H-5343.1  _______________________________________________

                          HOUSE BILL 2954

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By Representatives Pennington, Kessler, Hymes, Brumsickle, Schoesler, Campbell, Grant, Chappell, Linville, Casada, Morris, Silver, Mulliken, Hatfield, Quall, Costa, Basich, Lambert, D. Schmidt, McMahan, L. Thomas, Koster, Stevens and Scott

Read first time 03/01/96. 

Providing tax exemptions for items obtained to replace flood-damaged items.

    AN ACT Relating to sales and use tax relief for flood victims; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; providing expiration dates; and declaring an emergency.

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 charges made for labor and services rendered in respect to repairing residential buildings damaged by flooding or constructing new residential buildings to replace residential buildings destroyed by flooding, if the buildings are located in a county that the governor has declared after June 30, 1995, to be in a disaster area as a result of flooding, or to sales of tangible personal property which becomes an ingredient or component of such residential buildings during the course of such repair or construction, but only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department by rule.

NEW SECTION. Sec. 2.  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 to a resident of a county that the governor has declared after June 30, 1995, to be in a disaster area as a result of flooding, if the property replaces household goods, personal effects, or private automobiles, lost or destroyed in the flooding, but only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department by rule.

NEW SECTION. Sec. 3.  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 which becomes an ingredient or component of residential buildings during the course of repairing residential buildings damaged by flooding or constructing new residential buildings to replace residential buildings destroyed by flooding, if the buildings are located in a county that the governor has declared after June 30, 1995, to be in a disaster area as a result of flooding.

NEW SECTION. Sec. 4.  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 by a resident of a county that the governor has declared after June 30, 1995, to be in a disaster area as a result of flooding, if the property replaces household goods, personal effects, or private automobiles, lost or destroyed in the flooding.

NEW SECTION. Sec. 5.  Sections 1 and 3 of this act shall expire March 31, 1997.  Sections 2 and 4 of this act shall expire September 31, 1996.

NEW SECTION. Sec. 6.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

                            --- END ---