H-3586.1          _______________________________________________

                                  HOUSE BILL 2401

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State of Washington              54th Legislature             1996 Regular Session

By Representatives Pennington, Schoesler, Thompson and Mulliken

Read first time 01/10/96.  Referred to Committee on Finance.

Exempting insurance replacement purchases from sales and use taxes.

     AN ACT Relating to excise taxation of replacements, repairs, and cleaning for insured losses; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an effective date.

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:

     The tax levied by RCW 82.08.020 shall not apply to sales of tangible personal property, labor, or services purchased for replacement, repair, or cleaning of property as a result of an insured loss, to the extent that the selling price is paid from insurance proceeds received for the insured loss.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.12 RCW to read as follows:

     The provisions of this chapter shall not apply in respect to the use of tangible personal property for replacement, repair, or cleaning of property as a result of an insured loss, to the extent that the total value of the articles used does not exceed the insurance proceeds received for the insured loss.

NEW SECTION. Sec. 3.  This act shall take effect July 1, 1996.

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