The use of the certificate shall be governed by rules established by the department of ((
revenue))
taxation.
(3) The public facilities district shall begin paying the deferred taxes in the fifth year after the date certified by the department of ((revenue))taxation as the date on which the public facility is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.
(4) The department of ((revenue))taxation may authorize an accelerated repayment schedule upon request of the public facilities district.
(5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the public facilities district.
(6) Applications and any other information received by the department of ((
revenue))
taxation under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
(7) As used in this section, "public facility" means a baseball stadium with a retractable roof or canopy and natural turf.
Sec. 83. RCW
36.102.070 and 1997 c 220 s 201 are each amended to read as follows:
(1) The governing board of a public stadium authority may apply for deferral of taxes on the construction of buildings, site preparation, and the acquisition of related machinery and equipment for a stadium and exhibition center. Application shall be made to the department of ((revenue))taxation in a form and manner prescribed by the department of ((revenue))taxation. The application shall contain information regarding the location of the stadium and exhibition center, estimated or actual costs, time schedules for completion and operation, and other information required by the department of ((revenue))taxation. The department of ((revenue))taxation shall approve the application within sixty days if it meets the requirements of this section.
(2) The department of ((
revenue))
taxation shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters
82.08, 82.12, and
82.14 RCW on the public facility.
(3) The public stadium authority shall begin paying the deferred taxes in the fifth year after the date certified by the department of ((revenue))taxation as the date on which the stadium and exhibition center is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.
(4) The department of ((revenue))taxation may authorize an accelerated repayment schedule upon request of the public stadium authority.
(5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the public stadium authority.
(6) The repayment of deferred taxes and interest, if any, shall be deposited into the stadium and exhibition center account created in RCW
43.99N.060 and used to retire bonds issued under RCW
43.99N.020 to finance the construction of the stadium and exhibition center.
(7) Applications and any other information received by the department of ((
revenue))
taxation under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
Sec. 84. RCW
36.120.050 and 2008 c 122 s 16 are each amended to read as follows:
(1) A regional transportation investment district planning committee may, as part of a regional transportation investment plan, recommend the imposition or authorization of some or all of the following revenue sources, which a regional transportation investment district may impose or authorize upon approval of the voters as provided in this chapter:
(a) A regional sales and use tax, as specified in RCW
82.14.430, of up to 0.1 percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax, upon the occurrence of any taxable event in the regional transportation investment district;
(b) A local option vehicle license fee, as specified under RCW
82.80.100, of up to one hundred dollars per vehicle registered in the district. As used in this subsection, "vehicle" means motor vehicle as defined in RCW
46.04.320. Certain classes of vehicles, as defined under chapter
46.04 RCW, may be exempted from this fee;
(d) A local motor vehicle excise tax under RCW
81.100.060;
(e) A local option fuel tax under RCW
82.80.120;
(f) An employer excise tax under RCW
81.100.030; and
(g) Vehicle tolls on new or reconstructed local or regional arterials or state routes within the boundaries of the district, if the following conditions are met:
(i) Consistent with RCW
47.56.820, the vehicle toll must first be authorized by the legislature if the toll is imposed on a state route;
(ii) Consistent with RCW
47.56.850, the vehicle toll, including any change in an existing toll rate, must first be reviewed and approved by the tolling authority designated in RCW
47.56.850 if the toll, or change in toll rate, would have a significant impact, as determined by the tolling authority, on the operation of any state facility;
(iii) The regional transportation investment plan must identify the facilities that may be tolled; and
(iv) Unless otherwise specified by law, the department shall administer the collection of vehicle tolls on designated facilities, and the state transportation commission, or its successor, shall be the tolling authority, and shall act in accordance with RCW
47.56.850.
(2) Taxes, fees, and tolls may not be imposed or authorized without an affirmative vote of the majority of the voters within the boundaries of the district voting on a ballot proposition as set forth in RCW
36.120.070. Revenues from these taxes and fees may be used only to implement the plan as set forth in this chapter. A district may contract with the state department of ((
revenue))
taxation or other appropriate entities for administration and collection of any of the taxes or fees authorized in this section.
(3) Existing statewide motor vehicle fuel and special fuel taxes, at the distribution rates in effect on January 1, 2001, are not intended to be altered by this chapter.
Sec. 85. RCW
38.52.510 and 2010 1st sp.s. c 19 s 14 are each amended to read as follows:
Each county, singly or in combination with one or more adjacent counties, must implement countywide or multicounty-wide enhanced 911 emergency communications systems so that enhanced 911 is available throughout the state. The county must provide funding for the enhanced 911 communications system in the county in an amount equal to the amount the maximum tax under RCW
82.14B.030(1) would generate in the county less any applicable administrative fee charged by the department of ((
revenue))
taxation or the amount necessary to provide full funding of the system in the county. The state enhanced 911 coordination office established by RCW
38.52.520 must assist and facilitate enhanced 911 implementation throughout the state.
Sec. 86. RCW
39.08.010 and 2017 c 75 s 1 are each amended to read as follows:
(1)(a) Whenever any board, council, commission, trustees, or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state, county, or municipality, or other public body, city, town, or district, such board, council, commission, trustees, or body must require the person or persons with whom such contract is made to make, execute, and deliver to such board, council, commission, trustees, or body a good and sufficient bond, with a surety company as surety, conditioned that such person or persons must:
(i) Faithfully perform all the provisions of such contract;
(ii) Pay all laborers, mechanics, and subcontractors and material suppliers, and all persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work; and
(iii) Pay the taxes, increases, and penalties incurred on the project under Titles
50,
51, and
82 RCW on: (A) Projects referred to in RCW
60.28.011(1)(b); and/or (B) projects for which the bond is conditioned on the payment of such taxes, increases, and penalties.
(b) The bond, in cases of cities and towns, must be filed with the clerk or comptroller thereof, and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work, services, or material was furnished to the original contractor.
(2) The provisions of RCW
39.08.010 through
39.08.030 do not apply to any money loaned or advanced to any such contractor, subcontractor, or other person in the performance of any such work.
(3) On contracts of one hundred fifty thousand dollars or less, at the option of the contractor or the general contractor/construction manager as defined in RCW
39.10.210, the respective public entity may, in lieu of the bond, retain ten percent of the contract amount for a period of thirty days after date of final acceptance, or until receipt of all necessary releases from the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries and settlement of any liens filed under chapter
60.28 RCW, whichever is later. The recovery of unpaid wages and benefits must be the first priority for any actions filed against retainage held by a state agency or authorized local government.
(4) For contracts of one hundred fifty thousand dollars or less, the public entity may accept a full payment and performance bond from an individual surety or sureties.
(5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington.
Sec. 87. RCW
39.08.030 and 2018 c 89 s 1 are each amended to read as follows:
(1)(a) The bond mentioned in RCW
39.08.010 must be in an amount equal to the full contract price agreed to be paid for such work or improvement, except under subsection (2) of this section, and must be to the state of Washington, except as otherwise provided in RCW
39.08.100, and except in cases of cities, towns, public transportation benefit areas, passenger-only ferry service districts, and water-sewer districts, in which cases such municipalities may by general ordinance or resolution fix and determine the amount of such bond and to whom such bond runs. However, the same may not be for a less amount than twenty-five percent of the contract price of any such improvement for cities, towns, public transportation benefit areas, and passenger-only ferry service districts, and not less than the full contract price of any such improvement for water-sewer districts, and may designate that the same must be payable to such city, town, water-sewer district, public transportation benefit area, or passenger-only ferry service district, and not to the state of Washington, and all such persons mentioned in RCW
39.08.010 have a right of action in his, her, or their own name or names on such bond for work done by such laborers or mechanics, and for materials furnished or provisions and goods supplied and furnished in the prosecution of such work, or the making of such improvements, and the state has a right of action for the collection of taxes, increases, and penalties specified in RCW
39.08.010: PROVIDED, That, except for the state with respect to claims for taxes, increases, and penalties specified in RCW
39.08.010, such persons do not have any right of action on such bond for any sum whatever, unless within thirty days from and after the completion of the contract with an acceptance of the work by the affirmative action of the board, council, commission, trustees, officer, or body acting for the state, county or municipality, or other public body, city, town or district, the laborer, mechanic or subcontractor, or material supplier, or person claiming to have supplied materials, provisions or goods for the prosecution of such work, or the making of such improvement, must present to and file with such board, council, commission, trustees or body acting for the state, county or municipality, or other public body, city, town or district, a notice in writing in substance as follows:
To (here insert the name of the state, county or municipality or other public body, city, town or district): |
Notice is hereby given that the undersigned (here insert the name of the laborer, mechanic or subcontractor, or material supplier, or person claiming to have furnished labor, materials or provisions for or upon such contract or work) has a claim in the sum of . . . . . . dollars (here insert the amount) against the bond taken from . . . . . . (here insert the name of the principal and surety or sureties upon such bond) for the work of . . . . . . (here insert a brief mention or description of the work concerning which said bond was taken). |
| (here to be signed) | . . . . |
(b) Such notice must be signed by the person or corporation making the claim or giving the notice, and the notice, after being presented and filed, is a public record open to inspection by any person, and in any suit or action brought against such surety or sureties by any such person or corporation to recover for any of the items specified in this section, the claimant is entitled to recover in addition to all other costs, attorneys' fees in such sum as the court adjudges reasonable. However, attorneys' fees are not allowed in any suit or action brought or instituted before the expiration of thirty days following the date of filing of the notice as provided in this section. However, any city may avail itself of the provisions of RCW
39.08.010 through
39.08.030, notwithstanding any charter provisions in conflict with this section. Moreover, any city or town may impose any other or further conditions and obligations in such bond as may be deemed necessary for its proper protection in the fulfillment of the terms of the contract secured thereby, and not in conflict with this section. The thirty-day notice requirement under this subsection does not apply to claims made by the state for taxes, increases, and penalties specified in RCW
39.08.010.
(2) Under the job order contracting procedure described in RCW
39.10.420, bonds will be in an amount not less than the dollar value of all open work orders.
(3) Where retainage is not withheld pursuant to RCW
60.28.011(1)(b), upon final acceptance of the public works project, the state, county, municipality, or other public body must within thirty days notify the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries of the completion of contracts over thirty-five thousand dollars.
Sec. 88. RCW
39.12.100 and 2009 c 63 s 1 are each amended to read as follows:
For the purposes of this chapter, an individual employed on a public works project is not considered to be a laborer, worker, or mechanic when:
(1) The individual has been and is free from control or direction over the performance of the service, both under the contract of service and in fact;
(2) The service is either outside the usual course of business for the contractor or contractors for whom the individual performs services, or the service is performed outside all of the places of business of the enterprise for which the individual performs services, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed;
(3) The individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or the individual has a principal place of business for the business the individual is conducting that is eligible for a business deduction for federal income tax purposes other than that furnished by the employer for which the business has contracted to furnish services;
(4) On the effective date of the contract of service, the individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting;
(5) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract of service, the individual has an active and valid certificate of registration with the department of ((revenue))taxation, and an active and valid account with any other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington;
(6) On the effective date of the contract of service, the individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business which the individual is conducting; and
(7) On the effective date of the contract of service, if the nature of the work performed requires registration under chapter
18.27 RCW or licensure under chapter
19.28 RCW, the individual has a valid contractor registration pursuant to chapter
18.27 RCW or an electrical contractor license pursuant to chapter
19.28 RCW.
Sec. 89. RCW
39.26.010 and 2015 c 79 s 5 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Agency" means any state office or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, institutions of higher education as defined in RCW
28B.10.016, and correctional and other types of institutions.
(2) "Bid" means an offer, proposal, or quote for goods or services in response to a solicitation issued for such goods or services by the department or an agency of Washington state government.
(3) "Bidder" means an individual or entity who submits a bid, quotation, or proposal in response to a solicitation issued for such goods or services by the department or an agency of Washington state government.
(4) "Client services" means services provided directly to agency clients including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing.
(5) "Community rehabilitation program of the department of social and health services" means any entity that:
(a) Is registered as a nonprofit corporation with the secretary of state; and
(b) Is recognized by the department of social and health services, division of vocational rehabilitation as eligible to do business as a community rehabilitation program.
(6) "Competitive solicitation" means a documented formal process providing an equal and open opportunity to bidders and culminating in a selection based on predetermined criteria.
(7) "Contractor" means an individual or entity awarded a contract with an agency to perform a service or provide goods.
(8) "Debar" means to prohibit a contractor, individual, or other entity from submitting a bid, having a bid considered, or entering into a state contract during a specified period of time as set forth in a debarment order.
(9) "Department" means the department of enterprise services.
(10) "Director" means the director of the department of enterprise services.
(11) "Estimated useful life" of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner.
(12) "Goods" means products, materials, supplies, or equipment provided by a contractor.
(13) "In-state business" means a business that has its principal office located in Washington.
(14) "Life-cycle cost" means the total cost of an item to the state over its estimated useful life, including costs of selection, acquisition, operation, maintenance, and where applicable, disposal, as far as these costs can reasonably be determined, minus the salvage value at the end of its estimated useful life.
(15) "Master contracts" means a contract for specific goods or services, or both, that is solicited and established by the department in accordance with procurement laws and rules on behalf of and for general use by agencies as specified by the department.
(16) "Microbusiness" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that: (a) Is owned and operated independently from all other businesses; and (b) has a gross revenue of less than one million dollars annually as reported on its federal tax return or on its return filed with the department of ((revenue))taxation.
(17) "Minibusiness" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that: (a) Is owned and operated independently from all other businesses; and (b) has a gross revenue of less than three million dollars, but one million dollars or more annually as reported on its federal tax return or on its return filed with the department of ((revenue))taxation.
(18) "Polychlorinated biphenyls" means any polychlorinated biphenyl congeners and homologs.
(19) "Practical quantification limit" means the lowest concentration that can be reliably measured within specified limits of precision, accuracy, representativeness, completeness, and comparability during routine laboratory operating conditions.
(20) "Purchase" means the acquisition of goods or services, including the leasing or renting of goods.
(21) "Services" means labor, work, analysis, or similar activities provided by a contractor to accomplish a specific scope of work.
(22) "Small business" means an in-state business, including a sole proprietorship, corporation, partnership, or other legal entity, that:
(a) Certifies, under penalty of perjury, that it is owned and operated independently from all other businesses and has either:
(i) Fifty or fewer employees; or
(ii) A gross revenue of less than seven million dollars annually as reported on its federal income tax return or its return filed with the department of ((revenue))taxation over the previous three consecutive years; or
(b) Is certified with the office of women and minority business enterprises under chapter
39.19 RCW.
(23) "Sole source" means a contractor providing goods or services of such a unique nature or sole availability at the location required that the contractor is clearly and justifiably the only practicable source to provide the goods or services.
(24) "Washington grown" has the definition in RCW
15.64.060.
Sec. 90. RCW
39.88.070 and 1982 1st ex.s. c 42 s 8 are each amended to read as follows:
(1) Upon the date established in the public improvement ordinance, but not sooner than the first day of the calendar year following the passage of the ordinance, the regular property taxes levied upon the assessed value of real property within the apportionment district shall be divided as follows:
(a) That portion of the regular property taxes produced by the rate of tax levied each year by or for each of the taxing districts upon the tax allocation base value of real property, or upon the assessed value of real property in each year, whichever is smaller, shall be allocated to and paid to the respective taxing districts; and
(b) That portion of the regular property taxes levied each year by or for each of the taxing districts upon the assessed value of real property within an apportionment district which is in excess of the tax allocation base value of real property shall be allocated and paid to the sponsor, or the sponsor's designated agent, until all public improvement costs to be paid from the tax allocation revenues have been paid, except that the sponsor may agree to receive less than the full amount of such portion as long as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of the taxes shall be allocated to the respective taxing districts as the sponsor and the taxing districts may agree.
(2) The county assessor shall revalue the real property within the apportionment district for the purpose of determining the tax allocation base value for the apportionment district and shall certify to the sponsor the tax allocation base value as soon as practicable after the assessor receives notice of the public improvement ordinance and shall certify to the sponsor the total assessed value of real property within thirty days after the property values for each succeeding year have been established, except that the assessed value of state-assessed real property within the apportionment district shall be certified as soon as the values are provided to the assessor by the department of ((
revenue))
taxation. Nothing in this section authorizes revaluations of real property by the assessor for property taxation that are not made in accordance with the assessor's revaluation plan under chapter
84.41 RCW.
(3) The date upon which the apportionment district was established shall be considered the date upon which the public improvement ordinance was enacted by the sponsor.
(4) The apportionment of regular property taxes under this section shall cease when tax allocation revenues are no longer necessary or obligated to pay public improvement costs or to pay principal of and interest on bonds issued to finance public improvement costs and payable in whole or in part from tax allocation revenues. At the time of termination of the apportionment, any excess money and any earnings thereon held by the sponsor shall be returned to the county treasurer and distributed to the taxing districts which were subject to the allocation in proportion to their regular property tax levies due for the year in which the funds are returned.
Sec. 91. RCW
39.100.010 and 2011 c 363 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Benefit zone" means the geographic zone from which taxes are to be appropriated to finance public improvements authorized under this chapter and in which a hospital that has received a certificate of need is to be constructed.
(2) "Department" means the department of ((revenue))taxation.
(3) "Local government" means any city, town, county, or any combination thereof.
(4) "Ordinance" means any appropriate method of taking legislative action by a local government.
(5) "Participating taxing authority" means a taxing authority that has entered into a written agreement with a local government for the use of hospital benefit zone financing to the extent of allocating excess local excise taxes to the local government for the purpose of financing all or a portion of the costs of designated public improvements.
(6) "Public improvements" means:
(a) Infrastructure improvements within the benefit zone that include:
(i) Street and road construction and maintenance;
(ii) Water and sewer system construction and improvements;
(iii) Sidewalks and streetlights;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities and recreational areas; and
(vii) Stormwater and drainage management systems; and
(b) The construction, maintenance, and improvement of state highways that are connected to the benefit zone, including interchanges connected to the benefit zone.
(7) "Public improvement costs" means the costs of: (a) Design, planning, acquisition including land acquisition, site preparation including land clearing, construction, reconstruction, rehabilitation, improvement, and installation of public improvements; (b) demolishing, relocating, maintaining, and operating property pending construction of public improvements; (c) relocating utilities as a result of public improvements; and (d) financing public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on indebtedness issued to finance public improvements, and any necessary reserves for indebtedness; and administrative expenses and feasibility studies reasonably necessary and related to these costs, including related costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of hospital benefit zone financing to fund the costs of the public improvements.
(8) "Tax allocation revenues" means those tax revenues derived from the receipt of excess local excise taxes under RCW
39.100.050 and distributed by a local government, participating taxing authority, or both, to finance public improvements.
(9) "Taxing authority" means a governmental entity that imposes a sales or use tax under chapter
82.14 RCW upon the occurrence of any taxable event within a proposed or approved benefit zone.
Sec. 92. RCW
39.100.040 and 2007 c 266 s 5 are each amended to read as follows:
(1) A local government that adopts an ordinance creating a benefit zone under this chapter shall, within ninety days of adopting the ordinance:
(a) Publish notice in a legal newspaper of general circulation within the benefit zone that describes the public improvement, describes the boundaries of the benefit zone, and identifies the location and times where the ordinance and other public information concerning the public improvement may be inspected; and
(b) Deliver a certified copy of the ordinance to the county treasurer, the county assessor, the department of ((revenue))taxation, and the governing body of each participating taxing authority within which the benefit zone is located.
(2) Any challenge to the formation shall be brought within sixty days of the later of the date of its formation or July 1, 2007. All parties, including the holders of bonds payable from tax revenue under chapter 266, Laws of 2007, may rely upon the presumption of validity of formation of the benefit zone following the expiration of the sixty-day period.
Sec. 93. RCW
39.102.020 and 2018 c 178 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Annual state contribution limit" means seven million five hundred thousand dollars statewide per fiscal year.
(2) "Assessed value" means the valuation of taxable real property as placed on the last completed assessment roll.
(3) "Board" means the community economic revitalization board under chapter
43.160 RCW.
(4) "Dedicated" means pledged, set aside, allocated, received, budgeted, or otherwise identified.
(5) "Demonstration project" means one of the following projects:
(a) Bellingham waterfront redevelopment project;
(b) Spokane river district project at Liberty Lake; and
(c) Vancouver riverwest project.
(6) "Department" means the department of ((revenue))taxation.
(7) "Fiscal year" means the twelve-month period beginning July 1st and ending the following June 30th.
(8) "Local excise tax allocation revenue" means an amount of local excise taxes equal to some or all of the sponsoring local government's local excise tax increment, amounts of local excise taxes equal to some or all of any participating local government's excise tax increment as agreed upon in the written agreement under RCW
39.102.080(1), or both, and dedicated to local infrastructure financing.
(9) "Local excise tax increment" means an amount equal to the estimated annual increase in local excise taxes in each calendar year following the approval of the revenue development area by the board from taxable activity within the revenue development area, as set forth in the application provided to the board under RCW
39.102.040, and updated in accordance with RCW
39.102.140(1)(f).
(10) "Local excise taxes" means local revenues derived from the imposition of sales and use taxes authorized in RCW
82.14.030.
(11) "Local government" means any city, town, county, port district, and any federally recognized Indian tribe.
(12) "Local infrastructure financing" means the use of revenues received from local excise tax allocation revenues, local property tax allocation revenues, other revenues from local public sources, and revenues received from the local option sales and use tax authorized in RCW
82.14.475, dedicated to pay either the principal and interest on bonds authorized under RCW
39.102.150 or to pay public improvement costs on a pay-as-you-go basis subject to RCW
39.102.195, or both.
(13) "Local property tax allocation revenue" means those tax revenues derived from the receipt of regular property taxes levied on the property tax allocation revenue value and used for local infrastructure financing.
(14) "Low-income housing" means residential housing for low-income persons or families who lack the means which is necessary to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings, without overcrowding. For the purposes of this subsection, "low income" means income that does not exceed eighty percent of the median family income for the standard metropolitan statistical area in which the revenue development area is located.
(15) "Ordinance" means any appropriate method of taking legislative action by a local government.
(16) "Participating local government" means a local government having a revenue development area within its geographic boundaries that has entered into a written agreement with a sponsoring local government as provided in RCW
39.102.080 to allow the use of all or some of its local excise tax allocation revenues or other revenues from local public sources dedicated for local infrastructure financing.
(17) "Participating taxing district" means a local government having a revenue development area within its geographic boundaries that has entered into a written agreement with a sponsoring local government as provided in RCW
39.102.080 to allow the use of some or all of its local property tax allocation revenues or other revenues from local public sources dedicated for local infrastructure financing.
(18) "Property tax allocation revenue base value" means the assessed value of real property located within a revenue development area less the property tax allocation revenue value.
(19)(a)(i) "Property tax allocation revenue value" means seventy-five percent of any increase in the assessed value of real property in a revenue development area resulting from:
(A) The placement of new construction, improvements to property, or both, on the assessment roll, where the new construction and improvements are initiated after the revenue development area is approved by the board;
(B) The cost of new housing construction, conversion, and rehabilitation improvements, when such cost is treated as new construction for purposes of chapter
84.55 RCW as provided in RCW
84.14.020, and the new housing construction, conversion, and rehabilitation improvements are initiated after the revenue development area is approved by the board;
(C) The cost of rehabilitation of historic property, when such cost is treated as new construction for purposes of chapter
84.55 RCW as provided in RCW
84.26.070, and the rehabilitation is initiated after the revenue development area is approved by the board.
(ii) Increases in the assessed value of real property in a revenue development area resulting from (a)(i)(A) through (C) of this subsection are included in the property tax allocation revenue value in the initial year. These same amounts are also included in the property tax allocation revenue value in subsequent years unless the property becomes exempt from property taxation.
(b) "Property tax allocation revenue value" includes seventy-five percent of any increase in the assessed value of new construction consisting of an entire building in the years following the initial year, unless the building becomes exempt from property taxation.
(c) Except as provided in (b) of this subsection, "property tax allocation revenue value" does not include any increase in the assessed value of real property after the initial year.
(d) There is no property tax allocation revenue value if the assessed value of real property in a revenue development area has not increased as a result of any of the reasons specified in (a)(i)(A) through (C) of this subsection.
(e) For purposes of this subsection, "initial year" means:
(i) For new construction and improvements to property added to the assessment roll, the year during which the new construction and improvements are initially placed on the assessment roll;
(ii) For the cost of new housing construction, conversion, and rehabilitation improvements, when such cost is treated as new construction for purposes of chapter
84.55 RCW, the year when such cost is treated as new construction for purposes of levying taxes for collection in the following year; and
(iii) For the cost of rehabilitation of historic property, when such cost is treated as new construction for purposes of chapter
84.55 RCW, the year when such cost is treated as new construction for purposes of levying taxes for collection in the following year.
(20) "Public improvement costs" means the cost of: (a) Design, planning, acquisition including land acquisition, site preparation including land clearing, construction, reconstruction, rehabilitation, improvement, and installation of public improvements; (b) demolishing, relocating, maintaining, and operating property pending construction of public improvements; (c) the local government's portion of relocating utilities as a result of public improvements; (d) financing public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on general indebtedness issued to finance public improvements, and any necessary reserves for general indebtedness; (e) assessments incurred in revaluing real property for the purpose of determining the property tax allocation revenue base value that are in excess of costs incurred by the assessor in accordance with the revaluation plan under chapter
84.41 RCW, and the costs of apportioning the taxes and complying with this chapter and other applicable law; (f) administrative expenses and feasibility studies reasonably necessary and related to these costs; and (g) any of the above-described costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of local infrastructure financing to fund the costs of the public improvements.
(21) "Public improvements" means:
(a) Infrastructure improvements within the revenue development area that include:
(i) Street, bridge, and road construction and maintenance, including highway interchange construction;
(ii) Water and sewer system construction and improvements, including wastewater reuse facilities;
(iii) Sidewalks, traffic controls, and streetlights;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities and recreational areas, including trails; and
(vii) Stormwater and drainage management systems;
(b) Expenditures for facilities and improvements that support affordable housing as defined in RCW
43.63A.510.
(22) "Real property" has the same meaning as in RCW
84.04.090 and also includes any privately owned improvements located on publicly owned land that are subject to property taxation.
(23) "Regular property taxes" means regular property taxes as defined in RCW
84.04.140, except: (a) Regular property taxes levied by public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness; (b) regular property taxes levied by the state for the support of the common schools under RCW
84.52.065; and (c) regular property taxes authorized by RCW
84.55.050 that are limited to a specific purpose. "Regular property taxes" do not include excess property tax levies that are exempt from the aggregate limits for junior and senior taxing districts as provided in RCW
84.52.043.
(24) "Relocating a business" means the closing of a business and the reopening of that business, or the opening of a new business that engages in the same activities as the previous business, in a different location within a one-year period, when an individual or entity has an ownership interest in the business at the time of closure and at the time of opening or reopening. "Relocating a business" does not include the closing and reopening of a business in a new location where the business has been acquired and is under entirely new ownership at the new location, or the closing and reopening of a business in a new location as a result of the exercise of the power of eminent domain.
(25) "Revenue development area" means the geographic area adopted by a sponsoring local government and approved by the board, from which local excise and property tax allocation revenues are derived for local infrastructure financing.
(26)(a) "Revenues from local public sources" means:
(i) Amounts of local excise tax allocation revenues and local property tax allocation revenues, dedicated by sponsoring local governments, participating local governments, and participating taxing districts, for local infrastructure financing; and
(ii) Any other local revenues, except as provided in (b) of this subsection, including revenues derived from federal and private sources.
(b) Revenues from local public sources do not include any local funds derived from state grants, state loans, or any other state moneys including any local sales and use taxes credited against the state sales and use taxes imposed under chapter
82.08 or
82.12 RCW.
(27) "Small business" has the same meaning as provided in RCW
19.85.020.
(28) "Sponsoring local government" means a city, town, or county, and for the purpose of this chapter a federally recognized Indian tribe or any combination thereof, that adopts a revenue development area and applies to the board to use local infrastructure financing.
(29) "State contribution" means the lesser of:
(a) One million dollars;
(b) The total amount of local excise tax allocation revenues, local property tax allocation revenues, and other revenues from local public sources, that are dedicated by a sponsoring local government, any participating local governments, and participating taxing districts, in the preceding calendar year to the payment of principal and interest on bonds issued under RCW
39.102.150 or to pay public improvement costs on a pay-as-you-go basis subject to RCW
39.102.195, or both. Revenues from local public sources dedicated in the preceding calendar year that are in excess of the project award may be carried forward and used in later years for the purpose of this subsection (29)(b);
(c) The amount of project award granted by the board in the notice of approval to use local infrastructure financing under RCW
39.102.040; or
(d) The highest amount of state excise tax allocation revenues and state property tax allocation revenues for any one calendar year as determined by the sponsoring local government and reported to the board and the department as required by RCW
39.102.140.
(30) "State excise tax allocation revenue" means an amount equal to the annual increase in state excise taxes estimated to be received by the state in each calendar year following the approval of the revenue development area by the board, from taxable activity within the revenue development area as set forth in the application provided to the board under RCW
39.102.040 and periodically updated and reported as required in RCW
39.102.140(1)(f).
(31) "State excise taxes" means revenues derived from state retail sales and use taxes under RCW
82.08.020(1) and
82.12.020 at the rate provided in RCW
82.08.020(1), less the amount of tax distributions from all local retail sales and use taxes, other than the local sales and use taxes authorized by RCW
82.14.475 for the applicable revenue development area, imposed on the same taxable events that are credited against the state retail sales and use taxes under chapters
82.08 and
82.12 RCW.
(32) "State property tax allocation revenue" means an amount equal to the estimated tax revenues derived from the imposition of property taxes levied by the state for the support of common schools under RCW
84.52.065 on the property tax allocation revenue value, as set forth in the application submitted to the board under RCW
39.102.040 and updated annually in the report required under RCW
39.102.140(1)(f).
(33) "Taxing district" means a government entity that levies or has levied for it regular property taxes upon real property located within a proposed or approved revenue development area.
Sec. 94. RCW
39.102.040 and 2014 c 112 s 105 are each amended to read as follows:
(1) Prior to applying to the board to use local infrastructure financing, a sponsoring local government shall:
(a) Designate a revenue development area within the limitations in RCW
39.102.060;
(b) Certify that the conditions in RCW
39.102.070 are met;
(d) Provide public notice as required in RCW
39.102.100; and
(e) Pass an ordinance adopting the revenue development area as required in RCW
39.102.090.
(2) Any local government that has created an increment area under chapter
39.89 RCW and has not issued bonds to finance any public improvement may apply to the board and have its increment area considered for approval as a revenue development area under this chapter without adopting a new revenue development area under RCW
39.102.090 and
39.102.100 if it amends its ordinance to comply with RCW
39.102.090(1) and otherwise meets the conditions and limitations under this chapter.
(3) As a condition to imposing a sales and use tax under RCW
82.14.475, a sponsoring local government, including any cosponsoring local government seeking authority to impose a sales and use tax under RCW
82.14.475, must apply to the board and be approved for a project award amount. The application shall be in a form and manner prescribed by the board and include but not be limited to information establishing that the applicant is an eligible candidate to impose the local sales and use tax under RCW
82.14.475, the anticipated effective date for imposing the tax, the estimated number of years that the tax will be imposed, and the estimated amount of tax revenue to be received in each fiscal year that the tax will be imposed. The board shall make available forms to be used for this purpose. As part of the application, each applicant must provide to the board a copy of the ordinance or ordinances creating the revenue development area as required in RCW
39.102.090. A notice of approval to use local infrastructure financing shall contain a project award that represents the maximum amount of state contribution that the applicant, including any cosponsoring local governments, can earn each year that local infrastructure financing is used. The total of all project awards shall not exceed the annual state contribution limit. The determination of a project award shall be made based on information contained in the application and the remaining amount of annual state contribution limit to be awarded. Determination of a project award by the board is final.
(4)(a) Sponsoring local governments, and any cosponsoring local governments, applying in calendar year 2007 for a competitive project award, must submit completed applications to the board no later than July 1, 2007. By September 15, 2007, in consultation with the department of ((revenue))taxation and the department of commerce, the board shall approve competitive project awards from competitive applications submitted by the 2007 deadline. No more than two million five hundred thousand dollars in competitive project awards shall be approved in 2007. For projects not approved by the board in 2007, sponsoring and cosponsoring local governments may apply again to the board in 2008 for approval of a project.
(b) Sponsoring local governments, and any cosponsoring local governments, applying in calendar year 2008 for a competitive project award, must submit completed applications to the board no later than July 1, 2008. By September 18, 2008, in consultation with the department of ((revenue))taxation and the department of commerce, the board shall approve competitive project awards from competitive applications submitted by the 2008 deadline.
(c) Except as provided in RCW
39.102.050(2), a total of no more than five million dollars in competitive project awards shall be approved for local infrastructure financing.
(d) The project selection criteria and weighting developed prior to July 22, 2007, for the application evaluation and approval process shall apply to applications received prior to November 1, 2007. In evaluating applications for a competitive project award after November 1, 2007, the board shall develop the relative weight to be assigned to the following criteria:
(i) The project's potential to enhance the sponsoring local government's regional and/or international competitiveness;
(ii) The project's ability to encourage mixed use and transit-oriented development and the redevelopment of a geographic area;
(iii) Achieving an overall distribution of projects statewide that reflect geographic diversity;
(iv) The estimated wages and benefits for the project is greater than the average labor market area;
(v) The estimated state and local net employment change over the life of the project;
(vi) The current economic health and vitality of the proposed revenue development area and the contiguous community and the estimated impact of the proposed project on the proposed revenue development area and contiguous community;
(vii) The estimated state and local net property tax change over the life of the project;
(viii) The estimated state and local sales and use tax increase over the life of the project;
(ix) An analysis that shows that, over the life of the project, neither the local excise tax allocation revenues nor the local property tax allocation revenues will constitute more than eighty percent of the total local funds as described in RCW
39.102.020(29)(b); and
(x) If a project is located within an urban growth area, evidence that the project utilizes existing urban infrastructure and that the transportation needs of the project will be adequately met through the use of local infrastructure financing or other sources.
(e)(i) Except as provided in this subsection (4)(e), the board may not approve the use of local infrastructure financing within more than one revenue development area per county.
(ii) In a county in which the board has approved the use of local infrastructure financing, the use of such financing in additional revenue development areas may be approved, subject to the following conditions:
(A) The sponsoring local government is located in more than one county; and
(B) The sponsoring local government designates a revenue development area that comprises portions of a county within which the use of local infrastructure financing has not yet been approved.
(iii) In a county where the local infrastructure financing tool is authorized under RCW
39.102.050, the board may approve additional use of the local infrastructure financing tool.
(5) Once the board has approved the sponsoring local government, and any cosponsoring local governments, to use local infrastructure financing, notification must be sent by the board to the sponsoring local government, and any cosponsoring local governments, authorizing the sponsoring local government, and any cosponsoring local governments, to impose the local sales and use tax authorized under RCW
82.14.475, subject to the conditions in RCW
82.14.475.
Sec. 95. RCW
39.102.210 and 2006 c 181 s 701 are each amended to read as follows:
The department of ((revenue))taxation and the community economic revitalization board shall evaluate and periodically report on the implementation of the local infrastructure financing (([tool]))tool program to the governor and legislature as the department and the board deems appropriate and recommend such amendments, changes in, and modifications of chapter 181, Laws of 2006 as seem proper.
Sec. 96. RCW
39.102.220 and 2007 c 229 s 13 are each amended to read as follows:
The department of ((
revenue))
taxation and the community economic revitalization board may adopt any rules under chapter
34.05 RCW they consider necessary for the administration of this chapter.
Sec. 97. RCW
39.104.020 and 2016 c 207 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Annual state contribution limit" means two million five hundred thousand dollars statewide per fiscal year, plus the additional amounts approved for demonstration projects in RCW
82.14.505.
(2) "Approving agency" means the department of ((revenue))taxation for project awards approved before June 9, 2016, and the department of commerce for project awards approved after June 9, 2016.
(3) "Assessed value" means the valuation of taxable real property as placed on the last completed assessment roll.
(4) "Bond" means a bond, a note or other evidence of indebtedness, including but not limited to a lease-purchase agreement or an executory conditional sales contract.
(5) "Department" means the department of ((revenue))taxation.
(6) "Fiscal year" means the twelve-month period beginning July 1st and ending the following June 30th.
(7) "Local government" means any city, town, county, and port district.
(8) "Local property tax allocation revenue" means those tax revenues derived from the receipt of regular property taxes levied on the property tax allocation revenue value and used for local revitalization financing.
(9) "Local revitalization financing" means the use of revenues from local public sources, dedicated to pay the principal and interest on bonds authorized under RCW
39.104.110 and public improvement costs within the revitalization area on a pay-as-you-go basis, and revenues received from the local option sales and use tax authorized in RCW
82.14.510, dedicated to pay the principal and interest on bonds authorized under RCW
39.104.110.
(10) "Local sales and use tax increment" means the estimated annual increase in local sales and use taxes as determined by the local government in the calendar years following the approval of the revitalization area by the department from taxable activity within the revitalization area.
(11) "Local sales and use taxes" means local revenues derived from the imposition of sales and use taxes authorized in RCW
82.14.030.
(12) "Ordinance" means any appropriate method of taking legislative action by a local government.
(13) "Participating local government" means a local government having a revitalization area within its geographic boundaries that has taken action as provided in RCW
39.104.070(1) to allow the use of all or some of its local sales and use tax increment or other revenues from local public sources dedicated for local revitalization financing.
(14) "Participating taxing district" means a taxing district that:
(a) Has a revitalization area wholly or partially within its geographic boundaries;
(b) Levies or has levied for it regular property taxes as defined in this section; and
(c) Has not taken action as provided in RCW
39.104.060(2).
(15) "Property tax allocation revenue base value" means the assessed value of real property located within a revitalization area, less the property tax allocation revenue value.
(16)(a)(i) "Property tax allocation revenue value" means seventy-five percent of any increase in the assessed value of real property in a revitalization area resulting from:
(A) The placement of new construction, improvements to property, or both, on the assessment roll, where the new construction and improvements are initiated after the revitalization area is approved;
(B) The cost of new housing construction, conversion, and rehabilitation improvements, when the cost is treated as new construction for purposes of chapter
84.55 RCW as provided in RCW
84.14.020, and the new housing construction, conversion, and rehabilitation improvements are initiated after the revitalization area is approved;
(C) The cost of rehabilitation of historic property, when the cost is treated as new construction for purposes of chapter
84.55 RCW as provided in RCW
84.26.070, and the rehabilitation is initiated after the revitalization area is approved.
(ii) Increases in the assessed value of real property in a revitalization area resulting from (a)(i)(A) through (C) of this subsection are included in the property tax allocation revenue value in the initial year. These same amounts are also included in the property tax allocation revenue value in subsequent years unless the property becomes exempt from property taxation.
(b) "Property tax allocation revenue value" includes seventy-five percent of any increase in the assessed value of new construction consisting of an entire building in the years following the initial year, unless the building becomes exempt from property taxation.
(c) Except as provided in (b) of this subsection, "property tax allocation revenue value" does not include any increase in the assessed value of real property after the initial year.
(d) There is no property tax allocation revenue value if the assessed value of real property in a revitalization area has not increased as a result of any of the reasons specified in (a)(i)(A) through (C) of this subsection.
(e) For purposes of this subsection, "initial year" means:
(i) For new construction and improvements to property added to the assessment roll, the year during which the new construction and improvements are initially placed on the assessment roll;
(ii) For the cost of new housing construction, conversion, and rehabilitation improvements, when the cost is treated as new construction for purposes of chapter
84.55 RCW, the year when the cost is treated as new construction for purposes of levying taxes for collection in the following year; and
(iii) For the cost of rehabilitation of historic property, when the cost is treated as new construction for purposes of chapter
84.55 RCW, the year when such cost is treated as new construction for purposes of levying taxes for collection in the following year.
(17) "Public improvement costs" means the costs of:
(a) Design, planning, acquisition, including land acquisition, site preparation including land clearing, construction, reconstruction, rehabilitation, improvement, and installation of public improvements;
(b) Demolishing, relocating, maintaining, and operating property pending construction of public improvements;
(c) Relocating utilities as a result of public improvements;
(d) Financing public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on general indebtedness issued to finance public improvements, and any necessary reserves for general indebtedness; and
(e) Administrative expenses and feasibility studies reasonably necessary and related to these costs, including related costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of local revitalization financing to fund the costs of the public improvements.
(18) "Public improvements" means:
(a) Infrastructure improvements within the revitalization area that include:
(i) Street, road, bridge, and rail construction and maintenance;
(ii) Water and sewer system construction and improvements;
(iii) Sidewalks, streetlights, landscaping, and streetscaping;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities, recreational areas, and environmental remediation;
(vii) Stormwater and drainage management systems;
(viii) Electric, gas, fiber, and other utility infrastructures; and
(b) Expenditures for any of the following purposes:
(i) Providing environmental analysis, professional management, planning, and promotion within the revitalization area, including the management and promotion of retail trade activities in the revitalization area;
(ii) Providing maintenance and security for common or public areas in the revitalization area; or
(iii) Historic preservation activities authorized under RCW
35.21.395.
(19) "Real property" has the same meaning as in RCW
84.04.090 and also includes any privately owned improvements located on publicly owned land that are subject to property taxation.
(20)(a) "Regular property taxes" means regular property taxes as defined in RCW
84.04.140, except: (i) Regular property taxes levied by public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness; (ii) regular property taxes levied by the state for the support of common schools under RCW
84.52.065; and (iii) regular property taxes authorized by RCW
84.55.050 that are limited to a specific purpose.
(b) "Regular property taxes" do not include:
(i) Excess property tax levies that are exempt from the aggregate limits for junior and senior taxing districts as provided in RCW
84.52.043; and
(ii) Property taxes that are specifically excluded through an interlocal agreement between the sponsoring local government and a participating taxing district as set forth in RCW
39.104.060(3).
(21)(a) "Revenues from local public sources" means:
(i) The local sales and use tax amounts received as a result of interlocal agreement, local sales and use tax amounts from sponsoring local governments based on its local sales and use tax increment, and local property tax allocation revenues, which are dedicated by a sponsoring local government, participating local governments, and participating taxing districts, for payment of bonds under RCW
39.104.110 or public improvement costs within the revitalization area on a pay-as-you-go basis; and
(ii) Any other local revenues, except as provided in (b) of this subsection, including revenues derived from federal and private sources and amounts received by taxing districts as set forth by an interlocal agreement as described in RCW
39.104.060(4), which are dedicated for the payment of bonds under RCW
39.104.110 or public improvement costs within the revitalization area on a pay-as-you-go basis.
(b) Revenues from local public sources do not include any local funds derived from state grants, state loans, or any other state moneys including any local sales and use taxes credited against the state sales and use taxes imposed under chapter
82.08 or
82.12 RCW.
(22) "Revitalization area" means the geographic area adopted by a sponsoring local government and approved by the approving agency, from which local sales and use tax increments are estimated and property tax allocation revenues are derived for local revitalization financing.
(23) "Sponsoring local government" means a city, town, county, or any combination thereof, that adopts a revitalization area.
(24) "State contribution" means the lesser of:
(a) Five hundred thousand dollars;
(b) The project award amount approved by the approving agency as provided in RCW
39.104.100 or
82.14.505; or
(c) The total amount of revenues from local public sources dedicated in the preceding calendar year to the payment of principal and interest on bonds issued under RCW
39.104.110 and public improvement costs within the revitalization area on a pay-as-you-go basis. Revenues from local public sources dedicated in the preceding calendar year that are in excess of the project award may be carried forward and used in later years for the purpose of this subsection (24)(c).
(25) "State property tax increment" means the estimated amount of annual tax revenues estimated to be received by the state from the imposition of property taxes levied by the state for the support of common schools under RCW
84.52.065 on the property tax allocation revenue value, as determined by the sponsoring local government in an application under RCW
39.104.100 and updated periodically as required in RCW
82.32.765.
(26) "State sales and use tax increment" means the estimated amount of annual increase in state sales and use taxes to be received by the state from taxable activity within the revitalization area in the years following the approval of the revitalization area as determined by the sponsoring local government in an application under RCW
39.104.100 and updated periodically as required in RCW
82.32.765.
(27) "State sales and use taxes" means state retail sales and use taxes under RCW
82.08.020(1) and
82.12.020 at the rate provided in RCW
82.08.020(1), less the amount of tax distributions from all local retail sales and use taxes, other than the local sales and use taxes authorized by RCW
82.14.510 for the applicable revitalization area, imposed on the same taxable events that are credited against the state retail sales and use taxes under RCW
82.08.020(1) and
82.12.020.
(28) "Taxing district" means a government entity that levies or has levied for it regular property taxes upon real property located within a proposed or approved revitalization area.
Sec. 98. RCW
39.104.100 and 2016 c 207 s 2 are each amended to read as follows:
(1) Prior to applying to receive a state contribution, a sponsoring local government must adopt a revitalization area within the limitations in RCW
39.104.050 and in accordance with RCW
39.104.040.
(2)(a) As a condition to imposing a sales and use tax under RCW
82.14.510, a sponsoring local government must apply and be approved for a project award amount. The application must be in a form and manner prescribed by the approving agency and include, but not be limited to:
(i) Information establishing that over the period of time that the local sales and use tax will be imposed under RCW
82.14.510, increases in state and local property, sales, and use tax revenues as a result of public improvements in the revitalization area will be equal to or greater than the respective state and local contributions made under this chapter;
(ii) Information demonstrating that the sponsoring local government will meet the requirements necessary to receive the full amount of state contribution it is requesting on an annual basis;
(iii) The amount of state contribution it is requesting;
(iv) The anticipated effective date for imposing the tax under RCW
82.14.510;
(v) The estimated number of years that the tax will be imposed;
(vi) The anticipated rate of tax to be imposed under RCW
82.14.510, subject to the rate-setting conditions in RCW
82.14.510(3), should the sponsoring local government be approved for a project award; and
(vii) The anticipated date when bonds under RCW
39.104.110 will be issued.
(b) The approving agency must make available electronic forms to be used for this purpose. As part of the application, each applicant must provide to the department a copy of the adopted ordinance creating the revitalization area as required in RCW
39.104.040, copies of any adopted interlocal agreements from participating local governments, and any notices from taxing districts that elect not to be a participating taxing district.
(3)(a) Project awards must be determined on:
(i) The availability of a state contribution;
(ii) Whether the sponsoring local government would be able to generate enough tax revenue under RCW
82.14.510 to generate the amount of project award requested;
(iii) The number of jobs created;
(iv) The fit of the expected business creation or expansion within the region's preferred economic growth strategy;
(v) The speed with which the project can begin construction; and
(vi) The extent to which the project leverages nonstate funds.
(b) The total of all project awards may not exceed the annual state contribution limit.
(c) If the level of available state contribution is less than the amount requested by the next available applicant, the applicant must be given the first opportunity to accept the lesser amount of state contribution but only if the applicant produces a new application within sixty days of being notified by the approving agency and the application describes the impact on the proposed project as a result of the lesser award in addition to new application information outlined in subsection (2) of this section.
(d) Applications that are not approved for a project award due to lack of available state contribution must be retained on file by the approving agency.
(e)(i) Except as provided in (e)(ii) of this subsection, once total project awards reach the amount of annual state contribution limit, no more applications will be accepted.
(ii) Any city or county that has been approved for a project award by the department prior to January 1, 2011, and has not imposed a sales and use tax under RCW
82.14.510 by December 31, 2016, must forfeit their project award. However, amounts will not be forfeited if a city or county has sent the department a letter indicating its intent to impose the sales and use tax by July 1, 2022, before July 1, 2016. Amounts forfeited under this section must be made available for new applications under subsection (5) of this section.
(f) If the annual contribution limit is increased by making additional funds available for applicants or if funds become available from project awards forfeited under (e)(ii) of this subsection, applications will be accepted again as described in subsection (5) of this section.
(4) The approving agency must notify the sponsoring local government of approval or denial of a project award within sixty days of the approving agency's receipt of the sponsoring local government's application. Determination of a project award by the approving agency is final. Notification must include the earliest date when the tax authorized under RCW
82.14.510 may be imposed, subject to conditions in chapter
82.14 RCW. The project award notification must specify the rate requested in the application and any adjustments to the rate that would need to be made based on the project award and rate restrictions in RCW
82.14.510. The department of commerce must consult with the department of ((
revenue))
taxation in determining the amount of a project award.
(5) The department of commerce must begin accepting applications and approving project awards under this section on and after June 9, 2016. The department of commerce must notify the department of all approved project awards under this section. The department of commerce must also provide to the department any information necessary to implement the tax authorized under RCW
82.14.510.
Sec. 99. RCW
39.104.150 and 2016 c 207 s 3 are each amended to read as follows:
The department of ((
revenue))
taxation and the department of commerce may adopt any rules under chapter
34.05 RCW that the departments consider necessary for the administration of this chapter.
Sec. 100. RCW
40.07.070 and 1993 c 74 s 1 are each amended to read as follows:
A state agency may not accept advertising for placement in a state publication unless the advertiser: (1) Has obtained a certificate of registration from the department of ((
revenue))
taxation under chapter
82.32 RCW; and (2) if the advertiser is not otherwise obligated to collect and remit Washington retail sales tax or use tax, the advertiser either (a) agrees to voluntarily collect and remit the Washington use tax upon all sales to Washington consumers, or (b) agrees to provide to the department of ((
revenue))
taxation, no less frequently than quarterly, a listing of the names and addresses of Washington customers to whom sales were made. This section does not apply to advertising that does not offer items for sale or to advertising that does not solicit orders for sales.
Sec. 101. RCW
42.56.390 and 2005 c 274 s 419 are each amended to read as follows:
Names of individuals residing in emergency or transitional housing that are furnished to the department of ((
revenue))
taxation or a county assessor in order to substantiate a claim for property tax exemption under RCW
84.36.043 are exempt from disclosure under this chapter.
Sec. 102. RCW
43.05.140 and 1995 c 403 s 615 are each amended to read as follows:
The department of ((
revenue))
taxation, the department of labor and industries in respect to its duties in Title
51 RCW, and the employment security department shall develop and administer a pilot voluntary audit program. Voluntary audits can be requested by businesses from any of these agencies according to guidelines established by each agency. No penalty assessments may be made against participants in such a program except when the agency determines that either a good faith effort has not been made by the taxpayer or premium payer to comply with the law or that the taxpayer has failed to remit previously collected sales taxes to the state. The persons conducting the voluntary audit shall provide the business undergoing the voluntary audit an audit report that describes errors or omissions found and future reporting instructions. This program does not relieve a business from past or future tax or premium obligations.
Sec. 103. RCW
43.06.400 and 2013 c 225 s 605 are each amended to read as follows:
(1) Beginning in January 1984, and in January of every fourth year thereafter, the department of ((revenue))taxation must submit to the legislature prior to the regular session a listing of the amount of reduction for the current and next biennium in the revenues of the state or the revenues of local government collected by the state as a result of tax exemptions. The listing must include an estimate of the revenue lost from the tax exemption, the purpose of the tax exemption, the persons, organizations, or parts of the population which benefit from the tax exemption, and whether or not the tax exemption conflicts with another state program. The listing must include but not be limited to the following revenue sources:
(a) Real and personal property tax exemptions under Title
84 RCW;
(b) Business and occupation tax exemptions, deductions, and credits under chapter
82.04 RCW;
(c) Retail sales and use tax exemptions under chapters
82.08, 82.12, and
82.14 RCW;
(d) Public utility tax exemptions and deductions under chapter
82.16 RCW;
(e) Food fish and shellfish tax exemptions under chapter
82.27 RCW;
(f) Leasehold excise tax exemptions under chapter
82.29A RCW;
(g) Motor vehicle and special fuel tax exemptions and refunds under chapter
82.38 RCW;
(h) Aircraft fuel tax exemptions under chapter
82.42 RCW;
(i) Motor vehicle excise tax exclusions under chapter
82.44 RCW; and
(j) Insurance premiums tax exemptions under chapter
48.14 RCW.
(2) The department of ((revenue))taxation must prepare the listing required by this section with the assistance of any other agencies or departments as may be required.
(3) The department of ((revenue))taxation must present the listing to the ways and means committees of each house in public hearings.
(4) Beginning in January 1984, and every four years thereafter the governor is requested to review the report from the department of ((revenue))taxation and may submit recommendations to the legislature with respect to the repeal or modification of any tax exemption. The ways and means committees of each house and the appropriate standing committee of each house must hold public hearings and take appropriate action on the recommendations submitted by the governor.
(5) As used in this section, "tax exemption" means an exemption, exclusion, or deduction from the base of a tax; a credit against a tax; a deferral of a tax; or a preferential tax rate.
(6) For purposes of the listing due in January 2012, the department of ((revenue))taxation does not have to prepare or update the listing with respect to any tax exemption that would not be likely to increase state revenue if the exemption was repealed or otherwise eliminated.
Sec. 104. RCW
43.06.455 and 2001 c 235 s 2 are each amended to read as follows:
(1) The governor may enter into cigarette tax contracts concerning the sale of cigarettes. All cigarette tax contracts shall meet the requirements for cigarette tax contracts under this section. Except for cigarette tax contracts under RCW
43.06.460, the rates, revenue sharing, and exemption terms of a cigarette tax contract are not effective unless authorized in a bill enacted by the legislature.
(2) Cigarette tax contracts shall be in regard to retail sales in which Indian retailers make delivery and physical transfer of possession of the cigarettes from the seller to the buyer within Indian country, and are not in regard to transactions by non-Indian retailers. In addition, contracts shall provide that retailers shall not sell or give, or permit to be sold or given, cigarettes to any person under the age of eighteen years.
(3) A cigarette tax contract with a tribe shall provide for a tribal cigarette tax in lieu of all state cigarette taxes and state and local sales and use taxes on sales of cigarettes in Indian country by Indian retailers. The tribe may allow an exemption for sales to tribal members.
(4) Cigarette tax contracts shall provide that all cigarettes possessed or sold by a retailer shall bear a cigarette stamp obtained by wholesalers from a bank or other suitable stamp vendor and applied to the cigarettes. The procedures to be used by the tribe in obtaining tax stamps must include a means to assure that the tribal tax will be paid by the wholesaler obtaining such cigarettes. Tribal stamps must have serial numbers or some other discrete identification so that each stamp can be traced to its source.
(5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from:
(a) Wholesalers or manufacturers licensed to do business in the state of Washington;
(b) Out-of-state wholesalers or manufacturers who, although not licensed to do business in the state of Washington, agree to comply with the terms of the cigarette tax contract, are certified to the state as having so agreed, and who do in fact so comply. However, the state may in its sole discretion exercise its administrative and enforcement powers over such wholesalers or manufacturers to the extent permitted by law;
(c) A tribal wholesaler that purchases only from a wholesaler or manufacturer described in (a), (b), or (d) of this subsection; and
(d) A tribal manufacturer.
(6) Cigarette tax contracts shall be for renewable periods of no more than eight years. A renewal may not include a renewal of the phase-in period.
(7) Cigarette tax contracts shall include provisions for compliance, such as transport and notice requirements, inspection procedures, stamping requirements, recordkeeping, and audit requirements.
(8) Tax revenue retained by a tribe must be used for essential government services. Use of tax revenue for subsidization of cigarette and food retailers is prohibited.
(9) The cigarette tax contract may include provisions to resolve disputes using a nonjudicial process, such as mediation.
(10) The governor may delegate the power to negotiate cigarette tax contracts to the department of ((revenue))taxation. The department of ((revenue))taxation shall consult with the liquor ((control))and cannabis board during the negotiations.
(11) Information received by the state or open to state review under the terms of a contract is subject to the provisions of RCW
82.32.330.
(12) It is the intent of the legislature that the liquor ((
control))
and cannabis board and the department of ((
revenue))
taxation continue the division of duties and shared authority under chapter
82.24 RCW and therefore the liquor ((
control))
and cannabis board is responsible for enforcement activities that come under the terms of chapter
82.24 RCW.
(13) Each cigarette tax contract shall include a procedure for notifying the other party that a violation has occurred, a procedure for establishing whether a violation has in fact occurred, an opportunity to correct such violation, and a provision providing for termination of the contract should the violation fail to be resolved through this process, such termination subject to mediation should the terms of the contract so allow. A contract shall provide for termination of the contract if resolution of a dispute does not occur within twenty-four months from the time notification of a violation has occurred. Intervening violations do not extend this time period. In addition, the contract shall include provisions delineating the respective roles and responsibilities of the tribe, the department of ((revenue))taxation, and the liquor ((control))and cannabis board.
(a) "Essential government services" means services such as tribal administration, public facilities, fire, police, public health, education, job services, sewer, water, environmental and land use, transportation, utility services, and economic development;
(b) "Indian retailer" or "retailer" means (i) a retailer wholly owned and operated by an Indian tribe, (ii) a business wholly owned and operated by a tribal member and licensed by the tribe, or (iii) a business owned and operated by the Indian person or persons in whose name the land is held in trust; and
(c) "Indian tribe" or "tribe" means a federally recognized Indian tribe located within the geographical boundaries of the state of Washington.
Sec. 105. RCW
43.06.465 and 2005 c 11 s 2 are each amended to read as follows:
(1) The governor may enter into a cigarette tax agreement with the Puyallup Tribe of Indians concerning the sale of cigarettes, subject to the limitations in this section. The legislature intends to address the uniqueness of the Puyallup Indian reservation and its selling environment through pricing and compliance strategies, rather than through the imposition of equivalent taxes. It is the legislature's intent (a) that an increase in prices through a flat tax will reduce much of the competitive advantage that has historically existed due to the discrepancy in the difference between state and tribal taxes, and (b) that the tribal retailers can remain in business under the changed circumstances. The governor may delegate the authority to negotiate a cigarette tax agreement with the Puyallup Tribe to the department of ((revenue))taxation. The department of ((revenue))taxation shall consult with the liquor ((control))and cannabis board during the negotiations.
(2) Any agreement must require the tribe to impose a tax of eleven dollars and seventy-five cents on each carton of cigarettes, with ten packs a carton and twenty cigarettes per pack being the industry standard. This tax shall be prorated for cartons and packs that are nonstandard. This tribal tax is in lieu of the combined state and local sales and use taxes, and state cigarette taxes, and as such these state taxes are not imposed during the term of the agreement on any transaction governed by the agreement. The tribal tax shall increase or decrease by the same dollar amount as any increase or decrease in the state cigarette tax.
(3) The agreement must include a provision requiring the tribe to transmit thirty percent of the tribal tax revenue on all cigarette sales to the state. The funds shall be transmitted to the state treasurer on a quarterly basis for deposit by the state treasurer into the general fund. The remaining tribal tax revenue must be used for essential government services, as that term is defined in RCW
43.06.455.
(4) The agreement is limited to retail sales in which Indian retailers make delivery and physical transfer of possession of the cigarettes from the seller to the buyer within Indian country, and are not in regard to transactions by non-Indian retailers. In addition, agreements shall provide that retailers shall not sell or give, or permit to be sold or given, cigarettes to any person under the age of eighteen years.
(5)(a) The agreement must include a provision to price and sell the cigarettes so that the retail selling price is not less than the price paid by the retailer for the cigarettes.
(b) The tribal tax is in addition to the retail selling price.
(c) The agreement must include a provision to assure the price paid to the retailer includes the tribal tax, as evidenced by the tribe's cigarette stamp.
(d) If the tribe is acting as a wholesaler to tribal retailers, the retail selling price must not be less than the price the tribe paid for such cigarettes plus the tribal tax, as evidenced by the tribe's cigarette stamp.
(6)(a) The agreement must include provisions regarding enforcement and compliance by the tribe in regard to enrolled tribal members who sell cigarettes and shall describe the individual and joint responsibilities of the tribe, the department of ((revenue))taxation, and the liquor ((control))and cannabis board.
(b) The agreement must include provisions for tax administration and compliance, such as transport and notice requirements, inspection procedures, stamping requirements, recordkeeping, and audit requirements.
(c) The agreement must include provisions for sharing of information among the tribe, the department of ((revenue))taxation, and the liquor ((control))and cannabis board.
(7) The agreement must provide that all cigarettes possessed or sold by a tribal retailer shall bear a tribal cigarette stamp obtained by wholesalers from a bank or other suitable stamp vendor and applied to the cigarettes. Tribal stamps must have serial numbers or some other discrete identification so that each stamp can be traced to its source.
(8) The agreement must provide that retailers shall purchase cigarettes only from wholesalers or manufacturers licensed to do business in the state of Washington.
(9) The agreement must be for a renewable period of no more than eight years.
(10) The agreement must include provisions to resolve disputes using a nonjudicial process, such as mediation, and shall include a dispute resolution protocol. The protocol shall include a procedure for notifying the other party that a violation has occurred, a procedure for establishing whether a violation has in fact occurred, an opportunity to correct such violation, and a provision providing for termination of the agreement should the violation fail to be resolved through this process, such termination subject to mediation should the terms of the agreement so allow. An agreement must provide for termination of the agreement if resolution of a dispute does not occur within twenty-four months from the time notification of a violation has occurred. Intervening violations do not extend this time period.
(11) The agreement may not include any provisions that impact the state's share of the master settlement agreement, and as such this agreement does not authorize negotiation regarding a redistribution of the state's proceeds under the master settlement agreement.
(12) Information received by the state or open to state review under the terms of an agreement is subject to RCW
82.32.330.
(13) It is the intent of the legislature that the liquor ((
control))
and cannabis board and the department of ((
revenue))
taxation continue the division of duties and shared authority under chapter
82.24 RCW.
(14) For purposes of this section:
(a) "Indian country" has the same meaning as in chapter
82.24 RCW.
(b) "Indian retailer" or "retailer" means (i) a retailer wholly owned and operated by an Indian tribe or (ii) a business wholly owned and operated by an enrolled tribal member and licensed by the tribe.
(c) "Indian tribe" or "tribe" means the Puyallup Tribe of Indians, which is a federally recognized Indian tribe located within the geographical boundaries of the state of Washington.
Sec. 106. RCW
43.06.466 and 2008 c 228 s 1 are each amended to read as follows:
(1) The legislature finds that entering into a cigarette tax agreement with the Yakama Nation is a positive step and that such an agreement will support a stable and orderly environment on the Yakima Reservation for regulation of cigarette sales. The legislature further finds that the very special circumstances of the Yakama Nation pursuant to the Treaty with the Yakamas of 1855 (12 Stat. 951) support a cigarette tax agreement that reflects those circumstances. The legislature also finds that the provisions of the agreement with the Yakama Nation authorized by chapter 228, Laws of 2008 are reasonably necessary to prevent fraudulent transactions and place a minimal burden on the Yakama Nation, pursuant to the United States supreme court's decision in Washington v. Confederated Tribes of the Colville Indian Reservation, 447 U.S. 134 (1980).
It is the intent of the legislature that the cigarette tax agreement with the Yakama Nation reflects the uniqueness of the Yakama Nation's Treaty through specific terms that govern pricing of cigarettes, tribal cigarette tax revenue, information sharing, and administration of the agreement.
(2) For purposes of this section:
(a) "Cigarette" has the same meaning as in chapter
82.24 RCW; and
(b) "Tribal retailer" means a cigarette retailer as that term is defined in RCW
82.24.010 that is licensed by and located within the jurisdiction of the Yakama Nation and is wholly owned by the Yakama Nation or any of its enrolled members.
(3) The governor may enter into a cigarette tax agreement with the Yakama Nation, a federally recognized Indian tribe located within the geographical boundaries of the state of Washington, concerning the sale of cigarettes, subject to the provisions of this section. The governor may delegate the authority to negotiate the agreement to the department of ((revenue))taxation.
(4) The agreement must be for a renewable period of no more than eight years.
(5) All cigarettes possessed or sold by tribal retailers must be subject to the agreement, except cigarettes manufactured within the jurisdiction of the Yakama Nation by the Yakama Nation or its enrolled members.
(6) The agreement must allow the Yakama Nation to exempt its enrolled members from the tribal cigarette tax imposed under subsection (7) of this section.
(a) Sales of cigarettes exempt under this subsection must be subject to the requirements of subsection (9) of this section.
(b) The exemption must be provided only at the point of sale and reimbursement provided to the tribal retailer by the Yakama Nation.
(7) The agreement must require the Yakama Nation to impose and maintain in effect on the sale of cigarettes by tribal retailers a tax as provided in this subsection.
(a) The rate of tax will be expressed in dollars and cents and must be the percentage of tax imposed by the state under chapter
82.24 RCW for the period of the agreement as stated here:
(i) Eighty percent during the first six years;
(ii) Eighty-four percent during the seventh year; and
(iii) Eighty-seven and six-tenths percent during the eighth year.
(b) The tax must be imposed on each carton, or portion of a carton, of cigarettes, with ten packs per carton and twenty cigarettes per pack being the industry standard, and prorated for cartons and packs that are not standard.
(c) The tax must be in lieu of the combined state and local sales and use taxes, and state cigarette taxes, and, as provided in RCW
82.24.302,
82.08.0316, and
82.12.0316, the taxes imposed by chapters
82.08, 82.12, and
82.24 RCW do not apply during the term of the agreement on any transaction governed by the agreement.
(d) Throughout the term of the agreement and any renewal of the agreement, the tax must increase or decrease in correspondence with the state cigarette tax by applying the percentages in (a) of this subsection.
(8) The revenue generated by the tax imposed under subsection (7) of this section must be used by the Yakama Nation for essential government services, as that term is defined in RCW
43.06.455.
(9) All cigarettes possessed or sold by a tribal retailer must bear a tribal cigarette tax stamp as provided in this subsection.
(a) The Yakama Nation may act as its own stamp vendor, subject to meeting reasonable requirements for internal controls.
(b) The stamps must have serial numbers or other discrete identification that allow stamps to be traced to their source.
(10) The price paid by the tribal retailer to the wholesaler must not be less than the total of the price paid by the Yakama Nation or other wholesaler and the tax imposed under subsection (7) of this section.
(11) The retail selling price of cigarettes sold by tribal retailers must not be less than the price paid by them under subsection (10) of this section.
(12) Tribal retailers must not sell or give, or permit to be sold or given, cigarettes to any person under the age of eighteen years.
(13) The authority and the individual and joint responsibility of the Yakama Nation, the department of ((revenue))taxation, and the liquor ((control))and cannabis board for administration and enforcement must be specified in the agreement including, but not limited to, requirements regarding transport of cigarettes, keeping of records, reporting, notice, inspection, audit, and mutual exchange of information.
(a) Requirements must provide for sharing of information regarding transport of cigarettes in the state of Washington by the Yakama Nation or its enrolled members, reporting of information on sales to customers located outside the jurisdiction of the Yakama Nation, and authority for unannounced inspection by the state of tribal retailers to verify compliance with stamping and pricing provisions.
(b) Information received by the state or open to state review under the terms of the agreement is subject to RCW
82.32.330.
(14) The agreement must provide for resolution of disputes using a nonjudicial process, such as mediation, and establish a dispute resolution protocol that includes the following elements:
(a) A procedure for notifying the other party that a violation has occurred;
(b) A procedure for establishing whether a violation has in fact occurred;
(c) An opportunity to correct the violation;
(d) A procedure for terminating the agreement in the event of a failure to correct the violation, such termination subject to mediation should the terms of the agreement so allow; and
(e) Termination of the agreement for cause.
(15) The agreement may not include any provisions that impact the state's share of the master settlement agreement or concern redistribution of the state's proceeds under the master settlement agreement.
(16) The department of ((
revenue))
taxation may share with the Yakama Nation tax information under RCW
82.32.330 that is necessary for the Yakama Nation's compliance with the agreement.
Sec. 107. RCW
43.06.475 and 2007 c 69 s 2 are each amended to read as follows:
(1) The governor may enter into timber harvest excise tax agreements concerning the harvest of timber. All timber harvest excise tax agreements must meet the requirements for timber harvest excise tax agreements under this section. The terms of a timber harvest excise tax agreement are not effective unless the agreement is authorized in RCW
43.06.480.
(2) Timber harvest excise tax agreements shall be in regard to timber harvests on fee land within the exterior boundaries of the reservation of the Indian tribe and are not in regard to timber harvests on trust land or land owned by the tribe within the exterior boundaries of the reservation.
(3) The agreement must provide that the tribal tax shall be credited against the state and county taxes imposed under RCW
84.33.041 and
84.33.051.
(4) Tribal ordinances for timber harvest excise taxation, or other authorizing tribal laws, which implement the timber harvest excise tax agreement with the state, must incorporate or contain provisions identical to chapter
84.33 RCW that relate to the tax rates and measures, such as stumpage values.
(5) Timber harvest excise tax agreements must be for renewable periods of no more than eight years.
(6) Timber harvest excise tax agreements must include provisions for compliance, such as inspection procedures, recordkeeping, and audit requirements.
(7) Tax revenue retained by the tribe must be used for essential government services. Use of tax revenue for subsidization of timber harvesters is prohibited.
(8) The timber harvest excise tax agreement may include provisions to resolve disputes using a nonjudicial process, such as mediation.
(9) The governor may delegate the power to negotiate the timber harvest excise tax agreements to the department of ((revenue))taxation.
(10) Information received by the state or open to state review under the terms of a timber harvest excise tax agreement is subject to the provisions of RCW
82.32.330. The department of ((
revenue))
taxation may enter into an information sharing agreement with the tribe to facilitate sharing information to improve tax collection.
(11) The timber harvest excise tax agreement must include dispute resolution procedures, contract termination procedures, and provisions delineating the respective roles and responsibilities of the tribe and the department of ((revenue))taxation.
(12) The timber harvest excise tax agreement must include provisions to require taxpayers to submit information that may be required by the department of ((revenue))taxation or tribe.
(13) For the purposes of this section:
(a) "Essential government services" means services such as forestland management; protection, enhancement, regulation, and stewardship of forested land; land consolidation; tribal administration; public facilities; fire; police; public health; education; job services; sewer; water; environmental and land use; transportation; utility services; and public facilities serving economic development purposes as those terms are defined in RCW
82.14.370(3)(c);
(b) "Forestland" has the same meaning as in RCW
84.33.035;
(c) "Harvester" has the same meaning as in RCW
84.33.035;
(d) "Indian tribe" or "tribe" means a federally recognized Indian tribe located within the geographical boundaries of the state of Washington; and
(e) "Timber" has the same meaning as in RCW
84.33.035.
Sec. 108. RCW
43.06.490 and 2015 c 207 s 2 are each amended to read as follows:
(1) The governor may enter into agreements with federally recognized Indian tribes concerning marijuana. Marijuana agreements may address any marijuana-related issue that involves both state and tribal interests or otherwise has an impact on tribal-state relations. Such agreements may include, but are not limited to, the following provisions and subject matter:
(a) Criminal and civil law enforcement;
(b) Regulatory issues related to the commercial production, processing, sale, and possession of marijuana, and processed marijuana products, for both recreational and medical purposes;
(c) Medical and pharmaceutical research involving marijuana;
(d) Taxation in accordance with subsection (2) of this section;
(e) Any tribal immunities or preemption of state law regarding the production, processing, or marketing of marijuana; and
(f) Dispute resolution, including the use of mediation or other nonjudicial process.
(2)(a) Each marijuana agreement adopted under this section must provide for a tribal marijuana tax that is at least one hundred percent of the state marijuana excise tax imposed under RCW
69.50.535 and state and local sales and use taxes on sales of marijuana. Marijuana agreements apply to sales in which tribes, tribal enterprises, or tribal member-owned businesses (i) deliver or cause delivery to be made to or receive delivery from a marijuana producer, processor, or retailer licensed under chapter
69.50 RCW or (ii) physically transfer possession of the marijuana from the seller to the buyer within Indian country.
(b) The tribe may allow an exemption from tax for sales to the tribe, tribal enterprises, tribal member-owned businesses, or tribal members((
[,]))
, on marijuana grown, produced, or processed within its Indian country, or for activities to the extent they are exempt under state or federal law from the state marijuana excise tax imposed under RCW
69.50.535 or state and local sales or use taxes on sales of marijuana. Medical marijuana products used in the course of medical treatments by a clinic, hospital, or similar facility owned and operated by a federally recognized Indian tribe within its Indian country may be exempted from tax under the terms of an agreement entered into under this section.
(3) Any marijuana agreement relating to the production, processing, and sale of marijuana in Indian country, whether for recreational or medical purposes, must address the following issues:
(a) Preservation of public health and safety;
(b) Ensuring the security of production, processing, retail, and research facilities; and
(c) Cross-border commerce in marijuana.
(4) The governor may delegate the power to negotiate marijuana agreements to the state liquor ((control))and cannabis board. In conducting such negotiations, the state liquor ((control))and cannabis board must, when necessary, consult with the governor and/or the department of ((revenue))taxation.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Indian country" has the same meaning as in RCW
82.24.010.
(b) "Indian tribe" or "tribe" means a federally recognized Indian tribe located within the geographical boundaries of the state of Washington.
(c) "Marijuana" means "marijuana," "marijuana concentrates," "marijuana-infused products," and "useable marijuana," as those terms are defined in RCW
69.50.101.
Sec. 109. RCW
43.07.200 and 2011 c 298 s 24 are each amended to read as follows:
The secretary of state and the director of ((revenue))taxation may enter into agreements designating the department of ((revenue))taxation as the secretary of state's agent for issuing all or a portion of the legal entity renewals within the jurisdiction of the secretary of state.
Sec. 110. RCW
43.07.390 and 2010 1st sp.s. c 23 s 213 are each amended to read as follows:
(1)(a) The secretary of state must adopt rules requiring any entity that is required to file an annual report with the secretary of state, including entities under Titles
23,
23B,
24, and
25 RCW, to disclose: (i) Any transfer of the controlling interest in the entity; and (ii) the granting of any option to acquire an interest in the entity if the exercise of the option would result in a sale as defined in RCW
82.45.010(2).
(b) The disclosure requirement in this subsection only applies to entities owning an interest in real property located in this state.
(2) This information must be made available to the department of ((revenue))taxation upon request for the purposes of tracking the transfer of the controlling interest in entities owning real property and to determine when the real estate excise tax is applicable in such cases.
(3) For the purposes of this section, "controlling interest" has the same meaning as provided in RCW
82.45.033.
Sec. 111. RCW
43.08.290 and 2009 c 127 s 1 are each amended to read as follows:
(1) The city-county assistance account is created in the state treasury. All receipts from real estate excise tax disbursements provided under RCW
82.45.060 must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes provided in this section.
(2) Funds deposited in the city-county assistance account must be distributed equally to the cities and counties.
(3)(a) Funds distributed to counties must, to the extent possible, increase the sum of revenues under RCW
82.14.030(1) and streamlined sales tax mitigation funds received by each county to the greater of two hundred fifty thousand dollars or:
(i) For a county with an unincorporated population of one hundred thousand or less, seventy percent of the statewide weighted average per capita level of sales and use tax revenues received under RCW
82.14.030(1) with respect to taxable activity in the unincorporated areas of all counties imposing the sales and use tax authorized under RCW
82.14.030(1) in the previous calendar year, for certifications before October 1, 2009, or the previous fiscal year, for certifications on and after October 1, 2009; and
(ii) For a county with an unincorporated population of more than one hundred thousand, sixty-five percent of the statewide weighted average per capita level of sales and use tax revenues received under RCW
82.14.030(1) with respect to taxable activity in the unincorporated areas of all counties imposing the sales and use tax authorized under RCW
82.14.030(1) in the previous calendar year, for certifications before October 1, 2009, or the previous fiscal year, for certifications on and after October 1, 2009.
(b) For each county with an unincorporated population of fifteen thousand or less, the county must receive the greater of the amount in (a) of this subsection or the amount received in local government assistance provided by section 716, chapter 276, Laws of 2004.
(c) For each county with an unincorporated population of more than fifteen thousand and less than twenty-two thousand, the county must receive in calendar year 2006 and 2007 the greater of the amount provided in (a) of this subsection or the amount received in local government assistance provided by section 716, chapter 276, Laws of 2004.
(d) To the extent that revenues are insufficient to fund the distributions under this subsection, the distributions of all counties as otherwise determined under this subsection must be ratably reduced.
(e) To the extent that revenues exceed the amounts needed to fund the distributions under this subsection, the excess funds must be divided ratably based upon unincorporated population among those counties receiving funds under this subsection and imposing the tax authorized under RCW
82.14.030(2) at the maximum rate.
(4)(a) For each city with a population of five thousand or less with a per capita assessed property value less than twice the statewide average per capita assessed property value for all cities for the calendar year previous to the certification under subsection (6) of this section, the city must receive the greater of the following three amounts:
(i) An amount necessary to increase the sum of revenues under RCW
82.14.030(1) and streamlined sales tax mitigation funds received by a city up to fifty-five percent of the statewide weighted average per capita level of sales and use tax revenues received under RCW
82.14.030(1) with respect to taxable activity in all cities imposing the sales and use tax authorized under RCW
82.14.030(1) in the previous calendar year, for certifications before October 1, 2009, or the previous fiscal year, for certifications on and after October 1, 2009.
(ii) The amount received in local government assistance provided for fiscal year 2005 by section 721, chapter 25, Laws of 2003 1st sp. sess.
(iii) For a city with a per capita assessed property value less than fifty-five percent of the statewide average per capita assessed property value for all cities, an amount determined by subtracting the city's per capita assessed property value from fifty-five percent of the statewide average per capita assessed property value, dividing that amount by one thousand, and multiplying the result by the city's population.
(b) For each city with a population of more than five thousand with a per capita assessed property value less than the statewide average per capita assessed property value for all cities for the calendar year previous to the certification under subsection (6) of this section, the city must receive the greater of the following two amounts:
(i) An amount necessary to increase the sum of revenues under RCW
82.14.030(1) and streamlined sales tax mitigation funds received by a city up to fifty percent of the statewide weighted average per capita level of sales and use tax revenues received under RCW
82.14.030(1) with respect to taxable activity in all cities imposing the sales and use tax authorized under RCW
82.14.030(1) in the previous calendar year, for certifications before October 1, 2009, or the previous fiscal year, for certifications on and after October 1, 2009.
(ii) For a city with a per capita assessed property value less than fifty-five percent of the statewide average per capita assessed property value for all cities, an amount determined by subtracting the city's per capita assessed property value from fifty-five percent of the statewide average per capita assessed property value, dividing that amount by one thousand, and multiplying the result by the city's population.
(c) No city may receive an amount greater than one hundred thousand dollars a year under (a) or (b) of this subsection.
(d) To the extent that revenues are insufficient to fund the distributions under this subsection, the distributions of all cities as otherwise determined under this subsection must be ratably reduced.
(e) To the extent that revenues exceed the amounts needed to fund the distributions under this subsection, the excess funds must be divided ratably based upon population among those cities receiving funds under this subsection and imposing the tax collected under RCW
82.14.030(2) at the maximum rate.
(f) This subsection only applies to cities incorporated before August 1, 2005.
(5) The two hundred fifty thousand dollar amount in subsection (3) of this section and the one hundred thousand dollar amount in subsection (4) of this section must be increased each year beginning in calendar year 2006 by inflation as defined in RCW
84.55.005, as determined by the department of ((
revenue))
taxation.
(6)(a) Distributions under subsections (3) and (4) of this section must be made quarterly beginning on October 1, 2005, based on population as last determined by the office of financial management. The department of ((
revenue))
taxation must certify the amounts to be distributed under this section by the state treasurer. The certification must be made by October 1, 2005, for the October 1, 2005, distribution and the January 1, 2006, distribution, based on calendar year 2004 department of ((
revenue))
taxation distributions of sales and use taxes authorized under RCW
82.14.030(1). The certification must be made by March 1, 2006, for distributions beginning April 1, 2006, by March 1, 2007, for distributions beginning April 1, 2007, and by March 1, 2008, for distributions beginning April 1, 2008. The March 1st certification must be used for distributions occurring on April 1st, July 1st, and October 1st of the year of certification and on January 1st of the year following certification.
(b) By March 1, 2009, the department of ((
revenue))
taxation must certify the amounts to be distributed under this section on April 1, 2009, July 1, 2009, and October 1, 2009. The certification must be based on calendar year 2008 department of ((
revenue))
taxation distributions of sales and use taxes authorized under RCW
82.14.030(1), and the population as last determined by the office of financial management.
(c) By October 1, 2009, the department of ((
revenue))
taxation must certify the amounts to be distributed under this section on January 1, 2010, April 1, 2010, July 1, 2010, and October 1, 2010. The certification must be based on department of ((
revenue))
taxation distributions in fiscal year 2009 of sales and use taxes authorized under RCW
82.14.030(1), streamlined sales tax mitigation data for mitigation distributions authorized under RCW
82.14.495 made December 2008 through September 2009, and population as last determined by the office of financial management.
(d) By September 1, 2010, and September 1st of every year thereafter, the department of ((
revenue))
taxation must make available a preliminary certification of the amounts to be distributed under this section on January 1st, April 1st, July 1st, and October 1st of the year immediately following certification. By October 1, 2010, and October 1st of every year thereafter, the department must finalize the certification. Once finalized, no changes may be made to the certification for any reason. Certifications must be based on distributions of sales and use taxes imposed under RCW
82.14.030(1) made by the department of ((
revenue))
taxation in the fiscal year that ended during the calendar year of certification, streamlined sales tax mitigation data for mitigation distributions authorized under RCW
82.14.495 made in the fiscal year that ended during the calendar year of certification, and population as last determined by the office of financial management.
(7) All distributions to local governments from the city-county assistance account constitute increases in state distributions of revenue to political subdivisions for purposes of state reimbursement for the costs of new programs and increases in service levels under RCW
43.135.060, including any claims or litigation pending against the state on or after January 1, 2005.
(8) As used in this section, "streamlined sales tax mitigation funds" means an amount determined by the department of ((
revenue))
taxation equal to the actual mitigation distribution amount under RCW
82.14.495 received by a jurisdiction in four consecutive calendar quarters, less the mitigation distribution amount that would have been received by the jurisdiction during the same four calendar quarters had mitigation been calculated without the local sales tax authorized under RCW
82.14.030(1). If the difference is a negative amount or if a jurisdiction does not receive any mitigation distribution during the applicable four calendar quarters, then "streamlined sales tax mitigation funds" is zero.
Sec. 112. RCW
43.09.475 and 2017 3rd sp.s. c 1 s 967 are each amended to read as follows:
The performance audits of government account is hereby created in the custody of the state treasurer. Revenue identified in RCW
82.08.020(5) and
82.12.0201 shall be deposited in the account. Money in the account shall be used to fund the performance audits and follow-up performance audits under RCW
43.09.470 and shall be expended by the state auditor in accordance with chapter 1, Laws of 2006. Only the state auditor or the state auditor's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter
43.88 RCW, but an appropriation is not required for expenditures. During the 2013-2015, 2015-2017, and 2017-2019 fiscal biennia, the performance audits of government account may be appropriated for the joint legislative audit and review committee, the legislative evaluation and accountability program committee, the office of financial management, the superintendent of public instruction, the department of fish and wildlife, and audits of school districts. In addition, during the 2013-2015, 2015-2017, and 2017-2019 fiscal biennia the account may be used to fund the office of financial management's contract for the compliance audit of the state auditor and audit activities at the department of ((
revenue))
taxation. In addition, during the 2015-2017 fiscal biennium, the legislature may transfer from the performance audits of government account to the state general fund such amounts as reflect the excess fund balance of the fund.
Sec. 113. RCW
43.10.067 and 1997 c 41 s 9 are each amended to read as follows:
No officer, director, administrative agency, board, or commission of the state, other than the attorney general, shall employ, appoint or retain in employment any attorney for any administrative body, department, commission, agency, or tribunal or any other person to act as attorney in any legal or quasi legal capacity in the exercise of any of the powers or performance of any of the duties specified by law to be performed by the attorney general, except where it is provided by law to be the duty of the judge of any court or the prosecuting attorney of any county to employ or appoint such persons: PROVIDED, That RCW
43.10.040, and
43.10.065 through
43.10.080 shall not apply to the administration of the commission on judicial conduct, the state law library, the law school of the state university, the administration of the state bar act by the Washington State Bar Association, or the representation of an estate administered by the director of the department of ((
revenue))
taxation or the director's designee pursuant to chapter
11.28 RCW.
Sec. 114. RCW
43.17.010 and 2017 3rd sp.s. c 6 s 109 are each amended to read as follows:
There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fish and wildlife, (6) the department of transportation, (7) the department of licensing, (8) the department of enterprise services, (9) the department of commerce, (10) the department of veterans affairs, (11) the department of ((revenue))taxation, (12) the department of retirement systems, (13) the department of corrections, (14) the department of health, (15) the department of financial institutions, (16) the department of archaeology and historic preservation, (17) the department of children, youth, and families, and (18) the Puget Sound partnership, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.
Sec. 115. RCW
43.31C.020 and 2000 c 212 s 3 are each amended to read as follows:
(1) The department, in cooperation with the department of ((revenue))taxation, the employment security department, and the office of financial management, may approve applications submitted by local governments for an area's designation as a community empowerment zone under this chapter. The application for designation shall be in the form and manner and contain such information as the department may prescribe, provided that the application shall:
(a) Contain information sufficient for the director to determine if the criteria established in RCW
43.31C.030 have been met;
(b) Be submitted on behalf of the local government by its chief elected official, or, if none, by the governing body of the local government;
(c) Contain a five-year community empowerment plan that meets the requirements of RCW
43.31C.040; and
(d) Certify that area residents were given the opportunity to participate in the development of the five-year community empowerment strategy required under RCW
43.31C.040.
(2) No local government shall submit more than two areas to the department for possible designation as a community empowerment zone under this chapter.
(3)(a) The director may designate up to six community empowerment zones, statewide, from among the applications submitted for designation as a community empowerment zone.
(b) The director shall make determinations of designated community empowerment zones on the basis of the following factors:
(i) The strength and quality of the local government commitments to meet the needs identified in the five-year community empowerment plan required under RCW
43.31C.040.
(ii) The level of private sector commitment of additional resources and contribution to the community empowerment zone.
(iii) The potential for revitalization of the area as a result of designation as a community empowerment zone.
(iv) Other factors the director deems necessary.
(c) The determination of the director as to the areas designated as community empowerment zones shall be final.
(4) Except as provided in RCW
43.31C.050, an area that was designated a community empowerment zone before January 1, 1996, under this section, automatically and without additional action by the local government continues its designation under this chapter.
(5) The department may not designate additional community empowerment zones after January 1, 2004, but may amend or rescind designation of community empowerment zones in accordance with RCW
43.31C.050.
Sec. 116. RCW
43.42A.010 and 2014 c 68 s 2 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Agency" means the following executive branch agencies and offices of statewide elected officials:
(a) Department of agriculture;
(b) Department of archaeology and historic preservation;
(c) Department of ecology;
(d) Department of fish and wildlife;
(e) Gambling commission;
(f) Department of health;
(g) Department of labor and industries;
(h) Department of licensing;
(i) Liquor ((control))and cannabis board;
(j) Department of natural resources;
(k) Parks and recreation commission;
(l) Department of ((revenue))taxation;
(m) Department of transportation; and
(n) Utilities and transportation commission.
(2) "Office" means the office of regulatory assistance.
Sec. 117. RCW
43.62.040 and 1979 c 151 s 130 are each amended to read as follows:
The department of ((revenue))taxation or any other state officer or officials of cities, towns, or counties shall upon request of the office of financial management furnish such information, aid, and assistance as may be required by the office of financial management in the performance of its population studies. The action of the office of financial management in determining the population shall be final and conclusive.
Sec. 118. RCW
43.136.035 and 2006 c 197 s 3 are each amended to read as follows:
(1) The citizen commission for performance measurement of tax preferences is created.
(2) The commission has seven members as follows:
(a) One member is the state auditor, who is a nonvoting member;
(b) One member is the chair of the joint legislative audit and review committee, who is a nonvoting member;
(c) The chair of each of the two largest caucuses of the senate and the two largest caucuses of the house of representatives shall each appoint a member. None of these appointees may be members of the legislature; and
(d) The governor shall select the seventh member.
(3) Persons appointed by the caucus chairs should be individuals who represent a balance of perspectives and constituencies, and have a basic understanding of state tax policy, government operations, and public services. These appointees should have knowledge and expertise in performance management, fiscal analysis, strategic planning, economic development, performance assessments, or closely related fields.
(4) The commission shall elect a chair from among its voting or nonvoting members. Decisions of the commission must be made using the sufficient consensus model. For the purposes of this subsection, "sufficient consensus" means the point at which the vast majority of the commission favors taking a particular action. If the commission determines that sufficient consensus cannot be reached, a vote must be taken. The commission must allow a minority report to be included with a decision of the commission, if requested by a member of the commission.
(5) Members serve for terms of four years, with the terms expiring on June 30th on the fourth year of the term. However, in the case of the initial terms, the members appointed by the chairs of senate caucuses shall serve four-year terms, the members appointed by the chairs of house of representatives caucuses shall serve three-year terms, and the member appointed by the governor shall serve a two-year term, with each of the terms expiring on June 30th of the applicable year. Appointees may be reappointed to serve more than one term.
(6) The joint legislative audit and review committee shall provide clerical, technical, and management personnel to the commission to serve as the commission's staff. The department of ((revenue))taxation shall provide necessary support and information to the joint legislative audit and review committee.
(7) The commission shall meet at least once a quarter and may hold additional meetings at the call of the chair or by a majority vote of the members of the commission. The members of the commission shall be compensated in accordance with RCW
43.03.220 and reimbursed for travel expenses in accordance with RCW
43.03.050 and
43.03.060.
Sec. 119. RCW
43.136.075 and 2006 c 197 s 7 are each amended to read as follows:
Upon request of the citizen commission for performance measurement of tax preferences or the joint legislative audit and review committee, the department of ((revenue))taxation and the department of employment security shall provide information needed by the commission or committee to meet its responsibilities under this chapter.
Sec. 120. RCW
43.136.080 and 2013 2nd sp.s. c 13 s 1703 are each amended to read as follows:
(1) The legislative auditor, with the assistance of a task force, must make recommendations on the appropriate data and metrics that should be included in tax preference performance statements to evaluate new tax preferences, as provided under RCW
82.32.808.
(2)(a) The task force is comprised of five members: (i) One person from the department of ((revenue))taxation; (ii) one person from an association representing Washington businesses; (iii) one person from the office of financial management; (iv) the legislative auditor or a designee of the legislative auditor; and (v) an economist with substantial experience in state taxes.
(b) The task force must choose its chair from among its membership.
(3) By January 1, 2014, and in compliance with RCW
43.01.036, the legislative auditor must submit a report to the appropriate fiscal committees of the legislature the findings and recommendations of the task force.
Sec. 121. RCW
43.330.737 and 2015 c 296 s 4 are each amended to read as follows:
(1) The director shall contract with a private sector entity to:
(a) Establish a protocol for reviewing and approving the qualifications of all private sector financial services firms that meet the qualifications to participate in the marketplace;
(b) Design and operate an internet web site that includes information about how eligible employers can voluntarily participate in the marketplace;
(c) Develop marketing materials about the marketplace that can be distributed electronically, posted on agency web sites that interact with eligible employers, or inserted into mail from the department of ((revenue))taxation, department of labor and industries, employment security department, the office of minority and women's business enterprises, department of licensing, and secretary of state's division of corporations;
(d) Identify and promote existing federal and state tax credits and benefits for employers and employees that are related to encouraging retirement savings or participating in retirement plans; and
(e) Promote the benefits of retirement savings and other information that promotes financial literacy.
(2) The director shall address how rollovers are handled for eligible Washington employers that have workers in other states, and whether out-of-state employees with existing IRA's can roll them into the plans offered through the Washington small business retirement marketplace.
(3) The director shall direct the entity retained pursuant to subsection (1) of this section to assure that licensed professionals who assist their eligible business clients or employees to enroll in a plan offered through the Washington small business retirement marketplace may receive routine, market-based commissions or other compensation for their services.
(4) The director shall ensure by rule that there is objective criteria in the protocol provided in subsection (1)(a) of this section and that the protocol does not provide unfair advantage to the private sector entity which establishes the protocol.
(5) The director shall encourage the participation of private sector financial services firms in the marketplace.
Sec. 122. RCW
43.365.040 and 2012 c 189 s 5 are each amended to read as follows:
(1) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources the legislature needs information on how incentives are used.
(2) Each motion picture production receiving funding assistance under RCW
43.365.020 must report information to the department by filing a complete annual survey. The survey is due by March 31st of the year following any calendar year in which funding assistance under RCW
43.365.020 is taken. The department may extend the due date for timely filing of annual surveys under this section if failure to file was the result of circumstances beyond the control of the motion picture production receiving the funding assistance.
(3) The Washington motion picture competitiveness program established in RCW
43.365.030, in collaboration with the department and the department of ((
revenue))
taxation, and in consultation with the joint legislative audit and review committee, must develop a survey form and instructions that accompany the survey form by November 1, 2012. The instructions must provide sufficient detail to ensure consistent reporting. The survey must be designed to acquire data to allow the state to better measure the effectiveness of the program and to provide transparency of the motion picture competitiveness program. The survey must include:
(a) The total amount of taxes paid;
(b) The amount of taxes paid classified by type, which may include, but is not limited to, sales taxes, use taxes, business and occupation taxes, unemployment insurance taxes, and workers' compensation premiums;
(c) The amount of funding assistance received; and
(d) The following information for employment positions in Washington by the motion picture production receiving funding assistance, including indirect employment by contractors or other affiliates:
(i) The number of total employment positions;
(ii) The average number of hours worked by employed individuals;
(iii) The average base pay of individuals employed by motion picture companies, including contributions to health care benefits and retirement plans;
(iv) The number of employment positions that have employer-provided medical, dental, and retirement benefits; and
(v) The number of employment positions filled by Washington state residents, and residency information for employment positions filled by people from other locations.
(4) The department may request additional information necessary to measure the results of the funding assistance program, to be submitted at the same time as the survey.
(5) If a person fails to submit an annual survey under subsection (2) of this section by the due date of the report or any extension the department must declare the amount of funding assistance for the previous calendar year to be immediately due and payable. The department must assess interest, but not penalties, on the amounts due under this section. The interest is assessed at the rate provided for delinquent taxes under chapter
82.32 RCW, retroactively to the date the funding assistance was received, and accrues until the funding assistance is repaid.
(6) The department must use the information from this section to prepare summary descriptive statistics. The department must report these statistics to the legislature each even-numbered year by September 1st. The department must provide the complete annual surveys to the joint legislative audit and review committee.
(7) The motion picture competitiveness program must monitor the survey information submitted by production companies for completeness and accuracy.
Sec. 123. RCW
44.28.805 and 2005 c 450 s 3 are each amended to read as follows:
During calendar year 2008, the joint legislative audit and review committee shall review the distributions to cities and counties under RCW
43.08.290 to determine the extent to which the distributions target the needs of cities and counties for which the repeal of the motor vehicle excise tax had the greatest fiscal impact. In conducting the study, the committee shall solicit input from the cities and counties. The department of ((
revenue))
taxation and the state treasurer shall provide the committee with any data within their purview that the committee considers necessary to conduct the review. The committee shall report to the legislature the results of its findings, and any recommendations for changes to the distribution formulas under RCW
43.08.290, by December 31, 2008.
Sec. 124. RCW
44.73.015 and 2009 c 228 s 3 are each amended to read as follows:
(1) The legislative gift center is authorized to sell at retail for off-premises consumption wine produced in Washington by a licensed domestic winery. Wine sold by the legislative gift center must: (a) Be sold to individuals twenty-one years of age or older; (b) be sold for personal use and not for resale; and (c) have been purchased from a licensed wine distributor or from a manufacturer authorized to distribute wine of its own production.
(2) The legislative gift center must collect and remit to the department of ((revenue))taxation all applicable state and local taxes on sales of wine.
(3) The legislative gift center must consult with the Washington wine commission to select which Washington wines will be sold. The Washington wine commission must give consideration to award winning wines in assisting the gift center.
