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.
