5201-S AMS HARG WILS 04

5201-S AMS HARG WILS 04

SSB 5201 - S Amd - 163

BySenators Hargrove, Rinehart, Bauer, Gaspard, Snyder, Owen, Quigley and Spanel

ADOPTED 3/13/95; RECONSIDERED/WITHDRAWN; DIVISION 24-23; 3/14/95

On page 10, after line 14, strike all of section 8 and insert the following:

"Sec. 8. RCW 82.60.065 and 1994 1st sp.s. c 1 s 6 are each amended to read as follows:

Except as provided in RCW 82.60.070:

(1) Taxes deferred under this chapter on the sale or use of labor that is directly used in the construction of an investment project for which a deferral has been granted under this chapter after June 11, 1986, and prior to July 1, 1994, need not be repaid.

(2) Taxes deferred under this chapter on an investment project for which a deferral has been granted under this chapter after June 30, 1994, need not be repaid.

(3) Taxes deferred under this chapter need not be repaid on machinery and equipment, and sales of or charges made for labor and services, of the type which qualifies for exemption under section 2 or 3 of this act to the extent the taxes have not been repaid before the effective date of this act.

Sec. 9. RCW 82.60.070 and 1994 1st sp.s. c 1 s 5 are each amended to read as follows:

(1) Each recipient of a deferral granted under this chapter prior to July 1, 1994, shall submit a report to the department on December 31st of each year during the repayment period until the tax deferral is repaid. Each recipient of a deferral granted under this chapter after June 30, 1994, shall submit a report to the department on December 31st of the year in which the investment project is certified by the department as having been operationally completed, and on December 31st of each of the seven succeeding calendar years. The report shall contain information, as required by the department, from which the department may determine whether the recipient is meeting the requirements of this chapter. If the recipient fails to submit a report or submits an inadequate report, the department may declare the amount of deferred taxes outstanding to be immediately assessed and payable.

(2) If, on the basis of a report under this section or other information, the department finds that an investment project is not eligible for tax deferral under this chapter for reasons other than failure to create the required number of qualified employment positions, the amount of deferred taxes outstanding for the project shall be immediately due.

(3) If, on the basis of a report under this section or other information, the department finds that an investment project for which a deferral has been granted under this chapter prior to July 1, 1994, has been operationally complete for three years and has failed to create the required number of qualified employment positions, the department shall assess interest, but not penalties, on the deferred taxes for the project. The interest shall be assessed at the rate provided for delinquent excise taxes, shall be assessed retroactively to the date of deferral, and shall accrue until the deferred taxes are repaid.

(4) If, on the basis of a report under this section or other information, the department finds that an investment project for which a deferral has been granted under this chapter after June 30, 1994, has been operationally complete for three years and has failed to create the required number of qualified employment positions, the amount of taxes not eligible for deferral shall be immediately due. The department shall assess interest at the rate provided for delinquent excise taxes, but not penalties, retroactively to the date of deferral.

(5) If, on the basis of a report under this section or other information, the department finds that an investment project qualifying for deferral under RCW 82.60.040(1) (b) or (c) has failed to comply with any requirement of RCW 82.60.045 for any calendar year for which reports are required under subsection (1) of this section, twelve and one-half percent of the amount of deferred taxes shall be immediately due. The department shall assess interest at the rate provided for delinquent excise taxes, but not penalties, retroactively to the date of deferral.

(6) Notwithstanding any other subsection of this section, deferred taxes need not be repaid on machinery and equipment, and sales of or charges made for labor and services, of the type which qualifies for exemption under section 2 or 3 of this act to the extent the taxes have not been repaid before the effective date of this act."

Renumber the sections consecutively and correct any internal references accordingly

SSB 5201 - S Amd - 200

BySenator s Hargrove, Rinehart, Bauer, Gaspard, Snyder, Owen, Quigley and Spanel

ADOPTED 3/13/95; RECONSIDERED/WITHDRAWN; DIVISION 24-23; 3/14/95

On page 1, line 4 of the title, before "82.60.070" insert "82.60.065,"