Sec. 125. RCW
46.12.560 and 2011 c 114 s 7 are each amended to read as follows:
(1)(a) Before accepting an application for a certificate of title, the department, county auditor or other agent, or subagent appointed by the director shall require an applicant to provide a certificate of vehicle inspection completed by the Washington state patrol or other authorized inspector if the vehicle:
(i) Was declared a total loss or salvage vehicle under the laws of this state;
(ii) Has been rebuilt after the certificate of title was returned to the department under RCW
46.12.600 and the vehicle was not kept by the registered owner at the time of the vehicle's destruction or declaration as a total loss; or
(iii) Is presented with documents from another state showing that the vehicle was a total loss or salvage vehicle and has not been reissued a valid registration certificate from that state after the declaration of total loss or salvage.
(b) A vehicle presented for inspection must have all damaged major component parts replaced or repaired to meet all requirements in law and rule before the Washington state patrol will inspect the vehicle. The inspection must verify that the vehicle identification number is genuine and agrees with the number shown on the certificate of title and registration certificate.
(c) A Washington state patrol vehicle identification number specialist must ensure that all major component parts used for the reconstruction of a salvage or rebuilt vehicle were obtained legally, and must securely attach a marking at the driver's door latch pillar indicating the vehicle was previously destroyed or declared a total loss. It is a class C felony for a person to remove the marking indicating that the vehicle was previously destroyed or declared a total loss.
(2) A person presenting a vehicle for inspection under subsection (1) of this section must provide original invoices for new and used parts from:
(a) A vendor that is registered with the department of ((revenue))taxation or a comparable agency in the jurisdiction where the major component parts were purchased for the collection of retail sales or use taxes. The invoices must include:
(i) The name and address of the business;
(ii) A description of the part or parts sold;
(iii) The date of sale; and
(iv) The amount of sale to include all taxes paid unless exempted by the department of ((revenue))taxation or a comparable agency in the jurisdiction where the major component parts were purchased;
(b) A vehicle wrecker licensed under chapter
46.80 RCW or a comparable business in the jurisdiction outside Washington state where the major component part was purchased; and
(c) Private individuals. The private individual must have the certificate of title to the vehicle where the parts were taken from unless the parts were obtained from a parts car owned by a collector. Bills of sale for parts must be notarized and include:
(i) The names and addresses of the sellers and purchasers;
(ii) A description of the vehicle and the part or parts being sold, including the make, model, year, and identification or serial number;
(iii) The date of sale; and
(iv) The purchase price of the vehicle part or parts.
(3) A person presenting a vehicle for inspection under this section who is unable to provide an acceptable release of interest or proof of ownership for a vehicle or major component part as described in this section shall apply for an ownership in doubt application described in RCW
46.12.680.
(4)(a) Before accepting an application for a certificate of title, the department, county auditor or other agent, or subagent appointed by the director shall require an applicant to provide a certificate of vehicle inspection completed by the Washington state patrol or other authorized inspector when the application is for a vehicle being titled for the first time as:
(i) Assembled;
(ii) Glider kit;
(iii) Homemade;
(iv) Kit vehicle;
(v) Street rod vehicle;
(vi) Custom vehicle; or
(vii) Subject to ownership in doubt under RCW
46.12.680.
(b) The inspection must verify that the vehicle identification number is genuine and agrees with the number shown on the certificate of title and registration certificate.
(5)(a) Before accepting an application for a certificate of title, the department, county auditor or other agent, or subagent appointed by the director shall require an applicant to provide a certificate of vehicle inspection completed by the Washington state patrol when the application is for a vehicle with a vehicle identification number that has been:
(i) Altered;
(ii) Defaced;
(iii) Obliterated;
(iv) Omitted;
(v) Removed; or
(vi) Otherwise absent.
(b) The application must include payment of the fee required in RCW
46.17.135.
(c) The Washington state patrol shall assign a new vehicle identification number to the vehicle and place or stamp the new number in a conspicuous position on the vehicle.
(d) The department shall use the new vehicle identification number assigned by the Washington state patrol as the official vehicle identification number assigned to the vehicle.
(6) The department may adopt rules as necessary to implement this section.
Sec. 126. RCW
46.12.650 and 2016 c 86 s 1 are each amended to read as follows:
(1) Releasing interest. An owner releasing interest in a vehicle shall:
(a) Sign the release of interest section provided on the certificate of title or on a release of interest document or form approved by the department;
(b) Give the certificate of title or most recent evidence of ownership to the person gaining the interest in the vehicle;
(c) Give the person gaining interest in the vehicle an odometer disclosure statement if one is required; and
(d) Report the vehicle sold as provided in subsection (2) of this section.
(2) Report of sale. An owner shall notify the department, county auditor or other agent, or subagent appointed by the director in writing within five business days after a vehicle is or has been:
(a) Sold;
(b) Given as a gift to another person;
(c) Traded, either privately or to a dealership;
(d) Donated to charity;
(e) Turned over to an insurance company or wrecking yard; or
(f) Disposed of.
(3) Report of sale properly filed. A report of sale is properly filed if it is received by the department, county auditor or other agent, or subagent appointed by the director within five business days after the date of sale or transfer and it includes:
(a) The date of sale or transfer;
(b) The owner's full name and complete, current address;
(c) The full name and complete, current address of the person acquiring the vehicle, including street name and number, and apartment number if applicable, or post office box number, city or town, and postal code;
(d) The vehicle identification number and license plate number;
(e) A date or stamp by the department showing it was received on or before the fifth business day after the date of sale or transfer; and
(f) Payment of the fees required under RCW
46.17.050.
(4) Report of sale - administration. (a) The department shall:
(i) Provide or approve reports of sale forms;
(ii) Provide a system enabling an owner to submit reports of sale electronically;
(iii) Immediately update the department's vehicle record when a report of sale has been filed;
(iv) Provide instructions on release of interest forms that allow the seller of a vehicle to release their interest in a vehicle at the same time a financial institution, as defined in RCW
30A.22.040, releases its lien on the vehicle; and
(v) Send a report to the department of ((revenue))taxation that lists vehicles for which a report of sale has been received but no transfer of ownership has taken place. The department shall send the report once each quarter.
(b) A report of sale is not proof of a completed vehicle transfer for purposes of the collection of expenses related to towing, storage, and auction of an abandoned vehicle in situations where there is no evidence indicating the buyer knew of or was a party to acceptance of the vehicle transfer. A contract signed by the prior owner and the new owner, a certificate of title, a receipt, a purchase order or wholesale order, or other legal proof or record of acceptance of the vehicle by the new owner may be provided to establish legal responsibility for the abandoned vehicle.
(5)(a) Transferring ownership. A person who has recently acquired a vehicle by purchase, exchange, gift, lease, inheritance, or legal action shall apply to the department, county auditor or other agent, or subagent appointed by the director for a new certificate of title within fifteen days of delivery of the vehicle. A secured party who has possession of the certificate of title shall either:
(i) Apply for a new certificate of title on behalf of the owner and pay the fee required under RCW
46.17.100; or
(ii) Provide all required documents to the owner, as long as the transfer was not a breach of its security agreement, to allow the owner to apply for a new certificate of title.
(b) Compliance with this subsection does not affect the rights of the secured party.
(6)
Certificate of title delivered to secured party. The certificate of title must be kept by or delivered to the person who becomes the secured party when a security interest is reserved or created at the time of the transfer of ownership. The parties must comply with RCW
46.12.675.
(7)
Penalty for late transfer. A person who has recently acquired a motor vehicle by purchase, exchange, gift, lease, inheritance, or legal action who does not apply for a new certificate of title within fifteen calendar days of delivery of the vehicle is charged a penalty, as described in RCW
46.17.140, when applying for a new certificate of title. It is a misdemeanor to fail or neglect to apply for a transfer of ownership within forty-five days after delivery of the vehicle. The misdemeanor is a single continuing offense for each day that passes regardless of the number of days that have elapsed following the forty-five day time period.
(8) Penalty for late transfer - exceptions. The penalty is not charged if the delay in application is due to at least one of the following:
(a) The department requests additional supporting documents;
(b) The department, county auditor or other agent, or subagent fails to perform or is neglectful;
(c) The owner is prevented from applying due to an illness or extended hospitalization;
(d) The legal owner fails or neglects to release interest;
(e) The owner did not know of the filing of a report of sale by the previous owner and signs an affidavit to the fact; or
(f) The department finds other conditions exist that adequately explain the delay.
(9) Review and issue. The department shall review applications for certificates of title and issue certificates of title when it has determined that all applicable provisions of law have been complied with.
(10) Rules. The department may adopt rules as necessary to implement this section.
Sec. 127. RCW
46.12.695 and 2010 c 161 s 324 are each amended to read as follows:
(1) A person who applies for an original certificate of title for a kit vehicle shall provide:
(a) The manufacturer's certificate of origin or an equivalent document if the kit vehicle is a new manufactured vehicle kit or body kit;
(b) The certificate of title or a certified copy or equivalent document for the frame;
(c) Proof of ownership for all major parts used in the construction of the vehicle. Major parts include the frame, engine, axles, transmission, and any other parts that carry vehicle identification numbers;
(d) Bills of sale or invoices for all major components used in the construction of the vehicle. The bills of sale must be notarized unless the vendor is registered with the department of ((revenue))taxation for the collection of retail sales or use tax and must include:
(i) The names and addresses of the seller and purchaser;
(ii) A description of the vehicle or part being sold, including the make, model, and identification or serial number or the yard number if from a wrecking yard;
(iii) The date of sale; and
(iv) The purchase price of the vehicle or part;
(e) A certificate of vehicle inspection completed by the Washington state patrol or other authorized inspector verifying the vehicle identification number, and year and make when applicable. A Washington state patrol vehicle identification number inspector must ensure that all parts are documented by certificates of title, notarized bills of sale, or business receipts, such as those obtained from a wrecking yard purchase;
(f) A completed declaration of value form to determine the value for excise tax purposes if the purchase cost and year is unknown or incomplete;
(g) Payment of use tax on the frame and all component parts used, unless proof of payment of the sales or use tax is submitted; and
(h) An odometer disclosure statement on all originals and transfers of certificates of title for kit vehicles under ten years old, unless otherwise exempt by law.
(2) If the frame from a donor vehicle is used and the remainder of the donor vehicle is to be sold or destroyed, the certificate of title is required as an ownership document to the buyer. The department may make a certified copy of the certificate of title for documentation of the frame for this transaction.
(3) When accepting an application for an original certificate of title for a kit vehicle, the department, county auditor or other agent, or subagent appointed by the director shall:
(a) Use the vehicle identification number provided on the manufacturer's certificate of origin. If the vehicle identification number is not available, the Washington state patrol shall assign a vehicle identification number at the time of inspection;
(b) Use the actual model year provided on the manufacturer's certificate of origin as the model year. This is not the model year of the vehicle being replicated;
(c) Record the make as "KITV";
(d) Record in the series and body designation a discrete vehicle model; and
(e) Assign a use class identifying the actual use of the vehicle, such as a passenger car or truck.
(4) A kit vehicle may be registered under RCW
46.18.220 as a street rod vehicle if the vehicle is manufactured to have the same appearance as a similar vehicle manufactured before 1949. Kit vehicles must comply with chapter 204-10 WAC unless the kit vehicle is registered under RCW
46.18.220.
(5) A kit vehicle is exempt from the welding requirements under WAC 204-10-022(8) if, upon application for a certificate of title, the owner furnishes documentation from the manufacturer of the vehicle frame that informs the owner that the welding on the frame was not completed by a certified welder and that the structural strength of the frame has not been certified by an engineer as meeting the applicable federal motor vehicle safety standards set under 49 C.F.R. Sec. 571.201, 571.214, 571.216, and 571.220 through 571.224, and the applicable SAE standards.
(6) The department may not deny a certificate of title to an applicant who completes the requisite application, complies with this section, and pays the requisite titling fees and taxes.
Sec. 128. RCW
46.37.427 and 2015 3rd sp.s. c 44 s 210 are each amended to read as follows:
Beginning July 1, 2016:
(1)(a) In addition to all other fees imposed on the retail sale of tires, a five dollar fee is imposed on the retail sale of each new tire sold that contains studs. For the purposes of this subsection, "new tire sold that contains studs" means a tire that is manufactured for vehicle purposes and contains metal studs, and does not include bicycle tires or retreaded vehicle tires.
(b) The five dollar fee must be paid by the buyer to the seller, and each seller must collect from the buyer the full amount of the fee. The fee collected from the buyer by the seller must be paid to the department of ((
revenue))
taxation in accordance with RCW
82.32.045; however, the seller retains ten percent of the fee collected.
(c) The portion of the fee paid to the department of ((
revenue))
taxation under (b) of this subsection must be deposited in the motor vehicle fund created under RCW
46.68.070.
(2) The fee to be collected by the seller, less the ten percent that the seller retains as specified in subsection (1)(b) of this section, must be held in trust by the seller until paid to the department of ((revenue))taxation, and any seller who appropriates or converts the fee collected to any use other than the payment of the fee on the due date is guilty of a gross misdemeanor.
(3) Any seller that fails to collect the fee imposed under this section or, having collected the fee, fails to pay it to the department of ((revenue))taxation by the date due, whether such failure is the result of the seller or the result of acts or conditions beyond the seller's control, is personally liable to the state for the amount of the fee.
(4) The amount of the fee, until paid by the buyer to the seller or to the department of ((revenue))taxation, constitutes a debt from the buyer to the seller. Any seller who fails or refuses to collect the fee as required with the intent to violate this section or to gain some advantage or benefit and any buyer who refuses to pay the fee due is guilty of a misdemeanor.
(5) The department of ((revenue))taxation must collect on the business excise tax return from the businesses selling new tires that contain studs at retail the number of tires sold and the fee imposed under this section. The department of ((revenue))taxation must incorporate into its audit cycle a reconciliation of the number of tires sold and the amount of revenue collected by the businesses selling new tires that contain studs.
(6) All other applicable provisions of chapter
82.32 RCW have full force and application with respect to the fee imposed under this section.
(7) The department of ((revenue))taxation must administer this section.
Sec. 129. RCW
46.68.124 and 2001 c 212 s 28 are each amended to read as follows:
(1) The equivalent population for each county shall be computed as the sum of the population residing in the county's unincorporated area plus twenty-five percent of the population residing in the county's incorporated area. Population figures required for the computations in this subsection shall be certified by the director of the office of financial management on or before July 1st of each odd-numbered year.
(2) The total annual road cost for each county shall be computed as the sum of one twenty-fifth of the total estimated county road replacement cost, plus the total estimated annual maintenance cost. Appropriate costs for bridges and ferries shall be included. The county road administration board shall be responsible for establishing a uniform system of roadway categories for both maintenance and construction and also for establishing a single statewide cost per mile rate for each roadway category. The total annual cost for each county will be based on the established statewide cost per mile and associated mileage for each category. The mileage to be used for these computations shall be as shown in the county road log as maintained by the county road administration board as of July 1, 1985, and each two years thereafter. Each county shall be responsible for submitting changes, corrections, and deletions as regards the county road log to the county road administration board. Such changes, corrections, and deletions shall be subject to verification and approval by the county road administration board prior to inclusion in the county road log.
(3) The money need factor for each county shall be the county's total annual road cost less the following four amounts:
(a) One-half the sum of the actual county road tax levied upon the valuation of all taxable property within the county road districts pursuant to RCW
36.82.040, including any amount of such tax diverted under chapter
39.89 RCW, for the two calendar years next preceding the year of computation of the allocation amounts as certified by the department of ((
revenue))
taxation;
(b) One-half the sum of all funds received by the county road fund from the federal forest reserve fund pursuant to RCW
28A.520.010 and
28A.520.020 during the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer;
(c) One-half the sum of timber excise taxes received by the county road fund pursuant to chapter
84.33 RCW in the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer;
(d) One-half the sum of motor vehicle license fees and motor vehicle and special fuel taxes refunded to the county, pursuant to RCW
46.68.080 during the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer.
(4) The state treasurer and the department of ((revenue))taxation shall furnish to the county road administration board the information required by subsection (3) of this section on or before July 1st of each odd-numbered year.
(5) The county road administration board, shall compute and provide to the counties the allocation factors of the several counties on or before September 1st of each year based solely upon the sources of information herein before required: PROVIDED, That the allocation factor shall be held to a level not more than five percent above or five percent below the allocation factor in use during the previous calendar year. Upon computation of the actual allocation factors of the several counties, the county road administration board shall provide such factors to the state treasurer to be used in the computation of the counties' fuel tax allocation for the succeeding calendar year. The state treasurer shall adjust the fuel tax allocation of each county on January 1st of every year based solely upon the information provided by the county road administration board.
Sec. 130. RCW
46.68.250 and 2010 c 161 s 1129 are each amended to read as follows:
The vehicle licensing fraud account is created in the state treasury. From penalties and fines imposed under RCW
46.16A.030,
47.68.255, and
88.02.400, an amount equal to the taxes and fees owed shall be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for vehicle license fraud enforcement and collections by the Washington state patrol and the department of ((
revenue))
taxation.
Sec. 131. RCW
46.70.021 and 2011 c 96 s 36 are each amended to read as follows:
(1) It is unlawful for any person, firm, or association to act as a vehicle dealer or vehicle manufacturer, to engage in business as such, serve in the capacity of such, advertise himself, herself, or themselves as such, solicit sales as such, or distribute or transfer vehicles for resale in this state, without first obtaining and holding a current license as provided in this chapter, unless the title of the vehicle is in the name of the seller.
(2) It is unlawful for any person other than a licensed vehicle dealer to display a vehicle for sale unless the registered owner or legal owner is the displayer or holds a notarized power of attorney.
(3)(a) Except as provided in (b) of this subsection, a person or firm engaged in buying and offering for sale, or buying and selling five or more vehicles in a twelve-month period, or in any other way engaged in dealer activity without holding a vehicle dealer license, is guilty of a gross misdemeanor, and upon conviction subject to a fine of up to five thousand dollars for each violation and up to three hundred sixty-four days in jail.
(b) A second offense is a class C felony punishable under chapter
9A.20 RCW.
(4) A violation of this section is also a per se violation of chapter
19.86 RCW and is considered a deceptive practice.
(5) The department of licensing, the Washington state patrol, the attorney general's office, and the department of ((revenue))taxation shall cooperate in the enforcement of this section.
(6) A distributor, factory branch, or factory representative shall not be required to have a vehicle manufacturer license so long as the vehicle manufacturer so represented is properly licensed pursuant to this chapter.
(7) Nothing in this chapter prohibits financial institutions from cooperating with vehicle dealers licensed under this chapter in dealer sales or leases. However, financial institutions shall not broker vehicles and cooperation is limited to organizing, promoting, and financing of such dealer sales or leases.
Sec. 132. RCW
46.70.101 and 2011 c 171 s 91 are each amended to read as follows:
The director may by order deny, suspend, or revoke the license of any vehicle dealer or vehicle manufacturer or, in lieu thereof or in addition thereto, may by order assess monetary penalties of a civil nature not to exceed one thousand dollars per violation, if the director finds that the order is in the public interest and that the applicant or licensee:
(1) In the case of a vehicle dealer:
(a) The applicant or licensee, or any partner, officer, director, owner of ten percent or more of the assets of the firm, or managing employee:
(i) Was the holder of a license issued pursuant to this chapter, which was revoked for cause and never reissued by the department, or which license was suspended for cause and the terms of the suspension have not been fulfilled or which license was assessed a civil penalty and the assessed amount has not been paid;
(ii) Has been adjudged guilty of a crime which directly relates to the business of a vehicle dealer and the time elapsed since the adjudication is less than ten years, or suffering any judgment within the preceding five years in any civil action involving fraud, misrepresentation, or conversion. For the purposes of this section, "adjudged guilty" means in addition to a final conviction in either a state or municipal court, an unvacated forfeiture of bail or collateral deposited to secure a defendant's appearance in court, the payment of a fine, a plea of guilty, or a finding of guilt regardless of whether the sentence is deferred or the penalty is suspended;
(iii) Has knowingly or with reason to know made a false statement of a material fact in his or her application for license or any data attached thereto, or in any matter under investigation by the department;
(iv) Has knowingly, or with reason to know, provided the department with false information relating to the number of vehicle sales transacted during the past one year in order to obtain a vehicle dealer license plate;
(v) Does not have an established place of business as required in this chapter;
(vi) Refuses to allow representatives or agents of the department to inspect during normal business hours all books, records, and files maintained within this state;
(vii) Sells, exchanges, offers, brokers, auctions, solicits, or advertises a new or current model vehicle to which a factory new vehicle warranty attaches and fails to have a valid, written service agreement as required by this chapter, or having such agreement refuses to honor the terms of such agreement within a reasonable time or repudiates the same, except for sales by wholesale motor vehicle auction dealers to franchise motor vehicle dealers of the same make licensed under this title or franchise motor vehicle dealers of the same make licensed by any other state;
(viii) Is insolvent, either in the sense that their liabilities exceed their assets, or in the sense that they cannot meet their obligations as they mature;
(ix) Fails to pay any civil monetary penalty assessed by the director pursuant to this section within ten days after such assessment becomes final;
(x) Fails to notify the department of bankruptcy proceedings in the manner required by RCW
46.70.183;
(xi) Knowingly, or with reason to know, allows a salesperson employed by the dealer, or acting as their agent, to commit any of the prohibited practices set forth in subsection (1)(a) of this section and RCW
46.70.180;
(xii) Fails to have a current certificate or registration with the department of ((revenue))taxation.
(b) The applicant or licensee, or any partner, officer, director, owner of ten percent of the assets of the firm, or any employee or agent:
(i) Has failed to comply with the applicable provisions of chapter
46.12 or
46.16A RCW or this chapter or any rules and regulations adopted thereunder;
(ii) Has defrauded or attempted to defraud the state, or a political subdivision thereof of any taxes or fees in connection with the sale, lease, or transfer of a vehicle;
(iii) Has forged the signature of the registered or legal owner on a certificate of title;
(iv) Has purchased, sold, disposed of, or has in his or her possession any vehicle which he or she knows or has reason to know has been stolen or appropriated without the consent of the owner;
(v) Has willfully failed to deliver to a purchaser or owner a certificate of title to a vehicle which he or she has sold or leased;
(vi) Has committed any act in violation of RCW
46.70.090 relating to vehicle dealer license plates or manufacturer license plates;
(vii) Has committed any act in violation of RCW
46.70.180 relating to unlawful acts and practices;
(viii) Has engaged in practices inimical to the health or safety of the citizens of the state of Washington including but not limited to failure to comply with standards set by the state of Washington or the federal government pertaining to the construction or safety of vehicles, except for sales by wholesale motor vehicle auction dealers to motor vehicle dealers and vehicle wreckers licensed under this title or motor vehicle dealers licensed by any other state;
(ix) Has aided or assisted an unlicensed dealer or salesperson in unlawful activity through active or passive participation in sales, allowing use of facilities, dealer license number, or by any other means;
(x) Converts or appropriates, whether temporarily or permanently, property or funds belonging to a customer, dealer, or manufacturer, without the consent of the owner of the property or funds; or
(xi) Has sold any vehicle with actual knowledge that:
(A) It has any of the following brands on the title: "SALVAGE/REBUILT," "JUNK," or "DESTROYED"; or
(B) It has been declared totaled out by an insurance carrier and then rebuilt; or
(C) The vehicle title contains the specific comment that the vehicle is "rebuilt";
without clearly disclosing that brand or comment in writing.
(c) The licensee or any partner, officer, director, or owner of ten percent or more of the assets of the firm holds or has held any such position in any other vehicle dealership licensed pursuant to this chapter which is subject to final proceedings under this section.
(2) In the case of a manufacturer, or any partner, officer, director, or majority shareholder:
(a) Was or is the holder of a license issued pursuant to this chapter which was revoked for cause and never reissued by the department, or which license was suspended for cause and the terms of the suspension have not been fulfilled, or which license was assessed a civil penalty and the assessed amount has not been paid;
(b) Has knowingly or with reason to know, made a false statement of a material fact in his or her application for license, or any data attached thereto, or in any matter under investigation by the department;
(c) Has failed to comply with the applicable provisions of chapter
46.12 or
46.16A RCW or this chapter or any rules and regulations adopted thereunder;
(d) Has defrauded or attempted to defraud the state or a political subdivision thereof, of any taxes or fees in connection with the sale, lease, or transfer of a vehicle;
(e) Has purchased, sold, leased, disposed of, or has in his or her possession, any vehicle which he or she knows or has reason to know has been stolen or appropriated without the consent of the owner;
(f) Has committed any act in violation of RCW
46.70.090 relating to vehicle dealer license plates and manufacturer license plates;
(g) Has committed any act in violation of RCW
46.70.180 relating to unlawful acts and practices;
(h) Sells or distributes in this state or transfers into this state for resale or for lease, any new or unused vehicle to which a warranty attaches or has attached and refuses to honor the terms of such warranty within a reasonable time or repudiates the same;
(i) Fails to maintain one or more resident employees or agents to provide service or repairs to vehicles located within the state of Washington only under the terms of any warranty attached to new or unused vehicles manufactured and which are or have been sold or distributed in this state or transferred into this state for resale or for lease unless such manufacturer requires warranty service to be performed by all of its dealers pursuant to a current service agreement on file with the department;
(j) Fails to reimburse within a reasonable time any vehicle dealer within the state of Washington who in good faith incurs reasonable obligations in giving effect to warranties that attach or have attached to any new or unused vehicle sold, leased, or distributed in this state or transferred into this state for resale or for lease by any such manufacturer;
(k) Engaged in practices inimical to the health and safety of the citizens of the state of Washington including, but not limited to, failure to comply with standards set by the state of Washington or the federal government pertaining to the construction and safety of vehicles;
(l) Is insolvent either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature;
(m) Fails to notify the department of bankruptcy proceedings in the manner required by RCW
46.70.183.
Sec. 133. RCW
46.71.090 and 2015 c 86 s 201 are each amended to read as follows:
When the department of ((
revenue))
taxation issues a registration certificate under RCW
82.32.030 to an automotive repair facility, it must give written notice to the person of the requirements of this chapter in a manner prescribed by the director of ((
revenue))
taxation, including by electronic means. The department of ((
revenue))
taxation must also post information about the requirements of this chapter on its public web site.
Sec. 134. RCW
46.85.060 and 1987 c 142 s 4 are each amended to read as follows:
In the absence of an agreement or arrangement with another jurisdiction, the department may examine the laws and requirements of such jurisdiction and declare the extent and nature of exemptions, benefits and privileges to be extended to vehicles properly registered or licensed in such other jurisdiction, or to the owners of such vehicles, which shall, in the judgment of the department, be in the best interest of this state and the citizens thereof and which shall be fair and equitable to this state and the citizens thereof, and all of the same shall be determined on the basis and recognition of the benefits which accrue to the economy of this state from the uninterrupted flow of commerce. Declarations of exemptions, benefits, and privileges issued by the department shall include at least the following exemptions:
(1) Nonresident persons not employed in this state may operate a vehicle in this state that is currently licensed in another jurisdiction for a period not to exceed six months in any continuous twelve-month period.
(2) Nonresident persons employed in this state may operate vehicles not to exceed twelve thousand pounds registered gross vehicle weight that are currently licensed in another jurisdiction if no permanent, temporary, or part-time residence is maintained in this state for a period greater than six months in any continuous twelve-month period.
(3) A vehicle or a combination of vehicles, not exceeding a registered gross or combined gross vehicle weight of twelve thousand pounds, which is properly base licensed in another jurisdiction and registered to a bona fide business in that jurisdiction is not required to obtain Washington vehicle license registration except when such vehicle is owned or operated by a business or branch office of a business located in Washington.
(4) The department of licensing, after consultation with the department of ((revenue))taxation, shall adopt such rules as it deems necessary for the administration of these exemptions, benefits, and privileges.
Sec. 135. RCW
47.01.412 and 2008 c 270 s 7 are each amended to read as follows:
(1)(a) Any person involved in the construction of the state route number 520 bridge replacement and HOV project may apply for deferral of state and local sales and use taxes on the site preparation for, the construction of, the acquisition of any related machinery and equipment that will become a part of, and the rental of equipment for use in, the project.
(b) Application shall be made to the department of ((revenue))taxation in a form and manner prescribed by the department of ((revenue))taxation. The application must contain information regarding estimated or actual costs, time schedules for completion and operation, and other information required by the department of ((revenue))taxation. The department of ((revenue))taxation shall approve the application within sixty days if it meets the requirements of this section.
(2) The department of ((
revenue))
taxation shall issue a sales and use tax deferral certificate for state and local sales and use taxes imposed or authorized under chapters
82.08, 82.12, and
82.14 RCW and RCW
81.104.170 on the project.
(3) A person granted a tax deferral under this section shall begin paying the deferred taxes in the fifth year after the date certified by the department of ((revenue))taxation as the date on which the project is operationally complete. The project is operationally complete under this section when the replacement bridge is constructed and opened to traffic. The first payment is due on December 31st of the fifth calendar year after the certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.
(4) The department of ((revenue))taxation may authorize an accelerated repayment schedule upon request of a person granted a deferral under this section.
(5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of any private entity granted a deferral under this section.
(6) Applications and any other information received by the department of ((
revenue))
taxation under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
(7) For purposes of this section, "person" has the same meaning as in RCW
82.04.030 and also includes the department of transportation.
Sec. 136. RCW
47.46.060 and 2015 3rd sp.s. c 44 s 405 are each amended to read as follows:
(1) Any person, including the department of transportation and any private entity or entities, may apply for deferral of taxes on the site preparation for, the construction of, the acquisition of any related machinery and equipment that becomes a part of, and the rental of equipment for use in the state route number 16 corridor improvements project under this chapter. Application must be made to the department of ((revenue))taxation in a form and manner prescribed by the department of ((revenue))taxation. The application must contain information regarding estimated or actual costs, time schedules for completion and operation, and other information required by the department of ((revenue))taxation. The department of ((revenue))taxation must approve the application within sixty days if it meets the requirements of this section.
(2) The department of ((
revenue))
taxation must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters
82.08, 82.12, and
82.14 RCW on the project.
(3) The department of transportation or a private entity granted a tax deferral under this section must begin paying the deferred taxes in the twenty-fourth year after the date certified by the department of ((revenue))taxation as the date on which the project is operationally complete. The first payment is due on December 31st of the twenty-fourth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment must equal ten percent of the deferred tax. The project is operationally complete under this section when the collection of tolls is commenced for the state route number 16 improvements covered by the deferral.
(4) The department of ((revenue))taxation may authorize an accelerated repayment schedule upon request of the department of transportation or a private entity granted a deferral under this section.
(5) Interest may not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the private entity. Transfer of ownership does not terminate the deferral.
(6) Applications and any other information received by the department of ((
revenue))
taxation under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
Sec. 137. RCW
48.31.155 and 2007 c 80 s 12 are each amended to read as follows:
Unclaimed funds subject to distribution remaining in the liquidator's hands when he or she is ready to apply to the court for discharge, including the amount distributable to a person who is unknown or cannot be found, shall be deposited with the state department of ((revenue))taxation as unclaimed funds, and shall be paid without interest to the person entitled to them or his or her legal representative upon proof satisfactory to the state department of ((revenue))taxation of his or her right to them. An amount on deposit not claimed within six years from the discharge of the liquidator is deemed to have been abandoned and shall be escheated without formal escheat proceedings and be deposited with the state treasurer.
Sec. 138. RCW
49.48.086 and 2014 c 210 s 1 are each amended to read as follows:
(1) After a final order is issued under RCW
49.48.084, if an employer defaults in the payment of: (a) Any wages determined by the department to be owed to an employee, including interest; or (b) any civil penalty ordered by the department under RCW
49.48.083, the director may file with the clerk of any county within the state a warrant in the amount of the payment plus any filing fees. The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the employer mentioned in the warrant, the amount of payment due on it plus any filing fees, and the date when the warrant was filed. The aggregate amount of the warrant as docketed becomes a lien upon the title to, and interest in, all real and personal property of the employer against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of the clerk. The sheriff shall proceed upon the warrant in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in a court of competent jurisdiction. The warrant so docketed is sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied. The clerk of the court is entitled to a filing fee which will be added to the amount of the warrant. A copy of the warrant shall be mailed to the employer within three days of filing with the clerk.
(2)(a) The director may issue to any person, firm, corporation, other entity, municipal corporation, political subdivision of the state, a public corporation, or any agency of the state, a notice and order to withhold and deliver property of any kind when he or she has reason to believe that there is in the possession of the person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property that is or will become due, owing, or belonging to an employer upon whom a notice of assessment has been served by the department for payments or civil penalties due to the department. The effect of a notice and order is continuous from the date the notice and order is first made until the liability out of which the notice and order arose is satisfied or becomes unenforceable because of lapse of time. The department shall release the notice and order when the liability out of which the notice and order arose is satisfied or becomes unenforceable by reason of lapse of time and shall notify the person against whom the notice and order was made that the notice and order has been released.
(b) The notice and order to withhold and deliver must be served by the sheriff of the county or by the sheriff's deputy, by certified mail, return receipt requested, or by the director. A person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order. Upon service of the notice and order, if the party served possesses any property that may be subject to the claim of the department, the party shall promptly deliver the property to the director. The director shall hold the property in trust for application on the employer's indebtedness to the department, or for return without interest, in accordance with a final determination of a petition for review. In the alternative, the party shall furnish a good and sufficient surety bond satisfactory to the director conditioned upon final determination of liability. If a party served and named in the notice fails to answer the notice within the time prescribed in this section, the court may render judgment by default against the party for the full amount claimed by the director in the notice, together with costs. If a notice is served upon an employer and the property subject to it is wages, the employer may assert in the answer all exemptions provided for by chapter
6.27 RCW to which the wage earner is entitled.
(c) As an alternative to the methods of service described in this section, the department may electronically serve a financial institution with a notice and order to withhold and deliver by providing a list of its outstanding warrants, except those for which a payment agreement is in good standing, to the department of ((
revenue))
taxation. The department of ((
revenue))
taxation may include the warrants provided by the department in a notice and order to withhold and deliver served under RCW
82.32.235(3). A financial institution that is served with a notice and order to withhold and deliver under this subsection (2)(c) must answer the notice within the time period applicable to service under RCW
82.32.235(3). The department and the department of ((
revenue))
taxation may adopt rules to implement this subsection (2)(c).
(3) In addition to the procedure for collection of wages owed, including interest, and civil penalties as set forth in this section, the department may recover wages owed, including interest, and civil penalties assessed under RCW
49.48.083 in a civil action brought in a court of competent jurisdiction of the county where the violation is alleged to have occurred.
(4) Whenever any employer quits business, sells out, exchanges, or otherwise disposes of the employer's business or stock of goods, any person who becomes a successor to the business becomes liable for the full amount of any outstanding citation and notice of assessment or penalty against the employer's business under this chapter if, at the time of the conveyance of the business, the successor has: (a) Actual knowledge of the fact and amount of the outstanding citation and notice of assessment or (b) a prompt, reasonable, and effective means of accessing and verifying the fact and amount of the outstanding citation and notice of assessment from the department. If the citation and notice of assessment or penalty is not paid in full by the employer within ten days of the date of the sale, exchange, or disposal, the successor is liable for the payment of the full amount of the citation and notice of assessment or penalty, and payment thereof by the successor must, to the extent thereof, be deemed a payment upon the purchase price. If the payment is greater in amount than the purchase price, the amount of the difference becomes a debt due the successor from the employer.
(5) This section does not affect other collection remedies that are otherwise provided by law.
Sec. 139. RCW
50.04.140 and 1991 c 246 s 6 are each amended to read as follows:
Services performed by an individual for remuneration shall be deemed to be employment subject to this title unless and until it is shown to the satisfaction of the commissioner that:
(1)(a) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his or her contract of service and in fact; and
(b) Such service is either outside the usual course of business for which such service is performed, or that such service is performed outside of all the places of business of the enterprises for which such service is performed; and
(c) Such individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service.
(2) Or as a separate alternative, it shall not constitute employment subject to this title if it is shown that:
(a) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his or her contract of service and in fact; and
(b) Such service is either outside the usual course of business for which such service is performed, or that such service is performed outside of all the places of business of the enterprises for which such service is performed, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed; and
(c) Such individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or such individual has a principal place of business for the work the individual is conducting that is eligible for a business deduction for federal income tax purposes; and
(d) On the effective date of the contract of service, such individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting; and
(e) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract, such individual has established an account with the department of ((revenue))taxation, and other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington; and
(f) On the effective date of the contract of service, such individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business which the individual is conducting.
Sec. 140. RCW
50.04.145 and 2008 c 102 s 1 are each amended to read as follows:
The term "employment" shall not include services which require registration under chapter
18.27 RCW or licensing under chapter
19.28 RCW rendered by an individual when:
(1) The individual has been and will continue to be free from control or direction over the performance of the service, both under the contract of service and in fact;
(2) The service is either outside the usual course of business for which the service is performed, or the service is performed outside of all the places of business of the enterprise for which the service is performed, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed;
(3) The individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or the individual has a principal place of business for the business the individual is conducting that is eligible for a business deduction for federal income tax purposes, other than that furnished by the employer for which the business has contracted to furnish services;
(4) On the effective date of the contract of service, the individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting;
(5) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract, the individual has an active and valid certificate of registration with the department of ((revenue))taxation, and an active and valid account with any other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington;
(6) On the effective date of the contract of service, the individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business that the individual is conducting; and
(7) On the effective date of the contract of service, the individual has a valid contractor registration pursuant to chapter
18.27 RCW or an electrical contractor license pursuant to chapter
19.28 RCW.
Sec. 141. RCW
50A.04.010 and 2018 c 141 s 1 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Child" includes a biological, adopted, or foster child, a stepchild, or a child to whom the employee stands in loco parentis, is a legal guardian, or is a de facto parent, regardless of age or dependency status.
(2) "Commissioner" means the commissioner of the department or the commissioner's designee.
(3) "Department" means the employment security department.
(4)(a) "Employee" means an individual who is in the employment of an employer.
(b) "Employee" does not include employees of the United States of America.
(5) "Employee's average weekly wage" means the quotient derived by dividing the employee's total wages during the two quarters of the employee's qualifying period in which total wages were highest by twenty-six. If the result is not a multiple of one dollar, the department must round the result to the next lower multiple of one dollar.
(6)(a) "Employer" means: (i) Any individual or type of organization, including any partnership, association, trust, estate, joint stock company, insurance company, limited liability company, or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or the legal representative of a deceased person, having any person in employment or, having become an employer, has not ceased to be an employer as provided in this chapter; (ii) the state, state institutions, and state agencies; and (iii) any unit of local government including, but not limited to, a county, city, town, municipal corporation, quasi-municipal corporation, or political subdivision.
(b) "Employer" does not include the United States of America.
(7)(a) "Employment" means personal service, of whatever nature, unlimited by the relationship of master and servant as known to the common law or any other legal relationship performed for wages or under any contract calling for the performance of personal services, written or oral, express or implied. The term "employment" includes an individual's entire service performed within or without or both within and without this state, if:
(i) The service is localized in this state; or
(ii) The service is not localized in any state, but some of the service is performed in this state; and
(A) The base of operations of the employee is in the state, or if there is no base of operations, then the place from which such service is directed or controlled is in this state; or
(B) The base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
(b) "Employment" does not include:
(i) Self-employed individuals;
(ii) Services for remuneration when it is shown to the satisfaction of the commissioner that:
(A)(I) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his or her contract of service and in fact; and
(II) Such service is either outside the usual course of business for which such service is performed, or that such service is performed outside of all the places of business of the enterprises for which such service is performed; and
(III) Such individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service; or
(B) As a separate alternative:
(I) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his or her contract of service and in fact; and
(II) Such service is either outside the usual course of business for which such service is performed, or that such service is performed outside of all the places of business of the enterprises for which such service is performed, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed; and
(III) Such individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or such individual has a principal place of business for the work the individual is conducting that is eligible for a business deduction for federal income tax purposes; and
(IV) On the effective date of the contract of service, such individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting; and
(V) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract, such individual has established an account with the department of ((revenue))taxation, and other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington; and
(VI) On the effective date of the contract of service, such individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business which the individual is conducting; or
(iii) Services that require registration under chapter
18.27 RCW or licensing under chapter
19.28 RCW rendered by an individual when:
(A) The individual has been and will continue to be free from control or direction over the performance of the service, both under the contract of service and in fact;
(B) The service is either outside the usual course of business for which the service is performed, or the service is performed outside of all the places of business of the enterprise for which the service is performed, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed;
(C) The individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or the individual has a principal place of business for the business the individual is conducting that is eligible for a business deduction for federal income tax purposes, other than that furnished by the employer for which the business has contracted to furnish services;
(D) On the effective date of the contract of service, the individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting;
(E) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract, the individual has an active and valid certificate of registration with the department of ((revenue))taxation, and an active and valid account with any other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington;
(F) On the effective date of the contract of service, the individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business that the individual is conducting; and
(G) On the effective date of the contract of service, the individual has a valid contractor registration pursuant to chapter
18.27 RCW or an electrical contractor license pursuant to chapter
19.28 RCW.
(8) "Employment benefits" means all benefits provided or made available to employees by an employer, including group life insurance, health insurance, disability insurance, sick leave, annual leave, educational benefits, and pensions except benefits that are provided by a practice or written policy of an employer or through an employee benefit plan as defined in 29 U.S.C. Sec. 1002(3).
(9) "Family leave" means any leave taken by an employee from work:
(a) To participate in providing care, including physical or psychological care, for a family member of the employee made necessary by a serious health condition of the family member;
(b) To bond with the employee's child during the first twelve months after the child's birth, or the first twelve months after the placement of a child under the age of eighteen with the employee; or
(c) Because of any qualifying exigency as permitted under the federal family and medical leave act, 29 U.S.C. Sec. 2612(a)(1)(E) and 29 C.F.R. Sec. 825.126(a)(1) through (8), as they existed on October 19, 2017, for family members as defined in subsection (10) of this section.
(10) "Family member" means a child, grandchild, grandparent, parent, sibling, or spouse of an employee.
(11) "Grandchild" means a child of the employee's child.
(12) "Grandparent" means a parent of the employee's parent.
(13) "Health care provider" means: (a) A person licensed as a physician under chapter
18.71 RCW or an osteopathic physician and surgeon under chapter
18.57 RCW; (b) a person licensed as an advanced registered nurse practitioner under chapter
18.79 RCW; or (c) any other person determined by the commissioner to be capable of providing health care services.
(14) "Medical leave" means any leave taken by an employee from work made necessary by the employee's own serious health condition.
(15) "Parent" means the biological, adoptive, de facto, or foster parent, stepparent, or legal guardian of an employee or the employee's spouse, or an individual who stood in loco parentis to an employee when the employee was a child.
(16) "Period of incapacity" means an inability to work, attend school, or perform other regular daily activities because of a serious health condition, treatment of that condition or recovery from it, or subsequent treatment in connection with such inpatient care.
(17) "Premium" or "premiums" means the payments required by RCW
50A.04.115 and paid to the department for deposit in the family and medical leave insurance account under RCW
50A.04.220.
(18) "Qualifying period" means the first four of the last five completed calendar quarters or, if eligibility is not established, the last four completed calendar quarters immediately preceding the application for leave.
(19)(a) "Serious health condition" means an illness, injury, impairment, or physical or mental condition that involves:
(i) Inpatient care in a hospital, hospice, or residential medical care facility, including any period of incapacity; or
(ii) Continuing treatment by a health care provider. A serious health condition involving continuing treatment by a health care provider includes any one or more of the following:
(A) A period of incapacity of more than three consecutive, full calendar days, and any subsequent treatment or period of incapacity relating to the same condition, that also involves:
(I) Treatment two or more times, within thirty days of the first day of incapacity, unless extenuating circumstances exist, by a health care provider, by a nurse or physician's assistant under direct supervision of a health care provider, or by a provider of health care services, such as a physical therapist, under orders of, or on referral by, a health care provider; or
(II) Treatment by a health care provider on at least one occasion which results in a regimen of continuing treatment under the supervision of the health care provider;
(B) Any period of incapacity due to pregnancy, or for prenatal care;
(C) Any period of incapacity or treatment for such incapacity due to a chronic serious health condition. A chronic serious health condition is one which:
(I) Requires periodic visits, defined as at least twice a year, for treatment by a health care provider, or by a nurse under direct supervision of a health care provider;
(II) Continues over an extended period of time, including recurring episodes of a single underlying condition; and
(III) May cause episodic rather than a continuing period of incapacity, including asthma, diabetes, and epilepsy;
(D) A period of incapacity which is permanent or long term due to a condition for which treatment may not be effective. The employee or family member must be under the continuing supervision of, but need not be receiving active treatment by, a health care provider, including Alzheimer's, a severe stroke, or the terminal stages of a disease; or
(E) Any period of absence to receive multiple treatments, including any period of recovery from the treatments, by a health care provider or by a provider of health care services under orders of, or on referral by, a health care provider, either for: (I) Restorative surgery after an accident or other injury; or (II) a condition that would likely result in a period of incapacity of more than three consecutive, full calendar days in the absence of medical intervention or treatment, such as cancer, severe arthritis, or kidney disease.
(b) The requirement in (a)(i) and (ii) of this subsection for treatment by a health care provider means an in-person visit to a health care provider. The first, or only, in-person treatment visit must take place within seven days of the first day of incapacity.
(c) Whether additional treatment visits or a regimen of continuing treatment is necessary within the thirty-day period shall be determined by the health care provider.
(d) The term extenuating circumstances in (a)(ii)(A)(I) of this subsection means circumstances beyond the employee's control that prevent the follow-up visit from occurring as planned by the health care provider. Whether a given set of circumstances are extenuating depends on the facts. For example, extenuating circumstances exist if a health care provider determines that a second in-person visit is needed within the thirty-day period, but the health care provider does not have any available appointments during that time period.
(e) Treatment for purposes of (a) of this subsection includes, but is not limited to, examinations to determine if a serious health condition exists and evaluations of the condition. Treatment does not include routine physical examinations, eye examinations, or dental examinations. Under (a)(ii)(A)(II) of this subsection, a regimen of continuing treatment includes, but is not limited to, a course of prescription medication, such as an antibiotic, or therapy requiring special equipment to resolve or alleviate the health condition, such as oxygen. A regimen of continuing treatment that includes taking over-the-counter medications, such as aspirin, antihistamines, or salves, or bed rest, drinking fluids, exercise, and other similar activities that can be initiated without a visit to a health care provider, is not, by itself, sufficient to constitute a regimen of continuing treatment for purposes of this chapter.
(f) Conditions for which cosmetic treatments are administered, such as most treatments for acne or plastic surgery, are not serious health conditions unless inpatient hospital care is required or unless complications develop. Ordinarily, unless complications arise, the common cold, the flu, ear aches, upset stomach, minor ulcers, headaches other than migraines, routine dental or orthodontia problems, and periodontal disease are examples of conditions that are not serious health conditions and do not qualify for leave under this chapter. Restorative dental or plastic surgery after an injury or removal of cancerous growths are serious health conditions provided all the other conditions of this section are met. Mental illness resulting from stress or allergies may be serious health conditions, but only if all the conditions of this section are met.
(g)(i) Substance abuse may be a serious health condition if the conditions of this section are met. However, leave may only be taken for treatment for substance abuse by a health care provider or by a
(ii) Treatment for substance abuse does not prevent an employer from taking employment action against an employee. The employer may not take action against the employee because the employee has exercised his or her right to take medical leave for treatment. However, if the employer has an established policy, applied in a nondiscriminatory manner that has been communicated to all employees, that provides under certain circumstances an employee may be terminated for substance abuse, pursuant to that policy the employee may be terminated whether or not the employee is presently taking medical leave. An employee may also take family leave to care for a covered family member who is receiving treatment for substance abuse. The employer may not take action against an employee who is providing care for a covered family member receiving treatment for substance abuse.
(h) Absences attributable to incapacity under (a)(ii)(B) or (C) of this subsection qualify for leave under this chapter even though the employee or the family member does not receive treatment from a health care provider during the absence, and even if the absence does not last more than three consecutive, full calendar days. For example, an employee with asthma may be unable to report for work due to the onset of an asthma attack or because the employee's health care provider has advised the employee to stay home when the pollen count exceeds a certain level. An employee who is pregnant may be unable to report to work because of severe morning sickness.
(20) "Service is localized in this state" has the same meaning as described in RCW
50.04.120.
(21) "Spouse" means a husband or wife, as the case may be, or state registered domestic partner.
(22) "State average weekly wage" means the most recent average weekly wage calculated under RCW
50.04.355 and available on January 1st of each year.
(23) "Typical workweek hours" means:
(a) For an hourly employee, the average number of hours worked per week by an employee since the beginning of the qualifying period; and
(b) Forty hours for a salaried employee, regardless of the number of hours the salaried employee typically works.
(24) "Wage" means the same as "wages" under RCW
50.04.320(2), except that: (a) The term employment as used in RCW
50.04.320(2) is defined in this chapter; and (b) the maximum wages subject to a premium assessment are those wages as set by the commissioner under RCW
50A.04.115(4). "Wages" for purposes of elective coverage under RCW
50A.04.105 has the meaning as defined by rule.
Sec. 142. RCW
51.08.181 and 2008 c 102 s 5 are each amended to read as follows:
For the purposes of this title, any individual performing services that require registration under chapter
18.27 RCW or licensing under chapter
19.28 RCW for remuneration under an independent contract is not a worker when:
(1) The individual has been, and will continue to be, free from control or direction over the performance of the service, both under the contract of service and in fact;
(2) The service is either outside the usual course of business for which the service is performed, or the service is performed outside all of the places of business of the enterprise for which the service is performed, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed;
(3) The individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or the individual has a principal place of business for the business the individual is conducting that is eligible for a business deduction for federal income tax purposes other than that furnished by the employer for which the business has contracted to furnish services;
(4) On the effective date of the contract of service, the individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting;
(5) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract, the individual has an active and valid certificate of registration with the department of ((revenue))taxation, and an active and valid account with any other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington;
(6) On the effective date of the contract of service, the individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business which the individual is conducting; and
(7) On the effective date of the contract of service, the individual has a valid contractor registration pursuant to chapter
18.27 RCW or an electrical contractor license pursuant to chapter
19.28 RCW.
Sec. 143. RCW
51.08.195 and 2008 c 102 s 4 are each amended to read as follows:
As an exception to the definition of "employer" under RCW
51.08.070 and the definition of "worker" under RCW
51.08.180, services performed by an individual for remuneration shall not constitute employment subject to this title if it is shown that:
(1) The individual has been and will continue to be free from control or direction over the performance of the service, both under the contract of service and in fact; and
(2) The service is either outside the usual course of business for which the service is performed, or the service is performed outside all of the places of business of the enterprise for which the service is performed, or the individual is responsible, both under the contract and in fact, for the costs of the principal place of business from which the service is performed; and
(3) The individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or the individual has a principal place of business for the business the individual is conducting that is eligible for a business deduction for federal income tax purposes; and
(4) On the effective date of the contract of service, the individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a schedule of expenses with the internal revenue service for the type of business the individual is conducting; and
(5) On the effective date of the contract of service, or within a reasonable period after the effective date of the contract, the individual has established an account with the department of ((revenue))taxation, and other state agencies as required by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the state of Washington; and
(6) On the effective date of the contract of service, the individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business which the individual is conducting.
Sec. 144. RCW
53.08.090 and 1994 c 26 s 1 are each amended to read as follows:
(1) A port commission may, by resolution, authorize the managing official of a port district to sell and convey port district property of ten thousand dollars or less in value. The authority shall be in force for not more than one calendar year from the date of resolution and may be renewed from year to year. Prior to any such sale or conveyance the managing official shall itemize and list the property to be sold and make written certification to the commission that the listed property is no longer needed for district purposes. Any large block of the property having a value in excess of ten thousand dollars shall not be broken down into components of ten thousand dollars or less value and sold in the smaller components unless the smaller components be sold by public competitive bid. A port district may sell and convey any of its real or personal property valued at more than ten thousand dollars when the port commission has, by resolution, declared the property to be no longer needed for district purposes, but no property which is a part of the comprehensive plan of improvement or modification thereof shall be disposed of until the comprehensive plan has been modified to find the property surplus to port needs. The comprehensive plan shall be modified only after public notice and hearing provided by RCW
53.20.010.
Nothing in this section shall be deemed to repeal or modify procedures for property sales within industrial development districts as set forth in chapter
53.25 RCW.
(2) The ten thousand dollar figures in subsection (1) of this section shall be adjusted annually based upon the governmental price index established by the department of ((
revenue))
taxation under RCW
82.14.200.
Sec. 145. RCW
54.16.425 and 2018 c 186 s 3 are each amended to read as follows:
(1) Property owned by a public utility district that is exempt from property tax under RCW
84.36.010 is subject to an annual payment in lieu of property taxes if the property consists of a broadband network used in providing retail internet service.
(2)(a) The amount of the payment must be determined jointly and in good faith negotiation between the public utility district that owns the property and the county or counties in which the property is located.
(b) The amount agreed upon may not exceed the property tax amount that would be owed on the property comprising the broadband network used in providing retail internet service as calculated by the department of ((revenue))taxation. The public utility district must provide information necessary for the department of ((revenue))taxation to make the required valuation under this subsection. The department of ((revenue))taxation must provide the amount of property tax that would be owed on the property to the county or counties in which the broadband network is located on an annual basis.
(c) If the public utility district and a county cannot agree on the amount of the payment in lieu of taxes, either party may invoke binding arbitration by providing written notice to the other party. In the event that the amount of payment in lieu of taxes is submitted to binding arbitration, the arbitrators must consider the government services available to the public utility district's broadband network used in providing retail internet service. The public utility district and county must each select one arbitrator, the two of whom must pick a third arbitrator. Costs of the arbitration, including compensation for the arbitrators' services, must be borne equally by the parties participating in the arbitration.
(3) By April 30th of each year, a public utility district must remit the annual payment to the county treasurer of each county in which the public utility district's broadband network used in providing retail internet service is located in a form and manner required by the county treasurer.
(4) The county must distribute the amounts received under this section to all property taxing districts, including the state, in appropriate tax code areas in the same proportion as it would distribute property taxes from taxable property.
(5) By December 1, 2019, and annually thereafter, the department of ((revenue))taxation must submit a report to the appropriate legislative committees detailing the amount of payments made under this section and the amount of property tax that would be owed on the property comprising the broadband network used in providing retail internet service.
(6) The definitions in RCW
54.16.420 apply to this section.
Sec. 146. RCW
54.28.040 and 2017 c 323 s 103 are each amended to read as follows:
(1) Before May 1st of each calendar year through calendar year 2018, the department of ((revenue))taxation must compute the tax imposed by this chapter for the last preceding calendar year and notify the district of the amount thereof, which shall be payable on or before the following June 1st.
(2) For tax reporting periods beginning on or after January 1, 2018, taxpayers must report the taxes due under RCW
54.28.020 and
54.28.025 on returns as prescribed by the department of ((
revenue))
taxation. Except as otherwise provided in this subsection (2), taxes imposed in RCW
54.28.020 and
54.28.025 are due for a taxpayer at the same time as the taxpayer's payment of taxes imposed under chapters
82.04 and
82.16 RCW. The department of ((
revenue))
taxation may allow taxpayers to report and pay the taxes due under RCW
54.28.020 and
54.28.025 on an annual basis, even if they report taxes imposed under chapters
82.04 and
82.16 RCW more frequently than annually. In such cases, the taxes imposed in RCW
54.28.020 and
54.28.025 are due at the same time as the taxes under chapters
82.04 and
82.16 RCW for the taxpayer's final reporting period for the calendar year.
(3) The department of ((revenue))taxation may require persons to report such information as needed by the department to administer this chapter.
(4) Upon receipt of the amount of each tax imposed the department of ((
revenue))
taxation shall deposit the same with the state treasurer, who must deposit four percent of the revenues received under RCW
54.28.020(1) and
54.28.025(1) and all revenues received under RCW
54.28.020(2) and
54.28.025(2) in the general fund of the state and must distribute the remainder in the manner hereinafter set forth. The state treasurer must send a duplicate copy of each transmittal to the department of ((
revenue))
taxation.
Sec. 147. RCW
54.28.050 and 2017 c 323 s 104 are each amended to read as follows:
(1) Except as provided in subsection (2) of this section, the department of ((
revenue))
taxation must instruct the state treasurer, after placing thirty-seven and six-tenths percent of the taxes collected under RCW
54.28.020(1) in the state general fund to be dedicated for the benefit of the public schools, to distribute the balance collected under RCW
54.28.020(1)(a) to each county in proportion to the gross revenue from sales made within each county; and to distribute the balance collected under RCW
54.28.020(1) (b) and (c) as follows:
(a) If the entire generating facility, including reservoir, if any, is in a single county then all of the balance to the county where such generating facility is located;
(b) If any reservoir is in more than one county, then to each county in which the reservoir or any portion thereof is located a percentage equal to the percentage determined by dividing the total cost of the generating facilities, including adjacent switching facilities, into twice the cost of land and land rights acquired for any reservoir within each county, land and land rights to be defined the same as used by the federal energy regulatory commission;
(c) If the powerhouse and dam, if any, in connection with such reservoir are in more than one county, the balance must be divided sixty percent to the county in which the owning district is located and forty percent to the other county or counties or if the powerhouse and dam, if any, are owned by a joint operating agency organized under chapter
43.52 RCW, or by more than one district or are outside the county of the owning district, then to be divided equally between the counties in which such facilities are located. If all of the powerhouse and dam, if any, are in one county, then the balance must be distributed to the county in which the facilities are located.
(2) The department of ((
revenue))
taxation must instruct the state treasurer to adjust distributions under this section, in whole or in part, to account for each county's proportionate share of amounts previously distributed under this section and subsequently refunded to a public utility district under RCW
82.32.060.
(3) The provisions of this section do not apply to the distribution of taxes collected under RCW
54.28.025.
Sec. 148. RCW
54.28.055 and 2017 3rd sp.s. c 28 s 502 are each amended to read as follows:
(1) Except as provided in subsection (3) of this section, the department of ((
revenue))
taxation must instruct the state treasurer to distribute the amount collected under RCW
54.28.025(1) on the first business day of July as follows:
(a) Fifty percent to the state general fund for the support of schools; and
(b) Twenty-two percent to the counties, twenty-three percent to the cities, three percent to the fire protection districts, and two percent to the library districts.
(2) Each county, city, fire protection district, and library district must receive a percentage of the amount for distribution to counties, cities, fire protection districts, and library districts, respectively, in the proportion that the population of such district residing within the impacted area bears to the total population of all such districts residing within the impacted area. For the purposes of this chapter, the term "library district" includes only regional libraries, rural county library districts, intercounty rural library districts, and island library districts as those terms are defined in RCW
27.12.010. The population of a library district, for purposes of such a distribution, does not include any population within the library district and the impact area that also is located within a city or town.
(3) Distributions under this section must be adjusted as follows:
(a) If any distribution pursuant to subsection (1)(b) of this section cannot be made, then that share must be prorated among the state and remaining local districts.
(b) The department of ((
revenue))
taxation must instruct the state treasurer to adjust distributions under this section, in whole or in part, to account for each county's, city's, fire protection district's, and library district's proportionate share of amounts previously distributed under this section and subsequently refunded to a public utility district under RCW
82.32.060.
(4) All distributions directed by this section to be made on the basis of population must be calculated in accordance with population data as last determined by the office of financial management.
Sec. 149. RCW
54.28.125 and 2017 c 323 s 101 are each amended to read as follows:
(1) The following provisions of chapter
82.32 RCW apply with respect to the state taxes administered by the department of ((
revenue))
taxation under this chapter, unless the context clearly requires otherwise: RCW
82.32.050,
82.32.060,
82.32.070,
82.32.080,
82.32.085,
82.32.090,
82.32.100,
82.32.105,
82.32.110,
82.32.117,
82.32.120,
82.32.130,
82.32.135,
82.32.150,
82.32.160,
82.32.170,
82.32.180,
82.32.190,
82.32.200,
82.32.210,
82.32.235,
82.32.237,
82.32.240,
82.32.270,
82.32.310,
82.32.320,
82.32.330,
82.32.340,
82.32.350,
82.32.360,
82.32.410, and any other provision of chapter
82.32 RCW specifically referenced in the statutes listed in this subsection (1).
(2) Chapter
82.32 RCW also applies with respect to the state taxes administered by the department of ((
revenue))
taxation under this chapter to the extent provided in any other provision of law.
(3) The definitions in this chapter have full force and application with respect to the application of chapter
82.32 RCW to this chapter unless the context clearly requires otherwise.
Sec. 150. RCW
57.08.005 and 2009 c 253 s 1 are each amended to read as follows:
A district shall have the following powers:
(1) To acquire by purchase or condemnation, or both, all lands, property and property rights, and all water and water rights, both within and without the district, necessary for its purposes. The right of eminent domain shall be exercised in the same manner and by the same procedure as provided for cities and towns, insofar as consistent with this title, except that all assessment or reassessment rolls to be prepared and filed by eminent domain commissioners or commissioners appointed by the court shall be prepared and filed by the district, and the duties devolving upon the city treasurer are imposed upon the county treasurer;
(2) To lease real or personal property necessary for its purposes for a term of years for which that leased property may reasonably be needed;
(3) To construct, condemn and purchase, add to, maintain, and supply waterworks to furnish the district and inhabitants thereof and any other persons, both within and without the district, with an ample supply of water for all uses and purposes public and private with full authority to regulate and control the use, content, distribution, and price thereof in such a manner as is not in conflict with general law and may construct, acquire, or own buildings and other necessary district facilities. Where a customer connected to the district's system uses the water on an intermittent or transient basis, a district may charge for providing water service to such a customer, regardless of the amount of water, if any, used by the customer. District waterworks may include facilities which result in combined water supply and electric generation, if the electricity generated thereby is a by-product of the water supply system. That electricity may be used by the district or sold to any entity authorized by law to use or distribute electricity. Electricity is deemed a by-product when the electrical generation is subordinate to the primary purpose of water supply. For such purposes, a district may take, condemn and purchase, acquire, and retain water from any public or navigable lake, river or watercourse, or any underflowing water, and by means of aqueducts or pipeline conduct the same throughout the district and any city or town therein and carry it along and upon public highways, roads, and streets, within and without such district. For the purpose of constructing or laying aqueducts or pipelines, dams, or waterworks or other necessary structures in storing and retaining water or for any other lawful purpose such district may occupy the beds and shores up to the high water mark of any such lake, river, or other watercourse, and may acquire by purchase or condemnation such property or property rights or privileges as may be necessary to protect its water supply from pollution. For the purposes of waterworks which include facilities for the generation of electricity as a by-product, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owner;
(4) To purchase and take water from any municipal corporation, private person, or entity. A district contiguous to Canada may contract with a Canadian corporation for the purchase of water and for the construction, purchase, maintenance, and supply of waterworks to furnish the district and inhabitants thereof and residents of Canada with an ample supply of water under the terms approved by the board of commissioners;
(5) To construct, condemn and purchase, add to, maintain, and operate systems of sewers for the purpose of furnishing the district, the inhabitants thereof, and persons outside the district with an adequate system of sewers for all uses and purposes, public and private, including but not limited to on-site sewage disposal facilities, approved septic tanks or approved septic tank systems, on-site sanitary sewerage systems, inspection services and maintenance services for private and public on-site systems, point and nonpoint water pollution monitoring programs that are directly related to the sewerage facilities and programs operated by a district, other facilities, programs, and systems for the collection, interception, treatment, and disposal of wastewater, and for the control of pollution from wastewater with full authority to regulate the use and operation thereof and the service rates to be charged. Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer. Sewage facilities may include facilities which result in combined sewage disposal or treatment and electric or methane gas generation, except that the electricity or methane gas generated thereby is a by-product of the system of sewers. Such electricity or methane gas may be used by the district or sold to any entity authorized by law to distribute electricity or methane gas. Electricity and methane gas are deemed by-products when the electrical or methane gas generation is subordinate to the primary purpose of sewage disposal or treatment. The district may also sell surplus methane gas, which may be produced as a by-product. For such purposes a district may conduct sewage throughout the district and throughout other political subdivisions within the district, and construct and lay sewer pipe along and upon public highways, roads, and streets, within and without the district, and condemn and purchase or acquire land and rights-of-way necessary for such sewer pipe. A district may erect sewage treatment plants within or without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to protect any lakes, rivers, or watercourses and also other areas of land from pollution from its sewers or its sewage treatment plant. For the purposes of sewage facilities which include facilities that result in combined sewage disposal or treatment and electric generation where the electric generation is a by-product, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owners;
(6) The authority to construct, condemn and purchase, add to, maintain, and operate systems of reclaimed water as authorized by chapter
90.46 RCW for the purpose of furnishing the district and the inhabitants thereof with reclaimed water for all authorized uses and purposes, public and private, including with full authority to regulate the use and operation thereof and the service rates to be charged. In compliance with other sections of this chapter, a district may also provide reclaimed water services to persons outside the district;
(7)(a) To construct, condemn and purchase, add to, maintain, and operate systems of drainage for the benefit and use of the district, the inhabitants thereof, and persons outside the district with an adequate system of drainage, including but not limited to facilities and systems for the collection, interception, treatment, and disposal of storm or surface waters, and for the protection, preservation, and rehabilitation of surface and underground waters, and drainage facilities for public highways, streets, and roads, with full authority to regulate the use and operation thereof and, except as provided in (b) of this subsection, the service rates to be charged.
(b) The rate a district may charge under this section for storm or surface water sewer systems or the portion of the rate allocable to the storm or surface water sewer system of combined sanitary sewage and storm or surface water sewer systems shall be reduced by a minimum of ten percent for any new or remodeled commercial building that utilizes a permissive rainwater harvesting system. Rainwater harvesting systems shall be properly sized to utilize the available roof surface of the building. The jurisdiction shall consider rate reductions in excess of ten percent dependent upon the amount of rainwater harvested.
(c) Drainage facilities may include natural systems. Drainage facilities may include facilities which result in combined drainage facilities and electric generation, except that the electricity generated thereby is a by-product of the drainage system. Such electricity may be used by the district or sold to any entity authorized by law to distribute electricity. Electricity is deemed a by-product when the electrical generation is subordinate to the primary purpose of drainage collection, disposal, and treatment. For such purposes, a district may conduct storm or surface water throughout the district and throughout other political subdivisions within the district, construct and lay drainage pipe and culverts along and upon public highways, roads, and streets, within and without the district, and condemn and purchase or acquire land and rights-of-way necessary for such drainage systems. A district may provide or erect facilities and improvements for the treatment and disposal of storm or surface water within or without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to protect any lakes, rivers, or watercourses and also other areas of land from pollution from storm or surface waters. For the purposes of drainage facilities which include facilities that also generate electricity as a by-product, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owners;
(8) To construct, condemn, acquire, and own buildings and other necessary district facilities;
(9) To compel all property owners within the district located within an area served by the district's system of sewers to connect their private drain and sewer systems with the district's system under such penalty as the commissioners shall prescribe by resolution. The district may for such purpose enter upon private property and connect the private drains or sewers with the district system and the cost thereof shall be charged against the property owner and shall be a lien upon property served;
(10) Where a district contains within its borders, abuts, or is located adjacent to any lake, stream, groundwater as defined by RCW
90.44.035, or other waterway within the state of Washington, to provide for the reduction, minimization, or elimination of pollutants from those waters in accordance with the district's comprehensive plan, and to issue general obligation bonds, revenue bonds, local improvement district bonds, or utility local improvement bonds for the purpose of paying all or any part of the cost of reducing, minimizing, or eliminating the pollutants from these waters;
(11) Subject to subsection (7) of this section, to fix rates and charges for water, sewer, reclaimed water, and drain service supplied and to charge property owners seeking to connect to the district's systems, as a condition to granting the right to so connect, in addition to the cost of the connection, such reasonable connection charge as the board of commissioners shall determine to be proper in order that those property owners shall bear their equitable share of the cost of the system. For the purposes of calculating a connection charge, the board of commissioners shall determine the pro rata share of the cost of existing facilities and facilities planned for construction within the next ten years and contained in an adopted comprehensive plan and other costs borne by the district which are directly attributable to the improvements required by property owners seeking to connect to the system. The cost of existing facilities shall not include those portions of the system which have been donated or which have been paid for by grants. The connection charge may include interest charges applied from the date of construction of the system until the connection, or for a period not to exceed ten years, whichever is shorter, at a rate commensurate with the rate of interest applicable to the district at the time of construction or major rehabilitation of the system, or at the time of installation of the lines to which the property owner is seeking to connect. In lieu of requiring the installation of permanent local facilities not planned for construction by the district, a district may permit connection to the water and/or sewer systems through temporary facilities installed at the property owner's expense, provided the property owner pays a connection charge consistent with the provisions of this chapter and agrees, in the future, to connect to permanent facilities when they are installed; or a district may permit connection to the water and/or sewer systems through temporary facilities and collect from property owners so connecting a proportionate share of the estimated cost of future local facilities needed to serve the property, as determined by the district. The amount collected, including interest at a rate commensurate with the rate of interest applicable to the district at the time of construction of the temporary facilities, shall be held for contribution to the construction of the permanent local facilities by other developers or the district. The amount collected shall be deemed full satisfaction of the proportionate share of the actual cost of construction of the permanent local facilities. If the permanent local facilities are not constructed within fifteen years of the date of payment, the amount collected, including any accrued interest, shall be returned to the property owner, according to the records of the county auditor on the date of return. If the amount collected is returned to the property owner, and permanent local facilities capable of serving the property are constructed thereafter, the property owner at the time of construction of such permanent local facilities shall pay a proportionate share of the cost of such permanent local facilities, in addition to reasonable connection charges and other charges authorized by this section. A district may permit payment of the cost of connection and the reasonable connection charge to be paid with interest in installments over a period not exceeding fifteen years. The county treasurer may charge and collect a fee of three dollars for each year for the treasurer's services. Those fees shall be a charge to be included as part of each annual installment, and shall be credited to the county current expense fund by the county treasurer. Revenues from connection charges excluding permit fees are to be considered payments in aid of construction as defined by department of ((revenue))taxation rule. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.
Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.
A water-sewer district shall not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using water-sewer district employees unless the on-site system is connected by a publicly owned collection system to the water-sewer district's sewerage system, and the on-site system represents the first step in the sewage disposal process.
Except as otherwise provided in RCW
90.03.525, any public entity and public property, including the state of Washington and state property, shall be subject to rates and charges for sewer, water, stormwater control, drainage, and street lighting facilities to the same extent private persons and private property are subject to those rates and charges that are imposed by districts. In setting those rates and charges, consideration may be made of in-kind services, such as stream improvements or donation of property;
(12) To contract with individuals, associations and corporations, the state of Washington, and the United States;
(13) To employ such persons as are needed to carry out the district's purposes and fix salaries and any bond requirements for those employees;
(14) To contract for the provision of engineering, legal, and other professional services as in the board of commissioner's discretion is necessary in carrying out their duties;
(15) To sue and be sued;
(16) To loan and borrow funds and to issue bonds and instruments evidencing indebtedness under chapter
57.20 RCW and other applicable laws;
(17) To transfer funds, real or personal property, property interests, or services subject to RCW
57.08.015;
(18) To levy taxes in accordance with this chapter and chapters
57.04 and
57.20 RCW;
(19) To provide for making local improvements and to levy and collect special assessments on property benefited thereby, and for paying for the same or any portion thereof in accordance with chapter
57.16 RCW;
(20) To establish street lighting systems under RCW
57.08.060;
(21) To exercise such other powers as are granted to water-sewer districts by this title or other applicable laws; and
(22) To exercise any of the powers granted to cities and counties with respect to the acquisition, construction, maintenance, operation of, and fixing rates and charges for waterworks and systems of sewerage and drainage.
Sec. 151. RCW
59.18.312 and 2011 c 132 s 17 are each amended to read as follows:
(1) A landlord shall, upon the execution of a writ of restitution by the sheriff, enter and take possession of any property of the tenant found on the premises. The landlord may store the property in any reasonably secure place, including the premises, and sell or dispose of the property as provided under subsection (3) of this section. The landlord must store the property if the tenant serves a written request to do so on the landlord or the landlord's representative by any of the methods described in RCW
59.18.365 no later than three days after service of the writ. A landlord may elect to store the property without such a request unless the tenant or the tenant's representative objects to the storage of the property. If the tenant or the tenant's representative objects to the storage of the property or the landlord elects not to store the property because the tenant has not served a written request on the landlord to do so, the property shall be deposited upon the nearest public property and may not be stored by the landlord. If the landlord knows that the tenant is a person with a disability as defined in RCW
49.60.040 (as amended by chapter 317, Laws of 2007) and the disability impairs or prevents the tenant or the tenant's representative from making a written request for storage, it must be presumed that the tenant has requested the storage of the property as provided in this section unless the tenant objects in writing.
(2) Property stored under this section shall be returned to the tenant after the tenant has paid the actual or reasonable drayage and storage costs, whichever is less, or until it is sold or disposed of by the landlord in accordance with subsection (3) of this section.
(3) Prior to the sale of property stored pursuant to this section with a cumulative value of over two hundred fifty dollars, the landlord shall notify the tenant of the pending sale. After thirty days from the date the notice of the sale is mailed or personally delivered to the tenant's last known address, the landlord may sell the property, including personal papers, family pictures, and keepsakes, and dispose of any property not sold.
If the property that is being stored has a cumulative value of two hundred fifty dollars or less, then the landlord may sell or dispose of the property in the manner provided in this section, except for personal papers, family pictures, and keepsakes. Prior to the sale or disposal of property stored pursuant to this section with a cumulative value of two hundred fifty dollars or less, the landlord shall notify the tenant of the pending sale or disposal. The notice shall either be mailed to the tenant's last known address or personally delivered to the tenant. After seven days from the date the notice is mailed or delivered to the tenant, the landlord may sell or dispose of the property.
The landlord may apply any income derived from the sale of the tenant's property against moneys due the landlord for drayage and storage of the property. The amount of sale proceeds that the landlord may apply towards such costs may not exceed the actual or reasonable costs for drayage and storage of the property, whichever is less. Any excess income derived from the sale of such property shall be held by the landlord for the benefit of the tenant for a period of one year from the date of the sale. If no claim is made or action commenced by the tenant for the recovery of the excess income prior to the expiration of that period of time, then the balance shall be treated as abandoned property and deposited by the landlord with the department of ((
revenue))
taxation pursuant to chapter
63.29 RCW.
(4) Nothing in this section shall be construed as creating a right of distress for rent.
(5) When serving a tenant with a writ of restitution pursuant to RCW
59.12.100 and
59.18.410, the sheriff shall provide written notice to the tenant that: (a) Upon execution of the writ, the landlord must store the tenant's property only if the tenant serves a written request on the landlord to do so no later than three days after service of the writ; (b) the notice to the landlord requesting storage may be served by personally delivering or mailing a copy of the request to the landlord at the address identified in, or by facsimile to the facsimile number listed on, the form described under subsection (6) of this section; (c) if the tenant has not made such a written request to the landlord, the landlord may elect to either store the tenant's property or place the tenant's property on the nearest public property unless the tenant objects; (d) if the property is stored, it may not be returned to the tenant unless the tenant pays the actual or reasonable costs of drayage and storage, whichever is less, within thirty days; (e) if the tenant or the tenant's representative objects to storage of the property, it will not be stored but will be placed on the nearest public property; and (f) the landlord may sell or otherwise dispose of the property as provided in subsection (3) of this section if the landlord provides written notice to the tenant first.
(6) When serving a tenant with a writ of restitution under subsection (5) of this section, the sheriff shall also serve the tenant with a form provided by the landlord that can be used to request the landlord to store the tenant's property, which must be substantially in the following form:
REQUEST FOR STORAGE OF PERSONAL PROPERTY
. . . . . . . . . . .
Name of Plaintiff
. . . . . . . . . . .
Name(s) of Tenant(s)
I/we hereby request the landlord to store our personal property. I/we understand that I/we am/are responsible for the actual or reasonable costs of moving and storing the property, whichever is less. If I/we fail to pay these costs, the landlord may sell or dispose of the property pursuant to and within the time frame permitted under RCW
59.18.312(3).
Any notice of sale required under RCW
59.18.312(3) must be sent to the tenants at the following address:
. . . .
. . . .
. . . .
IF NO ADDRESS IS PROVIDED, NOTICE OF SALE WILL BE SENT TO THE LAST KNOWN ADDRESS OF THE TENANT(S)
Dated: . . . . . . . . . . .
. . . . . . . . . . .
Tenant-Print Name
. . . . . . . . . . .
Tenant-Print Name
This notice may be delivered or mailed to the landlord or the landlord's representative at the following address:
. . . .
. . . .
. . . .
This notice may also be served by facsimile to the landlord or the landlord's representative at:
. . . . . . . . . . .
Facsimile Number
IMPORTANT
IF YOU WANT YOUR LANDLORD TO STORE YOUR PROPERTY, THIS WRITTEN REQUEST MUST BE RECEIVED BY THE LANDLORD NO LATER THAN THREE (3) DAYS AFTER THE SHERIFF SERVES THE WRIT OF RESTITUTION. YOU SHOULD RETAIN PROOF OF SERVICE.
Sec. 152. RCW
59.18.595 and 2015 c 264 s 3 are each amended to read as follows:
(1) In the event of the death of a tenant who is the sole occupant of the dwelling unit:
(a) The landlord, upon learning of the death of the tenant, shall promptly mail or personally deliver written notice to any known personal representative, known designated person, emergency contact identified by the tenant on the rental application, known person reasonably believed to be a successor of the tenant as defined in RCW
11.62.005, and to the deceased tenant at the address of the dwelling unit. If the landlord knows of any address used for the receipt of electronic communications, the landlord shall email the notice to that address as well. The notice must include:
(i) The name of the deceased tenant and address of the dwelling unit;
(ii) The approximate date of the deceased tenant's death;
(iii) The rental amount and date through which rent is paid;
(iv) A statement that the tenancy will terminate fifteen days from the date the notice is mailed or personally delivered or the date through which rent is paid, whichever comes later, unless during that time period a tenant representative makes arrangements with the landlord to pay rent in advance for no more than sixty days from the date of the tenant's death to allow a tenant representative to arrange for orderly removal of the tenant's property. At the end of the period for which the rent has been paid pursuant to this subsection, the tenancy ends;
(v) A statement that failure to remove the tenant's property before the tenancy is terminated or ends as provided in (a)(iv) of this subsection will allow the landlord to enter the dwelling unit and take possession of any property found on the premises, store it in a reasonably secure place, and charge the actual or reasonable costs, whichever is less, of drayage and storage of the property, and after service of a second notice sell or dispose of the property as provided in subsection (3) of this section; and
(vi) A copy of any designation executed by the tenant pursuant to RCW
59.18.590;
(b) The landlord shall turn over possession of the tenant's property to a tenant representative if a request is made in writing within the specified time period or any subsequent date agreed to by the parties;
(c) Within fourteen days after the removal of the property by the tenant representative, the landlord shall refund any unearned rent and shall give a full and specific statement of the basis for retaining any deposit together with the payment of any refund due the deceased tenant under the terms and conditions of the rental agreement to the tenant representative; and
(d) Any tenant representative who removes property from the tenant's dwelling unit or the premises must, at the time of removal, provide to the landlord an inventory of the removed property and signed acknowledgment that he or she has only been given possession and not ownership of the property.
(2) A landlord shall send a second written notice before selling or disposing of a deceased tenant's property.
(a) If the tenant representative makes arrangements with the landlord to pay rent in advance as provided in subsection (1)(a)(iv) of this section, the landlord shall mail a second written notice to any known personal representative, known designated person, emergency contact identified by the tenant on the rental application, known person reasonably believed to be a successor of the tenant as defined in RCW
11.62.005, and to the deceased tenant at the dwelling unit. The second notice must include:
(i) The name, address, and phone number or other contact information for the tenant representative, if known, who made the arrangements to pay rent in advance;
(ii) The amount of rent paid in advance and date through which rent was paid; and
(iii) A statement that the landlord may sell or dispose of the property on or after the date through which rent is paid or at least forty-five days after the second notice is mailed, whichever comes later, if a tenant representative does not claim and remove the property in accordance with this subsection.
(b) If the landlord places the property in storage pursuant to subsection (1)(a) of this section, the landlord shall mail a second written notice, unless a written notice under (a) of this subsection has already been provided, to any known personal representative, known designated person, emergency contact identified by the tenant on the rental application, known person reasonably believed to be a successor of the tenant as defined in RCW
11.62.005, and to the deceased tenant at the dwelling unit. The second notice must state that the landlord may sell or dispose of the property on or after a specified date that is at least forty-five days after the second notice is mailed if a tenant representative does not claim and remove the property in accordance with this subsection.
(c) The landlord shall turn over possession of the tenant's property to a tenant representative if a written request is made within the applicable time periods after the second notice is mailed, provided the tenant representative: (i) Pays the actual or reasonable costs, whichever is less, of drayage and storage of the property, if applicable; and (ii) gives the landlord an inventory of the property and signs an acknowledgment that he or she has only been given possession and not ownership of the property.
(d) Within fourteen days after the removal of the property by the tenant representative, the landlord shall refund any unearned rent and shall give a full and specific statement of the basis for retaining any deposit together with the payment of any refund due the deceased tenant under the terms and conditions of the rental agreement to the tenant representative.
(3)(a) If a tenant representative has not contacted the landlord or removed the deceased tenant's property within the applicable time periods under this section, the landlord may sell or dispose of the deceased tenant's property, except for personal papers and personal photographs, as provided in this subsection.
(i) If the landlord reasonably estimates the fair market value of the stored property to be more than one thousand dollars, the landlord shall arrange to sell the property in a commercially reasonable manner and may dispose of any property that remains unsold in a reasonable manner.
(ii) If the value of the stored property does not meet the threshold provided in (a)(i) of this subsection, the landlord may dispose of the property in a reasonable manner.
(iii) The landlord may apply any income derived from the sale of the property pursuant to this section against any costs of sale and moneys due the landlord, including actual or reasonable costs, whichever is less, of drayage and storage of the deceased tenant's property. Any excess income derived from the sale of such property under this section must be held by the landlord for a period of one year from the date of sale, and if no claim is made for recovery of the excess income before the expiration of that one-year period, the balance must be treated as abandoned property and deposited by the landlord with the department of ((
revenue))
taxation pursuant to chapter
63.29 RCW.
(b) Personal papers and personal photographs that are not claimed by a tenant representative within ninety days after a sale or other disposition of the deceased tenant's other property shall be either destroyed or held for the benefit of any successor of the deceased tenant as defined in RCW
11.62.005.
(c) No landlord or employee of a landlord, or his or her family members, may acquire, directly or indirectly, the property sold pursuant to (a)(i) of this subsection or disposed of pursuant to (a)(ii) of this subsection.
(4) Upon learning of the death of the tenant, the landlord may enter the deceased tenant's dwelling unit and immediately dispose of any perishable food, hazardous materials, and garbage found on the premises and turn over animals to a tenant representative or to an animal control officer, humane society, or other individual or organization willing to care for the animals.
(5) Any notices sent by the landlord under this section must include a mailing address, any address used for the receipt of electronic communications, and a telephone number of the landlord.
(6) If a landlord knowingly violates this section, the landlord is liable to the deceased tenant's estate for actual damages. The prevailing party in any action pursuant to this subsection may recover costs and reasonable attorneys' fees.
(7) A landlord who complies with this section is relieved from any liability relating to the deceased tenant's property.
Sec. 153. RCW
59.30.010 and 2011 c 298 s 29 are each amended to read as follows:
(1) The legislature finds that there are factors unique to the relationship between a manufactured/mobile home tenant and a manufactured/mobile home community landlord. Once occupancy has commenced, the difficulty and expense in moving and relocating a manufactured/mobile home can affect the operation of market forces and lead to an inequality of the bargaining position of the parties. Once occupancy has commenced, a tenant may be subject to violations of the manufactured/mobile home landlord-tenant act without an adequate remedy at law. This chapter is created for the purpose of protecting the public, fostering fair and honest competition, and regulating the factors unique to the relationship between the manufactured/mobile home tenant and the manufactured/mobile home community landlord.
(2) The legislature finds that taking legal action against a manufactured/mobile home community landlord for violations of the manufactured/mobile home landlord-tenant act can be a costly and lengthy process, and that many people cannot afford to pursue a court process to vindicate statutory rights. Manufactured/mobile home community landlords will also benefit by having access to a process that resolves disputes quickly and efficiently.
(3)(a) Therefore, it is the intent of the legislature to provide an equitable as well as a less costly and more efficient way for manufactured/mobile home tenants and manufactured/mobile home community landlords to resolve disputes, and to provide a mechanism for state authorities to quickly locate manufactured/mobile home community landlords.
(b) The legislature intends to authorize the department of ((revenue))taxation to register manufactured/mobile home communities and collect a registration fee.
(c) The legislature intends to authorize the attorney general to:
(i) Produce and distribute educational materials regarding the manufactured/mobile home landlord-tenant act and the manufactured/mobile home dispute resolution program created in RCW
59.30.030;
(ii) Administer the dispute resolution program by taking complaints, conducting investigations, making determinations, issuing fines and other penalties, and participating in administrative dispute resolutions, when necessary, when there are alleged violations of the manufactured/mobile home landlord-tenant act; and
(iii) Collect and annually report upon data related to disputes and violations, and make recommendations on modifying chapter
59.20 RCW, to the appropriate committees of the legislature.
Sec. 154. RCW
59.30.020 and 2012 c 213 s 6 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Complainant" means a landlord, community owner, or tenant, who has a complaint alleging a violation of chapter
59.20 RCW.
(2) "Department" means the department of ((revenue))taxation.
(3) "Director" means the director of ((revenue))taxation.
(4) "Landlord" or "community owner" means the owner of a mobile home park or a manufactured housing community and includes the agents of a landlord.
(5) "Manufactured home" means a single-family dwelling built according to the United States department of housing and urban development manufactured home construction and safety standards act, which is a national preemptive building code. A manufactured home also: (a) Includes plumbing, heating, air conditioning, and electrical systems; (b) is built on a permanent chassis; and (c) can be transported in one or more sections with each section at least eight feet wide and forty feet long when transported, or when installed on the site is three hundred twenty square feet or greater.
(6) "Manufactured/mobile home" means either a manufactured home or a mobile home.
(7) "Manufactured/mobile home lot" means a portion of a manufactured/mobile home community designated as the location of one mobile home, manufactured home, or park model and its accessory buildings, and intended for the exclusive use as a primary residence by the occupants of that mobile home, manufactured home, or park model.
(8) "Mobile home" means a factory-built dwelling built prior to June 15, 1976, to standards other than the United States department of housing and urban development code, and acceptable under applicable state codes in effect at the time of construction or introduction of the home into the state. Mobile homes have not been built since the introduction of the United States department of housing and urban development manufactured home construction and safety act.
(9) "Mobile home park," "manufactured housing community," or "manufactured/mobile home community" means any real property that is rented or held out for rent to others for the placement of two or more mobile homes, manufactured homes, or park models, for the primary purpose of production of income, except where the real property is rented or held out for rent for seasonal recreational purposes only and is not intended for year-round occupancy.
(10) "Owner" means one or more persons, jointly or severally, in whom is vested:
(a) All or part of the legal title to the real property; or
(b) All or part of the beneficial ownership, and a right to present use and enjoyment of the real property.
(11) "Park model" means a recreational vehicle intended for permanent or semipermanent installation and is used as a primary residence.
(12) "Recreational vehicle" means a travel trailer, motor home, truck camper, or camping trailer that is primarily designed and used as temporary living quarters, is either self-propelled or mounted on or drawn by another vehicle, is transient, is not occupied as a primary residence, and is not immobilized or permanently affixed to a manufactured/mobile home lot.
(13) "Respondent" means a landlord, community owner, or tenant, alleged to have committed a violation of chapter
59.20 RCW.
(14) "Tenant" means any person, except a transient as defined in RCW
59.20.030, who rents a mobile home lot.
Sec. 155. RCW
60.28.011 and 2017 c 302 s 1 are each amended to read as follows:
(1)(a) Except as provided in (b) of this subsection, public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of: (i) The claims of any person arising under the contract; and (ii) the state with respect to taxes, increases, and penalties imposed pursuant to Titles
50,
51, and
82 RCW which may be due from such contractor.
(b) Public improvement contracts funded in whole or in part by federal transportation funds must rely upon the contract bond as referred to in chapter
39.08 RCW for the protection and payment of: (i) The claims of any person or persons arising under the contract to the extent such claims are provided for in RCW
39.08.010; and (ii) the state with respect to taxes, increases, and penalties incurred on the public improvement project under Titles
50,
51, and
82 RCW which may be due. The contract bond must remain in full force and effect until, at a minimum, all claims filed in compliance with chapter
39.08 RCW are resolved.
(2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract. However, the notice of the lien of the claimant must be given within forty-five days of completion of the contract work, and in the manner provided in RCW
39.08.030.
(3) The contractor at any time may request the contract retainage be reduced to one hundred percent of the value of the work remaining on the project.
(a) After completion of all contract work other than landscaping, the contractor may request that the public body release and pay in full the amounts retained during the performance of the contract, and sixty days thereafter the public body must release and pay in full the amounts retained (other than continuing retention of five percent of the moneys earned for landscaping) subject to the provisions of chapter
39.12 RCW and this chapter.
(b) Sixty days after completion of all contract work the public body must release and pay in full the amounts retained during the performance of the contract subject to the provisions of chapter
39.12 RCW and this chapter.
(4) The moneys reserved by a public body under the provisions of a public improvement contract, at the option of the contractor, must be:
(a) Retained in a fund by the public body;
(b) Deposited by the public body in an interest bearing account in a bank, mutual savings bank, or savings and loan association. Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor;
(c) Placed in escrow with a bank or trust company by the public body. When the moneys reserved are placed in escrow, the public body must issue a check representing the sum of the moneys reserved payable to the bank or trust company and the contractor jointly. This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow. Interest on the bonds and securities must be paid to the contractor as the interest accrues.
(5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor, materials, or equipment to the public project. Whenever the contractor or subcontractor reserves funds earned by a subcontractor or sub-subcontractor or supplier, the contractor or subcontractor must pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the contractor or subcontractor from reserved funds.
(6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from an authorized surety insurer. The public body may require that the authorized surety have a minimum A.M. Best financial strength rating so long as that minimum rating does not exceed A-. The public body must comply with the provisions of RCW
48.28.010. At any time prior to final formal acceptance of the project, a subcontractor may request the contractor to submit a bond to the public owner for that portion of the contractor's retainage pertaining to the subcontractor in a form acceptable to the public body and from a bonding company meeting standards established by the public body. The contractor may withhold the subcontractor's portion of the bond premium. Within thirty days of receipt of the request, the contractor shall provide and the public body shall accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it, the bond is not commercially available, or the subcontractor refuses to pay the subcontractor's portion of the bond premium and to provide the contractor with a like bond. The contractor's bond and any proceeds therefrom are subject to all claims and liens and in the same manner and priority as set forth for retained percentages in this chapter. The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor. Whenever a public body accepts a bond in lieu of retained funds from a contractor, the contractor must accept like bonds from any subcontractors or suppliers from which the contractor has retained funds. The contractor must then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from the subcontractor or supplier.
(7) If the public body administering a contract, after a substantial portion of the work has been completed, finds that an unreasonable delay will occur in the completion of the remaining portion of the contract for any reason not the result of a breach thereof, it may, if the contractor agrees, delete from the contract the remaining work and accept as final the improvement at the stage of completion then attained and make payment in proportion to the amount of the work accomplished and in this case any amounts retained and accumulated under this section must be held for a period of sixty days following the completion. In the event that the work is terminated before final completion as provided in this section, the public body may thereafter enter into a new contract with the same contractor to perform the remaining work or improvement for an amount equal to or less than the cost of the remaining work as was provided for in the original contract without advertisement or bid. The provisions of this chapter are exclusive and supersede all provisions and regulations in conflict herewith.
(8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels, sixty days after completion of all contract work on each ferry vessel, the department must release and pay in full the amounts retained in connection with the construction of the vessel subject to the provisions of RCW
60.28.021 and chapter
39.12 RCW. However, the department of transportation may at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties, or with a surety company, in the amount of the retained funds to be released to the contractor, conditioned that no taxes may be certified or claims filed for work on the ferry after a period of sixty days following completion of the ferry; and if taxes are certified or claims filed, recovery may be had on the bond by the department of ((
revenue))
taxation, the employment security department, the department of labor and industries, and the material suppliers and laborers filing claims.
(9) Except as provided in subsection (1) of this section, reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities under public improvement contracts is prohibited.
(10) Contracts on projects funded in whole or in part by farmers home administration and subject to farmers home administration regulations are not subject to subsections (1) through (9) of this section.
(11) This subsection applies only to a public body that has contracted for the construction of a facility using the general contractor/construction manager procedure, as defined under RCW
39.10.210. If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractor/construction manager contract for completing the work, the public body may accept the completion of the subcontract. The public body must give public notice of this acceptance. After a forty-five day period for giving notice of liens, and compliance with the retainage release procedures in RCW
60.28.021, the public body may release that portion of the retained funds associated with the subcontract. Claims against the retained funds after the forty-five day period are not valid.
(12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Contract retainage" means an amount reserved by a public body from the moneys earned by a person under a public improvement contract.
(b) "Person" means a person or persons, mechanic, subcontractor, or materialperson who performs labor or provides materials for a public improvement contract, and any other person who supplies the person with provisions or supplies for the carrying on of a public improvement contract.
(c) "Public body" means the state, or a county, city, town, district, board, or other public body.
(d) "Public improvement contract" means a contract for public improvements or work, other than for professional services, or a work order as defined in RCW
39.10.210.
Sec. 156. RCW
60.28.021 and 2009 c 432 s 6 are each amended to read as follows:
After the expiration of the forty-five day period for giving notice of lien provided in RCW
60.28.011(2), and after receipt of the certificates of the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries, and the public body is satisfied that the taxes certified as due or to become due by the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries are discharged, and the claims of material suppliers and laborers who have filed their claims, together with a sum sufficient to defray the cost of foreclosing the liens of such claims, and to pay attorneys' fees, have been paid, the public body may withhold from the remaining retained amounts for claims the public body may have against the contractor and shall pay the balance, if any, to the contractor the fund retained by it or release to the contractor the securities and bonds held in escrow.
If such taxes have not been discharged or the claims, expenses, and fees have not been paid, the public body shall either retain in its fund, or in an interest bearing account, or retain in escrow, at the option of the contractor, an amount equal to such unpaid taxes and unpaid claims together with a sum sufficient to defray the costs and attorney fees incurred in foreclosing the lien of such claims, and shall pay, or release from escrow, the remainder to the contractor.
Sec. 157. RCW
60.28.051 and 2009 c 432 s 8 are each amended to read as follows:
Upon completion of a contract, the state, county, or other municipal officer charged with the duty of disbursing or authorizing disbursement or payment of such contracts shall forthwith notify the department of ((revenue))taxation, the employment security department, and the department of labor and industries of the completion of contracts over thirty-five thousand dollars. Such officer shall not make any payment from the retained percentage fund or release any retained percentage escrow account to any person, until he or she has received from the department of ((revenue))taxation, the employment security department, and the department of labor and industries certificates that all taxes, increases, and penalties due from the contractor, and all taxes due and to become due with respect to such contract have been paid in full or that they are, in each department's opinion, readily collectible without recourse to the state's lien on the retained percentage.
Sec. 158. RCW
60.28.060 and 2012 c 117 s 147 are each amended to read as follows:
If within thirty days after receipt of notice by the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries of the completion of the contract, the amount of all taxes, increases, and penalties due from the contractor or any of his or her successors or assignees or to become due with respect to such contract have not been paid, the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries may certify to the disbursing officer the amount of all taxes, increases, and penalties due from the contractor, together with the amount of all taxes due and to become due with respect to the contract and may request payment thereof in accordance with the priority provided by this chapter. The disbursing officer shall within ten days after receipt of such certificate and request pay to the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries the amount of all taxes, increases, and penalties certified to be due or to become due and all claims which by statute are a lien upon the retained percentage withheld by the disbursing officer in accordance with the priority provided by this chapter. If the contractor owes no taxes imposed pursuant to Titles
50,
51, and
82 RCW, the department of ((
revenue))
taxation, the employment security department, and the department of labor and industries shall so certify to the disbursing officer.
