S-1544.1  _______________________________________________

                         SENATE BILL 5907

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Senators Rasmussen, West, Sheldon, Finkbeiner, Loveland and Long

Read first time 02/13/95.  Referred to Committee on Ways & Means.

Providing a use tax for certain customized equipment.

    AN ACT Relating to a use tax exemption for custom designed and constructed equipment used in manufacturing; adding a new section to chapter 82.12 RCW; providing an effective date; 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 82.12 RCW to read as follows:

    This chapter shall not apply to specialized equipment used in manufacturing if all of the following apply:

    (1) The equipment is of original design and is not otherwise available;

    (2) Sales tax has been paid on all of the materials and components used in the construction of the equipment;

    (3) The equipment is primarily designed and assembled by the same firm that uses the equipment for manufacturing other items; and

    (4) The value of the equipment, assuming a reasonable cost for labor and overhead of the firm that designed and assembled the equipment, does not exceed fifty thousand dollars.

NEW SECTION. Sec. 2.  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 July 1, 1995.

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