CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 1248

 

 

 

 

 

 

 

                        54th Legislature

                      1995 Regular Session

Passed by the House March 7, 1995

  Yeas 92   Nays 2

 

 

 

 

Speaker of the

       House of Representatives

 

Passed by the Senate April 12, 1995

  Yeas 43   Nays 2

               CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 1248 as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

 

President of the Senate

 

                               Chief Clerk

 

 

Approved Place Style On Codes above, and Style Off Codes below.

                                     FILED

          

 

 

Governor of the State of Washington

                        Secretary of State

                       State of Washington


                  _______________________________________________

 

                            SUBSTITUTE HOUSE BILL 1248

                  _______________________________________________

 

                             AS AMENDED BY THE SENATE

 

                     Passed Legislature - 1995 Regular Session

 

State of Washington54th Legislature                            1995 Regular Session

 

By House Committee on Trade & Economic Development (originally sponsored by Representatives Van Luven, G. Fisher, Boldt, Carrell, Campbell, Mason, Ebersole, B. Thomas, Cairnes, Radcliff, Cooke, Chandler, Mielke, Ballasiotes, Robertson, Mitchell, Schoesler, Appelwick, Sheldon, Costa, Morris, Basich and Conway)

 

Read first time 02/07/95.

 

Providing tax deferrals for a new thoroughbred race rack facility.



     AN ACT Relating to tax deferrals for a new thoroughbred race track facility; adding a new chapter to Title 82 RCW; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     NEW SECTION.  Sec. 1.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Applicant" means a person applying for a tax deferral under this chapter.

     (2) "Person" has the meaning given in RCW 82.04.030.

     (3) "Department" means the department of revenue.

     (4) "Investment project" means construction of buildings, site preparation, and the acquisition of related machinery and equipment when the buildings, machinery, and equipment are to be used in the operation of a new thoroughbred race track.

     (5) "New thoroughbred race track" means a site for thoroughbred horse racing located west of the Cascade mountains on which construction is commenced prior to July 1, 1998.

     (6) "Buildings" means only those new structures such as ticket offices, concession areas, grandstands, stables, and other structures that are an essential or an integral part of a thoroughbred race track.  If a building is used partly for use as an essential or integral part of a thoroughbred race track and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.

     (7) "Machinery and equipment" means all fixtures, equipment, and support facilities that are an integral and necessary part of a thoroughbred race track.

     (8) "Recipient" means a person receiving a tax deferral under this chapter.

     (9) "Certificate holder" means an applicant to whom a tax deferral certificate has been issued.

     (10) "Operationally complete" means constructed or improved to the point of being functionally useable for thoroughbred horse racing.

     (11) "Initiation of construction" means that date upon which on-site construction commences.

 

     NEW SECTION.  Sec. 2.  Application for deferral of taxes under this chapter shall be made to the department in a form and manner prescribed by the department.  The application shall contain information regarding the location of the investment project, estimated or actual costs, time schedules for completion and operation, and other information required by the department.  The department shall rule on the application within sixty days.

 

     NEW SECTION.  Sec. 3.  (1) The department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each investment project.  The use of the certificate shall be governed by rules established by the department.

     (2) This section shall expire July 1, 1998.

 

     NEW SECTION.  Sec. 4.  (1) The recipient shall begin paying the deferred taxes in the fifth year after the date certified by the department as the date on which the investment project is operationally complete.  The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years with amounts of payment scheduled as follows:

 

             Repayment Year          % of Deferred Tax Repaid

                  1                                 10%

                  2                                 10%

                  3                                 10%

                  4                                 10%

                  5                                 10%

                  6                                 10%

                  7                                 10%

                  8                                 10%

                  9                                 10%

                 10                                 10%

 

     (2) The department may authorize an accelerated repayment schedule upon request of the recipient.

     (3) Interest shall not be charged on any taxes deferred under this chapter for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this chapter.  The debt for deferred taxes is not extinguished by insolvency or other failure of the recipient.

 

     NEW SECTION.  Sec. 5.  Chapter 82.32 RCW applies to the administration of this chapter.

 

     NEW SECTION.  Sec. 6.  Applications and any other information received by the department under this chapter is not confidential and is subject to disclosure.

 

     NEW SECTION.  Sec. 7.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

     NEW SECTION.  Sec. 8.  Sections 1 through 7 of this act shall constitute a new chapter in Title 82 RCW.

 

     NEW SECTION.  Sec. 9.  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.

 


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