Sec. 159. RCW
63.29.010 and 2012 c 117 s 177 are each reenacted and amended to read as follows:
As used in this chapter, unless the context otherwise requires:
(1) "Apparent owner" means the person whose name appears on the records of the holder as the person entitled to property held, issued, or owing by the holder.
(2) "Attorney general" means the chief legal officer of this state referred to in chapter
43.10 RCW.
(3) "Banking organization" means a bank, trust company, savings bank, land bank, safe deposit company, private banker, or any organization defined by other law as a bank or banking organization.
(4) "Business association" means a nonpublic corporation, joint stock company, investment company, business trust, partnership, or association for business purposes of two or more individuals, whether or not for profit, including a banking organization, financial organization, insurance company, or utility.
(5) "Department" means the department of ((
revenue))
taxation established under RCW
82.01.050.
(6) "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of an unincorporated person.
(7) "Fare card" means any pass or instrument, and value contained therein, purchased to utilize public transportation facilities or services. "Fare card" does not include "gift card" or "gift certificate" as those terms are defined in RCW
19.240.010.
(8) "Financial organization" means a savings and loan association, cooperative bank, building and loan association, or credit union.
(9) "Gift certificate" has the same meaning as in RCW
19.240.010.
(10) "Holder" means a person, wherever organized or domiciled, who is:
(a) In possession of property belonging to another;
(b) A trustee; or
(c) Indebted to another on an obligation.
(11) "Insurance company" means an association, corporation, fraternal or mutual benefit organization, whether or not for profit, which is engaged in providing insurance coverage, including accident, burial, casualty, credit life, contract performance, dental, fidelity, fire, health, hospitalization, illness, life (including endowments and annuities), malpractice, marine, mortgage, surety, and wage protection insurance.
(12) "Intangible property" does not include contract claims which are unliquidated but does include:
(a) Moneys, checks, drafts, deposits, interest, dividends, and income;
(b) Credit balances, customer overpayments, gift certificates, security deposits, refunds, credit memos, unpaid wages, unused airline tickets, and unidentified remittances, but does not include discounts which represent credit balances for which no consideration was given;
(c) Stocks, and other intangible ownership interests in business associations;
(d) Moneys deposited to redeem stocks, bonds, coupons, and other securities, or to make distributions;
(e) Liquidated amounts due and payable under the terms of insurance policies; and
(f) Amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.
(13) "Last known address" means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail.
(14) "Owner" means a depositor in the case of a deposit, a beneficiary in case of a trust other than a deposit in trust, a creditor, claimant, or payee in the case of other intangible property, or a person having a legal or equitable interest in property subject to this chapter or his or her legal representative.
(15) "Person" means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity.
(16) "State" means any state, district, commonwealth, territory, insular possession, or any other area subject to the legislative authority of the United States.
(17) "Third party bank check" means any instrument drawn against a customer's account with a banking organization or financial organization on which the banking organization or financial organization is only secondarily liable.
(18) "Utility" means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas.
Sec. 160. RCW
63.29.135 and 1990 2nd ex.s. c 1 s 301 are each amended to read as follows:
A local government holding abandoned intangible property that is not forwarded to the department of ((
revenue))
taxation, as authorized under RCW
63.29.190, shall not be required to maintain current records of this property for longer than five years after the property is presumed to be abandoned, and at that time may archive records of this intangible property and transfer the intangible property to its general fund. However, the local government shall remain liable to pay the intangible property to a person or entity subsequently establishing its ownership of this intangible property.
Sec. 161. RCW
63.29.230 and 1983 c 179 s 23 are each amended to read as follows:
(1) Except as otherwise provided by this section, the department shall promptly deposit in the general fund of this state all funds received under this chapter, including the proceeds from the sale of abandoned property under RCW
63.29.220. The department shall retain in a separate trust fund an amount not less than two hundred fifty thousand dollars from which prompt payment of claims duly allowed must be made by the department. Before making the deposit, the department shall record the name and last known address of each person appearing from the holders' reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary and with respect to each policy or contract listed in the report of an insurance company its number, and the name of the company. The record must be available for public inspection at all reasonable business hours.
(2) The department of ((revenue))taxation may pay from the trust fund provided in subsection (1) of this section any costs of administering this chapter.
Sec. 162. RCW
63.29.350 and 2012 c 117 s 181 are each amended to read as follows:
(1) It is unlawful for any person to seek or receive from any person or contract with any person for any fee or compensation for locating or purporting to locate any property which he or she knows has been reported or paid or delivered to the department of ((revenue))taxation pursuant to this chapter, or funds held by a county that are proceeds from a foreclosure for delinquent property taxes, assessments, or other liens, or, funds that are otherwise held by a county because of a person's failure to claim funds held as reimbursement for unowed taxes, fees, or other government charges, in excess of five percent of the value thereof returned to such owner. Any person violating this section is guilty of a misdemeanor and shall be fined not less than the amount of the fee or charge he or she has sought or received or contracted for, and not more than ten times such amount, or imprisoned for not more than thirty days, or both.
(2) The legislature finds that the practices covered by this section are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter
19.86 RCW. Any violation of this section is not reasonable in relation to the development and preservation of business. It is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter
19.86 RCW. Remedies provided by chapter
19.86 RCW are cumulative and not exclusive.
Sec. 163. RCW
63.29.380 and 1983 c 179 s 39 are each amended to read as follows:
Any information or records required to be furnished to the department of ((
revenue))
taxation as provided in this chapter shall be confidential and shall not be disclosed to any person except the person who furnished the same to the department of ((
revenue))
taxation, and except as provided in RCW
63.29.180 and
63.29.230, or as may be necessary in the proper administration of this chapter.
Sec. 164. RCW
66.08.150 and 2012 c 39 s 5 are each amended to read as follows:
The action, order, or decision of the board as to any denial of an application for the reissuance of a permit or license or as to any revocation, suspension, or modification of any permit or license must be an adjudicative proceeding and subject to the applicable provisions of chapter
34.05 RCW.
(1) An opportunity for a hearing may be provided an applicant for the reissuance of a permit or license prior to the disposition of the application, and if no such opportunity for a prior hearing is provided then an opportunity for a hearing to reconsider the application must be provided the applicant.
(2) An opportunity for a hearing must be provided a permittee or licensee prior to a revocation or modification of any permit or license and, except as provided in subsection (4) of this section, prior to the suspension of any permit or license.
(3) No hearing may be required until demanded by the applicant, permittee, or licensee.
(4) The board may summarily suspend a license or permit for a period of up to one hundred eighty days without a prior hearing if it finds that public health, safety, or welfare imperatively require emergency action, and it incorporates a finding to that effect in its order. Proceedings for revocation or other action must be promptly instituted and determined. An administrative law judge may extend the summary suspension period for up to one calendar year in the event the proceedings for revocation or other action cannot be completed during the initial one hundred eighty day period due to actions by the licensee or permittee. The board's enforcement division must complete a preliminary staff investigation of the violation before requesting an emergency suspension by the board.
(5) The issues that may be considered at a hearing to contest a suspension of a license or the denial of an application for a new license or renewal of an existing license, under RCW
66.24.010(3)(c), do not include the right to challenge the amount of any spirits taxes assessed against the licensee or applicant by the department of ((
revenue))
taxation. For purposes of this subsection, "spirits taxes" has the same meaning as in RCW
82.08.155.
Sec. 165. RCW
66.20.370 and 2006 c 49 s 3 are each amended to read as follows:
(1) An applicant for a wine shipper's permit under RCW
66.20.365 must:
(a) Operate a winery located in the United States;
(b) Provide the board a copy of its valid license to manufacture wine issued by another state;
(c) Certify that it holds all state and federal licenses and permits necessary to operate a winery; and
(d) Register with the department of ((
revenue))
taxation under RCW
82.32.030.
(2) Holders of a winery certificate of approval under RCW
66.24.206(1)(a) are deemed to hold a wine shipper's permit without further application or fee, if the holder meets all requirements for a wine shipper's permit. A winery certificate of approval holder who wants to ship wine under its wine shipper's permit privilege must notify the liquor ((
control))
and cannabis board in a manner determined by the board before shipping any wine to a Washington consumer.
(3) Holders of a wine shipper's permit must:
(a) Pay the tax under RCW
66.24.210 for sales of wine to Washington state residents; and
(b) Collect and remit to the department of ((
revenue))
taxation all applicable state and local sales and use taxes imposed by or under the authority of chapters
82.08, 82.12, and
82.14 RCW on all sales of wine delivered to buyers in this state, regardless of whether the permit holder has a physical presence in this state.
Sec. 166. RCW
66.24.010 and 2012 c 39 s 4 are each amended to read as follows:
(1) Every license must be issued in the name of the applicant, and the holder thereof may not allow any other person to use the license.
(2) For the purpose of considering any application for a license, or the renewal of a license, the board may cause an inspection of the premises to be made, and may inquire into all matters in connection with the construction and operation of the premises. For the purpose of reviewing any application for a license and for considering the denial, suspension, revocation, or renewal or denial thereof, of any license, the liquor ((
control))
and cannabis board may consider any prior criminal conduct of the applicant including an administrative violation history record with the board and a criminal history record information check. The board may submit the criminal history record information check to the Washington state patrol and to the identification division of the federal bureau of investigation in order that these agencies may search their records for prior arrests and convictions of the individual or individuals who filled out the forms. The board must require fingerprinting of any applicant whose criminal history record information check is submitted to the federal bureau of investigation. The provisions of RCW
9.95.240 and of chapter
9.96A RCW do not apply to such cases. Subject to the provisions of this section, the board may, in its discretion, grant or deny the renewal or license applied for. Denial may be based on, without limitation, the existence of chronic illegal activity documented in objections submitted pursuant to subsections (8)(d) and (12) of this section. Authority to approve an uncontested or unopposed license may be granted by the board to any staff member the board designates in writing. Conditions for granting such authority must be adopted by rule. No retail license of any kind may be issued to:
(a) A person doing business as a sole proprietor who has not resided in the state for at least one month prior to receiving a license, except in cases of licenses issued to dining places on railroads, boats, or aircraft;
(b) A copartnership, unless all of the members thereof are qualified to obtain a license, as provided in this section;
(c) A person whose place of business is conducted by a manager or agent, unless such manager or agent possesses the same qualifications required of the licensee;
(d) A corporation or a limited liability company, unless it was created under the laws of the state of Washington or holds a certificate of authority to transact business in the state of Washington.
(3)(a) The board may, in its discretion, subject to the provisions of RCW
66.08.150, suspend or cancel any license; and all rights of the licensee to keep or sell liquor thereunder must be suspended or terminated, as the case may be.
(b) The board must immediately suspend the license or certificate of a person who has been certified pursuant to RCW
74.20A.320 by the department of social and health services as a person who is not in compliance with a support order. If the person has continued to meet all other requirements for reinstatement during the suspension, reissuance of the license or certificate is automatic upon the board's receipt of a release issued by the department of social and health services stating that the licensee is in compliance with the order.
(c) Upon written notification by the department of ((
revenue))
taxation in accordance with RCW
82.08.155 that a person is more than thirty days delinquent in reporting or remitting spirits taxes to the department, the board must suspend all spirits licenses held by that person. The board must also refuse to renew any existing spirits license of, or issue any new spirits license to, the person or any other applicant controlled directly or indirectly by that person. The board may not reinstate a person's spirits license or renew or issue a new spirits license to that person, or an applicant controlled directly or indirectly by that person, until such time as the department of ((
revenue))
taxation notifies the board that the person is current in reporting and remitting spirits taxes or that the department consents to the reinstatement or renewal of the person's spirits license or the issuance of a new spirits license to the person. For purposes of this section: (i) "Spirits license" means any license issued by the board under the authority of this chapter that authorizes the licensee to sell spirits; and (ii) "spirits taxes" has the same meaning as in RCW
82.08.155.
(d) The board may request the appointment of administrative law judges under chapter
34.12 RCW who must have power to administer oaths, issue subpoenas for the attendance of witnesses and the production of papers, books, accounts, documents, and testimony, examine witnesses, and to receive testimony in any inquiry, investigation, hearing, or proceeding in any part of the state, under such rules and regulations as the board may adopt.
(e) Witnesses are allowed fees and mileage each way to and from any such inquiry, investigation, hearing, or proceeding at the rate authorized by RCW
34.05.446. Fees need not be paid in advance of appearance of witnesses to testify or to produce books, records, or other legal evidence.
(f) In case of disobedience of any person to comply with the order of the board or a subpoena issued by the board, or any of its members, or administrative law judges, or on the refusal of a witness to testify to any matter regarding which he or she may be lawfully interrogated, the judge of the superior court of the county in which the person resides, on application of any member of the board or administrative law judge, must compel obedience by contempt proceedings, as in the case of disobedience of the requirements of a subpoena issued from said court or a refusal to testify therein.
(4) Upon receipt of notice of the suspension or cancellation of a license, the licensee must forthwith deliver up the license to the board. Where the license has been suspended only, the board must return the license to the licensee at the expiration or termination of the period of suspension. The board must notify all vendors in the city or place where the licensee has its premises of the suspension or cancellation of the license; and no employee may allow or cause any liquor to be delivered to or for any person at the premises of that licensee.
(5)(a) At the time of the original issuance of a spirits, beer, and wine restaurant license, the board must prorate the license fee charged to the new licensee according to the number of calendar quarters, or portion thereof, remaining until the first renewal of that license is required.
(b) Unless sooner canceled, every license issued by the board must expire at midnight of the thirtieth day of June of the fiscal year for which it was issued. However, if the board deems it feasible and desirable to do so, it may establish, by rule pursuant to chapter
34.05 RCW, a system for staggering the annual renewal dates for any and all licenses authorized by this chapter. If such a system of staggered annual renewal dates is established by the board, the license fees provided by this chapter must be appropriately prorated during the first year that the system is in effect.
(6) Every license issued under this section is subject to all conditions and restrictions imposed by this title or by rules adopted by the board. All conditions and restrictions imposed by the board in the issuance of an individual license may be listed on the face of the individual license along with the trade name, address, and expiration date. Conditions and restrictions imposed by the board may also be included in official correspondence separate from the license. All spirits licenses are subject to the condition that the spirits license holder must report and remit to the department of ((revenue))taxation all spirits taxes by the date due.
(7) Every licensee must post and keep posted its license, or licenses, and any additional correspondence containing conditions and restrictions imposed by the board in a conspicuous place on the premises.
(8)(a) Unless (b) of this subsection applies, before the board issues a new or renewal license to an applicant it must give notice of such application to the chief executive officer of the incorporated city or town, if the application is for a license within an incorporated city or town, or to the county legislative authority, if the application is for a license outside the boundaries of incorporated cities or towns.
(b) If the application for a special occasion license is for an event held during a county, district, or area fair as defined by RCW
15.76.120, and the county, district, or area fair is located on property owned by the county but located within an incorporated city or town, the county legislative authority must be the entity notified by the board under (a) of this subsection. The board must send a duplicate notice to the incorporated city or town within which the fair is located.
(c) The incorporated city or town through the official or employee selected by it, or the county legislative authority or the official or employee selected by it, has the right to file with the board within twenty days after the date of transmittal of such notice for applications, or at least thirty days prior to the expiration date for renewals, written objections against the applicant or against the premises for which the new or renewal license is asked. The board may extend the time period for submitting written objections.
(d) The written objections must include a statement of all facts upon which such objections are based, and in case written objections are filed, the city or town or county legislative authority may request and the liquor ((
control))
and cannabis board may in its discretion hold a hearing subject to the applicable provisions of Title
34 RCW. If the board makes an initial decision to deny a license or renewal based on the written objections of an incorporated city or town or county legislative authority, the applicant may request a hearing subject to the applicable provisions of Title
34 RCW. If such a hearing is held at the request of the applicant, liquor ((
control))
and cannabis board representatives must present and defend the board's initial decision to deny a license or renewal.
(e) Upon the granting of a license under this title the board must send written notification to the chief executive officer of the incorporated city or town in which the license is granted, or to the county legislative authority if the license is granted outside the boundaries of incorporated cities or towns. When the license is for a special occasion license for an event held during a county, district, or area fair as defined by RCW
15.76.120, and the county, district, or area fair is located on county-owned property but located within an incorporated city or town, the written notification must be sent to both the incorporated city or town and the county legislative authority.
(9)(a) Before the board issues any license to any applicant, it shall give (i) due consideration to the location of the business to be conducted under such license with respect to the proximity of churches, schools, and public institutions and (ii) written notice, with receipt verification, of the application to public institutions identified by the board as appropriate to receive such notice, churches, and schools within five hundred feet of the premises to be licensed. The board may not issue a liquor license for either on-premises or off-premises consumption covering any premises not now licensed, if such premises are within five hundred feet of the premises of any tax-supported public elementary or secondary school measured along the most direct route over or across established public walks, streets, or other public passageway from the main entrance of the school to the nearest public entrance of the premises proposed for license, and if, after receipt by the school of the notice as provided in this subsection, the board receives written objection, within twenty days after receiving such notice, from an official representative or representatives of the school within five hundred feet of said proposed licensed premises, indicating to the board that there is an objection to the issuance of such license because of proximity to a school. The board may extend the time period for submitting objections. For the purpose of this section, "church" means a building erected for and used exclusively for religious worship and schooling or other activity in connection therewith. For the purpose of this section, "public institution" means institutions of higher education, parks, community centers, libraries, and transit centers.
(b) No liquor license may be issued or reissued by the board to any motor sports facility or licensee operating within the motor sports facility unless the motor sports facility enforces a program reasonably calculated to prevent alcohol or alcoholic beverages not purchased within the facility from entering the facility and such program is approved by local law enforcement agencies.
(c) It is the intent under this subsection (9) that a retail license may not be issued by the board where doing so would, in the judgment of the board, adversely affect a private school meeting the requirements for private schools under Title
28A RCW, which school is within five hundred feet of the proposed licensee. The board must fully consider and give substantial weight to objections filed by private schools. If a license is issued despite the proximity of a private school, the board must state in a letter addressed to the private school the board's reasons for issuing the license.
(10) The restrictions set forth in subsection (9) of this section do not prohibit the board from authorizing the assumption of existing licenses now located within the restricted area by other persons or licenses or relocations of existing licensed premises within the restricted area. In no case may the licensed premises be moved closer to a church or school than it was before the assumption or relocation.
(11)(a) Nothing in this section prohibits the board, in its discretion, from issuing a temporary retail or distributor license to an applicant to operate the retail or distributor premises during the period the application for the license is pending. The board may establish a fee for a temporary license by rule.
(b) A temporary license issued by the board under this section must be for a period not to exceed sixty days. A temporary license may be extended at the discretion of the board for additional periods of sixty days upon payment of an additional fee and upon compliance with all conditions required in this section.
(c) Refusal by the board to issue or extend a temporary license shall not entitle the applicant to request a hearing. A temporary license may be canceled or suspended summarily at any time if the board determines that good cause for cancellation or suspension exists. RCW
66.08.130 applies to temporary licenses.
(d) Application for a temporary license must be on such form as the board shall prescribe. If an application for a temporary license is withdrawn before issuance or is refused by the board, the fee which accompanied such application must be refunded in full.
(12) In determining whether to grant or deny a license or renewal of any license, the board must give substantial weight to objections from an incorporated city or town or county legislative authority based upon chronic illegal activity associated with the applicant's operations of the premises proposed to be licensed or the applicant's operation of any other licensed premises, or the conduct of the applicant's patrons inside or outside the licensed premises. "Chronic illegal activity" means (a) a pervasive pattern of activity that threatens the public health, safety, and welfare of the city, town, or county including, but not limited to, open container violations, assaults, disturbances, disorderly conduct, or other criminal law violations, or as documented in crime statistics, police reports, emergency medical response data, calls for service, field data, or similar records of a law enforcement agency for the city, town, county, or any other municipal corporation or any state agency; or (b) an unreasonably high number of citations for violations of RCW
46.61.502 associated with the applicant's or licensee's operation of any licensed premises as indicated by the reported statements given to law enforcement upon arrest.
Sec. 167. RCW
66.24.620 and 2012 c 2 s 102 are each amended to read as follows:
(1) The holder of a spirits distributor license or spirits retail license issued under this title may commence sale of spirits upon issuance thereof, but in no event earlier than March 1, 2012, for distributors, or June 1, 2012, for retailers. The board must complete application processing by those dates of all complete applications for spirits licenses on file with the board on or before sixty days from December 8, 2011.
(2) The board must effect orderly closure of all state liquor stores no later than June 1, 2012, and must thereafter refrain from purchase, sale, or distribution of liquor, except for asset sales authorized by chapter 2, Laws of 2012.
(3) The board must devote sufficient resources to planning and preparation for sale of all assets of state liquor stores and distribution centers, and all other assets of the state over which the board has power of disposition, including without limitation goodwill and location value associated with state liquor stores, with the objective of depleting all inventory of liquor by May 31, 2012, and closing all other asset sales no later than June 1, 2013. The board, in furtherance of this subsection, may sell liquor to spirits licensees.
(4)(a) Disposition of any state liquor store or distribution center assets remaining after June 1, 2013, must be managed by the department of ((revenue))taxation.
(b) The board must obtain the maximum reasonable value for all asset sales made under this section.
(c) The board must sell by auction open to the public the right at each state-owned store location of a spirits retail licensee to operate a liquor store upon the premises. Such right must be freely alienable and subject to all state and local zoning and land use requirements applicable to the property. Acquisition of the operating rights must be a precondition to, but does not establish eligibility for, a spirits retail license at the location of a state store and does not confer any privilege conferred by a spirits retail license. Holding the rights does not require the holder of the right to operate a liquor-licensed business or apply for a liquor license.
(5) All sales proceeds under this section, net of direct sales expenses and other transition costs authorized by this section, must be deposited into the liquor revolving fund.
(6)(a) The board must complete the orderly transition from the current state-controlled system to the private licensee system of spirits retailing and distribution as required under this chapter by June 1, 2012.
(b) The transition must include, without limitation, a provision for applying operating and asset sale revenues of the board to just and reasonable measures to avert harm to interests of tribes, military buyers, and nonemployee liquor store operators under then existing contracts for supply by the board of distilled spirits, taking into account present value of issuance of a spirits retail license to the holder of such interest. The provision may extend beyond the time for completion of transition to a spirits licensee system.
(c) Purchases by the federal government from any licensee of the board of spirits for resale through commissaries at military installations are exempt from sales tax based on selling price levied by RCW
82.08.150.
Sec. 168. RCW
67.28.200 and 2004 c 79 s 9 are each amended to read as follows:
The legislative body of any municipality may establish reasonable exemptions for taxes authorized under this chapter. The department of ((
revenue))
taxation shall perform the collection of such taxes on behalf of such municipality at no cost to such municipality. Except as expressly provided in this chapter, all of the provisions contained in RCW
82.08.050 and
82.08.060 and chapter
82.32 RCW shall have full force and application with respect to taxes imposed under the provisions of this chapter.
Sec. 169. RCW
69.07.210 and 2017 c 138 s 5 are each amended to read as follows:
The department of agriculture, state liquor and cannabis board, and department of ((
revenue))
taxation shall take the necessary steps to ensure that RCW
69.07.200 is implemented on its effective date.
Sec. 170. RCW
69.43.035 and 2013 c 19 s 67 are each amended to read as follows:
(1) Any manufacturer or wholesaler who sells, transfers, or otherwise furnishes any substance specified in RCW
69.43.010(1) to any person in a suspicious transaction shall report the transaction in writing to the pharmacy quality assurance commission.
(2) Any person specified in subsection (1) of this section who does not submit a report as required by subsection (1) of this section is guilty of a gross misdemeanor.
(3) For the purposes of this section, "suspicious transaction" means a sale or transfer to which any of the following applies:
(a) The circumstances of the sale or transfer would lead a reasonable person to believe that the substance is likely to be used for the purpose of unlawfully manufacturing a controlled substance under chapter
69.50 RCW, based on such factors as the amount involved, the method of payment, the method of delivery, and any past dealings with any participant in the transaction. The pharmacy quality assurance commission shall adopt by rule criteria for determining whether a transaction is suspicious, taking into consideration the recommendations in appendix A of the report to the United States attorney general by the suspicious orders task force under the federal comprehensive methamphetamine control act of 1996.
(b) The transaction involves payment for any substance specified in RCW
69.43.010(1) in cash or money orders in a total amount of more than two hundred dollars.
(4) The pharmacy quality assurance commission shall transmit to the department of ((revenue))taxation a copy of each report of a suspicious transaction that it receives under this section.
Sec. 171. RCW
69.50.375 and 2015 c 70 s 10 are each amended to read as follows:
(1) A medical marijuana endorsement to a marijuana retail license is hereby established to permit a marijuana retailer to sell marijuana for medical use to qualifying patients and designated providers. This endorsement also permits such retailers to provide marijuana at no charge, at their discretion, to qualifying patients and designated providers.
(2) An applicant may apply for a medical marijuana endorsement concurrently with an application for a marijuana retail license.
(3) To be issued an endorsement, a marijuana retailer must:
(a) Not authorize the medical use of marijuana for qualifying patients at the retail outlet or permit health care professionals to authorize the medical use of marijuana for qualifying patients at the retail outlet;
(b) Carry marijuana concentrates and marijuana-infused products identified by the department under subsection (4) of this section;
(c) Not use labels or market marijuana concentrates, useable marijuana, or marijuana-infused products in a way that make them intentionally attractive to minors;
(d) Demonstrate the ability to enter qualifying patients and designated providers in the medical marijuana authorization database established in RCW
69.51A.230 and issue recognition cards and agree to enter qualifying patients and designated providers into the database and issue recognition cards in compliance with department standards;
(e) Keep copies of the qualifying patient's or designated provider's recognition card, or keep equivalent records as required by rule of the state liquor and cannabis board or the department of ((revenue))taxation to document the validity of tax exempt sales; and
(f) Meet other requirements as adopted by rule of the department or the state liquor and cannabis board.
(4) The department, in conjunction with the state liquor and cannabis board, must adopt rules on requirements for marijuana concentrates, useable marijuana, and marijuana-infused products that may be sold, or provided at no charge, to qualifying patients or designated providers at a retail outlet holding a medical marijuana endorsement. These rules must include:
(a) THC concentration, CBD concentration, or low THC, high CBD ratios appropriate for marijuana concentrates, useable marijuana, or marijuana-infused products sold to qualifying patients or designated providers;
(b) Labeling requirements including that the labels attached to marijuana concentrates, useable marijuana, or marijuana-infused products contain THC concentration, CBD concentration, and THC to CBD ratios;
(c) Other product requirements, including any additional mold, fungus, or pesticide testing requirements, or limitations to the types of solvents that may be used in marijuana processing that the department deems necessary to address the medical needs of qualifying patients;
(d) Safe handling requirements for marijuana concentrates, useable marijuana, or marijuana-infused products; and
(e) Training requirements for employees.
(5) A marijuana retailer holding an endorsement to sell marijuana to qualifying patients or designated providers must train its employees on:
(a) Procedures regarding the recognition of valid authorizations and the use of equipment to enter qualifying patients and designated providers into the medical marijuana authorization database;
(b) Recognition of valid recognition cards; and
(c) Recognition of strains, varieties, THC concentration, CBD concentration, and THC to CBD ratios of marijuana concentrates, useable marijuana, and marijuana-infused products, available for sale when assisting qualifying patients and designated providers at the retail outlet.
Sec. 172. RCW
69.50.535 and 2015 2nd sp.s. c 4 s 205 are each amended to read as follows:
(1)(a) There is levied and collected a marijuana excise tax equal to thirty-seven percent of the selling price on each retail sale in this state of marijuana concentrates, useable marijuana, and marijuana-infused products. This tax is separate and in addition to general state and local sales and use taxes that apply to retail sales of tangible personal property, and is not part of the total retail price to which general state and local sales and use taxes apply. The tax must be separately itemized from the state and local retail sales tax on the sales receipt provided to the buyer.
(b) The tax levied in this section must be reflected in the price list or quoted shelf price in the licensed marijuana retail store and in any advertising that includes prices for all useable marijuana, marijuana concentrates, or marijuana-infused products.
(2) All revenues collected from the marijuana excise tax imposed under this section must be deposited each day in the dedicated marijuana account.
(3) The tax imposed in this section must be paid by the buyer to the seller. Each seller must collect from the buyer the full amount of the tax payable on each taxable sale. The tax collected as required by this section is deemed to be held in trust by the seller until paid to the board. If any seller fails to collect the tax imposed in this section or, having collected the tax, fails to pay it as prescribed by the board, whether such failure is the result of the seller's own acts or the result of acts or conditions beyond the seller's control, the seller is, nevertheless, personally liable to the state for the amount of the tax.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Board" means the state liquor and cannabis board.
(b) "Retail sale" has the same meaning as in RCW
82.08.010.
(c) "Selling price" has the same meaning as in RCW
82.08.010, except that when product is sold under circumstances where the total amount of consideration paid for the product is not indicative of its true value, "selling price" means the true value of the product sold.
(d) "Product" means marijuana, marijuana concentrates, useable marijuana, and marijuana-infused products.
(e) "True value" means market value based on sales at comparable locations in this state of the same or similar product of like quality and character sold under comparable conditions of sale to comparable purchasers. However, in the absence of such sales of the same or similar product, true value means the value of the product sold as determined by all of the seller's direct and indirect costs attributable to the product.
(5)(a) The board must regularly review the tax level established under this section and make recommendations, in consultation with the department of ((revenue))taxation, to the legislature as appropriate regarding adjustments that would further the goal of discouraging use while undercutting illegal market prices.
(b) The state liquor and cannabis board must report, in compliance with RCW
43.01.036, to the appropriate committees of the legislature every two years. The report at a minimum must include the following:
(i) The specific recommendations required under (a) of this subsection;
(ii) A comparison of gross sales and tax collections prior to and after any marijuana tax change;
(iii) The increase or decrease in the volume of legal marijuana sold prior to and after any marijuana tax change;
(iv) Increases or decreases in the number of licensed marijuana producers, processors, and retailers;
(v) The number of illegal and noncompliant marijuana outlets the board requires to be closed;
(vi) Gross marijuana sales and tax collections in Oregon; and
(vii) The total amount of reported sales and use taxes exempted for qualifying patients. The department of ((revenue))taxation must provide the data of exempt amounts to the board.
(c) The board is not required to report to the legislature as required in (b) of this subsection after January 1, 2025.
(6) The legislature does not intend and does not authorize any person or entity to engage in activities or to conspire to engage in activities that would constitute per se violations of state and federal antitrust laws including, but not limited to, agreements among retailers as to the selling price of any goods sold.
Sec. 173. RCW
69.51A.230 and 2015 c 70 s 21 are each amended to read as follows:
(1) The department must contract with an entity to create, administer, and maintain a secure and confidential medical marijuana authorization database that, beginning July 1, 2016, allows:
(a) A marijuana retailer with a medical marijuana endorsement to add a qualifying patient or designated provider and include the amount of marijuana concentrates, useable marijuana, marijuana-infused products, or plants for which the qualifying patient is authorized under RCW
69.51A.210;
(b) Persons authorized to prescribe or dispense controlled substances to access health care information on their patients for the purpose of providing medical or pharmaceutical care for their patients;
(c) A qualifying patient or designated provider to request and receive his or her own health care information or information on any person or entity that has queried their name or information;
(d) Appropriate local, state, tribal, and federal law enforcement or prosecutorial officials who are engaged in a bona fide specific investigation of suspected marijuana-related activity that may be illegal under Washington state law to confirm the validity of the recognition card of a qualifying patient or designated provider;
(e) A marijuana retailer holding a medical marijuana endorsement to confirm the validity of the recognition card of a qualifying patient or designated provider;
(f) The department of ((
revenue))
taxation to verify tax exemptions under chapters
82.08 and
82.12 RCW;
(g) The department and the health care professional's disciplining authorities to monitor authorizations and ensure compliance with this chapter and chapter
18.130 RCW by their licensees; and
(h) Authorizations to expire six months or one year after entry into the medical marijuana authorization database, depending on whether the authorization is for a minor or an adult.
(2) A qualifying patient and his or her designated provider, if any, may be placed in the medical marijuana authorization database at a marijuana retailer with a medical marijuana endorsement. After a qualifying patient or designated provider is placed in the medical marijuana authorization database, he or she must be provided with a recognition card that contains identifiers required in subsection (3) of this section.
(3) The recognition card requirements must be developed by the department in rule and include:
(a) A randomly generated and unique identifying number;
(b) For designated providers, the unique identifying number of the qualifying patient whom the provider is assisting;
(c) A photograph of the qualifying patient's or designated provider's face taken by an employee of the marijuana retailer with a medical marijuana endorsement at the same time that the qualifying patient or designated provider is being placed in the medical marijuana authorization database in accordance with rules adopted by the department;
(d) The amount of marijuana concentrates, useable marijuana, marijuana-infused products, or plants for which the qualifying patient is authorized under RCW
69.51A.210;
(e) The effective date and expiration date of the recognition card;
(f) The name of the health care professional who authorized the qualifying patient or designated provider; and
(g) For the recognition card, additional security features as necessary to ensure its validity.
(4) For qualifying patients who are eighteen years of age or older and their designated providers, recognition cards are valid for one year from the date the health care professional issued the authorization. For qualifying patients who are under the age of eighteen and their designated providers, recognition cards are valid for six months from the date the health care professional issued the authorization. Qualifying patients may not be reentered into the medical marijuana authorization database until they have been reexamined by a health care professional and determined to meet the definition of qualifying patient. After reexamination, a marijuana retailer with a medical marijuana endorsement must reenter the qualifying patient or designated provider into the medical marijuana authorization database and a new recognition card will then be issued in accordance with department rules.
(5) If a recognition card is lost or stolen, a marijuana retailer with a medical marijuana endorsement, in conjunction with the database administrator, may issue a new card that will be valid for six months to one year if the patient is reexamined by a health care professional and determined to meet the definition of qualifying patient and depending on whether the patient is under the age of eighteen or eighteen years of age or older as provided in subsection (4) of this section. If a reexamination is not performed, the expiration date of the replacement recognition card must be the same as the lost or stolen recognition card.
(6) The database administrator must remove qualifying patients and designated providers from the medical marijuana authorization database upon expiration of the recognition card. Qualifying patients and designated providers may request to remove themselves from the medical marijuana authorization database before expiration of a recognition card and health care professionals may request to remove qualifying patients and designated providers from the medical marijuana authorization database if the patient or provider no longer qualifies for the medical use of marijuana. The database administrator must retain database records for at least five calendar years to permit the state liquor and cannabis board and the department of ((revenue))taxation to verify eligibility for tax exemptions.
(7) During development of the medical marijuana authorization database, the database administrator must consult with the department, stakeholders, and persons with relevant expertise to include, but not be limited to, qualifying patients, designated providers, health care professionals, state and local law enforcement agencies, and the University of Washington computer science and engineering security and privacy research lab or a certified cybersecurity firm, vendor, or service.
(8) The medical marijuana authorization database must meet the following requirements:
(a) Any personally identifiable information included in the database must be nonreversible, pursuant to definitions and standards set forth by the national institute of standards and technology;
(b) Any personally identifiable information included in the database must not be susceptible to linkage by use of data external to the database;
(c) The database must incorporate current best differential privacy practices, allowing for maximum accuracy of database queries while minimizing the chances of identifying the personally identifiable information included therein; and
(d) The database must be upgradable and updated in a timely fashion to keep current with state of the art privacy and security standards and practices.
(9)(a) Personally identifiable information of qualifying patients and designated providers included in the medical marijuana authorization database is confidential and exempt from public disclosure, inspection, or copying under chapter
42.56 RCW.
(b) Information contained in the medical marijuana authorization database may be released in aggregate form, with all personally ((identifying [identifiable]))identifiable information redacted, for the purpose of statistical analysis and oversight of agency performance and actions.
(c) Information contained in the medical marijuana authorization database shall not be shared with the federal government or its agents unless the particular ((
[qualifying]))
qualifying patient or designated provider is convicted in state court for violating this chapter or chapter
69.50 RCW.
(10)(a) The department must charge a one dollar fee for each initial and renewal recognition card issued by a marijuana retailer with a medical marijuana endorsement. The marijuana retailer with a medical marijuana endorsement shall collect the fee from the qualifying patient or designated provider at the time that he or she is entered into the database and issued a recognition card. The department shall establish a schedule for marijuana retailers with a medical marijuana endorsement to remit the fees collected. Fees collected under this subsection shall be deposited into the health professions account created under RCW
43.70.320.
(b) By November 1, 2016, the department shall report to the governor and the fiscal committees of both the house of representatives and the senate regarding the cost of implementation and administration of the medical marijuana authorization database. The report must specify amounts from the health professions account used to finance the establishment and administration of the medical marijuana authorization database as well as estimates of the continuing costs associated with operating the medical marijuana (([authorization]))authorization database. The report must also provide initial enrollment figures in the medical marijuana authorization database and estimates of expected future enrollment.
(11) If the database administrator fails to comply with this section, the department may cancel any contracts with the database administrator and contract with another database administrator to continue administration of the database. A database administrator who fails to comply with this section is subject to a fine of up to five thousand dollars in addition to any penalties established in the contract. Fines collected under this section must be deposited into the health professions account created under RCW
43.70.320.
(12) The department may adopt rules to implement this section.
Sec. 174. RCW
70.93.180 and 2015 c 15 s 3 are each amended to read as follows:
(1) There is hereby created an account within the state treasury to be known as the waste reduction, recycling, and litter control account. Moneys in the account may be spent only after appropriation. Expenditures from the waste reduction, recycling, and litter control account shall be used as follows:
(a) Fifty percent to the department of ecology, for use by the departments of ecology, natural resources, ((
revenue))
taxation, transportation, and corrections, and the parks and recreation commission, for use in litter collection programs, to be distributed under RCW
70.93.220. The amount to the department of ecology shall also be used for a central coordination function for litter control efforts statewide; for statewide public awareness programs under RCW
70.93.200(7); and to support employment of youth in litter cleanup as intended in RCW
70.93.020, and for litter pick up using other authorized agencies. The amount to the department shall also be used to defray the costs of administering the funding, coordination, and oversight of local government programs for waste reduction, litter control, recycling, and composting so that local governments can apply one hundred percent of their funding to achieving program goals. The amount to the department of ((
revenue))
taxation shall be used to enforce compliance with the litter tax imposed in chapter
82.19 RCW;
(b)(i) Twenty percent to the department for local government funding programs for waste reduction, litter control, recycling activities, and composting activities by cities and counties under RCW
70.93.250, to be administered by the department of ecology; (ii) any unspent funds under (b)(i) of this subsection may be used to create and pay for a matching fund competitive grant program to be used by local governments and nonprofit organizations for local or statewide education programs designed to help the public with litter control, waste reduction, recycling, and composting of primarily the products taxed under chapter
82.19 RCW. Grants must adhere to the following requirements: (A) No grant may exceed sixty thousand dollars; (B) grant recipients shall match the grant funding allocated by the department by an amount equal to twenty-five percent of eligible expenses. A local government's share of these costs may be met by cash or contributed services; (C) the obligation of the department to make grant payments is contingent upon the availability of the amount of money appropriated for this subsection (1)(b); and (D) grants are managed under the guidelines for existing grant programs; and
(c) Thirty percent to the department of ecology to: (i) Implement activities under RCW
70.93.200 for waste reduction, recycling, and composting efforts; (ii) provide technical assistance to local governments for commercial business and residential recycling programs primarily for the products taxed under chapter
82.19 RCW designed to educate citizens about waste reduction, litter control, and recyclable and compostable products and programs; and (iii) increase access to waste reduction, composting, and recycling programs, particularly for food packaging and plastic bags and appropriate composting techniques.
(2) All taxes imposed in RCW
82.19.010 and fines and bail forfeitures collected or received pursuant to this chapter shall be deposited in the waste reduction, recycling, and litter control account and used for the programs under subsection (1) of this section.
(3) Not less than five percent and no more than ten percent of the amount appropriated into the waste reduction, recycling, and litter control account every biennium shall be reserved for capital needs, including the purchase of vehicles for transporting crews and for collecting litter and solid waste. Capital funds shall be distributed among state agencies and local governments according to the same criteria provided in RCW
70.93.220 for the remainder of the funds, so that the most effective waste reduction, litter control, recycling, and composting programs receive the most funding. The intent of this subsection is to provide funds for the purchase of equipment that will enable the department to account for the greatest return on investment in terms of reaching a zero litter goal.
(4) Funds in the waste reduction, recycling, and litter control account, collected under chapter
82.19 RCW, must be prioritized for the products identified under RCW
82.19.020 solely for the purposes of recycling, composting, and litter collection, reduction, and control programs.
Sec. 175. RCW
70.94.161 and 2008 c 14 s 6 are each amended to read as follows:
The department of ecology, or board of an authority, shall require renewable permits for the operation of air contaminant sources subject to the following conditions and limitations:
(1) Permits shall be issued for a term of five years. A permit may be modified or amended during its term at the request of the permittee, or for any reason allowed by the federal clean air act. The rules adopted pursuant to subsection (2) of this section shall include rules for permit amendments and modifications. The terms and conditions of a permit shall remain in effect after the permit itself expires if the permittee submits a timely and complete application for permit renewal.
(2)(a) Rules establishing the elements for a statewide operating permit program and the process for permit application and renewal consistent with federal requirements shall be established by the department by January 1, 1993. The rules shall provide that every proposed permit must be reviewed prior to issuance by a professional engineer or staff under the direct supervision of a professional engineer in the employ of the permitting authority. The permit program established by these rules shall be administered by the department and delegated local air authorities. Rules developed under this subsection shall not preclude a delegated local air authority from including in a permit its own more stringent emission standards and operating restrictions.
(b) The board of any local air pollution control authority may apply to the department of ecology for a delegation order authorizing the local authority to administer the operating permit program for sources under that authority's jurisdiction. The department shall, by order, approve such delegation, if the department finds that the local authority has the technical and financial resources, to discharge the responsibilities of a permitting authority under the federal clean air act. A delegation request shall include adequate information about the local authority's resources to enable the department to make the findings required by this subsection. However, any delegation order issued under this subsection shall take effect ninety days after the environmental protection agency authorizes the local authority to issue operating permits under the federal clean air act.
(c) Except for the authority granted the energy facility site evaluation council to issue permits for the new construction, reconstruction, or enlargement or operation of new energy facilities under chapter
80.50 RCW, the department may exercise the authority, as delegated by the environmental protection agency, to administer Title IV of the federal clean air act as amended and to delegate such administration to local authorities as applicable pursuant to (b) of this subsection.
(3) In establishing technical standards, defined in RCW
70.94.030, the permitting authority shall consider and, if found to be appropriate, give credit for waste reduction within the process.
(4) Operating permits shall apply to all sources (a) where required by the federal clean air act, and (b) for any source that may cause or contribute to air pollution in such quantity as to create a threat to the public health or welfare. Subsection (b) of this subsection is not intended to apply to small businesses except when both of the following limitations are satisfied: (i) The source is in an area exceeding or threatening to exceed federal or state air quality standards; and (ii) the department provides a reasonable justification that requiring a source to have a permit is necessary to meet a federal or state air quality standard, or to prevent exceeding a standard in an area threatening to exceed the standard. For purposes of this subsection "areas threatening to exceed air quality standards" shall mean areas projected by the department to exceed such standards within five years. Prior to identifying threatened areas the department shall hold a public hearing or hearings within the proposed areas.
(5) Sources operated by government agencies are not exempt under this section.
(6) Within one hundred eighty days after the United States environmental protection agency approves the state operating permit program, a person required to have a permit shall submit to the permitting authority a compliance plan and permit application, signed by a responsible official, certifying the accuracy of the information submitted. Until permits are issued, existing sources shall be allowed to operate under presently applicable standards and conditions provided that such sources submit complete and timely permit applications.
(7) All draft permits shall be subject to public notice and comment. The rules adopted pursuant to subsection (2) of this section shall specify procedures for public notice and comment. Such procedures shall provide the permitting agency with an opportunity to respond to comments received from interested parties prior to the time that the proposed permit is submitted to the environmental protection agency for review pursuant to section 505(a) of the federal clean air act. In the event that the environmental protection agency objects to a proposed permit pursuant to section 505(b) of the federal clean air act, the permitting authority shall not issue the permit, unless the permittee consents to the changes required by the environmental protection agency.
(8) The procedures contained in chapter
43.21B RCW shall apply to permit appeals. The pollution control hearings board may stay the effectiveness of any permit issued under this section during the pendency of an appeal filed by the permittee, if the permittee demonstrates that compliance with the permit during the pendency of the appeal would require significant expenditures that would not be necessary in the event that the permittee prevailed on the merits of the appeal.
(9) After the effective date of any permit program promulgated under this section, it shall be unlawful for any person to: (a) Operate a permitted source in violation of any requirement of a permit issued under this section; or (b) fail to submit a permit application at the time required by rules adopted under subsection (2) of this section.
(10) Each air operating permit shall state the origin of and specific legal authority for each requirement included therein. Every requirement in an operating permit shall be based upon the most stringent of the following requirements:
(a) The federal clean air act and rules implementing that act, including provision of the approved state implementation plan;
(b) This chapter and rules adopted thereunder;
(c) In permits issued by a local air pollution control authority, the requirements of any order or regulation adopted by that authority;
(d) Chapter
70.98 RCW and rules adopted thereunder; and
(e) Chapter
80.50 RCW and rules adopted thereunder.
(11) Consistent with the provisions of the federal clean air act, the permitting authority may issue general permits covering categories of permitted sources, and temporary permits authorizing emissions from similar operations at multiple temporary locations.
(12) Permit program sources within the territorial jurisdiction of an authority delegated the operating permit program shall file their permit applications with that authority, except that permit applications for sources regulated on a statewide basis pursuant to RCW
70.94.395 shall be filed with the department. Permit program sources outside the territorial jurisdiction of a delegated authority shall file their applications with the department. Permit program sources subject to chapter
80.50 RCW shall, irrespective of their location, file their applications with the energy facility site evaluation council.
(13) When issuing operating permits to coal-fired electric generating plants, the permitting authority shall establish requirements consistent with Title IV of the federal clean air act.
(14)(a) The department and the local air authorities are authorized to assess and to collect, and each source emitting one hundred tons or more per year of a regulated pollutant shall pay an interim assessment to fund the development of the operating permit program during fiscal year 1994.
(b) The department shall conduct a workload analysis and prepare an operating permit program development budget for fiscal year 1994. The department shall allocate among all sources emitting one hundred tons or more per year of a regulated pollutant during calendar year 1992 the costs identified in its program development budget according to a three-tiered model, with each of the three tiers being equally weighted, based upon:
(i) The number of sources;
(ii) The complexity of sources; and
(iii) The size of sources, as measured by the quantity of each regulated pollutant emitted by the source.
(c) Each local authority and the department shall collect from sources under their respective jurisdictions the interim fee determined by the department and shall remit the fee to the department.
(d) Each local authority may, in addition, allocate its fiscal year 1994 operating permit program development costs among the sources under its jurisdiction emitting one hundred tons or more per year of a regulated pollutant during calendar year 1992 and may collect an interim fee from these sources. A fee assessed pursuant to this subsection (14)(d) shall be collected at the same time as the fee assessed pursuant to (c) of this subsection.
(e) The fees assessed to a source under this subsection shall be limited to the first seven thousand five hundred tons for each regulated pollutant per year.
(15)(a) The department shall determine the persons liable for the fee imposed by subsection (14) of this section, compute the fee, and provide by November 1, 1993, the identity of the fee payer with the computation of the fee to each local authority and to the department of ((
revenue))
taxation for collection. The department of ((
revenue))
taxation shall collect the fee computed by the department from the fee payers under the jurisdiction of the department. The administrative, collection, and penalty provisions of chapter
82.32 RCW shall apply to the collection of the fee by the department of ((
revenue))
taxation. The department shall provide technical assistance to the department of ((
revenue))
taxation for decisions made by the department of ((
revenue))
taxation pursuant to RCW
82.32.160 and
82.32.170. All interim fees collected by the department of ((
revenue))
taxation on behalf of the department and all interim fees collected by local authorities on behalf of the department shall be deposited in the air operating permit account. The interim fees collected by the local air authorities to cover their permit program development costs under subsection (14)(d) of this section shall be deposited in the dedicated accounts of their respective treasuries.
(b) All fees identified in this section shall be due and payable on March 1, 1994, except that the local air pollution control authorities may adopt by rule an earlier date on which fees are to be due and payable. The section 5, chapter 252, Laws of 1993 amendments to RCW
70.94.161 do not have the effect of terminating, or in any way modifying, any liability, civil or criminal, incurred pursuant to the provisions of RCW
70.94.161 (15) and (17) as they existed prior to July 25, 1993.
(16) For sources or source categories not required to obtain permits under subsection (4) of this section, the department or local authority may establish by rule control technology requirements. If control technology rule revisions are made by the department or local authority under this subsection, the department or local authority shall consider the remaining useful life of control equipment previously installed on existing sources before requiring technology changes. The department or any local air authority may issue a general permit, as authorized under the federal clean air act, for such sources.
(17) Emissions of greenhouse gases as defined in RCW
70.235.010 must be reported as required by RCW
70.94.151. The reporting provisions of RCW
70.94.151 shall not apply to any other emissions from any permit program source after the effective date of United States environmental protection agency approval of the state operating permit program.
Sec. 176. RCW
70.94.162 and 2014 c 76 s 5 are each amended to read as follows:
(1) The department and delegated local air authorities are authorized to determine, assess, and collect, and each permit program source shall pay, annual fees sufficient to cover the direct and indirect costs of implementing a state operating permit program approved by the United States environmental protection agency under the federal clean air act. However, a source that receives its operating permit from the United States environmental protection agency shall not be considered a permit program source so long as the environmental protection agency continues to act as the permitting authority for that source. Each permitting authority shall develop by rule a fee schedule allocating among its permit program sources the costs of the operating permit program, and may, by rule, establish a payment schedule whereby periodic installments of the annual fee are due and payable more frequently. All operating permit program fees collected by the department shall be deposited in the air operating permit account. All operating permit program fees collected by the delegated local air authorities shall be deposited in their respective air operating permit accounts or other accounts dedicated exclusively to support of the operating permit program. The fees assessed under this subsection shall first be due not less than forty-five days after the United States environmental protection agency delegates to the department the authority to administer the operating permit program and then annually thereafter.
The department shall establish, by rule, procedures for administrative appeals to the department regarding the fee assessed pursuant to this subsection.
(2) The fee schedule developed by each permitting authority shall fully cover and not exceed both its permit administration costs and the permitting authority's share of statewide program development and oversight costs.
(a) Permit administration costs are those incurred by each permitting authority, including the department, in administering and enforcing the operating permit program with respect to sources under its jurisdiction. Costs associated with the following activities are fee eligible as these activities relate to the operating permit program and to the sources permitted by a permitting authority, including, where applicable, sources subject to a general permit:
(i) Preapplication assistance and review of an application and proposed compliance plan for a permit, permit revision, or renewal;
(ii) Source inspections, testing, and other data-gathering activities necessary for the development of a permit, permit revision, or renewal;
(iii) Acting on an application for a permit, permit revision, or renewal, including the costs of developing an applicable requirement as part of the processing of a permit, permit revision, or renewal, preparing a draft permit and fact sheet, and preparing a final permit, but excluding the costs of developing BACT, LAER, BART, or RACT requirements for criteria and toxic air pollutants;
(iv) Notifying and soliciting, reviewing and responding to comment from the public and contiguous states and tribes, conducting public hearings regarding the issuance of a draft permit and other costs of providing information to the public regarding operating permits and the permit issuance process;
(v) Modeling necessary to establish permit limits or to determine compliance with permit limits;
(vi) Reviewing compliance certifications and emissions reports and conducting related compilation and reporting activities;
(vii) Conducting compliance inspections, complaint investigations, and other activities necessary to ensure that a source is complying with permit conditions;
(viii) Administrative enforcement activities and penalty assessment, excluding the costs of proceedings before the pollution control hearings board and all costs of judicial enforcement;
(ix) The share attributable to permitted sources of the development and maintenance of emissions inventories;
(x) The share attributable to permitted sources of ambient air quality monitoring and associated recording and reporting activities;
(xi) Training for permit administration and enforcement;
(xii) Fee determination, assessment, and collection, including the costs of necessary administrative dispute resolution and penalty collection;
(xiii) Required fiscal audits, periodic performance audits, and reporting activities;
(xiv) Tracking of time, revenues and expenditures, and accounting activities;
(xv) Administering the permit program including the costs of clerical support, supervision, and management;
(xvi) Provision of assistance to small businesses under the jurisdiction of the permitting authority as required under section 507 of the federal clean air act; and
(xvii) Other activities required by operating permit regulations issued by the United States environmental protection agency under the federal clean air act.
(b) Development and oversight costs are those incurred by the department in developing and administering the state operating permit program, and in overseeing the administration of the program by the delegated local permitting authorities. Costs associated with the following activities are fee eligible as these activities relate to the operating permit program:
(i) Review and determinations necessary for delegation of authority to administer and enforce a permit program to a local air authority under RCW
70.94.161(2) and
70.94.860;
(ii) Conducting fiscal audits and periodic performance audits of delegated local authorities, and other oversight functions required by the operating permit program;
(iii) Administrative enforcement actions taken by the department on behalf of a permitting authority, including those actions taken by the department under RCW
70.94.785, but excluding the costs of proceedings before the pollution control hearings board and all costs of judicial enforcement;
(iv) Determination and assessment with respect to each permitting authority of the fees covering its share of the costs of development and oversight;
(v) Training and assistance for permit program administration and oversight, including training and assistance regarding technical, administrative, and data management issues;
(vi) Development of generally applicable regulations or guidance regarding the permit program or its implementation or enforcement;
(vii) State codification of federal rules or standards for inclusion in operating permits;
(viii) Preparation of delegation package and other activities associated with submittal of the state permit program to the United States environmental protection agency for approval, including ongoing coordination activities;
(ix) General administration and coordination of the state permit program, related support activities, and other agency indirect costs, including necessary data management and quality assurance;
(x) Required fiscal audits and periodic performance audits of the department, and reporting activities;
(xi) Tracking of time, revenues and expenditures, and accounting activities;
(xii) Public education and outreach related to the operating permit program, including the maintenance of a permit register;
(xiii) The share attributable to permitted sources of compiling and maintaining emissions inventories;
(xiv) The share attributable to permitted sources of ambient air quality monitoring, related technical support, and associated recording activities;
(xv) The share attributable to permitted sources of modeling activities;
(xvi) Provision of assistance to small business as required under section 507 of the federal clean air act as it exists on July 25, 1993, or its later enactment as adopted by reference by the director by rule;
(xvii) Provision of services by the department of ((revenue))taxation and the office of the state attorney general and other state agencies in support of permit program administration;
(xviii) A one-time revision to the state implementation plan to make those administrative changes necessary to ensure coordination of the state implementation plan and the operating permit program; and
(xix) Other activities required by operating permit regulations issued by the United States environmental protection agency under the federal clean air act.
(3) The responsibility for operating permit fee determination, assessment, and collection is to be shared by the department and delegated local air authorities as follows:
(a) Each permitting authority, including the department, acting in its capacity as a permitting authority, shall develop a fee schedule and mechanism for collecting fees from the permit program sources under its jurisdiction; the fees collected by each authority shall be sufficient to cover its costs of permit administration and its share of the department's costs of development and oversight. Each delegated local authority shall remit to the department its share of the department's development and oversight costs.
(b) Only those local air authorities to whom the department has delegated the authority to administer the program pursuant to RCW
70.94.161(2) (b) and (c) and
70.94.860 shall have the authority to administer and collect operating permit fees. The department shall retain the authority to administer and collect such fees with respect to the sources within the jurisdiction of a local air authority until the effective date of program delegation to that air authority.
(c) The department shall allocate its development and oversight costs among all permitting authorities, including the department, in proportion to the number of permit program sources under the jurisdiction of each authority, except that extraordinary costs or other costs readily attributable to a specific permitting authority may be assessed that authority. For purposes of this subsection, all sources covered by a single general permit shall be treated as one source.
(4) The department and each delegated local air authority shall adopt by rule a general permit fee schedule for sources under their respective jurisdictions after such time as the department adopts provisions for general permit issuance. Within ninety days of the time that the department adopts a general permit fee schedule, the department shall report to the relevant standing committees of the legislature regarding the general permit fee schedules adopted by the department and by the delegated local air authorities. The permit administration costs of each general permit shall be allocated equitably among only those sources subject to that general permit. The share of development and oversight costs attributable to each general permit shall be determined pursuant to subsection (3)(c) of this section.
(5) The fee schedule developed by the department shall allocate among the sources for whom the department acts as a permitting authority, other than sources subject to a general permit, those portions of the department's permit administration costs and the department's share of the development and oversight costs which the department does not plan to recover under its general permit fee schedule or schedules as follows:
(a) The department shall allocate its permit administration costs and its share of the development and oversight costs not recovered through general permit fees according to a three-tiered model based upon:
(i) The number of permit program sources under its jurisdiction;
(ii) The complexity of permit program sources under its jurisdiction; and
(iii) The size of permit program sources under its jurisdiction, as measured by the quantity of each regulated pollutant emitted by the source.
(b) Each of the three tiers shall be equally weighted.
(c) The department may, in addition, allocate activities-based costs readily attributable to a specific source to that source under RCW
70.94.152(1) and
70.94.154(7).
The quantity of each regulated pollutant emitted by a source shall be determined based on the annual emissions during the most recent calendar year for which data is available.
(6) The department shall, after opportunity for public review and comment, adopt rules that establish a process for development and review of its operating permit program fee schedule, a methodology for tracking program revenues and expenditures, and, for both the department and the delegated local air authorities, a system of fiscal audits, reports, and periodic performance audits.
(a) The fee schedule development and review process shall include the following:
(i) The department shall conduct a biennial workload analysis. The department shall provide the opportunity for public review of and comment on the workload analysis. The department shall review and update its workload analysis during each biennial budget cycle, taking into account information gathered by tracking previous revenues, time, and expenditures and other information obtained through fiscal audits and performance audits.
(ii) The department shall prepare a biennial budget based upon the resource requirements identified in the workload analysis for that biennium. In preparing the budget, the department shall take into account the projected operating permit account balance at the start of the biennium. The department shall provide the opportunity for public review of and comment on the proposed budget. The department shall review and update its budget each biennium.
(iii) The department shall develop a fee schedule allocating the department's permit administration costs and its share of the development and oversight costs among the department's permit program sources using the methodology described in subsection (5) of this section. The department shall provide the opportunity for public review of and comment on the allocation methodology and fee schedule. The department shall provide procedures for administrative resolution of disputes regarding the source data on which allocation determinations are based; these procedures shall be designed such that resolution occurs prior to the completion of the allocation process. The department shall review and update its fee schedule annually.
(b) The methodology for tracking revenues and expenditures shall include the following:
(i) The department shall develop a system for tracking revenues and expenditures that provides the maximum practicable information. At a minimum, revenues from fees collected under the operating permit program shall be tracked on a source-specific basis and time and expenditures required to administer the program shall be tracked on the basis of source categories and functional categories. Each general permit will be treated as a separate source category for tracking and accounting purposes.
(ii) The department shall use the information obtained from tracking revenues, time, and expenditures to modify the workload analysis required in subsection (6)(a) of this section.
(iii) The information obtained from tracking revenues, time, and expenditures shall not provide a basis for challenge to the amount of an individual source's fee.
(c) The system of fiscal audits, reports, and periodic performance audits shall include the following:
(i) The department and the delegated local air authorities shall periodically report information about the air operating permit program on the department's web site.
(ii) The department shall arrange for fiscal audits and routine performance audits and for periodic intensive performance audits of each permitting authority and of the department.
(7) Each local air authority requesting delegation shall, after opportunity for public review and comment, publish regulations which establish a process for development and review of its operating permit program fee schedule, and a methodology for tracking its revenues and expenditures. These regulations shall be submitted to the department for review and approval as part of the local authority's delegation request.
(8) As used in this section and in RCW
70.94.161(14), "regulated pollutant" shall have the same meaning as defined in section 502(b) of the federal clean air act as it exists on July 25, 1993, or its later enactment as adopted by reference by the director by rule.
(9) Fee structures as authorized under this section shall remain in effect until such time as the legislature authorizes an alternative structure following receipt of the report required by this subsection.
Sec. 177. RCW
70.94.483 and 2003 1st sp.s. c 25 s 932 are each amended to read as follows:
(1) The woodstove education and enforcement account is hereby created in the state treasury. Money placed in the account shall include all money received under subsection (2) of this section and any other money appropriated by the legislature. Money in the account shall be spent for the purposes of the woodstove education program established under RCW
70.94.480 and for enforcement of the woodstove program, and shall be subject to legislative appropriation. However, during the 2003-05 fiscal biennium, the legislature may transfer from the woodstove education and enforcement account to the air pollution control account such amounts as specified in the omnibus operating budget bill.
(2) The department of ecology, with the advice of the advisory committee, shall set a flat fee of thirty dollars, on the retail sale, as defined in RCW
82.04.050, of each solid fuel burning device after January 1, 1992. The fee shall be imposed upon the consumer and shall not be subject to the retail sales tax provisions of chapters
82.08 and
82.12 RCW. The fee may be adjusted annually above thirty dollars to account for inflation as determined by the state office of the economic and revenue forecast council. The fee shall be collected by the department of ((
revenue))
taxation in conjunction with the retail sales tax under chapter
82.08 RCW. If the seller fails to collect the fee herein imposed or fails to remit the fee to the department of ((
revenue))
taxation in the manner prescribed in chapter
82.08 RCW, the seller shall be personally liable to the state for the amount of the fee. The collection provisions of chapter
82.32 RCW shall apply. The department of ((
revenue))
taxation shall deposit fees collected under this section in the woodstove education and enforcement account.
Sec. 178. RCW
70.95.510 and 2009 c 261 s 2 are each amended to read as follows:
(1) There is levied a one dollar per tire fee on the retail sale of new replacement vehicle tires. The fee imposed in this section must be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the fee. The fee collected from the buyer by the seller less the ten percent amount retained by the seller as provided in RCW
70.95.535(1) must be paid to the department of ((
revenue))
taxation in accordance with RCW
82.32.045.
(2) The department of ((revenue))taxation shall incorporate into the agency's regular audit cycle a reconciliation of the number of tires sold and the amount of revenue collected by the businesses selling new replacement vehicle tires at retail. The department of ((revenue))taxation shall collect on the business excise tax return from the businesses selling new replacement vehicle tires at retail:
(a) The number of tires sold; and
(b) The fee levied in this section.
(3) All other applicable provisions of chapter
82.32 RCW have full force and application with respect to the fee imposed under this section. The department of ((
revenue))
taxation shall administer this section.
(4) For the purposes of this section, "new replacement vehicle tires" means tires that are newly manufactured for vehicle purposes and does not include retreaded vehicle tires.
Sec. 179. RCW
70.95.515 and 2005 c 354 s 4 are each amended to read as follows:
(1) The fee required by this chapter, to be collected by the seller, shall be deemed to be held in trust by the seller until paid to the department of ((revenue))taxation, and any seller who appropriates or converts the fee collected to his or her own use or to any use other than the payment of the fee to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a gross misdemeanor.
(2) In case any seller fails to collect the fee imposed in this chapter or, having collected the fee, fails to pay it to the department of ((revenue))taxation in the manner prescribed by this chapter, whether such failure is the result of his or her own acts or the result of acts or conditions beyond his or her control, he or she shall, nevertheless, be personally liable to the state for the amount of the fee.
(3) The amount of the fee, until paid by the buyer to the seller or to the department of ((revenue))taxation, shall constitute a debt from the buyer to the seller and any seller who fails or refuses to collect the fee as required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any fee due under this chapter is guilty of a misdemeanor.
Sec. 180. RCW
70.95C.220 and 2005 c 274 s 338 are each amended to read as follows:
(1) The department may review a plan, executive summary, or an annual progress report to determine whether the plan, executive summary, or annual progress report is adequate pursuant to the rules developed under this section and with the provisions of RCW
70.95C.200. In determining the adequacy of any plan, executive summary, or annual progress report, the department shall base its determination solely on whether the plan, executive summary, or annual progress report is complete and prepared in accordance with the provisions of RCW
70.95C.200.
(2) Plans developed under RCW
70.95C.200 shall be retained at the facility of the hazardous substance user or hazardous waste generator preparing a plan. The plan is not a public record under the public records act, chapter
42.56 RCW. A user or generator required to prepare a plan shall permit the director or a representative of the director to review the plan to determine its adequacy. No visit made by the director or a representative of the director to a facility for the purposes of this subsection may be regarded as an inspection or investigation, and no notices or citations may be issued, nor any civil penalty assessed, upon such a visit.
(3) If a hazardous substance user or hazardous waste generator fails to complete an adequate plan, executive summary, or annual progress report, the department shall notify the user or generator of the inadequacy, identifying specific deficiencies. For the purposes of this section, a deficiency may include failure to develop a plan, failure to submit an executive summary pursuant to the schedule provided in RCW
70.95C.200(5), and failure to submit an annual progress report pursuant to the rules developed under RCW
70.95C.200(6). The department shall specify a reasonable time frame, of not less than ninety days, within which the user or generator shall complete a modified plan, executive summary, or annual progress report addressing the specified deficiencies.
(4) If the department determines that a modified plan, executive summary, or annual progress report is inadequate, the department may, within its discretion, either require further modification or enter an order pursuant to subsection (5)(a) of this section.
(5)(a) If, after having received a list of specified deficiencies from the department, a hazardous substance user or hazardous waste generator required to prepare a plan fails to complete modification of a plan, executive summary, or annual progress report within the time period specified by the department, the department may enter an order pursuant to chapter
34.05 RCW finding the user or generator not in compliance with the requirements of RCW
70.95C.200. When the order is final, the department shall notify the department of ((
revenue))
taxation to charge a penalty fee. The penalty fee shall be the greater of one thousand dollars or three times the amount of the user's or generator's previous year's fee, in addition to the current year's fee. If no fee was assessed the previous year, the penalty shall be the greater of one thousand dollars or three times the amount of the current year's fee. The penalty assessed under this subsection shall be collected each year after the year for which the penalty was assessed until an adequate plan or executive summary is completed.
(b) If a hazardous substance user or hazardous waste generator required to prepare a plan fails to complete an adequate plan, executive summary, or annual progress report after the department has levied against the user or generator the penalty provided in (a) of this subsection, the user or generator shall be required to pay a surcharge to the department whenever the user or generator disposes of a hazardous waste at any hazardous waste incinerator or hazardous waste landfill facility located in Washington state, until a plan, executive summary, or annual progress report is completed and determined to be adequate by the department. The surcharge shall be equal to three times the fee charged for disposal. The department shall furnish the incinerator and landfill facilities in this state with a list of environmental protection agency/state identification numbers of the hazardous waste generators that are not in compliance with the requirements of RCW
70.95C.200.
Sec. 181. RCW
70.105D.070 and 2018 c 299 s 911 are each amended to read as follows:
(1) The state toxics control account and the local toxics control account are hereby created in the state treasury.
(2)(a) Moneys collected under RCW
82.21.030 must be deposited as follows: Fifty-six percent to the state toxics control account under subsection (3) of this section and forty-four percent to the local toxics control account under subsection (4) of this section. When the cumulative amount of deposits made to the state and local toxics control accounts under this section reaches the limit during a fiscal year as established in (b) of this subsection, the remainder of the moneys collected under RCW
82.21.030 during that fiscal year must be deposited into the environmental legacy stewardship account created in RCW
70.105D.170.
(b) The limit on distributions of moneys collected under RCW
82.21.030 to the state and local toxics control accounts for the fiscal year beginning July 1, 2013, is one hundred forty million dollars.
(c) In addition to the funds required under (a) of this subsection, the following moneys must be deposited into the state toxics control account: (i) The costs of remedial actions recovered under this chapter or chapter
70.105A RCW; (ii) penalties collected or recovered under this chapter; and (iii) any other money appropriated or transferred to the account by the legislature.
(3) Moneys in the state toxics control account must be used only to carry out the purposes of this chapter, including but not limited to the following activities:
(a) The state's responsibility for hazardous waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter
70.105 RCW;
(b) The state's responsibility for solid waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter
70.95 RCW;
(c) The hazardous waste clean-up program required under this chapter;
(d) State matching funds required under federal cleanup law;
(e) Financial assistance for local programs in accordance with chapters
70.95, 70.95C, 70.95I, and
70.105 RCW;
(f) State government programs for the safe reduction, recycling, or disposal of paint and hazardous wastes from households, small businesses, and agriculture;
(g) Oil and hazardous materials spill prevention, preparedness, training, and response activities;
(h) Water and environmental health protection and monitoring programs;
(i) Programs authorized under chapter
70.146 RCW;
(j) A public participation program;
(k) Public funding to assist potentially liable persons to pay for the costs of remedial action in compliance with clean-up standards under RCW
70.105D.030(2)(e) but only when the amount and terms of such funding are established under a settlement agreement under RCW
70.105D.040(4) and when the director has found that the funding will achieve both: (i) A substantially more expeditious or enhanced cleanup than would otherwise occur; and (ii) the prevention or mitigation of unfair economic hardship;
(l) Development and demonstration of alternative management technologies designed to carry out the hazardous waste management priorities of RCW
70.105.150;
(m) State agriculture and health programs for the safe use, reduction, recycling, or disposal of pesticides;
(n) Stormwater pollution control projects and activities that protect or preserve existing remedial actions or prevent hazardous clean-up sites;
(o) Funding requirements to maintain receipt of federal funds under the federal solid waste disposal act (42 U.S.C. Sec. 6901 et seq.);
(p) Air quality programs and actions for reducing public exposure to toxic air pollution;
(q) Public funding to assist prospective purchasers to pay for the costs of remedial action in compliance with clean-up standards under RCW
70.105D.030(2)(e) if:
(i) The facility is located within a redevelopment opportunity zone designated under RCW
70.105D.150;
(ii) The amount and terms of the funding are established under a settlement agreement under RCW
70.105D.040(5); and
(iii) The director has found the funding meets any additional criteria established in rule by the department, will achieve a substantially more expeditious or enhanced cleanup than would otherwise occur, and will provide a public benefit in addition to cleanup commensurate with the scope of the public funding;
(r) Petroleum-based plastic or expanded polystyrene foam debris cleanup activities in fresh or marine waters;
(s) Appropriations to the local toxics control account or the environmental legacy stewardship account created in RCW
70.105D.170, if the legislature determines that priorities for spending exceed available funds in those accounts;
(t) During the 2015-2017 and 2017-2019 fiscal biennia, the department of ecology's water quality, shorelands, environmental assessment, administration, and air quality programs;
(u) During the 2013-2015 fiscal biennium, actions at the state conservation commission to improve water quality for shellfish;
(v) During the 2013-2015 and 2015-2017 fiscal biennia, actions at the University of Washington for reducing ocean acidification;
(w) During the 2015-2017 and 2017-2019 fiscal biennia, for the University of Washington Tacoma soil remediation project;
(x) For the 2013-2015 fiscal biennium, moneys in the state toxics control account may be spent on projects in section 3160, chapter 19, Laws of 2013 2nd sp. sess. and for transfer to the local toxics control account;
(y) For the 2013-2015 fiscal biennium, moneys in the state toxics control account may be transferred to the radioactive mixed waste account; and
(z) For the 2015-2017 and 2017-2019 fiscal biennia, forest practices regulation at the department of natural resources.
(4)(a) The department shall use moneys deposited in the local toxics control account for grants or loans to local governments for the following purposes in descending order of priority:
(i) Extended grant agreements entered into under (c)(i) of this subsection;
(ii) Remedial actions, including planning for adaptive reuse of properties as provided for under (c)(iv) of this subsection. The department must prioritize funding of remedial actions at:
(A) Facilities on the department's hazardous sites list with a high hazard ranking for which there is an approved remedial action work plan or an equivalent document under federal cleanup law;
(B) Brownfield properties within a redevelopment opportunity zone if the local government is a prospective purchaser of the property and there is a department-approved remedial action work plan or equivalent document under the federal cleanup law;
(iii) Stormwater pollution source projects that: (A) Work in conjunction with a remedial action; (B) protect completed remedial actions against recontamination; or (C) prevent hazardous clean-up sites;
(iv) Hazardous waste plans and programs under chapter
70.105 RCW;
(v) Solid waste plans and programs under chapters
70.95, 70.95C, 70.95I, and
70.105 RCW;
(vi) Petroleum-based plastic or expanded polystyrene foam debris cleanup activities in fresh or marine waters; and
(vii) Appropriations to the state toxics control account or the environmental legacy stewardship account created in RCW
70.105D.170, if the legislature determines that priorities for spending exceed available funds in those accounts.
(b) Funds for plans and programs must be allocated consistent with the priorities and matching requirements established in chapters
70.105, 70.95C, 70.95I, and
70.95 RCW.
(c) During the 2013-2015 fiscal biennium, the local toxics control account may also be used for local government stormwater planning and implementation activities.
(d) During the 2013-2015 fiscal biennium, the legislature may transfer from the local toxics control account to the state general fund, such amounts as reflect the excess fund balance in the account.
(e) To expedite cleanups throughout the state, the department may use the following strategies when providing grants to local governments under this subsection:
(i) Enter into an extended grant agreement with a local government conducting remedial actions at a facility where those actions extend over multiple biennia and the total eligible cost of those actions exceeds twenty million dollars. The agreement is subject to the following limitations:
(A) The initial duration of such an agreement may not exceed ten years. The department may extend the duration of such an agreement upon finding substantial progress has been made on remedial actions at the facility;
(B) Extended grant agreements may not exceed fifty percent of the total eligible remedial action costs at the facility; and
(C) The department may not allocate future funding to an extended grant agreement unless the local government has demonstrated to the department that funds awarded under the agreement during the previous biennium have been substantially expended or contracts have been entered into to substantially expend the funds;
(ii) Enter into a grant agreement with a local government conducting a remedial action that provides for periodic reimbursement of remedial action costs as they are incurred as established in the agreement;
(iii) Enter into a grant agreement with a local government prior to it acquiring a property or obtaining necessary access to conduct remedial actions, provided the agreement is conditioned upon the local government acquiring the property or obtaining the access in accordance with a schedule specified in the agreement;
(iv) Provide integrated planning grants to local governments to fund studies necessary to facilitate remedial actions at brownfield properties and adaptive reuse of properties following remediation. Eligible activities include, but are not limited to: Environmental site assessments; remedial investigations; health assessments; feasibility studies; site planning; community involvement; land use and regulatory analyses; building and infrastructure assessments; economic and fiscal analyses; and any environmental analyses under chapter
43.21C RCW;
(v) Provide grants to local governments for remedial actions related to area-wide groundwater contamination. To receive the funding, the local government does not need to be a potentially liable person or be required to seek reimbursement of grant funds from a potentially liable person;
(vi) The director may alter grant matching requirements to create incentives for local governments to expedite cleanups when one of the following conditions exists:
(A) Funding would prevent or mitigate unfair economic hardship imposed by the clean-up liability;
(B) Funding would create new substantial economic development, public recreational opportunities, or habitat restoration opportunities that would not otherwise occur; or
(C) Funding would create an opportunity for acquisition and redevelopment of brownfield property under RCW
70.105D.040(5) that would not otherwise occur;
(vii) When pending grant applications under (e)(iv) and (v) of this subsection (4) exceed the amount of funds available, designated redevelopment opportunity zones must receive priority for distribution of available funds.
(f) To expedite multiparty clean-up efforts, the department may purchase remedial action cost-cap insurance. For the 2013-2015 fiscal biennium, moneys in the local toxics control account may be spent on projects in sections 3024, 3035, 3036, and 3059, chapter 19, Laws of 2013 2nd sp. sess.
(5) Except for unanticipated receipts under RCW
43.79.260 through
43.79.282, moneys in the state and local toxics control accounts may be spent only after appropriation by statute.
(6) No moneys deposited into either the state or local toxics control account may be used for: Natural disasters where there is no hazardous substance contamination; high performance buildings; solid waste incinerator facility feasibility studies, construction, maintenance, or operation; or projects designed to address the restoration of Puget Sound, funded in a competitive grant process, that are in conflict with the action agenda developed by the Puget Sound partnership under RCW
90.71.310. However, this subsection does not prevent an appropriation from the state toxics control account to the department of ((
revenue))
taxation to enforce compliance with the hazardous substance tax imposed in chapter
82.21 RCW.
(7) Except during the 2011-2013 and the 2015-2017 fiscal biennia, one percent of the moneys collected under RCW
82.21.030 shall be allocated only for public participation grants to persons who may be adversely affected by a release or threatened release of a hazardous substance and to not-for-profit public interest organizations. The primary purpose of these grants is to facilitate the participation by persons and organizations in the investigation and remedying of releases or threatened releases of hazardous substances and to implement the state's solid and hazardous waste management priorities. No grant may exceed sixty thousand dollars. Grants may be renewed annually. Moneys appropriated for public participation that are not expended at the close of any biennium revert to the state toxics control account.
(8) The department shall adopt rules for grant or loan issuance and performance. To accelerate both remedial action and economic recovery, the department may expedite the adoption of rules necessary to implement chapter 1, Laws of 2013 2nd sp. sess. using the expedited procedures in RCW
34.05.353. The department shall initiate the award of financial assistance by August 1, 2013. To ensure the adoption of rules will not delay financial assistance, the department may administer the award of financial assistance through interpretive guidance pending the adoption of rules through July 1, 2014.
(9) Except as provided under subsection (3)(k) and (q) of this section, nothing in chapter 1, Laws of 2013 2nd sp. sess. affects the ability of a potentially liable person to receive public funding.
(10) During the 2015-2017 fiscal biennium the local toxics control account may also be used for the centennial clean water program and for the stormwater financial assistance program administered by the department of ecology.
(11) During the 2017-2019 fiscal biennium:
(a) The state toxics control account, the local toxics control account, and the environmental legacy stewardship account may be used for interchangeable purposes and funds may be transferred between accounts to accomplish those purposes.
(b) The legislature may direct the state treasurer to make transfers of moneys in the state toxics control account to the water pollution control revolving account.
Sec. 182. RCW
70.108.140 and 1972 ex.s. c 123 s 4 are each amended to read as follows:
The department of ((revenue))taxation shall be allowed to inspect the books and records of any outdoor music festival during the period of operation of the festival and after the festival has concluded for the purpose of determining whether or not the tax laws of this state are complied with.
Sec. 183. RCW
70.155.120 and 2016 sp.s. c 38 s 2 are each amended to read as follows:
(1) The youth tobacco and vapor products prevention account is created in the state treasury. All fees collected pursuant to RCW
82.24.520,
82.24.530,
82.26.160, and
82.26.170 and funds collected by the liquor and cannabis board from the imposition of monetary penalties shall be deposited into this account, except that ten percent of all such fees and penalties shall be deposited in the state general fund.
(2) Moneys appropriated from the youth tobacco and vapor products prevention account to the department of health shall be used by the department of health for implementation of this chapter, including collection and reporting of data regarding enforcement and the extent to which access to tobacco products and vapor products by youth has been reduced.
(3) The department of health shall enter into interagency agreements with the liquor and cannabis board to pay the costs incurred, up to thirty percent of available funds, in carrying out its enforcement responsibilities under this chapter. Such agreements shall set forth standards of enforcement, consistent with the funding available, so as to reduce the extent to which tobacco products and vapor products are available to individuals under the age of eighteen. The agreements shall also set forth requirements for data reporting by the liquor and cannabis board regarding its enforcement activities.
(4) The department of health, the liquor and cannabis board, and the department of ((revenue))taxation shall enter into an interagency agreement for payment of the cost of administering the tobacco retailer licensing system and for the provision of quarterly documentation of tobacco wholesaler, retailer, and vending machine names and locations.
(5) The department of health shall, within up to seventy percent of available funds, provide grants to local health departments or other local community agencies to develop and implement coordinated tobacco and vapor product intervention strategies to prevent and reduce tobacco and vapor product use by youth.
Sec. 184. RCW
70.157.010 and 1999 c 393 s 2 are each amended to read as follows:
(a) "Adjusted for inflation" means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.
(b) "Affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. Solely for purposes of this definition, the terms "owns," "is owned" and "ownership" mean ownership of an equity interest, or the equivalent thereof, of ten percent or more, and the term "person" means an individual, partnership, committee, association, corporation or any other organization or group of persons.
(c) "Allocable share" means Allocable Share as that term is defined in the Master Settlement Agreement.
(d) "Cigarette" means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or (2) tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or (3) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in clause (1) of this definition. The term "cigarette" includes "roll-your-own" (i.e., any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes). For purposes of this definition of "cigarette," 0.09 ounces of "roll-your-own" tobacco shall constitute one individual "cigarette".
(e) "Master Settlement Agreement" means the settlement agreement (and related documents) entered into on November 23, 1998 by the State and leading United States tobacco product manufacturers.
(f) "Qualified escrow fund" means an escrow arrangement with a federally or State chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least $1,000,000,000 where such arrangement requires that such financial institution hold the escrowed funds' principal for the benefit of releasing parties and prohibits the tobacco product manufacturer placing the funds into escrow from using, accessing or directing the use of the funds' principal except as consistent with RCW
70.157.020(b).
(g) "Released claims" means Released Claims as that term is defined in the Master Settlement Agreement.
(h) "Releasing parties" means Releasing Parties as that term is defined in the Master Settlement Agreement.
(i) "Tobacco Product Manufacturer" means an entity that after the date of enactment of this Act directly (and not exclusively through any affiliate):
(1) manufactures cigarettes anywhere that such manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States through an importer (except where such importer is an original participating manufacturer (as that term is defined in the Master Settlement Agreement) that will be responsible for the payments under the Master Settlement Agreement with respect to such cigarettes as a result of the provisions of subsections II(mm) of the Master Settlement Agreement and that pays the taxes specified in subsection II(z) of the Master Settlement Agreement, and provided that the manufacturer of such cigarettes does not market or advertise such cigarettes in the United States);
(2) is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or
(3) becomes a successor of an entity described in paragraph (1) or (2).
The term "Tobacco Product Manufacturer" shall not include an affiliate of a tobacco product manufacturer unless such affiliate itself falls within any of (1)-(3) above.
(j) "Units sold" means the number of individual cigarettes sold in the State by the applicable tobacco product manufacturer (whether directly or through a distributor, retailer or similar intermediary or intermediaries) during the year in question, as measured by excise taxes collected by the State on packs bearing the excise tax stamp of the State or "roll-your-own" tobacco containers. The department of ((revenue))taxation shall promulgate such regulations as are necessary to ascertain the amount of State excise tax paid on the cigarettes of such tobacco product manufacturer for each year.
Sec. 185. RCW
70.158.020 and 2003 c 25 s 2 are each amended to read as follows:
The following definitions apply to this chapter unless the context clearly requires otherwise.
(1) "Brand family" means all styles of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers or descriptors, including, but not limited to, "menthol," "lights," "kings," and "100s," and includes any brand name alone or in conjunction with any other word, trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product identification identical or similar to, or identifiable with, a previously known brand of cigarettes.
(2) "Board" means the liquor ((control))and cannabis board.
(3) "Cigarette" has the same meaning as in RCW
70.157.010(d).
(4) "Director" means the director of the department of ((revenue))taxation except as otherwise noted.
(5) "Directory" means the directory to be created and published on a web site by the attorney general pursuant to RCW
70.158.030(2).
(6) "Distributor" has the same meaning as in RCW
82.26.010(3), except that for purposes of this chapter, no person is a distributor if that person does not deal with cigarettes as defined in this section.
(7) "Master settlement agreement" has the same meaning as in RCW
70.157.010(e).
(8) "Nonparticipating manufacturer" means any tobacco product manufacturer that is not a participating manufacturer.
(9) "Participating manufacturer" has the meaning given that term in section II(jj) of the master settlement agreement.
(10) "Qualified escrow fund" has the same meaning as in RCW
70.157.010(f).
(11) "Stamp" means "stamp" as defined in RCW
82.24.010(7) or as referred to in RCW
43.06.455(4).
(12) "Tobacco product manufacturer" has the same meaning as in RCW
70.157.010(i).
(13) "Units sold" has the same meaning as in RCW
70.157.010(j).
(14) "Wholesaler" has the same meaning as in RCW
82.24.010.
Sec. 186. RCW
74.04.014 and 2018 c 58 s 9 are each amended to read as follows:
(1) In carrying out the provisions of this chapter, the office of fraud and accountability shall have prompt access to all individuals, records, electronic data, reports, audits, reviews, documents, and other materials available to the department of ((revenue))taxation, department of labor and industries, department of children, youth, and families, employment security department, department of licensing, and any other government entity that can be used to help facilitate investigations of fraud or abuse as determined necessary by the director of the office of fraud and accountability.
(2) The investigator shall have access to all original child care records maintained by licensed and unlicensed child care providers with the consent of the provider or with a court order or valid search warrant.
(3) Information gathered by the department, the office, or the fraud ombuds shall be safeguarded and remain confidential as required by applicable state or federal law. Whenever information or assistance requested under subsection (1) or (2) of this section is, in the judgment of the director, unreasonably refused or not provided, the director of the office of fraud and accountability must report the circumstances to the secretary immediately.
Sec. 187. RCW
74.08A.350 and 1997 c 58 s 1007 are each amended to read as follows:
The department of social and health services shall create a questionnaire, asking businesses for information regarding available and upcoming job opportunities for welfare recipients. The department of ((revenue))taxation shall include the questionnaire in a regular quarterly mailing. The department of social and health services shall receive responses and use the information to develop work activities in the areas where jobs will be available.
Sec. 188. RCW
74.20A.020 and 1997 c 58 s 805 are each amended to read as follows:
Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter and chapter
74.20 RCW shall have the following meanings:
(1) "Department" means the state department of social and health services.
(2) "Secretary" means the secretary of the department of social and health services, the secretary's designee or authorized representative.
(3) "Dependent child" means any person:
(a) Under the age of eighteen who is not self-supporting, married, or a member of the armed forces of the United States; or
(b) Over the age of eighteen for whom a court order for support exists.
(4) "Support obligation" means the obligation to provide for the necessary care, support, and maintenance, including medical expenses, of a dependent child or other person as required by statutes and the common law of this or another state.
(5) "Superior court order" means any judgment, decree, or order of the superior court of the state of Washington, or a court of comparable jurisdiction of another state, establishing the existence of a support obligation and ordering payment of a set or determinable amount of support moneys to satisfy the support obligation. For purposes of RCW
74.20A.055, orders for support which were entered under the uniform reciprocal enforcement of support act by a state where the responsible parent no longer resides shall not preclude the department from establishing an amount to be paid as current and future support.
(6) "Administrative order" means any determination, finding, decree, or order for support pursuant to RCW
74.20A.055, or by an agency of another state pursuant to a substantially similar administrative process, establishing the existence of a support obligation and ordering the payment of a set or determinable amount of support moneys to satisfy the support obligation.
(7) "Responsible parent" means a natural parent, adoptive parent, or stepparent of a dependent child or a person who has signed an affidavit acknowledging paternity which has been filed with the state office of vital statistics.
(8) "Stepparent" means the present spouse of the person who is either the mother, father, or adoptive parent of a dependent child, and such status shall exist until terminated as provided for in RCW
26.16.205.
(9) "Support moneys" means any moneys or in-kind providings paid to satisfy a support obligation whether denominated as child support, spouse support, alimony, maintenance, or any other such moneys intended to satisfy an obligation for support of any person or satisfaction in whole or in part of arrears or delinquency on such an obligation.
(10) "Support debt" means any delinquent amount of support moneys which is due, owing, and unpaid under a superior court order or an administrative order, a debt for the payment of expenses for the reasonable or necessary care, support, and maintenance, including medical expenses, of a dependent child or other person for whom a support obligation is owed; or a debt under RCW
74.20A.100 or
74.20A.270. Support debt also includes any accrued interest, fees, or penalties charged on a support debt, and attorneys fees and other costs of litigation awarded in an action to establish and enforce a support obligation or debt.
(11) "State" means any state or political subdivision, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
(12) "Account" means a demand deposit account, checking or negotiable withdrawal order account, savings account, time deposit account, or money-market mutual fund account.
(13) "Child support order" means a superior court order or an administrative order.
(14) "Financial institution" means:
(a) A depository institution, as defined in section 3(c) of the federal deposit insurance act;
(b) An institution-affiliated party, as defined in section 3(u) of the federal deposit insurance act;
(c) Any federal or state credit union, as defined in section 101 of the federal credit union act, including an institution-affiliated party of such credit union, as defined in section 206(r) of the federal deposit insurance act; or
(d) Any benefit association, insurance company, safe deposit company, money-market mutual fund, or similar entity.
(15) "License" means a license, certificate, registration, permit, approval, or other similar document issued by a licensing entity to a licensee evidencing admission to or granting authority to engage in a profession, occupation, business, industry, recreational pursuit, or the operation of a motor vehicle. "License" does not mean the tax registration or certification issued under Title
82 RCW by the department of ((
revenue))
taxation.
(16) "Licensee" means any individual holding a license, certificate, registration, permit, approval, or other similar document issued by a licensing entity evidencing admission to or granting authority to engage in a profession, occupation, business, industry, recreational pursuit, or the operation of a motor vehicle.
(17) "Licensing entity" includes any department, board, commission, or other organization authorized to issue, renew, suspend, or revoke a license authorizing an individual to engage in a business, occupation, profession, industry, recreational pursuit, or the operation of a motor vehicle, and includes the Washington state supreme court, to the extent that a rule has been adopted by the court to implement suspension of licenses related to the practice of law.
(18) "Noncompliance with a child support order" for the purposes of the license suspension program authorized under RCW
74.20A.320 means a responsible parent has:
(a) Accumulated arrears totaling more than six months of child support payments;
(b) Failed to make payments pursuant to a written agreement with the department towards a support arrearage in an amount that exceeds six months of payments; or
(c) Failed to make payments required by a superior court order or administrative order towards a support arrearage in an amount that exceeds six months of payments.
(19) "Noncompliance with a residential or visitation order" means that a court has found the parent in contempt of court under RCW
26.09.160(3) for failure to comply with a residential provision of a court-ordered parenting plan.
Sec. 189. RCW
76.09.040 and 2012 1st sp.s. c 1 s 203 are each amended to read as follows:
(1)(a) Where necessary to accomplish the purposes and policies stated in RCW
76.09.010, and to implement the provisions of this chapter, the board shall adopt forest practices rules pursuant to chapter
34.05 RCW and in accordance with the procedures enumerated in this section that:
(i) Establish minimum standards for forest practices;
(ii) Provide procedures for the voluntary development of resource management plans which may be adopted as an alternative to the minimum standards in (a)(i) of this subsection if the plan is consistent with the purposes and policies stated in RCW
76.09.010 and the plan meets or exceeds the objectives of the minimum standards;
(iii) Set forth necessary administrative provisions;
(iv) Establish procedures for the collection and administration of forest practice fees as set forth by this chapter; and
(v) Allow for the development of watershed analyses.
(b) Forest practices rules pertaining to water quality protection shall be adopted by the board after reaching agreement with the director of the department of ecology or the director's designee on the board with respect to these rules. All other forest practices rules shall be adopted by the board.
(c) Forest practices rules shall be administered and enforced by either the department or the local governmental entity as provided in this chapter. Such rules shall be adopted and administered so as to give consideration to all purposes and policies set forth in RCW
76.09.010.
(2)(a) The board shall prepare proposed forest practices rules consistent with this section and chapter
34.05 RCW. In addition to any forest practices rules relating to water quality protection proposed by the board, the department of ecology may submit to the board proposed forest practices rules relating to water quality protection.
(b)(i) The board shall hold one or more hearings on the proposed rules pursuant to chapter
34.05 RCW. Any county representative may propose specific forest practices rules relating to problems existing within the county at the hearings.
(ii) The board may adopt and the department of ecology may approve such proposals if they find the proposals are consistent with the purposes and policies of this chapter.
(3)(a) The board shall incorporate into the forest practices rules those fish protection standards in the rules adopted under chapter
77.55 RCW, as the rules existed on July 10, 2012, that are applicable to activities regulated under the forest practices rules. If fish protection standards are incorporated by reference, the board shall minimize administrative processes by utilizing the exception from the administrative procedures controlling significant legislative rules under RCW
34.05.328(5)(b)(iii) for the incorporation of rules adopted by other state agencies.
(b) Thereafter, the board shall incorporate into the forest practices rules any changes to those fish protection standards in the rules adopted under chapter
77.55 RCW that are: (i) Adopted consistent with RCW
77.55.361; and (ii) applicable to activities regulated under the forest practices rules. If fish protection standards are incorporated by reference, the board shall minimize administrative processes by utilizing the exception from the administrative procedures controlling significant legislative rules under RCW
34.05.328(5)(b)(iii) for the incorporation of rules adopted by other state agencies.
(c) The board shall establish and maintain technical guidance in the forest practices board manual, as provided under WAC 222-12-090 as it existed on July 10, 2012, to assist with implementation of the standards incorporated into the forest practices rules under this section. The guidance must include best management practices and standard techniques to ensure fish protection.
(d) The board must complete the requirements of (a) of this subsection and establish initial technical guidance under (c) of this subsection by December 31, 2013.
(4)(a) The board shall establish by rule a program for the acquisition of riparian open space and critical habitat for threatened or endangered species as designated by the board. Acquisition must be a conservation easement. Lands eligible for acquisition are forestlands within unconfined channel migration zones or forestlands containing critical habitat for threatened or endangered species as designated by the board. Once acquired, these lands may be held and managed by the department, transferred to another state agency, transferred to an appropriate local government agency, or transferred to a private nonprofit nature conservancy corporation, as defined in RCW
64.04.130, in fee or transfer of management obligation. The board shall adopt rules governing the acquisition by the state or donation to the state of such interest in lands including the right of refusal if the lands are subject to unacceptable liabilities. The rules shall include definitions of qualifying lands, priorities for acquisition, and provide for the opportunity to transfer such lands with limited warranties and with a description of boundaries that does not require full surveys where the cost of securing the surveys would be unreasonable in relation to the value of the lands conveyed. The rules shall provide for the management of the lands for ecological protection or fisheries enhancement. For the purposes of conservation easements entered into under this section, the following apply:
(i) For conveyances of a conservation easement in which the landowner conveys an interest in the trees only, the compensation must include the timber value component, as determined by the cruised volume of any timber located within the channel migration zone or critical habitat for threatened or endangered species as designated by the board, multiplied by the appropriate quality code stumpage value for timber of the same species shown on the appropriate table used for timber harvest excise tax purposes under RCW
84.33.091;
(ii) For conveyances of a conservation easement in which the landowner conveys interests in both land and trees, the compensation must include the timber value component in (a)(i) of this subsection plus such portion of the land value component as determined just and equitable by the department. The land value component must be the acreage of qualifying channel migration zone or critical habitat for threatened or endangered species as determined by the board, to be conveyed, multiplied by the average per acre value of all commercial forestland in western Washington or the average for eastern Washington, whichever average is applicable to the qualifying lands. The department must determine the western and eastern Washington averages based on the land value tables established by RCW
84.33.140 and revised annually by the department of ((
revenue))
taxation.
(b) Subject to appropriations sufficient to cover the cost of such an acquisition program and the related costs of administering the program, the department must establish a conservation easement in land that an owner tenders for purchase; provided that such lands have been taxed as forestlands and are located within an unconfined channel migration zone or contain critical habitat for threatened or endangered species as designated by the board. Lands acquired under this section shall become riparian or habitat open space. These acquisitions shall not be deemed to trigger the compensating tax of chapters
84.33 and
84.34 RCW.
(c) Instead of offering to sell interests in qualifying lands, owners may elect to donate the interests to the state.
(d) Any acquired interest in qualifying lands by the state under this section shall be managed as riparian open space or critical habitat.
