S-3988.1  _______________________________________________

                         SENATE BILL 6165

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By Senators Fraser and Swecker

Read first time 01/08/96.  Referred to Committee on Ways & Means.

Exempting from sales and use taxation materials used in design and development of aircraft parts.

    AN ACT Relating to the exemption from sales and use taxation of the materials used by small companies in the design and development of aircraft parts, auxiliary equipment, and aircraft modification; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.

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 materials used in designing and developing aircraft parts, auxiliary equipment, and aircraft modification whether from enterprise funds or on a contract or fee basis for a taxpayer with gross sales of less than twenty million dollars per year.  This exemption may not exceed one hundred thousand dollars for a taxpayer in a year.

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 with respect to the use of materials used in designing and developing aircraft parts, auxiliary equipment, and aircraft modification whether from enterprise funds or on a contract or fee basis for a taxpayer with gross sales of less than twenty million dollars per year.  This exemption may not exceed one hundred thousand dollars for a taxpayer in a year.

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