H-4336.1          _______________________________________________

                                  HOUSE BILL 2833

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Chandler and Mulliken

Read first time 01/22/96.  Referred to Committee on Finance.

Providing sales and use tax exemptions for qualified investments in existing ski areas.

     AN ACT Relating to sales and use tax exemptions for qualified investments in existing ski areas; 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:

     (1) The tax levied by RCW 82.08.020 shall not apply to sales of machinery and equipment used for qualified investments in existing ski areas, or to sales of or charges made for labor and services rendered in respect to qualified investments in existing ski areas, but only when the purchaser provides the seller with an exemption certificate in a form and manner prescribed by the department by rule, and the purchaser provides the department with a duplicate of the certificate or a summary of exempt sales as the department may require.  The seller shall retain a copy of the certificate for the seller's files.

     (2) For purposes of this section and section 2 of this act, "qualified investment" means an investment made to improve an existing ski area by the operator of the ski area to:

     (a) Improve, upgrade, replace, or modernize an existing aerial tramway or lift;

     (b) Add an additional aerial tramway or lift;

     (c) Improve, upgrade, replace, or modernize snowmaking or snowgrooming equipment;

     (d) Acquire snowmaking, snowgrooming, or snow removal equipment;

     (e) Construct or purchase restrooms, shelters, lodges, ticket systems, accommodations, parking facilities, admission facilities, food and beverage facilities and equipment, and other similar consumer oriented depreciable assets; or

     (f) Develop trails.

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 machinery and equipment for qualified investments in existing ski areas, but only when the user provides the department with:

     (a) An exemption certificate in a form and manner prescribed by the department within sixty days of the first use of the machinery and equipment in this state; or

     (b) An annual summary listing the machinery and equipment by January 31st of the year following the calendar year in which the machinery and equipment is first used in this state.

     (2) The definitions in section 1 of this act apply to this section.

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

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