Sec. 190. RCW
76.09.240 and 2011 c 207 s 2 are each amended to read as follows:
(1)(a) Counties planning under RCW
36.70A.040 with a population greater than one hundred thousand, and the cities and towns within those counties, where more than a total of twenty-five Class IV forest practices applications, as defined in RCW
76.09.050(1) Class IV (a) through (d), have been filed with the department between January 1, 2003, and December 31, 2005, shall adopt and enforce ordinances or regulations as provided in subsection (2) of this section for the following:
(i) Forest practices classified as Class I, II, III, and IV that are within urban growth areas designated under RCW
36.70A.110, except for forest practices on ownerships of contiguous forestland equal to or greater than twenty acres where the forest landowner provides, to the department and the county, city, or town, a written statement of intent, signed by the forest landowner, not to convert to a use other than growing commercial timber for ten years. This statement must be accompanied by either:
(A) A written forest management plan acceptable to the department; or
(B) Documentation that the land is enrolled as forestland of long-term commercial significance under the provisions of chapter
84.33 RCW; and
(ii) Forest practices classified as Class IV, outside urban growth areas designated under RCW
36.70A.110, involving either timber harvest or road construction, or both on:
(A) Forestlands that are being converted to another use; or
(B) Lands which, under RCW
76.09.070, are not to be reforested because of the likelihood of future conversion to urban development;
(b) Counties planning under RCW
36.70A.040, and the cities and towns within those counties, not included in (a) of this subsection, may adopt and enforce ordinances or regulations as provided in (a) of this subsection; and
(c) Counties not planning under RCW
36.70A.040, and the cities and towns within those counties, may adopt and enforce ordinances or regulations as provided in subsection (2) of this section for forest practices classified as Class IV involving either timber harvest or road construction, or both on:
(i) Forestlands that are being converted to another use; or
(ii) Lands which, under RCW
76.09.070, are not to be reforested because of the likelihood of future conversion to urban development.
(2) Before a county, city, or town may regulate forest practices under subsection (1) of this section, it shall ensure that its critical areas and development regulations are in compliance with RCW
36.70A.130 and, if applicable, RCW
36.70A.215. The county, city, or town shall notify the department and the department of ecology in writing sixty days prior to adoption of the development regulations required in this section. The transfer of jurisdiction shall not occur until the county, city, or town has notified the department, the department of ((
revenue))
taxation, and the department of ecology in writing of the effective date of the regulations. Ordinances and regulations adopted under subsection (1) of this section and this subsection must be consistent with or supplement development regulations that protect critical areas pursuant to RCW
36.70A.060, and shall at a minimum include:
(a) Provisions that require appropriate approvals for all phases of the conversion of forestlands, including land clearing and grading; and
(b) Procedures for the collection and administration of permit and recording fees.
(3) Activities regulated by counties, cities, or towns as provided in subsections (1) and (2) of this section shall be administered and enforced by those counties, cities, or towns. The department shall not regulate these activities under this chapter.
(4) The board shall continue to adopt rules and the department shall continue to administer and enforce those rules in each county, city, or town for all forest practices as provided in this chapter until such a time as the county, city, or town has updated its development regulations as required by RCW
36.70A.130 and, if applicable, RCW
36.70A.215, and has adopted ordinances or regulations under subsections (1) and (2) of this section. However, counties, cities, and towns that have adopted ordinances or regulations regarding forest practices prior to July 22, 2011, are not required to readopt their ordinances or regulations in order to satisfy the requirements of this section except as necessary to ensure consistency with Class IV forest practices as defined in RCW
76.09.050.
(5) Upon request, the department shall provide technical assistance to all counties, cities, and towns while they are in the process of adopting the regulations required by this section, and after the regulations become effective.
(6) For those forest practices over which the board and the department maintain regulatory authority no county, city, municipality, or other local or regional governmental entity shall adopt or enforce any law, ordinance, or regulation pertaining to forest practices, except that to the extent otherwise permitted by law, such entities may exercise any:
(a) Land use planning or zoning authority: PROVIDED, That exercise of such authority may regulate forest practices only where the application submitted under RCW
76.09.060 as now or hereafter amended indicates that the lands are being converted to a use other than commercial forest product production: PROVIDED, That no permit system solely for forest practices shall be allowed; that any additional or more stringent regulations shall not be inconsistent with the forest practices regulations enacted under this chapter; and such local regulations shall not unreasonably prevent timber harvesting;
(b) Taxing powers;
(c) Regulatory authority with respect to public health; and
(d) Authority granted by chapter
90.58 RCW, the "Shoreline Management Act of 1971."
(7) All counties and cities adopting or enforcing regulations or ordinances under this section shall include in the regulation or ordinance a requirement that a verification accompany every permit issued for forestland by that county or city associated with the conversion to a use other than commercial timber operation, as that term is defined in RCW
76.09.020, that verifies that the land in question is not or has not been subject to a notice of conversion to nonforestry uses under RCW
76.09.060 during the six-year period prior to the submission of a permit application.
(8) To improve the administration of the forest excise tax created in chapter
84.33 RCW, a county, city, or town that regulates forest practices under this section shall report permit information to the department of ((
revenue))
taxation for all approved forest practices permits. The permit information shall be reported to the department of ((
revenue))
taxation no later than sixty days after the date the permit was approved and shall be in a form and manner agreed to by the county, city, or town and the department of ((
revenue))
taxation. Permit information includes the landowner's legal name, address, telephone number, and parcel number.
Sec. 191. RCW
76.13.120 and 2017 c 140 s 1 are each amended to read as follows:
(1) The legislature finds that the state should acquire easements primarily along riparian and other sensitive aquatic areas from qualifying small forest landowners willing to sell or donate easements to the state provided that the state will not be required to acquire the easements if they are subject to unacceptable liabilities. Therefore the legislature establishes a forestry riparian easement program.
(a) "Forestry riparian easement" means an easement covering qualifying timber granted voluntarily to the state by a qualifying small forest landowner.
(b) "Qualifying small forest landowner" means a landowner meeting all of the following characteristics as of the date the department offers compensation for a forestry riparian easement:
(i) Is a small forest landowner as defined in (d) of this subsection; and
(ii) Is an individual, partnership, corporation, or other nongovernmental for-profit legal entity.
(c) "Qualifying timber" means those forest trees for which the small forest landowner is willing to grant the state a forestry riparian easement and meets all of the following:
(i) The forest trees are covered by a forest practices application that the small forest landowner is required to leave unharvested under the rules adopted under RCW
76.09.040,
76.09.055, and
76.09.370 or that is made uneconomic to harvest by those rules;
(ii) The forest trees are within or bordering a commercially reasonable harvest unit as determined under rules adopted by the forest practices board, or for which an approved forest practices application for timber harvest cannot be obtained because of restrictions under the forest practices rules;
(iii) The forest trees are located within, or affected by forest practices rules pertaining to any one, or all, of the following:
(A) Riparian or other sensitive aquatic areas;
(B) Channel migration zones; or
(C) Areas of potentially unstable slopes or landforms, verified by the department, and must meet all of the following:
(I) Are addressed in a forest practices application;
(II) Are adjacent to a commercially reasonable harvest area; and
(III) Have the potential to deliver sediment or debris to a public resource or threaten public safety.
(d) "Small forest landowner" means a landowner meeting all of the following characteristics:
(i) A forest landowner as defined in RCW
76.09.020 whose interest in the land and timber is in fee or who has rights to the timber to be included in the forestry riparian easement that extend at least fifty years from the date the completed forestry riparian easement application associated with the easement is submitted;
(ii) An entity that has harvested from its own lands in this state during the three years prior to the year of application an average timber volume that would qualify the owner as a small harvester under RCW
84.33.035; and
(iii) An entity that certifies at the time of application that it does not expect to harvest from its own lands more than the volume allowed by RCW
84.33.035 during the ten years following application. If a landowner's prior three-year average harvest exceeds the limit of RCW
84.33.035, or the landowner expects to exceed this limit during the ten years following application, and that landowner establishes to the department's reasonable satisfaction that the harvest limits were or will be exceeded to raise funds to pay estate taxes or equally compelling and unexpected obligations such as court-ordered judgments or extraordinary medical expenses, the landowner shall be deemed to be a small forest landowner. For purposes of determining whether a person qualifies as a small forest landowner, the small forest landowner office, created in RCW
76.13.110, shall evaluate the landowner under this definition, pursuant to RCW
76.13.160, as of the date that the forest practices application is submitted and the date that the department offers compensation for the forestry riparian easement. A small forest landowner can include an individual, partnership, corporation, or other nongovernmental legal entity. If a landowner grants timber rights to another entity for less than five years, the landowner may still qualify as a small forest landowner under this section. If a landowner is unable to obtain an approved forest practices application for timber harvest for any of his or her land because of restrictions under the forest practices rules, the landowner may still qualify as a small forest landowner under this section.
(e) "Completion of harvest" means that the trees have been harvested from an area and that further entry into that area by mechanized logging or slash treating equipment is not expected.
(3) The department is authorized and directed to accept and hold in the name of the state of Washington forestry riparian easements granted by qualifying small forest landowners covering qualifying timber and to pay compensation to the landowners in accordance with this section. The department may not transfer the easements to any entity other than another state agency.
(4) Forestry riparian easements shall be effective for fifty years from the date of the completed forestry riparian easement application, unless the easement is voluntarily terminated earlier by the department, based on a determination that termination is in the best interest of the state, or under the terms of a termination clause in the easement.
(5) Forestry riparian easements shall be restrictive only, and shall preserve all lawful uses of the easement premises by the landowner that are consistent with the terms of the easement and the requirement to protect riparian functions during the term of the easement, subject to the restriction that the leave trees required by the rules to be left on the easement premises may not be cut during the term of the easement. No right of public access to or across, or any public use of the easement premises is created by this statute or by the easement. Forestry riparian easements shall not be deemed to trigger the compensating tax of or otherwise disqualify land from being taxed under chapter
84.33 or
84.34 RCW.
(6) The small forest landowner office shall determine what constitutes a completed application for a forestry riparian easement. An application shall, at a minimum, include documentation of the owner's status as a qualifying small forest landowner, identification of location and the types of qualifying timber, and notification of completion of harvest, if applicable.
(7) Upon receipt of the qualifying small forest landowner's forestry riparian easement application, and subject to the availability of amounts appropriated for this specific purpose, the following must occur:
(a) The small forest landowner office must determine the compensation to be offered to the qualifying small forest landowner for qualifying timber after the department accepts the completed forestry riparian easement application and the landowner has completed marking the boundary of the area containing the qualifying timber. The legislature recognizes that there is not readily available market transaction evidence of value for easements of the nature required by this section, and thus establishes the methodology provided in this subsection to ascertain the value for forestry riparian easements. Values so determined may not be considered competent evidence of value for any other purpose.
(b) The small forest landowner office, subject to the availability of amounts appropriated for this specific purpose, is responsible for assessing the volume of qualifying timber. However, no more than fifty percent of the total amounts appropriated for the forestry riparian easement program may be applied to determine the volume of qualifying timber for completed forestry riparian easement applications. Based on the volume established by the small forest landowner office and using data obtained or maintained by the department of ((
revenue))
taxation under RCW
84.33.074 and
84.33.091, the small forest landowner office shall attempt to determine the fair market value of the qualifying timber as of the date the complete forestry riparian easement application is received. Removal of any qualifying timber before the expiration of the easement must be in accordance with the forest practices rules and the terms of the easement. There shall be no reduction in compensation for reentry.
(8)(a) Except as provided in subsection (9) of this section and subject to the availability of amounts appropriated for this specific purpose, the small forest landowner office shall offer compensation for qualifying timber to the qualifying small forest landowner in the amount of fifty percent of the value determined by the small forest landowner office, plus the compliance and reimbursement costs as determined in accordance with RCW
76.13.140. However, compensation for any qualifying small forest landowner for qualifying timber located on potentially unstable slopes or landforms may not exceed a total of fifty thousand dollars during any biennial funding period.
(b) If the landowner accepts the offer for qualifying timber, the department shall pay the compensation promptly upon:
(i) Completion of harvest in the area within a commercially reasonable harvest unit with which the forestry riparian easement is associated under an approved forest practices application, unless an approved forest practices application for timber harvest cannot be obtained because of restrictions under the forest practices rules;
(ii) Verification that the landowner has no outstanding violations under chapter
76.09 RCW or any associated rules; and
(iii) Execution and delivery of the easement to the department.
(c) Upon donation or payment of compensation, the department may record the easement.
(9) For approved forest practices applications for which the regulatory impact is greater than the average percentage impact for all small forest landowners as determined by an analysis by the department under the regulatory fairness act, chapter
19.85 RCW, the compensation offered will be increased to one hundred percent for that portion of the regulatory impact that is in excess of the average. Regulatory impact includes all trees identified as qualifying timber. A separate average or high impact regulatory threshold shall be established for western and eastern Washington. Criteria for these measurements and payments shall be established by the small forest landowner office.
(10) The forest practices board shall adopt rules under the administrative procedure act, chapter
34.05 RCW, to implement the forestry riparian easement program, including the following:
(a) A standard version of a forestry riparian easement application as well as all additional documents necessary or advisable to create the forestry riparian easements as provided for in this section;
(b) Standards for descriptions of the easement premises with a degree of precision that is reasonable in relation to the values involved;
(c) Methods and standards for cruises and valuation of forestry riparian easements for purposes of establishing the compensation. The department shall perform the timber cruises of forestry riparian easements required under this chapter and chapter
76.09 RCW. Timber cruises are subject to amounts appropriated for this purpose. However, no more than fifty percent of the total appropriated funding for the forestry riparian easement program may be applied to determine the volume of qualifying timber for completed forestry riparian easement applications. Any rules concerning the methods and standards for valuations of forestry riparian easements shall apply only to the department, qualifying small forest landowners, and the small forest landowner office;
(d) A method to determine that a forest practices application involves a commercially reasonable harvest, and adopt criteria for entering into a forestry riparian easement where a commercially reasonable harvest is not possible or a forest practices application that has been submitted cannot be approved because of restrictions under the forest practices rules;
(e) A method to address blowdown of qualified timber falling outside the easement premises;
(f) A formula for sharing of proceeds in relation to the acquisition of qualified timber covered by an easement through the exercise or threats of eminent domain by a federal or state agency with eminent domain authority, based on the present value of the department's and the landowner's relative interests in the qualified timber;
(g) High impact regulatory thresholds;
(h) A method to determine timber that is qualifying timber because it is rendered uneconomic to harvest by the rules adopted under RCW
76.09.055 and
76.09.370;
(i) A method for internal department review of small forest landowner office compensation decisions under this section; and
(j) Consistent with RCW
76.13.180, a method to collect reimbursement from landowners who received compensation for a forestry riparian easement and who, within the first ten years after receipt of compensation for a forestry riparian easement, sells the land on which an easement is located to a nonqualifying landowner.
(11) The legislature finds that the overall societal benefits of economically viable working forests are multiple, and include the protection of clean, cold water, the provision of wildlife habitat, the sheltering of cultural resources from development, and the natural carbon storage potential of growing trees. As such, working forests and the forest riparian easement program may be part of the state's overall carbon sequestration strategy. If the state creates a climate strategy, the department must share information regarding the carbon sequestration benefits of the forest riparian easement program with other state programs using methods and protocols established in the state climate strategy that attempt to quantify carbon storage or account for carbon emissions. The department must promote the expansion of funding for the forest riparian easement program and the ecosystem services supported by the program based on the findings stated in RCW
76.13.100. Nothing in this subsection allows a landowner to be reimbursed by the state more than once for the same forest riparian easement application.
Sec. 192. RCW
76.13.160 and 2011 c 218 s 3 are each amended to read as follows:
When establishing a forestry riparian easement program applicant's status as a qualifying small forest landowner pursuant to RCW
76.13.120, the department shall not review the applicant's timber harvest records, or any other tax-related documents, on file with the department of ((
revenue))
taxation. The department of ((
revenue))
taxation may confirm or deny an applicant's status as a small forest landowner at the request of the department. However, for the purposes of this section, the department of ((
revenue))
taxation may not disclose more information than whether or not the applicant has reported a harvest or harvests totaling greater than or less than the qualifying thresholds established in RCW
76.13.120. Nothing in this section, or RCW
84.33.280, prohibits the department from reviewing aggregate or general information provided by the department of ((
revenue))
taxation.
Sec. 193. RCW
79.100.170 and 2014 c 195 s 101 are each amended to read as follows:
(1) Any individual or company that purchases or otherwise receives a used vessel greater than sixty-five feet in length and more than forty years old must, prior to or concurrent with the transfer of ownership, secure a marine insurance policy consistent with this section. Proof of the marine insurance policy must be provided to:
(a) The transferor of the vessel upon purchase or other transfer; and
(b) If applicable, the department of licensing upon registration or the department of ((revenue))taxation upon the payment of any taxes.
(2) The transferor of a vessel greater than sixty-five feet in length and more than forty years old has an affirmative duty to ensure that any potential transferee has secured a marine insurance policy consistent with this section prior to or concurrent with the finalization of any sale or transfer. Nothing in this section prohibits the sale or other transfer of a vessel greater than sixty-five feet in length and more than forty years old to a transferee that fails to secure a marine insurance policy. However, a transferor that chooses to finalize a sale or other transfer with a transferee not in possession of a marine insurance policy assumes secondary liability for the vessel consistent with RCW
79.100.060 if the vessel is later abandoned by the transferee or becomes derelict prior to a subsequent ownership transfer.
(3) The marine insurance policy required under this section must be secured by the transferee prior to, or concurrent with, assuming ownership of a vessel greater than sixty-five feet in length and more than forty years old. The marine insurance policy must satisfy the following conditions:
(a) Have a term of at least twelve months following the transferee's assumption of vessel ownership;
(b) Provide coverage of an amount that is, unless otherwise provided by the department by rule, at least three hundred thousand dollars;
(c) Provide, unless otherwise provided by the department by rule, coverage for the removal of the vessel if it should sink and coverage should it cause a pollution event.
(4) The purchaser of marine insurance under this section may satisfy the requirements of this section through the purchase of multiple policies as necessary.
(5) The department may, by rule, provide for a purchaser of a vessel to also satisfy the insurance requirements of this section through the posting of adequate security with a financial institution.
(6) A person required to secure marine insurance or show proof of marine insurance under this section who either: (a) Fails to secure a marine insurance policy consistent with this section prior to or concurrent with the transfer of ownership, unless the vessel was sold consistent with RCW
79.100.150(2)(b); or (b) cancels a marine insurance policy consistent with this section prior to the end of the twelfth month of vessel ownership or to a subsequent transfer of ownership, whichever occurs first, without securing another marine insurance policy consistent with this section in its place, is guilty of a misdemeanor. The department may contact any vessel owner required by this section to have a marine insurance policy to ensure compliance with this section.
Sec. 194. RCW
79.100.180 and 2014 c 195 s 402 are each amended to read as follows:
(1)(a) Except as otherwise provided in (b) of this subsection, an annual derelict vessel removal fee is imposed upon all persons required by RCW
84.40.065 to list any ship or vessel with the department of ((
revenue))
taxation for state property tax purposes.
(b) The derelict vessel removal fee imposed in (a) of this subsection does not apply in any year that a person required to list a ship or vessel does not owe the state property tax levied for collection in that year with respect to that ship or vessel.
(c) The annual derelict vessel removal fee is equal to one dollar per vessel foot measured by extreme length of the vessel, rounded up to the nearest whole foot.
(2) Each year, the department of ((
revenue))
taxation must include the amount of the derelict vessel removal fee due under this section for that calendar year in the tax statement required in RCW
84.40.065.
(3) The person listing a ship or vessel and the owner of the ship or vessel, if not the same person, are jointly and severally liable for the fee imposed in this section.
(4) The department of ((
revenue))
taxation must collect the derelict vessel removal fee imposed in this section as provided in RCW
84.56.440.
(5) All derelict vessel removal fees collected under this section must be deposited into the derelict vessel removal account created in RCW
79.100.100.
Sec. 195. RCW
81.100.030 and 2002 c 56 s 410 are each amended to read as follows:
(1) A county with a population of one million or more, or a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, and having within its boundaries existing or planned high occupancy vehicle lanes on the state highway system, or a regional transportation investment district for capital improvements, but only to the extent that the tax has not already been imposed by the county, may, with voter approval impose an excise tax of up to two dollars per employee per month on all employers or any class or classes of employers, public and private, including the state located in the agency's jurisdiction, measured by the number of full-time equivalent employees. In no event may the total taxes imposed under this section exceed two dollars per employee per month for any single employer. The county or investment district imposing the tax authorized in this section may provide for exemptions from the tax to such educational, cultural, health, charitable, or religious organizations as it deems appropriate.
Counties or investment districts may contract with the state department of ((revenue))taxation or other appropriate entities for administration and collection of the tax. Such contract shall provide for deduction of an amount for administration and collection expenses.
(2) The tax shall not apply to employment of a person when the employer has paid for at least half of the cost of a transit pass issued by a transit agency for that employee, valid for the period for which the tax would otherwise be owed.
(3) A county or investment district shall adopt rules that exempt from all or a portion of the tax any employer that has entered into an agreement with the county or investment district that is designed to reduce the proportion of employees who drive in single-occupant vehicles during peak commuting periods in proportion to the degree that the agreement is designed to meet the goals for the employer's location adopted under RCW
81.100.040.
The agreement shall include a list of specific actions that the employer will undertake to be entitled to the exemption. Employers having an exemption from all or part of the tax through this subsection shall annually certify to the county or investment district that the employer is fulfilling the terms of the agreement. The exemption continues as long as the employer is in compliance with the agreement.
If the tax authorized in RCW
81.100.060 is also imposed, the total proceeds from both tax sources each year shall not exceed the maximum amount which could be collected under RCW
81.100.060.
Sec. 196. RCW
81.100.070 and 1991 sp.s. c 13 ss 105, 119 are each amended to read as follows:
Funds collected by the department of ((
revenue))
taxation or other entity under RCW
81.100.030, or by the department of licensing under RCW
81.100.060, less the deduction for collection expenses, shall be deposited in the high occupancy vehicle account hereby created in the custody of the state treasurer. On the first day of the months of January, April, July, and October of each year, the state treasurer shall distribute the funds in the account to the counties on whose behalf the funds were received. The state treasurer shall make the distribution under this section without appropriation.
Sec. 197. RCW
81.104.190 and 2009 c 280 s 7 are each amended to read as follows:
Cities that operate transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, high capacity transportation corridor areas, and regional transit systems may contract with the state department of ((
revenue))
taxation or other appropriate entities for administration and collection of any tax authorized by RCW
81.104.150,
81.104.160, and
81.104.170.
Sec. 198. RCW
81.112.360 and 2015 3rd sp.s. c 44 s 422 are each amended to read as follows:
(1) Beginning January 1, 2017, and until the requirements in subsection (4) of this section are met, a regional transit authority must pay to the department of ((revenue))taxation, for deposit into the Puget Sound taxpayer accountability account, a sales and use tax offset fee.
(2) A sales and use tax offset fee is three and twenty-five one-hundredths percent of the total payments made by the regional transit authority to construction contractors on construction contracts that are (a) for new projects identified in the system plan funded by any proposition approved by voters after January 1, 2015, and (b) excluded from the definition of retail sale under RCW
82.04.050(10).
(3) Fees are due monthly by the twenty-fifth day of the month, with respect to payments made to construction contractors during the previous month.
(4) A sales and use tax offset fee is due until the regional transit authority has paid five hundred eighteen million dollars.
(5) Except as otherwise provided in this section, the provisions of chapter
82.32 RCW apply to this section.
(6) The department of ((revenue))taxation must oversee the collection of the sales and use tax offset fee and may adopt rules necessary to implement this section.
Sec. 199. RCW
82.01.050 and 1967 ex.s. c 26 s 2 are each amended to read as follows:
There is established a department of state government to be known as the department of ((revenue))taxation of the state of Washington, of which the chief executive officer shall be known as the director of ((revenue))taxation.
Sec. 200. RCW
82.01.060 and 2017 c 323 s 801 are each amended to read as follows:
The director of ((revenue))taxation, hereinafter in chapter 26, Laws of 1967 ex. sess. referred to as the director, through the department of ((revenue))taxation, hereinafter in chapter 26, Laws of 1967 ex. sess. referred to as the department, must:
(1) Assess and collect all taxes and administer all programs relating to taxes which are the responsibility of the tax commission at the time chapter 26, Laws of 1967 ex. sess. takes effect or which the legislature may hereafter make the responsibility of the director or of the department;
(2) Make, adopt and publish such rules as he or she may deem necessary or desirable to carry out the powers and duties imposed upon him or her or the department by the legislature. However, the director may not adopt rules after July 23, 1995, that are based solely on a section of law stating a statute's intent or purpose, on the enabling provisions of the statute establishing the agency, or on any combination of such provisions, for statutory authority to adopt any rule;
(3) Rules adopted by the tax commission before July 23, 1995, remain in force until such time as they may be revised or rescinded by the director;
(4) Provide by general regulations for an adequate system of departmental review of the actions of the department or of its officers and employees in the assessment or collection of taxes;
(5) Maintain a tax research section with sufficient technical, clerical and other employees to conduct constant observation and investigation of the effectiveness and adequacy of the revenue laws of this state and of the sister states in order to assist the governor, the legislature and the director in estimation of revenue, analysis of tax measures, and determination of the administrative feasibility of proposed tax legislation and allied problems;
(6) Recommend to the governor such amendments, changes in, and modifications of the revenue laws as seem proper and requisite to remedy injustice and irregularities in taxation, and to facilitate the assessment and collection of taxes in the most economical manner;
(7) Provide the opportunity for any person feeling aggrieved by any action taken against the person by the department in the administration of chapters
19.02, 19.80, and
59.30 RCW to request a review of the department's action. Such review may be conducted as a brief adjudicative proceeding under RCW
34.05.485 through
34.05.494; and
(8)(a) Establish background investigation policies applicable to those current and prospective department employees and contractors that are or may be authorized by the department to access federal tax information. Such policies must require a criminal history record check through the Washington state patrol criminal identification system and through the federal bureau of investigation, at the expense of the department. The record check must include a fingerprint check using a complete Washington state criminal identification fingerprint card, which must be forwarded by the Washington state patrol to the federal bureau of investigation. The department's background investigation policies must also satisfy any specific background investigation standards established by the internal revenue service.
(b) Information received by the department pursuant to this subsection may be used only for the purposes of making, supporting, or defending decisions regarding the appointment, hiring, or retention of persons, or for complying with any requirements from the internal revenue service. Further dissemination or use of the information is prohibited, notwithstanding any other provision of law.
Sec. 201. RCW
82.01.070 and 1997 c 156 s 1 are each amended to read as follows:
The director shall have charge and general supervision of the department of ((
revenue))
taxation. The director shall appoint an assistant director for administration, hereinafter in chapter 26, Laws of 1967 ex. sess. referred to as the assistant director, and subject to the provisions of chapter
41.06 RCW may appoint and employ such clerical, technical and other personnel as may be necessary to carry out the powers and duties of the department. The director may also enter into personal service contracts with out-of-state individuals or business entities for the performance of auditing services outside the state of Washington when normal efforts to recruit classified employees are unsuccessful. The director may agree to pay to the department's employees or contractors who reside out of state such amounts in addition to their ordinary rate of compensation as are necessary to defray the extra costs of facilities, living, and other costs reasonably related to the out-of-state services, subject to legislative appropriation for those purposes. The special allowances shall be in such amounts or at such rates as are approved by the office of financial management. This section does not apply to audit functions performed in states contiguous to the state of Washington.
Sec. 202. RCW
82.01.100 and 1967 ex.s. c 26 s 11 are each amended to read as follows:
Assistance of the department of ((revenue))taxation in the administration or collection of those state taxes which are administered or collected by other state agencies may be requested by the agencies concerned. Such assistance may be given by the director to the extent that the limitations of time, personnel and the conduct of the duties of the department shall allow. The department shall be reimbursed by any agency to which assistance is rendered.
Sec. 203. RCW
82.02.010 and 2014 c 140 s 30 are each amended to read as follows:
For the purpose of this title, unless the context clearly requires otherwise:
(1) "Department" means the department of ((revenue))taxation of the state of Washington;
(2) "Director" means the director of the department of ((revenue))taxation of the state of Washington;
(3) "Marijuana," "marijuana-infused products," and "useable marijuana" have the same meanings as provided in RCW
69.50.101;
(4) "Taxpayer" includes any individual, group of individuals, corporation, or association liable for any tax or the collection of any tax hereunder, or who engages in any business or performs any act for which a tax is imposed by this title. "Taxpayer" also includes any person liable for any fee or other charge collected by the department under any provision of law, including registration assessments and delinquency fees imposed under RCW
59.30.050; and
(5) Words in the singular number include the plural and the plural include the singular. Words in one gender include all other genders.
Sec. 204. RCW
82.02.210 and 2007 c 6 s 105 are each amended to read as follows:
(1) It is the intent of the legislature that Washington join as a member state in the streamlined sales and use tax agreement referred to in chapter
82.58 RCW. The agreement provides for a simpler and more uniform sales and use tax structure among states that have sales and use taxes. The intent of the legislature is to bring Washington's sales and use tax system into compliance with the agreement so that Washington may join as a member state and have a voice in the development and administration of the system, and to substantially reduce the burden of tax compliance on sellers.
(2) Chapter 168, Laws of 2003 does not include changes to Washington law that may be required in the future and that are not fully developed under the agreement. These include, but are not limited to, changes relating to online registration, reporting, and remitting of payments by businesses for sales and use tax purposes, monetary allowances for sellers and their agents, sourcing, and amnesty for businesses registering under the agreement.
(3) It is the intent of the legislature that the provisions of this title relating to the administration and collection of state and local sales and use taxes be interpreted and applied consistently with the agreement.
(4) The department of ((revenue))taxation shall report to the fiscal committees of the legislature on January 1, 2004, and each January 1st thereafter, on the development of the agreement and shall recommend changes to the sales and use tax structure and propose legislation as may be necessary to keep Washington in compliance with the agreement.
Sec. 205. RCW
82.03.130 and 2005 c 253 s 7 are each amended to read as follows:
(1) The board shall have jurisdiction to decide the following types of appeals:
(b) Appeals from a county board of equalization pursuant to RCW
84.08.130.
(c) Appeals by an assessor or landowner from an order of the director of ((
revenue))
taxation made pursuant to RCW
84.08.010 and
84.08.060, if filed with the board of tax appeals within thirty days after the mailing of the order, the right to such an appeal being hereby established.
(d) Appeals by an assessor or owner of an intercounty public utility or private car company from determinations by the director of ((
revenue))
taxation of equalized assessed valuation of property and the apportionment thereof to a county made pursuant to chapter
84.12 and
84.16 RCW, if filed with the board of tax appeals within thirty days after mailing of the determination, the right to such appeal being hereby established.
(e) Appeals by an assessor, landowner, or owner of an intercounty public utility or private car company from a determination of any county indicated ratio for such county compiled by the department of ((
revenue))
taxation pursuant to RCW
84.48.075: PROVIDED, That
(i) Said appeal be filed after review of the ratio under RCW
84.48.075(3) and not later than fifteen days after the mailing of the certification; and
(ii) The hearing before the board shall be expeditiously held in accordance with rules prescribed by the board and shall take precedence over all matters of the same character.
(f) Appeals from the decisions of sale price of second-class shorelands on navigable lakes by the department of natural resources pursuant to RCW
79.94.210.
(g) Appeals from urban redevelopment property tax apportionment district proposals established by governmental ordinances pursuant to RCW
39.88.060.
(h) Appeals from interest rates as determined by the department of ((
revenue))
taxation for use in valuing farmland under current use assessment pursuant to RCW
84.34.065.
(i) Appeals from revisions to stumpage value tables used to determine value by the department of ((
revenue))
taxation pursuant to RCW
84.33.091.
(j) Appeals from denial of tax exemption application by the department of ((
revenue))
taxation pursuant to RCW
84.36.850.
(2) Except as otherwise specifically provided by law hereafter, the provisions of RCW
1.12.070 shall apply to all notices of appeal filed with the board of tax appeals.
Sec. 206. RCW
82.03.150 and 2018 c 174 s 14 are each amended to read as follows:
In all appeals involving an informal hearing before the board or any of its members or tax referees, the board, any member of the board, and the board's tax referees have all powers relating to administration of oaths, issuance of subpoenas, and taking of depositions as are granted to agencies by chapter
34.05 RCW. The board, any member of the board, and the board's tax referees also have all powers granted the department of ((
revenue))
taxation pursuant to RCW
82.32.110. In the case of appeals within the scope of RCW
82.03.130(1)(b) the board or any member thereof may obtain such assistance, including the making of field investigations, from the staff of the director of ((
revenue))
taxation as the board or any member thereof may deem necessary or appropriate.
Sec. 207. RCW
82.03.160 and 2018 c 174 s 15 are each amended to read as follows:
In all appeals involving a formal hearing before the board or any of its members or tax referees, the board, any member of the board, and the board's tax referees have all powers relating to administration of oaths, issuance of subpoenas, and taking of depositions as are granted to agencies in chapter
34.05 RCW; and the board, and each member thereof, or its tax referees, are subject to all duties imposed upon, and have all powers granted to, an agency by those provisions of chapter
34.05 RCW relating to adjudicative proceedings. The board, any member of the board, and the board's tax referees also have all powers granted the department of ((
revenue))
taxation pursuant to RCW
82.32.110. In the case of appeals within the scope of RCW
82.03.130(1)(b), the board, or any member thereof, may obtain such assistance, including the making of field investigations, from the staff of the director of ((
revenue))
taxation as the board, or any member thereof, may deem necessary or appropriate: PROVIDED, HOWEVER, That any communication, oral or written, from the staff of the director to the board or its tax referees may be presented only in open hearing.
Sec. 208. RCW
82.03.190 and 2012 c 39 s 3 are each amended to read as follows:
(1) Except as provided in subsection (2) of this section, any person having received notice of a denial of a petition or a notice of determination made under RCW
82.32.160,
82.32.170,
82.34.110, or
82.49.060 may appeal by filing in accordance with RCW
1.12.070 a notice of appeal with the board of tax appeals within thirty days after the mailing of the notice of such denial or determination. In the notice of appeal the taxpayer must set forth the amount of the tax which the taxpayer contends should be reduced or refunded and the reasons for such reduction or refund, in accordance with rules of practice and procedure prescribed by the board. However, if the notice of appeal relates to an application made to the department under chapter
82.34 RCW, the taxpayer must set forth the amount to which the taxpayer claims the credit or exemption should apply, and the grounds for such contention, in accordance with rules of practice and procedure prescribed by the board. The board must transmit a copy of the notice of appeal to the department and all other named parties within thirty days of its receipt by the board. If the taxpayer intends that the hearing before the board be held pursuant to the administrative procedure act (chapter
34.05 RCW), the notice of appeal must also so state. In the event that the notice of appeal does not so state, the department may, within thirty days from the date of its receipt of the notice of appeal, file with the board notice of its intention that the hearing be held pursuant to the administrative procedure act.
(2) No person may file a notice of appeal with the board of tax appeals to contest the amount of spirits taxes assessed or asserted to be due by the department of ((
revenue))
taxation unless the person has first paid the full amount of the contested spirits taxes. For purposes of this subsection, "spirits taxes" has the same meaning as in RCW
82.08.155.
Sec. 209. RCW
82.04.020 and 1975 1st ex.s. c 278 s 39 are each amended to read as follows:
"Tax year" or "taxable year" means either the calendar year, or the taxpayer's fiscal year when permission is obtained from the department of ((revenue))taxation to use a fiscal year in lieu of the calendar year.
Sec. 210. RCW
82.04.090 and 2001 c 20 s 1 are each amended to read as follows:
"Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. However, persons operating grain warehouses licensed under chapter
22.09 RCW may elect to report the value proceeding or accruing from grain warehouse operations on either a cash receipts or accrual basis. The department of ((
revenue))
taxation may provide by regulation that the value proceeding or accruing from sales on the installment plan under conditional contracts of sale may be reported as of the dates when the payments become due.
Sec. 211. RCW
82.04.44525 and 2009 c 535 s 1104 are each amended to read as follows:
(1) Subject to the limits in this section, an eligible person is allowed a credit against the tax due under this chapter. The credit is based on qualified employment positions in eligible areas. The credit is available to persons who are engaged in international services as defined in this section. In order to receive the credit, the international service activities must take place at a business within the eligible area.
(2)(a) The credit shall equal three thousand dollars for each qualified employment position created after July 1, 1998, in an eligible area. A credit is earned for the calendar year the person is hired to fill the position, plus the four subsequent consecutive years, if the position is maintained for those four years.
(b) Credit may not be taken for hiring of persons into positions that exist on July 1, 1998. Credit is authorized for new employees hired for new positions created after July 1, 1998. New positions filled by existing employees are eligible for the credit under this section only if the position vacated by the existing employee is filled by a new hire.
(c) When a position is newly created, if it is filled before July 1st, this position is eligible for the full yearly credit. If it is filled after June 30th, this position is eligible for half of the credit.
(d) Credit may be accrued and carried over until it is used. No refunds may be granted for credits under this section.
(3) For the purposes of this section:
(a) "Eligible area" means: (i) A community empowerment zone under RCW
43.31C.020; or (ii) a contiguous group of census tracts that meets the unemployment and poverty criteria of RCW
43.31C.030 and is designated under subsection (4) of this section;
(b) "Eligible person" means a person, as defined in RCW
82.04.030, who in an eligible area at a specific location is engaged in the business of providing international services;
(c)(i) "International services" means the provision of a service, as defined under (c)(iii) of this subsection, that is subject to tax under RCW
82.04.290 (2) or (3), and either:
(A) Is for a person domiciled outside the United States; or
(B) The service itself is for use primarily outside of the United States.
(ii) "International services" excludes any service taxable under RCW
82.04.290(1).
(iii) Eligible services are: Computer; data processing; information; legal; accounting and tax preparation; engineering; architectural; business consulting; business management; public relations and advertising; surveying; geological consulting; real estate appraisal; or financial services. For the purposes of this section these services mean the following:
(A) "Computer services" are services such as computer programming, custom software modification, customization of canned software, custom software installation, custom software maintenance, custom software repair, training in the use of software, computer systems design, and custom software update services;
(B) "Data processing services" are services such as word processing, data entry, data retrieval, data search, information compilation, payroll processing, business accounts processing, data production, and other computerized data and information storage or manipulation. "Data processing services" also includes the use of a computer or computer time for data processing whether the processing is performed by the provider of the computer or by the purchaser or other beneficiary of the service;
(C) "Information services" are services such as electronic data retrieval or research that entails furnishing financial or legal information, data or research, internet access as defined in RCW
82.04.297, general or specialized news, or current information;
(D) "Legal services" are services such as representation by an attorney, or other person when permitted, in an administrative or legal proceeding, legal drafting, paralegal services, legal research services, and court reporting services, arbitration, and mediation services;
(E) "Accounting and tax preparation services" are services such as accounting, auditing, actuarial, bookkeeping, or tax preparation services;
(F) "Engineering services" are services such as civil, electrical, mechanical, petroleum, marine, nuclear, and design engineering, machine designing, machine tool designing, and sewage disposal system designing services;
(G) "Architectural services" are services such as structural or landscape design or architecture, interior design, building design, building program management, and space planning services;
(H) "Business consulting services" are services such as primarily providing operating counsel, advice, or assistance to the management or owner of any business, private, nonprofit, or public organization, including but not limited to those in the following areas: Administrative management consulting; general management consulting; human resource consulting or training; management engineering consulting; management information systems consulting; manufacturing management consulting; marketing consulting; operations research consulting; personnel management consulting; physical distribution consulting; site location consulting; economic consulting; motel, hotel, and resort consulting; restaurant consulting; government affairs consulting; and lobbying;
(I) "Business management services" are services such as administrative management, business management, and office management. "Business management services" does not include property management or property leasing, motel, hotel, and resort management, or automobile parking management;
(J) "Public relations and advertising services" are services such as layout, art direction, graphic design, copy writing, mechanical preparation, opinion research, marketing research, marketing, or production supervision;
(K) "Surveying services" are services such as land surveying;
(L) "Geological consulting services" are services rendered for the oil, gas, and mining industry and other earth resource industries, and other services such as soil testing;
(M) "Real estate appraisal services" are services such as market appraisal and other real estate valuation; and
(N) "Financial services" are services such as banking, loan, security, investment management, investment advisory, mortgage servicing, contract collection, and finance leasing services, engaged in by financial businesses, or businesses similar to or in competition with financial businesses; and
(d) "Qualified employment position" means a permanent full-time position to provide international services. If an employee is either voluntarily or involuntarily separated from employment, the employment position is considered filled on a full-time basis if the employer is either training or actively recruiting a replacement employee.
(4) By ordinance, the legislative authority of a city, or legislative authorities of contiguous cities by ordinance of each city's legislative authority, with population greater than eighty thousand, located in a county containing no community empowerment zones as designated under RCW
43.31C.020, may designate a contiguous group of census tracts within the city or cities as an eligible area under this section. Each of the census tracts must meet the unemployment and poverty criteria of RCW
43.31C.030. Upon making the designation, the city or cities shall transmit to the department of ((
revenue))
taxation a certification letter and a map, each explicitly describing the boundaries of the census tract. This designation must be made by December 31, 1998.
(5) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section. This information includes:
(a) Employment records for the previous six years;
(b) Information relating to description of international service activity engaged in at the eligible location by the person; and
(c) Information relating to customers of international service activity engaged in at that location by the person.
(6) If at any time the department finds that a person is not eligible for tax credit under this section, the amount of taxes for which a credit has been used shall be immediately due. The department shall assess interest, but not penalties, on the credited taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise taxes under chapter
82.32 RCW, shall be assessed retroactively to the date the tax credit was taken, and shall accrue until the taxes for which a credit has been used are repaid.
(7) The employment security department shall provide to the department of ((revenue))taxation such information needed by the department of ((revenue))taxation to verify eligibility under this section.
Sec. 212. RCW
82.04.447 and 2001 c 214 s 9 are each amended to read as follows:
(1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
(a) "Direct service industrial customer" means a person who is an industrial customer that contracts for the purchase of power from the Bonneville Power Administration for direct consumption as of May 8, 2001. "Direct service industrial customer" includes a person who is a subsidiary that is more than fifty percent owned by a direct service industrial customer and who receives power from the Bonneville Power Administration pursuant to the parent's contract for power.
(b) "Facility" means a gas turbine electrical generation facility that does not exist on May 8, 2001, and is owned by a direct service industrial customer for the purpose of producing electricity to be consumed by the direct service industrial customer.
(c) "Average annual employment" means the total employment in this state for a calendar year at the direct service industrial customer's location where electricity from the facility will be consumed.
(2) Effective July 1, 2001, a credit is allowed against the tax due under this chapter to a direct service industrial customer who purchases natural or manufactured gas from a gas distribution business subject to the public utility tax under chapter
82.16 RCW. The credit is equal to the value of natural or manufactured gas purchased from a gas distribution business and used to generate electricity at the facility multiplied by the rate in effect for the public utility tax on gas distribution businesses under RCW
82.16.020. This credit may be used each reporting period for sixty months following the first month natural or manufactured gas was purchased from a gas distribution business by a direct service industrial customer who constructs a facility.
(3) Application for credit shall be made by the direct service industrial consumer before the first purchase of natural or manufactured gas. The application shall be in a form and manner prescribed by the department and shall include but is not limited to information regarding the location of the facility, the projected date of first purchase of natural or manufactured gas to generate electricity at the facility, the date construction is projected to begin or did begin, the applicant's average annual employment in the state for the six calendar years immediately preceding the year in which the application is made, and affirm the applicant's status as a direct service industrial customer. The department shall rule on the application within thirty days of receipt.
(4) Credit under this section is limited to the amount of tax imposed under this chapter. Refunds shall not be given in place of credits and credits may not be carried over to subsequent calendar years.
(5) All or part of the credit shall be disallowed and must be paid if the average of the direct service industrial customer's average annual employment for the five calendar years subsequent to the calendar year containing the first month of purchase of natural or manufactured gas to generate electricity at a facility is less than the six-year average annual employment stated on the application for credit under this section. The direct service industrial customer will certify to the department by June 1st of the sixth calendar year following the calendar year in which the month of first purchase of gas occurs the average annual employment for each of the five prior calendar years. All or part of the credit that shall be disallowed and must be paid is commensurate with the decrease in the five-year average of average annual employment as follows:
Decrease in Average Annual Employment Over Five-Year Period | % of Credit to be Paid |
Less than 10% | | 10% |
10% or more but less than 25% | | 25% |
25% or more but less than 50% | | 50% |
50% or more but less than 75% | | 75% |
75% or more | | 100% |
(6)(a) The direct service industrial customer shall begin paying the credit that is disallowed and is to be paid in the sixth calendar year following the calendar year in which the month following the month of first purchase of natural or manufactured gas to generate electricity at the facility occurs. The first payment will be due on or before December 31st with subsequent annual payments due on or before December 31st of the following four years according to the following schedule:
Payment Year | % of Credit to be Paid |
1 | 10% |
2 | 15% |
3 | 20% |
4 | 25% |
5 | 30% |
(b) The department may authorize an accelerated payment schedule upon request of the taxpayer.
(c) Interest shall not be charged on the credit that is disallowed for the sixty-month period the credit may be taken, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed. The debt for credit that is disallowed and must be paid will not be extinguished by insolvency or other failure of the direct service industrial customer. Transfer of ownership of the facility does not affect eligibility for this credit. However, the credit is available to the successor only if the eligibility conditions of this section are met.
(7) The employment security department shall make, and certify to the department of ((revenue))taxation, all determinations of employment under this section as requested by the department.
(8) A person claiming this credit shall supply to the department quarterly reports containing information necessary to document the total volume of natural or manufactured gas purchased in the quarter, the value of that total volume, and the percentage of the total volume used to generate electricity at the facility.
Sec. 213. RCW
82.04.450 and 1983 1st ex.s. c 55 s 3 are each amended to read as follows:
(1) The value of products, including by-products, extracted or manufactured shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller, except:
(a) Where such products, including by-products, are extracted or manufactured for commercial or industrial use;
(b) Where such products, including by-products, are shipped, transported or transferred out of the state, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale.
(2) In the above cases the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products: PROVIDED, That the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond: (a) To the retail selling price of such new or improved product when first offered for sale; or (b) to the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. The department of ((revenue))taxation shall prescribe uniform and equitable rules for the purpose of ascertaining such values.
Sec. 214. RCW
82.08.0201 and 1992 c 194 s 10 are each amended to read as follows:
Before January 1, 1994, and January 1 of each odd-numbered year thereafter:
The department of licensing, with the assistance of the department of ((
revenue))
taxation, shall provide the office of financial management and the fiscal committees of the legislature with an updated estimate of the amount of revenue attributable to the taxes imposed in RCW
82.08.020(2), and the amount of revenue not collected as a result of RCW
82.44.023.
Sec. 215. RCW
82.08.0266 and 2013 c 23 s 316 are each amended to read as follows:
The tax levied by RCW
82.08.020 shall not apply to sales to nonresidents of this state for use outside of this state of watercraft requiring coast guard registration or registration by the state of principal use according to the federal boating act of 1958, even though delivery be made within this state, but only when (1) the watercraft will not be used within this state for more than forty-five days and (2) an appropriate exemption certificate supported by identification ascertaining residence as required by the department of ((
revenue))
taxation and signed by the purchaser or his or her agent establishing the fact that the purchaser is a nonresident and that the watercraft is for use outside of this state, a copy of which shall be retained by the dealer.
Sec. 216. RCW
82.08.02665 and 1999 c 358 s 6 are each amended to read as follows:
The tax levied by RCW
82.08.020 does not apply to sales of vessels to residents of foreign countries for use outside of this state, even though delivery is made within this state, but only if (1) the vessel will not be used within this state for more than forty-five days and (2) an appropriate exemption certificate supported by identification as required by the department of ((
revenue))
taxation and signed by the purchaser or the purchaser's agent establishes the fact that the purchaser is a resident of a foreign country and that the vessel is for use outside of this state. A copy of the exemption certificate is to be retained by the dealer.
As used in this section, "vessel" means every watercraft used or capable of being used as a means of transportation on the water, other than a seaplane.
Sec. 217. RCW
82.08.0268 and 1998 c 167 s 1 are each amended to read as follows:
The tax levied by RCW
82.08.020 shall not apply to sales to nonresidents of this state for use outside of this state of:
(1) Machinery and implements for use in conducting a farming activity;
(2) Parts for machinery and implements for use in conducting a farming activity; and
(3) Labor and services for the repair of machinery, implements, and parts for use in conducting a farming activity,
when such machinery, implements, and parts will be transported immediately outside the state. As proof of exemption, an affidavit or certification in such form as the department of ((revenue))taxation shall require shall be retained as a business record of the seller.
Sec. 218. RCW
82.08.0273 and 2014 c 140 s 17 are each amended to read as follows:
(1) The tax levied by RCW
82.08.020 does not apply to sales to nonresidents of this state of tangible personal property, digital goods, and digital codes, when:
(a) The property is for use outside this state;
(b) The purchaser is a bona fide resident of a province or territory of Canada or a state, territory, or possession of the United States, other than the state of Washington; and
(i) Such state, possession, territory, or province does not impose, or have imposed on its behalf, a generally applicable retail sales tax, use tax, value added tax, gross receipts tax on retailing activities, or similar generally applicable tax, of three percent or more; or
(ii) If imposing a tax described in (b)(i) of this subsection, provides an exemption for sales to Washington residents by reason of their residence; and
(c) The purchaser agrees, when requested, to grant the department of ((revenue))taxation access to such records and other forms of verification at his or her place of residence to assure that such purchases are not first used substantially in the state of Washington.
(2) Notwithstanding anything to the contrary in this chapter, if parts or other tangible personal property are installed by the seller during the course of repairing, cleaning, altering, or improving motor vehicles, trailers, or campers and the seller makes a separate charge for the tangible personal property, the tax levied by RCW
82.08.020 does not apply to the separately stated charge to a nonresident purchaser for the tangible personal property but only if the separately stated charge does not exceed either the seller's current publicly stated retail price for the tangible personal property or, if no publicly stated retail price is available, the seller's cost for the tangible personal property. However, the exemption provided by this section does not apply if tangible personal property is installed by the seller during the course of repairing, cleaning, altering, or improving motor vehicles, trailers, or campers and the seller makes a single nonitemized charge for providing the tangible personal property and service. All of the requirements in subsections (1) and (3) through (6) of this section apply to this subsection.
(3)(a) Any person claiming exemption from retail sales tax under the provisions of this section must display proof of his or her current nonresident status as provided in this section.
(b) Acceptable proof of a nonresident person's status includes one piece of identification such as a valid driver's license from the jurisdiction in which the out-of-state residency is claimed or a valid identification card which has a photograph of the holder and is issued by the out-of-state jurisdiction. Identification under this subsection (3)(b) must show the holder's residential address and have as one of its legal purposes the establishment of residency in that out-of-state jurisdiction.
(c) In lieu of furnishing proof of a person's nonresident status under (b) of this subsection (3), a person claiming exemption from retail sales tax under the provisions of this section may provide the seller with an exemption certificate in compliance with subsection (4)(b) of this section.
(4)(a) Nothing in this section requires the vendor to make tax exempt retail sales to nonresidents. A vendor may choose to make sales to nonresidents, collect the sales tax, and remit the amount of sales tax collected to the state as otherwise provided by law. If the vendor chooses to make a sale to a nonresident without collecting the sales tax, the vendor must examine the purchaser's proof of nonresidence, determine whether the proof is acceptable under subsection (3)(b) of this section, and maintain records for each nontaxable sale which must show the type of proof accepted, including any identification numbers where appropriate, and the expiration date, if any.
(b) In lieu of using the method provided in (a) of this subsection to document an exempt sale to a nonresident, a seller may accept from the purchaser a properly completed uniform exemption certificate approved by the streamlined sales and use tax agreement governing board or any other exemption certificate as may be authorized by the department and properly completed by the purchaser. A nonresident purchaser who uses an exemption certificate authorized in this subsection (4)(b) must include the purchaser's driver's license number or other state-issued identification number and the state of issuance.
(c) In lieu of using the methods provided in (a) and (b) of this subsection to document an exempt sale to a nonresident, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement.
(5)(a) Any person making fraudulent statements, which includes the offer of fraudulent identification or fraudulently procured identification to a vendor, in order to purchase goods without paying retail sales tax is guilty of perjury under chapter
9A.72 RCW.
(b) Any person making tax exempt purchases under this section by displaying proof of identification not his or her own, or counterfeit identification, with intent to violate the provisions of this section, is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one hundred dollars or the tax due on such purchases.
(6)(a) Any vendor who makes sales without collecting the tax and who fails to maintain records of sales to nonresidents as provided in this section is personally liable for the amount of tax due.
(b) Any vendor who makes sales without collecting the retail sales tax under this section and who has actual knowledge that the purchaser's proof of identification establishing out-of-state residency is fraudulent is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one thousand dollars or the tax due on such sales. In addition, both the purchaser and the vendor are liable for any penalties and interest assessable under chapter
82.32 RCW.
(7) The exemption in this section does not apply to sales of marijuana, useable marijuana, or marijuana-infused products.
Sec. 219. RCW
82.08.060 and 1975 1st ex.s. c 278 s 47 are each amended to read as follows:
The department of ((revenue))taxation shall have power to adopt rules and regulations prescribing methods and schedules for the collection of the tax required to be collected by the seller from the buyer under this chapter. The methods and schedules prescribed shall be adopted so as to eliminate the collection of fractions of one cent and so as to provide that the aggregate collections of all taxes by the seller shall, insofar as practicable, equal the amount of tax imposed by this chapter. Such schedules may provide that no tax need be collected from the buyer upon sales below a stated sum and may be amended from time to time to accomplish the purposes set forth herein.
Sec. 220. RCW
82.08.080 and 2004 c 153 s 409 are each amended to read as follows:
(1) The department of ((
revenue))
taxation may authorize a seller to pay the tax levied under this chapter upon sales made under conditions of business such as to render impracticable the collection of the tax as a separate item and waive collection of the tax from the customer. Where sales are made by a vending machine that results in delivery of the merchandise in single purchases of smaller value than the minimum sale upon which a one cent tax may be collected from the purchaser, according to the schedule provided by the department under authority of RCW
82.08.060, and where the design of the sales device is such that multiple sales of items are not possible or cannot be detected so as practically to assess a tax, in such a case the selling price for the purposes of the tax imposed under RCW
82.08.020 shall be sixty percent of the gross receipts of the vending machine through which such sales are made.
(2) No such authority shall be granted except upon application to the department and unless the department, after hearing, finds that the conditions of the applicant's business are such as to render impracticable the collection of the tax in the manner otherwise provided. The department, by rule, may provide that the applicant, under this section, furnish a proper bond sufficient to secure the payment of the tax.
(3) "Vending machine" means a machine or other mechanical device that accepts payment and:
(a) Dispenses tangible personal property;
(b) Provides facilities for installing, repairing, cleaning, altering, imprinting, or improving tangible personal property; or
(c) Provides a service to the buyer.
Sec. 221. RCW
82.08.090 and 1975 1st ex.s. c 278 s 49 are each amended to read as follows:
In the case of installment sales and leases of personal property, the department of ((revenue))taxation, by regulation, may provide for the collection of taxes upon the installments of the purchase price, or amount of rental, as of the time the same fall due.
Sec. 222. RCW
82.08.100 and 2013 c 23 s 318 are each amended to read as follows:
The department of ((
revenue))
taxation, by general regulation, shall provide that a taxpayer whose regular books of account are kept on a cash receipts basis may file returns based upon his or her cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period. A taxpayer filing returns on a cash receipts basis is not required to pay such tax on debt subject to credit or refund under RCW
82.08.037.
Sec. 223. RCW
82.08.120 and 1985 c 38 s 4 are each amended to read as follows:
Whoever, excepting as expressly authorized by this chapter, refunds, remits, or rebates to a buyer, either directly or indirectly and by whatever means, all or any part of the tax levied by this chapter shall be guilty of a misdemeanor. The violation of this section by any person holding a license granted by the state or any political subdivision thereof shall be sufficient grounds for the cancellation of the license of such person upon written notification by the department of ((revenue))taxation to the proper officer of the department granting the license that such person has violated the provisions of this section. Before any license shall be canceled hereunder, the licensee shall be entitled to a hearing before the department granting the license under such regulations as the department may prescribe.
Sec. 224. RCW
82.08.160 and 2015 3rd sp.s. c 4 s 975 are each amended to read as follows:
(1) On or before the twenty-fifth day of each month, all taxes collected under RCW
82.08.150 during the preceding month must be remitted to the state department of ((
revenue))
taxation, to be deposited with the state treasurer. Except as provided in subsections (2), (3), (4), and (5) of this section, upon receipt of such moneys the state treasurer must credit sixty-five percent of the sums collected and remitted under RCW
82.08.150 (1) and (2) and one hundred percent of the sums collected and remitted under RCW
82.08.150 (3) and (4) to the state general fund and thirty-five percent of the sums collected and remitted under RCW
82.08.150 (1) and (2) to a fund which is hereby created to be known as the "liquor excise tax fund."
(2) During the 2012 fiscal year, 66.19 percent of the sums collected and remitted under RCW
82.08.150 (1) and (2) must be deposited in the state general fund and the remainder collected and remitted under RCW
82.08.150 (1) and (2) must be deposited in the liquor excise tax fund.
(3) During fiscal year 2013, all funds collected under RCW
82.08.150 (1), (2), (3), and (4) must be deposited into the state general fund.
(4) During the 2013-2015 fiscal biennium, seventy-seven and one-half percent of the sums collected and remitted under RCW
82.08.150 (1) and (2) must be deposited in the state general fund, and the remainder collected and remitted under RCW
82.08.150 (1) and (2) must be deposited in the liquor excise tax fund. The amendments in this section are curative, clarifying, and remedial and apply retroactively to July 1, 2013.
(5) During the 2015-2017 fiscal biennium, the liquor excise tax fund may be appropriated for the local government fiscal note program in the department of commerce. It is the intent of the legislature to continue these policies in the 2017-2019 fiscal biennium.
Sec. 225. RCW
82.08.811 and 1997 c 368 s 4 are each amended to read as follows:
(1) For the purposes of this section:
(a) "Air pollution control facilities" means any treatment works, control devices and disposal systems, machinery, equipment, structure, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation; and
(b) "Generation facility" means a coal-fired thermal electric generation facility placed in operation after December 3, 1969, and before July 1, 1975.
(2) Beginning January 1, 1999, the tax levied by RCW
82.08.020 does not apply to sales of coal used to generate electric power at a generation facility operated by a business if the following conditions are met:
(a) The owners must make an application to the department of ((revenue))taxation for a tax exemption;
(b) The owners must make a demonstration to the department of ecology that the owners have made reasonable initial progress to install air pollution control facilities to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter
70.94 RCW;
(c) Continued progress must be made on the development of air pollution control facilities to meet the requirements of the permit; and
(d) The generation facility must emit no more than ten thousand tons of sulfur dioxide during a previous consecutive twelve-month period.
(3) During a consecutive twelve-month period, if the generation facility is found to be in violation of excessive sulfur dioxide emissions from a regional air pollution control authority or the department of ecology, the department of ecology shall notify the department of ((revenue))taxation and the owners of the generation facility shall lose their tax exemption under this section. The owners of a generation facility may reapply for the tax exemption when they have once again met the conditions of subsection (2)(d) of this section.
Sec. 226. RCW
82.08.820 and 2014 c 140 s 23 are each amended to read as follows:
(1) Wholesalers or third-party warehousers who own or operate warehouses or grain elevators and retailers who own or operate distribution centers, and who have paid the tax levied by RCW
82.08.020 on:
(a) Material-handling and racking equipment, and labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the equipment; or
(b) Construction of a warehouse or grain elevator, including materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount of the remittance is computed under subsection (3) of this section and is based on the state share of sales tax.
(2) For purposes of this section and RCW
82.12.820:
(a) "Agricultural products" has the meaning given in RCW
82.04.213;
(b) "Construction" means the actual construction of a warehouse or grain elevator that did not exist before the construction began. "Construction" includes expansion if the expansion adds at least two hundred thousand square feet of additional space to an existing warehouse or additional storage capacity of at least one million bushels to an existing grain elevator. "Construction" does not include renovation, remodeling, or repair;
(c) "Department" means the department of ((revenue))taxation;
(d) "Distribution center" means a warehouse that is used exclusively by a retailer solely for the storage and distribution of finished goods to retail outlets of the retailer. "Distribution center" does not include a warehouse at which retail sales occur;
(e) "Finished goods" means tangible personal property intended for sale by a retailer or wholesaler. "Finished goods" does not include:
(i) Agricultural products stored by wholesalers, third-party warehouses, or retailers if the storage takes place on the land of the person who produced the agricultural product;
(ii) Logs, minerals, petroleum, gas, or other extracted products stored as raw materials or in bulk; or
(iii) Marijuana, useable marijuana, or marijuana-infused products;
(f) "Grain elevator" means a structure used for storage and handling of grain in bulk;
(g) "Material-handling equipment and racking equipment" means equipment in a warehouse or grain elevator that is primarily used to handle, store, organize, convey, package, or repackage finished goods. The term includes tangible personal property with a useful life of one year or more that becomes an ingredient or component of the equipment, including repair and replacement parts. The term does not include equipment in offices, lunchrooms, restrooms, and other like space, within a warehouse or grain elevator, or equipment used for nonwarehousing purposes. "Material-handling equipment" includes but is not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized systems, including containers that are an integral part of the system, whose purpose is to lift or move tangible personal property; and automated handling, storage, and retrieval systems, including computers that control them, whose purpose is to lift or move tangible personal property; and forklifts and other off-the-road vehicles that are used to lift or move tangible personal property and that cannot be operated legally on roads and streets. "Racking equipment" includes, but is not limited to, conveying systems, chutes, shelves, racks, bins, drawers, pallets, and other containers and storage devices that form a necessary part of the storage system;
(h) "Person" has the meaning given in RCW
82.04.030;
(i) "Retailer" means a person who makes "sales at retail" as defined in chapter
82.04 RCW of tangible personal property;
(j) "Square footage" means the product of the two horizontal dimensions of each floor of a specific warehouse. The entire footprint of the warehouse must be measured in calculating the square footage, including space that juts out from the building profile such as loading docks. "Square footage" does not mean the aggregate of the square footage of more than one warehouse at a location or the aggregate of the square footage of warehouses at more than one location;
(k) "Third-party warehouser" means a person taxable under RCW
82.04.280(1)(d);
(l) "Warehouse" means an enclosed building or structure in which finished goods are stored. A warehouse building or structure may have more than one storage room and more than one floor. Office space, lunchrooms, restrooms, and other space within the warehouse and necessary for the operation of the warehouse are considered part of the warehouse as are loading docks and other such space attached to the building and used for handling of finished goods. Landscaping and parking lots are not considered part of the warehouse. A storage yard is not a warehouse, nor is a building in which manufacturing takes place; and
(m) "Wholesaler" means a person who makes "sales at wholesale" as defined in chapter
82.04 RCW of tangible personal property, but "wholesaler" does not include a person who makes sales exempt under RCW
82.04.330.
(3)(a) A person claiming an exemption from state tax in the form of a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance of all or part of the tax paid under RCW
82.08.020. For grain elevators with bushel capacity of one million but less than two million, the remittance is equal to fifty percent of the amount of tax paid. For warehouses with square footage of two hundred thousand or more and for grain elevators with bushel capacity of two million or more, the remittance is equal to one hundred percent of the amount of tax paid for qualifying construction, materials, service, and labor, and fifty percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the equipment.
(b) The department must determine eligibility under this section based on information provided by the buyer and through audit and other administrative records. The buyer must on a quarterly basis submit an information sheet, in a form and manner as required by the department by rule, specifying the amount of exempted tax claimed and the qualifying purchases or acquisitions for which the exemption is claimed. The buyer must retain, in adequate detail to enable the department to determine whether the equipment or construction meets the criteria under this section: Invoices; proof of tax paid; documents describing the material-handling equipment and racking equipment; location and size of warehouses and grain elevators; and construction invoices and documents.
(c) The department must on a quarterly basis remit exempted amounts to qualifying persons who submitted applications during the previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment and racking equipment for which an exemption, credit, or deferral has been or is being received under chapter
82.60, 82.62, or
82.63 RCW or RCW
82.08.02565 or
82.12.02565 are not eligible for any remittance under this section. Warehouses and grain elevators upon which construction was initiated before May 20, 1997, are not eligible for a remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not eligible for a remittance under this section unless the underlying ownership of the warehouse or grain elevator and the material-handling equipment and racking equipment vests exclusively in the same person, or unless the lessor by written contract agrees to pass the economic benefit of the remittance to the lessee in the form of reduced rent payments.
Sec. 227. RCW
82.08.890 and 2014 c 97 s 602 are each amended to read as follows:
(1) The tax levied by RCW
82.08.020 does not apply to sales to eligible persons of:
(a) Qualifying livestock nutrient management equipment;
(b) Labor and services rendered in respect to installing, repairing, cleaning, altering, or improving qualifying livestock nutrient management equipment; and
(c)(i) Labor and services rendered in respect to repairing, cleaning, altering, or improving of qualifying livestock nutrient management facilities, or to tangible personal property that becomes an ingredient or component of qualifying livestock nutrient management facilities in the course of repairing, cleaning, altering, or improving of such facilities.
(ii) The exemption provided in this subsection (1)(c) does not apply to the sale of or charge made for: (A) Labor and services rendered in respect to the constructing of new, or replacing previously existing, qualifying livestock nutrient management facilities; or (B) tangible personal property that becomes an ingredient or component of qualifying livestock nutrient management facilities during the course of constructing new, or replacing previously existing, qualifying livestock nutrient management facilities.
(2) The exemption provided in subsection (1) of this section applies to sales made after the livestock nutrient management plan is: (a) Certified under chapter
90.64 RCW; (b) approved as part of the permit issued under chapter
90.48 RCW; or (c) approved as required under subsection (4)(c)(iii) of this section.
(3)(a) The department of agriculture must provide a list of eligible persons, as defined in subsection (4)(c)(i) and (ii) of this section, to the department of ((revenue))taxation upon request. Conservation districts must maintain lists of eligible persons as defined in subsection (4)(c)(iii) of this section to allow the department of ((revenue))taxation to verify eligibility.
(b) A purchaser claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. Sellers making tax-exempt sales under this section must obtain an exemption certificate from the purchaser in a form and manner prescribed by the department. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement. The seller must retain a copy of the certificate or the data elements for the seller's files.
(4) The definitions in this subsection apply to this section and RCW
82.12.890 unless the context clearly requires otherwise:
(a) "Animal feeding operation" means a lot or facility, other than an aquatic animal production facility, where the following conditions are met:
(i) Animals, other than aquatic animals, have been, are, or will be stabled or confined and fed or maintained for a total of forty-five days or more in any twelve-month period; and
(ii) Crops, vegetation, forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility.
(b) "Conservation district" means a subdivision of state government organized under chapter
89.08 RCW.
(c) "Eligible person" means a person: (i) Licensed to produce milk under chapter
15.36 RCW who has a certified dairy nutrient management plan, as required by chapter
90.64 RCW; (ii) who owns an animal feeding operation and has a permit issued under chapter
90.48 RCW; or (iii) who owns an animal feeding operation and has a nutrient management plan approved by a conservation district as meeting natural resource conservation service field office technical guide standards and who qualifies for the exemption provided under RCW
82.08.855.
(d) "Handling and treatment of livestock manure" means the activities of collecting, storing, moving, or transporting livestock manure, separating livestock manure solids from liquids, or applying livestock manure to the agricultural lands of an eligible person other than through the use of pivot or linear type traveling irrigation systems.
(e) "Permit" means either a state waste discharge permit or a national pollutant discharge elimination system permit, or both.
(f) "Qualifying livestock nutrient management equipment" means the following tangible personal property for exclusive use in the handling and treatment of livestock manure, including repair and replacement parts for such equipment: (i) Aerators; (ii) agitators; (iii) augers; (iv) conveyers; (v) gutter cleaners; (vi) hard-hose reel traveler irrigation systems; (vii) lagoon and pond liners and floating covers; (viii) loaders; (ix) manure composting devices; (x) manure spreaders; (xi) manure tank wagons; (xii) manure vacuum tanks; (xiii) poultry house cleaners; (xiv) poultry house flame sterilizers; (xv) poultry house washers; (xvi) poultry litter saver machines; (xvii) pipes; (xviii) pumps; (xix) scrapers; (xx) separators; (xxi) slurry injectors and hoses; and (xxii) wheelbarrows, shovels, and pitchforks.
(g) "Qualifying livestock nutrient management facilities" means the following structures and facilities for exclusive use in the handling and treatment of livestock manure: (i) Flush systems; (ii) lagoons; (iii) liquid livestock manure storage structures, such as concrete tanks or glass-lined steel tanks; and (iv) structures used solely for the dry storage of manure, including roofed stacking facilities.
(5) The exemption under this section does not apply to sales made from July 1, 2010, through June 30, 2013.
Sec. 228. RCW
82.12.010 and 2017 c 323 s 519 are each amended to read as follows:
For the purposes of this chapter:
(1) The meaning ascribed to words and phrases in chapters
82.04 and
82.08 RCW, insofar as applicable, has full force and effect with respect to taxes imposed under the provisions of this chapter. "Consumer," in addition to the meaning ascribed to it in chapters
82.04 and
82.08 RCW insofar as applicable, also means any person who distributes or displays, or causes to be distributed or displayed, any article of tangible personal property, except newspapers, the primary purpose of which is to promote the sale of products or services. With respect to property distributed to persons within this state by a consumer as defined in this subsection (1), the use of the property is deemed to be by such consumer.
(2) "Extended warranty" has the same meaning as in RCW
82.04.050(7).
(3) "Purchase price" means the same as sales price as defined in RCW
82.08.010.
(4)(a)(i) Except as provided in (a)(ii) of this subsection (4), "retailer" means every seller as defined in RCW
82.08.010 and every person engaged in the business of selling tangible personal property at retail and every person required to collect from purchasers the tax imposed under this chapter.
(ii) "Retailer" does not include a professional employer organization when a covered employee coemployed with the client under the terms of a professional employer agreement engages in activities that constitute a sale of tangible personal property, extended warranty, digital good, digital code, or a sale of any digital automated service or service defined as a retail sale in RCW
82.04.050 (2) (a) or (g) or (6)(c) that is subject to the tax imposed by this chapter. In such cases, the client, and not the professional employer organization, is deemed to be the retailer and is responsible for collecting and remitting the tax imposed by this chapter.
(b) For the purposes of (a) of this subsection, the terms "client," "covered employee," "professional employer agreement," and "professional employer organization" have the same meanings as in RCW
82.04.540.
(5) "Taxpayer" and "purchaser" include all persons included within the meaning of the word "buyer" and the word "consumer" as defined in chapters
82.04 and
82.08 RCW.
(6) "Use," "used," "using," or "put to use" have their ordinary meaning, and mean:
(a) With respect to tangible personal property, except for natural gas and manufactured gas, the first act within this state by which the taxpayer takes or assumes dominion or control over the article of tangible personal property (as a consumer), and include installation, storage, withdrawal from storage, distribution, or any other act preparatory to subsequent actual use or consumption within this state;
(b) With respect to a service defined in RCW
82.04.050(2)(a), the first act within this state after the service has been performed by which the taxpayer takes or assumes dominion or control over the article of tangible personal property upon which the service was performed (as a consumer), and includes installation, storage, withdrawal from storage, distribution, or any other act preparatory to subsequent actual use or consumption of the article within this state;
(c) With respect to an extended warranty, the first act within this state after the extended warranty has been acquired by which the taxpayer takes or assumes dominion or control over the article of tangible personal property to which the extended warranty applies, and includes installation, storage, withdrawal from storage, distribution, or any other act preparatory to subsequent actual use or consumption of the article within this state;
(d) With respect to a digital good or digital code, the first act within this state by which the taxpayer, as a consumer, views, accesses, downloads, possesses, stores, opens, manipulates, or otherwise uses or enjoys the digital good or digital code;
(e) With respect to a digital automated service, the first act within this state by which the taxpayer, as a consumer, uses, enjoys, or otherwise receives the benefit of the service;
(f) With respect to a service defined as a retail sale in RCW
82.04.050(6)(c), the first act within this state by which the taxpayer, as a consumer, accesses the prewritten computer software;
(g) With respect to a service defined as a retail sale in RCW
82.04.050(2)(g), the first act within this state after the service has been performed by which the taxpayer, as a consumer, views, accesses, downloads, possesses, stores, opens, manipulates, or otherwise uses or enjoys the digital good upon which the service was performed; and
(h) With respect to natural gas or manufactured gas, the use of which is taxable under RCW
82.12.022, including gas that is also taxable under the authority of RCW
82.14.230, the first act within this state by which the taxpayer consumes the gas by burning the gas or storing the gas in the taxpayer's own facilities for later consumption by the taxpayer.
(7)(a) "Value of the article used" is the purchase price for the article of tangible personal property, the use of which is taxable under this chapter. The term also includes, in addition to the purchase price, the amount of any tariff or duty paid with respect to the importation of the article used. In case the article used is acquired by lease or by gift or is extracted, produced, or manufactured by the person using the same or is sold under conditions wherein the purchase price does not represent the true value thereof, the value of the article used is determined as nearly as possible according to the retail selling price at place of use of similar products of like quality and character under such rules as the department may prescribe.
(b) In case the articles used are acquired by bailment, the value of the use of the articles so used must be in an amount representing a reasonable rental for the use of the articles so bailed, determined as nearly as possible according to the value of such use at the places of use of similar products of like quality and character under such rules as the department of ((
revenue))
taxation may prescribe. In case any such articles of tangible personal property are used in respect to the construction, repairing, decorating, or improving of, and which become or are to become an ingredient or component of, new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter
35.82 RCW, including the installing or attaching of any such articles therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, then the value of the use of such articles so used is determined according to the retail selling price of such articles, or in the absence of such a selling price, as nearly as possible according to the retail selling price at place of use of similar products of like quality and character or, in the absence of either of these selling price measures, such value may be determined upon a cost basis, in any event under such rules as the department of ((
revenue))
taxation may prescribe.
(c) In the case of articles owned by a user engaged in business outside the state which are brought into the state for no more than one hundred eighty days in any period of three hundred sixty-five consecutive days and which are temporarily used for business purposes by the person in this state, the value of the article used must be an amount representing a reasonable rental for the use of the articles, unless the person has paid tax under this chapter or chapter
82.08 RCW upon the full value of the article used, as defined in (a) of this subsection.
(d) In the case of articles manufactured or produced by the user and used in the manufacture or production of products sold or to be sold to the department of defense of the United States, the value of the articles used is determined according to the value of the ingredients of such articles.
(e) In the case of an article manufactured or produced for purposes of serving as a prototype for the development of a new or improved product, the value of the article used is determined by: (i) The retail selling price of such new or improved product when first offered for sale; or (ii) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale.
(f) In the case of an article purchased with a direct pay permit under RCW
82.32.087, the value of the article used is determined by the purchase price of such article if, but for the use of the direct pay permit, the transaction would have been subject to sales tax.
(8) "Value of the digital good or digital code used" means the purchase price for the digital good or digital code, the use of which is taxable under this chapter. If the digital good or digital code is acquired other than by purchase, the value of the digital good or digital code must be determined as nearly as possible according to the retail selling price at place of use of similar digital goods or digital codes of like quality and character under rules the department may prescribe.
(9) "Value of the extended warranty used" means the purchase price for the extended warranty, the use of which is taxable under this chapter. If the extended warranty is received by gift or under conditions wherein the purchase price does not represent the true value of the extended warranty, the value of the extended warranty used is determined as nearly as possible according to the retail selling price at place of use of similar extended warranties of like quality and character under rules the department may prescribe.
(10) "Value of the service used" means the purchase price for the digital automated service or other service, the use of which is taxable under this chapter. If the service is received by gift or under conditions wherein the purchase price does not represent the true value thereof, the value of the service used is determined as nearly as possible according to the retail selling price at place of use of similar services of like quality and character under rules the department may prescribe.
Sec. 229. RCW
82.12.024 and 2001 c 214 s 10 are each amended to read as follows:
(1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
(a) "Direct service industrial customer" means a person who is an industrial customer that contracts for the purchase of power from the Bonneville Power Administration for direct consumption as of May 8, 2001. "Direct service industrial customer" includes a person who is a subsidiary that is more than fifty percent owned by a direct service industrial customer and who receives power from the Bonneville Power Administration pursuant to the parent's contract for power.
(b) "Facility" means a gas turbine electrical generation facility that does not exist on May 8, 2001, and is owned by a direct service industrial customer for the purpose of producing electricity to be consumed by the direct service industrial customer.
(c) "Average annual employment" means the total employment in this state for a calendar year at the direct service industrial customer's location where electricity from the facility will be consumed.
(2) Effective July 1, 2001, the tax levied in RCW
82.12.022 on the first sixty months' use of natural or manufactured gas by a direct service industrial customer that owns a facility shall be deferred. This deferral is limited to the tax on natural or manufactured gas used or consumed to generate electricity at the facility.
(3) Application for deferral shall be made by the direct service industrial customer before the first use of natural or manufactured gas. The application shall be in a form and manner prescribed by the department and shall include but is not limited to information regarding the location of the facility, the projected date of first use of natural or manufactured gas to generate electricity at the facility, the date construction is projected to begin or did begin, the applicant's average annual employment in the state for the six calendar years immediately preceding the year in which the application is made, and shall affirm the applicant's status as a direct service industrial customer. The department shall rule on the application within thirty days of receipt.
(4)(a) The direct service industrial customer shall begin paying the deferred tax in the sixth calendar year following the calendar year in which the month of first use of natural or manufactured gas to generate electricity at the facility occurs. The first payment will be due on or before December 31st with subsequent annual payments due on or before December 31st of the following four years according to the following schedule:
Payment Year | % of Deferred Tax to be Paid |
1 | 10% |
2 | 15% |
3 | 20% |
4 | 25% |
5 | 30% |
(b) The department may authorize an accelerated payment schedule upon request of the taxpayer.
(c) Interest shall not be charged on the tax deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed. The debt for deferred tax will not be extinguished by insolvency or other failure of the direct service industrial customer. Transfer of ownership of the facility does not affect deferral eligibility. However, the deferral is available to the successor only if the eligibility conditions of this section are met.
(5)(a) If the average of the direct service industrial customer's average annual employment for the five calendar years subsequent to the calendar year containing the first month of use of natural or manufactured gas to generate electricity at a facility is equal to or exceeds the six-year average annual employment stated on the application for deferral under this section, the tax deferred need not be paid. The direct service industrial customer shall certify to the department by June 1st of the sixth calendar year following the calendar year in which the month of first use of gas occurs the average annual employment for each of the five prior calendar years.
(b) If the five-year average calculated in (a) of this subsection is less than the average annual employment stated on the application for deferral under this section, the tax deferred under this section shall be paid in the amount as follows:
Decrease in Average Annual Employment Over Five-Year Period | % of Deferred Tax to be Paid |
Less than 10% | 10% |
10% or more but less than 25% | 25% |
25% or more but less than 50% | 50% |
50% or more but less than 75% | 75% |
75% or more | 100% |
(c) Tax paid under this subsection shall be paid according to the schedule in subsection (4)(a) of this section and under the terms and conditions of subsection (4)(b) and (c) of this section.
(6) The employment security department shall make, and certify to the department of ((revenue))taxation, all determinations of employment under this section as requested by the department.
(7) A person claiming this deferral shall supply to the department quarterly reports containing information necessary to document the total volume of natural or manufactured gas purchased in the quarter, the value of that total volume, and the percentage of the total volume used to generate electricity at the facility.
Sec. 230. RCW
82.12.0256 and 2013 c 225 s 646 are each amended to read as follows:
The provisions of this chapter do not apply in respect to the use of:
(1) Special fuel purchased in this state upon which a refund is obtained as provided in RCW
82.38.180(1)(b); and
(2) Motor vehicle and special fuel if:
(a) The fuel is used for the purpose of public transportation and the purchaser is entitled to a refund or an exemption under RCW
82.38.080(1) (f) and (g) or
82.38.180(3)(b); or
(b) The fuel is purchased by a private, nonprofit transportation provider certified under chapter
81.66 RCW and the purchaser is entitled to a refund or an exemption under RCW
82.38.080(1)(d) or
82.38.180(3)(a); or
(c) The fuel is purchased by a public transportation benefit area created under chapter
36.57A RCW or a county-owned ferry or county ferry district created under chapter
36.54 RCW for use in passenger-only ferry vessels; or
(d) The fuel is taxable under chapter
82.38 RCW. However, the use of motor vehicle and special fuel upon which a refund of the applicable fuel tax is obtained is not exempt under this subsection (2)(d) and the director of licensing must deduct from the amount of such tax to be refunded the amount of tax due under this chapter and remit the same each month to the department of ((
revenue))
taxation; or
(e) The fuel is purchased by a county-owned ferry for use in ferry vessels after June 30, 2013; or
(f) The fuel is purchased by the Washington state ferry system for use in a state-owned ferry after June 30, 2013.
Sec. 231. RCW
82.12.045 and 2010 c 161 s 904 are each amended to read as follows:
(1) In the collection of the use tax on vehicles, the department of ((revenue))taxation may designate the county auditors of the several counties of the state as its collecting agents. Upon such designation, it shall be the duty of each county auditor to collect the tax at the time an applicant applies for transfer of certificate of title to the vehicle, except when the applicant:
(a) Exhibits a dealer's report of sale showing that the retail sales tax has been collected by the dealer;
(b) Presents a written statement signed by the department of ((revenue))taxation, or its duly authorized agent showing that no use tax is legally due; or
(c) Presents satisfactory evidence showing that the retail sales tax or the use tax has been paid by the applicant on the vehicle in question.
(2) As used in this section, "vehicle" has the same meaning as in RCW
46.04.670.
(3) It shall be the duty of every applicant for registration and transfer of certificate of title who is subject to payment of tax under this section to declare upon the application the value of the vehicle for which application is made, which shall consist of the consideration paid or contracted to be paid therefor.
(4) Each county auditor who acts as agent of the department of ((revenue))taxation shall at the time of remitting vehicle license fee receipts on vehicles subject to the provisions of this section pay over and account to the state treasurer for all use tax revenue collected under this section, after first deducting as a collection fee the sum of two dollars for each motor vehicle upon which the tax has been collected. All revenue received by the state treasurer under this section shall be credited to the general fund. The auditor's collection fee shall be deposited in the county current expense fund. A duplicate of the county auditor's transmittal report to the state treasurer shall be forwarded forthwith to the department of ((revenue))taxation.
(5) Any applicant who has paid use tax to a county auditor under this section may apply to the department of ((
revenue))
taxation for refund thereof if he or she has reason to believe that such tax was not legally due and owing. No refund shall be allowed unless application therefor is received by the department of ((
revenue))
taxation within the statutory period for assessment of taxes, penalties, or interest prescribed by RCW
82.32.050(4). Upon receipt of an application for refund the department of ((
revenue))
taxation shall consider the same and issue its order either granting or denying it and if refund is denied the taxpayer shall have the right of appeal as provided in RCW
82.32.170,
82.32.180, and
82.32.190.
(6) The provisions of this section shall be construed as cumulative of other methods prescribed in chapters
82.04 through
82.32 RCW, inclusive, for the collection of the tax imposed by this chapter. The department of ((
revenue))
taxation shall have power to promulgate such rules as may be necessary to administer the provisions of this section. Any duties required by this section to be performed by the county auditor may be performed by the director of licensing but no collection fee shall be deductible by said director in remitting use tax revenue to the state treasurer.
(7) The use tax revenue collected on the rate provided in RCW
82.08.020(3) shall be deposited in the multimodal transportation account under RCW
47.66.070.
Sec. 232. RCW
82.12.070 and 2013 c 23 s 319 are each amended to read as follows:
The department of ((
revenue))
taxation, by general regulation, shall provide that a taxpayer whose regular books of account are kept on a cash receipts basis may file returns based upon his or her cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period. A taxpayer filing returns on a cash receipts basis is not required to pay such tax on debt subject to credit or refund under RCW
82.12.037.
Sec. 233. RCW
82.12.811 and 1997 c 368 s 6 are each amended to read as follows:
(1) For the purposes of this section:
(a) "Air pollution control facilities" means any treatment works, control devices and disposal systems, machinery, equipment, structure, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation; and
(b) "Generation facility" means a coal-fired thermal electric generation facility placed in operation after December 3, 1969, and before July 1, 1975.
(2) Beginning January 1, 1999, the provisions of this chapter do not apply in respect to the use of coal to generate electric power at a generation facility operated by a business if the following conditions are met:
(a) The owners must make an application to the department of ((revenue))taxation for a tax exemption;
(b) The owners must make a demonstration to the department of ecology that the owners have made reasonable initial progress to install air pollution control facilities to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter
70.94 RCW;
(c) Continued progress must be made on the development of air pollution control facilities to meet the requirements of the permit; and
(d) The generation facility must emit no more than ten thousand tons of sulfur dioxide during a previous consecutive twelve-month period.
(3) During a consecutive twelve-month period, if the generation facility is found to be in violation of excessive sulfur dioxide emissions from a regional air pollution control authority or the department of ecology, the department of ecology shall notify the department of ((revenue))taxation and the owners of the generation facility shall lose their tax exemption under this section. The owners of a generation facility may reapply for the tax exemption when they have once again met the conditions of subsection (2)(d) of this section.
Sec. 234. RCW
82.14.048 and 2012 c 4 s 6 are each amended to read as follows:
(1) The following definitions apply throughout this section unless the context clearly requires otherwise.
(a) "Distressed public facilities district" means a public facilities district that has defaulted on bond anticipation notes or bonds in excess of forty million dollars on or before April 1, 2012; and
(b) "Anchor jurisdiction" means a city that has entered into an agreement to form a public facilities district under RCW
35.57.010(1)(c) that constitutes a distressed public facilities district under this chapter and in which the largest asset of such public facilities district is located.
(2)(a) The governing board of a public facilities district under chapter
36.100 or
35.57 RCW may submit an authorizing proposition to the voters of the district, and if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter.
(b) In addition to the tax authorized pursuant to (a) of this subsection and in addition to any other authority conferred by law, the legislative authority of an anchor jurisdiction may impose a sales and use tax within the geographical boundaries of the anchor jurisdiction in accordance with the terms of this chapter without submitting an authorizing proposition to the voters of the anchor jurisdiction or the distressed public facilities district.
(3) The tax authorized in this section is in addition to any other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the public facilities district. The rate of tax may not exceed two-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax. A public facilities district formed under RCW
35.57.010(1)(e) may not impose the tax authorized under this section at a rate that exceeds two-tenths of one percent minus the rate of the highest tax authorized by this section that is imposed by any other public facilities district within its boundaries. An anchor jurisdiction may impose the tax authorized by subsection (2)(b) of this section at a rate not to exceed two-tenths of one percent, regardless of whether any other public facilities district (including a distressed public facilities district) within its boundaries imposes the tax authorized by this section or the rate of such tax imposed by the public facilities district. If a public facilities district formed under RCW
35.57.010(1)(e) has imposed a tax under this section and issued or incurred obligations pledging that tax, so long as those obligations are outstanding no other public facilities district within its boundaries may thereafter impose a tax under this section at a rate that would reduce the rate of the tax that was pledged to the repayment of those obligations. A public facilities district that imposes a tax under this section is responsible for the payment of any costs incurred for the purpose of administering the provisions of this section, RCW
35.57.010(1)(e), and
35.57.020(1)(b), including any administrative costs associated with the imposition of the tax under this section incurred by either the department of ((
revenue))
taxation or local government, or both.
(4)(a) Moneys received by a public facilities district from any tax imposed by the public facilities district under the authority of this section must be used for the purpose of providing funds for the costs associated with the financing, refinancing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of its public facilities.
(b) Moneys received by an anchor jurisdiction from any tax imposed by the anchor jurisdiction under the authority of this section must be used for the purpose of providing funds for the costs associated with the financing, refinancing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of the public facilities of the distressed public facilities district, and for all litigation, investigation, and related costs and expenses incurred by the anchor jurisdiction toward resolving matters related to the defaults of the distressed public facilities district. To the extent the distressed public facilities district owes money to an anchor jurisdiction, the anchor jurisdiction may apply money from the sales tax imposed under this section to any such obligations. Any sales tax imposed by an anchor jurisdiction under this section must terminate no later than thirty years after it is first imposed.
Sec. 235. RCW
82.14.0485 and 1995 3rd sp.s. c 1 s 101 are each amended to read as follows:
(1) The legislative authority of a county with a population of one million or more may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall not exceed 0.017 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.
(2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of ((
revenue))
taxation under chapter
82.08 or
82.12 RCW. The department of ((
revenue))
taxation shall perform the collection of such taxes on behalf of the county at no cost to the county.
(3) Moneys collected under this section shall only be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium.
(4) No tax may be collected under this section before January 1, 1996, and no tax may be collected under this section unless the taxes under RCW
82.14.360 are being collected. The tax imposed in this section shall expire when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax is first collected.
(5) As used in this section, "baseball stadium" means a baseball stadium with natural turf and a retractable roof or canopy, together with associated parking facilities, constructed in the largest city in a county with a population of one million or more.
Sec. 236. RCW
82.14.0494 and 1997 c 220 s 204 are each amended to read as follows:
(1) The legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under RCW
36.102.050 may impose a sales and use tax in accordance with this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall be 0.016 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.
(2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of ((
revenue))
taxation under chapter
82.08 or
82.12 RCW. The department of ((
revenue))
taxation shall perform the collection of such taxes on behalf of the county at no cost to the county.
(3) Before the issuance of bonds in RCW
43.99N.020, all revenues collected on behalf of the county under this section shall be transferred to the public stadium authority. After bonds are issued under RCW
43.99N.020, all revenues collected on behalf of the county under this section shall be deposited in the stadium and exhibition center account under RCW
43.99N.060.
(4) The definitions in RCW
36.102.010 apply to this section.
(5) This section expires on the earliest of the following dates:
(a) December 31, 1999, if the conditions for issuance of bonds under RCW
43.99N.020 have not been met before that date;
(b) The date on which all bonds issued under RCW
43.99N.020 have been retired; or
(c) Twenty-three years after the date the tax under this section is first imposed.
Sec. 237. RCW
82.14.050 and 2016 c 191 s 4 are each amended to read as follows:
(1) The counties, cities, and transportation authorities under RCW
82.14.045, public facilities districts under chapters
36.100 and
35.57 RCW, public transportation benefit areas under RCW
82.14.440, regional transportation investment districts, and transportation benefit districts under chapter
36.73 RCW must contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of ((
revenue))
taxation, which must deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by this chapter that is collected by the department of ((
revenue))
taxation must be deposited by the state department of ((
revenue))
taxation in the local sales and use tax account hereby created in the state treasury. Beginning January 1, 2013, the department of ((
revenue))
taxation must make deposits in the local sales and use tax account on a monthly basis on the last business day of the month in which distributions required in (a) of this subsection are due. Moneys in the local sales and use tax account may be withdrawn only for:
(a) Distribution to counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, regional transportation investment districts, and transportation benefit districts imposing a sales and use tax; and
(2) All administrative provisions in chapters
82.03, 82.08, 82.12, and
82.32 RCW, as they now exist or may hereafter be amended, insofar as they are applicable to state sales and use taxes, are applicable to taxes imposed pursuant to this chapter.
(3) Counties, cities, transportation authorities, public facilities districts, and regional transportation investment districts may not conduct independent sales or use tax audits of sellers registered under the streamlined sales tax agreement.
(4) Except as provided in RCW
43.08.190 and subsection (5) of this section, all earnings of investments of balances in the local sales and use tax account must be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, regional transportation investment districts, and transportation benefit districts monthly.
(5) Beginning January 1, 2013, the state treasurer must determine the amount of earnings on investments that would have been credited to the local sales and use tax account if the collections had been deposited in the account over the prior month. When distributions are made under subsection (1)(a) of this section, the state treasurer must transfer this amount from the state general fund to the local sales and use tax account and must distribute such sums to the counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, regional transportation investment districts, and transportation benefit districts.
Sec. 238. RCW
82.14.070 and 2003 c 168 s 202 are each amended to read as follows:
It is the intent of this chapter that any local sales and use tax adopted pursuant to this chapter be identical to the state sales and use tax, unless otherwise prohibited by federal law, and with other local sales and use taxes adopted pursuant to this chapter. It is further the intent of this chapter that the local sales and use tax shall be imposed upon an individual taxable event simultaneously with the imposition of the state sales or use tax upon the same taxable event. The rule making powers of the state department of ((
revenue))
taxation contained in RCW
82.08.060 and
82.32.300 shall be applicable to this chapter. The department shall, as soon as practicable, and with the assistance of the appropriate associations of county prosecutors and city attorneys, draft a model resolution and ordinance.
Sec. 239. RCW
82.14.370 and 2012 c 225 s 4 are each amended to read as follows:
(1) The legislative authority of a rural county may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax may not exceed 0.09 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax, except that for rural counties with population densities between sixty and one hundred persons per square mile, the rate shall not exceed 0.04 percent before January 1, 2000.
(2) The tax imposed under subsection (1) of this section must be deducted from the amount of tax otherwise required to be collected or paid over to the department of ((
revenue))
taxation under chapter
82.08 or
82.12 RCW. The department of ((
revenue))
taxation must perform the collection of such taxes on behalf of the county at no cost to the county.
(3)(a) Moneys collected under this section may only be used to finance public facilities serving economic development purposes in rural counties and finance personnel in economic development offices. The public facility must be listed as an item in the officially adopted county overall economic development plan, or the economic development section of the county's comprehensive plan, or the comprehensive plan of a city or town located within the county for those counties planning under RCW
36.70A.040. For those counties that do not have an adopted overall economic development plan and do not plan under the growth management act, the public facility must be listed in the county's capital facilities plan or the capital facilities plan of a city or town located within the county.
(b) In implementing this section, the county must consult with cities, towns, and port districts located within the county and the associate development organization serving the county to ensure that the expenditure meets the goals of chapter 130, Laws of 2004 and the requirements of (a) of this subsection. Each county collecting money under this section must report, as follows, to the office of the state auditor, within one hundred fifty days after the close of each fiscal year: (i) A list of new projects begun during the fiscal year, showing that the county has used the funds for those projects consistent with the goals of chapter 130, Laws of 2004 and the requirements of (a) of this subsection; and (ii) expenditures during the fiscal year on projects begun in a previous year. Any projects financed prior to June 10, 2004, from the proceeds of obligations to which the tax imposed under subsection (1) of this section has been pledged may not be deemed to be new projects under this subsection. No new projects funded with money collected under this section may be for justice system facilities.
(c) The definitions in this section apply throughout this section.
(i) "Public facilities" means bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical facilities, natural gas facilities, research, testing, training, and incubation facilities in innovation partnership zones designated under RCW
43.330.270, buildings, structures, telecommunications infrastructure, transportation infrastructure, or commercial infrastructure, and port facilities in the state of Washington.
(ii) "Economic development purposes" means those purposes which facilitate the creation or retention of businesses and jobs in a county.
(iii) "Economic development office" means an office of a county, port districts, or an associate development organization as defined in RCW
43.330.010, which promotes economic development purposes within the county.
(4) No tax may be collected under this section before July 1, 1998.
(a) Except as provided in (b) of this subsection, no tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.
(b) For counties imposing the tax at the rate of 0.09 percent before August 1, 2009, the tax expires on the date that is twenty-five years after the date that the 0.09 percent tax rate was first imposed by that county.
(5) For purposes of this section, "rural county" means a county with a population density of less than one hundred persons per square mile or a county smaller than two hundred twenty-five square miles as determined by the office of financial management and published each year by the department for the period July 1st to June 30th.
Sec. 240. RCW
82.14.390 and 2017 c 164 s 1 are each amended to read as follows:
(1) Except as provided in subsection (7) of this section, the governing body of a public facilities district (a) created before July 31, 2002, under chapter
35.57 or
36.100 RCW that commenced construction of at least one new regional center, or improvement or rehabilitation of an existing new regional center, before January 1, 2004; (b) created before July 1, 2006, under chapter
35.57 RCW in a county or counties in which there are no other public facilities districts on June 7, 2006, and in which the total population in the public facilities district is greater than ninety thousand that commenced construction of a new regional center before February 1, 2007; (c) created under the authority of RCW
35.57.010(1)(d); or (d) created before September 1, 2007, under chapter
35.57 or
36.100 RCW, in a county or counties in which there are no other public facilities districts on July 22, 2007, and in which the total population in the public facilities district is greater than seventy thousand, that commenced construction of a new regional center before January 1, 2009, or before January 1, 2011, in the case of a new regional center in a county designated by the president as a disaster area in December 2007, may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the public facilities district. The rate of tax may not exceed 0.033 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.
