H-0146.2 _______________________________________________
HOUSE BILL 1621
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Representatives Mitchell, Nelson, Franklin, Ferguson, Haugen, Cooper, Rayburn, Roland, Wood, Wynne, Nealey, Zellinsky, Ogden, Ballard, Tate, Winsley, Paris, Forner, D. Sommers, Brough, Wilson and Leonard.
Read first time February 4, 1991. Referred to Committee on Housing\Revenue.
AN ACT Relating to sales and use tax exemptions on the construction of multifamily rental housing; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 82.08 RCW to read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to the retail sale of building materials used in the remodeling, rehabilitation, or new construction of multifamily residential structures or to the labor used to incorporate such building materials into real estate. In order to qualify for the sales tax exemption under this section, the residential structure must meet the following requirements:
(a) The structure must be located in Washington.
(b) The structure must be owned by a nonprofit organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW.
(c) The structure must contain two or more residential rental dwelling units.
(d) Twenty percent or more of the units in the project must be occupied by tenants whose incomes are at or below fifty percent of the median family income, adjusted for household size, for the county where the project is located or at least forty percent of the units in the project must be occupied by tenants whose incomes are at or below sixty percent of the median family income, adjusted for household size, for the county where the project is located.
(e) The gross rent charged to tenants in dwelling units described in (d) of this subsection shall not exceed fifteen percent of the area median income, adjusted for household size, for the county where the project is located. As used in this subsection (1)(e), gross rent is considered to include all utilities, other than telephone expenses, but does not include payments under a federal, state, or local rent subsidy program designed to make the dwelling unit in the structure affordable to low-income households.
(2) Application for the exemption granted by this section must be made prior to the purchase of the building materials. The application shall be made to the department of community development in a form and manner prescribed by the department of revenue and department of community development. The department of revenue, with the approval of the department of community development, shall adopt rules specifying the administrative procedures applicable to applicants for the tax exemption under this section, the form and manner in which the application shall be filed, and the information to be contained therein.
(3) This section shall expire on January 1, 2001, unless extended by law for an additional period of time.
NEW SECTION. Sec. 2. A new section is added to chapter 82.12 RCW to read as follows:
(1) The provisions of this chapter shall not apply in respect to the use of building materials used in the remodeling, rehabilitation, or new construction of multifamily residential structures or to the labor used to incorporate such building materials into real estate. In order to qualify for the sales tax exemption under this section, the residential structure must meet the following requirements:
(a) The structure must be located in Washington.
(b) The structure must be owned by a nonprofit organization eligible to receive assistance through the Washington housing trust fund created in chapter 43.185 RCW.
(c) The structure must contain two or more residential rental dwelling units.
(d) Twenty percent or more of the units in the project must be occupied by tenants whose incomes are at or below fifty percent of the median family income, adjusted for household size, for the county where the project is located or at least forty percent of the units in the project must be occupied by tenants whose incomes are at or below sixty percent of the median family income, adjusted for household size, for the county where the project is located.
(e) The gross rent charged to tenants in dwelling units described in (d) of this subsection shall not exceed fifteen percent of the area median income, adjusted for household size, for the county where the project is located. As used in this subsection (1)(e), gross rent is considered to include all utilities, other than telephone expenses, but does not include payments under a federal, state, or local rent subsidy program designed to make the dwelling unit in the structure affordable to low-income households.
(2) Application for the exemption granted by this section must be made prior to the use of the building materials. The application shall be made to the department of community development in a form and manner prescribed by the department of revenue and department of community development. The department of revenue, with the approval of the department of community development, shall adopt rules specifying the administrative procedures applicable to applicants for the tax exemption under this section, the form and manner in which the application shall be filed, and the information to be contained therein.
(3) This section shall expire on January 1, 2001, unless extended by law for an additional period of time.