Z-1316.2          _______________________________________________

                                  HOUSE BILL 2594

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Pennington, Morris, McMorris, Sheldon, Boldt, Linville, Hymes, Goldsmith and Thompson; by request of Department of Revenue

Read first time 01/15/96.  Referred to Committee on Finance.

Providing a sales and use tax exemption for carbon used in aluminum refining.

     AN ACT Relating to sales and use taxation of carbon that becomes an ingredient or component of anodes or cathodes used in producing aluminum for sale; 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 carbon, petroleum coke, coal tar, pitch, and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale.

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 carbon, petroleum coke, coal tar, pitch, and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale.

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

                                    --- END ---