(2)(a) The governing body of a public facilities district imposing a sales and use tax under the authority of this section may increase the rate of tax up to 0.037 percent if, within three fiscal years of July 1, 2008, the department determines that, as a result of RCW
82.14.490 and the chapter 6, Laws of 2007 amendments to RCW
82.14.020, a public facilities district's sales and use tax collections for fiscal years after July 1, 2008, have been reduced by a net loss of at least 0.50 percent from the fiscal year before July 1, 2008. The fiscal year in which this section becomes effective is the first fiscal year after July 1, 2008.
(b) The department must determine sales and use tax collection net losses under this section as provided in RCW
82.14.500 (2) and (3). The department must provide written notice of its determinations to public facilities districts. Determinations by the department of a public facilities district's sales and use tax collection net losses as a result of RCW
82.14.490 and the chapter 6, Laws of 2007 amendments to RCW
82.14.020 are final and not appealable.
(c) A public facilities district may increase its rate of tax after it has received written notice from the department as provided in (b) of this subsection. The increase in the rate of tax must be made in 0.001 percent increments and must be the least amount necessary to mitigate the net loss in sales and use tax collections as a result of RCW
82.14.490 and the chapter 6, Laws of 2007 amendments to RCW
82.14.020. The increase in the rate of tax is subject to RCW
82.14.055.
(3) The tax imposed under subsection (1) of this section must be deducted from the amount of tax otherwise required to be collected or paid over to the department of ((
revenue))
taxation under chapter
82.08 or
82.12 RCW. The department of ((
revenue))
taxation must perform the collection of such taxes on behalf of the county at no cost to the public facilities district. During the 2011-2013 fiscal biennium, distributions by the state to a public facilities district based on the additional rate authorized in subsection (2) of this section must be reduced by 3.4 percent.
(4) No tax may be collected under this section before August 1, 2000. The tax imposed in this section expires when bonds issued to finance or refinance the construction, improvement, rehabilitation, or expansion of the regional center and related parking facilities are retired, but not more than forty years after the tax is first collected.
(5) Moneys collected under this section may only be used for the purposes set forth in RCW
35.57.020 and must be matched with an amount from other public or private sources equal to thirty-three percent of the amount collected under this section; however, amounts generated from nonvoter approved taxes authorized under chapter
35.57 RCW or nonvoter approved taxes authorized under chapter
36.100 RCW do not constitute a public or private source. For the purpose of this section, public or private sources includes, but is not limited to cash or in-kind contributions used in all phases of the development or improvement of the regional center, land that is donated and used for the siting of the regional center, cash or in-kind contributions from public or private foundations, or amounts attributed to private sector partners as part of a public and private partnership agreement negotiated by the public facilities district.
(6) The combined total tax levied under this section may not be greater than 0.037 percent. If both a public facilities district created under chapter
35.57 RCW and a public facilities district created under chapter
36.100 RCW impose a tax under this section, the tax imposed by a public facilities district created under chapter
35.57 RCW must be credited against the tax imposed by a public facilities district created under chapter
36.100 RCW.
(7) A public facilities district created under chapter
36.100 RCW is not eligible to impose the tax under this section if the legislative authority of the county where the public facilities district is located has imposed a sales and use tax under RCW
82.14.0485 or
82.14.0494.
Sec. 241. RCW
82.14.400 and 2000 c 240 s 1 are each amended to read as follows:
(1) Upon the joint request of a metropolitan park district, a city with a population of more than one hundred fifty thousand, and a county legislative authority in a county with a national park and a population of more than five hundred thousand and less than one million five hundred thousand, the county shall submit an authorizing proposition to the county voters, fixing and imposing a sales and use tax in accordance with this chapter for the purposes designated in subsection (4) of this section and identified in the joint request. Such proposition must be placed on a ballot for a special or general election to be held no later than one year after the date of the joint request.
(2) The proposition is approved if it receives the votes of a majority of those voting on the proposition.
(3) The tax authorized in this section is in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall equal no more than one-tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.
(4) Moneys received from any tax imposed under this section shall be used solely for the purpose of providing funds for:
(a) Costs associated with financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, reequipping, or improvement of zoo, aquarium, and wildlife preservation and display facilities that are currently accredited by the American zoo and aquarium association; or
(b) Those costs associated with (a) of this subsection and costs related to parks located within a county described in subsection (1) of this section.
(5) The department of ((
revenue))
taxation shall perform the collection of such taxes on behalf of the county at no cost to the county. In lieu of the charge for the administration and collection of local sales and use taxes under RCW
82.14.050 from which the county is exempt under this subsection (5), a percentage of the tax revenues authorized by this section equal to one-half of the maximum percentage provided in RCW
82.14.050 shall be transferred annually to the department of ((
community, trade, and economic development))
commerce, or its successor agency, from the funds allocated under subsection (6)(b) of this section for a period of twelve years from the first date of distribution of funds under subsection (6)(b) of this section. The department of ((
community, trade, and economic development))
commerce, or its successor agency, shall use funds transferred to it pursuant to this subsection (5) to provide, operate, and maintain community-based housing under chapter
43.185 RCW for persons who are mentally ill.
(6) If the joint request and the authorizing proposition include provisions for funding those costs included within subsection (4)(b) of this section, the tax revenues authorized by this section shall be allocated annually as follows:
(a) Fifty percent to the zoo and aquarium advisory authority; and
(b) Fifty percent to be distributed on a per capita basis as set out in the most recent population figures for unincorporated and incorporated areas only within that county, as determined by the office of financial management, solely for parks, as follows: To any metropolitan park district, to cities and towns not contained within a metropolitan park district, and the remainder to the county. Moneys received under this subsection (6)(b) by a county may not be used to replace or supplant existing per capita funding.
(7) Funds shall be distributed annually by the county treasurer to the county, and cities and towns located within the county, in the manner set out in subsection (6)(b) of this section.
(8) Prior to expenditure of any funds received by the county under subsection (6)(b) of this section, the county shall establish a process which considers needs throughout the unincorporated areas of the county in consultation with community advisory councils established by ordinance.
(9) By December 31, 2005, and thereafter, the county or any city with a population greater than eighty thousand must provide at least one dollar match for every two dollars received under this section.
(10) Properties subject to a memorandum of agreement between the federal bureau of land management, the advisory council on historic preservation, and the Washington state historic preservation officer have priority for funding from money received under subsection (6)(b) of this section for implementation of the stipulations in the memorandum of agreement.
(a) At least one hundred thousand dollars of the first four years of allocations under subsection (6)(b) of this section, to be matched by the county or city with one dollar for every two dollars received, shall be used to implement the stipulations of the memorandum of agreement and for other historical, archaeological, architectural, and cultural preservation and improvements related to the properties.
(b) The amount in (a) of this subsection shall come equally from the allocations to the county and to the city in which the properties are located, unless otherwise agreed to by the county and the city.
(c) The amount in (a) of this subsection shall not be construed to displace or be offered in lieu of any lease payment from a county or city to the state for the properties in question.
Sec. 242. RCW
82.14.415 and 2016 c 5 s 1 are each amended to read as follows:
(1) The legislative authority of any city that is located in a county with a population greater than six hundred thousand that annexes an area consistent with its comprehensive plan required by chapter
36.70A RCW may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and is collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the city. The tax may only be imposed by a city if:
(a) The city has commenced annexation of an area having a population of at least ten thousand people, or four thousand in the case of a city described under subsection (3)(a)(i) of this section, prior to January 1, 2015; and
(b) The city legislative authority determines by resolution or ordinance that the projected cost to provide municipal services to the annexation area exceeds the projected general revenue that the city would otherwise receive from the annexation area on an annual basis.
(2) The tax authorized under this section is a credit against the state tax under chapter
82.08 or
82.12 RCW. The department of ((
revenue))
taxation must perform the collection of such taxes on behalf of the city at no cost to the city and must remit the tax to the city as provided in RCW
82.14.060.
(3)(a) Except as provided in (b) of this subsection, the maximum rate of tax any city may impose under this section is:
(i) 0.1 percent for each annexed area in which the population is greater than ten thousand and less than twenty thousand. The ten thousand population threshold in this subsection (3)(a)(i) is four thousand for a city with a population between one hundred fifteen thousand and one hundred forty thousand and located within a county with a population over one million five hundred thousand; and
(ii) 0.2 percent for an annexed area in which the population is greater than twenty thousand.
(b) Beginning July 1, 2011, the maximum rate of tax imposed under this section is 0.85 percent for an annexed area in which the population is greater than sixteen thousand if the annexed area was, prior to November 1, 2008, officially designated as a potential annexation area by more than one city, one of which has a population greater than four hundred thousand.
(4)(a) Except as provided in (b) of this subsection, the maximum cumulative rate of tax a city may impose under subsection (3)(a) of this section is 0.2 percent for the total number of annexed areas the city may annex.
(b) The maximum cumulative rate of tax a city may impose under subsection (3)(a) of this section is 0.3 percent, beginning July 1, 2011, if the city commenced annexation of an area, prior to January 1, 2010, that would have otherwise allowed the city to increase the rate of tax imposed under this section absent the rate limit imposed in (a) of this subsection.
(c) The maximum cumulative rate of tax a city may impose under subsection (3)(b) of this section is 0.85 percent for the single annexed area the city may annex and the amount of tax distributed to a city under subsection (3)(b) of this section may not exceed seven million seven hundred twenty-five thousand dollars per fiscal year.
(5)(a) Except as provided in (b) of this subsection, the tax imposed by this section may only be imposed at the beginning of a fiscal year and may continue for no more than ten years from the date that each increment of the tax is first imposed. Tax rate increases due to additional annexed areas are effective on July 1st of the fiscal year following the fiscal year in which the annexation occurred, provided that notice is given to the department as set forth in subsection (9) of this section.
(b) The tax imposed under subsection (3)(b) of this section may only be imposed at the beginning of a fiscal year and may continue for no more than six years from the date that each increment of the tax is first imposed.
(6) All revenue collected under this section may be used solely to provide, maintain, and operate municipal services for the annexation area.
(7) The revenues from the tax authorized in this section may not exceed that which the city deems necessary to generate revenue equal to the difference between the city's cost to provide, maintain, and operate municipal services for the annexation area and the general revenues that the cities would otherwise expect to receive from the annexation during a year. If the revenues from the tax authorized in this section and the revenues from the annexation area exceed the costs to the city to provide, maintain, and operate municipal services for the annexation area during a given year, the city must notify the department and the tax distributions authorized in this section must be suspended for the remainder of the year.
(8) No tax may be imposed under this section before July 1, 2007. Before imposing a tax under this section, the legislative authority of a city must adopt an ordinance that includes the following:
(a) A certification that the amount needed to provide municipal services to the annexed area reflects the city's true and actual costs;
(b) The rate of tax under this section that is imposed within the city; and
(c) The threshold amount for the first fiscal year following the annexation and passage of the ordinance.
(9) The tax must cease to be distributed to the city for the remainder of the fiscal year once the threshold amount has been reached. No later than March 1st of each year, the city must provide the department with a certification of the city's true and actual costs to provide municipal services to the annexed area, a new threshold amount for the next fiscal year, and notice of any applicable tax rate changes. Distributions of tax under this section must begin again on July 1st of the next fiscal year and continue until the new threshold amount has been reached or June 30th, whichever is sooner. Any revenue generated by the tax in excess of the threshold amount belongs to the state of Washington. Any amount resulting from the threshold amount less the total fiscal year distributions, as of June 30th, may not be carried forward to the next fiscal year.
(10) The tax must cease to be distributed to a city imposing the tax under subsection (3)(b) of this section for the remainder of the fiscal year, if the total distributions to the city imposing the tax exceed seven million seven hundred twenty-five thousand dollars for the fiscal year. A city may not impose tax under subsection (3)(b) of this section unless the annexation is approved by a vote of the people residing within the annexed area. A city may not impose tax under subsection (3)(b) of this section if it provides sewer service in the annexed area.
(11) The resident population of the annexation area must be determined in accordance with chapter
35.13 or
35A.14 RCW.
(12) The following definitions apply throughout this section unless the context clearly requires otherwise:
(a) "Annexation area" means an area that has been annexed to a city under chapter
35.13 or
35A.14 RCW. "Annexation area" includes all territory described in the city resolution.
(b) "Commenced annexation" means the initiation of annexation proceedings has taken place under the direct petition method or the election method under chapter
35.13 or
35A.14 RCW.
(c) "Department" means the department of ((revenue))taxation.
(d) "Municipal services" means those services customarily provided to the public by city government.
(e) "Fiscal year" means the year beginning July 1st and ending the following June 30th.
(f) "Potential annexation area" means one or more geographic areas that a city has officially designated for potential future annexation, as part of its comprehensive plan adoption process under the state growth management act, chapter
36.70A RCW.
(g) "Threshold amount" means the maximum amount of tax distributions as determined by the city in accordance with subsection (7) of this section that the department must distribute to the city generated from the tax imposed under this section in a fiscal year.
Sec. 243. RCW
82.14.430 and 2014 c 140 s 24 are each amended to read as follows:
(1) If approved by the majority of the voters within its boundaries voting on the ballot proposition, a regional transportation investment district may impose a sales and use tax of up to 0.1 percent of the selling price or value of the article used in the case of a use tax. The tax authorized by this section is in addition to the tax authorized by RCW
82.14.030 and must be collected from those persons who are taxable by the state under chapters
82.08 and
82.12 RCW upon the occurrence of any taxable event within the taxing district. Motor vehicles are exempt from the sales and use tax imposed under this subsection.
(2) If approved by the majority of the voters within its boundaries voting on the ballot proposition, a regional transportation investment district may impose a tax on the use of a motor vehicle within a regional transportation investment district. The tax applies to those persons who reside within the regional transportation investment district. The rate of the tax may not exceed 0.1 percent of the value of the motor vehicle. The tax authorized by this subsection is in addition to the tax authorized under RCW
82.14.030 and must be imposed and collected at the time a taxable event under RCW
82.08.020(1) or
82.12.020 takes place. All revenue received under this subsection must be deposited in the local sales and use tax account and distributed to the regional transportation investment district according to RCW
82.14.050. The following provisions apply to the use tax in this subsection:
(a) Where persons are taxable under chapter
82.08 RCW, the seller must collect the use tax from the buyer using the collection provisions of RCW
82.08.050.
(b) Where persons are taxable under chapter
82.12 RCW, the use tax must be collected using the provisions of RCW
82.12.045.
(c) "Motor vehicle" has the meaning provided in RCW
46.04.320, but does not include:
(i) Farm tractors or farm vehicles as defined in RCW
46.04.180 and
46.04.181, unless the farm tractor or farm vehicle is for use in the production of marijuana;
(ii) Off-road vehicles as defined in RCW
46.04.365;
(iii) Nonhighway vehicles as defined in RCW
46.09.310; and
(iv) Snowmobiles as defined in RCW
46.04.546.
(d) "Person" has the meaning given in RCW
82.04.030.
(e) The value of a motor vehicle must be determined under RCW
82.12.010.
(f) Except as specifically stated in this subsection (2), chapters
82.12 and
82.32 RCW apply to the use tax. The use tax is a local tax imposed under the authority of chapter
82.14 RCW, and chapter
82.14 RCW applies fully to the use tax.
(3) In addition to fulfilling the notice requirements under RCW
82.14.055(1), and unless waived by the department, a regional transportation investment district must provide the department of ((
revenue))
taxation with digital mapping and legal descriptions of areas in which the tax will be collected.
Sec. 244. RCW
82.14A.020 and 1972 ex.s. c 134 s 3 are each amended to read as follows:
For purposes of RCW
82.14A.010, the state department of ((
revenue))
taxation is hereby authorized and directed to promulgate, pursuant to the provisions of chapter
34.05 RCW, rules establishing uniform methods of division of gross income of the business of a single taxpayer between those cities, towns and unincorporated areas in which such taxpayer has a place of business.
Sec. 245. RCW
82.16.0495 and 2001 c 214 s 11 are each amended to read as follows:
(1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
(a) "Direct service industrial customer" means a person who is an industrial customer that contracts for the purchase of power from the Bonneville Power Administration for direct consumption as of May 8, 2001. "Direct service industrial customer" includes a person who is a subsidiary that is more than fifty percent owned by a direct service industrial customer and who receives power from the Bonneville Power Administration pursuant to the parent's contract for power.
(b) "Facility" means a gas turbine electrical generation facility that does not exist on May 8, 2001.
(c) "Average annual employment" means the total employment in this state for a calendar year at the direct service industrial customer's location where electricity from the facility will be consumed.
(2) Effective July 1, 2001, a credit is allowed against the tax due under this chapter on sales of electricity made from a facility to a direct service industrial customer if the contract for sale of electricity to a direct service industrial customer contains the following terms:
(a) Sales of electricity from the facility to the direct service industrial customer will be made for ten consecutive years or more;
(b) The price charged for the electricity will be reduced by an amount equal to the tax credit; and
(c) Disallowance of all or part of the credit under subsection (5) of this section is a breach of contract and the damages to be paid by the direct service industrial customer to the facility are the amount of tax credit disallowed.
(3) The credit is equal to the gross proceeds from the sale of the electricity to a direct service industrial customer multiplied by the rate in effect at the time of the sale for the public utility tax on light and power businesses under RCW
82.16.020. The credit may be used each reporting period for sixty months following the first month electricity is sold from a facility to a direct service industrial customer. Credit under this section is limited to the amount of tax imposed under this chapter. Refunds shall not be given in place of credits and credits may not be carried over to subsequent calendar years.
(4) Application for credit shall be made before the first sale of electricity from a facility to a direct service industrial customer. The application shall be in a form and manner prescribed by the department and shall include but is not limited to information regarding the location of the facility, identification of the direct service industrial customer who will receive electricity from the facility, the projected date of the first sale of electricity to a direct service industrial customer, the date construction is projected to begin or did begin, and the average annual employment in the state of the direct service industrial customer who will receive electricity from the facility for the six calendar years immediately preceding the year in which the application is made. A copy of the contract for sale of electricity must be attached to the application. The department shall rule on the application within thirty days of receipt.
(5) All or part of the credit shall be disallowed and must be paid if the average of the direct service industrial customer's average annual employment for the five calendar years subsequent to the calendar year containing the first month of sale of electricity from a facility to a direct service industrial customer is less than the six-year average annual employment stated on the application for credit under this section. The direct service industrial customer shall certify to the department and to the facility by June 1st of the sixth calendar year following the calendar year in which the month of first sale occurs the average annual employment for each of the five prior calendar years. All or part of the credit that shall be disallowed and must be paid is commensurate with the decrease in the five-year average of average annual employment as follows:
Decrease in Average Annual Employment Over Five-Year Period | % of Credit to be Paid |
Less than 10% | 10% |
10% or more but less than 25% | 25% |
25% or more but less than 50% | 50% |
50% or more but less than 75% | 75% |
75% or more | 100% |
(6)(a) Payments on credit that is disallowed shall begin in the sixth calendar year following the calendar year in which the month following the first month of sale of electricity from a facility to a direct service industrial customer occurs. The first payment will be due on or before December 31st with subsequent annual payments due on or before December 31st of the following four years according to the schedule in this subsection.
Payment Year | % of Credit to be Paid |
1 | 10% |
2 | 15% |
3 | 20% |
4 | 25% |
5 | 30% |
(b) The department may authorize an accelerated payment schedule upon request of the taxpayer.
(c) Interest shall not be charged on the credit that is disallowed for the sixty-month period the credit may be taken, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed. The debt for credit that is disallowed and must be paid will not be extinguished by insolvency or other failure of the taxpayer. Transfer of ownership of the facility does not affect eligibility for this credit. However, the credit is available to the successor only if the eligibility conditions of this section are met.
(7) The employment security department shall make, and certify to the department of ((revenue))taxation, all determinations of employment under this section as requested by the department.
Sec. 246. RCW
82.16.0497 and 2006 c 213 s 1 are each amended to read as follows:
(1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
(a) "Base credit" means the maximum amount of credit against the tax imposed by this chapter that each light and power business or gas distribution business may take each fiscal year as calculated by the department. The base credit is equal to the proportionate share that the total grants received by each light and power business or gas distribution business in the prior fiscal year bears to the total grants received by all light and power businesses and gas distribution businesses in the prior fiscal year multiplied by five million five hundred thousand dollars for fiscal year 2007, and two million five hundred thousand dollars for all other fiscal years before and after fiscal year 2007.
(b) "Billing discount" means a reduction in the amount charged for providing service to qualifying persons in Washington made by a light and power business or a gas distribution business. Billing discount does not include grants received by the light and power business or a gas distribution business.
(c) "Grant" means funds provided to a light and power business or gas distribution business by the department of ((community, trade, and economic development))commerce or by a qualifying organization.
(d) "Low-income home energy assistance program" means energy assistance programs for low-income households as defined on December 31, 2000, in the low-income home energy assistance act of 1981 as amended August 1, 1999, 42 U.S.C. Sec. 8623 et seq.
(e) "Qualifying person" means a Washington resident who applies for assistance and qualifies for a grant regardless of whether that person receives a grant.
(f) "Qualifying contribution" means money given by a light and power business or a gas distribution business to a qualifying organization, exclusive of money received in the prior fiscal year from its customers for the purpose of assisting other customers.
(g) "Qualifying organization" means an entity that has a contractual agreement with the department of ((community, trade, and economic development))commerce to administer in a specified service area low-income home energy assistance funds received from the federal government and such other funds that may be received by the entity.
(2) Subject to the limitations in this section, a light and power business or a gas distribution business may take a credit each fiscal year against the tax imposed under this chapter.
(a)(i) A credit may be taken for qualifying contributions if the dollar amount of qualifying contributions for the fiscal year in which the tax credit is taken is greater than one hundred twenty-five percent of the dollar amount of qualifying contributions given in fiscal year 2000.
(ii) If no qualifying contributions were given in fiscal year 2000, a credit shall be allowed for the first fiscal year that qualifying contributions are given. Thereafter, credit shall be allowed if the qualifying contributions given exceed one hundred twenty-five percent of qualifying contributions given in the first fiscal year.
(iii) The amount of credit shall be fifty percent of the dollar amount of qualifying contributions given in the fiscal year in which the tax credit is taken.
(b)(i) A credit may be taken for billing discounts if the dollar amount of billing discounts for the fiscal year in which the tax credit is taken is greater than one hundred twenty-five percent of the dollar amount of billing discounts given in fiscal year 2000.
(ii) If no billing discounts were given in fiscal year 2000, a credit shall be allowed in the first fiscal year that billing discounts are given. Thereafter, credit shall be allowed if the dollar amount of billing discounts given exceeds one hundred twenty-five percent of billing discounts given in the first fiscal year.
(iii) The amount of credit shall be fifty percent of the dollar amount of the billing discounts given in the fiscal year in which the tax credit is taken.
(c) The total amount of credit that may be taken for qualifying contributions and billing discounts in a fiscal year is limited to the base credit for the same fiscal year.
(3)(a)(i) Except as provided in (a)(ii) of this subsection, the total amount of credit, statewide, that may be taken in any fiscal year shall not exceed two million five hundred thousand dollars.
(ii) The total amount of credit, statewide, that may be taken in fiscal year 2007 shall not exceed five million five hundred thousand dollars.
(b) By May 1st of each year starting in 2002, the department of ((community, trade, and economic development))commerce shall notify the department of ((revenue))taxation in writing of the grants received in the current fiscal year by each light and power business and gas distribution business.
(4)(a) Not later than June 1st of each year beginning in 2002, the department shall publish the base credit for each light and power business and gas distribution business for the next fiscal year.
(b) Not later than July 1st of each year beginning in 2002, application for credit must by made to the department including but not limited to the following information: Billing discounts given by the applicant in fiscal year 2000; qualifying contributions given by the applicant in the prior fiscal year; the amount of money received in the prior fiscal year from customers for the purpose of assisting other customers; the base credit for the next fiscal year for the applicant; the qualifying contributions anticipated to be given in the next fiscal year; and billing discounts anticipated to be given in the next fiscal year. No credit under this section will be allowed to a light and power business or gas distribution business that does not file the application by July 1st.
(c) Not later than August 1st of each year beginning in 2002, the department shall notify each applicant of the amount of credit that may be taken in that fiscal year.
(d) The balance of base credits not used by other light and power businesses and gas distribution businesses shall be ratably distributed to applicants under the formula in subsection (1)(a) of this section. The total amount of credit that may be taken by an applicant is the base credit plus any ratable portion of unused base credit.
(5) The credit taken under this section is limited to the amount of tax imposed under this chapter for the fiscal year. The credit must be claimed in the fiscal year in which the billing reduction is made. Any unused credit expires. Refunds shall not be given in place of credits.
(6) No credit may be taken for billing discounts made before July 1, 2001. Within two weeks of May 8, 2001, the department of ((community, trade, and economic development))commerce shall notify the department of ((revenue))
Sec. 247. RCW
82.16.055 and 1980 c 149 s 3 are each amended to read as follows:
(1) In computing tax under this chapter there shall be deducted from the gross income:
(a) An amount equal to the cost of production at the plant for consumption within the state of Washington of:
(i) Electrical energy produced or generated from cogeneration as defined in RCW
82.35.020; and
(ii) Electrical energy or gas produced or generated from renewable energy resources such as solar energy, wind energy, hydroelectric energy, geothermal energy, wood, wood wastes, municipal wastes, agricultural products and wastes, and end-use waste heat; and
(b) Those amounts expended to improve consumers' efficiency of energy end use or to otherwise reduce the use of electrical energy or gas by the consumer.
(2) This section applies only to new facilities for the production or generation of energy from cogeneration or renewable energy resources or measures to improve the efficiency of energy end use on which construction or installation is begun after June 12, 1980, and before January 1, 1990.
(3) Deductions under subsection (1)(a) of this section shall be allowed for a period not to exceed thirty years after the project is placed in operation.
(4) Measures or projects encouraged under this section shall at the time they are placed in service be reasonably expected to save, produce, or generate energy at a total incremental system cost per unit of energy delivered to end use which is less than or equal to the incremental system cost per unit of energy delivered to end use from similarly available conventional energy resources which utilize nuclear energy or fossil fuels and which the gas or electric utility could acquire to meet energy demand in the same time period.
(5) The department of ((revenue))taxation, after consultation with the utilities and transportation commission in the case of investor-owned utilities and the governing bodies of locally regulated utilities, shall determine the eligibility of individual projects and measures for deductions under this section.
Sec. 248. RCW
82.16.120 and 2017 3rd sp.s. c 36 s 3 are each amended to read as follows:
(1)(a) Any individual, business, local governmental entity, not in the light and power business or in the gas distribution business, or a participant in a community solar project may apply to the light and power business serving the situs of the system, each fiscal year beginning on July 1, 2005, and ending June 30, 2017, for an investment cost recovery incentive for each kilowatt-hour from a customer-generated electricity renewable energy system.
(b) In the case of a community solar project as defined in RCW
82.16.110(2)(a)(i), the administrator must apply for the investment cost recovery incentive on behalf of each of the other owners.
(c) In the case of a community solar project as defined in RCW
82.16.110(2)(a)(iii), the company owning the community solar project must apply for the investment cost recovery incentive on behalf of each member of the company.
(2)(a) Before submitting for the first time the application for the incentive allowed under subsection (4) of this section, the applicant must submit to the department of ((
revenue))
taxation and to the climate and rural energy development center at the Washington State University, established under RCW
28B.30.642, a certification in a form and manner prescribed by the department that includes, but is not limited to, the information described in (c) of this subsection.
(b) The department may not accept certifications submitted to the department under (a) of this subsection after September 30, 2017.
(c) The certification must include:
(i) The name and address of the applicant and location of the renewable energy system.
(A) If the applicant is an administrator of a community solar project as defined in RCW
82.16.110(2)(a)(i), the certification must also include the name and address of each of the owners of the community solar project.
(B) If the applicant is a company that owns a community solar project as defined in RCW
82.16.110(2)(a)(iii), the certification must also include the name and address of each member of the company;
(ii) The applicant's tax registration number;
(iii) That the electricity produced by the applicant meets the definition of "customer-generated electricity" and that the renewable energy system produces electricity with:
(A) Any solar inverters and solar modules manufactured in Washington state;
(B) A wind generator powered by blades manufactured in Washington state;
(C) A solar inverter manufactured in Washington state;
(D) A solar module manufactured in Washington state;
(E) A stirling converter manufactured in Washington state; or
(F) Solar or wind equipment manufactured outside of Washington state;
(iv) That the electricity can be transformed or transmitted for entry into or operation in parallel with electricity transmission and distribution systems; and
(v) The date that the renewable energy system received its final electrical inspection from the applicable local jurisdiction.
(d) Within thirty days of receipt of the certification the department of ((
revenue))
taxation must notify the applicant by mail, or electronically as provided in RCW
82.32.135, whether the renewable energy system qualifies for an incentive under this section. The department may consult with the climate and rural energy development center to determine eligibility for the incentive. System certifications and the information contained therein are not confidential tax information under RCW
82.32.330 and are subject to disclosure.
(3)(a) By August 1st of each year through August 1, 2017, the application for the incentive must be made to the light and power business serving the situs of the system by certification in a form and manner prescribed by the department that includes, but is not limited to, the following information:
(i) The name and address of the applicant and location of the renewable energy system.
(A) If the applicant is an administrator of a community solar project as defined in RCW
82.16.110(2)(a)(i), the application must also include the name and address of each of the owners of the community solar project.
(B) If the applicant is a company that owns a community solar project as defined in RCW
82.16.110(2)(a)(iii), the application must also include the name and address of each member of the company;
(ii) The applicant's tax registration number;
(iii) The date of the notification from the department of ((revenue))taxation stating that the renewable energy system is eligible for the incentives under this section; and
(iv) A statement of the amount of kilowatt-hours generated by the renewable energy system in the prior fiscal year.
(b) Within sixty days of receipt of the incentive certification the light and power business serving the situs of the system must notify the applicant in writing whether the incentive payment will be authorized or denied. The business may consult with the climate and rural energy development center to determine eligibility for the incentive payment. Incentive certifications and the information contained therein are not confidential tax information under RCW
82.32.330 and are subject to disclosure.
(c)(i) Persons, administrators of community solar projects, and companies receiving incentive payments must keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of incentive applied for and received. Such records must be open for examination at any time upon notice by the light and power business that made the payment or by the department. If upon examination of any records or from other information obtained by the business or department it appears that an incentive has been paid in an amount that exceeds the correct amount of incentive payable, the business may assess against the person for the amount found to have been paid in excess of the correct amount of incentive payable and must add thereto interest on the amount. Interest is assessed in the manner that the department assesses interest upon delinquent tax under RCW
82.32.050.
(ii) If it appears that the amount of incentive paid is less than the correct amount of incentive payable the business may authorize additional payment.
(4) Except for community solar projects, the investment cost recovery incentive may be paid fifteen cents per economic development kilowatt-hour unless requests exceed the amount authorized for credit to the participating light and power business. For community solar projects, the investment cost recovery incentive may be paid thirty cents per economic development kilowatt-hour unless requests exceed the amount authorized for credit to the participating light and power business. For the purposes of this section, the rate paid for the investment cost recovery incentive may be multiplied by the following factors:
(a) For customer-generated electricity produced using solar modules manufactured in Washington state or a solar stirling converter manufactured in Washington state, two and four-tenths;
(b) For customer-generated electricity produced using a solar or a wind generator equipped with an inverter manufactured in Washington state, one and two-tenths;
(c) For customer-generated electricity produced using an anaerobic digester, or by other solar equipment or using a wind generator equipped with blades manufactured in Washington state, one; and
(d) For all other customer-generated electricity produced by wind, eight-tenths.
(5)(a) No individual, household, business, or local governmental entity is eligible for incentives provided under subsection (4) of this section for more than five thousand dollars per year.
(b) Except as provided in (c) through (e) of this subsection (5), each applicant in a community solar project is eligible for up to five thousand dollars per year.
(c) Where the applicant is an administrator of a community solar project as defined in RCW
82.16.110(2)(a)(i), each owner is eligible for an incentive but only in proportion to the ownership share of the project, up to five thousand dollars per year.
(d) Where the applicant is a company owning a community solar project that has applied for an investment cost recovery incentive on behalf of its members, each member of the company is eligible for an incentive that would otherwise belong to the company but only in proportion to each ownership share of the company, up to five thousand dollars per year. The company itself is not eligible for incentives under this section.
(e) In the case of a utility-owned community solar project, each ratepayer that contributes to the project is eligible for an incentive in proportion to the contribution, up to five thousand dollars per year.
(6) The climate and rural energy development center at Washington State University energy program may establish guidelines and standards for technologies that are identified as Washington manufactured and therefore most beneficial to the state's environment.
(7) The environmental attributes of the renewable energy system belong to the applicant, and do not transfer to the state or the light and power business upon receipt of the investment cost recovery incentive.
(8) No incentive may be paid under this section for kilowatt-hours generated before July 1, 2005, or after June 30, 2017, except as provided in subsections (10) through (12) of this section.
(9) Beginning October 1, 2017, program management, technical review, and tracking responsibilities of the department under this section are transferred to the Washington State University extension energy program. At the earliest date practicable and no later than September 30, 2017, the department must transfer all records necessary for the administration of the remaining incentive payments due under this section to the Washington State University extension energy program.
(10) Participants in the renewable energy investment cost recovery program under this section will continue to receive payments for electricity produced through June 30, 2020, at the same rates their utility paid to participants for electricity produced between July 1, 2015, and June 30, 2016.
(11) In order to continue to receive the incentive payment allowed under subsection (4) of this section, a person or community solar project administrator who has, by September 30, 2017, submitted a complete certification to the department under subsection (2) of this section must apply to the Washington State University extension energy program by April 30, 2018, for a certification authorizing the utility serving the situs of the renewable energy system to annually remit the incentive payment allowed under subsection (4) of this section for each kilowatt-hour generated by the renewable energy system through June 30, 2020.
(12)(a) The Washington State University extension energy program must establish an application process and form by which to collect the system operation data described in RCW
82.16.165(7)(a)(iii) from each person or community solar project administrator applying for a certification under subsection (11) of this section. The Washington State University extension energy program must notify any applicant that providing this data is a condition of certification and that any certification issued pursuant to this section is void as of June 30, 2018, if the applicant has failed to provide the data by that date.
(b) Beginning July 1, 2018, the Washington State University extension energy program must, in a form and manner that is consistent with the roles and processes established under RCW
82.16.165 (19) and (20), calculate for the year and provide to the utility the amount of the incentive payment due to each participant under subsection (11) of this section.
Sec. 249. RCW
82.16.165 and 2017 3rd sp.s. c 36 s 6 are each amended to read as follows:
(1) Beginning July 1, 2017, the following persons may submit a one-time application to the Washington State University extension energy program to receive a certification authorizing the utility serving the situs of a renewable energy system in the state of Washington to remit an annual production incentive for each kilowatt-hour of alternating current electricity generated by the renewable energy system:
(a) The utility's customer who is the customer-owner of a residential-scale or commercial-scale renewable energy system;
(b) An administrator of a community solar project meeting the eligibility requirements outlined in RCW
82.16.170 and applies for certification on behalf of each of the project participants; or
(c) A utility or a business under contract with a utility that administers a shared commercial solar project that meets the eligibility requirements in RCW
82.16.175 and applies for certification on behalf of each of the project participants.
(2) No person, business, or household is eligible to receive incentive payments provided under subsection (1) of this section of more than five thousand dollars per year for residential systems or community solar projects, twenty-five thousand dollars per year for commercial-scale systems, or thirty-five thousand dollars per year for shared commercial solar projects.
(3)(a) No new certification may be issued under this section to an applicant who submits a request for or receives an annual incentive payment for a renewable energy system that was certified under RCW
82.16.120, or for a renewable energy system served by a utility that has elected not to participate in the incentive program, as provided in subsection (4) of this section.
(b) The Washington State University extension energy program may issue a new certification for an additional system installed at a situs with a previously certified system so long as the new system meets the requirements of this section and its production can be measured separately from the previously certified system.
(c) The Washington State University extension energy program may issue a recertification for a residential-scale or commercial-scale system if a customer makes investments resulting in an expansion of the system's nameplate capacity. Such recertification expires on the same day as the original certification for the residential-scale or commercial-scale system and applies to the entire system the incentive rates and program rules in effect as of the date of the recertification.
(4) A utility's participation in the incentive program provided in this section is voluntary.
(a) A utility electing to participate in the incentive program must notify the Washington State University extension energy program of such election in writing.
(b) The utility may terminate its voluntary participation in the production incentive program by providing notice in writing to the Washington State University extension energy program to cease issuing new certifications for renewable energy systems that would be served by that utility.
(c) Such notice of termination of participation is effective after fifteen days, at which point the Washington State University extension energy program may not accept new applications for certification of renewable energy systems that would be served by that utility.
(d) Upon receiving a utility's notice of termination of participation in the incentive program, the Washington State University extension energy program must report on its web site that customers of that utility are no longer eligible to receive new certifications under the program.
(e) A utility's termination of participation does not affect the utility's obligation to continue to make annual incentive payments for electricity generated by systems that were certified prior to the effective date of the notice. The Washington State University extension energy program must continue to process and issue certifications for renewable energy systems that were received by the Washington State University extension energy program before the effective date of the notice of termination.
(f) A utility that has terminated participation in the program may resume participation upon filing notice with the Washington State University extension energy program.
(5)(a) The Washington State University extension energy program may certify a renewable energy system that is connected to equipment capable of measuring the electricity production of the system and interconnecting with the utility's system in a manner that allows the utility, or the customer at the utility's option, to measure and report to the Washington State University extension energy program the total amount of electricity produced by the renewable energy system.
(b) The Washington State University extension energy program must establish a reporting and fee-for-service system to accept electricity production data from the utility or the customer that is not reported electronically and with the reporting entity selected at the utility's option as described in subsection (19) of this section. The fee-for-service agreement must allow for electronic reporting or reporting by mail, may be specific to individual utilities, and must recover only the program's costs of obtaining the electricity production data and incorporating it into an electronic format. A statement of the amount due for the fee-for-service must be provided to the utility by the Washington State University extension energy program with the report provided to the utility pursuant to subsection (20)(a) of this section. The utility may determine how to assess and remit the fee, and the utility may be allowed a credit for fees paid under this subsection (5) against taxes due, as provided in RCW
82.16.130(1).
(6) The Washington State University extension energy program may issue a certification authorizing annual incentive payments up to the following annual dollar limits:
(a) For community solar projects, five thousand dollars per project participant;
(b) For residential-scale systems, five thousand dollars;
(c) For commercial-scale systems, twenty-five thousand dollars; and
(d) For shared commercial solar projects, up to thirty-five thousand dollars a year per participant, as determined by the terms of subsection (15) of this section.
(7)(a) To obtain certification under this section, a person must submit to the Washington State University extension energy program an application, including:
(i) A signed statement that the applicant has not previously received a notice of eligibility from the department under RCW
82.16.120 entitling the applicant to receive annual incentive payments for electricity generated by the renewable energy system at the same meter location;
(ii) A signed statement of the total price, including applicable sales tax, paid by the applicant for the renewable energy system;
(iii) System operation data including global positioning system coordinates, tilt, estimated shading, and azimuth;
(iv) Any other information the Washington State University extension energy program deems necessary in determining eligibility and incentive levels, administering the program, tracking progress toward achieving the limits on program participation established in RCW
82.16.130, or facilitating the review of the performance of the tax preferences by the joint legislative audit and review committee, as described in RCW
82.16.155; and
(v)(A) Except as provided in (a)(v)(B) of this subsection (7), the date that the renewable energy system received its final electrical inspection from the applicable local jurisdiction, as well as a copy of the permit or, if the permit is available online, the permit number;
(B) The Washington State University extension energy program may waive the requirement in (a)(v)(A) of this subsection (7), accepting an application and granting provisional certification prior to proof of final electrical inspection. Provisional certification expires one hundred eighty days after issuance, unless the applicant submits proof of the final electrical inspection from the applicable local jurisdiction or the Washington State University extension energy program extends the certification, for a term or terms of thirty days, due to extenuating circumstances; and
(b)(i) Prior to obtaining certification under this subsection, a community solar project or shared commercial solar project must apply for precertification against the remaining funds available for incentive payments under subsection (13)(d) of this section in order to be guaranteed an incentive payment under this section;
(ii) A project applicant of a community solar project or shared commercial solar project must complete an application for certification with the Washington State University extension energy program within less than one year to retain the precertification status described in this subsection; and
(iii) The Washington State University extension energy program may design a reservation or precertification system for an applicant of a residential-scale or commercial-scale renewable energy system.
(8) No incentive payments may be authorized or accrued until the final electrical inspection and executed interconnection agreement are submitted to the Washington State University extension energy program.
(9) Within thirty days of receipt of the application for certification, the Washington State University extension energy program must notify the applicant and, except when a utility is the applicant, the utility serving the situs of the renewable energy system, by mail or electronically, whether certification has been granted. The certification notice must state the rate to be paid per kilowatt-hour of electricity generated by the renewable energy system, as provided in subsection (12) of this section, subject to any applicable cap on total annual payment provided in subsection (6) of this section.
(10) Certification is valid for the program term and entitles the applicant or, in the case of a community solar project or shared commercial solar project, the participant, to receive incentive payments for electricity generated from the date the renewable energy system commences operation, or the date the system is certified, whichever date is later. For purposes of this subsection, the Washington State University extension energy program must define when a renewable energy system commences operation and provide notice of such date to the recipient and the utility serving the situs of the system. Certification may not be retroactively changed except to correct later discovered errors that were made during the original application or certification process.
(11)(a) System certification follows the system if the following conditions are met using procedures established by the Washington State University extension energy program:
(i) The renewable energy system is transferred to a new owner who notifies the Washington State University extension energy program of the transfer; and
(ii) The new owner provides an executed interconnection agreement with the utility serving the premises.
(b) In the event that a community solar project participant terminates their participation in a community solar project, the system certification follows the system and participation may be transferred to a new participant. The administrator of a community solar project must provide notice to the Washington State University extension energy program of any changes or transfers in project participation.
(12) The Washington State University extension energy program must determine the total incentive rate for a new renewable energy system certification by adding to the base rate any applicable made-in-Washington bonus rate. A made-in-Washington bonus rate is provided for a renewable energy system or a community solar project with solar modules made in Washington or with a wind turbine or tower that is made in Washington. Both the base rates and bonus rate vary, depending on the fiscal year in which the system is certified and the type of renewable energy system being certified, as provided in the following table:
Fiscal year of system certification | Base rate - residential-scale | Base rate - commercial-scale | Base rate -community solar | Base rate - shared commercial solar | Made in Washington bonus |
2018 | $0.16 | $0.06 | $0.16 | $0.06 | $0.05 |
2019 | $0.14 | $0.04 | $0.14 | $0.04 | $0.04 |
2020 | $0.12 | $0.02 | $0.12 | $0.02 | $0.03 |
2021 | $0.10 | $0.02 | $0.10 | $0.02 | $0.02 |
(13) The Washington State University extension energy program must cease to issue new certifications:
(a) For community solar projects and shared commercial solar projects in any fiscal year for which the Washington State University extension energy program estimates that fifty percent of the remaining funds for credit available to a utility for renewable energy systems certified under this section as of July 1, 2017, have been allocated to community solar projects and shared commercial solar projects combined;
(b) For commercial-scale systems in any fiscal year for which the Washington State University extension energy program estimates that twenty-five percent of the remaining funds for credit available to a utility for renewable energy systems certified under this section as of July 1, 2017, have been allocated to commercial-scale systems;
(c) For any renewable energy system served by a utility, if certification is likely to result in incentive payments by that utility, including payments made under RCW
82.16.120, exceeding the utility's available funds for credit under RCW
82.16.130; and
(d) For any renewable energy system, if certification is likely to result in total incentive payments under this section exceeding one hundred ten million dollars.
(14) If the Washington State University extension energy program ceases issuing new certifications during a fiscal year or biennium as provided in subsection (13) of this section, in the following fiscal year or biennium, or when additional funds are available for credit such that the thresholds described in subsection (13) of this section are no longer exceeded, the Washington State University extension energy program must resume issuing new certifications using a method of awarding certifications that results in equitable and orderly allocation of benefits to applicants.
(15) A customer who is a participant in a shared commercial solar project may not receive incentive payments associated with the project greater than the difference between the levelized cost of energy output of the system over its production life and the retail rate for the rate class to which the customer belongs. The levelized cost of the output of the energy must be determined by the utility that administers the shared commercial solar project and must be disclosed, along with an explanation of the limitations on incentive payments contained in this subsection (15), in the contractual agreement with the shared commercial solar project participants.
(16) In order to begin to receive annual incentive payments, a person who has been issued a certification for the incentive as provided in subsection (9) of this section must obtain an executed interconnection agreement with the utility serving the situs of the renewable energy system.
(17) The Washington State University extension energy program must establish a list of equipment that is eligible for the bonus rates described in subsection (12) of this section. The Washington State University extension energy program must, in consultation with the department of commerce, develop technical specifications and guidelines to ensure consistent and predictable determination of eligibility. A solar module is made in Washington for purposes of receiving the bonus rate only if the lamination of the module takes place in Washington. A wind turbine is made in Washington only if it is powered by a turbine or built with a tower manufactured in Washington.
(18) The manufacturer of a renewable energy system component subject to a bonus rate under subsection (12) of this section may apply to the Washington State University extension energy program to receive a determination of eligibility for such bonus rates. The Washington State University extension energy program must publish a list of components that have been certified as eligible for such bonus rates. The Washington State University extension energy program may assess an equipment certification fee to recover its costs. The Washington State University extension energy program must deposit all revenue generated by this fee into the state general fund.
(19) Annually, the utility must report electronically to the Washington State University extension energy program the amount of gross kilowatt-hours generated by each renewable energy system since the prior annual report. For the purposes of this section, to report electronically means to submit statistical or factual information in alphanumeric form through a web site established by the Washington State University extension energy program or in a list, table, spreadsheet, or other nonnarrative format that can be digitally transmitted or processed. The utility may instead opt to report by mail or require program participants to report individually, but if the utility exercises one or more of these options it must negotiate with the Washington State University extension energy program the fee-for-service arrangement described in subsection (5)(b) of this section.
(20)(a) The Washington State University extension energy program must calculate for the year and provide to the utility the amount of the incentive payment due to each participant and the total amount of credit against tax due available to the utility under RCW
82.16.130 that has been allocated as annual incentive payments. Upon notice to the Washington State University extension energy program, a utility may opt to directly perform this calculation and provide its results to the Washington State University extension energy program.
(b) If the Washington State University extension energy program identifies an abnormal production claim, it must notify the utility, the department of ((revenue))taxation, and the applicant, and must recommend withholding payment until the applicant has demonstrated that the production claim is accurate and valid. The utility is not liable to the customer for withholding payments pursuant to such recommendation unless and until the Washington State University extension energy program notifies the utility to resume incentive payments.
(21)(a) The utility must issue the incentive payment within ninety days of receipt of the information required under subsection (20)(a) of this section from the Washington State University extension energy program. The utility must resume the incentive payments withheld under subsection (20)(b) of this section within thirty days of receiving notice from the Washington State University extension energy program that the claim has been demonstrated accurate and valid and payment should be resumed.
(b) A utility is not liable for incentive payments to a customer-owner if the utility has disconnected the customer due to a violation of a customer service agreement, such as nonpayment of the customer's bill, or a violation of an interconnection agreement.
(22) Beginning January 1, 2018, the Washington State University extension energy program must post on its web site and update at least monthly a report, by utility, of:
(a) The number of certifications issued for renewable energy systems, including estimated system sizes, costs, and annual energy production and incentive yields for various system types; and
(b) An estimate of the amount of credit that has not yet been allocated for incentive payments under each utility's credit limit and remains available for new renewable energy system certifications.
(23) Persons receiving incentive payments under this section must keep and preserve, for a period of five years for the duration of the consumer contract, suitable records as may be necessary to determine the amount of incentive payments applied for and received. The Washington State University extension energy program may direct a utility to cease issuing incentive payments if the records are not made available for examination upon request. A utility receiving such a directive is not liable to the applicant for any incentive payments or other damages for ceasing payments pursuant to the directive.
(24) The nonpower attributes of the renewable energy system belong to the utility customer who owns or hosts the system or, in the case of a community solar project or a shared commercial solar project, the participant, and can be kept, sold, or transferred at the utility customer's discretion unless, in the case of a utility-owned community solar or shared commercial solar project, a contract between the customer and the utility clearly specifies that the attributes will be retained by the utility.
(25) All lists, technical specifications, determinations, and guidelines developed under this section must be made publicly available online by the Washington State University extension energy program.
(26) No certification may be issued under this section after June 30, 2021.
(27) The Washington State University extension energy program must collect a one-time fee for applications submitted under subsection (1) of this section of one hundred twenty-five dollars per applicant. The Washington State University extension energy program must deposit all revenue generated by this fee into the state general fund. The Washington State University extension energy program must administer and budget for the program established in RCW
82.16.120, this section, and RCW
82.16.170 in a manner that ensures its administrative costs through June 30, 2022, are completely met by the revenues from this fee. If the Washington State University extension energy program determines that the fee authorized in this subsection is insufficient to cover the administrative costs through June 30, 2022, the Washington State University extension energy program must report to the legislature on costs incurred and fees collected and demonstrate why a different fee amount or funding mechanism should be authorized.
(28) The Washington State University extension energy program may, through a public process, develop any program requirements, policies, and processes necessary for the administration or implementation of this section, RCW
82.16.120,
82.16.155, and
82.16.170. The department is authorized, in consultation with the Washington State University extension energy program, to adopt any rules necessary for administration or implementation of the program established under this section and RCW
82.16.170.
(29) Applications, certifications, requests for incentive payments under this section, and the information contained therein are not deemed tax information under RCW
82.32.330 and are subject to disclosure.
(30)(a) By November 1, 2019, and in compliance with RCW
43.01.036, the Washington State University extension energy program must submit a report to the legislature that includes the following:
(i) The number and types of renewable energy systems that have been certified under this section as of July 1, 2019, both statewide and per participating utility;
(ii) The number of utilities that are approaching or have reached the credit limit established under RCW
82.16.130(2) or the thresholds established under subsection (13) of this section;
(iii) The share of renewable energy systems by type that contribute to each utility's threshold under subsection (13) of this section;
(iv) An assessment of the deployment of community solar projects in the state, including but not limited to the following:
(A) An evaluation of whether or not community solar projects are being deployed in low-income and moderate-income communities, as those terms are defined in RCW
43.63A.510, including a description of any barriers to project deployment in these communities;
(B) A description of the share of community solar projects by administrator type that contribute to each utility's threshold under subsection (13)(a) of this section; and
(C) A description of any barriers to participation by nonprofits and local housing authorities in the incentive program established under this section and under RCW
82.16.170;
(v) The total dollar amount of incentive payments that have been made to participants in the incentive program established under this section to date; and
(vi) The total number of megawatts of solar photovoltaic capacity installed to date by participants in the incentive program established under this section.
(b) By December 31, 2019, the legislature must review the report submitted under (a) of this subsection and determine whether the credit limit established under RCW
82.16.130(2) should be increased to two percent of a light and power business' taxable power sales generated in calendar year 2014 and due under RCW
82.16.020(1)(b) or two hundred fifty thousand dollars, whichever is greater, in order to achieve the legislative intent under section 1, chapter 36, Laws of 2017 3rd sp. sess.
Sec. 250. RCW
82.18.060 and 1989 c 431 s 87 are each amended to read as follows:
To prevent pyramiding and multiple taxation of a single transaction, the solid waste collection taxes imposed in this chapter shall not apply to any solid waste collection business using the services of another solid waste collection business for the transfer, storage, processing, or disposal of the waste collected during the transaction.
To be eligible for this exemption, a person first must be certified by the department of ((revenue))taxation as a solid waste collection business.
Sec. 251. RCW
82.18.080 and 1989 c 431 s 89 are each amended to read as follows:
The department of ((revenue))taxation shall have the power to enforce the taxes imposed in this chapter through appropriate rules.
Sec. 252. RCW
82.19.010 and 2008 c 86 s 201 are each amended to read as follows:
(1) In addition to any other taxes, there is hereby levied and there shall be collected by the department of ((
revenue))
taxation from every person for the privilege of engaging within this state in business as a manufacturer, as a wholesaler, or as a retailer, a litter tax equal to the value of products listed in RCW
82.19.020, including by-products, manufactured within this state, multiplied by fifteen one-thousandths of one percent in the case of manufacturers, and equal to the gross proceeds of sales of the products listed in RCW
82.19.020 that are sold within this state multiplied by fifteen one-thousandths of one percent in the case of wholesalers and retailers.
(2) The frequency and time of collection of the tax will coincide with the reporting periods by payers of their business and occupation tax.
Sec. 253. RCW
82.19.030 and 1992 c 175 s 5 are each amended to read as follows:
(1) The department of ((
revenue))
taxation, by rule, may, if such is required, define those items subject to tax under RCW
82.19.020. In making any such definitions, the department of ((
revenue))
taxation shall be guided by the following standards:
(a) It is the purpose of this chapter to accomplish effective control of litter within this state;
(b) It is the purpose of this chapter to allocate a portion of the cost of administration of this chapter to those industries manufacturing and/or selling products and the packages, wrappings, or containers thereof which are reasonably related to the litter problem within this state.
(2) Instead of requiring each business to separately account for taxable and nontaxable products under this chapter, the department may provide, by rule, that the tax imposed in this chapter be reported and paid based on a percentage of total sales for a particular type of business if the department determines that the percentage reasonably approximates the taxable activity of the particular type of business.
Sec. 254. RCW
82.21.050 and 1989 c 2 s 12 are each amended to read as follows:
(1) Credit shall be allowed in accordance with rules of the department of ((revenue))taxation for taxes paid under this chapter with respect to fuel carried from this state in the fuel tank of any airplane, ship, truck, or other vehicle.
(2) Credit shall be allowed, in accordance with rules of the department, against the taxes imposed in this chapter for any hazardous substance tax paid to another state with respect to the same hazardous substance. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to that hazardous substance. For the purpose of this subsection:
(a) "Hazardous substance tax" means a tax:
(i) Which is imposed on the act or privilege of possessing hazardous substances, and which is not generally imposed on other activities or privileges; and
(ii) Which is measured by the value of the hazardous substance, in terms of wholesale value or other terms, and in the determination of which the deductions allowed would not constitute the tax an income tax or value added tax.
(b) "State" means (i) the state of Washington, (ii) a state of the United States other than Washington, or any political subdivision of such other state, (iii) the District of Columbia, and (iv) any foreign country or political subdivision thereof.
Sec. 255. RCW
82.23B.010 and 2018 c 262 s 102 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Barrel" means a unit of measurement of volume equal to forty-two United States gallons of crude oil or petroleum product.
(2) "Bulk oil terminal" means a facility of any kind, other than a waterborne vessel, that is used for transferring crude oil or petroleum products from a tank car or pipeline.
(3) "Crude oil" means any naturally occurring hydrocarbons coming from the earth that are liquid at twenty-five degrees Celsius and one atmosphere of pressure including, but not limited to, crude oil, bitumen and diluted bitumen, synthetic crude oil, and natural gas well condensate.
(4) "Department" means the department of ((revenue))taxation.
(5) "Marine terminal" means a facility of any kind, other than a waterborne vessel, that is used for transferring crude oil or petroleum products to or from a waterborne vessel or barge.
(6) "Navigable waters" means those waters of the state and their adjoining shorelines that are subject to the ebb and flow of the tide, including the Columbia and Snake rivers.
(7) "Person" has the meaning provided in RCW
82.04.030.
(8) "Petroleum product" means any liquid hydrocarbons at atmospheric temperature and pressure that are the product of the fractionation, distillation, or other refining or processing of crude oil, and that are used as, useable as, or may be refined as a fuel or fuel blendstock, including but not limited to, gasoline, diesel fuel, aviation fuel, bunker fuel, and fuels containing a blend of alcohol and petroleum.
(9) "Pipeline" means an interstate or intrastate pipeline subject to regulation by the United States department of transportation under 49 C.F.R. Part 195 in effect on April 1, 2018, through which oil moves in transportation, including line pipes, valves, and other appurtenances connected to line pipes, pumping units, and fabricated assemblies associated with pumping units.
(10) "Tank car" means a rail car, the body of which consists of a tank for transporting liquids.
(11) "Taxpayer" means the person owning crude oil or petroleum products immediately after receipt of the same into the storage tanks of a marine or bulk oil terminal in this state and who is liable for the taxes imposed by this chapter.
(12) "Waterborne vessel or barge" means any ship, barge, or other watercraft capable of traveling on the navigable waters of this state and capable of transporting any crude oil or petroleum product in quantities of ten thousand gallons or more for purposes other than providing fuel for its motor or engine.
Sec. 256. RCW
82.24.030 and 2012 2nd sp.s. c 4 s 2 are each amended to read as follows:
(1) In order to enforce collection of the tax hereby levied, the department of ((revenue))taxation must design and have printed stamps of such size and denominations as may be determined by the department. The stamps must be affixed on the smallest container or package that will be handled, sold, used, consumed, or distributed, to permit the department to readily ascertain by inspection, whether or not such tax has been paid or whether an exemption from the tax applies.
(2) Except as otherwise provided in this chapter, only a wholesaler may cause to be affixed on every package of cigarettes, stamps of an amount equaling the tax due thereon or stamps identifying the cigarettes as exempt before he or she sells, offers for sale, uses, consumes, handles, removes, or otherwise disturbs and distributes the same. However, where it is established to the satisfaction of the department that it is impractical to affix such stamps to the smallest container or package, the department may authorize the affixing of stamps of appropriate denomination to a large container or package.
(3) Except as otherwise provided in this chapter, only wholesalers may purchase or obtain cigarette stamps. Wholesalers may not sell or provide stamps to any other wholesaler or person.
(4) Each roll of stamps, or group of sheets, must have a separate serial number, which is legible at the point of sale. The department of ((revenue))taxation must keep records of which wholesaler purchases each roll or group of sheets. If the department of ((revenue))taxation permits wholesalers to purchase partial rolls or sheets, in no case may stamps bearing the same serial number be sold to more than one wholesaler. The remainder of the roll or sheet, if any, must either be retained for later purchases by the same wholesaler or destroyed.
(5) Nothing in this section may be construed as limiting any otherwise lawful activity under a cigarette tax compact pursuant to chapter
43.06 RCW.
(6) In order to enforce collection of the tax in the case of roll-your-own cigarettes, a retailer must affix a stamp or stamps to each box or similar container provided by the retailer to the consumer. The box or similar container must be used by a consumer to transport roll-your-own cigarettes from the retailer's place of business. A retailer must provide cigarette tubes to a consumer in one or more twenty unit denominations. Stamps must be for an amount equaling the tax due under this chapter. Each cigarette tube or paper provided to the consumer is deemed a cigarette for purposes of imposing and collecting taxes under this chapter. Stamps for roll-your-own cigarettes must be issued and affixed in a manner determined by the department but as consistent as practicable with the stamping requirements for wholesalers.
Sec. 257. RCW
82.24.090 and 1995 c 278 s 6 are each amended to read as follows:
(1) Every wholesaler or retailer subject to the provisions of this chapter shall keep and preserve for a period of five years an accurate set of records. These records must show all transactions relating to the purchase and sale of any of the articles taxed under this chapter and show all physical inventories performed on those articles, all invoices, and a record of all stamps purchased. All such records and all stock of taxable articles on hand shall be open to inspection at all reasonable times by the department of ((revenue))taxation or its duly authorized agent.
(2) All wholesalers shall within fifteen days after the first day of each month file with the department of ((revenue))taxation a report of all drop shipment sales made by them to retailers within this state during the preceding month. The report shall show the name and address of the retailer to whom the cigarettes were sold, the kind and quantity, and the date of delivery thereof.
Sec. 258. RCW
82.24.110 and 2012 2nd sp.s. c 4 s 6 are each amended to read as follows:
(1) Each of the following acts is a gross misdemeanor and punishable as such:
(a) To sell, except as a licensed wholesaler engaged in interstate commerce as to the article being taxed herein, without the stamp first being affixed;
(b) To sell in Washington as a wholesaler to a retailer who does not possess and is required to possess a current cigarette retailer's license;
(c) To use or have in possession knowingly or intentionally any forged or counterfeit stamps;
(d) For any person other than the department of ((revenue))taxation or its duly authorized agent to sell any stamps not affixed to any of the articles taxed herein whether such stamps are genuine or counterfeit;
(e) For any person other than the department of ((revenue))taxation, its duly authorized agent, or a licensed wholesaler who has lawfully purchased or obtained them to possess any stamps not affixed to any of the articles taxed herein whether such stamps are genuine or counterfeit;
(f) To violate any of the provisions of this chapter;
(g) To violate any lawful rule made and published by the department of ((revenue))taxation or the board;
(h) To use any stamps more than once or any individual stamped box or similar container used to transport roll-your-own cigarettes more than once;
(i) To refuse to allow the department of ((revenue))taxation
(j) Except as otherwise provided in this chapter, for any retailer to have in possession in any place of business any of the articles herein taxed, unless the same have the proper stamps attached;
(k) For any person to make, use, or present or exhibit to the department of ((revenue))taxation or its duly authorized agent, any invoice for any of the articles herein taxed which bears an untrue date or falsely states the nature or quantity of the goods therein invoiced;
(l) For any wholesaler or retailer or his or her agents or employees to fail to produce on demand of the department of ((revenue))taxation all invoices of all the articles herein taxed or stamps bought by him or her or received in his or her place of business within five years prior to such demand unless he or she can show by satisfactory proof that the nonproduction of the invoices was due to causes beyond his or her control;
(m) For any person to receive in this state any shipment of any of the articles taxed herein, when the same are not stamped, for the purpose of avoiding payment of tax. It is presumed that persons other than dealers who purchase or receive shipments of unstamped cigarettes do so to avoid payment of the tax imposed herein;
(n) For any person to possess or transport in this state a quantity of ten thousand cigarettes or less unless the proper stamps required by this chapter have been affixed or unless: (i) Notice of the possession or transportation has been given as required by RCW
82.24.250; (ii) the person transporting the cigarettes has in actual possession invoices or delivery tickets which show the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of the cigarettes so transported; and (iii) the cigarettes are consigned to or purchased by any person in this state who is authorized by this chapter to possess unstamped cigarettes in this state;
(o) For any person to possess or receive in this state a quantity of ten thousand cigarettes or less unless the proper stamps required by this chapter have been affixed or unless the person is authorized by this chapter to possess unstamped cigarettes in this state and is in compliance with the requirements of this chapter;
(p) To possess, sell, distribute, purchase, receive, ship, or transport within this state any container or package of cigarettes that does not comply with this chapter; and
(q) For a retailer to provide consumers with access to a commercial cigarette-making machine without providing a box or similar container that has a properly affixed stamp or stamps.
(2) It is unlawful for any person knowingly or intentionally to possess or to:
(a) Transport in this state a quantity in excess of ten thousand cigarettes unless the proper stamps required by this chapter are affixed thereto or unless: (i) Proper notice as required by RCW
82.24.250 has been given; (ii) the person transporting the cigarettes actually possesses invoices or delivery tickets showing the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity and brands of the cigarettes so transported; and (iii) the cigarettes are consigned to or purchased by a person in this state who is authorized by this chapter to possess unstamped cigarettes in this state; or
(b) Receive in this state a quantity in excess of ten thousand cigarettes unless the proper stamps required by this chapter are affixed thereto or unless the person is authorized by this chapter to possess unstamped cigarettes in this state and is in compliance with this chapter.
(3) Violation of subsection (2) of this section is punished as a class C felony under Title
9A RCW.
(4) All agents, employees, and others who aid, abet, or otherwise participate in any way in the violation of the provisions of this chapter or in any of the offenses described in this chapter are guilty and punishable as principals, to the same extent as any wholesaler or retailer or any other person violating this chapter.
(5) For purposes of this section, "person authorized by this chapter to possess unstamped cigarettes in this state" has the same meaning as in RCW
82.24.250.
Sec. 259. RCW
82.24.120 and 2012 2nd sp.s. c 4 s 7 are each amended to read as follows:
(1) If any person, subject to the provisions of this chapter or any rules adopted by the department of ((
revenue))
taxation under authority of this section, is found to have failed to affix the stamps required, or to have them affixed as provided in this section, or to pay any tax due under this section, or to have violated any of the provisions of this chapter or rules adopted by the department of ((
revenue))
taxation in the administration of this chapter, there must be assessed and collected from such person, in addition to any tax that may be found due, a remedial penalty equal to the greater of ten dollars per package of unstamped cigarettes or ten dollars per twenty roll-your-own cigarettes, or two hundred fifty dollars, plus interest on the amount of the tax at the rate as computed under RCW
82.32.050(2) from the date the tax became due until the date of payment, and upon notice mailed to the last known address of the person or provided electronically as provided in RCW
82.32.135. The amount is due and payable in thirty days from the date of the notice. If the amount remains unpaid, the department or its duly authorized agent may make immediate demand upon such person for the payment of all such taxes, penalties, and interest.
(2) The department, for good reason shown, may waive or cancel all or any part of penalties imposed, but the taxpayer must pay all taxes due and interest thereon, at the rate as computed under RCW
82.32.050(2) from the date the tax became due until the date of payment.
(3) The keeping of any unstamped articles coming within the provisions of this chapter is prima facie evidence of intent to violate the provisions of this chapter.
(4) This section does not apply to taxes or tax increases due under RCW
82.24.280.
Sec. 260. RCW
82.24.180 and 2012 2nd sp.s. c 4 s 9 are each amended to read as follows:
(1) The department of ((revenue))taxation may return any property seized under the provisions of this chapter when it is shown that there was no intention to violate the provisions thereof.
(2) When any property is returned under this section, the department may return such goods to the parties from whom they were seized if and when such parties affix the proper amount of stamps thereto, and pay to the department as penalty an amount equal to the greater of ten dollars per package of unstamped cigarettes or ten dollars per twenty roll-your-own cigarettes, or two hundred fifty dollars, and interest on the amount of the tax at the rate as computed under RCW
82.32.050(2) from the date the tax became due until the date of payment, and in such cases, no advertisement shall be made or notices posted in connection with said seizure.
Sec. 261. RCW
82.24.190 and 1997 c 420 s 6 are each amended to read as follows:
When the department of ((revenue))taxation or the board has good reason to believe that any of the articles taxed herein are being kept, sold, offered for sale, or given away in violation of the provisions of this chapter or regulations issued under authority hereof, it may make affidavit of such fact, describing the place or thing to be searched, before any judge of any court in this state, and such judge shall issue a search warrant directed to the sheriff, any deputy, police officer, or duly authorized agent of the department of ((revenue))taxation commanding him or her diligently to search any building, room in a building, place or vehicle as may be designated in the affidavit and search warrant, and to seize such tobacco so possessed and to hold the same until disposed of by law, and to arrest the person in possession or control thereof. If upon the return of such warrant, it shall appear that any of the articles taxed herein, unlawfully possessed, were seized, the same shall be sold as provided in this chapter.
Sec. 262. RCW
82.24.210 and 2013 c 23 s 320 are each amended to read as follows:
The department of ((
revenue))
taxation may promulgate rules and regulations providing for the refund to dealers for the cost of stamps affixed to articles taxed herein, which by reason of damage become unfit for sale and are destroyed by the dealer or returned to the manufacturer or jobber. In the case of any articles to which stamps have been affixed, and which articles have been sold and shipped to a regular dealer in such articles in another state, the seller in this state shall be entitled to a refund of the actual amount of the stamps so affixed, less the affixing discount, upon condition that the seller in this state makes affidavit that the articles were sold and shipped outside of the state and that he or she has received from the purchaser outside the state a written acknowledgment that he or she has received such articles with the amount of stamps affixed thereto, together with the name and address of such purchaser. The department of ((
revenue))
taxation may redeem any unused stamps purchased from it at the face value thereof less the affixing discount. A distributor or wholesaler that has lawfully affixed stamps to cigarettes, and subsequently is unable to sell those cigarettes lawfully because the cigarettes are removed from the directory created pursuant to RCW
70.158.030(2), may apply to the department for a refund of the cost of the stamps.
Sec. 263. RCW
82.24.520 and 2013 c 144 s 51 are each amended to read as follows:
A fee of six hundred fifty dollars must accompany each wholesaler's license application or license renewal application. If a wholesaler sells or intends to sell cigarettes at two or more places of business, whether established or temporary, a separate license with a license fee of one hundred fifteen dollars is required for each additional place of business. Each license, or certificate thereof, and such other evidence of license as the department of ((
revenue))
taxation requires, must be exhibited in the place of business for which it is issued and in such manner as is prescribed for the display of a business license issued under chapter
19.02 RCW. The board must require each licensed wholesaler to file with the department of ((
revenue))
taxation a bond in an amount not less than one thousand dollars to guarantee the proper performance of the duties and the discharge of the liabilities under this chapter. The bond must be executed by such licensed wholesaler as principal, and by a corporation approved by the department of ((
revenue))
taxation and authorized to engage in business as a surety company in this state, as surety. The bond must run concurrently with the wholesaler's license.
Sec. 264. RCW
82.24.560 and 1993 c 507 s 18 are each amended to read as follows:
Except as specified in RCW
70.155.120, all fees and penalties received or collected by the department of ((
revenue))
taxation pursuant to this chapter shall be paid to the state treasurer, to be credited to the general fund.
Sec. 265. RCW
82.26.010 and 2010 1st sp.s. c 22 s 4 are each reenacted and amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Actual price" means the total amount of consideration for which tobacco products are sold, valued in money, whether received in money or otherwise, including any charges by the seller necessary to complete the sale such as charges for delivery, freight, transportation, or handling.
(2) "Affiliated" means related in any way by virtue of any form or amount of common ownership, control, operation, or management.
(3) "Board" means the state liquor ((control))and cannabis board.
(4) "Business" means any trade, occupation, activity, or enterprise engaged in for the purpose of selling or distributing tobacco products in this state.
(5) "Cigar" means a roll for smoking that is of any size or shape and that is made wholly or in part of tobacco, irrespective of whether the tobacco is pure or flavored, adulterated or mixed with any other ingredient, if the roll has a wrapper made wholly or in greater part of tobacco. "Cigar" does not include a cigarette.
(6) "Cigarette" has the same meaning as in RCW
82.24.010.
(7) "Department" means the department of ((revenue))taxation.
(8) "Distributor" means (a) any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from without the state any tobacco products for sale, (b) any person who makes, manufactures, fabricates, or stores tobacco products in this state for sale in this state, (c) any person engaged in the business of selling tobacco products without this state who ships or transports tobacco products to retailers in this state, to be sold by those retailers, (d) any person engaged in the business of selling tobacco products in this state who handles for sale any tobacco products that are within this state but upon which tax has not been imposed.
(9) "Indian country" means the same as defined in chapter
82.24 RCW.
(10) "Little cigar" means a cigar that has a cellulose acetate integrated filter.
(11) "Manufacturer" means a person who manufactures and sells tobacco products.
(12) "Manufacturer's representative" means a person hired by a manufacturer to sell or distribute the manufacturer's tobacco products, and includes employees and independent contractors.
(13) "Moist snuff" means tobacco that is finely cut, ground, or powdered; is not for smoking; and is intended to be placed in the oral, but not the nasal, cavity.
(14) "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, the state and its departments and institutions, political subdivision of the state of Washington, corporation, limited liability company, association, society, any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise. The term excludes any person immune from state taxation, including the United States or its instrumentalities, and federally recognized Indian tribes and enrolled tribal members, conducting business within Indian country.
(15) "Place of business" means any place where tobacco products are sold or where tobacco products are manufactured, stored, or kept for the purpose of sale, including any vessel, vehicle, airplane, train, or vending machine.
(16) "Retail outlet" means each place of business from which tobacco products are sold to consumers.
(17) "Retailer" means any person engaged in the business of selling tobacco products to ultimate consumers.
(18)(a) "Sale" means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, and includes and means all sales made by any person.
(b) The term "sale" includes a gift by a person engaged in the business of selling tobacco products, for advertising, promoting, or as a means of evading the provisions of this chapter.
(19)(a) "Taxable sales price" means:
(i) In the case of a taxpayer that is not affiliated with the manufacturer, distributor, or other person from whom the taxpayer purchased tobacco products, the actual price for which the taxpayer purchased the tobacco products;
(ii) In the case of a taxpayer that purchases tobacco products from an affiliated manufacturer, affiliated distributor, or other affiliated person, and that sells those tobacco products to unaffiliated distributors, unaffiliated retailers, or ultimate consumers, the actual price for which that taxpayer sells those tobacco products to unaffiliated distributors, unaffiliated retailers, or ultimate consumers;
(iii) In the case of a taxpayer that sells tobacco products only to affiliated distributors or affiliated retailers, the price, determined as nearly as possible according to the actual price, that other distributors sell similar tobacco products of like quality and character to unaffiliated distributors, unaffiliated retailers, or ultimate consumers;
(iv) In the case of a taxpayer that is a manufacturer selling tobacco products directly to ultimate consumers, the actual price for which the taxpayer sells those tobacco products to ultimate consumers;
(v) In the case of a taxpayer that has acquired tobacco products under a sale as defined in subsection (18)(b) of this section, the price, determined as nearly as possible according to the actual price, that the taxpayer or other distributors sell the same tobacco products or similar tobacco products of like quality and character to unaffiliated distributors, unaffiliated retailers, or ultimate consumers; or
(vi) In any case where (a)(i) through (v) of this subsection do not apply, the price, determined as nearly as possible according to the actual price, that the taxpayer or other distributors sell the same tobacco products or similar tobacco products of like quality and character to unaffiliated distributors, unaffiliated retailers, or ultimate consumers.
(b) For purposes of (a)(i) and (ii) of this subsection only, "person" includes both persons as defined in subsection (14) of this section and any person immune from state taxation, including the United States or its instrumentalities, and federally recognized Indian tribes and enrolled tribal members, conducting business within Indian country.
(c) The department may adopt rules regarding the determination of taxable sales price under this subsection.
(20) "Taxpayer" means a person liable for the tax imposed by this chapter.
(21) "Tobacco products" means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, and any other product, regardless of form, that contains tobacco and is intended for human consumption or placement in the oral or nasal cavity or absorption into the human body by any other means, but does not include cigarettes as defined in RCW
82.24.010.
(22) "Unaffiliated distributor" means a distributor that is not affiliated with the manufacturer, distributor, or other person from whom the distributor has purchased tobacco products.
(23) "Unaffiliated retailer" means a retailer that is not affiliated with the manufacturer, distributor, or other person from whom the retailer has purchased tobacco products.
Sec. 266. RCW
82.26.090 and 1975 1st ex.s. c 278 s 75 are each amended to read as follows:
Records of all deliveries or shipments of tobacco products from any public warehouse of first destination in this state shall be kept by the warehouse and be available to the department of ((revenue))taxation for inspection. They shall show the name and address of the consignee, the date, the quantity of tobacco products delivered, and such other information as the department may require. These records shall be preserved for five years from the date of delivery of the tobacco products.
Sec. 267. RCW
82.27.060 and 2006 c 256 s 3 are each amended to read as follows:
The taxes levied by this chapter shall be due for payment monthly and remittance therefor shall be made within twenty-five days after the end of the month in which the taxable activity occurs. The taxpayer on or before the due date shall make out a signed return, setting out such information as the department of ((revenue))taxation may require, including the gross measure of the tax, any deductions, credits, or exemptions claimed, and the amount of tax due for the preceding monthly period, which amount shall be transmitted to the department along with the return.
The department may relieve any taxpayer from the obligation of filing a monthly return and may require the return to cover other periods, but in no event may periodic returns be filed for a period greater than one year. In such cases tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.
Sec. 268. RCW
82.27.070 and 2017 3rd sp.s. c 8 s 54 are each amended to read as follows:
All taxes collected by the department of ((revenue))taxation under this chapter shall be deposited in the state general fund except for the following:
(1) The excise tax on anadromous game fish is deposited in the state wildlife account.
(2) The excise tax on ocean waters, Columbia river, Willapa Bay, and Grays Harbor chinook, coho, and chum salmon is deposited as follows:
(a) The equivalent of five and twenty-five one-hundredths percent shall be deposited in the state general fund.
(b) The equivalent of one percent shall be deposited in the state wildlife account.
Sec. 269. RCW
82.29A.010 and 2010 c 281 s 2 are each amended to read as follows:
(1)(a) The legislature hereby recognizes that properties of the state of Washington, counties, school districts, and other municipal corporations are exempted by Article 7, section 1 of the state Constitution from property tax obligations, but that private lessees of such public properties receive substantial benefits from governmental services provided by units of government.
(b) The legislature further recognizes that a uniform method of taxation should apply to such leasehold interests in publicly owned property.
(c) The legislature finds that lessees of publicly owned property or community centers are entitled to those same governmental services and does hereby provide for a leasehold excise tax to fairly compensate governmental units for services rendered to such lessees of publicly owned property or community centers. For the purposes of this subsection, "community center" has the same meaning as provided in RCW
84.36.010.
(2) The legislature further finds that experience gained by lessors, lessees, and the department of ((revenue))taxation since enactment of the leasehold excise tax under this chapter has shed light on areas in the leasehold excise statutes that need explanation and clarification. The purpose of chapter 220, Laws of 1999 is to make those changes.
Sec. 270. RCW
82.29A.020 and 2015 3rd sp.s. c 6 s 2004 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context requires otherwise.
(1)(a) "Leasehold interest" means an interest in publicly owned, or specified privately owned, real or personal property which exists by virtue of any lease, permit, license, or any other agreement, written or verbal, between the owner of the property and a person who would not be exempt from property taxes if that person owned the property in fee, granting possession and use, to a degree less than fee simple ownership. However, no interest in personal property (excluding land or buildings) which is owned by the United States, whether or not as trustee, or by any foreign government may constitute a leasehold interest hereunder when the right to use such property is granted pursuant to a contract solely for the manufacture or production of articles for sale to the United States or any foreign government. The term "leasehold interest" includes the rights of use or occupancy by others of property which is owned in fee or held in trust by a public corporation, commission, or authority created under RCW
35.21.730 or
35.21.660 if the property is listed on or is within a district listed on any federal or state register of historical sites.
(b) The term "leasehold interest" does not include:
(i) Road or utility easements, rights of access, occupancy, or use granted solely for the purpose of removing materials or products purchased from an owner or the lessee of an owner, or rights of access, occupancy, or use granted solely for the purpose of natural energy resource exploration; or
(ii) The preferential use of publicly owned cargo cranes and docks and associated areas used in the loading and discharging of cargo located at a port district marine facility. "Preferential use" means that publicly owned real or personal property is used by a private party under a written agreement with the public owner, but the public owner or any third party maintains a right to use the property when not being used by the private party.
(2)(a) "Taxable rent" means contract rent as defined in (c) of this subsection in all cases where the lease or agreement has been established or renegotiated through competitive bidding, or negotiated or renegotiated in accordance with statutory requirements regarding the rent payable, or negotiated or renegotiated under circumstances, established by public record, clearly showing that the contract rent was the maximum attainable by the lessor. With respect to a leasehold interest in privately owned property, "taxable rent" means contract rent. However, after January 1, 1986, with respect to any lease which has been in effect for ten years or more without renegotiation, taxable rent may be established by procedures set forth in (g) of this subsection. All other leasehold interests are subject to the determination of taxable rent under the terms of (g) of this subsection.
(b) For purposes of determining leasehold excise tax on any lands on the Hanford reservation subleased to a private or public entity by the department of ecology, taxable rent includes only the annual cash rental payment made by such entity to the department of ecology as specifically referred to as rent in the sublease agreement between the parties and does not include any other fees, assessments, or charges imposed on or collected by such entity irrespective of whether the private or public entity pays or collects such other fees, assessments, or charges as specified in the sublease agreement.
(c) "Contract rent" means the amount of consideration due as payment for a leasehold interest, including: The total of cash payments made to the lessor or to another party for the benefit of the lessor according to the requirements of the lease or agreement, including any rents paid by a sublessee; expenditures for the protection of the lessor's interest when required by the terms of the lease or agreement; and expenditures for improvements to the property to the extent that such improvements become the property of the lessor. Where the consideration conveyed for the leasehold interest is made in combination with payment for concession or other rights granted by the lessor, only that portion of such payment which represents consideration for the leasehold interest is part of contract rent.
(d) "Contract rent" does not include: (i) Expenditures made by the lessee, which under the terms of the lease or agreement, are to be reimbursed by the lessor to the lessee or expenditures for improvements and protection made pursuant to a lease or an agreement which requires that the use of the improved property be open to the general public and that no profit will inure to the lessee from the lease; (ii) expenditures made by the lessee for the replacement or repair of facilities due to fire or other casualty including payments for insurance to provide reimbursement for losses or payments to a public or private entity for protection of such property from damage or loss or for alterations or additions made necessary by an action of government taken after the date of the execution of the lease or agreement; (iii) improvements added to publicly owned property by a sublessee under an agreement executed prior to January 1, 1976, which have been taxed as personal property of the sublessee prior to January 1, 1976, or improvements made by a sublessee of the same lessee under a similar agreement executed prior to January 1, 1976, and such improvements are taxable to the sublessee as personal property; (iv) improvements added to publicly owned property if such improvements are being taxed as personal property to any person.
(e) Any prepaid contract rent is considered to have been paid in the year due and not in the year actually paid with respect to prepayment for a period of more than one year. Expenditures for improvements with a useful life of more than one year which are included as part of contract rent must be treated as prepaid contract rent and prorated over the useful life of the improvement or the remaining term of the lease or agreement if the useful life is in excess of the remaining term of the lease or agreement. Rent prepaid prior to January 1, 1976, must be prorated from the date of prepayment.
(f) With respect to a "product lease," the value is that value determined at the time of sale under terms of the lease.
(g) If it is determined by the department of ((revenue))taxation, upon examination of a lessee's accounts or those of a lessor of publicly owned property, that a lessee is occupying or using publicly owned property in such a manner as to create a leasehold interest and that such leasehold interest has not been established through competitive bidding, or negotiated in accordance with statutory requirements regarding the rent payable, or negotiated under circumstances, established by public record, clearly showing that the contract rent was the maximum attainable by the lessor, the department may establish a taxable rent computation for use in determining the tax payable under authority granted in this chapter based upon the following criteria: (i) Consideration must be given to rental being paid to other lessors by lessees of similar property for similar purposes over similar periods of time; (ii) consideration must be given to what would be considered a fair rate of return on the market value of the property leased less reasonable deductions for any restrictions on use, special operating requirements or provisions for concurrent use by the lessor, another person or the general public.
(3) "Product lease" as used in this chapter means a lease of property for use in the production of agricultural or marine products, not including the production of marijuana as defined in RCW
69.50.101, to the extent that such lease provides for the contract rent to be paid by the delivery of a stated percentage of the production of such agricultural or marine products to the credit of the lessor or the payment to the lessor of a stated percentage of the proceeds from the sale of such products.
(4) "Renegotiated" means a change in the lease agreement which changes the agreed time of possession, restrictions on use, the rate of the cash rental or of any other consideration payable by the lessee to or for the benefit of the lessor, other than any such change required by the terms of the lease or agreement. In addition "renegotiated" means a continuation of possession by the lessee beyond the date when, under the terms of the lease agreement, the lessee had the right to vacate the premises without any further liability to the lessor.
(5) "City" means any city or town.
(6) "Products" includes natural resource products such as cut or picked evergreen foliage, Cascara bark, wild edible mushrooms, native ornamental trees and shrubs, ore and minerals, natural gas, geothermal water and steam, and forage removed through the grazing of livestock.
(7) "Publicly owned, or specified privately owned, real or personal property" includes real or personal property:
(a) Owned in fee or held in trust by a public entity and exempt from property tax under the laws or Constitution of this state or the Constitution of the United States;
(b) Owned by a federally recognized Indian tribe in the state and exempt from property tax under RCW
84.36.010;
(c) Owned by a nonprofit fair association exempt from property tax under RCW
84.36.480(2), but only with respect to that portion of the fair's property subject to the tax imposed in this chapter pursuant to RCW
84.36.480(2)(b); or
(d) Owned by a community center exempt from property tax under RCW
84.36.010.
Sec. 271. RCW
82.29A.040 and 2015 3rd sp.s. c 6 s 2006 are each amended to read as follows:
(1) The legislative body of any county or city is hereby authorized to levy and collect a leasehold excise tax on the act or privilege of occupying or using publicly owned, or specified privately owned, real or personal property through a leasehold interest within the territorial limits of such county or city. The tax levied by a county under authority of this section shall not exceed six percent and the tax levied by a city shall not exceed four percent of taxable rent. However, any county ordinance levying such tax shall contain a provision allowing a credit against the county tax for the full amount of any city tax imposed upon the same taxable event.
(2) The department of ((revenue))taxation shall perform the collection of such taxes on behalf of such county or city.
Sec. 272. RCW
82.29A.050 and 1992 c 206 s 6 are each amended to read as follows:
(1) The leasehold excise taxes provided for in RCW
82.29A.030 and
82.29A.040 shall be paid by the lessee to the lessor and the lessor shall collect such tax and remit the same to the department of ((
revenue))
taxation. The tax shall be payable at the same time as payments are due to the lessor for use of the property from which the leasehold interest arises, and in the case of payment of contract rent to a person other than the lessor, at the time of payment. The tax payment shall be accompanied by such information as the department of ((
revenue))
taxation may require. In the case of prepaid contract rent the payment may be prorated in accordance with instructions of the department of ((
revenue))
taxation and the prorated portion of the tax shall be due, one-half not later than May 31 and the other half not later than November 30 each year.
(2) The lessor receiving taxes payable under the provisions of this chapter shall remit the same together with a return provided by the department, to the department of ((revenue))taxation on or before the last day of the month following the month in which the tax is collected. The department may relieve any taxpayer or class of taxpayers from the obligation of filing monthly returns and may require the return to cover other reporting periods, but in no event shall returns be filed for a period greater than one year. The lessor shall be fully liable for collection and remittance of the tax. The amount of tax until paid by the lessee to the lessor shall constitute a debt from the lessee to the lessor. The tax required by this chapter shall be stated separately from contract rent, and if not so separately stated for purposes of determining the tax due from the lessee to the lessor and from the lessor to the department, the contract rent does not include the tax imposed by this chapter. Where a lessee has failed to pay to the lessor the tax imposed by this chapter and the lessor has not paid the amount of the tax to the department, the department may, in its discretion, proceed directly against the lessee for collection of the tax: PROVIDED, That taxes due where contract rent has not been paid shall be reported by the lessor to the department and the lessee alone shall be liable for payment of the tax to the department.
(3) Each person having a leasehold interest subject to the tax provided for in this chapter arising out of a lease of federally owned or federal trust lands shall report and remit the tax due directly to the department of ((revenue))taxation in the same manner and at the same time as the lessor would be required to report and remit the tax if such lessor were a state public entity.
Sec. 273. RCW
82.29A.060 and 1994 c 95 s 1 are each amended to read as follows:
(1) All administrative provisions in chapters
82.02 and
82.32 RCW shall be applicable to taxes imposed pursuant to this chapter.
(2) A lessee, or a sublessee in the case where the sublessee is responsible for paying the tax imposed under this chapter, of property used for residential purposes may petition the county board of equalization for a change in appraised value when the department of ((
revenue))
taxation establishes taxable rent under RCW
82.29A.020(2)(b) based on an appraisal done by the county assessor at the request of the department. The petition must be on forms prescribed or approved by the department of ((
revenue))
taxation and any petition not conforming to those requirements or not properly completed shall not be considered by the board. The petition must be filed with the board within the time period set forth in RCW
84.40.038. A decision of the board of equalization may be appealed by the taxpayer to the board of tax appeals as provided in RCW
84.08.130.
A sublessee, in the case where the sublessee is responsible for paying the tax imposed under this chapter, of property used for residential purposes may petition the department for a change in taxable rent when the department of ((
revenue))
taxation establishes taxable rent under RCW
82.29A.020(2)(b).
Any change in tax resulting from an appeal under this subsection shall be allocated to the lessee or sublessee responsible for paying the tax.
(3) This section shall not authorize the issuance of any levy upon any property owned by the public lessor.
(4) In selecting leasehold excise tax returns for audit the department of ((
revenue))
taxation shall give priority to any return an audit of which is specifically requested in writing by the county assessor or treasurer or other chief financial officer of any city or county affected by such return. Notwithstanding the provisions of RCW
82.32.330, findings of fact and determinations of the amount of taxable rent made pursuant to the provisions of this chapter shall be open to public inspection at all reasonable times.
Sec. 274. RCW
82.29A.070 and 1975-'76 2nd ex.s. c 61 s 7 are each amended to read as follows:
All moneys received by the department of ((
revenue))
taxation from taxes levied under provisions of RCW
82.29A.030 shall be transmitted to the state treasurer and deposited in the general fund.
Sec. 275. RCW
82.29A.080 and 2008 c 86 s 401 are each amended to read as follows:
The counties and cities shall contract, prior to the effective date of an ordinance imposing a leasehold excise tax, with the department of ((
revenue))
taxation for administration and collection. The department of ((
revenue))
taxation shall deduct a percentage amount, as provided by such contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by RCW
82.29A.040, which is collected by the department of ((
revenue))
taxation, must be remitted to the state treasurer who shall deposit the funds in the local leasehold excise tax account hereby created in the state treasury. Moneys in the local leasehold excise tax account may be spent only for distribution to counties and cities imposing a leasehold excise tax.
Sec. 276. RCW
82.29A.130 and 2017 3rd sp.s. c 37 s 1303 are each amended to read as follows:
The following leasehold interests are exempt from taxes imposed pursuant to RCW
82.29A.030 and
82.29A.040:
(1) All leasehold interests constituting a part of the operating properties of any public utility which is assessed and taxed as a public utility pursuant to chapter
84.12 RCW.
(2) All leasehold interests in facilities owned or used by a school, college or university which leasehold provides housing for students and which is otherwise exempt from taxation under provisions of RCW
84.36.010 and
84.36.050.
(3) All leasehold interests of subsidized housing where the fee ownership of such property is vested in the government of the United States, or the state of Washington or any political subdivision thereof but only if income qualification exists for such housing.
(4) All leasehold interests used for fair purposes of a nonprofit fair association that sponsors or conducts a fair or fairs which receive support from revenues collected pursuant to RCW
67.16.100 and allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States, the state of Washington or any of its political subdivisions. However, this exemption does not apply to the leasehold interest of any sublessee of such nonprofit fair association if such leasehold interest would be taxable if it were the primary lease.
(5) All leasehold interests in any property of any public entity used as a residence by an employee of that public entity who is required as a condition of employment to live in the publicly owned property.
(6) All leasehold interests held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States and which are not subleased to other than to a lessee which would qualify pursuant to this chapter, RCW
84.36.451 and
84.40.175.
(7) All leasehold interests in any real property of any Indian or Indian tribe, band, or community that is held in trust by the United States or is subject to a restriction against alienation imposed by the United States. However, this exemption applies only where it is determined that contract rent paid is greater than or equal to ninety percent of fair market rental, to be determined by the department of ((
revenue))
taxation using the same criteria used to establish taxable rent in RCW
82.29A.020(2)(g).
(8) All leasehold interests for which annual taxable rent is less than two hundred fifty dollars per year. For purposes of this subsection leasehold interests held by the same lessee in contiguous properties owned by the same lessor are deemed a single leasehold interest.
(9) All leasehold interests which give use or possession of the leased property for a continuous period of less than thirty days: PROVIDED, That for purposes of this subsection, successive leases or lease renewals giving substantially continuous use of possession of the same property to the same lessee are deemed a single leasehold interest: PROVIDED FURTHER, That no leasehold interest is deemed to give use or possession for a period of less than thirty days solely by virtue of the reservation by the public lessor of the right to use the property or to allow third parties to use the property on an occasional, temporary basis.
(10) All leasehold interests under month-to-month leases in residential units rented for residential purposes of the lessee pending destruction or removal for the purpose of constructing a public highway or building.
(11) All leasehold interests in any publicly owned real or personal property to the extent such leasehold interests arises solely by virtue of a contract for public improvements or work executed under the public works statutes of this state or of the United States between the public owner of the property and a contractor.
(12) All leasehold interests that give use or possession of state adult correctional facilities for the purposes of operating correctional industries under RCW
72.09.100.
(13) All leasehold interests used to provide organized and supervised recreational activities for persons with disabilities of all ages in a camp facility and for public recreational purposes by a nonprofit organization, association, or corporation that would be exempt from property tax under RCW
84.36.030(1) if it owned the property. If the publicly owned property is used for any taxable purpose, the leasehold excise taxes set forth in RCW
82.29A.030 and
82.29A.040 must be imposed and must be apportioned accordingly.
(14) All leasehold interests in the public or entertainment areas of a baseball stadium with natural turf and a retractable roof or canopy that is in a county with a population of over one million, that has a seating capacity of over forty thousand, and that is constructed on or after January 1, 1995. "Public or entertainment areas" include ticket sales areas, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality and stadium club areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas and suites, the playing field, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include locker rooms or private offices exclusively used by the lessee.
(15) All leasehold interests in the public or entertainment areas of a stadium and exhibition center, as defined in RCW
36.102.010, that is constructed on or after January 1, 1998. For the purposes of this subsection, "public or entertainment areas" has the same meaning as in subsection (14) of this section, and includes exhibition areas.
(16) All leasehold interests in public facilities districts, as provided in chapter
36.100 or
35.57 RCW.
(17) All leasehold interests in property that is: (a) Owned by the United States government or a municipal corporation; (b) listed on any federal or state register of historical sites; and (c) wholly contained within a designated national historic reserve under 16 U.S.C. Sec. 461.
(18) All leasehold interests in the public or entertainment areas of an amphitheater if a private entity is responsible for one hundred percent of the cost of constructing the amphitheater which is not reimbursed by the public owner, both the public owner and the private lessee sponsor events at the facility on a regular basis, the lessee is responsible under the lease or agreement to operate and maintain the facility, and the amphitheater has a seating capacity of over seventeen thousand reserved and general admission seats and is in a county that had a population of over three hundred fifty thousand, but less than four hundred twenty-five thousand when the amphitheater first opened to the public.
For the purposes of this subsection, "public or entertainment areas" include box offices or other ticket sales areas, entrance gates, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas including lawn seating areas and suites, stages, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include office areas used predominately by the lessee.
(19) All leasehold interests in real property used for the placement of military housing meeting the requirements of RCW
84.36.665.
(20) All leasehold interests in facilities owned or used by a community college or technical college, which leasehold interest provides:
(a) Food services for students, faculty, and staff;
(b) The operation of a bookstore on campus; or
(c) Maintenance, operational, or administrative services to the community college or technical college.
Sec. 277. RCW
82.29A.135 and 2018 c 164 s 9 are each amended to read as follows:
(1) For the purposes of this section, "anaerobic digester" has the same meaning as provided in RCW
82.08.900.
(2) All leasehold interests in buildings, machinery, equipment, and other personal property which are used primarily for the operation of an anaerobic digester, the land upon which this property is located, and land that is reasonably necessary in the operation of an anaerobic digester are exempt from leasehold taxes for a period of six years from the date on which the facility or the addition to the existing facility becomes operational.
(3) Claims for exemptions authorized by this section must be filed with the department of ((revenue))taxation on forms prescribed by the department of ((revenue))taxation and furnished by the department of ((revenue))taxation. Once filed, the exemption is valid for six assessment years following the date on which the facility or the addition to the existing facility becomes operational and may not be renewed. The department of ((revenue))taxation must verify and approve claims as the department of ((revenue))taxation determines to be justified and in accordance with this section. No claims may be filed after December 31, 2024.
(4) The department of ((
revenue))
taxation may promulgate such rules, pursuant to chapter
34.05 RCW, as are necessary to properly administer this section.
Sec. 278. RCW
82.29A.140 and 1975-'76 2nd ex.s. c 61 s 16 are each amended to read as follows:
The department of ((
revenue))
taxation of the state of Washington shall make such rules and regulations consistent with chapter
34.05 RCW and the provisions of this chapter, RCW
84.36.451 and
84.40.175 as shall be necessary to permit its effective administration including procedures for collection and remittance of taxes imposed by this chapter, and for intervention by the cities and counties levying under RCW
82.29A.040, in proceedings involving such levies and taxes collected pursuant thereto.
Sec. 279. RCW
82.32.030 and 2017 c 323 s 505 are each amended to read as follows:
(1) Except as provided in subsections (2) and (3) of this section, if any person engages in any business or performs any act upon which a tax is imposed by the preceding chapters, he or she must, under such rules as the department prescribes, apply for and obtain from the department a registration certificate. Such registration certificate is personal and nontransferable and is valid as long as the taxpayer continues in business and pays the tax accrued to the state. In case business is transacted at two or more separate places by one taxpayer, a separate registration certificate for each place at which business is transacted with the public is required. Each certificate must be numbered and must show the name, residence, and place and character of business of the taxpayer and such other information as the department of ((revenue))taxation deems necessary and must be posted in a conspicuous place at the place of business for which it is issued. Where a place of business of the taxpayer is changed, the taxpayer must return to the department the existing certificate, and a new certificate will be issued for the new place of business. No person required to be registered under this section may engage in any business taxable hereunder without first being so registered. The department, by rule, may provide for the issuance of certificates of registration to temporary places of business.
(2) Unless the person is a dealer as defined in RCW
9.41.010, registration under this section is not required if the following conditions are met:
(a) A person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter
82.04 RCW, is less than twelve thousand dollars per year;
(b) The person's gross income of the business from all activities taxable under chapter
82.16 RCW is less than twelve thousand dollars per year;
(c) The person is not required to collect or pay to the department of ((revenue))taxation any other tax or fee that the department is authorized to collect; and
(d) The person is not otherwise required to obtain a license subject to the business license application procedure provided in chapter
19.02 RCW.
(3) All persons who agree to collect and remit sales and use tax to the department under the agreement must register through the central registration system authorized under the agreement. Persons required to register under subsection (1) of this section are not relieved of that requirement because of registration under this subsection (3).
(4) Persons registered under subsection (3) of this section who are not required to register under subsection (1) of this section and who are not otherwise subject to the requirements of chapter
19.02 RCW are not subject to the fees imposed by the department under the authority of RCW
19.02.075.
Sec. 280. RCW
82.32.033 and 2007 c 111 s 105 are each amended to read as follows:
(1) A promoter of a special event within the state of Washington shall not permit a vendor to make or solicit retail sales of tangible personal property or services at the special event unless the promoter makes a good faith effort to obtain verification that the vendor has obtained a certificate of registration from the department.
(2) A promoter of a special event shall:
(a) Keep, in addition to the records required under RCW
82.32.070, a record of the dates and place of each special event, and the name, address, and registration certificate number of each vendor permitted to make or solicit retail sales of tangible personal property or services at the special event. The record of the date and place of a special event, and the name, address, and registration certificate number of each vendor at the event shall be preserved for a period of one year from the date of a special event; and
(b) Provide to the department, within twenty days of receipt of a written request from the department, a list of vendors permitted to make or solicit retail sales of tangible personal property or services. The list shall be in a form and contain such information as the department may require, and shall include the date and place of the event, and the name, address, and registration certificate number of each vendor.
(3) If a promoter fails to make a good faith effort to comply with the provisions of this section, the promoter is liable for the penalties provided in this subsection (3).
(a) If a promoter fails to make a good faith effort to comply with the provisions of subsection (1) of this section, the department shall impose a penalty of one hundred dollars for each vendor permitted to make or solicit retail sales of tangible personal property or services at the special event.
(b) If a promoter fails to make a good faith effort to comply with the provisions of subsection (2)(b) of this section, the department shall impose a penalty of:
(i) Two hundred fifty dollars if the information requested is not received by the department within twenty days of the department's written request; and
(ii) One hundred dollars for each vendor for whom the information as required by subsection (2)(b) of this section is not provided to the department.
(4) The aggregate of penalties imposed under subsection (3) of this section may not exceed two thousand five hundred dollars for a special event if the promoter has not previously been penalized under this section. Under no circumstances is a promoter liable for sales tax or business and occupation tax not remitted to the department by a vendor at a special event.
(5) The department shall notify a promoter by mail, or electronically as provided in RCW
82.32.135, of any penalty imposed under this section, and the penalty shall be due within thirty days from the date of the notice. If any penalty imposed under this section is not received by the department by the due date, there shall be assessed interest on the unpaid amount beginning the day following the due date until the penalty is paid in full. The rate of interest shall be computed on a daily basis on the amount of outstanding penalty at the rate as computed under RCW
82.32.050(2). The rate computed shall be adjusted annually in the same manner as provided in RCW
82.32.050(1)(c).
(6) For purposes of this section:
(a) "Promoter" means a person who organizes, operates, or sponsors a special event and who contracts with vendors for participation in the special event.
(b) "Special event" means an entertainment, amusement, recreational, educational, or marketing event, whether held on a regular or irregular basis, at which more than one vendor makes or solicits retail sales of tangible personal property or services. The term includes, but is not limited to: Auto shows, recreational vehicle shows, boat shows, home shows, garden shows, hunting and fishing shows, stamp shows, comic book shows, sports memorabilia shows, craft shows, art shows, antique shows, flea markets, exhibitions, festivals, concerts, swap meets, bazaars, carnivals, athletic contests, circuses, fairs, or other similar activities. "Special event" does not include an event that is organized for the exclusive benefit of any nonprofit organization as defined in RCW
82.04.3651. An event is organized for the exclusive benefit of a nonprofit organization if all of the gross proceeds of retail sales of all vendors at the event inure to the benefit of the nonprofit organization on whose behalf the event is being held. "Special event" does not include athletic contests that involve competition between teams, when such competition consists of more than five contests in a calendar year by at least one team at the same facility or site.
(c) "Vendor" means a person who, at a special event, makes or solicits retail sales of tangible personal property or services.
(7) "Good faith effort to comply" and "good faith effort to obtain" may be shown by, but is not limited to, circumstances where a promoter:
(a) Includes a statement on all written contracts with its vendors that a valid registration certificate number issued by the department of ((revenue))taxation is required for participation in the special event and requires vendors to indicate their registration certificate number on these contracts; and
(b) Provides the department with a list of vendors and their associated registration certificate numbers as provided in subsection (2)(b) of this section.
(8) This section does not apply to:
(a) A special event whose promoter does not charge more than two hundred dollars for a vendor to participate in a special event;
(b) A special event whose promoter charges a percentage of sales instead of, or in addition to, a flat charge for a vendor to participate in a special event if the promoter, in good faith, believes that no vendor will pay more than two hundred dollars to participate in the special event; or
(c) A person who does not organize, operate, or sponsor a special event, but only provides a venue, supplies, furnishings, fixtures, equipment, or services to a promoter of a special event.
Sec. 281. RCW
82.32.045 and 2010 1st sp.s. c 23 s 1103 are each amended to read as follows:
(1) Except as otherwise provided in this chapter, payments of the taxes imposed under chapters
82.04, 82.08, 82.12, 82.14, and
82.16 RCW, along with reports and returns on forms prescribed by the department, are due monthly within twenty-five days after the end of the month in which the taxable activities occur.
(2) The department of ((revenue))taxation may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. For these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.
(3) The department of ((revenue))taxation may also require verified annual returns from any taxpayer, setting forth such additional information as it may deem necessary to correctly determine tax liability.
(4) Notwithstanding subsections (1) and (2) of this section, the department may relieve any person of the requirement to file returns if the following conditions are met:
(a) The person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter
82.04 RCW, is less than:
(i) Twenty-eight thousand dollars per year; or
(ii) Forty-six thousand six hundred sixty-seven dollars per year for persons generating at least fifty percent of their taxable amount from activities taxable under RCW
82.04.255,
82.04.290(2)(a), and
82.04.285;
(b) The person's gross income of the business from all activities taxable under chapter
82.16 RCW is less than twenty-four thousand dollars per year; and
(c) The person is not required to collect or pay to the department of ((revenue))taxation any other tax or fee which the department is authorized to collect.
Sec. 282. RCW
82.32.050 and 2008 c 181 s 501 are each amended to read as follows:
(1) If upon examination of any returns or from other information obtained by the department it appears that a tax or penalty has been paid less than that properly due, the department shall assess against the taxpayer such additional amount found to be due and shall add thereto interest on the tax only. The department shall notify the taxpayer by mail, or electronically as provided in RCW
82.32.135, of the additional amount and the additional amount shall become due and shall be paid within thirty days from the date of the notice, or within such further time as the department may provide.
(a) For tax liabilities arising before January 1, 1992, interest shall be computed at the rate of nine percent per annum from the last day of the year in which the deficiency is incurred until the earlier of December 31, 1998, or the date of payment. After December 31, 1998, the rate of interest shall be variable and computed as provided in subsection (2) of this section. The rate so computed shall be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(b) For tax liabilities arising after December 31, 1991, the rate of interest shall be variable and computed as provided in subsection (2) of this section from the last day of the year in which the deficiency is incurred until the date of payment. The rate so computed shall be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(c) Interest imposed after December 31, 1998, shall be computed from the last day of the month following each calendar year included in a notice, and the last day of the month following the final month included in a notice if not the end of a calendar year, until the due date of the notice. If payment in full is not made by the due date of the notice, additional interest shall be computed until the date of payment. The rate of interest shall be variable and computed as provided in subsection (2) of this section. The rate so computed shall be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(2) For the purposes of this section, the rate of interest to be charged to the taxpayer shall be an average of the federal short-term rate as defined in 26 U.S.C. Sec. 1274(d) plus two percentage points. The rate set for each new year shall be computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually. That average shall be calculated using the rates from four months: January, April, and July of the calendar year immediately preceding the new year, and October of the previous preceding year.
(3) During a state of emergency declared under RCW
43.06.010(12), the department, on its own motion or at the request of any taxpayer affected by the emergency, may extend the due date of any assessment or correction of an assessment for additional taxes, penalties, or interest as the department deems proper.
(4) No assessment or correction of an assessment for additional taxes, penalties, or interest due may be made by the department more than four years after the close of the tax year, except (a) against a taxpayer who has not registered as required by this chapter, (b) upon a showing of fraud or of misrepresentation of a material fact by the taxpayer, or (c) where a taxpayer has executed a written waiver of such limitation. The execution of a written waiver shall also extend the period for making a refund or credit as provided in RCW
82.32.060(2).
(5) For the purposes of this section, "return" means any document a person is required by the state of Washington to file to satisfy or establish a tax or fee obligation that is administered or collected by the department of ((revenue))taxation and that has a statutorily defined due date.
Sec. 283. RCW
82.32.070 and 2015 c 86 s 310 are each amended to read as follows:
(1) Every taxpayer liable for any tax collected by the department must keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of any tax for which the taxpayer may be liable. Such records must include copies of all of the taxpayer's federal income tax and state tax returns and reports. All of the taxpayer's books, records, and invoices must be open for examination at any time by the department of ((revenue))taxation. In the case of an out-of-state taxpayer that does not keep the necessary books and records within this state, it is sufficient if the taxpayer produces within the state such books and records as are required by the department of ((revenue))taxation, or permits the examination by an agent authorized or designated by the department of ((revenue))taxation at the place where such books and records are kept. Any taxpayer who fails to comply with the requirements of this section is forever barred from questioning, in any court action or proceedings, the correctness of any assessment of taxes made by the department of ((revenue))taxation based upon any period for which such books, records, and invoices have not been so kept and preserved.
(2) A person liable for any fee or tax imposed by chapters
82.04 through
82.27 RCW who contracts with another person or entity for work subject to chapter
18.27 or
19.28 RCW must obtain and preserve a record of the unified business identifier account number for the person or entity performing the work. Failure to obtain or maintain the record is subject to RCW
39.06.010 and to a penalty determined by the director, but not to exceed two hundred fifty dollars. The department must notify the taxpayer and collect the penalty in the same manner as penalties under RCW
82.32.100.
Sec. 284. RCW
82.32.090 and 2015 3rd sp.s. c 5 s 401 are each amended to read as follows:
(1) If payment of any tax due on a return to be filed by a taxpayer is not received by the department of ((revenue))taxation by the due date, there is assessed a penalty of nine percent of the amount of the tax; and if the tax is not received on or before the last day of the month following the due date, there is assessed a total penalty of nineteen percent of the amount of the tax under this subsection; and if the tax is not received on or before the last day of the second month following the due date, there is assessed a total penalty of twenty-nine percent of the amount of the tax under this subsection. No penalty so added may be less than five dollars.
(2) If the department of ((revenue))taxation determines that any tax has been substantially underpaid, there is assessed a penalty of five percent of the amount of the tax determined by the department to be due. If payment of any tax determined by the department to be due is not received by the department by the due date specified in the notice, or any extension thereof, there is assessed a total penalty of fifteen percent of the amount of the tax under this subsection; and if payment of any tax determined by the department to be due is not received on or before the thirtieth day following the due date specified in the notice of tax due, or any extension thereof, there is assessed a total penalty of twenty-five percent of the amount of the tax under this subsection. No penalty so added may be less than five dollars. As used in this section, "substantially underpaid" means that the taxpayer has paid less than eighty percent of the amount of tax determined by the department to be due for all of the types of taxes included in, and for the entire period of time covered by, the department's examination, and the amount of underpayment is at least one thousand dollars.
(3) If a warrant is issued by the department of ((revenue))taxation for the collection of taxes, increases, and penalties, there is added thereto a penalty of ten percent of the amount of the tax, but not less than ten dollars.
(4) If the department finds that a person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the department a registration certificate as required by RCW
82.32.030, the department must impose a penalty of five percent of the amount of tax due from that person for the period that the person was not registered as required by RCW
82.32.030. The department may not impose the penalty under this subsection (4) if a person who has engaged in business taxable under this title without first having registered as required by RCW
82.32.030, prior to any notification by the department of the need to register, obtains a registration certificate from the department.
(5) If the department finds that a taxpayer has disregarded specific written instructions as to reporting or tax liabilities, or willfully disregarded the requirement to file returns or remit payment electronically, as provided by RCW
82.32.080, the department must add a penalty of ten percent of the amount of the tax that should have been reported and/or paid electronically or the additional tax found due if there is a deficiency because of the failure to follow the instructions. A taxpayer disregards specific written instructions when the department has informed the taxpayer in writing of the taxpayer's tax obligations and the taxpayer fails to act in accordance with those instructions unless, in the case of a deficiency, the department has not issued final instructions because the matter is under appeal pursuant to this chapter or departmental regulations. The department may not assess the penalty under this section upon any taxpayer who has made a good faith effort to comply with the specific written instructions provided by the department to that taxpayer. A taxpayer will be considered to have made a good faith effort to comply with specific written instructions to file returns and/or remit taxes electronically only if the taxpayer can show good cause, as defined in RCW
82.32.080, for the failure to comply with such instructions. A taxpayer will be considered to have willfully disregarded the requirement to file returns or remit payment electronically if the department has mailed or otherwise delivered the specific written instructions to the taxpayer on at least two occasions. Specific written instructions may be given as a part of a tax assessment, audit, determination, closing agreement, or other written communication, provided that such specific written instructions apply only to the taxpayer addressed or referenced on such communication. Any specific written instructions by the department must be clearly identified as such and must inform the taxpayer that failure to follow the instructions may subject the taxpayer to the penalties imposed by this subsection. If the department determines that it is necessary to provide specific written instructions to a taxpayer that does not comply with the requirement to file returns or remit payment electronically as provided in RCW
82.32.080, the specific written instructions must provide the taxpayer with a minimum of forty-five days to come into compliance with its electronic filing and/or payment obligations before the department may impose the penalty authorized in this subsection.
(6) If the department finds that all or any part of a deficiency resulted from engaging in a disregarded transaction, as described in RCW
82.32.655(3), the department must assess a penalty of thirty-five percent of the additional tax found to be due as a result of engaging in a transaction disregarded by the department under RCW
82.32.655(2). The penalty provided in this subsection may be assessed together with any other applicable penalties provided in this section on the same tax found to be due, except for the evasion penalty provided in subsection (7) of this section. The department may not assess the penalty under this subsection if, before the department discovers the taxpayer's use of a transaction described under RCW
82.32.655(3), the taxpayer discloses its participation in the transaction to the department.
(7) If the department finds that all or any part of the deficiency resulted from an intent to evade the tax payable hereunder, a further penalty of fifty percent of the additional tax found to be due must be added.
(8) The penalties imposed under subsections (1) through (4) of this section can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law.
(9) The department may not impose the evasion penalty in combination with the penalty for disregarding specific written instructions or the penalty provided in subsection (6) of this section on the same tax found to be due.
(10) For the purposes of this section, "return" means any document a person is required by the state of Washington to file to satisfy or establish a tax or fee obligation that is administered or collected by the department, and that has a statutorily defined due date.
Sec. 285. RCW
82.32.110 and 1989 c 373 s 27 are each amended to read as follows:
The department of ((revenue))taxation or its duly authorized agent may examine any books, papers, records, or other data, or stock of merchandise bearing upon the amount of any tax payable or upon the correctness of any return, or for the purpose of making a return where none has been made, or in order to ascertain whether a return should be made; and may require the attendance of any person at a time and place fixed in a summons served by any sheriff in the same manner as a subpoena is served in a civil case, or served in like manner by an agent of the department of ((revenue))taxation.
The persons summoned may be required to testify and produce any books, papers, records, or data required by the department with respect to any tax, or the liability of any person therefor.
The director of the department of ((revenue))taxation, or any duly authorized agent thereof, shall have power to administer an oath to the person required to testify; and any person giving false testimony after the administration of such oath shall be guilty of perjury in the first degree.
If any person summoned as a witness before the department, or its authorized agent, fails or refuses to obey the summons, or refuses to testify or answer any material questions, or to produce any book, record, paper, or data when required to do so, the person is subject to proceedings for contempt, and the department shall thereupon institute contempt of court proceedings in the superior court of Thurston county or of the county in which such person resides.
Sec. 286. RCW
82.32.120 and 2013 c 23 s 323 are each amended to read as follows:
All officers empowered by law to administer oaths, the director of the department of ((revenue))taxation, and such officers as he or she may designate shall have the power to administer an oath to any person or to take the acknowledgment of any person with respect to any return or report required by law or the rules and regulations of the department of ((revenue))taxation.
Sec. 287. RCW
82.32.140 and 2008 c 181 s 503 are each amended to read as follows:
(1) Whenever any taxpayer quits business, or sells out, exchanges, or otherwise disposes of more than fifty percent of the fair market value of either its tangible or intangible assets, any tax payable hereunder shall become immediately due and payable, and such taxpayer shall, within ten days thereafter, make a return and pay the tax due, unless an extension is granted under RCW
82.32.080.
(2) Any person who becomes a successor shall withhold from the purchase price a sum sufficient to pay any tax due from the taxpayer until such time as the taxpayer shall produce a receipt from the department of ((revenue))taxation showing payment in full of any tax due or a certificate that no tax is due. If any tax is not paid by the taxpayer within ten days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of the full amount of tax. If the fair market value of the assets acquired by a successor is less than fifty thousand dollars, the successor's liability for payment of the unpaid tax is limited to the fair market value of the assets acquired from the taxpayer. The burden of establishing the fair market value of the assets acquired is on the successor.
(3) The payment of any tax by a successor shall, to the extent thereof, be deemed a payment upon the purchase price; and if such payment is greater in amount than the purchase price the amount of the difference shall become a debt due the successor from the taxpayer.
(4) No successor shall be liable for any tax due from the person from whom the successor has acquired a business or stock of goods if the successor gives written notice to the department of ((
revenue))
taxation of such acquisition and no assessment is issued by the department of ((
revenue))
taxation within six months of receipt of such notice against the former operator of the business and a copy thereof mailed to the successor or provided electronically to the successor in accordance with RCW
82.32.135.
Sec. 288. RCW
82.32.200 and 1996 c 149 s 4 are each amended to read as follows:
(1) When any assessment or additional assessment has been made, the taxpayer may obtain a stay of collection, under such circumstances and for such periods as the department of ((revenue))taxation may by general regulation provide, of the whole or any part thereof, by filing with the department a bond in an amount, not exceeding twice the amount on which stay is desired, and with sureties as the department deems necessary, conditioned for the payment of the amount of the assessments, collection of which is stayed by the bond, together with the interest thereon at the rate of one percent of the amount of such assessment for each thirty days or portion thereof from the date the bond is filed until the date of payment.
(2) Interest imposed under this section after January 1, 1997, shall be computed on a daily basis on the amount of tax at the rate as computed under RCW
82.32.050(2). The rate so computed shall be adjusted on the first day of January of each year. Interest for bonds filed before January 1, 1997, but outstanding after January 1, 1997, shall not be recalculated but shall remain at one percent per each thirty days or portion thereof.
Sec. 289. RCW
82.32.215 and 2013 c 309 s 1 are each amended to read as follows:
(1) The department may, by order, revoke the certificate of registration of a taxpayer for any of the following reasons:
(a) A warrant issued under this chapter is not paid within thirty days after it has been filed with the clerk of the superior court;
(b) The taxpayer is delinquent, for three consecutive reporting periods, in the transmission to the department of retail sales tax collected by the taxpayer; or
(c)(i)(A) The taxpayer was convicted of violating RCW
82.32.290(4) and continues to engage in business without fully complying with RCW
82.32.290(4)(b) (i) through (iii); or
(B) A person convicted of violating RCW
82.32.290(4) is an owner, officer, director, partner, trustee, member, or manager of the taxpayer, and the person and taxpayer have not fully complied with RCW
82.32.290(4)(b) (i) through (iii).
(ii) For the purposes of this subsection (1)(c), the terms "manager," "member," and "officer" mean the same as defined in RCW
82.32.145.
(2) If the department enters a final order revoking a taxpayer's certificate of registration, a copy of the order must, if practicable, be posted in a conspicuous place at the main entrance to the taxpayer's place of business. The department may also post a final order revoking a taxpayer's certificate of registration in any public facility, such as a courthouse or post office, as may be allowed by the public entity that owns or occupies the facility. A final order posted at the taxpayer's place of business must remain posted until such time as the taxpayer is eligible to have its certificate of registration reinstated as provided in subsection (3) of this section or has abandoned the premises. A taxpayer will not be deemed to have abandoned the premises if the taxpayer or any person with an ownership interest in the taxpayer continues to operate a substantially similar type of business under a different legal entity at the same location.
(3) Any certificate revoked under subsection (1) of this section may not be reinstated, nor may a new certificate of registration be issued to the taxpayer, until:
(a) The amount due on the warrant has been paid, or provisions for payment satisfactory to the department have been entered, and until the taxpayer has deposited with the department security for payment of any taxes, increases, and penalties, due or which may become due in an amount and under such terms and conditions as the department of ((revenue))taxation may require, but the amount of the security may not be greater than one-half the estimated average annual liability of the taxpayer; or
(b) The taxpayer and, if applicable, the owner, officer, director, partner, trustee, member, or manager of the taxpayer who was convicted of violating RCW
82.32.290(4) are in full compliance with RCW
82.32.290(4)(b) (i) through (iii), if the certificate of registration was revoked under the provisions of subsection (1)(c) of this section.
Sec. 290. RCW
82.32.220 and 1998 c 311 s 10 are each amended to read as follows:
The department of ((revenue))taxation may issue an order of execution, pursuant to a filed warrant, directed to the sheriff of the county in which the warrant has been filed, commanding the sheriff to levy upon and sell the real and/or personal property of the taxpayer found within the sheriff's county, or so much thereof as may be necessary, for the payment of the amount of the warrant, plus the cost of executing the warrant, and return the warrant to the department of ((revenue))taxation and pay to it the money collected by virtue thereof within sixty days after the receipt of the warrant. The sheriff shall thereupon proceed upon the same in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgments of the superior court.
The sheriff shall be entitled to fees as provided by law for the sheriff's services in levying execution on a superior court judgment and the clerk shall be entitled to a filing fee as provided by law, which shall be added to the amount of the warrant.
The proceeds received from any sale shall be credited upon the amount due under the warrant and when the final amount due is received, together with interest, penalties, and costs, the judgment docket shall show the claim for taxes to be satisfied and the clerk of the court shall so note upon the docket. Any surplus received from any sale of property shall be paid to the taxpayer or to any lienholder entitled thereto. If the return on the warrant shows that the same has not been satisfied in full, the amount of the deficiency shall remain the same as a judgment against the taxpayer which may be collected in the same manner as the original amount of the warrant.
Sec. 291. RCW
82.32.230 and 1983 1st ex.s. c 55 s 11 are each amended to read as follows:
In the discretion of the department of ((revenue))taxation, an order of execution of like terms, force, and effect may be issued and directed to any agent of the department authorized to collect taxes, and in the execution thereof such agent shall have all the powers conferred by law upon sheriffs, but shall not be entitled to any fee or compensation in excess of the actual expenses paid in the performance of such duty, which shall be added to the amount of the warrant.
Sec. 292. RCW
82.32.235 and 2014 c 210 s 2 and 2014 c 97 s 104 are each reenacted and amended to read as follows:
(1) In addition to the remedies provided in this chapter the department is authorized to issue to any person, including the department, a notice and order to withhold and deliver property of any kind whatsoever when there is reason to believe that there is in the possession of such person, property which is or will become due, owing, or belonging to any taxpayer against whom a warrant has been filed.
(2) The sheriff of the county where the service is made, or his or her deputy, or any duly authorized representative of the department may personally serve the notice and order to withhold and deliver upon the person to whom it is directed or may do so by certified mail, with return receipt requested. Upon written consent of the person to be served, a notice and order to withhold and deliver issued under subsection (1) of this section may be served electronically.
(3)(a) The department is authorized to issue a notice and order to withhold and deliver to any financial institution in the form of a listing of all or a portion of the unsatisfied tax warrants filed under this chapter and outstanding warrants under RCW
49.48.086 with the clerk of the superior court of a county of the state, except tax warrants subject to a payment agreement, which is not in default, between the department and the taxpayer. The department may also issue a notice and order to withhold and deliver in the form authorized in this subsection (3)(a) to itself or any other person upon that person's written consent.
(b) The department may serve the notice and order to withhold and deliver authorized under this subsection electronically. The remedy in this subsection (3) is in addition to any other remedies authorized by law.
(c) No more than one notice and order to withhold and deliver under this subsection (3) may be served on the same person in a calendar month except upon the person's written consent.
(d) A notice and order to withhold and deliver served on a financial institution under this subsection (3) must include the federal taxpayer identification number of each taxpayer listed in the notice.
(e) For purposes of this subsection, "financial institution" means a bank, trust company, mutual savings bank, savings and loan association, or credit union authorized to do business and accept deposits in this state under state or federal law.
(f) The department may provide a financial institution relief from a notice and order to withhold and deliver in the form provided under this subsection (3) upon the request of the financial institution. The department must consider the size, customer base, and geographic location of the financial institution when considering whether to provide relief. The department must serve any financial institution so relieved under subsection (1) of this section.
(4) Any person who has been served with a notice and order to withhold and deliver under subsection (1) of this section must answer the notice within twenty days, exclusive of the day of service. Any person who has been served with a notice and order to withhold and deliver under subsection (3) of this section must answer the notice within thirty days, exclusive of the day of service. The answer must be in writing, under oath if required by the department, and include true answers to the matters inquired of in the notice. Any person served under subsection (3) of this section may answer in aggregate within thirty days, but must answer separately as to each taxpayer listed and specify any property by taxpayer which is delivered. The department must allow any person served electronically as authorized in subsection (2) or (3) of this section to answer the notice and order to withhold and deliver electronically in a format provided or approved by the department.
(5) In the event there is in the possession of any person served with a notice and order to withhold and deliver, any property which may be subject to the claim of the department, such property must be delivered immediately to the department of ((revenue))taxation or its duly authorized representative upon demand. The department must hold the property in trust for application on the indebtedness involved or for return, without interest, in accordance with final determination of liability or nonliability. Instead of delivering the property to the department or the department's duly authorized representative, the person may furnish a bond satisfactory to the department conditioned upon final determination of liability.
(6) Should any person, having been served with a notice and order to withhold and deliver, fail to answer the notice and order to withhold and deliver within the time prescribed in this section or otherwise fail to comply with the duties imposed in this section, the department may bring a proceeding, in the superior court of Thurston county or of the county in which service of the notice was made, to enforce the notice and order to withhold and deliver. The court may render judgment by default against such person for the full amount claimed by the department in the notice and order to withhold and deliver or may grant such other relief as the court deems just, together with costs.
(7) For purposes of this section, "person" has the same meaning as in RCW
82.04.030 and also includes any agency, department, or institution of the state.
Sec. 293. RCW
82.32.240 and 1994 c 221 s 69 are each amended to read as follows:
Any tax due and unpaid and all increases and penalties thereon, shall constitute a debt to the state and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies.
In all cases of probate, insolvency, assignment for the benefit of creditors, or bankruptcy, involving any taxpayer who is, or decedent who was, engaging in business, the claim of the state for said taxes and all increases and penalties thereon shall be a lien upon all real and personal property of the taxpayer, and the mere existence of such cases or conditions shall be sufficient to create such lien without any prior or subsequent action by the state, and in all such cases it shall be the duty of all administrators, executors, guardians, receivers, trustees in bankruptcy or assignees for the benefit of creditors, to notify the department of ((revenue))taxation of such administration, receivership or assignment within sixty days from the date of their appointment and qualification.
The lien provided for by this section shall attach as of the date of the assignment for the benefit of creditors or of the initiation of the probate, insolvency, or bankruptcy proceedings: PROVIDED, That this sentence shall not be construed as affecting the validity or priority of any earlier lien that may have attached previously in favor of the state under any other section of this title.
Any administrator, executor, guardian, receiver or assignee for the benefit of creditors not giving the notification as provided for above shall become personally liable for payment of the taxes and all increases and penalties thereon to the extent of the value of the property subject to administration that otherwise would have been available for the payment of such taxes, increases, and penalties by the administrator, executor, guardian, receiver, or assignee.
As used in this section, "probate" includes the nonprobate claim settlement procedure under chapter
11.42 RCW, and "executor" and "administrator" includes any notice agent acting under chapter
11.42 RCW.
Sec. 294. RCW
82.32.260 and 2013 c 23 s 325 are each amended to read as follows:
In the case of any corporation organized under the laws of this state, the courts shall not enter or sign any decree of dissolution, nor shall the secretary of state file in his or her office any certificate of dissolution, and in the case of any corporation organized under the laws of another jurisdiction and admitted to do business in this state, the secretary of state shall withhold the issuance of any certificate of withdrawal, until proof, in the form of a certificate from the department of ((revenue))taxation, has been furnished by the applicant for such dissolution or withdrawal, that every license fee, tax, increase, or penalty has been paid or provided for.
Sec. 295. RCW
82.32.270 and 2013 c 23 s 326 are each amended to read as follows:
The taxes imposed hereunder, and the returns required therefor, shall be upon a calendar year basis; but, if any taxpayer in transacting his or her business, keeps books reflecting the same on a basis other than the calendar year, he or she may, with consent of the department of ((revenue))taxation, make his or her returns, and pay taxes upon the basis of his or her accounting period as shown by the method of keeping the books of his or her business.
Sec. 296. RCW
82.32.300 and 1997 c 420 s 9 are each amended to read as follows:
The administration of this and chapters
82.04 through
82.27 RCW of this title is vested in the department of ((
revenue))
taxation which shall prescribe forms and rules of procedure for the determination of the taxable status of any person, for the making of returns and for the ascertainment, assessment and collection of taxes and penalties imposed thereunder.
The department of ((
revenue))
taxation shall make and publish rules and regulations, not inconsistent therewith, necessary to enforce provisions of this chapter and chapters
82.02 through 82.23B and
82.27 RCW, and the
state liquor ((
control))
and cannabis board shall make and publish rules necessary to enforce chapters
82.24 and
82.26 RCW, which shall have the same force and effect as if specifically included therein, unless declared invalid by the judgment of a court of record not appealed from.
The department may employ such clerks, specialists, and other assistants as are necessary. Salaries and compensation of such employees shall be fixed by the department and shall be charged to the proper appropriation for the department.
The department shall exercise general supervision of the collection of taxes and, in the discharge of such duty, may institute and prosecute such suits or proceedings in the courts as may be necessary and proper.
Sec. 297. RCW
82.32.310 and 2013 c 23 s 327 are each amended to read as follows:
When recovery is had in any suit or proceeding against an officer, agent, or employee of the department of ((revenue))taxation for any act done by him or her or for the recovery of any money exacted by or paid to him or her and by him or her paid over to the department, in the performance of his or her official duty, and the court certifies that there was probable cause for the act done by such officer, agent, or employee, or that he or she acted under the direction of the department or an officer thereof, no execution shall issue against such officer, agent, or employee, but the amount so recovered shall, upon final judgment, be paid by the department as an expense of operation.
Sec. 298. RCW
82.32.320 and 1995 c 318 s 7 are each amended to read as follows:
The department of ((revenue))taxation, on the next business day following the receipt of any payments hereunder, shall transmit them to the state treasurer, taking his or her receipt therefor. If a return or payment is submitted with less than the full amount of all taxes, interest, and penalties due, the department may allocate payments among applicable funds so as to minimize administrative costs to the extent practicable.
Sec. 299. RCW
82.32.330 and 2011 c 174 s 404 are each amended to read as follows:
(1) For purposes of this section:
(a) "Disclose" means to make known to any person in any manner whatever a return or tax information;
(b) "Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state which is filed with the department of ((revenue))taxation by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed;
(c) "Tax information" means (i) a taxpayer's identity, (ii) the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, overassessments, or tax payments, whether taken from the taxpayer's books and records or any other source, (iii) whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, (iv) a part of a written determination that is not designated as a precedent and disclosed pursuant to RCW
82.32.410, or a background file document relating to a written determination, and (v) other data received by, recorded by, prepared by, furnished to, or collected by the department of ((
revenue))
taxation with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Except as provided by RCW
82.32.410, nothing in this chapter requires any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure;
(d) "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency;
(e) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer; and
(f) "Department" means the department of ((revenue))taxation or its officer, agent, employee, or representative.
(2) Returns and tax information are confidential and privileged, and except as authorized by this section, neither the department of ((revenue))taxation nor any other person may disclose any return or tax information.
(3) This section does not prohibit the department of ((revenue))taxation from:
(a) Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:
(i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this title or chapter
83.100 RCW is a party in the proceeding;
(ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding; or
(b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter
34.05 RCW, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court;
(c) Disclosing the name of a taxpayer against whom a warrant under RCW
82.32.210 has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness within twelve months;
(d) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof;
(e) Disclosing such return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;
(f) Permitting the department of ((revenue's))taxation's records to be audited and examined by the proper state officer, his or her agents and employees;
(g) Disclosing any such return or tax information to a peace officer as defined in RCW
9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought;
(h) Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;
(i) Disclosing any such return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies, for official purposes;
(j) Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW
82.32.410;
(k) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;
(l) Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter
42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;
(m) Disclosing such return or tax information to the United States department of agriculture for the limited purpose of investigating food stamp fraud by retailers;
(n) Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the department for a filed tax warrant, judgment, or lien against the real property;
(o) Disclosing to a person against whom the department has asserted liability as a successor under RCW
82.32.140 return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded;
(p) Disclosing real estate excise tax affidavit forms filed under RCW
82.45.150 in the possession of the department, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax;
(q) Disclosing to local taxing jurisdictions the identity of sellers granted relief under RCW
82.32.430(5)(b)(i) and the period for which relief is granted;
(r) Disclosing such return or tax information to the court in respect to the department's application for a subpoena under RCW
82.32.117;
(s) Disclosing to a person against whom the department has asserted liability under RCW
83.100.120 return or tax information pertaining to that person's liability for tax under chapter
83.100 RCW;
(t) Disclosing such return or tax information to the streamlined sales tax governing board, member states of the streamlined sales tax governing board, or authorized representatives of such board or states, for the limited purposes of:
(i) Conducting on behalf of member states sales and use tax audits of taxpayers; or
(ii) Auditing certified service providers or certified automated systems providers; or
(u) Disclosing any such return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington.
(4)(a) The department may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The department may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.
(b) Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose any tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.
(c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:
(i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;
(ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or
(iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.
(d) The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed.
(e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section.
(5) Service of a subpoena issued under RCW
82.32.117 does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena under RCW
82.32.117 may disclose the existence or content of the subpoena to that person's legal counsel.
(6) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the department of ((revenue))taxation and any person acquiring knowledge of any return or tax information as provided under subsection (3) (e), (f), (g), (h), (i), or (m) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this state for a period of two years thereafter.
Sec. 300. RCW
82.32.340 and 1989 c 78 s 3 are each amended to read as follows:
(1) Any tax or penalty which the department of ((revenue))taxation deems to be uncollectible may be transferred from accounts receivable to a suspense account and cease to be accounted an asset. Any item transferred shall continue to be a debt due the state from the taxpayer and may at any time within twelve years from the filing of a warrant covering such amount with the clerk of the superior court be transferred back to accounts receivable for the purpose of collection. The department of ((revenue))taxation may charge off as finally uncollectible any tax or penalty which it deems uncollectible at any time after twelve years from the date that the last tax return for the delinquent taxpayer was or should have been filed if the department of ((revenue))taxation is satisfied that there are no cost-effective means of collecting the tax or penalty.
After any tax or penalty has been charged off as finally uncollectible under the provisions of this section, the department of ((revenue))taxation may destroy any or all files and records pertaining to the liability of any taxpayer for such tax or penalty.
The department of ((
revenue))
taxation, subject to the approval of the state records committee, may at the expiration of five years after the close of any taxable year, destroy any or all files and records pertaining to the tax liability of any taxpayer for such taxable year, who has fully paid all taxes, penalties and interest for such taxable year, or any preceding taxable year for which such taxes, penalties and interest have been fully paid. In the event that such files and records are reproduced on film pursuant to RCW
40.20.020 for use in accordance with RCW
40.20.030, the original files and records may be destroyed immediately after reproduction and such reproductions may be destroyed at the expiration of the above five-year period, subject to the approval of the state records committee.
(2) Notwithstanding subsection (1) of this section, the department may charge off any tax within its jurisdiction to collect that is owed by a taxpayer, including any penalty or interest thereon, if the department ascertains that the cost of collecting that tax would be greater than the total amount which is owed or likely in the near future to be owed by, and collectible from, the taxpayer.
Sec. 301. RCW
82.32.360 and 1975 1st ex.s. c 278 s 93 are each amended to read as follows:
Upon approval of such agreement, evidenced by execution thereof by the department of ((revenue))taxation and the person so agreeing, the agreement shall be final and conclusive as to tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or of misrepresentation of a material fact:
(1) The case shall not be reopened as to the matters agreed upon, or the agreement modified, by any officer, employee, or agent of the state, or the taxpayer, and
(2) In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.
Sec. 302. RCW
82.32.394 and 1998 c 115 s 7 are each amended to read as follows:
The department of ((
revenue))
taxation shall deposit into the advanced environmental mitigation revolving account, created in RCW
47.12.340, all moneys received from the imposition on consumers of the taxes under chapters
82.08 and
82.12 RCW on the sales or use of leaded racing fuel which is exempted from the motor vehicle fuel tax under RCW
82.38.081.
Sec. 303. RCW
82.32.410 and 2005 c 274 s 362 are each amended to read as follows:
(1) The director may designate certain written determinations as precedents.
(a) By rule adopted pursuant to chapter
34.05 RCW, the director shall adopt criteria which he or she shall use to decide whether a determination is precedential. These criteria shall include, but not be limited to, whether the determination clarifies an unsettled interpretation of Title
82 RCW or where the determination modifies or clarifies an earlier interpretation.
(b) Written determinations designated as precedents by the director shall be made available for public inspection and shall be published by the department.
(c) The department shall disclose any written determination upon which it relies to support any assessment of tax, interest, or penalty against such taxpayer, after making the deletions provided by subsection (2) of this section.
(2) Before making a written determination available for public inspection under subsection (1) of this section, the department shall delete:
(a) The names, addresses, and other identifying details of the person to whom the written determination pertains and of another person identified in the written determination; and
(b) Information the disclosure of which is specifically prohibited by any statute applicable to the department of ((
revenue))
taxation, and the department may also delete other information exempted from disclosure by chapter
42.56 RCW or any other statute applicable to the department of ((
revenue))
taxation.
Sec. 304. RCW
82.32.532 and 2010 c 111 s 701 are each amended to read as follows:
(1) For purposes of the taxes imposed in this title, the department of ((
revenue))
taxation may not consider a person's ownership of, or rights in, computer software as defined in RCW
82.04.215, including computer software used in providing a digital automated service; master copies of software; digital goods or digital codes residing on servers located in this state in determining whether the person has substantial nexus with this state.
(2) For purposes of this section, "substantial nexus" means the requisite connection that a person has with a state to allow the state to subject the person to the state's taxing authority, consistent with the commerce clause of the United States Constitution.
Sec. 305. RCW
82.32.533 and 2010 c 111 s 801 are each amended to read as follows:
(1) Except as provided in subsection (2) of this section, no person may be held liable for the failure to collect or pay state and local sales and use taxes accrued before July 26, 2009, on the sale or use of digital goods or of services defined as a retail sale in RCW
82.04.050(2)(a) and rendered in respect to digital goods.
(2) Subsection (1) of this section does not relieve any person from liability for state and local sales taxes that the person collected from buyers but did not remit to the department of ((revenue))taxation.
(3) Nothing in this section may be construed as authorizing the refund of state and local sales and use taxes properly paid on the sale or use, before July 26, 2009, of digital goods or of services defined as a retail sale in RCW
82.04.050(2)(a) and rendered in respect to digital goods.
(4) A person is not entitled to a credit or refund of any business and occupation tax paid in excess of that properly due as a result of the person paying tax on its income earned from the sale of eligible digital products and services at the tax rate provided in RCW
82.04.290(2)(a) rather than the tax rate provided in RCW
82.04.250(1), unless the person requesting the credit or refund has paid the proper amount of state and local sales taxes due on the sales of the eligible digital products and services that generated the income in respect to which the business and occupation tax credit or refund is sought. For purposes of this subsection, "eligible digital products and services" means: (a) Digital goods; and (b) services defined as a retail sale in RCW
82.04.050(2)(a) and rendered in respect to digital goods.
(5) For purposes of this section, "digital goods" has the same meaning as in RCW
82.04.192.
Sec. 306. RCW
82.32.580 and 2017 3rd sp.s. c 37 s 902 are each amended to read as follows:
(1) The governing board of a nonprofit organization, corporation, or association may apply for deferral of taxes on an eligible project. Application must be made to the department in a form and manner prescribed by the department. The application must contain information regarding the location of the project, estimated or actual costs of the project, time schedules for completion and operation of the project, and other information required by the department. The department must rule on the application within sixty days. All applications for the tax deferral under this section must be received no later than December 31, 2008.
(2) The department must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters
82.08, 82.12, and
82.14 RCW on each eligible project.
(3) The nonprofit organization, corporation, or association must begin paying the deferred taxes in the tenth year after the date certified by the department as the date on which the eligible project is operationally complete. The first payment is due on December 31st of the tenth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment must equal ten percent of the deferred tax.
(4) The department may authorize an accelerated repayment schedule upon request of the nonprofit organization, corporation, or association.
(5) Except as provided in subsection (6) of this section, interest may not be charged on any taxes deferred under this section for the period of deferral. The debt for deferred taxes is not extinguished by insolvency or other failure of the nonprofit organization, corporation, or association.
(6) If the project is not operationally complete within five calendar years from issuance of the tax deferral or if at any time the department finds that the project is not eligible for tax deferral under this section, the amount of deferred taxes outstanding for the project is immediately due and payable. If deferred taxes must be repaid under this subsection, the department must assess interest, but not penalties, on amounts due under this subsection. Interest must be assessed at the rate provided for delinquent taxes under this chapter, retroactively to the date of deferral, and accrues until the deferred taxes due are repaid.
(7) Applications and any other information received by the department of ((
revenue))
taxation under this section are not confidential under RCW
82.32.330. This chapter applies to the administration of this section.
(8) This section applies to taxable eligible project activity that occurs on or after July 1, 2007.
(9) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Eligible project" means a project that is used primarily for a historic automobile museum.
(b) "Historic automobile museum" means a facility owned and operated by a nonprofit organization, corporation, or association that is used to maintain and exhibit to the public a collection of at least five hundred motor vehicles.
(c) "Nonprofit organization, corporation, or association" means an organization, corporation, or association exempt from tax under section 501(c) (3), (4), or (10) of the federal internal revenue code (26 U.S.C. Sec. 501(c) (3), (4), or (10)).
(d) "Project" means the construction of new structures, the acquisition and installation of fixtures that are permanently affixed to and become a physical part of those structures, and site preparation. For purposes of this subsection, structures do not include parking facilities used for motor vehicles that are not on display or part of the museum collection.
(e) "Site preparation" includes soil testing, site clearing and grading, demolition, or any other related activities that are initiated before construction. Site preparation does not include landscaping services or landscaping materials.
Sec. 307. RCW
82.32.785 and 2010 c 112 s 5 are each amended to read as follows:
The department of ((revenue))taxation must, by January 1, 2011, develop a system, as resources permit, allowing sellers to voluntarily verify through electronic means whether their customers' reseller permits are valid.
Sec. 308. RCW
82.32.790 and 2017 3rd sp.s. c 37 s 526 are each amended to read as follows:
(1)(a) Sections 510, 512, 514, 516, 518, 520, 522, and 524, chapter 37, Laws of 2017 3rd sp. sess., sections 9, 13, 17, 22, 24, 30, 32, and 45, chapter 135, Laws of 2017, sections 104, 110, 117, 123, 125, 129, 131, and 150, chapter 114, Laws of 2010, and sections 1, 2, 3, and 5 through 10, 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 by January 1, 2024.
(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) The sections referenced in subsection (1) of this section take effect the first day of the month in which a contract for the construction of a significant semiconductor fabrication facility is signed, if the contract is signed and received by January 1, 2024, as determined by the director of the department of ((revenue))taxation.
(3)(a) The department of ((revenue))taxation must provide notice of the effective date of the sections referenced in subsection (1) of this section 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 the sections referenced in subsection (1) of this section are 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 RCW
82.04.426,
82.04.448,
82.08.965,
82.12.965,
82.08.970,
82.12.970, or
84.36.645. The department is not authorized to make a second determination regarding the effective date of the sections referenced in subsection (1) of this section.
(4)(a) This section expires January 1, 2024, if the contingency in subsection (2) of this section does not occur by January 1, 2024, as determined by the department.
(b) The department must provide written notice of the expiration date of this section and the sections referenced in subsection (1) of this section to affected taxpayers, the legislature, and others as deemed appropriate by the department.
Sec. 309. RCW
82.32.900 and 2014 c 216 s 209 are each amended to read as follows:
(1) The department of licensing must convene a work group that includes, at a minimum, representatives from the department of transportation, the trucking industry, manufacturers of compressed natural gas and liquefied natural gas, and any other stakeholders as deemed necessary, for the following purposes:
(a) To evaluate the annual license fee in lieu of fuel tax under RCW
82.38.075 to determine a fee that more closely represents the average consumption of vehicles by weight and to make recommendations to the transportation committees of the legislature by December 1, 2014, on an updated fee schedule.
(b) To develop a transition plan to move vehicles powered by liquefied natural gas and compressed natural gas from the annual license fee in lieu of fuel tax to the fuel tax under RCW
82.38.030. The transition plan must incorporate stakeholder feedback and must include draft legislation and cost and revenue estimates. The transition plan must be submitted to the transportation committees of the legislature by December 1, 2015.
(2) The department of ((revenue))taxation must convene a work group that includes, at a minimum, representatives from the department of transportation, the marine shipping industry, manufacturers of liquefied natural gas, and any other stakeholders as deemed necessary, for the purpose of examining the appropriate level and manner of taxing liquefied natural gas used for marine vessel transportation. The department must make recommendations to the fiscal committees of the legislature by December 1, 2025.
Sec. 310. RCW
82.32A.005 and 1991 c 142 s 2 are each amended to read as follows:
(1) The legislature finds that taxes are one of the most sensitive points of contact between citizens and their government, and that there is a delicate balance between revenue collection and taxpayers' rights and responsibilities. The rights, privacy, and property of Washington taxpayers should be protected adequately during the process of the assessment and collection of taxes.
(2) The legislature further finds that the Washington tax system is based largely on voluntary compliance and that taxpayers have a responsibility to inform themselves about applicable tax laws. The legislature also finds that the rights of the taxpayers and their attendant responsibilities are best implemented where the department of ((
revenue))
taxation provides accurate tax information, instructions, forms, administrative policies, and procedures to assist taxpayers to voluntarily comply with the provisions of the revenue act, Title
82 RCW, and where taxpayers cooperate in the administration of these provisions.
Sec. 311. RCW
82.32A.010 and 1991 c 142 s 3 are each amended to read as follows:
The department of ((revenue))taxation shall administer this chapter. The department of ((revenue))taxation shall adopt or amend rules as may be necessary to fully implement this chapter and the rights established under this chapter.
Sec. 312. RCW
82.32A.020 and 1991 c 142 s 4 are each amended to read as follows:
The taxpayers of the state of Washington have:
(1) The right to a written explanation of the basis for any tax deficiency assessment, interest, and penalties at the time the assessments are issued;
(2) The right to rely on specific, official written advice and written tax reporting instructions from the department of ((revenue))taxation to that taxpayer, and to have interest, penalties, and in some instances, tax deficiency assessments waived where the taxpayer has so relied to their proven detriment;
(3) The right to redress and relief where tax laws or rules are found to be unconstitutional by the final decision of a court of record and the right to prompt administrative remedies in such cases;
(4) The right to confidentiality and protection from public inquiry regarding financial and business information in the possession of the department of ((
revenue))
taxation in accordance with the requirements of RCW
82.32.330;
(5) The right to receive, upon request, clear and current tax instructions, rules, procedures, forms, and other tax information; and
(6) The right to a prompt and independent administrative review by the department of ((revenue))taxation of a decision to revoke a tax registration, and to a written determination that either sustains the revocation or reinstates the registration.
Sec. 313. RCW
82.32A.030 and 1991 c 142 s 5 are each amended to read as follows:
To ensure consistent application of the revenue laws, taxpayers have certain responsibilities under chapter
82.32 RCW, including, but not limited to, the responsibility to:
(1) Register with the department of ((revenue))taxation;
(2) Know their tax reporting obligations, and when they are uncertain about their obligations, seek instructions from the department of ((revenue))taxation;
(3) Keep accurate and complete business records;
(4) File accurate returns and pay taxes in a timely manner;
(5) Ensure the accuracy of the information entered on their tax returns;
(6) Substantiate claims for refund;
(7) Timely pay all taxes after closing a business and request cancellation of registration number; and
(8) Timely respond to communications from the department of ((revenue))taxation.
Sec. 314. RCW
82.32A.050 and 1991 c 142 s 7 are each amended to read as follows:
The department of ((revenue))taxation shall maintain a taxpayer services program consisting of, but not limited to:
(1) Providing taxpayer assistance in the form of information, education, and instruction in person, by telephone, or by correspondence;
(2) Conducting tax workshops at locations most conveniently accessible to the majority of taxpayers affected; and
(3) Publishing written bulletins, instructions, current revenue laws, rules, court decisions, and interpretive rulings of the department of ((revenue))taxation.
Sec. 315. RCW
82.33.020 and 2015 c 3 s 14 are each reenacted and amended to read as follows:
(1) Four times each year the supervisor must prepare, subject to the approval of the economic and revenue forecast council under RCW
82.33.010:
(a) An official state economic and revenue forecast;
(b) An unofficial state economic and revenue forecast based on optimistic economic and revenue projections; and
(c) An unofficial state economic and revenue forecast based on pessimistic economic and revenue projections.
(2) The supervisor must submit forecasts prepared under this section, along with any unofficial forecasts provided under RCW
82.33.010, to the governor and the members of the committees on ways and means and the chairs of the committees on transportation of the senate and house of representatives, including one copy to the staff of each of the committees, on or before November 20th, February 20th in the even-numbered years, March 20th in the odd-numbered years, June 27th, and September 27th. In fiscal year 2015, the March 20th forecast shall be submitted on or before February 20, 2015. All forecasts must include both estimated receipts and estimated revenues in conformance with generally accepted accounting principles as provided by RCW
43.88.037. In odd-numbered years, the period covered by forecasts for the state general fund and related funds must cover the current fiscal biennium and the next ensuing fiscal biennium. In even-numbered years, the period covered by the forecasts for the state general fund and related funds shall be current fiscal and the next two ensuing fiscal biennia.
(3) All agencies of state government must provide to the supervisor immediate access to all information relating to economic and revenue forecasts. Revenue collection information must be available to the supervisor the first business day following the conclusion of each collection period.
(4) The economic and revenue forecast supervisor and staff must colocate and share information, data, and files with the tax research section of the department of ((revenue))taxation but may not duplicate the duties and functions of one another.
(5) As part of its forecasts under subsection (1) of this section, the supervisor must provide estimated revenue from tuition fees as defined in RCW
28B.15.020.
(6) The economic and revenue forecast council must, in consultation with the economic and revenue forecast work group created in RCW
82.33.040, review the existing economic and revenue forecast council revenue model, data, and methodologies and in light of recent economic changes, engage outside experts if necessary, and recommend changes to the economic and revenue forecast council revenue forecasting process to increase confidence and promote accuracy in the revenue forecast. The recommendations are due by September 30, 2012, and every five years thereafter.
Sec. 316. RCW
82.33.040 and 1986 c 158 s 23 are each amended to read as follows:
(1) To promote the free flow of information and to promote legislative input in the preparation of forecasts, immediate access to all information relating to economic and revenue forecasts shall be available to the economic and revenue forecast work group, hereby created. Revenue collection information shall be available to the economic and revenue forecast work group the first business day following the conclusion of each collection period. The economic and revenue forecast work group shall consist of one staff member selected by the executive head or chairperson of each of the following agencies or committees:
(a) Department of ((revenue))taxation;
(b) Office of financial management;
(c) Legislative evaluation and accountability program committee;
(d) Ways and means committee of the senate; and
(e) Ways and means committee of the house of representatives.
(2) The economic and revenue forecast work group shall provide technical support to the economic and revenue forecast council. Meetings of the economic and revenue forecast work group may be called by any member of the group for the purpose of assisting the economic and revenue forecast council, reviewing the state economic and revenue forecasts, or reviewing monthly revenue collection data or for any other purpose which may assist the economic and revenue forecast council.
Sec. 317. RCW
82.34.010 and 1988 c 127 s 36 are each amended to read as follows:
Unless a different meaning is plainly required by the context, the following words as hereinafter used in this chapter shall have the following meanings:
(1) "Facility" shall mean an "air pollution control facility" or a "water pollution control facility" as herein defined: (a) "Air pollution control facility" includes any treatment works, control devices and disposal systems, machinery, equipment, structures, property or any part or accessories thereof, installed or acquired for the primary purpose of reducing, controlling or disposing of industrial waste which if released to the outdoor atmosphere could cause air pollution. "Air pollution control facility" shall not mean any motor vehicle air pollution control devices used to control the emission of air contaminants from any motor vehicle. (b) "Water pollution control facility" includes any treatment works, control device or disposal system, machinery, equipment, structures, property or any accessories thereof installed or acquired for the primary purpose of reducing, controlling or disposing of sewage and industrial waste which if released to a water course could cause water pollution: PROVIDED, That the word "facility" shall not be construed to include any control device, machinery, equipment, structure, disposal system or other property installed or constructed: For a municipal corporation other than for coal-fired, steam electric generating plants constructed and operated pursuant to chapter
54.44 RCW for which an application for a certificate was made no later than December 31, 1969, together with any air or water pollution control facility improvement which may be made hereafter to such plants; or for the primary purpose of connecting any commercial establishment with the waste collecting facilities of public or privately owned utilities: PROVIDED FURTHER, That the word "facility" shall not include any control device, machinery, equipment, structure, disposal system, or other property installed or constructed with the proceeds derived from the sale of industrial revenue bonds issued under chapter
39.84 RCW.
(2) "Industrial waste" shall mean any liquid, gaseous, radioactive or solid waste substance or combinations thereof resulting from any process of industry, manufacture, trade or business, or from the development or recovery of any natural resources.
(3) "Treatment works" or "control device" shall mean any machinery, equipment, structure or property which is installed, constructed or acquired for the primary purpose of controlling air or water pollution and shall include, but shall not be limited to such devices as precipitators, scrubbers, towers, filters, baghouses, incinerators, evaporators, reservoirs, aerators used for the purpose of treating, stabilizing, incinerating, holding, removing or isolating sewage and industrial wastes.
(4) "Disposal system" shall mean any system containing treatment works or control devices and includes but is not limited to pipelines, outfalls, conduits, pumping stations, force mains, solids handling equipment, instrumentation and monitoring equipment, ducts, fans, vents, hoods and conveyors and all other construction, devices, appurtenances and facilities used for collecting or conducting, sewage and industrial waste to a point of disposal, treatment or isolation except that which is necessary to manufacture of products.
(5) "Certificate" shall mean a pollution control tax exemption and credit certificate for which application has been made not later than December 31, 1969, except as follows:
(a) With respect to a facility required to be installed, such application will be deemed timely made if made not later than November 30, 1981, and within one year after the effective date of specific requirements for such facility promulgated by the appropriate control agency.
(b) With respect to a water pollution control facility for which an application was made in anticipation of specific requirements for such facility being promulgated by the appropriate control agency, an application will be deemed timely made if made during November, 1981, and subsequently denied, and if an appeal of the agency's denial of the application was filed in a timely manner.
(c) With respect to a facility for which plans and specifications were approved by the appropriate control agency, an application will be deemed timely made if made during November, 1981, and subsequently denied, and if an appeal of the agency's denial of the application was filed in a timely manner.
(d) For the purposes of (a), (b), and (c) of this subsection, "facility" means a facility installed in an industrial, manufacturing, waste disposal, utility, or other commercial establishment which is in operation or under construction as of July 30, 1967.
(6) "Appropriate control agency" shall mean the department of ecology; or the operating local or regional air pollution control agency within whose jurisdiction a facility is or will be located, or the department of ecology, where the facility is not or will not be located within the area of an operating local or regional air pollution control agency, or where the department of ecology has assumed jurisdiction.
(7) "Department" shall mean the department of ((revenue))taxation.
Sec. 318. RCW
82.45.035 and 1969 ex.s. c 223 s 28A.45.035 are each amended to read as follows:
The state department of ((revenue))taxation shall provide by rule for the determination of the selling price in the case of leases with option to purchase, and shall further provide that the tax shall not be payable, where inequity will otherwise result, until and unless the option is exercised and accepted. A conditional sale of mining property in which the buyer has the right to terminate the contract at any time, and a lease and option to buy mining property in which the lessee-buyer has the right to terminate the lease and option at any time, shall be taxable at the time of execution only on the consideration received by the seller or lessor for execution of such contract, but the rule shall further provide that the tax due on any additional consideration paid by the buyer and received by the seller shall be paid to the county treasurer (1) at the time of termination, or (2) at the time that all of the consideration due to the seller has been paid and the transaction is completed except for the delivery of the deed to the buyer, or (3) at the time when the buyer unequivocally exercises an option to purchase the property, whichever of the three events occurs first.
The term "mining property" means property containing or believed to contain metallic minerals and sold or leased under terms which require the purchaser or lessor to conduct exploration or mining work thereon and for no other use. The term "metallic minerals" does not include clays, coal, sand and gravel, peat, gypsite, or stone, including limestone.
The state department of ((revenue))taxation shall further provide by rule for cases where the selling price is not separately stated or is not ascertainable at the time of sale, for the payment of the tax at a time when the selling price is ascertained, in which case suitable security may be required for payment of the tax, and may further provide for the determination of the selling price by an appraisal by the county assessor, based on the full and true market value, which appraisal shall be prima facie evidence of the selling price of the real property.
Sec. 319. RCW
82.45.090 and 2017 c 142 s 3 are each amended to read as follows:
(1) Except for a sale of a beneficial interest in real property where no instrument evidencing the sale is recorded in the official real property records of the county in which the property is located, the tax imposed by this chapter must be paid to and collected by the treasurer of the county within which is located the real property that was sold. In collecting the tax the county treasurer must act as agent for the state. The county treasurer must cause a verification of payment evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales and used floating home sales. A receipt issued by the county treasurer for the payment of the tax imposed under this chapter is evidence of the satisfaction of the lien imposed in this section and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the county auditor for filing or recording until the tax is paid and the verification of payment affixed thereto; in case the tax is not due on the transfer, the instrument may not be so accepted until suitable notation of such fact has been made on the instrument by the treasurer. At the sale of a used mobile home, used manufactured home, used park model, or used floating home that has not been title eliminated, property taxes must be current in order to complete the processing of the real estate excise tax affidavit or other documents transferring title. Verification that the property taxes are current must be noted on the mobile home real estate excise tax affidavit or on a form approved by the county treasurer. For the purposes of this subsection, "mobile home," "manufactured home," and "park model" have the same meaning as provided in RCW
59.20.030.
(2) For a sale of a beneficial interest in real property where a tax is due under this chapter and where no instrument is recorded in the official real property records of the county in which the property is located, the sale must be reported to the department of ((revenue))taxation within five days from the sale date on such returns or forms and according to such procedures as the department may prescribe. Such forms or returns must be signed or electronically signed by both the transferor and the transferee and must be accompanied by payment of the tax due.
(3) Any person who intentionally makes a false statement on any return or form required to be filed with the department under this chapter is guilty of perjury under chapter
9A.72 RCW.
Sec. 320. RCW
82.45.100 and 2010 1st sp.s. c 23 s 211 are each amended to read as follows:
(1) Payment of the tax imposed under this chapter is due and payable immediately at the time of sale, and if not paid within one month thereafter will bear interest from the time of sale until the date of payment.
(a) Interest imposed before January 1, 1999, is computed at the rate of one percent per month.
(b) Interest imposed after December 31, 1998, is computed on a monthly basis at the rate as computed under RCW
82.32.050(2). The rate so computed must be adjusted on the first day of January of each year for use in computing interest for that calendar year. The department must provide written notification to the county treasurers of the variable rate on or before December 1st of the year preceding the calendar year in which the rate applies.
(2) In addition to the interest described in subsection (1) of this section, if the payment of any tax is not received by the county treasurer or the department of ((
revenue))
taxation, as the case may be, within one month of the date due, there is assessed a penalty of five percent of the amount of the tax; if the tax is not received within two months of the date due, there will be assessed a total penalty of ten percent of the amount of the tax; and if the tax is not received within three months of the date due, there will be assessed a total penalty of twenty percent of the amount of the tax. The payment of the penalty described in this subsection is collectible from the seller only, and RCW
82.45.070 does not apply to the penalties described in this subsection.
(3) If the tax imposed under this chapter is not received by the due date, the transferee is personally liable for the tax, along with any interest as provided in subsection (1) of this section, unless an instrument evidencing the sale is recorded in the official real property records of the county in which the property conveyed is located.
(4) If upon examination of any affidavits or from other information obtained by the department or its agents it appears that all or a portion of the tax is unpaid, the department must assess against the taxpayer the additional amount found to be due plus interest and penalties as provided in subsections (1) and (2) of this section. The department must notify the taxpayer by mail, or electronically as provided in RCW
82.32.135, of the additional amount and the same becomes due and must be paid within thirty days from the date of the notice, or within such further time as the department may provide.
(5) No assessment or refund may be made by the department more than four years after the date of sale except upon a showing of:
(a) Fraud or misrepresentation of a material fact by the taxpayer;
(b) A failure by the taxpayer to record documentation of a sale or otherwise report the sale to the county treasurer; or
(c) A failure of the transferor or transferee to report the sale under RCW
82.45.090(2).
(6) Penalties collected on taxes due under this chapter under subsection (2) of this section and RCW
82.32.090 (2) through (8) must be deposited in the housing trust fund as described in chapter
43.185 RCW.
Sec. 321. RCW
82.45.150 and 2014 c 97 s 307 and 2014 c 58 s 26 are each reenacted and amended to read as follows:
All of chapter
82.32 RCW, except RCW
82.32.030,
82.32.050,
82.32.140,
82.32.270, and
82.32.090 (1) and (10), applies to the tax imposed by this chapter, in addition to any other provisions of law for the payment and enforcement of the tax imposed by this chapter. The department of ((
revenue))
taxation must by rule provide for the effective administration of this chapter. The rules must prescribe and furnish a real estate excise tax affidavit form verified by both the seller and the buyer, or agents of each, to be used by each county, or the department, as the case may be, in the collection of the tax imposed by this chapter, except that an affidavit given in connection with grant of an easement or right-of-way to a gas, electrical, or telecommunications company, as defined in RCW
80.04.010, or to a public utility district or cooperative that distributes electricity, need be verified only on behalf of the company, district, or cooperative and except that a transfer on death deed need be verified only on behalf of the transferor. The department of ((
revenue))
taxation must annually conduct audits of transactions and affidavits filed under this chapter.
Sec. 322. RCW
82.45.180 and 2013 c 251 s 11 are each amended to read as follows:
(1)(a) For taxes collected by the county under this chapter, the county treasurer shall collect a five dollar fee on all transactions required by this chapter where the transaction does not require the payment of tax. A total of five dollars shall be collected in the form of a tax and fee, where the calculated tax payment is less than five dollars. Through June 30, 2006, the county treasurer shall place one percent of the taxes collected by the county under this chapter and the treasurer's fee in the county current expense fund to defray costs of collection. After June 30, 2006, the county treasurer shall place one and three-tenths percent of the taxes collected by the county under this chapter and the treasurer's fee in the county current expense fund to defray costs of collection. For taxes collected by the county under this chapter before July 1, 2006, the county treasurer shall pay over to the state treasurer and account to the department of ((
revenue))
taxation for the proceeds at the same time the county treasurer remits funds to the state under RCW
84.56.280. For taxes collected by the county under this chapter after June 30, 2006, on a monthly basis the county treasurer shall pay over to the state treasurer the month's transmittal. The month's transmittal must be received by the state treasurer by 12:00 p.m. on the last working day of each month. The county treasurer shall account to the department for the month's transmittal by the twentieth day of the month following the month in which the month's transmittal was paid over to the state treasurer. The state treasurer shall deposit the proceeds in the general fund.
(b) For purposes of this subsection, the definitions in this subsection apply.
(i) "Close of business" means the time when the county treasurer makes his or her daily deposit of proceeds.
(ii) "Month's transmittal" means all proceeds deposited by the county through the close of business of the day that is two working days before the last working day of the month. This definition of "month's transmittal" shall not be construed as requiring any change in a county's practices regarding the timing of its daily deposits of proceeds.
(iii) "Proceeds" means moneys collected and receipted by the county from the taxes imposed by this chapter, less the county's share of the proceeds used to defray the county's costs of collection allowable in (a) of this subsection.
(iv) "Working day" means a calendar day, except Saturdays, Sundays, and all legal holidays as provided in RCW
1.16.050.
(2) For taxes collected by the department of ((
revenue))
taxation under this chapter, the department shall remit the tax to the state treasurer who shall deposit the proceeds of any state tax in the general fund. The state treasurer shall deposit the proceeds of any local taxes imposed under chapter
82.46 RCW in the local real estate excise tax account hereby created in the state treasury. Moneys in the local real estate excise tax account may be spent only for distribution to counties, cities, and towns imposing a tax under chapter
82.46 RCW. Except as provided in RCW
43.08.190, all earnings of investments of balances in the local real estate excise tax account shall be credited to the local real estate excise tax account and distributed to the counties, cities, and towns monthly. Monthly the state treasurer shall make distribution from the local real estate excise tax account to the counties, cities, and towns the amount of tax collected on behalf of each taxing authority. The state treasurer shall make the distribution under this subsection without appropriation.
(3)(a) Through June 30, 2010, the county treasurer shall collect an additional five dollar fee on all transactions required by this chapter, regardless of whether the transaction requires the payment of tax. The county treasurer shall remit this fee to the state treasurer at the same time the county treasurer remits funds to the state under subsection (1) of this section. The state treasurer shall place money from this fee in the general fund. By the twentieth day of the subsequent month, the state treasurer shall distribute to each county treasurer according to the following formula: Three-quarters of the funds available shall be equally distributed among the thirty-nine counties; and the balance shall be ratably distributed among the counties in direct proportion to their population as it relates to the total state's population based on most recent statistics by the office of financial management.
(b) When received by the county treasurer, the funds shall be placed in a special real estate excise tax electronic technology fund held by the county treasurer to be used exclusively for the development, implementation, and maintenance of an electronic processing and reporting system for real estate excise tax affidavits. Funds may be expended to make the system compatible with the automated real estate excise tax system developed by the department and compatible with the processes used in the offices of the county assessor and county auditor. Any funds held in the account that are not expended by the earlier of: July 1, 2015, or at such time that the county treasurer is utilizing an electronic processing and reporting system for real estate excise tax affidavits compatible with the department and compatible with the processes used in the offices of the county assessor and county auditor, revert to the special real estate and property tax administration assistance account in accordance with subsection (5)(c) of this section.
(4) Beginning July 1, 2010, through December 31, 2013, the county treasurer shall continue to collect the additional five dollar fee in subsection (3) of this section on all transactions required by this chapter, regardless of whether the transaction requires the payment of tax. During this period, the county treasurer shall remit this fee to the state treasurer at the same time the county treasurer remits funds to the state under subsection (1) of this section. The state treasurer shall place money from this fee in the annual property revaluation grant account created in RCW
84.41.170.
(5)(a) The real estate and property tax administration assistance account is created in the custody of the state treasurer. An appropriation is not required for expenditures and the account is not subject to allotment procedures under chapter
43.88 RCW.
(b) Beginning January 1, 2014, the county treasurer must continue to collect the additional five dollar fee in subsection (3) of this section on all transactions required by this chapter, regardless of whether the transaction requires the payment of tax. The county treasurer shall deposit one-half of this fee in the special real estate and property tax administration assistance account in accordance with (c) of this subsection and remit the balance to the state treasurer at the same time the county treasurer remits funds to the state under subsection (1) of this section. The state treasurer must place money from this fee in the real estate and property tax administration assistance account. By the twentieth day of the subsequent month, the state treasurer must distribute the funds to each county treasurer according to the following formula: One-half of the funds available must be equally distributed among the thirty-nine counties; and the balance must be ratably distributed among the counties in direct proportion to their population as it relates to the total state's population based on most recent statistics by the office of financial management.
(c) When received by the county treasurer, the funds must be placed in a special real estate and property tax administration assistance account held by the county treasurer to be used for:
(i) Maintenance and operation of an annual revaluation system for property tax valuation; and
(ii) Maintenance and operation of an electronic processing and reporting system for real estate excise tax affidavits.
Sec. 323. RCW
82.48.020 and 2000 c 229 s 4 are each amended to read as follows:
(1) An annual excise tax is hereby imposed for the privilege of using any aircraft in the state. A current certificate of air worthiness with a current inspection date from the appropriate federal agency and/or the purchase of aviation fuel shall constitute the necessary evidence of aircraft use or intended use. The tax shall be collected annually or under a staggered collection schedule as required by the secretary by rule. No additional tax shall be imposed under this chapter upon any aircraft upon the transfer of ownership thereof, if the tax imposed by this chapter with respect to such aircraft has already been paid for the year in which transfer of ownership occurs. A violation of this subsection is a misdemeanor punishable as provided under chapter
9A.20 RCW.
(2) Persons who are required to register aircraft under chapter
47.68 RCW and who register aircraft in another state or foreign country and avoid the Washington aircraft excise tax are liable for such unpaid excise tax. A violation of this subsection is a gross misdemeanor.
The department of ((
revenue))
taxation may assess and collect the unpaid excise tax under chapter
82.32 RCW, including the penalties and interest provided in chapter
82.32 RCW.
(3) Except as provided under subsections (1) and (2) of this section, a violation of this chapter is a misdemeanor punishable as provided in chapter
9A.20 RCW.
Sec. 324. RCW
82.49.010 and 2014 c 195 s 503 are each amended to read as follows:
(1) An excise tax is imposed for the privilege of using a vessel upon the waters of this state, except vessels exempt under RCW
82.49.020. The annual amount of the excise tax is one-half of one percent of fair market value, as determined under this chapter, or five dollars, whichever is greater. Violation of this subsection is a misdemeanor.
(2) A person who is required under chapter
88.02 RCW to register a vessel in this state and who fails to register the vessel in this state or registers the vessel in another state or foreign country and avoids the Washington watercraft excise tax is guilty of a gross misdemeanor and is liable for such unpaid excise tax. The department of ((
revenue))
taxation may assess and collect the unpaid excise tax under chapter
82.32 RCW, including the penalty imposed in RCW
82.49.080 and penalties and interest provided in chapter
82.32 RCW.
(3) The excise tax upon a vessel registered for the first time in this state shall be imposed for a twelve-month period, including the month in which the vessel is registered, unless the director of licensing extends or diminishes vessel registration periods for the purpose of staggered renewal periods under RCW
88.02.560. A vessel is registered for the first time in this state when the vessel was not registered in this state for the immediately preceding registration year, or when the vessel was registered in another jurisdiction for the immediately preceding year.
Sec. 325. RCW
82.49.040 and 1983 c 7 s 11 are each amended to read as follows:
The department of ((revenue))taxation shall prepare at least once each year a depreciation schedule for use in the determination of fair market value for the purposes of this chapter. The schedule shall be based upon information available to the department of ((revenue))taxation pertaining to the current fair market value of vessels. The fair market value of a vessel for the purposes of this chapter shall be based on the most recent purchase price depreciated according to the year of the most recent purchase of the vessel. The most recent purchase price is the consideration, whether money, credit, rights, or other property expressed in terms of money, paid or given or contracted to be paid or given by the purchaser to the seller for the vessel.
Sec. 326. RCW
82.49.050 and 1983 c 7 s 12 are each amended to read as follows:
(1) If a vessel has been acquired by lease or gift, or the most recent purchase price of a vessel is not known to the owner, the department of ((revenue))taxation shall appraise the vessel before registration.
(2) If after registration the department of ((revenue))taxation determines that the purchase price stated by the owner is not a reasonable representation of the true fair market value of a vessel at the time of purchase, the department of ((revenue))taxation shall appraise the vessel.
(3) If a vessel is homemade, the owner shall make a notarized declaration of fair market value. The fair market value of the vessel for the purposes of this chapter shall be the declared value, unless after registration the department of ((revenue))taxation determines that the declared value is not a reasonable representation of the true fair market value of the vessel in which case the department of ((revenue))taxation shall appraise the vessel.
(4) If the department of ((revenue))taxation appraises a vessel, the fair market value of the vessel for the purposes of this chapter shall be the appraised value. If the vessel has been registered before appraisal, the department of ((revenue))taxation shall refund any overpayment of tax to the owner or notify the owner of any additional tax due. The owner shall pay any additional tax due within thirty days after notification by the department.
Sec. 327. RCW
82.49.080 and 2014 c 195 s 502 are each amended to read as follows:
(1) An owner of a vessel that is not registered as required by chapter
88.02 RCW and for which watercraft excise tax is due under this chapter is liable for a penalty in the following amount:
(a) One hundred dollars for the owner's first violation;
(b) Two hundred dollars for the owner's second violation involving the same or any other vessel; or
(c) Four hundred dollars for the owner's third and successive violations involving the same or any other vessel.
(2) The department of ((
revenue))
taxation may collect this penalty under the procedures established in chapter
82.32 RCW. The penalty imposed under this section is in addition to any other civil or criminal penalty imposed by law.
Sec. 328. RCW
82.60.020 and 2010 1st sp.s. c 16 s 2 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax deferral under this chapter.
(2) "Department" means the department of ((revenue))taxation.
(3) "Eligible area" means:
(a) Through June 30, 2010, a rural county as defined in RCW
82.14.370; and
(b) Beginning July 1, 2010, a qualifying county.
(4)(a) "Eligible investment project" means an investment project that is located, as of the date the application required by RCW
82.60.030 is received by the department, in an eligible area as defined in subsection (3) of this section.
(b) "Eligible investment project" does not include any portion of an investment project undertaken by a light and power business as defined in RCW
82.16.010(4), other than that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part, or investment projects that have already received deferrals under this chapter.
(5) "Initiation of construction" has the same meaning as in RCW
82.63.010.
(6) "Investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction of the project.
(7) "Manufacturing" means the same as defined in RCW
82.04.120. "Manufacturing" also includes:
(a) Before July 1, 2010: (i) Computer programming, the production of computer software, and other computer-related services, but only when the computer programming, production of computer software, or other computer-related services are performed by a manufacturer as defined in RCW
82.04.110 and contribute to the production of a new, different, or useful substance or article of tangible personal property for sale; (ii) the activities performed by research and development laboratories and commercial testing laboratories; and (iii) the conditioning of vegetable seeds; and
(b) Beginning July 1, 2010: (i) The activities performed by research and development laboratories and commercial testing laboratories; and (ii) the conditioning of vegetable seeds.
(8) "Person" has the meaning given in RCW
82.04.030.
(9) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity used for manufacturing or research and development activities, including plant offices and warehouses or other facilities for the storage of raw material or finished goods if such facilities are an essential or an integral part of a factory, mill, plant, or laboratory used for manufacturing or research and development. If a building is used partly for manufacturing or research and development and partly for other purposes, the applicable tax deferral must be determined by apportionment of the costs of construction under rules adopted by the department.
(10) "Qualified employment position" means a permanent full-time employee employed in the eligible investment project during the entire tax year. The term "entire tax year" means a full-time position that is filled for a period of twelve consecutive months. The term "full-time" means at least thirty-five hours a week, four hundred fifty-five hours a quarter, or one thousand eight hundred twenty hours a year.
(11) "Qualified machinery and equipment" means all new industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a manufacturing or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.
(12) "Qualifying county" means a county that has an unemployment rate, as determined by the employment security department, which is at least twenty percent above the state average for the three calendar years immediately preceding the year in which the list of qualifying counties is established or updated, as the case may be, as provided in RCW
82.60.120.
(13) "Recipient" means a person receiving a tax deferral under this chapter.
(14) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun, but only when such activities are intended to ultimately result in the production of a new, different, or useful substance or article of tangible personal property for sale. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.
Sec. 329. RCW
82.60.080 and 2000 c 106 s 6 are each amended to read as follows:
The employment security department shall make, and certify to the department of ((revenue))taxation, all determinations of employment and wages as requested by the department under this chapter.
Sec. 330. RCW
82.62.010 and 2010 1st sp.s. c 16 s 11 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax credit under this chapter.
(2) "Department" means the department of ((revenue))taxation.
(3) "Eligible area" means a "rural county" as defined in RCW
82.14.370.
(4)(a) "Eligible business project" means manufacturing or research and development activities which are conducted by an applicant in an eligible area at a specific facility, provided the applicant's average qualified employment positions at the specific facility will be at least fifteen percent greater in the four consecutive full calendar quarters after the calendar quarter during which the first qualified employment position is filled than the applicant's average qualified employment positions at the same facility in the four consecutive full calendar quarters immediately preceding the calendar quarter during which the first qualified employment position is filled.
(b) "Eligible business project" does not include any portion of a business project undertaken by a light and power business as defined in RCW
82.16.010 or that portion of a business project creating qualified full-time employment positions outside an eligible area.
(5) "First qualified employment position" means the first qualified employment position filled for which a credit under this chapter is sought.
(6) "Manufacturing" means the same as defined in RCW
82.04.120. "Manufacturing" also includes:
(a) Before July 1, 2010: (i) Computer programming, the production of computer software, and other computer-related services, but only when the computer programming, production of computer software, or other computer-related services are performed by a manufacturer as defined in RCW
82.04.110 and contribute to the production of a new, different, or useful substance or article of tangible personal property for sale; and (ii) the activities performed by research and development laboratories and commercial testing laboratories; and
(b) Beginning July 1, 2010, the activities performed by research and development laboratories and commercial testing laboratories.
(7) "Person" has the meaning given in RCW
82.04.030.
(8)(a)(i) "Qualified employment position" means a permanent full-time employee employed in the eligible business project during four consecutive full calendar quarters.
(ii) For seasonal employers, "qualified employment position" also includes the equivalent of a full-time employee in work hours for four consecutive full calendar quarters.
(b) For purposes of this subsection, "full time" means a normal workweek of at least thirty-five hours.
(c) Once a permanent, full-time employee has been employed, a position does not cease to be a qualified employment position solely due to periods in which the position goes vacant, as long as:
(i) The cumulative period of any vacancies in that position is not more than one hundred twenty days in the four-quarter period; and
(ii) During a vacancy, the employer is training or actively recruiting a replacement permanent, full-time employee for the position.
(9) "Recipient" means a person receiving tax credits under this chapter.
(10) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun, but only when such activities are intended to ultimately result in the production of a new, different, or useful substance or article of tangible personal property for sale. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.
(11) "Seasonal employee" means an employee of a seasonal employer who works on a seasonal basis. For the purposes of this subsection and subsection (12) of this section, "seasonal basis" means a continuous employment period of less than twelve consecutive months.
(12) "Seasonal employer" means a person who regularly hires more than fifty percent of its employees to work on a seasonal basis.
Sec. 331. RCW
82.62.060 and 2000 c 106 s 7 are each amended to read as follows:
The employment security department shall make, and certify to the department of ((revenue))taxation, all determinations of employment and wages requested by the department under this chapter.
Sec. 332. RCW
82.63.010 and 2015 3rd sp.s. c 5 s 303 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Advanced computing" means technologies used in the designing and developing of computing hardware and software, including innovations in designing the full spectrum of hardware from handheld calculators to super computers, and peripheral equipment.
(2) "Advanced materials" means materials with engineered properties created through the development of specialized processing and synthesis technology, including ceramics, high value-added metals, electronic materials, composites, polymers, and biomaterials.
(3) "Applicant" means a person applying for a tax deferral under this chapter.
(4) "Biotechnology" means the application of technologies, such as recombinant DNA techniques, biochemistry, molecular and cellular biology, genetics and genetic engineering, cell fusion techniques, and new bioprocesses, using living organisms, or parts of organisms, to produce or modify products, to improve plants or animals, to develop microorganisms for specific uses, to identify targets for small molecule pharmaceutical development, or to transform biological systems into useful processes and products or to develop microorganisms for specific uses.
(5) "Department" means the department of ((revenue))taxation.
(6) "Electronic device technology" means technologies involving microelectronics; semiconductors; electronic equipment and instrumentation; radio frequency, microwave, and millimeter electronics; optical and optic-electrical devices; and data and digital communications and imaging devices.
(7) "Eligible investment project" means an investment project which either initiates a new operation, or expands or diversifies a current operation by expanding, renovating, or equipping an existing facility. The lessor or owner of the qualified building is not eligible for a deferral unless:
(a) The underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person; or
(b)(i) The lessor by written contract agrees to pass the economic benefit of the deferral to the lessee;
(ii) The lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual survey required under RCW
82.63.020(2); and
(iii) The economic benefit of the deferral passed to the lessee is no less than the amount of tax deferred by the lessor and is evidenced by written documentation of any type of payment, credit, or other financial arrangement between the lessor or owner of the qualified building and the lessee.
(8) "Environmental technology" means assessment and prevention of threats or damage to human health or the environment, environmental cleanup, and the development of alternative energy sources.
(9)(a) "Initiation of construction" means the date that a building permit is issued under the building code adopted under RCW
19.27.031 for:
(i) Construction of the qualified building, if the underlying ownership of the building vests exclusively with the person receiving the economic benefit of the deferral;
(ii) Construction of the qualified building, if the economic benefits of the deferral are passed to a lessee as provided in subsection (7) of this section; or
(iii) Tenant improvements for a qualified building, if the economic benefits of the deferral are passed to a lessee as provided in subsection (7) of this section.
(b) "Initiation of construction" does not include soil testing, site clearing and grading, site preparation, or any other related activities that are initiated before the issuance of a building permit for the construction of the foundation of the building.
(c) If the investment project is a phased project, "initiation of construction" shall apply separately to each phase.
(10) "Investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction or improvement of the project.
(11) "Multiple qualified buildings" means qualified buildings leased to the same person when such structures: (a) Are located within a five-mile radius; and (b) the initiation of construction of each building begins within a sixty-month period.
(12) "Person" has the meaning given in RCW
82.04.030 and includes state universities as defined in RCW
28B.10.016.
(13) "Pilot scale manufacturing" means design, construction, and testing of preproduction prototypes and models in the fields of biotechnology, advanced computing, electronic device technology, advanced materials, and environmental technology other than for commercial sale. As used in this subsection, "commercial sale" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.
(14) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity used for pilot scale manufacturing or qualified research and development, including plant offices and other facilities that are an essential or an integral part of a structure used for pilot scale manufacturing or qualified research and development. If a building or buildings are used partly for pilot scale manufacturing or qualified research and development, and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department. Such rules may include provisions for determining the amount of the deferral based on apportionment of costs of construction of an investment project consisting of a building or multiple buildings, where qualified research and development or pilot scale manufacturing activities are shifted within a building or from one building to another building.
(15)(a) "Qualified machinery and equipment" means fixtures, equipment, and support facilities that are an integral and necessary part of a pilot scale manufacturing or qualified research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment, instrumentation, and other devices used in a process of experimentation to develop a new or improved pilot model, plant process, product, formula, invention, or similar property; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; vats, tanks, and fermenters; operating structures; and all other equipment used to control, monitor, or operate the machinery. For purposes of this chapter, qualified machinery and equipment must be either new to the taxing jurisdiction of the state or new to the certificate holder, except that used machinery and equipment may be treated as qualified machinery and equipment if the certificate holder either brings the machinery and equipment into Washington or makes a retail purchase of the machinery and equipment in Washington or elsewhere.
(b) "Qualified machinery and equipment" does not include any fixtures, equipment, or support facilities, if the sale to or use by the recipient is not eligible for an exemption under RCW
82.08.02565 or
82.12.02565 solely because the recipient is an ineligible person as defined in RCW
82.08.02565.
(16) "Qualified research and development" means research and development performed within this state in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.
(17) "Recipient" means a person receiving a tax deferral under this chapter.
(18) "Research and development" means activities performed to discover technological information, and technical and nonroutine activities concerned with translating technological information into new or improved products, processes, techniques, formulas, inventions, or software. The term includes exploration of a new use for an existing drug, device, or biological product if the new use requires separate licensing by the federal food and drug administration under chapter 21, C.F.R., as amended. The term does not include adaptation or duplication of existing products where the products are not substantially improved by application of the technology, nor does the term include surveys and studies, social science and humanities research, market research or testing, quality control, sale promotion and service, computer software developed for internal use, and research in areas such as improved style, taste, and seasonal design.
Sec. 333. RCW
82.66.010 and 1995 c 352 s 1 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax deferral under this chapter.
(2) "Person" has the meaning given in RCW
82.04.030.
(3) "Department" means the department of ((revenue))taxation.
(4) "Investment project" means construction of buildings, site preparation, and the acquisition of related machinery and equipment when the buildings, machinery, and equipment are to be used in the operation of a new thoroughbred racetrack.
(5) "New thoroughbred racetrack" means a site for thoroughbred horse racing located west of the Cascade mountains on which construction is commenced prior to July 1, 1998.
(6) "Buildings" means only those new structures such as ticket offices, concession areas, grandstands, stables, and other structures that are an essential or an integral part of a thoroughbred racetrack. If a building is used partly for use as an essential or integral part of a thoroughbred racetrack and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.
(7) "Machinery and equipment" means all fixtures, equipment, and support facilities that are an integral and necessary part of a thoroughbred racetrack.
(8) "Recipient" means a person receiving a tax deferral under this chapter.
(9) "Certificate holder" means an applicant to whom a tax deferral certificate has been issued.
(10) "Operationally complete" means constructed or improved to the point of being functionally useable for thoroughbred horse racing.
(11) "Initiation of construction" means that date upon which on-site construction commences.
Sec. 334. RCW
82.73.010 and 2010 c 30 s 4 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax credit under this chapter.
(2) "Contribution" means cash contributions.
(3) "Department" means the department of ((revenue))taxation.
(4) "Main street trust fund" means the Washington main street trust fund account under RCW
43.360.050.
(5) "Person" has the meaning given in RCW
82.04.030.
(6) "Program" means a nonprofit organization under internal revenue code sections 501(c)(3) or 501(c)(6), with the sole mission of revitalizing a downtown or neighborhood commercial district area, that is designated by the department of archaeology and historic preservation as described in RCW
43.360.010 through
43.360.050.
Sec. 335. RCW
82.74.010 and 2006 c 354 s 6 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax deferral under this chapter.
(2) "Cold storage warehouse" means a storage warehouse owned or operated by a wholesaler or third-party warehouser as those terms are defined in RCW
82.08.820 to store fresh and/or frozen perishable fruits or vegetables, dairy products, seafood products, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.
(3) "Dairy product" means dairy products that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including by-products from the manufacturing of the dairy products such as whey and casein.
(4) "Dairy product manufacturing" means manufacturing, as defined in RCW
82.04.120, of dairy products.
(5) "Department" means the department of ((revenue))taxation.
(6) "Eligible investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction of the project. The lessor or owner of a qualified building is not eligible for a deferral unless (a) the underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person; or (b)(i) the lessor by written contract agrees to pass the economic benefit of the deferral to the lessee in the form of reduced rent payments, and (ii) the lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual survey under RCW
82.74.040. The economic benefit of the deferral to the lessee may be evidenced by any type of payment, credit, or any other financial arrangement between the lessor or owner of the qualified building and the lessee.
(7) "Fresh fruit and vegetable processing" means manufacturing as defined in RCW
82.04.120 which consists of the canning, preserving, freezing, processing, or dehydrating fresh fruits and/or vegetables.
(8)(a) "Initiation of construction" means the date that a building permit is issued under the building code adopted under RCW
19.27.031 for:
(i) Construction of the qualified building, if the underlying ownership of the building vests exclusively with the person receiving the economic benefit of the deferral;
(ii) Construction of the qualified building, if the economic benefits of the deferral are passed to a lessee as provided in subsection (6) of this section; or
(iii) Tenant improvements for a qualified building, if the economic benefits of the deferral are passed to a lessee as provided in subsection (6) of this section.
(b) "Initiation of construction" does not include soil testing, site clearing and grading, site preparation, or any other related activities that are initiated before the issuance of a building permit for the construction of the foundation of the building.
(c) If the investment project is a phased project, "initiation of construction" applies separately to each phase.
(9) "Person" has the meaning given in RCW
82.04.030.
(10) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity used for fresh fruit and vegetable processing, dairy product manufacturing, seafood product manufacturing, cold storage warehousing, and research and development activities, including plant offices and warehouses or other facilities for the storage of raw material or finished goods if such facilities are an essential or an integral part of a factory, plant, or laboratory used for fresh fruit and vegetable processing, dairy product manufacturing, seafood product manufacturing, cold storage warehousing, or research and development. If a building is used partly for fresh fruit and vegetable processing, dairy product manufacturing, seafood product manufacturing, cold storage warehousing, or research and development and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.
(11) "Qualified machinery and equipment" means all industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a fresh fruit and vegetable processing, dairy product manufacturing, seafood product manufacturing, cold storage warehouse, or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.
(12) "Recipient" means a person receiving a tax deferral under this chapter.
(13) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process related to fresh fruit and vegetable processing, dairy product manufacturing, seafood product manufacturing, or cold storage warehousing before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.
(14) "Seafood product" means any edible marine fish and shellfish that remains in a raw, raw frozen, or raw salted state.
(15) "Seafood product manufacturing" means the manufacturing, as defined in RCW
82.04.120, of seafood products.
Sec. 336. RCW
82.75.010 and 2010 c 114 s 145 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax deferral under this chapter.
(2) "Biotechnology" means a technology based on the science of biology, microbiology, molecular biology, cellular biology, biochemistry, or biophysics, or any combination of these, and includes, but is not limited to, recombinant DNA techniques, genetics and genetic engineering, cell fusion techniques, and new bioprocesses, using living organisms, or parts of organisms.
(3) "Biotechnology product" means any virus, therapeutic serum, antibody, protein, toxin, antitoxin, vaccine, blood, blood component or derivative, allergenic product, or analogous product produced through the application of biotechnology that is used in the prevention, treatment, or cure of diseases or injuries to humans.
(4) "Department" means the department of ((revenue))taxation.
(5)(a) "Eligible investment project" means an investment in qualified buildings or qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction of the project.
(b) The lessor or owner of a qualified building is not eligible for a deferral unless:
(i) The underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person; or
(ii)(A) The lessor by written contract agrees to pass the economic benefit of the deferral to the lessee;
(B) The lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual survey required under RCW
82.75.070; and
(C) The economic benefit of the deferral passed to the lessee is no less than the amount of tax deferred by the lessor and is evidenced by written documentation of any type of payment, credit, or other financial arrangement between the lessor or owner of the qualified building and the lessee.
(6)(a) "Initiation of construction" means the date that a building permit is issued under the building code adopted under RCW
19.27.031 for:
(i) Construction of the qualified building, if the underlying ownership of the building vests exclusively with the person receiving the economic benefit of the deferral;
(ii) Construction of the qualified building, if the economic benefits of the deferral are passed to a lessee as provided in subsection (5)(b)(ii)(A) of this section; or
(iii) Tenant improvements for a qualified building, if the economic benefits of the deferral are passed to a lessee as provided in subsection (5)(b)(ii)(A) of this section.
(b) "Initiation of construction" does not include soil testing, site clearing and grading, site preparation, or any other related activities that are initiated before the issuance of a building permit for the construction of the foundation of the building.
(c) If the investment project is a phased project, "initiation of construction" applies separately to each phase.
(7) "Manufacturing" has the meaning provided in RCW
82.04.120.
(8) "Medical device" means an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including any component, part, or accessory, that is designed or developed and:
(a) Recognized in the national formulary, or the United States pharmacopeia, or any supplement to them;
(b) Intended for use in the diagnosis of disease, or in the cure, mitigation, treatment, or prevention of disease or other conditions in human beings or other animals; or
(c) Intended to affect the structure or any function of the body of human beings or other animals, and which does not achieve any of its primary intended purposes through chemical action within or on the body of human beings or other animals and which is not dependent upon being metabolized for the achievement of any of its principal intended purposes.
(9) "Person" has the meaning provided in RCW
82.04.030.
(10) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity used for biotechnology product manufacturing or medical device manufacturing activities, including plant offices, commercial laboratories for process development, quality assurance and quality control, and warehouses or other facilities for the storage of raw material or finished goods if the facilities are an essential or an integral part of a factory, plant, or laboratory used for biotechnology product manufacturing or medical device manufacturing. If a building is used partly for biotechnology product manufacturing or medical device manufacturing and partly for other purposes, the applicable tax deferral must be determined by apportionment of the costs of construction under rules adopted by the department.
(11) "Qualified machinery and equipment" means all new industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a biotechnology product manufacturing or medical device manufacturing operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.
(12) "Recipient" means a person receiving a tax deferral under this chapter.
Sec. 337. RCW
82.80.010 and 2014 c 216 s 203 are each amended to read as follows:
(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW
82.38.020 and sells or distributes the fuel into a county.
(b) "Person" has the same meaning as in RCW
82.04.030.
(2) Subject to the conditions of this section, any county may levy, by approval of its legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election, additional excise taxes equal to ten percent of the statewide fuel tax rates under RCW
82.38.030 on motor vehicle fuel and special fuel as defined in RCW
82.38.020 sold within the boundaries of the county. Vehicles paying an annual license fee under RCW
82.38.075 are exempt from the county fuel excise tax. An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state the tax rate that is proposed. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapter
82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section must be the first day of January, April, July, or October.
(3) The local option motor vehicle fuel tax on motor vehicle fuel and on special fuel is imposed upon the distributor of the fuel.
(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.
(5) All administrative provisions in chapters
82.01, 82.03, and
82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
(6) Before the effective date of the imposition of the fuel taxes under this section, a county must contract with the department of ((revenue))taxation for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of ((revenue))taxation may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
(7) The state treasurer must distribute monthly to the levying county and cities contained therein the proceeds of the additional excise taxes collected under this section, after the deductions for payments and expenditures as provided in RCW
46.68.090(1) (a) and (b) and under the conditions and limitations provided in RCW
82.80.080.
(8) The proceeds of the additional excise taxes levied under this section must be used strictly for transportation purposes in accordance with RCW
82.80.070.
(9) A county may not levy the tax under this section if they are levying the tax in RCW
82.80.110 or if they are a member of a regional transportation investment district levying the tax in RCW
82.80.120.
Sec. 338. RCW
82.80.110 and 2014 c 216 s 204 are each amended to read as follows:
(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW
82.38.020 and sells or distributes the fuel into a county.
(b) "Person" has the same meaning as in RCW
82.04.030.
(2) For purposes of dedication to a regional transportation investment district plan under chapter
36.120 RCW, subject to the conditions of this section, a county may levy additional excise taxes equal to ten percent of the statewide fuel tax rates under RCW
82.38.030 on motor vehicle fuel and special fuel as defined in RCW
82.38.020 sold within the boundaries of the county. The additional excise tax is subject to the approval of the county's legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election. An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state that the revenues from the tax will be used for a regional transportation investment district plan. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. Vehicles paying an annual license fee under RCW
82.38.075 are exempt from the county fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapter
82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.
(3) The local option motor vehicle fuel tax on motor vehicle fuel and on special fuel is imposed upon the distributor of the fuel.
(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.
(5) All administrative provisions in chapters
82.01, 82.03, and
82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
(6) Before the effective date of the imposition of the fuel taxes under this section, a county must contract with the department of ((revenue))taxation for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of ((revenue))taxation may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
(7) The state treasurer must distribute monthly to the county levying the tax as part of a regional transportation investment plan, after the deductions for payments and expenditures as provided in RCW
46.68.090(1) (a) and (b).
(8) The proceeds of the additional taxes levied by a county in this section, to be used as a part of a regional transportation investment plan, must be used in accordance with chapter
36.120 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.
(9) A county may not levy the tax under this section if they are a member of a regional transportation investment district that is levying the tax in RCW
82.80.120 or the county is levying the tax in RCW
82.80.010.
Sec. 339. RCW
82.80.120 and 2014 c 216 s 205 are each amended to read as follows:
(1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW
82.38.020 and sells or distributes the fuel into a county.
(b) "Person" has the same meaning as in RCW
82.04.030.
(c) "District" means a regional transportation investment district under chapter
36.120 RCW.
(2) A regional transportation investment district under chapter
36.120 RCW, subject to the conditions of this section, may levy additional excise taxes equal to ten percent of the statewide fuel tax rates under RCW
82.38.030 on motor vehicle fuel and special fuel as defined in RCW
82.38.020 sold within the boundaries of the district. The additional excise tax is subject to the approval of a majority of the voters within the district boundaries. Vehicles paying an annual license fee under RCW
82.38.075 are exempt from the district's fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapter
82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.
(3) The local option motor vehicle fuel tax on motor vehicle fuel and on special fuel is imposed upon the distributor of the fuel.
(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of the district to a retail outlet, bulk fuel user, or ultimate user of the fuel.
(5) All administrative provisions in chapters
82.01, 82.03, and
82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
(6) Before the effective date of the imposition of the fuel taxes under this section, a district must contract with the department of ((revenue))taxation for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of ((revenue))taxation may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
(7) The state treasurer must distribute monthly to the district levying the tax as part of the regional transportation investment district plan, after the deductions for payments and expenditures as provided in RCW
46.68.090(1) (a) and (b).
(8) The proceeds of the additional taxes levied by a district in this section, to be used as a part of a regional transportation investment district plan, must be used in accordance with chapter
36.120 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.
(9) A district may only levy the tax under this section if the district is comprised of boundaries identical to the boundaries of a county or counties. A district may not levy the tax in this section if a member county is levying the tax in RCW
82.80.010 or
82.80.110.
Sec. 340. RCW
82.82.010 and 2008 c 15 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Applicant" means a person applying for a tax deferral under this chapter.
(2) "Corporate headquarters" means a facility or facilities where corporate staff employees are physically employed, and where the majority of the company's management services are handled either on a regional or a national basis. Company management services may include: Accounts receivable and payable, accounting, data processing, distribution management, employee benefit plan, financial and securities accounting, information technology, insurance, legal, merchandising, payroll, personnel, purchasing procurement, planning, reporting and compliance, research and development, tax, treasury, or other headquarters-related services. "Corporate headquarters" does not include a facility or facilities used for manufacturing, wholesaling, or warehousing.
(3) "Department" means the department of ((revenue))taxation.
(4) "Eligible area" means a designated community empowerment zone approved under RCW
43.31C.020.
(5)(a) "Eligible investment project" means an investment project in a qualified building or buildings in an eligible area, as defined in subsection (4) of this section, which will have employment at the qualified building or buildings of at least three hundred employees in qualified employment positions, each of whom must earn for the year reported at least the average annual wage for the state for that year as determined by the employment security department.
(b) The lessor or owner of a qualified building or buildings is not eligible for a deferral unless:
(i) The underlying ownership of the building or buildings vests exclusively in the same person; or
(ii)(A) The lessor by written contract agrees to pass the economic benefit of the deferral to the lessee;
(B) The lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual survey required under RCW
82.82.020; and
(C) The economic benefit of the deferral passed to the lessee is no less than the amount of tax deferred by the lessor and is evidenced by written documentation of any type of payment, credit, or other financial arrangement between the lessor or owner of the qualified building and the lessee.
(6) "Investment project" means a capital investment of at least thirty million dollars in a qualified building or buildings including tangible personal property and fixtures that will be incorporated as an ingredient or component of such buildings during the course of their construction, and including labor and services rendered in the planning, installation, and construction of the project.
(7) "Manufacture" has the same meaning as provided in RCW
82.04.120.
(8) "Operationally complete" means a date no later than one year from the date the project is issued an occupancy permit by the local permit issuing authority.
(9) "Person" has the same meaning as provided in RCW
82.04.030.
(10) "Qualified building or buildings" means construction of a new structure or structures or expansion of an existing structure or structures to be used for corporate headquarters. If a building is used partly for corporate headquarters and partly for other purposes, the applicable tax deferral is determined by apportionment of the costs of construction under rules adopted by the department.
(11) "Qualified employment position" means a permanent full-time employee employed in the eligible investment project during the entire tax year. The term "entire tax year" means a full-time position that is filled for a period of twelve consecutive months. The term "full-time" means at least thirty-five hours a week, four hundred fifty-five hours a quarter, or one thousand eight hundred twenty hours a year.
(12) "Recipient" means a person receiving a tax deferral under this chapter.
(13) "Warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation.
(14) "Wholesale sale" has the same meaning as provided in RCW
82.04.060.
Sec. 341. RCW
83.100.020 and 2013 2nd sp.s. c 2 s 2 are each reenacted and amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1)(a) "Applicable exclusion amount" means:
(i) One million five hundred thousand dollars for decedents dying before January 1, 2006;
(ii) Two million dollars for estates of decedents dying on or after January 1, 2006, and before January 1, 2014; and
(iii) For estates of decedents dying in calendar year 2014 and each calendar year thereafter, the amount in (a)(ii) of this subsection must be adjusted annually, except as otherwise provided in this subsection (1)(a)(iii). The annual adjustment is determined by multiplying two million dollars by one plus the percentage by which the most recent October consumer price index exceeds the consumer price index for October 2012, and rounding the result to the nearest one thousand dollars. No adjustment is made for a calendar year if the adjustment would result in the same or a lesser applicable exclusion amount than the applicable exclusion amount for the immediately preceding calendar year. The applicable exclusion amount under this subsection (1)(a)(iii) for the decedent's estate is the applicable exclusion amount in effect as of the date of the decedent's death.
(b) For purposes of this subsection, "consumer price index" means the consumer price index for all urban consumers, all items, for the Seattle-Tacoma-Bremerton metropolitan area as calculated by the United States bureau of labor statistics.
(2) "Decedent" means a deceased individual.
(3) "Department" means the department of ((revenue))taxation, the director of that department, or any employee of the department exercising authority lawfully delegated to him or her by the director.
(4) "Federal return" means any tax return required by chapter 11 of the internal revenue code.
(5) "Federal tax" means a tax under chapter 11 of the internal revenue code.
(6) "Federal taxable estate" means the taxable estate as determined under chapter 11 of the internal revenue code without regard to: (a) The termination of the federal estate tax under section 2210 of the internal revenue code or any other provision of law, and (b) the deduction for state estate, inheritance, legacy, or succession taxes allowable under section 2058 of the internal revenue code.
(7) "Gross estate" means "gross estate" as defined and used in section 2031 of the internal revenue code.
(8) "Internal revenue code" means the United States internal revenue code of 1986, as amended or renumbered as of January 1, 2005.
(9) "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity and, to the extent permitted by law, any federal, state, or other governmental unit or subdivision or agency, department, or instrumentality thereof.
(10) "Person required to file the federal return" means any person required to file a return required by chapter 11 of the internal revenue code, such as the personal representative of an estate.
(11) "Property" means property included in the gross estate.
(12) "Resident" means a decedent who was domiciled in Washington at time of death.
(13) "Taxpayer" means a person upon whom tax is imposed under this chapter, including an estate or a person liable for tax under RCW
83.100.120.
(14) "Transfer" means "transfer" as used in section 2001 of the internal revenue code and includes any shifting upon death of the economic benefit in property or any power or legal privilege incidental to the ownership or enjoyment of property. However, "transfer" does not include a qualified heir disposing of an interest in property qualifying for a deduction under RCW
83.100.046 or ceasing to use the property for farming purposes.
(15) "Washington taxable estate" means the federal taxable estate and includes, but is not limited to, the value of any property included in the gross estate under section 2044 of the internal revenue code, regardless of whether the decedent's interest in such property was acquired before May 17, 2005, (a) plus amounts required to be added to the Washington taxable estate under RCW
83.100.047, (b) less: (i) The applicable exclusion amount; (ii) the amount of any deduction allowed under RCW
83.100.046; (iii) amounts allowed to be deducted from the Washington taxable estate under RCW
83.100.047; and (iv) the amount of any deduction allowed under RCW
83.100.048.
Sec. 342. RCW
83.100.160 and 1993 c 413 s 1 are each amended to read as follows:
Upon filing findings under RCW
83.100.150, the clerk of the superior court shall give notice of the filing by causing notice thereof to be posted at the courthouse in the county in which the court is located. In addition, the department of ((
revenue))
taxation shall give notice of the filing to all persons interested in the proceeding by mailing a copy of the notice to all persons having an interest in property subject to the tax. The department of ((
revenue))
taxation is not required to conduct a search for persons interested in the proceedings or property. The department of ((
revenue))
taxation must mail a copy of the notice only to persons of whom the department has received actual notice as having an interest in the proceeding or property, and, if a probate or administrative proceeding has been commenced in this state, to persons who are listed in the court file as having an interest in the proceedings or property.
Sec. 343. RCW
84.04.047 and 1979 c 107 s 25 are each amended to read as follows:
"Department" means the department of ((revenue))taxation of the state of Washington.
Sec. 344. RCW
84.08.010 and 1975 1st ex.s. c 278 s 147 are each amended to read as follows:
The department of ((revenue))taxation shall:
(1) Exercise general supervision and control over the administration of the assessment and tax laws of the state, over county assessors, and county boards of equalization, and over boards of county commissioners, county treasurers and county auditors and all other county officers, in the performance of their duties relating to taxation, and perform any act or give any order or direction to any county board of equalization or to any county assessor or to any other county officer as to the valuation of any property, or class or classes of property in any county, township, city or town, or as to any other matter relating to the administration of the assessment and taxation laws of the state, which, in the department's judgment may seem just and necessary, to the end that all taxable property in this state shall be listed upon the assessment rolls and valued and assessed according to the provisions of law, and equalized between persons, firms, companies and corporations, and between the different counties of this state, and between the different taxing units and townships, so that equality of taxation and uniformity of administration shall be secured and all taxes shall be collected according to the provisions of law.
(2) Formulate such rules and processes for the assessment of both real and personal property for purposes of taxation as are best calculated to secure uniform assessment of property of like kind and value in the various taxing units of the state, and relative uniformity between properties of different kinds and values in the same taxing unit. The department of ((revenue))taxation shall furnish to each county assessor a copy of the rules and processes so formulated. The department of ((revenue))taxation may, from time to time, make such changes in the rules and processes so formulated as it deems advisable to accomplish the purpose thereof, and it shall inform all county assessors of such changes.
(3) Visit the counties in the state, unless prevented by necessary official duties, for the investigation of the methods adopted by the county assessors and county boards of commissioners in the assessment and equalization of taxation of real and personal property; carefully examine into all cases where evasion of property taxation is alleged, and ascertain where existing laws are defective, or improperly or negligently administered.
Sec. 345. RCW
84.08.020 and 1975 1st ex.s. c 278 s 148 are each amended to read as follows:
The department of ((revenue))taxation shall:
(1) Confer with, advise and direct assessors, boards of equalization, county boards of commissioners, county treasurers, county auditors and all other county and township officers as to their duties under the law and statutes of the state, relating to taxation, and direct what proceedings, actions or prosecutions shall be instituted to support the law relating to the penalties, liabilities and punishment of public officers, persons, and officers or agents of corporations for failure or neglect to comply with the provisions of the statutes governing the return, assessment and taxation of property, and the collection of taxes, and cause complaint to be made against any of such public officers in the proper county for their removal from office for official misconduct or neglect of duty. In the execution of these powers and duties the said department or any member thereof may call upon prosecuting attorneys or the attorney general, who shall assist in the commencement and prosecution for penalties and forfeiture, liabilities and punishments for violations of the laws of the state in respect to the assessment and taxation of property.
(2) Prescribe all forms of books and blanks to be used in the assessment and collection of taxes, and change such forms when prescribed by law, and recommend to the legislature such changes as may be deemed most economical to the state and counties, and such recommendation shall be accompanied by carefully prepared bill or bills for this end.
(3) Require county, city and town officers to report information as to assessments of property, equalization of taxes, the expenditure of public funds for all purposes, and other information which said department of ((revenue))taxation may request.
Sec. 346. RCW
84.08.030 and 1975-'76 2nd ex.s. c 94 s 1 are each amended to read as follows:
The department of ((revenue))taxation shall examine and test the work of county assessors at any time, and have and possess all rights and powers of such assessors for the examination of persons, and property, and for the discovery of property subject to taxation, and if it shall ascertain that any taxable property is omitted from the assessment list, or not assessed or valued according to law, it shall bring the same to the attention of the assessor of the proper county in writing, and if such assessor shall neglect or refuse to comply with the request of the department of ((revenue))taxation to place such property on the assessment list, or to correct such incorrect assessment or valuation the department of ((revenue))taxation shall have the power to prepare a supplement to such assessment list, which supplement shall include all property required by the department of ((revenue))taxation to be placed on the assessment list and all corrections required to be made. Such supplement shall be filed with the assessor's assessment list and shall thereafter constitute an integral part thereof to the exclusion of all portions of the original assessment list inconsistent therewith, and shall be submitted therewith to the county board of equalization. As part of the examining and testing of the work of county assessors to be accomplished pursuant to this section, the department of ((revenue))taxation shall audit statewide at least one-half of one percent of all personal property accounts listed each calendar year.
Sec. 347. RCW
84.08.040 and 1975 1st ex.s. c 278 s 149 are each amended to read as follows:
The department of ((revenue))taxation shall secure, tabulate, and keep records of valuations of all classes of property throughout the state, and for that purpose, shall have access to all records and files of state offices and departments and county and municipal offices and shall require all public officers and employees whose duties make it possible to ascertain valuations, including valuations of property of public service corporations for rate making purposes to file reports with the department of ((revenue))taxation, giving such information as to such valuation and the source thereof: PROVIDED, That the nature and kind of the tabulations, records of valuation and requirements from public officers, as stated herein, shall be in such form, and cover such valuations, as the department of ((revenue))taxation shall prescribe.
Sec. 348. RCW
84.08.050 and 2003 c 53 s 407 are each amended to read as follows:
(1) The department of ((revenue))taxation shall:
(a) Require individuals, partnerships, companies, associations and corporations to furnish information as to their capital, funded debts, investments, value of property, earnings, taxes and all other facts called for on these subjects so that the department may determine the taxable value of any property or any other fact it may consider necessary to carry out any duties now or hereafter imposed upon it, or may ascertain the relative burdens borne by all kinds and classes of property within the state, and for these purposes their records, books, accounts, papers and memoranda shall be subject to production and inspection, investigation and examination by the department, or any employee thereof designated by the department for such purpose, and any or all real and/or personal property in this state shall be subject to visitation, investigation, examination and/or listing at any and all times by the department or by any employee thereof designated by the department.
(b) Summon witnesses to appear and testify on the subject of capital, funded debts, investments, value of property, earnings, taxes, and all other facts called for on these subjects, or upon any matter deemed material to the proper assessment of property, or to the investigation of the system of taxation, or the expenditure of public funds for state, county, district and municipal purposes: PROVIDED, HOWEVER, No person shall be required to testify outside of the county in which the taxpayer's residence, office or principal place of business, as the case may be, is located. Such summons shall be served in like manner as a subpoena issued out of the superior court and be served by the sheriff of the proper county, and such service certified by him or her to the department without compensation therefor. Persons appearing before the department in obedience to a summons shall in the discretion of the department receive the same compensation as witnesses in the superior court.
(c) Thoroughly investigate all complaints which may be made to it of illegal, unjust or excessive taxation, and shall endeavor to ascertain to what extent and in what manner, if at all, the present system is inequal or oppressive.
(2) Any member of the department or any employee thereof designated for that purpose may administer oaths to witnesses.
(3)(a) In case any witness shall fail to obey the summons to appear, or refuse to testify, or shall fail or refuse to comply with any of the provisions of subsection (1)(a) or (b) of this section, such person, for each separate or repeated offense, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not less than fifty dollars, nor more than five thousand dollars.
(b) Any person who shall testify falsely is guilty of perjury and shall be punished under chapter
9A.72 RCW.
Sec. 349. RCW
84.08.060 and 1988 c 222 s 9 are each amended to read as follows:
The department of ((revenue))taxation shall have power to direct and to order any county board of equalization to raise or lower the valuation of any taxable property, or to add any property to the assessment list, or to perform or complete any other duty required by statute. The department of ((revenue))taxation may require any such board of equalization to reconvene after its adjournment for the purpose of performing any order or requirement made by the department of ((revenue))taxation and may make such orders as it shall determine to be just and necessary. The department may require any county board of equalization to reconvene at any time for the purpose of performing or completing any duty or taking any action it might lawfully have performed or taken at any of its previous meetings. No board may be reconvened later than three years after the date of adjournment of its regularly convened session. If such board of equalization shall fail or refuse forthwith to comply with any such order or requirement of the department of ((revenue))taxation, the department of ((revenue))taxation shall have power to take any other appropriate action, or to make such correction or change in the assessment list, and such corrections and changes shall be a part of the record of the proceedings of the said board of equalization: PROVIDED, That in all cases where the department of ((revenue))taxation shall raise the valuation of any property or add property to the assessment list, it shall give notice either for the same time and in the same manner as is now required in like cases of county boards of equalization, or if it shall deem such method of giving notice impracticable it shall give notice by publication thereof in a newspaper of general circulation within the county in which the property affected is situated once each week for two consecutive weeks, and the department of ((revenue))taxation shall not proceed to raise such valuation or add such property to the assessment list until a period of five days shall have elapsed subsequent to the date of the last publication of such notice: PROVIDED FURTHER, That appeals to the board of tax appeals by any taxpayer or taxing unit concerning any action of the county board of equalization shall not raise the valuation of the property to an amount greater than the larger of either the valuation of the property by the county assessor or the valuation of the property assigned by the county board of equalization. Such notice shall give the legal description of each tract of land involved, or a general description in case of personal property; the tax record-owner thereof; the assessed value thereof determined by the county board of equalization in case the property is on the assessment roll; and the assessed value thereof as determined by the department of ((revenue))taxation and shall state that the department of ((revenue))taxation proposes to increase the assessed valuation of such property to the amount stated and to add such property to the assessment list at the assessed valuation stated. The necessary expense incurred by the department of ((revenue))taxation in making such reassessment and/or adding such property to the assessment list shall be borne by the county or township in which the property as reassessed and/or so added to the assessment list is situated and shall be paid out of the proper funds of such county upon the order of the department of ((revenue))taxation.
Sec. 350. RCW
84.08.070 and 1975 1st ex.s. c 278 s 151 are each amended to read as follows:
The department of ((revenue))taxation shall make such rules and regulations as may be necessary to carry out the powers granted by this chapter, and for conducting hearings and other proceedings before it.
Sec. 351. RCW
84.08.080 and 1975 1st ex.s. c 278 s 152 are each amended to read as follows:
The department of ((revenue))taxation shall, with the advice of the attorney general, decide all questions that may arise in reference to the true construction or interpretation of this title, or any part thereof, with reference to the powers and duties of taxing district officers, and such decision shall have force and effect until modified or annulled by the judgment or decree of a court of competent jurisdiction.
Sec. 352. RCW
84.08.120 and 2013 c 23 s 342 are each amended to read as follows:
It shall be the duty of every public officer to comply with any lawful order, rule, or regulation of the department of ((revenue))taxation made under the provisions of this title, and whenever it shall appear to the department of ((revenue))taxation that any public officer or employee whose duties relate to the assessment or equalization of assessments of property for taxation or to the levy or collection of taxes has failed to comply with the provisions of this title or with any other law relating to such duties or the rules of the department made in pursuance thereof, the department after a hearing on the facts may issue its order directing such public officer or employee to comply with such provisions of law or of its rules, and if such public officer or employee for a period of ten days after service on him or her of the department's order shall neglect or refuse to comply therewith, the department of ((revenue))taxation may apply to a judge of the superior court or court commissioner of the county in which said public officer or employee holds office for an order returnable within five days from the date thereof to compel such public officer or employee to comply with such provisions of law or of the department's order, or to show cause why he or she should not be compelled so to do, and any order issued by the judge pursuant thereto shall be final. The remedy herein provided shall be cumulative and shall not exclude the department of ((revenue))taxation from exercising any power or rights otherwise granted.
Sec. 353. RCW
84.08.140 and 2013 c 23 s 343 are each amended to read as follows:
Any taxpayer feeling aggrieved by the levy or levies of any taxing district except levies authorized by a vote of the voters of the district may appeal therefrom to the department of ((revenue))taxation as hereinafter provided. Such taxpayer, upon the execution of a bond, with two or more sufficient sureties to be approved by the county auditor, payable to the state of Washington, in the penal sum of two hundred dollars and conditioned that if the petitioner shall fail in his or her appeal for a reduction of said levy or levies the taxpayer will pay the taxable costs of the hearings hereinafter provided, not exceeding the amount of such bond, may file a written complaint with the county auditor wherein such taxing district is located not later than ten days after the making and entering of such levy or levies, setting forth in such form and detail as the department of ((revenue))taxation shall by general rule prescribe, the taxpayer's objections to such levy or levies. Upon the filing of such complaint, the county auditor shall immediately transmit a certified copy thereof, together with a copy of the budget or estimates of such taxing district as finally adopted, including estimated revenues and such other information as the department of ((revenue))taxation shall by rule require, to the department of ((revenue))taxation. The department of ((revenue))taxation shall fix a date for a hearing on said complaint at the earliest convenient time after receipt of said record, which hearing shall be held in the county in which said taxing district is located, and notice of such hearing shall be given to the officials of such taxing district, charged with determining the amount of its levies, and to the taxpayer on said complaint by registered mail at least five days prior to the date of said hearing. At such hearings all interested parties may be heard and the department of ((revenue))taxation shall receive all competent evidence. After such hearing, the department of ((revenue))taxation shall either affirm or decrease the levy or levies complained of, in accordance with the evidence, and shall thereupon certify its action with respect thereto to the county auditor, who, in turn, shall certify it to the taxing district or districts affected, and the action of the department of ((revenue))taxation with respect to such levy or levies shall be final and conclusive.
Sec. 354. RCW
84.08.190 and 2013 c 23 s 344 are each amended to read as follows:
For the purpose of instruction on the subject of taxation, the county assessors of the state shall meet with the department of ((revenue))taxation at the capital of the state, or at such place within the state as they may determine at their previous meeting, on the second Monday of October of each year or on such other date as may be fixed by the department of ((revenue))taxation. Each assessor shall be paid by the county of his or her residence his or her actual expenses in attending such meeting, upon presentation to the county auditor of proper vouchers.
Sec. 355. RCW
84.12.200 and 2013 c 56 s 1 are each reenacted and amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1)(a) "Airplane company" means and includes any person owning, controlling, operating or managing real or personal property, used or to be used for or in connection with or to facilitate the conveyance and transportation of persons and/or property by aircraft, and engaged in the business of transporting persons and/or property for compensation, as owner, lessee or otherwise.
(b) "Airplane company" does not include a "commuter air carrier" as defined in RCW
82.48.010, whose ground property and equipment is located primarily on privately held real property.
(2) "Company" means and includes any railroad company, airplane company, electric light and power company, telegraph company, telephone company, gas company, pipe line company, or logging railroad company; and the term "companies" means and includes all of such companies.
(3) "Department" without other designation means the department of ((revenue))taxation of the state of Washington.
(4) "Electric light and power company" means and includes any person owning, controlling, operating or managing real or personal property, used or to be used for or in connection with or to facilitate the generation, transmission or distribution of electricity in this state, and engaged in the business of furnishing, transmitting, distributing or generating electrical energy for light, heat or power for compensation as owner, lessee or otherwise.
(5) "Gas company" means and includes any person owning, controlling, operating or managing real or personal property, used or to be used for or in connection with or to facilitate the manufacture, transportation, or distribution of natural or manufactured gas in this state, and engaged for compensation in the business of furnishing gas for light, heat, power or other use, as owner, lessee or otherwise.
(6) "Logging railroad company" means and includes any person owning, controlling, operating or managing real or personal property, used or to be used for or in connection with or to facilitate the conveyance and transportation of forest products by rail in this state, and engaged in the business of transporting forest products either as private carrier or carrier for hire.
(7) "Nonoperating property" means all physical property owned by any company, other than that used during the preceding calendar year in the conduct of its operations. It includes all lands and/or buildings wholly used by any person other than the owning company. In cases where lands and/or buildings are used partially by the owning company in the conduct of its operations and partially by any other person not assessable under this chapter under lease, sublease, or other form of tenancy, the operating and nonoperating property of the company whose property is assessed under this section must be determined by the department of ((revenue))taxation in such manner as will, in its judgment, secure the separate valuation of such operating and nonoperating property upon a fair and equitable basis. The amount of operating revenue received from tenants or occupants of property of the owning company may not be considered material in determining the classification of such property.
(8) "Operating property" means and includes all property, real and personal, owned by any company, or held by it as occupant, lessee or otherwise, including all franchises and lands, buildings, rights-of-way, water powers, motor vehicles, wagons, horses, aircraft, aerodromes, hangars, office furniture, water mains, gas mains, pipe lines, pumping stations, tanks, tank farms, holders, reservoirs, telephone lines, telegraph lines, transmission and distribution lines, dams, generating plants, poles, wires, cables, conduits, switch boards, devices, appliances, instruments, equipment, machinery, landing slips, docks, roadbeds, tracks, terminals, rolling stock equipment, appurtenances and all other property of a like or different kind, situate within the state of Washington, used by the company in the conduct of its operations; and, in case of personal property used partly within and partly without the state, it means and includes a proportion of such personal property to be determined as in this chapter provided.
(9) "Person" means and includes any individual, firm, copartnership, joint venture, association, corporation, trust, or any other group acting as a unit, whether mutual, cooperative or otherwise, and/or trustees or receivers appointed by any court.
(10) "Pipe line company" means and includes any person owning, controlling, operating or managing real or personal property, used or to be used for or in connection with or to facilitate the conveyance or transportation of oils, natural or manufactured gas and/or other substances, except water, by pipe line in this state, and engaged in such business for compensation, as owner, lessee or otherwise.
(11) "Railroad company" means and includes any person owning or operating a railroad, street railway, suburban railroad or interurban railroad in this state, whether its line of railroad be maintained at the surface, or above or below the surface of the earth, or by whatever power its vehicles are transported; or owning any station, depot, terminal or bridge for railroad purposes, as owner, lessee or otherwise.
(12) "Telegraph company" means and includes any person owning, controlling, operating or managing any telegraph or cable line in this state, with appliances for the transmission of messages, and engaged in the business of furnishing telegraph service for compensation, as owner, lessee or otherwise.
(13) "Telephone company" means and includes any person owning, controlling, operating or managing real or personal property, used or to be used for or in connection with or to facilitate the transmission of communication by telephone in this state through owned or controlled exchanges and/or switchboards, and engaged in the business of furnishing telephonic communication for compensation as owner, lessee or otherwise.
Sec. 356. RCW
84.12.220 and 1975 1st ex.s. c 278 s 160 are each amended to read as follows:
In all matters relating to assessment and taxation the department of ((revenue))taxation shall have jurisdiction to determine what is operating property and what is nonoperating property.
Sec. 357. RCW
84.12.230 and 1998 c 311 s 12 are each amended to read as follows:
Each company doing business in this state shall annually on or before the 15th day of March, make and file with the department of ((revenue))taxation an annual report, in such manner, upon such form, and giving such information as the department may direct: PROVIDED, That the department, upon written request filed on or before such date and for good cause shown therein, may allow an extension of time for filing not to exceed sixty days. At the time of making such report each company shall also be required to furnish to the department the annual reports of the board of directors, or other officers to the stockholders of the company, duplicate copies of the annual reports made to the interstate commerce commission or its successor agency and to the utilities and transportation commission of this state and duplicate copies of such other reports as the department may direct: PROVIDED, That the duplicate copies of these annual reports shall not be due until such time as they are due to the stockholders or commissioners.
Sec. 358. RCW
84.12.240 and 2013 c 23 s 346 are each amended to read as follows:
The department of ((revenue))taxation shall have access to all books, papers, documents, statements, and accounts on file or of record in any of the departments of the state; and it shall have the power to issue subpoenas, signed by the director of the department or any duly authorized employee and served in a like manner as a subpoena issued from courts of record, to compel witnesses to appear and give evidence and to produce books and papers. The director of the department or any employee officially designated by the department is authorized to administer oaths to witnesses. The attendance of any witness may be compelled by attachment issued out of any superior court upon application to said court by the director or any duly authorized employee of the department, upon a proper showing that such witness has been duly served with a subpoena and has refused to appear before the said department. In case of the refusal of a witness to produce books, papers, documents, or accounts, or to give evidence on matters material to the hearing, the department may institute proceedings in the proper superior court to compel such witness to testify or to produce such books or papers, and to punish him or her for such failure or refusal. All process issued by the department shall be served by the sheriff of the proper county or by a duly authorized agent of the department and such service, if made by the sheriff, shall be certified by him or her to the department of ((revenue))taxation without any compensation therefor. Persons appearing before the department in obedience to a subpoena shall receive the same compensation as witnesses in the superior court. The records, books, accounts, and papers of each company shall be subject to visitation, investigation, or examination by the department, or any employee thereof officially designated by the department. All real and/or personal property of any company shall be subject to visitation, investigation, examination, and/or listing at any and all times by the department, or any person officially designated by the director.
Sec. 359. RCW
84.12.250 and 1975 1st ex.s. c 278 s 163 are each amended to read as follows:
The department of ((revenue))taxation, in any matter material to the valuation, assessment or taxation of the operating property of any company, may cause the deposition of witnesses residing without the state or absent therefrom, to be taken upon notice to the company interested in like manner as the depositions of witnesses are taken in civil actions in the superior court.
Sec. 360. RCW
84.12.260 and 2007 c 111 s 201 are each amended to read as follows:
(1) If any company shall fail to materially comply with the provisions of RCW
84.12.230, the department shall add to the value of such company, as a penalty for such failure, five percent for every thirty days or fraction thereof, not to exceed ten percent, that the company fails to comply.
(2) If any company, or any of its officers or agents shall refuse or neglect to make any report required by this chapter, or by the department of ((revenue))taxation, or shall refuse to permit an inspection and examination of its records, books, accounts, papers or property requested by the department of ((revenue))taxation, or shall refuse or neglect to appear before the department of ((revenue))taxation in obedience to a subpoena, the department of ((revenue))taxation shall inform itself to the best of its ability of the matters required to be known, in order to discharge its duties with respect to valuation and assessment of the property of such company, and the department shall add to the value so ascertained twenty-five percent as a penalty for such failure or refusal and such company shall be estopped to question or impeach the assessment of the department in any hearing or proceeding thereafter. Such penalty shall be in lieu of the penalty provided for in subsection (1) of this section.
(3) The department shall waive or cancel the penalty imposed under subsection (1) of this section for good cause shown.
(4) The department shall waive or cancel the penalty imposed under subsection (1) of this section when the circumstances under which the failure to materially comply with the provisions of RCW
84.12.230 do not qualify for waiver or cancellation under subsection (3) of this section if:
(a) The company fully complies with the reporting provisions of RCW
84.12.230 within thirty days of the due date or any extension granted by the department; and
(b) The company has timely complied with the provisions of RCW
84.12.230 for the previous two calendar years. The requirement that a company has timely complied with the provisions of RCW
84.12.230 for the previous two calendar years is waived for any calendar year in which the company was not required to comply with the provisions of RCW
84.12.230.
Sec. 361. RCW
84.12.270 and 2017 c 323 s 529 are each amended to read as follows:
The department of ((revenue))taxation must annually make an assessment of the operating property of all companies. Between the fifteenth day of March and the first day of July of each year the department must prepare an initial assessment roll upon which the department must enter and assess the true and fair value of all the operating property of each of such companies as of the first day of January of the year in which the assessment is made. The department must finalize the assessment roll by the twentieth day of August of each year. For the purpose of determining the true and fair value of such property the department of ((revenue))taxation may inspect the property belonging to the companies and may take into consideration any information or knowledge obtained by the department from an examination and inspection of such property, or of the books, records, and accounts of such companies, the statements filed as required by this chapter, the reports, statements, or returns of such companies filed in the office of any board, office, or commission of this state or any county thereof, the earnings and earning power of such companies, the franchises owned or used by such companies, the true and fair valuation of any and all property of such companies, whether operating or nonoperating property, and whether situated within or outside the state, and any other facts, evidence, or information that may be obtainable bearing upon the value of the operating property. However, in no event may any statement or report required from any company by this chapter be conclusive upon the department of ((revenue))taxation in determining the amount, character, and true and fair value of the operating property of such company.
Sec. 362. RCW
84.12.300 and 1975 1st ex.s. c 278 s 166 are each amended to read as follows:
In determining the value of the operating property within this state of any company, the properties of which lie partly within and partly without this state, the department of ((revenue))taxation may, among other things, take into consideration the value of the whole system as a unit, and for such purpose may determine, insofar as the same is reasonably ascertainable, the salvage value, the actual cost new, the cost of reproduction new less depreciation and plus appreciation, the par value, actual value and market value of the company's outstanding stocks and bonds during one or more preceding years, the past, present and prospective gross and net earnings of the whole system as a unit.
In apportioning such system value to the state, the department of ((revenue))taxation shall consider relative costs, relative reproduction cost, relative future prospects and relative track mileage and the distribution of terminal properties within and without the state and such other matters and things as the department may deem pertinent.
The department may also take into consideration the actual cost, cost of reproduction new, and cost of reproduction new less depreciation, earning capacity and future prospects of the property, located within the state and all other matters and things deemed pertinent by the department of ((revenue))taxation.
Sec. 363. RCW
84.12.310 and 2001 c 187 s 5 are each amended to read as follows:
For the purpose of determining the system value of the operating property of any such company, the department of ((revenue))taxation shall deduct from the true and fair value of the total assets of such company, the actual cash value of all nonoperating property owned by such company. For such purpose the department of ((revenue))taxation may require of the assessors of the various counties within this state a detailed list of such company's properties assessed by them, together with the assessable or assessed value thereof: PROVIDED, That such assessed or assessable value shall be advisory only and not conclusive on the department of ((revenue))taxation as to the value thereof.
Sec. 364. RCW
84.12.330 and 2017 c 323 s 530 are each amended to read as follows:
Upon the assessment roll must be placed after the name of each company a general description of the operating property of the company, which is considered sufficient if described in the language of RCW
84.12.200(8), as applied to the company, following which must be entered the true and fair value of the operating property as determined by the department of ((
revenue))
taxation. No assessment may be invalidated by reason of a mistake in the name of the company assessed, or the omission of the name of the owner or by the entry as owner of a name other than that of the true owner. When the department of ((
revenue))
taxation has prepared the assessment roll and entered thereon the true and fair value of the operating property of the company, as herein required, the department must notify the company by mail of the valuation determined by it and entered upon the roll.
Sec. 365. RCW
84.12.340 and 1994 c 124 s 14 are each amended to read as follows:
Following the making of an assessment, every company may present a motion for a hearing on the assessment with the department of ((revenue))taxation within the first ten working days of July. The hearing on this motion shall be held within ten working days following the hearing request period. During this hearing, the company may present evidence relating to the value of its operating property and to the value of other taxable property in the counties in which its operating property is situate. Upon request in writing for such hearing, the department shall appoint a time and place therefor, within the period aforesaid, the hearing to be conducted in such manner as the department shall direct. Hearings provided for in this section may be held at such times and in such places throughout the state as the department may deem proper or necessary, may be adjourned from time to time and from place to place and may be conducted by the department of ((revenue))taxation or by such member or members thereof as may be duly delegated to act for it. Testimony taken at this hearing shall be recorded.
Sec. 366. RCW
84.12.350 and 2001 c 187 s 7 are each amended to read as follows:
Upon determination by the department of ((revenue))taxation of the true and fair value of the property appearing on such rolls it shall apportion such value to the respective counties entitled thereto, as hereinafter provided, and shall determine the equalized assessed valuation of such property in each such county and in the several taxing districts therein, by applying to such actual apportioned value the same ratio as the ratio of assessed to actual value of the general property in such county: PROVIDED, That, whenever the amount of the true and fair value of the operating property of any company otherwise apportionable to any county or other taxing district shall be less than two hundred fifty dollars, such amount need not be apportioned to such county or taxing district but may be added to the amount apportioned to an adjacent county or taxing district.
Sec. 367. RCW
84.12.360 and 2001 c 187 s 8 are each amended to read as follows:
The true and fair value of the operating property assessed to a company, as fixed and determined by the department of ((revenue))taxation, shall be apportioned by the department of ((revenue))taxation to the respective counties and to the taxing districts thereof wherein such property is located in the following manner:
(1) Property of all railroad companies other than street railroad companies, telegraph companies and pipe line companies—upon the basis of that proportion of the value of the total operating property within the state which the mileage of track, as classified by the department of ((revenue))taxation (in case of railroads), mileage of wire (in the case of telegraph companies), and mileage of pipe line (in the case of pipe line companies) within each county or taxing district bears to the total mileage thereof within the state, at the end of the calendar year last past. For the purpose of such apportionment the department may classify railroad track.
(2) Property of street railroad companies, telephone companies, electric light and power companies, and gas companies—upon the basis of relative value of the operating property within each county and taxing district to the value of the total operating property within the state to be determined by such factors as the department of ((revenue))taxation shall deem proper.
(3) Planes or other aircraft of airplane companies—upon the basis of such factor or factors of allocation, to be determined by the department of ((revenue))taxation, as will secure a substantially fair and equitable division between counties and other taxing districts.
All other property of airplane companies—upon the basis set forth in subsection (2) of this section.
The basis of apportionment with reference to all public utility companies above prescribed shall not be deemed exclusive and the department of ((revenue))taxation in apportioning values of such companies may also take into consideration such other information, facts, circumstances, or allocation factors as will enable it to make a substantially just and correct valuation of the operating property of such companies within the state and within each county thereof.
Sec. 368. RCW
84.12.370 and 1994 c 301 s 25 are each amended to read as follows:
When the department of ((revenue))taxation shall have determined the equalized assessed value of the operating property of each company in each of the respective counties and in the taxing districts thereof, as hereinabove provided, the department of ((revenue))taxation shall certify such equalized assessed value to the county assessor of the proper county. The county assessor shall enter the company's real operating property upon the real property tax rolls and the company's personal operating property upon the personal property tax rolls of the county, together with the values so apportioned, and the same shall be and constitute the assessed valuation of the operating property of the company in such county and the taxing districts therein for that year, upon which taxes shall be levied and collected in the same manner as on the general property of such county.
Sec. 369. RCW
84.12.390 and 1975 1st ex.s. c 278 s 172 are each amended to read as follows:
The department of ((revenue))taxation shall have the power to make such rules and regulations, not inconsistent herewith, as may be convenient and necessary to enforce and carry out the provisions of this chapter.
Sec. 370. RCW
84.14.020 and 2007 c 430 s 4 are each amended to read as follows:
(1)(a) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows:
(i) For properties for which applications for certificates of tax exemption eligibility are submitted under chapter
84.14 RCW before July 22, 2007, the value is exempt for ten successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate; and
(ii) For properties for which applications for certificates of tax exemption eligibility are submitted under chapter
84.14 RCW on or after July 22, 2007, the value is exempt:
(A) For eight successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate; or
(B) For twelve successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under chapter
84.14 RCW and meets the conditions in this subsection (1)(a)(ii)(B). For the property to qualify for the twelve-year exemption under this subsection, the applicant must commit to renting or selling at least twenty percent of the multifamily housing units as affordable housing units to low and moderate-income households, and the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the local government under this chapter. In the case of projects intended exclusively for owner occupancy, the minimum requirement of this subsection (1)(a)(ii)(B) may be satisfied solely through housing affordable to moderate-income households.
(b) The exemptions provided in (a)(i) and (ii) of this subsection do not include the value of land or nonhousing-related improvements not qualifying under this chapter.
(2) When a local government adopts guidelines pursuant to RCW
84.14.030(2) and includes conditions that must be satisfied with respect to individual dwelling units, rather than with respect to the multiple-unit housing as a whole or some minimum portion thereof, the exemption may, at the local government's discretion, be limited to the value of the qualifying improvements allocable to those dwelling units that meet the local guidelines.
(3) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter. The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.
(4) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of ((revenue))taxation, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.
(5) At the conclusion of the exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purposes of chapter
84.55 RCW.
Sec. 371. RCW
84.16.010 and 1975 1st ex.s. c 278 s 173 are each amended to read as follows:
For the purposes of this chapter and unless otherwise required by the context:
(1) The term "department" without other designation means the department of ((revenue))taxation of the state of Washington.
(2) The term "private car company" or "company" shall mean and include any person, copartnership, association, company or corporation owning, controlling, operating or managing stock cars, furniture cars, refrigerator cars, fruit cars, poultry cars, tank cars or any other kind of cars, used for transportation of property, by or upon railroad lines running in, into or through the state of Washington when such railroad lines are not owned or leased by such person, copartnership, association, company or corporation; or owning, controlling, operating or managing sleeping cars, parlor cars, buffet cars, tourist cars or any other kind of cars, used for transportation of persons by or upon railroads on lines running in, into or through the state of Washington, when such railroad lines are not owned or leased by such person, copartnership, association, company or corporation and upon which an extra charge in addition to the railroad transportation fare is made.
(3) The term "operating property" shall mean and include all rolling stock and car equipment owned by any private car company, or held by it as occupant, lessee or otherwise, including its franchises used and reasonably necessary in carrying on the business of such company; and in the case of rolling stock and car equipment used partly within and partly without the state, shall mean and include a proportion of such rolling stock and car equipment to be determined as in this chapter provided; and all such property shall, for the purposes of this chapter be deemed personal property.
Sec. 372. RCW
84.16.020 and 1975 1st ex.s. c 278 s 174 are each amended to read as follows:
Every private car company shall annually on or before the first day of May, make and file with the department of ((revenue))taxation in such form and upon such blanks as the department of ((revenue))taxation may provide and furnish, a statement, for the year ending December thirty-first next preceding, under the oath of the president, secretary, treasurer, superintendent or chief officer of such company, containing the following facts:
(1) The name of the company, the nature of the business conducted by the company, and under the laws of what state or country organized; the location of its principal office; the name and post office address of its president, secretary, auditor, treasurer, superintendent and general manager; the name and post office address of the chief officer or managing agent or attorney-in-fact in Washington.
(2) The total number of cars of every class used in transacting business on all lines of railroad, within the state and outside the state; together with the original cost and the fair average value per car of all cars of each of such classes.
(3) The total number of miles of railroad main track over which such cars were used within this state and within each county in this state.
(4) The total number of car miles made by all cars on each of the several lines of railroad in this state, and the total number of car miles made by all cars on all railroads within and without the state during the year.
(5) A statement in detail of the entire gross receipts and net earnings of the company during the year within the state and of the entire system, from all sources.
(6) Such other facts or information as the department of ((revenue))taxation may require in the form of return prescribed by it.
The department of ((revenue))taxation shall have power to prescribe directions, rules and regulations to be followed in making the report required herein.
Sec. 373. RCW
84.16.030 and 1975 1st ex.s. c 278 s 175 are each amended to read as follows:
The president or other officer of every railroad company whose lines run in, into or through this state, shall, on or before the first day of April in each year, furnish to the department of ((revenue))taxation a statement, verified by the affidavit of the officer making the same, showing as to every private car company respectively, the name of the company, the class of car and the total number of miles made by each class of cars, and the total number of miles made by all cars on its lines, branches, sidings, spurs or warehouse tracks, within this state during the year ending on the thirty-first day of December next preceding.
Sec. 374. RCW
84.16.032 and 2013 c 23 s 347 are each amended to read as follows:
The department of ((revenue))taxation shall have access to all books, papers, documents, statements, and accounts on file or of record in any of the departments of the state; and shall have the power, by summons signed by director and served in a like manner as a subpoena issued from courts of record, to compel witnesses to appear and give evidence and to produce books and papers. The director or any employee officially designated by the director is authorized to administer oaths to witnesses. The attendance of any witness may be compelled by attachment issued out of any superior court upon application to said court by the department, upon a proper showing that such witness has been duly served with a summons and has refused to appear before the said department. In case of the refusal of a witness to produce books, papers, documents, or accounts or to give evidence on matters material to the hearing, the department may institute proceedings in the proper superior court to compel such witness to testify, or to produce such books or papers and to punish him or her for the refusal. All summons and process issued by the department shall be served by the sheriff of the proper county and such service certified by him or her to the department of ((revenue))taxation without any compensation therefor. Persons appearing before the department in obedience to a summons, shall, in the discretion of the department, receive the same compensation as witnesses in the superior court. The records, books, accounts, and papers of each company shall be subject to visitation, investigation, or examination by the department, or any employee thereof officially designated by the director. All real and/or personal property of any company shall be subject to visitation, investigation, examination, and/or listing at any and all times by the department, or any person employed by the department.
Sec. 375. RCW
84.16.034 and 1975 1st ex.s. c 278 s 177 are each amended to read as follows:
The department of ((revenue))taxation in any matter material to the valuation, assessment or taxation of the property of any company, may cause the deposition of witnesses residing without the state or absent therefrom, to be taken upon notice to the company interested in like manner as the deposition of witnesses are taken in civil actions in the superior court.
Sec. 376. RCW
84.16.036 and 2007 c 111 s 202 are each amended to read as follows:
(1) If any company shall fail to comply with the provisions of RCW
84.16.020, the department shall add to the value of such company, as a penalty for such failure, five percent for every thirty days or fraction thereof, not to exceed ten percent, that the company fails to comply.
(2) If any company, or its officer or agent, shall refuse or neglect to make any report required by this chapter, or by the department of ((revenue))taxation, or shall refuse or neglect to permit an inspection and examination of its records, books, accounts, papers or property requested by the department of ((revenue))taxation, or shall refuse or neglect to appear before the department in obedience to a summons, the department shall inform itself the best it may of the matters to be known, in order to discharge its duties with respect to valuation and assessment of the property of such company; and the department shall add to the value so ascertained twenty-five percent as a penalty for the failure or refusal of such company to make its report and such company shall be estopped to question or impeach the assessment of the department of ((revenue))taxation in any hearing or proceeding thereafter. Such penalty shall be in lieu of the penalty provided for in subsection (1) of this section.
(3) The department shall waive or cancel the penalty imposed under subsection (1) of this section for good cause shown.
(4) The department shall waive or cancel the penalty imposed under subsection (1) of this section when the circumstances under which the failure to materially comply with the provisions of RCW
84.16.020 do not qualify for waiver or cancellation under subsection (3) of this section if:
(a) The company fully complies with the reporting provisions of RCW
84.16.020 within thirty days of the due date; and
(b) The company has timely complied with the provisions of RCW
84.16.020 for the previous two calendar years. The requirement that a company has timely complied with the provisions of RCW
84.16.020 for the previous two calendar years is waived for any calendar year in which the company was not required to comply with the provisions of RCW
84.16.020.
Sec. 377. RCW
84.16.040 and 2017 c 323 s 531 are each amended to read as follows:
The department of ((revenue))taxation must annually make an assessment of the operating property of each private car company. Between the first day of May and the first day of July of each year the department must prepare an initial assessment roll upon which the department must enter and assess the true and fair value of all the operating property of each of such companies as of the first day of January of the year in which the assessment is made. The department must finalize the assessment roll by the twentieth day of August of each year. For the purpose of determining the true and fair value of such property the department of ((revenue))taxation may take into consideration any information or knowledge obtained by the department from an examination and inspection of such property, or of the books, records, and accounts of such companies, the statements filed as required by this chapter, the reports, statements, or returns of such companies filed in the office of any board, office, or commission of this state or any county thereof, the earnings and earning power of such companies, the franchises owned or used by such companies, the true and fair valuation of any and all property of such companies, whether operating property or nonoperating property, and whether situated within or without the state, and any other facts, evidences, or information that may be obtainable bearing upon the value of the operating property. However, in no event may any statement or report required from any company by this chapter be conclusive upon the department of ((revenue))taxation in determining the amount, character, and true and fair value of the operating property of such company.
Sec. 378. RCW
84.16.050 and 2001 c 187 s 10 are each amended to read as follows:
The department of ((revenue))taxation may, in determining the true and fair value of the operating property to be placed on the assessment roll value the entire property as a unit. If the company owns, leases, operates or uses property partly within and partly without the state, the department of ((revenue))taxation may determine the value of the operating property within this state by the proportion that the value of such property bears to the value of the entire operating property of the company, both within and without this state. In determining the operating property which is located within this state the department of ((revenue))taxation may consider and base such determination on the proportion which the number of car miles of the various classes of cars made in this state bears to the total number of car miles made by the same cars within and without this state, or to the total number of car miles made by all cars of the various classes within and without this state. If the value of the operating property of the company cannot be fairly determined in such manner the department of ((revenue))taxation may use any other reasonable and fair method to determine the value of the operating property of the company within this state.
Sec. 379. RCW
84.16.090 and 2017 c 323 s 532 are each amended to read as follows:
Upon the assessment roll must be placed after the name of each company a general description of the operating property of the company, which is considered sufficient if described in the language of RCW
84.16.010(3) or otherwise, following which must be entered the true and fair value of the operating property as determined by the department of ((
revenue))
taxation. No assessment is invalid by a mistake in the name of the company assessed, by omission of the name of the owner or by the entry of a name other than that of the true owner. When the department of ((
revenue))
taxation has prepared the initial assessment roll and entered thereon the true and fair value of the operating property of the company, as required, the department must notify the company by mail of the valuation determined by it and entered upon the roll; and thereupon such valuation must become the true and fair value of the operating property of the company, subject to revision or correction by the department of ((
revenue))
taxation as hereinafter provided; and must be the valuation upon which, after equalization by the department of ((
revenue))
taxation as hereinafter provided, the taxes of such company are based and computed.
Sec. 380. RCW
84.16.100 and 1994 c 124 s 15 are each amended to read as follows:
Every company assessed under the provisions of this chapter shall be entitled on its own motion to a hearing and to present evidence before the department of ((revenue))taxation, within the ten working days following the hearing request period, relating to the value of the operating property of such company and to the value of the other taxable property in the counties in which the operating property of such company is situate. Upon request in writing for such hearing, which must be presented to the department of ((revenue))taxation within the first ten working days of July following the making of the assessment, the department shall appoint a time and place therefor, within the respective periods aforesaid, the hearing to be conducted in such manner as the department shall direct. Hearings provided for in this section may be held at such times and in such places throughout the state as the department may deem proper or necessary and may be adjourned from time to time and from place to place.
Sec. 381. RCW
84.16.110 and 2001 c 187 s 12 are each amended to read as follows:
Upon determination by the department of ((revenue))taxation of the true and fair value of the property appearing on such rolls the department shall apportion such value to the respective counties entitled thereto as hereinafter provided, and shall determine the equalized or assessed valuation of such property in such counties by applying to such actual apportioned value the same ratio as the ratio of assessed to actual value of the general property of the respective counties: PROVIDED, That, whenever the amount of the true and fair value of the operating property of any company otherwise apportionable to any county shall be less than two hundred fifty dollars, such amount need not be apportioned to such county but may be added to the amount apportioned to an adjacent county.
Sec. 382. RCW
84.16.120 and 2001 c 187 s 13 are each amended to read as follows:
The true and fair value of the property of each company as fixed and determined by the department of ((revenue))taxation as herein provided shall be apportioned to the respective counties in the following manner:
(1) If all the operating property of the company is situated entirely within a county and none of such property is located within, extends into, or through or is operated into or through any other county, the entire value thereof shall be apportioned to the county within which such property is situated, located, and operated.
(2) If the operating property of any company is situated or located within, extends into or is operated into or through more than one county, the value thereof shall be apportioned to the respective counties into or through which its cars are operated in the proportion that the length of main line track of the respective railroads moving such cars in such counties bears to the total length of main line track of such respective railroads in this state.
(3) If the property of any company is of such character that it will not be reasonable, feasible or fair to apportion the value as hereinabove provided, the value thereof shall be apportioned between the respective counties into or through which such property extends or is operated or in which the same is located in such manner as may be reasonable, feasible and fair.
Sec. 383. RCW
84.16.130 and 1994 c 301 s 31 are each amended to read as follows:
When the department of ((
revenue))
taxation shall have determined the equalized or assessed value of the operating property of each company in the respective counties as hereinabove provided, the department of ((
revenue))
taxation shall certify such equalized or assessed value to the county assessor of the proper county; and the county assessor shall apportion and distribute such assessed or equalized valuation to and between the several taxing districts of the county entitled to a proportionate value thereof in the manner prescribed in RCW
84.16.120 for apportionment of values between counties. The county assessor shall enter such assessment upon the personal property tax rolls of the county, together with the values so apportioned, and the same shall be and constitute the assessed valuation of the operating company in such county for that year, upon which taxes shall be levied and collected the same as on general property of the county.
Sec. 384. RCW
84.25.040 and 2015 1st sp.s. c 9 s 4 are each amended to read as follows:
(1)(a) The value of new construction of industrial/manufacturing facilities qualifying under this chapter is exempt from property taxation under this title, as provided in this section. The value of new construction of industrial/manufacturing facilities is exempt from taxation for properties for which an application for a certificate of tax exemption is submitted under this chapter before December 31, 2022. The value is exempt under this section for ten successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate.
(b) The exemption provided in this section does not include the value of land or nonindustrial/manufacturing-related improvements not qualifying under this chapter.
(2) The exemption provided in this section is in addition to any other exemptions, deferrals, credits, grants, or other tax incentives provided by law.
(3) This chapter does not apply to state levies or increases in assessed valuation made by the assessor on nonqualifying portions of buildings and value of land nor to increases made by lawful order of a county board of equalization, the department of ((revenue))taxation, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.
(4) This exemption does not apply to any county property taxes unless the governing body of the county adopts a resolution and notifies the governing authority of its intent to allow the property to be exempted from county property taxes.
(5) At the conclusion of the exemption period, the new industrial/manufacturing facilities cost must be considered as new construction for the purposes of chapter
84.55 RCW.
Sec. 385. RCW
84.26.040 and 1986 c 221 s 3 are each amended to read as follows:
An owner of property desiring special valuation under this chapter shall apply to the assessor of the county in which the property is located upon forms prescribed by the department of ((revenue))taxation and supplied by the county assessor. The application form shall include a statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for special valuation. Applications shall be made no later than October 1 of the calendar year preceding the first assessment year for which classification is requested. The assessor may charge only such fees as are necessary to process and record documents pursuant to this chapter.
Sec. 386. RCW
84.26.080 and 2000 c 103 s 22 are each amended to read as follows:
(1) When property has once been classified and valued as eligible historic property, it shall remain so classified and be granted the special valuation provided by RCW
84.26.070 for ten years or until the property is disqualified by:
(a) Notice by the owner to the assessor to remove the special valuation;
(b) Sale or transfer to an ownership making it exempt from property taxation; or
(c) Removal of the special valuation by the assessor upon determination by the local review board that the property no longer qualifies as historic property or that the owner has failed to comply with the conditions established under RCW
84.26.050.
(2) The sale or transfer to a new owner or transfer by reason of death of a former owner to a new owner does not disqualify the property from the special valuation provided by RCW
84.26.070 if:
(a) The property continues to qualify as historic property; and
(b) The new owner files a notice of compliance with the assessor of the county in which the property is located. Notice of compliance forms shall be prescribed by the state department of ((
revenue))
taxation and supplied by the county assessor. The notice shall contain a statement that the new owner is aware of the special valuation and of the potential tax liability involved when the property ceases to be valued as historic property under this chapter. The signed notice of compliance shall be attached to the real estate excise tax affidavit provided for in RCW
82.45.150. If the notice of compliance is not signed by the new owner and attached to the real estate excise tax affidavit, all additional taxes calculated pursuant to RCW
84.26.090 shall become due and payable by the seller or transferor at time of sale. The county auditor shall not accept an instrument of conveyance of specially valued historic property for filing or recording unless the new owner has signed the notice of compliance or the additional tax has been paid, as evidenced by the real estate excise tax stamp affixed thereto by the treasurer.
(3) When the property ceases to qualify for the special valuation the owner shall immediately notify the state or local review board.
(4) Before the additional tax or penalty imposed by RCW
84.26.090 is levied, in the case of disqualification, the assessor shall notify the taxpayer by mail, return receipt requested, of the disqualification.
Sec. 387. RCW
84.33.051 and 2004 c 177 s 2 are each amended to read as follows:
(1) The legislative body of any county may impose a tax upon every person engaging in the county in business as a harvester effective October 1, 1984. The tax shall be equal to the stumpage value of timber harvested from privately owned land multiplied by a rate of 4 percent; and equal to the stumpage value of timber harvested from publicly owned land multiplied by the following rates:
(a) For timber harvested January 1, 2005, through December 31, 2005, 1.2 percent;
(b) For timber harvested January 1, 2006, through December 31, 2006, 1.5 percent;
(c) For timber harvested January 1, 2007, through December 31, 2007, 1.8 percent;
(d) For timber harvested January 1, 2008, through December 31, 2008, 2.1 percent;
(e) For timber harvested January 1, 2009, through December 31, 2009, 2.4 percent;
(f) For timber harvested January 1, 2010, through December 31, 2010, 2.7 percent;
(g) For timber harvested January 1, 2011, through December 31, 2011, 3.1 percent;
(h) For timber harvested January 1, 2012, through December 31, 2012, 3.4 percent;
(i) For timber harvested January 1, 2013, through December 31, 2013, 3.7 percent;
(j) For timber harvested January 1, 2014, and thereafter, 4.0 percent.
(2) Before the effective date of any ordinance imposing a tax under this section, the county shall contract with the department of ((
revenue))
taxation for administration and collection of the tax. The tax collected by the department of ((
revenue))
taxation under this section shall be deposited by the department in the timber tax distribution account. Moneys in the account may be spent only for distributions to counties under RCW
84.33.081 and, after appropriation by the legislature, for the activities undertaken by the department of ((
revenue))
taxation relating to the collection and administration of the taxes imposed under this section and RCW
84.33.041. Appropriations are not required for distributions to counties under RCW
84.33.081.
Sec. 388. RCW
84.33.074 and 1984 c 204 s 19 are each amended to read as follows:
(1) A small harvester may elect to calculate the tax imposed by this chapter in the manner provided in this section.
(2) Timber shall be considered harvested at the time when in the ordinary course of business the quantity thereof by species is first definitely determined. The amount harvested shall be determined by the Scribner Decimal C Scale or other prevalent measuring practice adjusted to arrive at substantially equivalent measurements, as approved by the department of ((revenue))taxation.
(3) Timber values shall be determined by either of the following methods, whichever is most appropriate to the circumstances of the harvest:
(a) When standing timber is sold on the stump, the taxable value is the actual gross receipts received by the landowner from the sale of the standing timber.
(b) When timber is sold after it has been harvested, the taxable value is the actual gross receipts from sale of the harvested timber minus the costs of harvesting and marketing the timber. When the taxpayer is unable to provide documented proof of harvesting and marketing costs, this deduction for harvesting and marketing costs shall be a percentage of the gross receipts from sale of the harvested timber as determined by the department of ((revenue))taxation but in no case less than twenty-five percent.
(4) The department of ((revenue))taxation shall prescribe a short filing form which shall be as simple as possible.
Sec. 389. RCW
84.33.075 and 1984 c 204 s 20 are each amended to read as follows:
The excise tax imposed by this chapter shall not apply to any timber harvested by a nonprofit organization, association, or corporation from forestlands owned by it, where such lands are exempt from property taxes under RCW
84.36.030, and where all of the income and receipts of the nonprofit organization, association, or corporation derived from such timber sales are used solely for the expense of promoting, operating, and maintaining youth programs which are equally available to all, regardless of race, color, national origin, ancestry, or religious belief.
In order to determine whether the harvesting of timber by a nonprofit organization, association, or corporation is exempt, the director of the department of ((revenue))taxation shall have access to its books.
For the purposes of this section, a "nonprofit" organization, association, or corporation is one: (1) Which pays no part of its income directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the organization, association, or corporation in accordance with its purposes and bylaws; and (2) which pays salary or compensation to its officers only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the public services of the state.
Sec. 390. RCW
84.33.0775 and 2010 c 210 s 35 are each amended to read as follows:
(1) A taxpayer is allowed a credit against the tax imposed under RCW
84.33.041 for timber harvested on and after January 1, 2000, under a forest practices notification filed or application approved under RCW
76.09.050 and subject to enhanced aquatic resources requirements.
(2)(a) For a person other than a small harvester who elects to calculate tax under RCW
84.33.074, the credit is equal to the stumpage value of timber harvested for sale or for commercial or industrial use multiplied by eight-tenths of one percent.
(b) For a small harvester who elects to calculate tax under RCW
84.33.074, the credit is equal to sixteen percent of the tax imposed under this chapter.
(c) The amount of credit claimed by a taxpayer under this section shall be reduced by the amount of any compensation received from the federal government for reduced timber harvest due to enhanced aquatic resource requirements. If the amount of compensation from the federal government exceeds the amount of credit available to a taxpayer in any reporting period, the excess shall be carried forward and applied against credits in future reporting periods. This subsection does not apply to small harvesters as defined in RCW
84.33.073.
(d) Refunds may not be given in place of credits. Credit may not be claimed in excess of tax owed. The department of ((
revenue))
taxation shall disallow any credits, used or unused, upon written notification from the department of natural resources of a final decision that timber for which credit was claimed was not harvested under a forest practices notification filed or application approved under RCW
76.09.050 and subject to enhanced aquatic resources requirements.
(3) As used in this section, a forest practices notification or application is subject to enhanced aquatic resource requirements if it includes, in whole or in part, riparian area, wetland, or steep or unstable slope from which the operator is limited, by rule adopted under RCW
76.09.055,
34.05.090,
43.21C.250, and
76.09.370, or any federally approved habitat conservation plan or department of natural resources approved watershed analysis, from harvesting timber, or if a road is included within or adjacent to the area covered by such notification or application and the road is covered by a road maintenance plan approved by the department of natural resources under rules adopted under chapter
76.09 RCW, the forest practices act, or a federally approved habitat conservation plan.
(4) For forest practices notification or applications submitted after January 1, 2000, the department of natural resources shall indicate whether the notification or application is subject to enhanced aquatic resource requirements and, unless notified of a contrary determination by the pollution control hearings board, the department of ((
revenue))
taxation shall use such indication in determining the credit to be allowed against the tax assessed under RCW
84.33.041. The department of natural resources shall develop revisions to the form of the forest practices notifications and applications to provide a space for the applicant to indicate and the department of natural resources to confirm or not confirm, whether the notification or application is subject to enhanced aquatic resource requirements. For forest practices notifications or applications submitted before January 1, 2000, the applicant may submit the approved notification or application to the department of natural resources for confirmation that the notification or application is subject to enhanced aquatic resource requirements. Upon any such submission, the department of natural resources will within thirty days confirm or deny that the notification or application is subject to enhanced aquatic resource requirements and will forward separate evidence of each confirmation to the department of ((
revenue))
taxation. Unless notified of a contrary ruling by the pollution control hearings board, the department of ((
revenue))
taxation shall use the separate confirmations in determining the credit to be allowed against the tax assessed under RCW
84.33.041.
(5) A refusal by the department of natural resources to confirm that a notification or application is subject to enhanced aquatic resources requirements may be appealed to the pollution control hearings board.
(6) A person receiving approval of credit must keep records necessary for the department of ((revenue))taxation to verify eligibility under this section.
Sec. 391. RCW
84.33.086 and 1987 c 166 s 1 are each amended to read as follows:
(1) The taxes imposed under this chapter shall be computed with respect to timber harvested each calendar quarter and shall be due and payable in quarterly installments. Remittance shall be made on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrues. The taxpayer on or before such date shall make out a return, upon such forms and setting forth such information as the department of ((revenue))taxation may require, showing the amount of tax for which the taxpayer is liable for the preceding quarterly period and shall sign and transmit the same to the department of ((revenue))taxation, together with a remittance for the amount of tax.
(2) The taxes imposed by this chapter are in addition to any taxes imposed upon the same persons under chapter
82.04 RCW.
(3) Any harvester incurring less than fifty dollars tax liability under this section in any calendar quarter is excused from the payment of such tax, but may be required by the department of ((revenue))taxation to file a return even though no tax may be due.
Sec. 392. RCW
84.33.091 and 1998 c 311 s 13 are each amended to read as follows:
(1) The department of ((revenue))taxation shall designate areas containing timber having similar growing, harvesting, and marketing conditions to be used as units for the preparation and application of stumpage values. Each year on or before December 31 for use the following January through June 30, and on or before June 30 for use the following July through December 31, the department shall prepare tables of stumpage values of each species or subclassification of timber within these units. The stumpage value shall be the amount that each such species or subclassification would sell for at a voluntary sale made in the ordinary course of business for purposes of immediate harvest. These stumpage values, expressed in terms of a dollar amount per thousand board feet or other unit measure, shall be determined in a manner which makes reasonable and adequate allowances for age, size, quality, costs of removal, accessibility to point of conversion, market conditions, and all other relevant factors from:
(a) Gross proceeds from sales on the stump of similar timber of like quality and character at similar locations, and in similar quantities;
(b) Gross proceeds from sales of logs adjusted to reflect only the portion of such proceeds attributable to value on the stump immediately prior to harvest; or
(c) A combination of (a) and (b) of this subsection.
(2) Upon application from any person who plans to harvest damaged timber, the stumpage values for which have been materially reduced from the values shown in the applicable tables due to damage resulting from fire, blow down, ice storm, flood, or other sudden unforeseen cause, the department shall revise the stumpage value tables for any area in which such timber is located and shall specify any additional accounting or other requirements to be complied with in reporting and paying the tax.
(3) The preliminary area designations and stumpage value tables and any revisions thereof are subject to review by the ways and means committees of the house of representatives and senate prior to finalization. Tables of stumpage values shall be signed by the director or the director's designee. A copy thereof shall be mailed to anyone who has submitted to the department a written request for a copy.
(4) On or before the sixtieth day after the date of final adoption of any stumpage value tables, any harvester may appeal to the board of tax appeals for a revision of stumpage values for an area determined pursuant to subsection (3) of this section.
Sec. 393. RCW
84.33.200 and 2001 c 320 s 17 are each amended to read as follows:
(1) The legislature shall review the system of distribution and allocation of all timber excise tax revenues in January 1975 and each year thereafter to provide a uniform and equitable distribution and allocation of such revenues to the state and local taxing districts.
(2) In order to allow legislative review of the rules to be adopted by the department of ((
revenue))
taxation establishing the stumpage values provided for in RCW
84.33.091, such rules shall be effective not less than thirty days after transmitting to the staffs of the senate and house ways and means committees (or their successor committees) the same proposed rules as have been previously filed with the office of the code reviser pursuant to RCW
34.05.320.
(3) The department of ((revenue))taxation and the department of natural resources shall make available to the revenue committees of the senate and house of representatives of the state legislature information and data, as it may be available, pertaining to the status of forestland grading throughout the state, the collection of timber excise tax revenues, the distribution and allocation of timber excise tax revenues to the state and local taxing districts, and any other information as may be necessary for the proper legislative review and implementation of the timber excise tax system, and in addition, the departments shall provide an annual report of such matters in January of each year to such committees.
Sec. 394. RCW
84.34.030 and 2014 c 137 s 6 are each amended to read as follows:
(1) An owner of land desiring current use classification under RCW
84.34.020 must make application as follows:
(a) Application for classification under RCW
84.34.020(2) must be made to the county assessor upon forms prepared by the state department of ((
revenue))
taxation and supplied by the county assessor.
(b) Application for classification under:
(ii) RCW
84.34.020(3), unless the timberland classification and designated forestland program are merged under RCW
84.34.400 must be made, for (b)(i) or (ii) of this subsection, to the county legislative authority upon forms prepared by the state department of ((
revenue))
taxation and supplied by the county assessor.
(2) The application must be accompanied by a reasonable processing fee if a processing fee is established by the city or county legislative authority. The application may require only such information reasonably necessary to properly classify an area of land under this chapter with a notarized verification of the truth thereof and must include a statement that the applicant is aware of the potential tax liability involved when the land ceases to be classified as open space, farm and agricultural or timberland. Applications must be made during the calendar year preceding that in which classification is to begin.
(3) The assessor must make necessary information, including copies of this chapter and applicable regulations, readily available to interested parties, and must render reasonable assistance to such parties upon request.
Sec. 395. RCW
84.34.041 and 2014 c 137 s 7 are each amended to read as follows:
(1) An application for current use classification or reclassification under RCW
84.34.020(3) must be made to the county legislative authority.
The application must be made upon forms prepared by the department of ((revenue))taxation and supplied by the granting authority and must include the following elements that constitute a timber management plan:
(a) A legal description of, or assessor's parcel numbers for, all land the applicant desires to be classified as timberland;
(b) The date or dates of acquisition of the land;
(c) A brief description of the timber on the land, or if the timber has been harvested, the owner's plan for restocking;
(d) Whether there is a forest management plan for the land;
(e) If so, the nature and extent of implementation of the plan;
(f) Whether the land is used for grazing;
(g) Whether the land has been subdivided or a plat filed with respect to the land;
(h) Whether the land and the applicant are in compliance with the restocking, forest management, fire protection, insect and disease control, weed control, and forest debris provisions of Title
76 RCW or applicable rules under Title
76 RCW;
(i) Whether the land is subject to forest fire protection assessments pursuant to RCW
76.04.610;
(j) Whether the land is subject to a lease, option, or other right that permits it to be used for a purpose other than growing and harvesting timber;
(k) A summary of the past experience and activity of the applicant in growing and harvesting timber;
(l) A summary of current and continuing activity of the applicant in growing and harvesting timber;
(m) A statement that the applicant is aware of the potential tax liability involved when the land ceases to be classified as timberland.
(2) An application made for classification of land under RCW
84.34.020(3) must be acted upon after a public hearing and after notice of the hearing is given by one publication in a newspaper of general circulation in the area at least ten days before the hearing. Application for classification of land in an incorporated area must be acted upon by: (a) A granting authority composed of three members of the county legislative body and three members of the city legislative body in which the land is located in a meeting where members may be physically absent but participating through telephonic connection; or (b) separate affirmative acts by both the county and city legislative bodies where both bodies affirm the entirety of an application without modification or both bodies affirm an application with identical modifications.
(3) The granting authority must act upon the application with due regard to all relevant evidence and without any one or more items of evidence necessarily being determinative, except that the application may be denied for one of the following reasons, without regard to other items:
(a) The land does not contain a stand of timber as defined in chapter
76.09 RCW and applicable rules, except this reason alone is not sufficient to deny the application (i) if the land has been recently harvested or supports a growth of brush or noncommercial type timber, and the application includes a plan for restocking within three years or the longer period necessitated by unavailability of seed or seedlings, or (ii) if only isolated areas within the land do not meet minimum standards due to rock outcroppings, swamps, unproductive soil, or other natural conditions;
(b) The applicant, with respect to the land, has failed to comply with a final administrative or judicial order with respect to a violation of the restocking, forest management, fire protection, insect and disease control, weed control, and forest debris provisions of Title
76 RCW or applicable rules under Title
76 RCW;
(c) The land abuts a body of salt water and lies between the line of ordinary high tide and a line paralleling the ordinary high tide line and two hundred feet horizontally landward from the high tide line.
(4)(a) The timber management plan must be filed with the county legislative authority either: (i) When an application for classification under this chapter is submitted; (ii) when a sale or transfer of timberland occurs and a notice of continuance is signed; or (iii) within sixty days of the date the application for reclassification under this chapter or from designated forestland is received. The application for reclassification must be accepted, but may not be processed until the timber management plan is received. If the timber management plan is not received within sixty days of the date the application for reclassification is received, the application for reclassification must be denied.
(b) If circumstances require it, the county assessor may allow in writing an extension of time for submitting a timber management plan when an application for classification or reclassification or notice of continuance is filed. When the assessor approves an extension of time for filing the timber management plan, the county legislative authority may delay processing an application until the timber management plan is received. If the timber management plan is not received by the date set by the assessor, the application or the notice of continuance must be denied.
(c) The granting authority may approve the application with respect to only part of the land that is described in the application, and if any part of the application is denied, the applicant may withdraw the entire application. The granting authority, in approving in part or whole an application for land classified pursuant to RCW
84.34.020(3), may also require that certain conditions be met.
(d) Granting or denial of an application for current use classification is a legislative determination and is reviewable only for arbitrary and capricious actions. The granting authority may not require the granting of easements for land classified pursuant to RCW
84.34.020(3).
(e) The granting authority must approve or disapprove an application made under this section within six months following the date the application is received.
(5) No application may be approved under this section, and land may not otherwise be classified or reclassified under RCW
84.34.020(3), if the timberland classification and designated forestland program are merged under RCW
84.34.400.
Sec. 396. RCW
84.34.065 and 2014 c 97 s 310 are each amended to read as follows:
(1) The true and fair value of farm and agricultural land shall be determined by consideration of the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years, capitalized at indicative rates. The earning or productive capacity of farm and agricultural lands is the "net cash rental," capitalized at a "rate of interest" charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes. The current use value of land under RCW
84.34.020(2)(f) must be established as: The prior year's average value of open space farm and agricultural land used in the county plus the value of land improvements such as septic, water, and power used to serve the residence. This may not be interpreted to require the assessor to list improvements to the land with the value of the land.
(2) For the purposes of the above computation:
(a)(i) The term "net cash rental" means the average rental paid on an annual basis, in cash, for the land being appraised and other farm and agricultural land of similar quality and similarly situated that is available for lease for a period of at least three years to any reliable person without unreasonable restrictions on its use for production of agricultural crops. There is allowed as a deduction from the rental received or computed any costs of crop production charged against the landlord if the costs are such as are customarily paid by a landlord. If "net cash rental" data is not available, the earning or productive capacity of farm and agricultural lands is determined by the cash value of typical or usual crops grown on land of similar quality and similarly situated averaged over not less than five years. Standard costs of production are allowed as a deduction from the cash value of the crops.
(ii) The current "net cash rental" or "earning capacity" is determined by the assessor with the advice of the advisory committee as provided in RCW
84.34.145, and through a continuing internal study, assisted by studies of the department of ((
revenue))
taxation. This net cash rental figure as it applies to any farm and agricultural land may be challenged before the same boards or authorities as would be the case with regard to assessed values on general property.
(b)(i) The term "rate of interest" means the rate of interest charged by the farm credit administration and other large financial institutions regularly making loans secured by farm and agricultural lands through mortgages or similar legal instruments, averaged over the immediate past five years.
(ii) The "rate of interest" must be determined annually by a rule adopted by the department of ((revenue))taxation and such rule must be published in the state register not later than January 1 of each year for use in that assessment year. The department of ((revenue))taxation determination may be appealed to the state board of tax appeals within thirty days after the date of publication by any owner of farm or agricultural land or the assessor of any county containing farm and agricultural land.
(c) The "component for property taxes" is a figure obtained by dividing the assessed value of all property in the county into the property taxes levied within the county in the year preceding the assessment and multiplying the quotient obtained by one hundred.
Sec. 397. RCW
84.34.141 and 1998 c 311 s 16 are each amended to read as follows:
The department of ((revenue))taxation of the state of Washington shall make such rules and regulations consistent with this chapter as shall be necessary or desirable to permit its effective administration.
Sec. 398. RCW
84.34.145 and 1998 c 311 s 17 are each amended to read as follows:
The county legislative authority shall appoint a five member committee representing the active farming community within the county to serve in an advisory capacity to the assessor in implementing assessment guidelines as established by the department of ((revenue))taxation for the assessment of open space, farms and agricultural lands, and timberlands classified under this chapter.
Sec. 399. RCW
84.34.160 and 1992 c 69 s 16 are each amended to read as follows:
The department of ((revenue))taxation and each granting authority is hereby directed to publicize the qualifications and manner of making applications for classification. Notice of the qualifications, method of making applications, and availability of further information on current use classification shall be included with every notice of change in valuation.
Sec. 400. RCW
84.34.310 and 2013 c 177 s 2 are each reenacted and amended to read as follows:
As used in RCW
84.34.300 through
84.34.380, unless a different meaning is required, the words defined in this section shall have the meanings indicated.
(1) The term "average rate of inflation" shall mean the annual rate of inflation as determined by the department of ((
revenue))
taxation averaged over the period of time as provided in RCW
84.34.330 (1) and (2). Such determination shall be published not later than January 1 of each year for use in that assessment year.
(2) "Farm and agricultural land" shall mean the same as defined in RCW
84.34.020(2).
(3) "Local government" shall mean any city, town, county, water-sewer district, public utility district, port district, flood control district, or any other municipal corporation, quasi-municipal corporation, or other political subdivision authorized to levy special benefit assessments for sanitary and/or storm sewerage systems, domestic water supply and/or distribution systems, or road construction or improvement purposes. "Local government" does not include an irrigation district with respect to any local improvement district created or local improvement assessment levied by that irrigation district.
(4) "Local improvement district" shall mean any local improvement district, utility local improvement district, local utility district, road improvement district, or any similar unit created by a local government for the purpose of levying special benefit assessments against property specially benefited by improvements relating to such districts.
(5) "Owner" shall mean the same as defined in RCW
84.34.020(5) or the applicable statutes relating to special benefit assessments.
(6) "Special benefit assessments" shall mean special assessments levied or capable of being levied in any local improvement district or otherwise levied or capable of being levied by a local government to pay for all or part of the costs of a local improvement and which may be levied only for the special benefits to be realized by property by reason of that local improvement.
(7) "Timberland" shall mean the same as defined in RCW
84.34.020(3).
Sec. 401. RCW
84.34.360 and 1992 c 69 s 18 and 1992 c 52 s 19 are each reenacted and amended to read as follows:
The department of ((
revenue))
taxation shall adopt rules it shall deem necessary to implement RCW
84.34.300 through
84.34.380 which shall include, but not be limited to, procedures to determine the extent to which a portion of the land otherwise exempt may be subject to a special benefit assessment for the actual connection to the domestic water system or sewerage facilities, and further to determine the extent to which all or a portion of such land may be subject to a special benefit assessment for access to the road improvement in relation to its value as farm and agricultural land or timberland as distinguished from its value under more intensive uses. The provision for limited special benefit assessments shall not relieve such land from liability for the amounts provided in RCW
84.34.330 and
84.34.340 when such land is withdrawn or removed from its current use classification as farm and agricultural land or timberland.
Sec. 402. RCW
84.36.037 and 2014 c 99 s 8 are each amended to read as follows:
(1) Real or personal property owned by a nonprofit organization, association, or corporation in connection with the operation of a public assembly hall or meeting place is exempt from taxation. The area exempt under this section includes the building or buildings, the land under the buildings, and an additional area necessary for parking, not exceeding a total of one acre. When property for which exemption is sought is essentially unimproved except for restroom facilities and structures and this property has been used primarily for annual community celebration events for at least ten years, the exempt property shall not exceed twenty-nine acres.
(2) To qualify for this exemption the property must be used exclusively for public gatherings and be available to all organizations or persons desiring to use the property, but the owner may impose conditions and restrictions which are necessary for the safekeeping of the property and promote the purposes of this exemption. Membership shall not be a prerequisite for the use of the property.
(3) The use of the property for pecuniary gain or for business activities, except as provided in this section and RCW
84.36.805, nullifies the exemption otherwise available for the property for the assessment year. If all income received from rental or use of the exempt property is used for capital improvements to the exempt property, maintenance and operation of the exempt property, or exempt purposes, the exemption is not nullified as provided by RCW
84.36.805 or by the use of the property, in a county with a population of less than twenty thousand, to promote the following business activities, if the rental income or donations, if any, are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented: Dance lessons, art classes, or music lessons.
(4) The department of ((revenue))taxation must narrowly construe this exemption.
Sec. 403. RCW
84.36.041 and 2015 c 86 s 312 are each amended to read as follows:
(1) All real and personal property used by a nonprofit home for the aging that is reasonably necessary for the purposes of the home is exempt from taxation if the benefit of the exemption inures to the home and:
(a) At least fifty percent of the occupied dwelling units in the home are occupied by eligible residents; or
(b) The home is subsidized under a federal department of housing and urban development program. The department of ((revenue))taxation must provide by rule a definition of homes eligible for exemption under this subsection (1)(b), consistent with the purposes of this section.
(2) All real and personal property used by a nonprofit home for the aging that is reasonably necessary for the purposes of the home is exempt from taxation if the benefit of the exemption inures to the home and the construction, rehabilitation, acquisition, or refinancing of the home is financed under a program using bonds exempt from federal income tax if at least seventy-five percent of the total amount financed uses the tax exempt bonds and the financing program requires the home to reserve a percentage of all dwelling units so financed for low-income residents. The initial term of the exemption under this subsection must equal the term of the tax exempt bond used in connection with the financing program, or the term of the requirement to reserve dwelling units for low-income residents, whichever is shorter. If the financing program involves less than the entire home, only those dwelling units included in the financing program are eligible for total exemption. The department of ((revenue))taxation must provide by rule the requirements for monitoring compliance with the provisions of this subsection and the requirements for exemption including:
(a) The number or percentage of dwelling units required to be occupied by low-income residents, and a definition of low income;
(b) The type and character of the dwelling units, whether independent units or otherwise; and
(c) Any particular requirements for continuing care retirement communities.
(3) A home for the aging is eligible for a partial exemption on the real property and a total exemption for the home's personal property if the home does not meet the requirements of subsection (1) of this section because fewer than fifty percent of the occupied dwelling units are occupied by eligible residents, as follows:
(a) A partial exemption must be allowed for each dwelling unit in a home occupied by a resident requiring assistance with activities of daily living.
(b) A partial exemption must be allowed for each dwelling unit in a home occupied by an eligible resident.
(c) A partial exemption must be allowed for an area jointly used by a home for the aging and by a nonprofit organization, association, or corporation currently exempt from property taxation under one of the other provisions of this chapter. The shared area must be reasonably necessary for the purposes of the nonprofit organization, association, or corporation exempt from property taxation under one of the other provisions of this chapter, such as kitchen, dining, and laundry areas.
(d) The amount of exemption must be calculated by multiplying the assessed value of the property reasonably necessary for the purposes of the home, less the assessed value of any area exempt under (c) of this subsection, by a fraction. The numerator of the fraction is the number of dwelling units occupied by eligible residents and by residents requiring assistance with activities of daily living. The denominator of the fraction is the total number of occupied dwelling units as of December 31st of the first assessment year the home becomes operational for which exemption is claimed and January 1st of each subsequent assessment year for which exemption is claimed.
(4) To be exempt under this section, the property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW
84.36.805.
(5) A home for the aging is exempt from taxation only if the organization operating the home is exempt from income tax under section 501(c) of the federal internal revenue code as existing on January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purposes of this section.
(6) In order for the home to be eligible for exemption under subsections (1)(a) and (3)(b) of this section, each eligible resident of a home for the aging must submit an income verification form to the county assessor by July 1st of the assessment year for which exemption is claimed. However, during the first year a home becomes operational, the county assessor must accept income verification forms from eligible residents up to December 31st of the assessment year. The income verification form must be prescribed and furnished by the department of ((revenue))taxation. An eligible resident who has filed a form for a previous year need not file a new form until there is a change in status affecting the person's eligibility.
(7) In determining the true and fair value of a home for the aging for purposes of the partial exemption provided by subsection (3) of this section, the assessor must apply the computation method provided by RCW
84.34.060 and may consider only the use to which such property is applied during the years for which such partial exemptions are available and may not consider potential uses of such property.
(8) As used in this section:
(a) "Eligible resident" means a person who:
(i) Occupied the dwelling unit as a principal place of residence as of December 31st of the first assessment year the home becomes operational. In each subsequent year, the eligible resident must occupy the dwelling unit as a principal place of residence as of January 1st of the assessment year for which the exemption is claimed. Confinement of the person to a hospital or nursing home does not disqualify the claim of exemption if the dwelling unit is temporarily unoccupied or if the dwelling unit is occupied by a spouse or a domestic partner, a person financially dependent on the claimant for support, or both; and
(ii) Is sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or is, at the time of filing, retired from regular gainful employment by reason of disability as defined in RCW
84.36.383. Any surviving spouse or surviving domestic partner of a person who was receiving an exemption at the time of the person's death qualifies if the surviving spouse or surviving domestic partner is fifty-seven years of age or older and otherwise meets the requirements of this subsection; and
(iii) Has a combined disposable income of no more than the greater of twenty-two thousand dollars or eighty percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the person resides. For the purposes of determining eligibility under this section, a "cotenant" means a person who resides with an eligible resident and who shares personal financial resources with the eligible resident.
(b) "Combined disposable income" means the disposable income of the person submitting the income verification form, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the dwelling unit for the preceding calendar year, less amounts paid by the person submitting the income verification form or his or her spouse or domestic partner or cotenant during the previous year for the treatment or care of either person received in the dwelling unit or in a nursing home. If the person submitting the income verification form was retired for two months or more of the preceding year, the combined disposable income of such person must be calculated by multiplying the average monthly combined disposable income of such person during the months such person was retired by twelve. If the income of the person submitting the income verification form is reduced for two or more months of the preceding year by reason of the death of the person's spouse or domestic partner, the combined disposable income of such person must be calculated by multiplying the average monthly combined disposable income of such person after the death of the spouse or domestic partner by twelve.
(c) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:
(i) Capital gains, other than gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;
(ii) Amounts deducted for loss;
(iii) Amounts deducted for depreciation;
(iv) Pension and annuity receipts;
(v) Military pay and benefits other than attendant-care and medical-aid payments;
(vi) Veterans benefits other than attendant-care and medical-aid payments;
(vii) Federal social security act and railroad retirement benefits;
(viii) Dividend receipts; and
(ix) Interest received on state and municipal bonds.
(d) "Resident requiring assistance with activities of daily living" means a person who requires significant assistance with the activities of daily living and who would be at risk of nursing home placement without this assistance.
(e) "Home for the aging" means a residential housing facility that (i) provides a housing arrangement chosen voluntarily by the resident, the resident's guardian or conservator, or another responsible person; (ii) has only residents who are at least sixty-one years of age or who have needs for care generally compatible with persons who are at least sixty-one years of age; and (iii) provides varying levels of care and supervision, as agreed to at the time of admission or as determined necessary at subsequent times of reappraisal.
(9) A for-profit home for the aging that converts to nonprofit status after June 11, 1992, and would otherwise be eligible for tax exemption under this section may not receive the tax exemption until five years have elapsed since the conversion. The exemption must then be ratably granted over the next five years.
Sec. 404. RCW
84.36.049 and 2018 c 103 s 2 are each amended to read as follows:
(1) All real property owned by a nonprofit entity for the purpose of developing or redeveloping on the real property one or more residences to be sold to low-income households including land to be leased as provided in subsection (8)(d)(ii) of this section, is exempt from state and local property taxes.
(2) The exemption provided in this section expires on or at the earlier of:
(a) The date on which the nonprofit entity transfers title to the single-family dwelling unit;
(b) The date on which the nonprofit entity executes a lease of land described in subsection (8)(d)(ii) of this section;
(c) The end of the seventh consecutive property tax year for which the property is granted an exemption under this section or, if the nonprofit entity has claimed an extension under subsection (3) of this section, the end of the tenth consecutive property tax year for which the property is granted an exemption under this section; or
(d) The property is no longer held for the purpose for which the exemption was granted.
(3) If the nonprofit entity believes that title to the single-family dwelling unit will not be transferred by the end of the sixth consecutive property tax year, the nonprofit entity may claim a three-year extension of the exemption period by:
(a) Filing a notice of extension with the department on or before March 31st of the sixth consecutive property tax year; and
(b) Providing a filing fee equal to the greater of two hundred dollars or one-tenth of one percent of the real market value of the property as of the most recent assessment date with the notice of extension. The filing fee must be deposited into the state general fund.
(4)(a) If the nonprofit entity has not transferred title to the single-family dwelling unit to a low-income household within the applicable period described in subsection (2)(c) of this section, or if the nonprofit entity has converted the property to a purpose other than the purpose for which the exemption was granted, the property is disqualified from the exemption.
(b) Upon disqualification, the county treasurer must collect an additional tax equal to all taxes that would have been paid on the property but for the existence of the exemption, plus interest at the same rate and computed in the same way as that upon delinquent property taxes.
(c) The additional tax must be distributed by the county treasurer in the same manner in which current property taxes applicable to the subject property are distributed. The additional taxes and interest are due in full thirty days following the date on which the treasurer's statement of additional tax due is issued.
(d) The additional tax and interest is a lien on the property. The lien for additional tax and interest has priority to and must be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the property may become charged or liable. If a nonprofit entity sells or transfers real property subject to a lien for additional taxes under this subsection, such unpaid additional taxes must be paid by the nonprofit entity at the time of sale or transfer. The county auditor may not accept an instrument of conveyance unless the additional tax has been paid. The nonprofit entity or the new owner may appeal the assessed values upon which the additional tax is based to the county board of equalization in accordance with the provisions of RCW
84.40.038.
(5) Nonprofit entities receiving an exemption under this section must immediately notify the department when the exempt real property becomes occupied. The notice of occupancy made to the department must include a certification by the nonprofit entity that the occupants are a low-income household and a date when the title to the single-family dwelling unit was or is anticipated to be transferred. The department of ((revenue))taxation must make the notices of occupancy available to the joint legislative audit and review committee, upon request by the committee, in order for the committee to complete its review of the tax preference in this section.
(6) Upon cessation of the exemption, the value of new construction and improvements to the property, not previously considered as new construction, must be considered as new construction for purposes of calculating levies under chapter
84.55 RCW. The assessed value of the property as it was valued prior to the beginning of the exemption may not be considered as new construction upon cessation of the exemption.
(7) Nonprofit entities receiving an exemption under this section must provide annual financial statements to the joint legislative audit and review committee, upon request by the committee, for the years that the exemption has been claimed. The nonprofit entity must identify the line or lines on the financial statements that comprise the percentage of revenues dedicated to the development of affordable housing.
(8) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Financial statements" means an audited annual financial statement and a completed United States treasury internal revenue service return form 990 for organizations exempt from income tax.
(b) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than eighty percent of the median family income, adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the property is located.
(c) "Nonprofit entity" means a nonprofit as defined in RCW
84.36.800 that is exempt from federal income taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986, as amended.
(d) "Residence" means:
(i) A single-family dwelling unit whether such unit be separate or part of a multiunit dwelling; and
(ii) The land on which a dwelling unit described in (d)(i) of this subsection (8) stands, whether to be sold, or to be leased for life or ninety-nine years, to the low-income household owning such dwelling unit.
(9) The department may not accept applications for the initial exemption in this section after December 31, 2027. The exemption in this section may not be approved for and does not apply to taxes due in 2038 and thereafter.
(10) This section expires January 1, 2038.
Sec. 405. RCW
84.36.255 and 2013 c 236 s 1 are each amended to read as follows:
(1) All improvements to real and personal property that benefit fish and wildlife habitat, water quality, or water quantity are exempt from taxation if the improvements are included under a written conservation plan approved by a conservation district. The conservation districts must cooperate with the federal natural resource conservation service, other conservation districts, the department of ecology, the department of fish and wildlife, and nonprofit organizations to assist landowners by working with them to obtain approved conservation plans so as to qualify for the exemption provided for in this section. As provided in subsection (3) of this section and RCW
89.08.440(2), a conservation district must initially certify that the best management practice benefits fish and wildlife habitat, water quality, or water quantity. A habitat conservation plan under the terms of the federal endangered species act is not considered a conservation plan for purposes of this exemption.
(2) The exemption remains in effect only if improvements identified in the written best management practices agreement are maintained as originally approved or amended. Improvements made as a requirement to mitigate for impacts to fish and wildlife habitat, water quality, or water quantity are not eligible for exemption under this section.
(3) A claim for exemption under this section must be filed annually with the county assessor on or before October 31st during the year for exemption from taxes levied for collection in the following year when submitted on forms prescribed by the department of ((revenue))taxation developed in consultation with the conservation district. The landowner must certify each subsequent year that the improvements for which exemption is sought are maintained as originally approved or amended in the written conservation plan. In the first filing year, the claim must contain the initial certification by the conservation district that the improvements for which exemption is sought were included under a written conservation plan approved by the conservation district including best management practices that benefit fish and wildlife habitat, water quality, or water quantity. Each subsequent filing year, the claim must contain a copy of the conservation district's initial certification made in the first filing year, along with the landowner's own certification for the current filing year.
Sec. 406. RCW
84.36.260 and 2014 c 99 s 11 are each amended to read as follows:
(1) All real property interests, including fee simple or any lesser interest, development rights, easements, covenants and conservation futures, as that latter term is defined in RCW
84.34.220 as now or hereafter amended, used exclusively for the conservation of ecological systems, natural resources, or open space, including parklands, held by any nonprofit corporation or association the primary purpose of which is the conducting or facilitating of scientific research or the conserving of natural resources or open space for the general public, shall be exempt from ad valorem taxation if either of the following conditions are met:
(a) To the extent feasible considering the nature of the property interest involved, such property interests shall be used and effectively dedicated primarily for the purpose of providing scientific research or educational opportunities for the general public or the preservation of native plants or animals, or biotic communities, or works of ancient human beings or geological or geographical formations, of distinct scientific and educational interest, and not for the pecuniary benefit of any person or company, as defined in RCW
82.04.030, and shall be open to the general public for educational and scientific research purposes subject to reasonable restrictions designed for its protection; or
(b) Such property interests are subject to an option, accepted in writing by the state, a city or a county, or department of the United States government, for the purchase thereof by the state, a city or a county, or the United States, at a price not exceeding the lesser of the following amounts: (i) The sum of the original purchase cost to such nonprofit corporation or association plus interest from the date of acquisition by such corporation or association at the rate of six percent per annum compounded annually to the date of the exercise of the option; or (ii) the appraised value of the property at the time of the granting of the option, as determined by the department of ((revenue))taxation or when the option is held by the United States, or by an appropriate agency thereof.
(2) To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as provided by RCW
84.36.805.
Sec. 407. RCW
84.36.264 and 2014 c 99 s 12 are each amended to read as follows:
Owners of property desiring tax exempt status pursuant to the provisions of RCW
84.36.260 must make an application for the exemption with the department. If such property qualifies pursuant to RCW
84.36.260(1)(b), a copy of the option must also be submitted to the department. Such option must clearly state the purchase price pursuant to the option or the appraisal value as determined by the department of ((
revenue))
taxation.
Sec. 408. RCW
84.36.310 and 2003 c 302 s 6 are each amended to read as follows:
Any person claiming the exemption provided for in RCW
84.36.300 shall file such claim with his or her listing of personal property as provided by RCW
84.40.040. The claim shall be in the form prescribed by the department of ((
revenue))
taxation, and shall require such information as the department deems necessary to substantiate the claim.
Sec. 409. RCW
84.36.383 and 2012 c 10 s 74 are each amended to read as follows:
As used in RCW
84.36.381 through
84.36.389, except where the context clearly indicates a different meaning:
(1) The term "residence" means a single-family dwelling unit whether such unit be separate or part of a multiunit dwelling, including the land on which such dwelling stands not to exceed one acre, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations. The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides. The term also includes a single-family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW
84.04.080 and
84.04.090, such a residence is deemed real property.
(2) The term "real property" also includes a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe, connections with sewer, water, or other utilities. A mobile home located on land leased by the owner of the mobile home is subject, for tax billing, payment, and collection purposes, only to the personal property provisions of chapter
84.56 RCW and RCW
84.60.040.
(3) "Department" means the state department of ((revenue))taxation.
(4) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for:
(a) Drugs supplied by prescription of a medical practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions;
(b) The treatment or care of either person received in the home or in a nursing home, assisted living facility, or adult family home; and
(c) Health care insurance premiums for medicare under Title XVIII of the social security act.
(5) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:
(a) Capital gains, other than gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;
(b) Amounts deducted for loss;
(c) Amounts deducted for depreciation;
(d) Pension and annuity receipts;
(e) Military pay and benefits other than attendant-care and medical-aid payments;
(f) Veterans benefits, other than:
(i) Attendant-care payments;
(ii) Medical-aid payments;
(iii) Disability compensation, as defined in Title 38, part 3, section 3.4 of the code of federal regulations, as of January 1, 2008; and
(iv) Dependency and indemnity compensation, as defined in Title 38, part 3, section 3.5 of the code of federal regulations, as of January 1, 2008;
(g) Federal social security act and railroad retirement benefits;
(h) Dividend receipts; and
(i) Interest received on state and municipal bonds.
(6) "Cotenant" means a person who resides with the person claiming the exemption and who has an ownership interest in the residence.
(7) "Disability" has the same meaning as provided in 42 U.S.C. Sec. 423(d)(1)(A) as amended prior to January 1, 2005, or such subsequent date as the department may provide by rule consistent with the purpose of this section.
Sec. 410. RCW
84.36.385 and 2011 c 174 s 106 are each amended to read as follows:
(1) A claim for exemption under RCW
84.36.381 as now or hereafter amended, may be made and filed at any time during the year for exemption from taxes payable the following year and thereafter and solely upon forms as prescribed and furnished by the department of ((
revenue))
taxation. However, an exemption from tax under RCW
84.36.381 continues for no more than six years unless a renewal application is filed as provided in subsection (3) of this section.
(2) A person granted an exemption under RCW
84.36.381 must inform the county assessor of any change in status affecting the person's entitlement to the exemption on forms prescribed and furnished by the department of ((
revenue))
taxation.
(3) Each person exempt from taxes under RCW
84.36.381 in 1993 and thereafter, must file with the county assessor a renewal application not later than December 31 of the year the assessor notifies such person of the requirement to file the renewal application. Renewal applications must be on forms prescribed and furnished by the department of ((
revenue))
taxation.
(4) At least once every six years, the county assessor must notify those persons receiving an exemption from taxes under RCW
84.36.381 of the requirement to file a renewal application. The county assessor may also require a renewal application following an amendment of the income requirements set forth in RCW
84.36.381.
(5) If the assessor finds that the applicant does not meet the qualifications as set forth in RCW
84.36.381, as now or hereafter amended, the claim or exemption must be denied but such denial is subject to appeal under the provisions of RCW
84.48.010 and in accordance with the provisions of RCW
84.40.038. If the applicant had received exemption in prior years based on erroneous information, the taxes must be collected subject to penalties as provided in RCW
84.40.130 for a period of not to exceed five years.
(6) The department and each local assessor is hereby directed to publicize the qualifications and manner of making claims under RCW
84.36.381 through
84.36.389, through communications media, including such paid advertisements or notices as it deems appropriate. Notice of the qualifications, method of making applications, the penalties for not reporting a change in status, and availability of further information must be included on or with property tax statements and revaluation notices for all residential property including mobile homes, except rental properties.
Sec. 411. RCW
84.36.387 and 2003 c 53 s 408 are each amended to read as follows:
(1) All claims for exemption shall be made and signed by the person entitled to the exemption, by his or her attorney-in-fact or in the event the residence of such person is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by such holder or by the owner, either before two witnesses or the county assessor or his or her deputy in the county where the real property is located: PROVIDED, That if a claim for exemption is made by a person living in a cooperative housing association, corporation, or partnership, such claim shall be made and signed by the person entitled to the exemption and by the authorized agent of such cooperative.
(2) If the taxpayer is unable to submit his or her own claim, the claim shall be submitted by a duly authorized agent or by a guardian or other person charged with the care of the person or property of such taxpayer.
(3) All claims for exemption and renewal applications shall be accompanied by such documented verification of income as shall be prescribed by rule adopted by the department of ((revenue))taxation.
(4) Any person signing a false claim with the intent to defraud or evade the payment of any tax is guilty of perjury under chapter
9A.72 RCW.
(5) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption to which a claimant residing therein is entitled and such cooperative shall reduce any amount owed by the claimant to the cooperative by such exact amount of tax exemption or, if no amount be owed, the cooperative shall make payment to the claimant of such exact amount of exemption.
(6) A remainderman or other person who would have otherwise paid the tax on real property that is the subject of an exemption granted under RCW
84.36.381 for an estate for life shall reduce the amount which would have been payable by the life tenant to the remainderman or other person to the extent of the exemption. If no amount is owed or separately stated as an obligation between these persons, the remainderman or other person shall make payment to the life tenant in the exact amount of the exemption.
Sec. 412. RCW
84.36.389 and 1979 ex.s. c 214 s 4 are each amended to read as follows:
(1) The director of the department of ((
revenue))
taxation shall adopt such rules and regulations and prescribe such forms as may be necessary and appropriate for implementation and administration of this chapter subject to chapter
34.05 RCW, the administrative procedure act.
(2) The department may conduct such audits of the administration of RCW
84.36.381 through
84.36.389 and the claims for exemption filed thereunder as it considers necessary. The powers of the department under chapter
84.08 RCW apply to these audits.
(3) Any information or facts concerning confidential income data obtained by the assessor or the department, or their agents or employees, under subsection (2) of this section shall be used only to administer RCW
84.36.381 through
84.36.389. Notwithstanding any provision of law to the contrary, absent written consent by the person about whom the information or facts have been obtained, the confidential income data shall not be disclosed by the assessor or the assessor's agents or employees to anyone other than the department or the department's agents or employees nor by the department or the department's agents or employees to anyone other than the assessor or the assessor's agents or employees except in a judicial proceeding pertaining to the taxpayer's entitlement to the tax exemption under RCW
84.36.381 through
84.36.389. Any violation of this subsection is a misdemeanor.
Sec. 413. RCW
84.36.400 and 2013 c 23 s 350 are each amended to read as follows:
Any physical improvement to single-family dwellings upon real property shall be exempt from taxation for the three assessment years subsequent to the completion of the improvement to the extent that the improvement represents thirty percent or less of the value of the original structure. A taxpayer desiring to obtain the exemption granted by this section must file notice of his or her intention to construct the improvement prior to the improvement being made on forms prescribed by the department of ((revenue))taxation and furnished to the taxpayer by the county assessor: PROVIDED, That this exemption cannot be claimed more than once in a five-year period.
The department of ((revenue))taxation shall promulgate such rules and regulations as are necessary and convenient to properly administer the provisions of this section.
Sec. 414. RCW
84.36.590 and 2000 c 246 s 1 are each amended to read as follows:
(1)(a) Beginning with taxes levied for collection in calendar year 2006, all personal property located on land owned by the United States, or an instrumentality of the United States, at the Hanford reservation that is used exclusively in the performance of a privatization contract to pretreat, treat, vitrify, and immobilize tank waste under subsection (2) of this section is exempt from taxation.
(b) Beginning with taxes levied for collection in calendar year 2002, and until the application of (a) of this subsection, all personal property located on land owned by the United States, or an instrumentality of the United States, at the Hanford reservation that is used exclusively in the performance of a privatization contract to pretreat, treat, vitrify, and immobilize tank waste under subsection (3) of this section is exempt from taxes levied by the state.
(2) To qualify for the exemption provided in subsection (1)(a) of this section, the personal property must be owned by a person that has a privatization contract to pretreat, treat, vitrify, and immobilize tank waste located at the Hanford reservation. For the purposes of this section, a privatization contract means a contract in which the United States, or an instrumentality of the United States, has designated the other contracting party as a party responsible for carrying out tank waste clean-up operations at the Hanford reservation.
(3) To qualify for the exemption provided in subsection (1)(b) of this section, the personal property must be owned by a person that has, and complies with, a privatization contract to pretreat, treat, vitrify, and immobilize tank waste located at the Hanford reservation. The personal property must be acquired or constructed, and operated, in compliance with the tank waste treatment complex requirements of the Hanford federal facility agreement and consent order, including schedules for tank waste treatment complex start of construction, initiation of hot commissioning, and schedules for tank waste pretreatment processing and vitrification. The privatization contractor shall submit annually, on or before August 1st, a progress report to the Washington state department of ecology documenting compliance with the requirements of the agreement and consent order and the terms of the privatization contract. The department of ecology shall annually issue, on or before October 1st, a determination to the department of ((revenue))taxation indicating whether the privatization contractor is in compliance with the requirements of the agreement and consent order.
(4) An inadvertent use of property, which otherwise qualifies for an exemption under this section, in a manner inconsistent with the purpose for which the exemption is granted, does not nullify the exemption if the inadvertent use is not part of a pattern of use. A pattern of use is presumed when an inadvertent use is repeated in the same assessment year or in two or more successive assessment years.
Sec. 415. RCW
84.36.630 and 2017 3rd sp.s. c 13 s 312 are each amended to read as follows:
(1) All machinery and equipment owned by a farmer that is personal property is exempt from property taxes levied for any state purpose, including the additional state property tax imposed under RCW
84.52.065(2), if it is used exclusively in growing and producing agricultural products during the calendar year for which the claim for exemption is made.
(2) "Farmer" and "agricultural product" have the same meaning as defined in RCW
82.04.213.
(3) A claim for exemption under this section must be filed with the county assessor together with the statement required under RCW
84.40.190, for exemption from taxes payable the following year. The claim must be made solely upon forms as prescribed and furnished by the department of ((
revenue))
taxation.
Sec. 416. RCW
84.36.635 and 2018 c 164 s 8 are each amended to read as follows:
(1) For the purposes of this section, "anaerobic digester" has the same meaning as provided in RCW
82.08.900.
(2) All buildings, machinery, equipment, and other personal property which are used primarily for the operation of an anaerobic digester, the land upon which this property is located, and land that is reasonably necessary in the operation of an anaerobic digester, are exempt from property taxation for the six assessment years following the date on which the facility or the addition to the existing facility becomes operational.
(3) Claims for exemptions authorized by this section must be filed with the county assessor on forms prescribed by the department of ((revenue))taxation and furnished by the assessor. Once filed, the exemption is valid for six assessment years following the date on which the facility or the addition to the existing facility becomes operational and may not be renewed. The assessor must verify and approve claims as the assessor determines to be justified and in accordance with this section. No claims may be filed after December 31, 2024.
(4) The department of ((
revenue))
taxation may promulgate such rules, pursuant to chapter
34.05 RCW, as necessary to properly administer this section.
Sec. 417. RCW
84.36.640 and 2010 1st sp.s. c 11 s 5 are each amended to read as follows:
(1) For the purposes of this section, "wood biomass fuel" means a pyrolytic liquid fuel or synthesis gas-derived liquid fuel, used in internal combustion engines, and produced from wood, forest, or field residue, or dedicated energy crops that do not include wood pieces that have been treated with chemical preservatives such as creosote, pentachlorophenol, or copper-chrome-arsenic.
(2)(a) All buildings, machinery, equipment, and other personal property which is used primarily for the manufacturing of wood biomass fuel, the land upon which this property is located, and land that is reasonably necessary in the manufacturing of wood biomass fuel, but not land necessary for growing of crops, which together comprise a new manufacturing facility or an addition to an existing manufacturing facility, are exempt from property taxation for the six assessment years following the date on which the facility or the addition to the existing facility becomes operational.
(b) For manufacturing facilities which produce products in addition to wood biomass fuel, the amount of the property tax exemption is based upon the annual percentage of the total value of all products manufactured that is the value of the wood biomass fuel manufactured.
(3) Claims for exemptions authorized by this section must be filed with the county assessor on forms prescribed by the department of ((revenue))taxation and furnished by the assessor. Once filed, the exemption is valid for six years and may not be renewed. The assessor must verify and approve claims as the assessor determines to be justified and in accordance with this section. No claims may be filed after December 31, 2015.
The department of ((
revenue))
taxation may promulgate such rules, pursuant to chapter
34.05 RCW, as necessary to properly administer this section.
Sec. 418. RCW
84.36.660 and 2007 c 434 s 3 are each amended to read as follows:
(1) Prior to installation of an automatic sprinkler system under RCW
19.27.500 through
19.27.520, an owner or lessee of property who meets the requirements of this section may apply to the assessor of the county in which the property is located for a special property tax exemption. This application shall be made upon forms prescribed by the department of ((
revenue))
taxation and supplied by the county assessor.
(a)(i) If a lessee of the property has paid for all expenses associated with the installation and purchase of the automatic sprinkler system, then the benefit of the exemption must inure to the lessee.
(ii) A lessee, otherwise eligible to receive the benefit of the exemption under this section, is entitled to receive such benefit only to the extent that the lessee maintains a valid lease agreement with the property owner for the property in which the automatic sprinkler system was installed pursuant to RCW
19.27.500.
(b) An exemption may be granted under this section only to the property owner or lessee that pays for all expenses associated with the installation and purchase of the automatic sprinkler system. In no event may both the property owner and the lessee receive an exemption under this section in the same calendar year for the installation and purchase of the same automatic sprinkler system.
(c) After December 31, 2009, no new application for a special tax exemption under this section may be: Made by a property owner or lessee; or accepted by the county assessor.
(2) As used in this chapter, "special property tax exemption" means the determination of the assessed value of the property subtracting, for ten years, the increase in value attributable to the installation of an automatic sprinkler system under RCW
19.27.500 through
19.27.520.
(3) The county assessor shall, for ten consecutive assessment years following the calendar year in which application is made, place a special property tax exemption on property classified as eligible.
Sec. 419. RCW
84.36.812 and 2001 c 185 s 9 are each amended to read as follows:
All additional taxes imposed under RCW
84.36.262 or
84.36.810 shall become due and payable by the seller or transferor at the time of sale. The county auditor shall not accept an instrument of conveyance unless the additional tax has been paid or the department of ((
revenue))
taxation has determined that the property is not subject to RCW
84.36.262 or
84.36.810. The seller, the transferor, or the new owner may appeal the assessed values upon which the additional tax is based to the county board of equalization in accordance with the provisions of RCW
84.40.038.
Sec. 420. RCW
84.36.813 and 2013 c 23 s 351 are each amended to read as follows:
An exempt property owner shall notify the department of ((
revenue))
taxation of any change of use prior to each assessment year. Any other person believing that a change in the use of exempt property has occurred shall report same to the county assessor, who shall examine the property and if the use is not in compliance with chapter
84.36 RCW he or she shall report the information to the department with a recommendation that the exempt status be canceled. The final determination shall be made by the department.
Sec. 421. RCW
84.36.815 and 2016 c 217 s 4 are each amended to read as follows:
(1) In order to qualify for exempt status for any real or personal property under this chapter except personal property under RCW
84.36.600, all foreign national governments; cemeteries; nongovernmental nonprofit corporations, organizations, and associations; hospitals owned and operated by a public hospital district for purposes of exemption under RCW
84.36.040(2); and soil and water conservation districts must file an initial application on or before March 31st with the state department of ((
revenue))
taxation. However, the initial application deadline for the exemption provided in RCW
84.36.049 is July 1st for 2016 and March 31st for 2017 and thereafter. All applications must be filed on forms prescribed by the department and must be signed by an authorized agent of the applicant.
(2) In order to requalify for exempt status, all applicants except nonprofit cemeteries and nonprofits receiving the exemption under RCW
84.36.049 must file an annual renewal declaration on or before March 31st each year. The renewal declaration must be on forms prescribed by the department of ((
revenue))
taxation and must contain a statement certifying the exempt status of the real or personal property owned by the exempt organization. This renewal declaration may be submitted electronically in a format provided or approved by the department. Information may also be required with the renewal declaration to assist the department in determining whether the property tax exemption should continue.
(3) When an organization acquires real property qualified for exemption or converts real property to exempt status, the organization must file an initial application for the property within sixty days following the acquisition or conversion in accordance with all applicable provisions of subsection (1) of this section. If the application is filed after the expiration of the sixty-day period, a late filing penalty is imposed under RCW
84.36.825.
(4) When organizations acquire real property qualified for exemption or convert real property to an exempt use, the property, upon approval of the application for exemption, is entitled to a property tax exemption for property taxes due and payable the following year. If the owner has paid taxes for the year following the year the property qualified for exemption, the owner is entitled to a refund of the amount paid on the property so acquired or converted.
(5) The department must share approved initial applications for the tax preference provided in RCW
84.36.049 with the joint legislative audit and review committee, upon request by the committee, in order for the committee to complete its review of the tax preference provided in RCW
84.36.049.
Sec. 422. RCW
84.36.820 and 2016 c 217 s 5 are each amended to read as follows:
On or before January 1st of each year, the department of ((
revenue))
taxation must notify the owners of record of property exempted from property taxation at their last known address about the obligation to file an annual renewal declaration for continued exemption. When a continued exemption is not approved, the department must notify the assessor of the county in which the property is located who, in turn, must remove the tax exemption from the property. The failure to file an annual renewal declaration for continued exemption and subsequent removal of the exemption is not subject to review as provided in RCW
84.36.850. The department of ((
revenue))
taxation must review applications received after the due date required under RCW
84.36.815, but these applications are subject to late filing penalties provided in RCW
84.36.825.
Sec. 423. RCW
84.36.830 and 2007 c 111 s 304 are each amended to read as follows:
(1) The department of ((revenue))taxation shall review each application for exemption and approve or deny the application before August 1st of the assessment year for which the application is made. However, exemption applications received after March 31st shall be reviewed and determination made thereon within thirty days of the date received or by August 1st, whichever is later.
(2) The department may request additional relevant information as it deems necessary. The department may also physically inspect the property and satisfy itself as to the use of all parcels before approving or denying the application. After approving an application, the department may also physically inspect the property at regular intervals to ensure compliance with this chapter.
(3) When the department has examined the application and, if applicable, the subject property, it shall either approve or deny the request and clearly state the reasons for denial in written notification by mail to the applicant. The department shall also notify the assessor of the county in which the property is located. The county assessor shall place the property on the assessment roll for the current year.
Sec. 424. RCW
84.36.835 and 1998 c 311 s 29 are each amended to read as follows:
On or before August 31st, the department of ((revenue))taxation shall prepare a list by county of those properties exempted by the department under this chapter and shall forward a list to each county assessor of the property exempt in that county.
Sec. 425. RCW
84.36.840 and 2016 c 217 s 6 are each amended to read as follows:
(1) In order to determine whether organizations, associations, corporations, or institutions, except those exempted under RCW
84.36.020,
84.36.049, and
84.36.030, are exempt from property taxes, and before the exemption is allowed for any year, the superintendent or manager or other proper officer of the organization, association, corporation, or institution claiming exemption from taxation must file with the department of ((
revenue))
taxation a statement certifying that the income and the receipts thereof, including donations to it, have been applied to the actual expenses of operating and maintaining it, or for its capital expenditures, and to no other purpose. This report must also include a statement of the receipts and disbursements of the exempt organization, association, corporation, or institution.
(2) Educational institutions claiming exemption under RCW
84.36.050 must also file a list of all property claimed to be exempt, the purpose for which it is used, the revenue derived from it for the preceding year, the use to which the revenue was applied, the number of students who attended the school or college, the total revenues of the institution with the source from which they were derived, and the purposes to which the revenues were applied, listing the items of such revenues and expenditures in detail.
(3) The reports required under subsections (1) and (2) of this section may be submitted electronically, in a format provided or approved by the department, or mailed to the department. The reports must be submitted on or before March 31st of each year. The department must remove the tax exemption from the property of any organization, association, corporation, or institution that does not file the required report with the department on or before the due date. However, the department must allow a reasonable extension of time for filing upon receipt of a written request on or before the required filing date and for good cause shown therein.
Sec. 426. RCW
84.36.850 and 2013 c 23 s 352 are each amended to read as follows:
Any applicant aggrieved by the department of ((revenue's))taxation's denial of an exemption application may petition the state board of tax appeals to review an application for either real or personal property tax exemption and the board shall consider any appeals to determine (1) if the property is entitled to an exemption, and (2) the amount or portion thereof.
A county assessor of the county in which the exempted property is located shall be empowered to appeal to the state board of tax appeals to review any real or personal property tax exemption approved by the department of ((revenue))taxation which he or she feels is not warranted.
Appeals from a department of ((revenue))taxation decision must be made within thirty days after the mailing of the approval or denial.
Sec. 427. RCW
84.36.860 and 1973 2nd ex.s. c 40 s 18 are each amended to read as follows:
Each county assessor and the director of the department of ((
revenue))
taxation shall each issue public notice of the provisions of chapter 40, Laws of 1973 2nd ex. sess. in such a manner as will give constructive notice to all taxpayers of that county or of the state, as the case may be, prior to the first year in which an application for exemption is required by RCW
84.36.815 through
84.36.845.
Sec. 428. RCW
84.36.865 and 1975 1st ex.s. c 291 s 20 are each amended to read as follows:
The department of ((
revenue))
taxation of the state of Washington shall make such rules and regulations consistent with chapter
34.05 RCW and the provisions of this chapter as shall be necessary or desirable to permit its effective administration.
Sec. 429. RCW
84.37.070 and 2013 c 221 s 7 are each amended to read as follows:
Whenever a person's special assessment or real property tax obligation, or both, is deferred under this chapter, the amount deferred and required to be paid pursuant to RCW
84.38.120 becomes a lien in favor of the state upon his or her property and has priority as provided in chapters
35.49, 35.50, 36.35, and
84.60 RCW. However, the interest of a mortgage or purchase contract holder who requires an accumulation of reserves out of which real estate taxes are paid has priority to said deferred lien. This lien may accumulate up to forty percent of the amount of the claimant's equity value in the property and the rate of interest must be an average of the federal short-term rate as defined in 26 U.S.C. Sec. 1274(d) plus two percentage points. The rate set for each new year is computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually. That average must be calculated using the rates from four months: January, April, and July of the calendar year immediately preceding the new year, and October of the previous preceding year. The interest is calculated from the time it could have been paid before delinquency until such obligation is paid or the date that the obligation is charged off as finally uncollectible. In the case of a mobile home, the department of licensing must show the state's lien on the certificate of title for the mobile home. In the case of all other property, the department of ((
revenue))
taxation must file a notice of the deferral with the county recorder or auditor.
Sec. 430. RCW
84.38.020 and 2006 c 62 s 2 are each amended to read as follows:
Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:
(1) "Claimant" means a person who either elects or is required under RCW
84.64.050 to defer payment of the special assessments and/or real property taxes accrued on the claimant's residence by filing a declaration to defer as provided by this chapter.
When two or more individuals of a household file or seek to file a declaration to defer, they may determine between them as to who the claimant shall be.
(2) "Department" means the state department of ((revenue))taxation.
(3) "Equity value" means the amount by which the fair market value of a residence as determined from the records of the county assessor exceeds the total amount of any liens or other obligations against the property.
(4) "Local government" means any city, town, county, water-sewer district, public utility district, port district, irrigation district, flood control district, or any other municipal corporation, quasi-municipal corporation, or other political subdivision authorized to levy special assessments.
(5) "Real property taxes" means ad valorem property taxes levied on a residence in this state in the preceding calendar year.
(6) "Residence" has the meaning given in RCW
84.36.383.
(7) "Special assessment" means the charge or obligation imposed by a local government upon property specially benefited.
Sec. 431. RCW
84.38.050 and 1979 ex.s. c 214 s 8 are each amended to read as follows:
(1)(a) Declarations to defer property taxes for all years following the first year may be made by filing with the county assessor no later than thirty days before the tax is due a renewal form in duplicate, prescribed by the department of ((revenue))taxation and supplied by the county assessor, which affirms the continued eligibility of the claimant.
(b) In January of each year, the county assessor shall send to each claimant who has been granted deferral of ad valorem taxes for the previous year renewal forms and notice to renew.
(2) Declarations to defer special assessments shall be made by filing with the assessor no later than thirty days before the special assessment is due on a form to be prescribed by the department of ((revenue))taxation and supplied by the county assessor. Upon approval, the full amount of special assessments upon such claimant's residence shall be deferred but not to exceed an amount equal to eighty percent of the claimant's equity value in said property.
Sec. 432. RCW
84.38.100 and 2013 c 221 s 8 are each amended to read as follows:
Whenever a person's special assessment and/or real property tax obligation is deferred under the provisions of this chapter, the amount deferred and required to be paid pursuant to RCW
84.38.120 becomes a lien in favor of the state upon his or her property and has priority as provided in chapters
35.49, 35.50, 36.35, and
84.60 RCW. However, the interest of a mortgage or purchase contract holder who is required to cosign a declaration of deferral under RCW
84.38.090, has priority to such deferred lien. This lien may accumulate up to eighty percent of the amount of the claimant's equity value in the property and must bear interest at the rate of five percent per year from the time it could have been paid before delinquency until said obligation is paid. However, when taxes are deferred as provided in RCW
84.64.050, the amount must bear interest at the rate of five percent per year from the date the declaration is filed until the obligation is paid or the date that the obligation is charged off as finally uncollectible. In the case of a mobile home, the department of licensing must show the state's lien on the certificate of title for the mobile home. In the case of all other property, the department of ((
revenue))
taxation must file a notice of the deferral with the county recorder or auditor.
Sec. 433. RCW
84.38.110 and 1984 c 220 s 24 are each amended to read as follows:
The county assessor shall:
(1) Immediately transmit one copy of each declaration to defer to the department of ((revenue))taxation. The department may audit any declaration and shall notify the assessor as soon as possible of any claim where any factor appears to disqualify the claimant for the deferral sought.
(2) Transmit one copy of each declaration to defer a special assessment to the local improvement district which imposed such assessment.
(3) Compute the dollar tax rate for the county as if any deferrals provided by this chapter did not exist.
(4) As soon as possible notify the department of ((revenue))taxation and the county treasurer of the amount of real property taxes deferred for that year and notify the department of ((revenue))taxation and the respective treasurers of municipal corporations of the amount of special assessments deferred for each local improvement district within such unit.
Sec. 434. RCW
84.38.180 and 1975 1st ex.s. c 291 s 43 are each amended to read as follows:
The department of ((
revenue))
taxation of the state of Washington shall devise the forms and make rules and regulations consistent with chapter
34.05 RCW and the provisions of this chapter as shall be necessary or desirable to permit its effective administration.
Sec. 435. RCW
84.40.025 and 1982 1st ex.s. c 46 s 10 are each amended to read as follows:
For the purpose of assessment and valuation of all taxable property in each county, any real or personal property in each county shall be subject to visitation, investigation, examination, discovery, and listing at any reasonable time by the county assessor of the county or by any employee thereof designated for this purpose by the assessor.
In any case of refusal to such access, the assessor shall request assistance from the department of ((
revenue))
taxation which may invoke the power granted by chapter
84.08 RCW.
Sec. 436. RCW
84.40.038 and 2014 c 97 s 407 are each amended to read as follows:
(1) The owner or person responsible for payment of taxes on any property may petition the county board of equalization for a change in the assessed valuation placed upon such property by the county assessor or for any other reason specifically authorized by statute. Such petition must be made on forms prescribed or approved by the department of ((revenue))taxation and any petition not conforming to those requirements or not properly completed may not be considered by the board. The petition must be filed with the board:
(a) On or before July 1st of the year of the assessment or determination;
(b) Within thirty days after the date the assessment, value change notice, or other notice was mailed;
(c) Within thirty days after the date that the assessor electronically (i) transmitted the assessment, value change notice, or other notice, or (ii) notified the owner or person responsible for payment of taxes that the assessment, value change notice, or other notice was available to be accessed by the owner or other person; or
(d) Within a time limit of up to sixty days adopted by the county legislative authority, whichever is later. If a county legislative authority sets a time limit, the authority may not change the limit for three years from the adoption of the limit.
(2) The board of equalization may waive the filing deadline if the petition is filed within a reasonable time after the filing deadline and the petitioner shows good cause for the late filing. However, the board of equalization must waive the filing deadline for the circumstance described under (f) of this subsection if the petition is filed within a reasonable time after the filing deadline. The decision of the board of equalization regarding a waiver of the filing deadline is final and not appealable under RCW
84.08.130. Good cause may be shown by one or more of the following events or circumstances:
(a) Death or serious illness of the taxpayer or his or her immediate family;
(b) The taxpayer was absent from the address where the taxpayer normally receives the assessment or value change notice, was absent for more than fifteen days of the days allowed in subsection (1) of this section before the filing deadline, and the filing deadline is after July 1;
(c) Incorrect written advice regarding filing requirements received from board of equalization staff, county assessor's staff, or staff of the property tax advisor designated under RCW
84.48.140;
(d) Natural disaster such as flood or earthquake;
(e) Delay or loss related to the delivery of the petition by the postal service, and documented by the postal service;
(f) The taxpayer was not sent a revaluation notice under RCW
84.40.045 for the current assessment year and the taxpayer can demonstrate both of the following:
(i) The taxpayer's property value did not change from the previous year; and
(ii) The taxpayer's property is located in an area revalued by the assessor for the current assessment year; or
(g) Other circumstances as the department may provide by rule.
(3) The owner or person responsible for payment of taxes on any property may request that the appeal be heard by the state board of tax appeals without a hearing by the county board of equalization when the assessor, the owner or person responsible for payment of taxes on the property, and a majority of the county board of equalization agree that a direct appeal to the state board of tax appeals is appropriate. The state board of tax appeals may reject the appeal, in which case the county board of equalization must consider the appeal under RCW
84.48.010. Notice of such a rejection, together with the reason therefor, must be provided to the affected parties and the county board of equalization within thirty days of receipt of the direct appeal by the state board.
Sec. 437. RCW
84.40.040 and 2003 c 302 s 1 are each amended to read as follows:
The assessor shall begin the preliminary work for each assessment not later than the first day of December of each year in all counties in the state. The assessor shall also complete the duties of listing and placing valuations on all property by May 31st of each year, except that the listing and valuation of construction and mobile homes under RCW
36.21.080 and
36.21.090 shall be completed by August 31st of each year, and in the following manner, to wit:
The assessor shall actually determine as nearly as practicable the true and fair value of each tract or lot of land listed for taxation and of each improvement located thereon and shall enter one hundred percent of the true and fair value of such land and value of such improvements, together with the total of such one hundred percent valuations, opposite each description of property on the assessment list and tax roll.
The assessor shall make an alphabetical list of the names of all persons in the county liable to assessment of personal property, and require each person to make a correct list and statement of such property according to the standard form prescribed by the department of ((
revenue))
taxation, which statement and list shall include, if required by the form, the year of acquisition and total original cost of personal property in each category of the prescribed form. However, the assessor may list and value improvements on publicly owned land in the same manner as real property is listed and valued, including conformance with the revaluation program required under chapter
84.41 RCW. Such list and statement shall be filed on or before the last day of April. The assessor shall on or before the 1st day of January of each year mail, or electronically transmit, a notice to all such persons at their last known address that such statement and list is required. This notice must be accompanied by the form on which the statement or list is to be made. The notice mailed, or electronically transmitted, by the assessor to each taxpayer each year shall, if practicable, include the statement and list of personal property of the taxpayer for the preceding year. Upon receipt of such statement and list the assessor shall thereupon determine the true and fair value of the property included in such statement and enter one hundred percent of the same on the assessment roll opposite the name of the party assessed; and in making such entry in the assessment list, the assessor shall give the name and post office address of the party listing the property, and if the party resides in a city the assessor shall give the street and number or other brief description of the party's residence or place of business. The assessor may, after giving written notice of the action to the person to be assessed, add to the assessment list any taxable property which should be included in such list.
Sec. 438. RCW
84.40.065 and 1993 c 33 s 2 are each amended to read as follows:
(1) Every individual, corporation, association, partnership, trust, and estate shall list with the department of ((revenue))taxation all ships and vessels which are subject to their ownership, possession, or control and which are not entirely exempt from property taxation, and such listing shall be subject to the same requirements and penalties provided in this chapter for all other personal property in the same manner as provided in this chapter, except as may be specifically provided otherwise with respect to ships and vessels.
(2) The listing of ships and vessels shall be accomplished in the manner and upon forms prescribed by the department. Upon listing, the department shall assign a tax identification number for each vessel listed.
(3) The department shall assess all ships and vessels and shall, on or before January 31st of each year, mail to the owner of a ship or vessel, or to the person listing the ship or vessel if different from the owner, a notice showing the valuation of the ship or vessel assessed. Taxes due the following year shall be based upon the valuation. On or after February 15, but no later than thirty days before April 30, the department shall mail to the owner of a ship or vessel, or to the person listing the ship or vessel if different from the owner, a tax statement showing the valuation for the previous year of the ship or vessel assessed and the amount of tax owed for the current year.
(4) Any ship or vessel owner, or person listing the ship or vessel if different from the owner, disputing the assessment or disputing whether the ship or vessel is subject to taxation under this section shall have the same rights of review as any other ship or vessel owner subject to the excise tax contained in chapter
82.49 RCW in accordance with RCW
82.49.060.
Sec. 439. RCW
84.40.190 and 2003 c 302 s 4 are each amended to read as follows:
Every person required by this title to list property shall make out and deliver to the assessor, or to the department as required by RCW
84.40.065, either in person, by mail, or by electronic transmittal if available, a statement of all the personal property in his or her possession or under his or her control, and which, by the provisions of this title, he or she is required to list for taxation, either as owner or holder thereof. When any list, schedule, or statement is made, the principal required to make out and deliver the same shall be responsible for the contents and the filing thereof and shall be liable for the penalties imposed pursuant to RCW
84.40.130. No person shall be required to list for taxation in his statement to the assessor any share or portion of the capital stock, or of any of the property of any company, association or corporation, which such person may hold in whole or in part, where such company, being required so to do, has listed for assessment and taxation its capital stock and property with the department of ((
revenue))
taxation, or as otherwise required by law.
Sec. 440. RCW
84.40.320 and 2016 c 202 s 49 are each amended to read as follows:
The assessor shall add up and note the amount of each column in the detail and assessment lists in such manner as prescribed or approved by the state department of ((revenue))taxation, as will provide a convenient and permanent record of assessment. The assessor shall also make, under proper headings, a certification of the assessment rolls and on the 15th day of July shall file the same with the clerk of the county board of equalization for the purpose of equalization by the said board. Such certificate shall be verified by an affidavit, substantially in the following form:
State of Washington, . . . . . . County, ss.
I, . . . . . ., Assessor . . . . . ., do solemnly swear that the assessment rolls and this certificate contain a correct and full list of all the real and personal property subject to taxation in this county for the assessment year (year) . . . ., so far as I have been able to ascertain the same; and that the assessed value set down in the proper column, opposite the several kinds and descriptions of property, is in each case, except as otherwise provided by law, one hundred percent of the true and fair value of such property, to the best of my knowledge and belief, and that the assessment rolls and this certificate are correct, as I verily believe.
. . . . . . . . . ., Assessor.
Subscribed and sworn to before me this . . . . day of . . . . . ., (year) . . . .
(L. S.) . . . . . ., Auditor of . . . . . . county.
PROVIDED, That the failure of the assessor to complete the certificate shall in nowise invalidate the assessment. After the same has been duly equalized by the county board of equalization, the same shall be delivered to the county assessor.
Sec. 441. RCW
84.40.340 and 2003 c 53 s 410 are each amended to read as follows:
(1) For the purpose of verifying any list, statement, or schedule required to be furnished to the assessor by any taxpayer, any assessor or his or her trained and qualified deputy at any reasonable time may visit, investigate and examine any personal property, and for this purpose the records, accounts and inventories also shall be subject to any such visitation, investigation and examination which shall aid in determining the amount and valuation of such property. Such powers and duties may be performed at any office of the taxpayer in this state, and the taxpayer shall furnish or make available all such information pertaining to property in this state to the assessor although the records may be maintained at any office outside this state.
(2) Any information or facts obtained pursuant to this section shall be used by the assessor only for the purpose of determining the assessed valuation of the taxpayer's property: PROVIDED, That such information or facts shall also be made available to the department of ((
revenue))
taxation upon request for the purpose of determining any sales or use tax liability with respect to personal property, and except in a civil or criminal judicial proceeding or an administrative proceeding in respect to penalties imposed pursuant to RCW
84.40.130, to such sales or use taxes, or to the assessment or valuation for tax purposes of the property to which such information and facts relate, shall not be disclosed by the assessor or the department of ((
revenue))
taxation without the permission of the taxpayer to any person other than public officers or employees whose duties relate to valuation of property for tax purposes or to the imposition and collection of sales and use taxes, and any violation of this secrecy provision is a gross misdemeanor.
Sec. 442. RCW
84.40.405 and 2001 c 187 s 20 are each amended to read as follows:
The department of ((
revenue))
taxation shall promulgate such rules and regulations, and prescribe such procedures as it deems necessary to carry out RCW
84.36.470 and
84.36.477.
Sec. 443. RCW
84.41.041 and 2017 c 323 s 507 are each amended to read as follows:
(1) Each county assessor must cause taxable real property to be physically inspected and valued at least once every six years in accordance with RCW
84.41.030, and in accordance with a plan filed with and approved by the department of ((
revenue))
taxation. Such revaluation plan must provide that all taxable real property within a county must be revalued and these newly determined values placed on the assessment rolls each year. Property must be valued at one hundred percent of its true and fair value and assessed on the same basis, in accordance with RCW
84.40.030, unless specifically provided otherwise by law. During the intervals between each physical inspection of real property, the valuation of such property must be adjusted to its current true and fair value, such adjustments to be made once each year and to be based upon appropriate statistical data.
(2) The assessor may require property owners to submit pertinent data respecting taxable property in their control including data respecting any sale or purchase of said property within the past five years, the cost and characteristics of any improvement on the property and other facts necessary for appraisal of the property.
Sec. 444. RCW
84.41.060 and 1975 1st ex.s. c 278 s 197 are each amended to read as follows:
Any county assessor may request special assistance from the department of ((revenue))taxation in the valuation of property which either (1) requires specialized knowledge not otherwise available to the assessor's staff, or (2) because of an inadequate staff, cannot be completed by the assessor within the time required by this chapter. After consideration of such request the department of ((revenue))taxation shall advise the assessor that such request is either approved or rejected in whole or in part. Upon approval of such request, the department of ((revenue))taxation may assist the assessor in the valuation of such property in such manner as the department of ((revenue))taxation, in its discretion, considers proper and adequate.
Sec. 445. RCW
84.41.070 and 1994 c 301 s 40 are each amended to read as follows:
If the department of ((revenue))taxation finds upon its own investigation, or upon a showing by others, that the revaluation program for any county is not proceeding for any reason as herein directed, the department of ((revenue))taxation shall advise both the county legislative authority and the county assessor of such finding. Within thirty days after receiving such advice, the county legislative authority, at regular or special session, either (1) shall authorize such expenditures as will enable the assessor to complete the revaluation program as herein directed, or (2) shall direct the assessor to request special assistance from the department of ((revenue))taxation for aid in effectuating the county's revaluation program.
Sec. 446. RCW
84.41.080 and 2013 c 23 s 365 are each amended to read as follows:
Upon receiving a request from the county assessor, either upon his or her initiation or at the direction of the board of county commissioners, for special assistance in the county's revaluation program, the department of ((revenue))taxation may, before undertaking to render such special assistance, negotiate a contract with the board of county commissioners of the county concerned. Such contracts as are negotiated shall provide that the county will reimburse the state for fifty percent of the costs of such special assistance within three years of the date of expenditure of such costs. All such reimbursements shall be paid to the department of ((revenue))taxation for deposit to the state general fund. The department of ((revenue))taxation shall keep complete records of such contracts, including costs incurred, payments received, and services performed thereunder.
Sec. 447. RCW
84.41.090 and 1982 1st ex.s. c 46 s 3 are each amended to read as follows:
The department of ((
revenue))
taxation shall by rule establish appropriate statistical methods for use by assessors in adjusting the valuation of property between physical inspections. The department of ((
revenue))
taxation shall make and publish such additional rules, regulations and guides which it determines are needed to supplement materials presently published by the department of ((
revenue))
taxation for the general guidance and assistance of county assessors. Each assessor is hereby directed and required to value property in accordance with the standards established by RCW
84.40.030 and in accordance with the applicable rules, regulations and valuation manuals published by the department of ((
revenue))
taxation.
Sec. 448. RCW
84.41.110 and 1975 1st ex.s. c 278 s 201 are each amended to read as follows:
Appraisers whose services may be obtained by contract or who may be assigned by the department of ((revenue))taxation to assist any county assessor shall act in an advisory capacity only, and valuations made by them shall not in any manner be binding upon the assessor, it being the intent herein that all valuations made pursuant to this chapter shall be made and entered by the assessor pursuant to law as directed herein.
Sec. 449. RCW
84.41.120 and 2013 c 23 s 366 are each amended to read as follows:
Each county assessor shall keep such books and records as are required by the rules and regulations of the department of ((revenue))taxation and shall comply with any lawful order, rule, or regulation of the department of ((revenue))taxation.
Whenever it appears to the department of ((revenue))taxation that any assessor has failed to comply with any of the provisions of this chapter relating to his or her duties or the rules of the department of ((revenue))taxation made in pursuance thereof, the department of ((revenue))taxation, after a hearing on the facts, may issue an order directing such assessor to comply with such provisions of this chapter or rules of the department of ((revenue))taxation. Such order shall be mailed by registered mail to the assessor at the county courthouse. If, upon the expiration of fifteen days from the date such order is mailed, the assessor has not complied therewith or has not taken measures that will insure compliance within a reasonable time, the department of ((revenue))taxation may apply to a judge of the superior court or court commissioner of the county in which such assessor holds office, for an order returnable within five days from the date thereof to compel him or her to comply with such provisions of law or of the order of the department of ((revenue))taxation or to show cause why he or she should not be compelled so to do. Any order issued by the judge pursuant to such order to show cause shall be final. The remedy herein provided shall be cumulative and shall not exclude the department of ((revenue))taxation from exercising any powers or rights otherwise granted.
Sec. 450. RCW
84.41.130 and 1998 c 245 s 171 are each amended to read as follows:
Each county assessor, before October 15th each year, shall prepare and submit to the department of ((revenue))taxation a detailed report of the progress made in the revaluation program in his or her county to the date of the report and be made a matter of public record. Such report shall be submitted upon forms supplied by the department of ((revenue))taxation and shall consist of such information as the department of ((revenue))taxation requires.
Sec. 451. RCW
84.44.090 and 1975 1st ex.s. c 278 s 205 are each amended to read as follows:
In all questions that may arise under this title as to the proper place to list personal property, or where the same cannot be listed as stated in this title, if between several places in the same county, or between different counties, or places in different counties, the place for listing and assessing shall be determined and fixed by the department of ((revenue))taxation; and when fixed in either case shall be as binding as if fixed by this title.
Sec. 452. RCW
84.48.010 and 2017 c 155 s 1 are each amended to read as follows:
(1) Prior to July 15th, the county legislative authority must form a board for the equalization of the assessment of the property of the county. The members of the board must receive a per diem amount as set by the county legislative authority for each day of actual attendance of the meeting of the board of equalization to be paid out of the current expense fund of the county. However, when the county legislative authority constitutes the board they may only receive their compensation as members of the county legislative authority. The board of equalization must meet in open session for this purpose annually on the 15th day of July or within fourteen days of certification of the county assessment rolls, whichever is later, and, having each taken an oath fairly and impartially to perform their duties as members of such board, they must examine and compare the returns of the assessment of the property of the county and proceed to equalize the same, so that each tract or lot of real property and each article or class of personal property must be entered on the assessment list at its true and fair value, according to the measure of value used by the county assessor in such assessment year, which is presumed to be correct under RCW
84.40.0301, and subject to the following rules:
(a) They must raise the valuation of each tract or lot or item of real property which is returned below its true and fair value to such price or sum as to be the true and fair value thereof, after at least five days' notice must have been given in writing to the owner or agent.
(b) They must reduce the valuation of each tract or lot or item which is returned above its true and fair value to such price or sum as to be the true and fair value thereof.
(c) They must raise the valuation of each class of personal property which is returned below its true and fair value to such price or sum as to be the true and fair value thereof, and they must raise the aggregate value of the personal property of each individual whenever the aggregate value is less than the true valuation of the taxable personal property possessed by such individual, to such sum or amount as to be the true value thereof, after at least five days' notice must have been given in writing to the owner or agent thereof.
(d) They must reduce the valuation of each class of personal property enumerated on the detail and assessment list of the current year, which is returned above its true and fair value, to such price or sum as to be the true and fair value thereof; and they must reduce the aggregate valuation of the personal property of such individual who has been assessed at too large a sum to such sum or amount as was the true and fair value of the personal property.
(e) The board may review all claims for either real or personal property tax exemption as determined by the county assessor, and must consider any taxpayer appeals from the decision of the assessor thereon to determine (i) if the taxpayer is entitled to an exemption, and (ii) if so, the amount thereof.
(2) The board must notify the taxpayer and assessor of the board's decision within forty-five days of any hearing on the taxpayer's appeal of the assessor's valuation of real or personal property.
(3) The clerk of the board must keep an accurate journal or record of the proceedings and orders of the board showing the facts and evidence upon which their action is based, and the record must be published the same as other proceedings of county legislative authority, and must make a true record of the changes of the descriptions and assessed values ordered by the county board of equalization. The assessor must correct the real and personal assessment rolls in accordance with the changes made by the county board of equalization.
(4) The county board of equalization must meet on the 15th day of July or within fourteen days of certification of the county assessment rolls, whichever is later, and may continue in session and adjourn from time to time during a period not to exceed four weeks, but must remain in session not less than three days. However, the county board of equalization with the approval of the county legislative authority may convene at any time when petitions filed exceed twenty-five, or ten percent of the number of appeals filed in the preceding year, whichever is greater.
(5) No taxes, except special taxes, may be extended upon the tax rolls until the property valuations are equalized by the department of ((revenue))taxation for the purpose of raising the state revenue.
(6) County legislative authorities as such have at no time any authority to change the valuation of the property of any person or to release or commute in whole or in part the taxes due on the property of any person.
Sec. 453. RCW
84.48.014 and 1988 c 222 s 21 are each amended to read as follows:
The board of equalization of each county shall consist of not less than three nor more than seven members including alternates. Such members shall be appointed by a majority of the members of the county legislative authority, and shall be selected based upon the qualifications established by rule by the department of ((
revenue))
taxation and shall not be a holder of any elective office nor be an employee of any elected official: PROVIDED, HOWEVER, The county legislative authority may itself constitute the board at its discretion. Any member who does not attend the school required by RCW
84.48.042 within one year of appointment or reappointment shall be barred from serving as a member of the board of equalization unless this requirement is waived for the member by the department for just cause.
Sec. 454. RCW
84.48.032 and 1994 c 124 s 29 are each amended to read as follows:
The board may hire one or more appraisers accredited by the department of ((revenue))taxation or certified by the Washington state department of licensing, society of real estate appraisers, American institute of real estate appraisers, or international association of assessing officers, and not otherwise employed by the county, and other necessary personnel for the purpose of aiding the board and carrying out its functions and duties. In addition, the boards of the various counties may make reciprocal arrangements for the exchange of the appraisers with other counties. Such appraisers need not be residents of the county.
Sec. 455. RCW
84.48.042 and 1988 c 222 s 22 are each amended to read as follows:
The department of ((revenue))taxation shall establish a school for the training of members of the several boards of equalization throughout the state. Sessions of such schools shall, so far as practicable, be held in each district of the Washington state association of counties. Every member of the board of equalization of each county shall attend such school within one year following appointment or reappointment.
Sec. 456. RCW
84.48.046 and 1970 ex.s. c 55 s 12 are each amended to read as follows:
The department of ((revenue))taxation shall provide a manual for the operation procedures of the several boards of equalization so that uniformity of assessment may be obtained throughout the state, and the several boards of equalization shall follow such manual in all of its operations and procedures.
Sec. 457. RCW
84.48.050 and 2010 c 106 s 311 are each amended to read as follows:
(1) The county assessor must, on or before the fifteenth day of January in each year, prepare a complete abstract of the tax rolls of the county, showing the number of acres that have been assessed and the total value of the real property, including the structures on the real property; the total value of all taxable personal property in the county; the aggregate amount of all taxable property in the county; the total amount as equalized and the total amount of taxes levied in the county for state, county, city, and other taxing district purposes, for that year.
(2) If an assessor of any county fails to transmit to the department of ((
revenue))
taxation the abstract provided for in RCW
84.48.010, and if a county fails to collect and pay to the state its due proportion of the state tax for any year because of that failure, the department of ((
revenue))
taxation must ascertain what amount of state tax the county failed to collect. The department must certify to the county auditor the amount of state tax the county failed to collect. This sum is due and payable immediately by warrant in favor of the state on the current expense fund of the county.
Sec. 458. RCW
84.48.075 and 2001 c 187 s 24 are each amended to read as follows:
(1) The department of ((revenue))taxation shall annually, prior to the first Monday in September, determine and submit to each assessor a preliminary indicated ratio for each county: PROVIDED, That the department shall establish rules and regulations pertinent to the determination of the indicated ratio, the indicated real property ratio and the indicated personal property ratio: PROVIDED FURTHER, That these rules and regulations may provide that data, as is necessary for said determination, which is available from the county assessor of any county and which has been audited as to its validity by the department, shall be utilized by the department in determining the indicated ratio.
(2) To such extent as is reasonable, the department may define use classes of property for the purposes of determination of the indicated ratio. Such use classes may be defined with respect to property use and may include agricultural, open space, timber and forestlands.
(3) The department shall review each county's preliminary ratio with the assessor, a landowner, or an owner of an intercounty public utility or private car company of that county, if requested by the assessor, a landowner, or an owner of an intercounty public utility or private car company of that county, respectively, between the first and third Mondays of September. Prior to equalization of assessments pursuant to RCW
84.48.080 and after the third Monday of September, the department shall certify to each county assessor the real and personal property ratio for that county.
(4) The department of ((revenue))taxation shall also examine procedures used by the assessor to assess real and personal property in the county, including calculations, use of prescribed value schedules, and efforts to locate all taxable property in the county. If any examination by the department discloses other than market value is being listed on the county assessment rolls of the county by the assessor and, after due notification by the department, is not corrected, the department of ((revenue))taxation shall, in accordance with rules adopted by the department, adjust the ratio of that type of property, which adjustment shall be used for determining the county's indicated ratio.
Sec. 459. RCW
84.48.080 and 2017 3rd sp.s. c 13 s 305 are each amended to read as follows:
(1) Annually during the months of September and October, the department of ((revenue))taxation shall examine and compare the returns of the assessment of the property in the several counties of the state, and the assessment of the property of railroad and other companies assessed by the department, and proceed to equalize the same, so that each county in the state shall pay its due and just proportion of the taxes for state purposes for such assessment year, according to the ratio the valuation of the property in each county bears to the total valuation of all property in the state.
(a) The department shall classify all property, real and personal, and shall raise and lower the valuation of any class of property in any county to a value that shall be equal, so far as possible, to the true and fair value of such class as of January 1st of the current year for the purpose of ascertaining the just amount of tax due from each county for state purposes. In equalizing personal property as of January 1st of the current year, the department shall use valuation data with respect to personal property from the three years immediately preceding the current assessment year in a manner it deems appropriate. Such classification may be on the basis of types of property, geographical areas, or both. For purposes of this section, for each county that has not provided the department with an assessment return by December 1st, the department shall proceed, using facts and information and in a manner it deems appropriate, to estimate the value of each class of property in the county.
(b) The department shall keep a full record of its proceedings and the same shall be published annually by the department.
(2) The department shall levy the state taxes authorized by law. The amount levied in any one year for general state purposes shall not exceed the lawful dollar rate on the dollar of the assessed value of the property of the entire state, which assessed value shall be one hundred percent of the true and fair value of the property in money.
(a) The department shall apportion the amount of tax for state purposes levied under RCW
84.52.065 (1) and (2) by the department, among the several counties, in proportion to the valuation of the taxable property of the county for the year as equalized by the department; however, for purposes of this apportionment, the department shall recompute the previous year's levies imposed under RCW
84.52.065 (1) and (2) and the apportionment thereof to correct for changes and errors in taxable values reported to the department after October 1 of the preceding year and shall adjust the apportioned amount of the current year's state levy under RCW
84.52.065 (1) and (2) for each county by the difference between the apportioned amounts established by the original and revised levy computations for the previous year's levies under RCW
84.52.065 (1) and (2).
(b) For purposes of this section, changes in taxable values mean a final adjustment made by a county board of equalization, the state board of tax appeals, or a court of competent jurisdiction and shall include additions of omitted property, other additions or deletions from the assessment or tax rolls, any assessment return provided by a county to the department subsequent to December 1st, or a change in the indicated ratio of a county. Errors in taxable values mean errors corrected by a final reviewing body.
(3) The department has authority to adopt rules and regulations to enforce obedience to its orders in all matters in relation to the returns of county assessments, the equalization of values, and the apportionment of the state levy by the department.
(4) After the completion of the duties prescribed in this section, the director of the department shall certify the record of the proceedings of the department under this section, the tax levies made for state purposes and the apportionment thereof among the counties, and the certification shall be available for public inspection.
Sec. 460. RCW
84.48.120 and 1994 c 301 s 45 and 1994 c 124 s 33 are each reenacted and amended to read as follows:
It shall be the duty of the assessor of each county, when the assessor shall have received from the state department of ((
revenue))
taxation the assessed valuation of the property of railroad and other companies assessed by the department of ((
revenue))
taxation and apportioned to the county, and placed the same on the tax rolls, and received the report of the department of ((
revenue))
taxation of the amount of taxes levied for state purposes, to compute the required percent on the assessed value of property in the county, and such state taxes shall be extended on the tax rolls. The rates so computed shall not be such as to raise a surplus of more than five percent over the total amount required by the department of ((
revenue))
taxation. Any surplus raised shall be remitted to the state in accordance with RCW
84.56.280.
Sec. 461. RCW
84.48.130 and 1994 c 124 s 34 are each amended to read as follows:
It shall be the duty of the assessor of each county, when the assessor shall have received from the state department of ((revenue))taxation the certificate of the assessed valuation of the property of railroad and/or other companies assessed by the department of ((revenue))taxation and apportioned to the county, and shall have distributed the value so certified, to the several taxing districts in the county entitled to a proportionate value thereof, and placed the same upon the tax rolls of the county, to certify to the county legislative authority and to the officers authorized by law to estimate expenditures and/or levy taxes for any taxing district coextensive with the county, the total assessed value of property in the county as shown by the completed tax rolls, and to certify to the officers authorized by law to estimate expenditures and/or levy taxes for each taxing district in the county not coextensive with the county, the total assessed value of the property in such taxing district.
Sec. 462. RCW
84.48.200 and 1988 c 222 s 26 are each amended to read as follows:
The department of ((revenue))taxation shall make such rules consistent with this chapter as shall be necessary or desirable to permit its effective administration. The rules may provide for changes of venue for the various boards of equalization.
Sec. 463. RCW
84.52.043 and 2017 3rd sp.s. c 13 s 304 are each amended to read as follows:
Within and subject to the limitations imposed by RCW
84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named are as follows:
(1) Levies of the senior taxing districts are as follows: (a) The levies by the state may not exceed the applicable aggregate rate limit specified in RCW
84.52.065 (2) or (4) adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of ((
revenue))
taxation to be used exclusively for the support of the common schools; (b) the levy by any county may not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district may not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town may not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.
(2) The aggregate levies of junior taxing districts and senior taxing districts, other than the state, may not exceed five dollars and ninety cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection do not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW
84.34.230; (d) levies for emergency medical care or emergency medical services imposed under RCW
84.52.069; (e) levies to finance affordable housing for very low-income housing imposed under RCW
84.52.105; (f) the portions of levies by metropolitan park districts that are protected under RCW
84.52.120; (g) levies imposed by ferry districts under RCW
36.54.130; (h) levies for criminal justice purposes under RCW
84.52.135; (i) the portions of levies by fire protection districts and regional fire protection service authorities that are protected under RCW
84.52.125; (j) levies by counties for transit-related purposes under RCW
84.52.140; (k) the portion of the levy by flood control zone districts that are protected under RCW
84.52.816; and (l) levies imposed by a regional transit authority under RCW
81.104.175.
Sec. 464. RCW
84.52.0502 and 2000 c 103 s 29 are each amended to read as follows:
The department of ((revenue))taxation shall adopt such rules consistent with chapter 274, Laws of 1988 as shall be necessary or desirable to permit its effective administration.
Sec. 465. RCW
84.52.063 and 2001 c 187 s 25 are each amended to read as follows:
A rural library district may impose a regular property tax levy in an amount equal to that which would be produced by a levy of fifty cents per thousand dollars of assessed value multiplied by an assessed valuation equal to one hundred percent of the true and fair value of the taxable property in the rural library district, as determined by the department of ((
revenue's))
taxation's indicated county ratio: PROVIDED, That when any county assessor shall find that the aggregate rate of levy on any property will exceed the limitation set forth in RCW
84.52.043 and
84.52.050, as now or hereafter amended, before recomputing and establishing a consolidated levy in the manner set forth in RCW
84.52.010, the assessor shall first reduce the levy of any rural library district, by such amount as may be necessary, but the levy of any rural library district shall not be reduced to less than fifty cents per thousand dollars against the value of the taxable property, as determined by the county, prior to any further adjustments pursuant to RCW
84.52.010. For purposes of this section "regular property tax levy" shall mean a levy subject to the limitations provided for in Article VII, section 2 of the state Constitution and/or by statute.
Sec. 466. RCW
84.52.065 and 2018 c 295 s 1 are each amended to read as follows:
(1) Except as otherwise provided in this section, subject to the limitations in RCW
84.55.010, in each year the state must levy for collection in the following year for the support of common schools of the state a tax of three dollars and sixty cents per thousand dollars of assessed value upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of ((
revenue))
taxation.
(2)(a) In addition to the tax authorized under subsection (1) of this section, the state must levy an additional property tax for the support of common schools of the state.
(i) For taxes levied for collection in calendar years 2018 through 2021, the rate of tax is the rate necessary to bring the aggregate rate for state property tax levies levied under this subsection and subsection (1) of this section to a combined rate of two dollars and forty cents per thousand dollars of assessed value in calendar year 2019 and two dollars and seventy cents per thousand dollars of assessed value in calendar years 2018, 2020, and 2021. The state property tax levy rates provided in this subsection (2)(a)(i) are based upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of ((revenue))taxation.
(ii) For taxes levied for collection in calendar year 2022 and thereafter, the tax authorized under this subsection (2) is subject to the limitations of chapter
84.55 RCW.
(b)(i) Except as otherwise provided in this subsection, all taxes collected under this subsection (2) must be deposited into the state general fund.
(ii) For fiscal year 2019, nine hundred thirty-five million dollars of taxes collected under this subsection (2) must be deposited into the education legacy trust account for the support of common schools.
(3) For taxes levied for collection in calendar years 2019 through 2021, the state property taxes levied under subsections (1) and (2) of this section are not subject to the limitations in chapter
84.55 RCW.
(4) For taxes levied for collection in calendar year 2022 and thereafter, the aggregate rate limit for state property taxes levied under subsections (1) and (2) of this section is three dollars and sixty cents per thousand dollars of assessed value upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of ((revenue))taxation.
(5) For property taxes levied for collection in calendar years 2019 through 2021, the rate of tax levied under subsection (1) of this section is the actual rate that was levied for collection in calendar year 2018 under subsection (1) of this section.
(6) As used in this section, "the support of common schools" includes the payment of the principal and interest on bonds issued for capital construction projects for the common schools.
Sec. 467. RCW
84.55.060 and 1979 ex.s. c 218 s 6 are each amended to read as follows:
The department of ((
revenue))
taxation shall adopt rules relating to the calculation of tax rates and the limitation in RCW
84.55.010, conduct an educational program on this subject, and take any other action necessary to insure compliance with the statutes and rules on this subject.
Sec. 468. RCW
84.55.100 and 1983 c 223 s 1 are each amended to read as follows:
The property tax limitation contained in this chapter shall be determined by the county assessors of the respective counties in accordance with the provisions of this chapter: PROVIDED, That the limitation for any state levy shall be determined by the department of ((revenue))taxation and the limitation for any intercounty rural library district shall be determined by the library district in consultation with the respective county assessors.
Sec. 469. RCW
84.56.025 and 2014 c 13 s 2 are each amended to read as follows:
(1) The interest and penalties for delinquencies on property taxes must be waived by the county treasurer if the notice for these taxes due, as provided in RCW
84.56.050, was not sent to a taxpayer due to error by the county. Where waiver of interest and penalties has occurred, the full amount of interest and penalties must be reinstated if the taxpayer fails to pay the delinquent taxes within thirty days of receiving notice that the taxes are due. Each county treasurer must, subject to guidelines prepared by the department of ((
revenue))
taxation, establish administrative procedures to determine if taxpayers are eligible for this waiver.
(2) In addition to the waiver under subsection (1) of this section, the interest and penalties for delinquencies on property taxes must be waived by the county treasurer under the following circumstances:
(a) The taxpayer fails to make one payment under RCW
84.56.020 by the due date on the taxpayer's personal residence because of hardship caused by the death of the taxpayer's spouse if the taxpayer notifies the county treasurer of the hardship within sixty days of the tax due date; or
(b) The taxpayer fails to make one payment under RCW
84.56.020 by the due date on the taxpayer's parent's or stepparent's personal residence because of hardship caused by the death of the taxpayer's parent or stepparent if the taxpayer notifies the county treasurer of the hardship within sixty days of the tax due date.
(3) In addition to the waivers under subsections (1) and (2) of this section, the county treasurer, at his or her discretion, may waive interest and penalties for delinquencies on property taxes where the taxpayer paid an erroneous amount due to apparent taxpayer error and the taxpayer pays the delinquent taxes within thirty days of receiving notice that the taxes are due.
(4) Before allowing a hardship waiver under subsection (2) of this section, the county treasurer may require a copy of the death certificate along with an affidavit signed by the taxpayer.
Sec. 470. RCW
84.56.290 and 1991 c 245 s 37 are each amended to read as follows:
Whenever any tax shall have been heretofore, or shall be hereafter, canceled, reduced or modified in any final judicial, county board of equalization, state board of tax appeals, or administrative proceeding; or whenever any tax shall have been heretofore, or shall be hereafter canceled by sale of property to any irrigation district under foreclosure proceedings for delinquent irrigation district assessments; or whenever any contracts or leases on public lands shall have been heretofore, or shall be hereafter, canceled and the tax thereon remains unpaid for a period of two years, the director of ((revenue))taxation shall, upon receipt from the county treasurer of a certified copy of the final judgment, order, or decree canceling, reducing, or modifying taxes, or of a certificate from the county treasurer of the cancellation by sale to an irrigation district, or of a certificate from the commissioner of public lands and the county treasurer of the cancellation of public land contracts or leases and nonpayment of taxes thereon, as the case may be, make corresponding entries and corrections on the director's records of the state's portion of reduced or canceled tax.
Upon canceling taxes deemed uncollectible, the county commissioners shall notify the county treasurer of such action, whereupon the county treasurer shall deduct on the treasurer's records the amount of such uncollectible taxes due the various state funds and shall immediately notify the department of ((revenue))taxation of the treasurer's action and of the reason therefor; which uncollectible tax shall not then nor thereafter be due or owing the various state funds and the necessary corrections shall be made by the county treasurer upon the quarterly settlement next following.
When any assessment of property is made which does not appear on the assessment list certified by the county board of equalization to the department of ((revenue))taxation the county assessor shall indicate to the county treasurer the assessments and the taxes due therefrom when the list is delivered to the county treasurer on December 15th. The county treasurer shall then notify the department of ((revenue))taxation of the taxes due the state from the assessments which did not appear on the assessment list certified by the county board of equalization to the department of ((revenue))taxation. The county treasurer shall make proper accounting of all sums collected as either advance tax, compensating or additional tax, or supplemental or omitted tax and shall notify the department of ((revenue))taxation of the amounts due the various state funds according to the levy used in extending such tax, and those amounts shall immediately become due and owing to the various state funds, to be paid to the state treasurer in the same manner as taxes extended on the regular tax roll.
Sec. 471. RCW
84.56.440 and 2014 c 195 s 403 are each amended to read as follows:
(1) The department of ((
revenue))
taxation shall collect the derelict vessel removal fee imposed under RCW
79.100.180 and all ad valorem taxes upon ships and vessels listed with the department in accordance with RCW
84.40.065, and all applicable interest and penalties on such taxes and fees. The taxes and derelict vessel removal fee shall be due and payable to the department on or before the thirtieth day of April and shall be delinquent after that date.
(2) If payment of the tax, derelict vessel removal fee, or both, is not received by the department by the due date, there shall be imposed a penalty of five percent of the amount of the unpaid tax and fee; and if the tax and fee are not received within thirty days after the due date, there shall be imposed a total penalty of ten percent of the amount of the unpaid tax and fee; and if the tax and fee are not received within sixty days after the due date, there shall be imposed a total penalty of twenty percent of the amount of the unpaid tax and fee. No penalty so added shall be less than five dollars.
(3) Delinquent taxes under this section are subject to interest at the rate set forth in RCW
82.32.050 from the date of delinquency until paid. Delinquent derelict vessel removal fees are also subject to interest at the same rate and in the same manner as provided for delinquent taxes under RCW
82.32.050. Interest or penalties collected on delinquent taxes and derelict vessel removal fees under this section shall be paid by the department into the general fund of the state treasury.
(4) If upon information obtained by the department it appears that any ship or vessel required to be listed according to the provisions of RCW
84.40.065 is not so listed, the department shall value the ship or vessel and assess against the owner of the vessel the taxes and derelict vessel removal fees found to be due and shall add thereto interest at the rate set forth in RCW
82.32.050 from the original due date of the tax and fee until the date of payment. The department shall notify the vessel owner by mail of the amount and the same shall become due and shall be paid by the vessel owner within thirty days of the date of the notice. If payment is not received by the department by the due date specified in the notice, the department shall add a penalty of ten percent of the tax and fee found due. A person who willfully gives a false listing or willfully fails to list a ship or vessel as required by RCW
84.40.065 shall be subject to the penalty imposed by RCW
84.40.130(2), which shall be assessed and collected by the department.
(5) Delinquent taxes and fees under this section, along with all penalties and interest thereon, shall be collected by the department according to the procedures set forth in chapter
82.32 RCW for the filing and execution of tax warrants, including the imposition of warrant interest. In the event a warrant is issued by the department for the collection of taxes, derelict vessel removal fees, or both, under this section, the department shall add a penalty of five percent of the amount of the delinquent tax and fee, but not less than ten dollars.
(6) During a state of emergency declared under RCW
43.06.010(12), the department, on its own motion or at the request of any taxpayer affected by the emergency, may grant extensions of the due date of any taxes and fees payable under this section as the department deems proper.
(7) The department of ((
revenue))
taxation must withhold the decals required under RCW
88.02.570(10) for failure to pay the state property tax or derelict vessel removal fee collectible under this section.
Sec. 472. RCW
84.64.050 and 2013 c 221 s 12 are each amended to read as follows:
(1) After the expiration of three years from the date of delinquency, when any property remains on the tax rolls for which no certificate of delinquency has been issued, the county treasurer must proceed to issue certificates of delinquency on the property to the county for all years' taxes, interest, and costs. However, the county treasurer, with the consent of the county legislative authority, may elect to issue a certificate for fewer than all years' taxes, interest, and costs to a minimum of the taxes, interest, and costs for the earliest year.
(2) Certificates of delinquency are prima facie evidence that:
(a) The property described was subject to taxation at the time the same was assessed;
(b) The property was assessed as required by law;
(c) The taxes or assessments were not paid at any time before the issuance of the certificate;
(d) Such certificate has the same force and effect as a lis pendens required under chapter
4.28 RCW.
(3) The county treasurer may include in the certificate of delinquency any assessments which are due on the property and are the responsibility of the county treasurer to collect. However, if the department of ((
revenue))
taxation has previously notified the county treasurer in writing that the property has a lien on it for deferred property taxes, the county treasurer must include in the certificate of delinquency any amounts deferred under chapters
84.37 and
84.38 RCW that remain unpaid, including accrued interest and costs.
(4) The treasurer must file the certificates when completed with the clerk of the court at no cost to the treasurer, and the treasurer must thereupon, with legal assistance from the county prosecuting attorney, proceed to foreclose in the name of the county, the tax liens embraced in such certificates. Notice and summons must be served or notice given in a manner reasonably calculated to inform the owner or owners, and any person having a recorded interest in or lien of record upon the property, of the foreclosure action to appear within thirty days after service of such notice and defend such action or pay the amount due. Either (a) personal service upon the owner or owners and any person having a recorded interest in or lien of record upon the property, or (b) publication once in a newspaper of general circulation, which is circulated in the area of the property and mailing of notice by certified mail to the owner or owners and any person having a recorded interest in or lien of record upon the property, or, if a mailing address is unavailable, personal service upon the occupant of the property, if any, is sufficient. If such notice is returned as unclaimed, the treasurer must send notice by regular first-class mail. The notice must include the legal description on the tax rolls, the year or years for which assessed, the amount of tax and interest due, and the name of owner, or reputed owner, if known, and the notice must include the local street address, if any, for informational purposes only. The certificates of delinquency issued to the county may be issued in one general certificate in book form including all property, and the proceedings to foreclose the liens against the property may be brought in one action and all persons interested in any of the property involved in the proceedings may be made codefendants in the action, and if unknown may be therein named as unknown owners, and the publication of such notice is sufficient service thereof on all persons interested in the property described therein, except as provided above. The person or persons whose name or names appear on the treasurer's rolls as the owner or owners of the property must be considered and treated as the owner or owners of the property for the purpose of this section, and if upon the treasurer's rolls it appears that the owner or owners of the property are unknown, then the property must be proceeded against, as belonging to an unknown owner or owners, as the case may be, and all persons owning or claiming to own, or having or claiming to have an interest therein, are hereby required to take notice of the proceedings and of any and all steps thereunder. However, prior to the sale of the property, the treasurer must order or conduct a title search of the property to be sold to determine the legal description of the property to be sold and the record title holder, and if the record title holder or holders differ from the person or persons whose name or names appear on the treasurer's rolls as the owner or owners, the record title holder or holders must be considered and treated as the owner or owners of the property for the purpose of this section, and are entitled to the notice provided for in this section. Such title search must be included in the costs of foreclosure.
(5) If the title search required by subsection (4) of this section reveals a lien in favor of the state for deferred taxes on the property under RCW
84.37.070 or
84.38.100 and such deferred taxes are not already included in the certificate of delinquency, the county treasurer must issue an amended certificate of delinquency on the property to include the outstanding amount of deferred taxes, including accrued interest. The amended certificate of delinquency must be filed with the clerk of the court as provided in subsection (4) of this section.
(6) The county treasurer may not sell property that is eligible for deferral of taxes under chapter
84.38 RCW but must require the owner of the property to file a declaration to defer taxes under chapter
84.38 RCW.
Sec. 473. RCW
84.68.120 and 2013 c 23 s 379 are each amended to read as follows:
Upon the filing of the petition with the county assessor that officer shall proceed forthwith to conduct such investigation as may be necessary to ascertain and determine whether or not the assessment in question was erroneous or whether or not the tax was incorrectly extended upon the tax rolls and if he or she finds there is probable cause to believe that the property was erroneously assessed, and that such erroneous assessment was due to an error in description, double assessment, or manifest error in assessment which does not involve a revaluation of the property, or that the tax was incorrectly extended upon the tax rolls, he or she shall endorse his or her findings upon the petition, and thereupon within ten days after the filing of the petition by the taxpayer forward the same to the county treasurer. If the assessor's findings be in favor of cancellation or reduction or correction he or she shall include therein a statement of the amount to which he or she recommends that the assessment and tax be reduced. It shall be the duty of the county treasurer, upon whom a petition with endorsed findings is served, as in RCW
84.68.110 through
84.68.150 provided, to endorse thereon a statement whether or not the tax against which complaint is made has in fact been paid and, if paid, the amount thereof, whereupon the county treasurer shall immediately transmit the petition to the prosecuting attorney and the prosecuting attorney shall make such investigation as he or she deems necessary and, within ten days after receipt of the petition and findings by him or her, transmit the same to the state department of ((
revenue))
taxation with his or her recommendation in respect to the granting or denial of the petition.
Sec. 474. RCW
84.68.130 and 1975 1st ex.s. c 278 s 209 are each amended to read as follows:
Upon receipt of the petition, findings and recommendations the state department of ((revenue))taxation shall proceed to consider the same, and it may require evidence to be submitted and make such investigation as it deems necessary and for such purpose the department of ((revenue))taxation shall be empowered to subpoena witnesses in order that all material and relevant facts may be ascertained. Upon the conclusion of its consideration of the petition and within thirty days after receipt thereof, the department of ((revenue))taxation shall enter an order either granting or denying the petition and if the petition be granted the department of ((revenue))taxation may order the assessment canceled or reduced or the extended tax corrected upon the tax rolls in any amount it deems proper but in no event to exceed the amount of reduction or correction recommended by the county assessor.
Sec. 475. RCW
84.68.140 and 1989 c 378 s 31 are each amended to read as follows:
Certified copies of the order of the department of ((
revenue))
taxation shall be forwarded to the county assessor, the county auditor and the taxpayer, and the taxpayer shall immediately be entitled to a refund of the difference, if any, between the tax already paid and the canceled or reduced or corrected tax based upon the order of the department with interest on such amount from the date of payment of the original tax. Upon receipt of the order of the department the county auditor shall draw a warrant against the county tax refund fund in the amount of any tax reduction so ordered, plus interest at the rate specified in RCW
84.69.100 to the date such warrant is issued, and such warrant shall be paid by the county treasurer out of any moneys on hand in said fund. If no funds are available in the county tax refund fund for the payment of such warrant the warrant shall bear interest and shall be callable under such conditions as are provided by law for county warrants and such interest, if any, shall also be paid out of said fund. The order of the department shall for all purposes be considered as a judgment against the county tax refund fund and the obligation thereof shall be discharged in the same manner as provided by law for the discharge of judgments against the county for excessive taxes under the provisions of RCW
84.68.010 through
84.68.070 or any act amendatory thereof.
Sec. 476. RCW
84.69.050 and 2003 c 23 s 6 are each amended to read as follows:
The part of the refund representing amounts paid to the state, including interest as provided in RCW
84.69.100, shall be paid from the county general fund and the department of ((
revenue))
taxation shall, upon the next succeeding settlement with the county, certify this amount refunded to the county: PROVIDED, That when a refund of tax funds pursuant to state levies is required, the department of ((
revenue))
taxation shall authorize adjustment procedures whereby counties may deduct from property tax remittances to the state the amount required to cover the state's portion of the refunds.
Sec. 477. RCW
84.69.100 and 2002 c 168 s 12 are each amended to read as follows:
Unless otherwise stated, refunds of taxes made pursuant to RCW
84.69.010 through
84.69.090 shall include interest from the date of collection of the portion refundable: PROVIDED, That refunds on a state, county, or district-wide basis shall not commence to accrue interest until six months following the date of the final order of the court. No written protest by individual taxpayers need to be filed to receive a refund on a state, county, or district-wide basis. The rate of interest shall be the equivalent coupon issue yield (as published by the Board of Governors of the Federal Reserve System) of the average bill rate for twenty-six week treasury bills as determined at the first bill market auction conducted after June 30th of the calendar year preceding the date the taxes were paid. The department of ((
revenue))
taxation shall adopt this rate of interest by rule.
Sec. 478. RCW
84.72.010 and 1975 1st ex.s. c 278 s 211 are each amended to read as follows:
The state treasurer is hereby authorized and directed to receive any moneys that may be paid to the state by the United States or any agency thereof in lieu of ad valorem property taxes, and to transfer the same to the respective county treasurers in compliance with apportionments made by the state department of ((revenue))taxation; and the state treasurer shall immediately notify the department of ((revenue))taxation of the receipt of any such payment.
Sec. 479. RCW
84.72.020 and 1975 1st ex.s. c 278 s 212 are each amended to read as follows:
Any such moneys so paid to the state treasurer shall be apportioned to the state and to the taxing districts thereof that would be entitled to share in the property taxes in lieu of which such payments are made in the same proportion that the state and such taxing units would have shared in such property taxes if the same had been levied. The basis of apportionment shall be the same as that of property taxes first collectible in the year in which such lieu payment is made: PROVIDED, That if any such lieu payment cannot be so apportioned the apportionment shall be made on such basis as the department of ((revenue))taxation shall deem equitable and proper.
Sec. 480. RCW
84.72.030 and 1975 1st ex.s. c 278 s 213 are each amended to read as follows:
The department of ((
revenue))
taxation may indicate either the exact apportionment to taxing units or it may direct in general terms that county treasurers shall apportion any such lieu payment in the manner provided in RCW
84.72.020. In either event the department of ((
revenue))
taxation shall certify to the state treasurer the basis of apportionment and the state treasurer shall thereupon forthwith transmit any such lieu payment, together with a statement of the basis of apportionment, to the county treasurer in accordance with such certification.
Sec. 481. RCW
88.02.370 and 2015 c 148 s 1 are each amended to read as follows:
(1) A vessel owner shall notify the department in writing within five business days after a vessel is or has been:
(a) Sold;
(b) Given as a gift to another person;
(c) Traded, either privately or to a vessel dealer;
(d) Donated to charity;
(e) Turned over to an insurance company or wrecking yard; or
(f) Disposed of.
(2) A report of sale is properly filed if it is received by the department within five business days after the date of sale or transfer and it includes:
(a) The date of sale or transfer;
(b) The owner's name and address;
(c) The name and address of the person acquiring the vessel;
(d) The vessel hull identification number and vessel registration number; and
(e) A date stamp by the department showing it was received on or before the fifth business day after the date of sale or transfer.
(3) The department shall:
(a) Provide or approve reports of sale forms;
(b) Provide a system enabling a vessel owner to submit reports of sale electronically;
(c) Immediately update the department's vessel record when a report of sale has been filed;
(d) Provide instructions on release of interest forms that allow the seller of a vessel to release their interest in a vessel at the same time a financial institution, as defined in RCW
30A.22.040, releases its lien on the vessel; and
(e) Send a report to the department of ((revenue))taxation that lists vessels for which a report of sale has been received but no transfer of ownership has taken place. The department shall send the report once each quarter.
Sec. 482. RCW
88.02.420 and 2014 c 195 s 501 are each amended to read as follows:
(1) A moorage provider that provides long-term moorage must obtain the following information and documentation from persons entering into long-term moorage agreements with the moorage provider:
(a) The name of the legal owner of the vessel;
(b) A local contact person and that person's address and telephone number, if different than the owner;
(c) The owner's address and telephone number;
(d) The vessel's hull identification number;
(e) If applicable, the vessel's coast guard registration;
(f) The vessel's home port;
(g) The date on which the moorage began;
(h) The vessel's country or state of registration and registration number; and
(i) Proof of vessel registration, a written statement of the lessee's intent to register a vessel, or an affidavit in a form and manner approved by the department certifying that the vessel is exempt from state vessel registration requirements as provided by RCW
88.02.570.
(2) For moorage agreements entered into effective on or after July 1, 2014, a long-term moorage agreement for vessels not registered in this state must include, in a form and manner approved by the department and the department of ((
revenue))
taxation, notice of state vessel registration requirements as provided by this chapter and tax requirements as provided by chapters
82.08, 82.12, and
82.49 RCW and listing requirements as provided by RCW
84.40.065.
(3) A moorage provider must maintain records of the information and documents required under this section for at least two years. Upon request, a moorage provider must:
(a) Permit any authorized agent of a requesting agency to:
(i) Inspect the moorage facility for vessels that are not registered as required by this chapter or listed as required under RCW
84.40.065; and
(ii) Inspect and copy records identified in subsection (1) of this section for vessels that the requesting agency determines are not properly registered or listed as required by law; or
(b) Provide to the requesting agency:
(i) Information as provided in subsection (1)(a), (c), (d), and (e) of this section; and
(ii) Information as provided in subsection (1)(b), (f), (g), (h), and (i) of this section for those vessels that the requesting agency subsequently determines are not registered as required by this chapter or listed as required under RCW
84.40.065.
(4) Requesting agencies must coordinate their requests to ensure that a moorage provider does not receive more than two requests per calendar year. For the purpose of enforcing vessel registration and vessel listing requirements, requesting agencies may share the results of information requests with each other.
(5) The information required to be collected under this section must be collected at the time the long-term moorage agreement is entered into and at the time of any renewals of the agreement. The moorage provider is not responsible for updating any changes in the information that occurs after the initial agreement is entered into or in the time period between agreement renewals.
(6) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Long-term moorage" means moorage provided for more than thirty consecutive days, unless the moorage is for a vessel that has been taken into custody under RCW
79.100.040.
(b) "Moorage facility" means any properties or facilities located in this state that are used for the moorage of vessels and are owned or operated by a moorage provider.
(c) "Moorage facility operator" has the same meaning as defined in RCW
53.08.310.
(d) "Moorage provider" means any public or private entity that owns or operates any moorage facility, including a moorage facility operator, private moorage facility operator, the state of Washington, or any other person.
(e) "Private moorage facility operator" has the same meaning as defined in RCW
88.26.010.
(f) "Requesting agency" means the department, the department of ((revenue))taxation, or the department of natural resources.
Sec. 483. RCW
88.02.570 and 2016 c 114 s 2 are each amended to read as follows:
Vessel registration is required under this chapter except for the following:
(1) A military vessel owned by the United States government;
(2) A public vessel owned by the United States government, unless the vessel is a type used for recreation;
(3) A vessel clearly identified as being:
(a) Owned by a state, county, or city; and
(b) Used primarily for governmental purposes;
(4) A vessel either (a) registered or numbered under the laws of a country other than the United States or (b) having a valid United States customs service cruising license issued pursuant to 19 C.F.R. Sec. 4.94. Either vessel is exempt from registration only for the first sixty days of use on Washington state waters. On or before the sixty-first day of use on Washington state waters, any vessel in the state under this subsection must obtain a vessel visitor permit as required under RCW
88.02.610;
(5) A vessel that is currently registered or numbered under the laws of the state of principal operation or that has been issued a valid number under federal law. However, either vessel must be registered in Washington state if the state of principal operation changes to Washington state by the sixty-first day after the vessel arrives in Washington state;
(6) A vessel owned by a nonresident if:
(a) The vessel is located upon the waters of this state exclusively for repairs, alteration, or reconstruction, or any testing related to these services;
(b) An employee of the facility providing these services is on board the vessel during any testing; and
(c) The nonresident files an affidavit with the department of ((revenue))taxation by the sixty-first day verifying that the vessel is located upon the waters of this state for these services.
The nonresident shall continue to file an affidavit every sixty days thereafter, as long as the vessel is located upon the waters of this state exclusively for repairs, alteration, reconstruction, or testing;
(7) A vessel equipped with propulsion machinery of less than ten horsepower that:
(a) Is owned by the owner of a vessel for which a valid vessel number has been issued;
(b) Displays the number of that numbered vessel followed by the suffix "1" in the manner prescribed by the department; and
(c) Is used as a tender for direct transportation between the numbered vessel and the shore and for no other purpose;
(8) A vessel under sixteen feet in overall length that has no propulsion machinery of any type or that is not used on waters subject to the jurisdiction of the United States or on the high seas beyond the territorial seas for vessels owned in the United States and are powered by propulsion machinery of ten or less horsepower;
(9) A vessel with no propulsion machinery of any type for which the primary mode of propulsion is human power;
(10) A vessel primarily engaged in commerce that has or is required to have a valid marine document as a vessel of the United States. A commercial vessel that the department of ((revenue))taxation determines has the external appearance of a vessel that would otherwise be required to register under this chapter, must display decals issued annually by the department of ((revenue))taxation that indicate the vessel's exempt status;
(11) A vessel primarily engaged in commerce that is owned by a resident of a country other than the United States;
(12) A vessel owned by a nonresident natural person brought into the state for use or enjoyment while temporarily within the state for not more than six months in any continuous twelve-month period that (a) is currently registered or numbered under the laws of the state of principal use or (b) has been issued a valid number under federal law. This type of vessel is exempt from registration only for the first sixty days of use on Washington state waters. On or before the sixty-first day of use on Washington state waters, any vessel under this subsection must obtain a nonresident vessel permit as required under RCW
88.02.620;
(13) A vessel used in this state by a nonresident individual possessing a valid use permit issued under RCW
82.08.700 or
82.12.700;
(14) A vessel held for sale by any licensed dealer; and
(15) A vessel with propulsion machinery that draws two hundred fifty watts or less and propels the vessel no faster than ten miles per hour and is not used on waters subject to the jurisdiction of the United States or on the high seas beyond the territorial seas for vessels owned in the United States.
Sec. 484. RCW
88.26.020 and 2013 c 291 s 41 are each amended to read as follows:
(1) Any private moorage facility operator may take reasonable measures, including the use of chains, ropes, and locks, or removal from the water, to secure vessels within the private moorage facility so that the vessels are in the possession and control of the operator and cannot be removed from the facility. These procedures may be used if an owner mooring or storing a vessel at the facility fails, after being notified that charges are owing and of the owner's right to commence legal proceedings to contest that such charges are owing, to pay charges owed or to commence legal proceedings. Notification shall be by two separate letters, one sent by first-class mail and one sent by registered mail to the owner and any lienholder of record at the last known address. In the case of a transient vessel, or where no address was furnished by the owner, the operator need not give notice prior to securing the vessel. At the time of securing the vessel, an operator shall attach to the vessel a readily visible notice. The notice shall be of a reasonable size and shall contain the following information:
(a) The date and time the notice was attached;
(b) A statement that if the account is not paid in full within ninety days from the time the notice is attached the vessel may be sold at public auction to satisfy the charges; and
(c) The address and telephone number where additional information may be obtained concerning release of the vessel.
After a vessel is secured, the operator shall make a reasonable effort to notify the owner and any lienholder of record by registered mail in order to give the owner the information contained in the notice.
(2) A private moorage facility operator, at his or her discretion, may move moored vessels ashore for storage within properties under the operator's control or for storage with a private person under their control as bailees of the private moorage facility, if the vessel is, in the opinion of the operator, a nuisance, in danger of sinking or creating other damage, or is owing charges. The costs of any such procedure shall be paid by the vessel's owner.
(3) If a vessel is secured under subsection (1) of this section or moved ashore under subsection (2) of this section, the owner who is obligated to the private operator for charges may regain possession of the vessel by:
(a) Making arrangements satisfactory with the operator for the immediate removal of the vessel from the facility or for authorized moorage; and
(b) Making payment to the operator of all charges, or by posting with the operator a sufficient cash bond or other acceptable security, to be held in trust by the operator pending written agreement of the parties with respect to payment by the vessel owner of the amount owing, or pending resolution of the matter of the charges in a civil action in a court of competent jurisdiction. After entry of judgment, including any appeals, in a court of competent jurisdiction, or after the parties reach agreement with respect to payment, the trust shall terminate and the operator shall receive so much of the bond or other security as agreed, or as is necessary, to satisfy any judgment, costs, and interest as may be awarded to the operator. The balance shall be refunded immediately to the owner at the last known address.
(4) If a vessel has been secured by the operator under subsection (1) of this section and is not released to the owner under the bonding provisions of this section within ninety days after notifying or attempting to notify the owner under subsection (1) of this section, the vessel is conclusively presumed to have been abandoned by the owner.
(5) If a vessel moored or stored at a private moorage facility is abandoned, the operator may authorize the public sale of the vessel by authorized personnel, consistent with this section, to the highest and best bidder for cash as follows:
(a) Before the vessel is sold, the vessel owner and any lienholder of record shall be given at least twenty days' notice of the sale in the manner set forth in subsection (1) of this section if the name and address of the owner is known. The notice shall contain the time and place of the sale, a reasonable description of the vessel to be sold, and the amount of charges owed with respect to the vessel. The notice of sale shall be published at least once, more than ten but not more than twenty days before the sale, in a newspaper of general circulation in the county in which the facility is located. This notice shall include the name of the vessel, if any, the last known owner and address, and a reasonable description of the vessel to be sold. The operator may bid all or part of its charges at the sale and may become a purchaser at the sale.
(b) Before the vessel is sold, any person seeking to redeem an impounded vessel under this section may commence a lawsuit in the superior court for the county in which the vessel was impounded to contest the validity of the impoundment or the amount of charges owing. This lawsuit must be commenced within sixty days of the date the notification was provided under subsection (1) of this section, or the right to a hearing is deemed waived and the owner is liable for any charges owing the operator. In the event of litigation, the prevailing party is entitled to reasonable attorneys' fees and costs.
(c) The proceeds of a sale under this section shall be applied first to the payment of any liens superior to the claim for charges, then to payment of the charges, then to satisfy any other liens on the vessel in the order of their priority. The balance, if any, shall be paid to the owner. If the owner cannot in the exercise of due diligence be located by the operator within one year of the date of the sale, the excess funds from the sale shall revert to the department of ((
revenue))
taxation under chapter
63.29 RCW. If the sale is for a sum less than the applicable charges, the operator is entitled to assert a claim for deficiency, however, the deficiency judgment shall not exceed the moorage fees owed for the previous six-month period.
(d) In the event no one purchases the vessel at a sale, or a vessel is not removed from the premises or other arrangements are not made within ten days of sale, title to the vessel will revert to the operator.
(e) Either a minimum bid may be established or a letter of credit may be required from the buyer, or both, to discourage the future abandonment of the vessel.
(6) The rights granted to a private moorage facility operator under this section are in addition to any other legal rights an operator may have to hold and sell a vessel and in no manner does this section alter those rights, or affect the priority of other liens on a vessel.
Sec. 485. RCW
89.08.440 and 1997 c 295 s 3 are each amended to read as follows:
(1) For the purpose of identifying property that may qualify for the exemption provided under RCW
84.36.255, each conservation district shall develop and maintain a list of best management practices that qualify for the exemption.
(2) Each conservation district shall ensure that the appropriate forms approved by the department of ((
revenue))
taxation are made available to property owners who may qualify for the exemption under RCW
84.36.255 and shall certify claims for exemption as provided in RCW
84.36.255(3).
Sec. 486. RCW
90.76.010 and 2013 c 144 s 53 are each amended to read as follows:
(1) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(a) "Department" means the department of ecology.
(b) "Director" means the director of the department.
(c) "Facility compliance tag" means a marker, constructed of metal, plastic, or other durable material, that clearly identifies all qualifying underground storage tanks on the particular site for which it is issued.
(d) "Federal act" means the federal resource conservation and recovery act, as amended (42 U.S.C. Sec. 6901, et seq.).
(e) "Federal regulations" means the underground storage tanks regulations (40 C.F.R. Secs. 280 and 281) adopted by the United States environmental protection agency under the federal act.
(f) "License" means the business license underground storage tank endorsement issued by the department of ((
revenue))
taxation under chapter
19.02 RCW.
(g) "Underground storage tank compliance act of 2005" means Title XV and subtitle B of P.L. 109-58 (42 U.S.C. Sec. 15801 et seq.) which have amended the federal resource conservation and recovery act's subtitle I.
(h) "Underground storage tank system" means an underground storage tank, connected underground piping, underground ancillary equipment, and containment system, if any.
(2) Except as provided in this section and any rules adopted by the department under this chapter, the definitions contained in the federal regulations apply to the terms in this chapter.
Sec. 487. RCW
90.76.020 and 2013 c 144 s 54 are each amended to read as follows:
(1) The department must adopt rules establishing requirements for all underground storage tanks that are regulated under the federal act, taking into account the various classes or categories of tanks to be regulated. The rules must be consistent with and no less stringent than the federal regulations and the underground storage tank compliance act of 2005 and consist of requirements for the following:
(a) New underground storage tank system design, construction, installation, and notification;
(b) Upgrading existing underground storage tank systems;
(c) General operating requirements;
(d) Release detection;
(e) Release reporting;
(f) Out-of-service underground storage tank systems and closure;
(g) Financial responsibility for underground storage tanks containing regulated substances; and
(h) Groundwater protection measures, including secondary containment and monitoring for installation or replacement of all underground storage tank systems or components, such as tanks and piping, installed after July 1, 2007, and under dispenser spill containment for installation or replacement of all dispenser systems installed after July 1, 2007.
(2) The department must adopt rules:
(a) Establishing physical site criteria to be used in designating local environmentally sensitive areas;
(b) Establishing procedures for local government application for this designation; and
(c) Establishing procedures for local government adoption and department approval of rules more stringent than the statewide standards in these designated areas.
(3) The department must establish by rule an administrative and enforcement program that is consistent with and no less stringent than the program required under the federal regulations in the areas of:
(a) Compliance monitoring, including procedures for recordkeeping and a program for systematic inspections;
(b) Enforcement;
(c) Public participation;
(d) Information sharing;
(e) Owner and operator training; and
(f) Delivery prohibition for underground storage tank systems or facilities that are determined by the department to be ineligible to receive regulated substances.
(4) The department must establish a program that provides for the annual licensing of underground storage tanks. The license must take the form of a tank endorsement on the facility's annual business license issued by the department of ((
revenue))
taxation under chapter
19.02 RCW. A tank is not eligible for a license unless the owner or operator can demonstrate compliance with the requirements of this chapter and the annual tank fees have been remitted. The department may revoke a tank license if a facility is not in compliance with this chapter, or any rules adopted under this chapter. The business license must be displayed by the tank owner or operator in a location clearly identifiable.
(5)(a) The department must issue a one-time "facility compliance tag" to underground storage tank facilities that have installed the equipment required to meet corrosion protection, spill prevention, overfill prevention, leak detection standards, have demonstrated financial responsibility, and have paid annual tank fees. The facility must continue to maintain compliance with corrosion protection, spill prevention, overfill prevention, and leak detection standards, financial responsibility, and have remitted annual tank fees to display a facility compliance tag. The facility compliance tag must be displayed on or near the fire emergency shutoff device, or in the absence of such a device in close proximity to the fill pipes and clearly identifiable to persons delivering regulated substance to underground storage tanks.
(b) The department may revoke a facility compliance tag if a facility is not in compliance with the requirements of this chapter, or any rules adopted under this chapter.
(6) The department may place a red tag on a tank at a facility if the department determines that the owner or operator is not in compliance with this chapter or the rules adopted under this chapter regarding the compliance requirements related to that tank. Removal of a red tag without authorization from the department is a violation of this chapter.
(7) The department may establish programs to certify persons who install or decommission underground storage tank systems or conduct inspections, testing, closure, cathodic protection, interior tank lining, corrective action, site assessments, or other activities required under this chapter. Certification programs must be designed to ensure that each certification will be effective in all jurisdictions of the state.
(8) When adopting rules under this chapter, the department must consult with the state building code council to ensure coordination with the building and fire codes adopted under chapter
19.27 RCW.
NEW SECTION. Sec. 488. Sections 269, 270, and 272 of this act take effect January 1, 2022.
NEW SECTION. Sec. 489. Section 402 of this act takes effect December 31, 2020.
NEW SECTION. Sec. 490. Section 483 of this act takes effect July 1, 2026.
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