H-0469.1  _______________________________________________

                          HOUSE BILL 1035

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Pennington, Mielke, McMorris, Mulliken, Kastama, Johnson, Hatfield, DeBolt, Sheahan, Lambert, Schoesler, B. Thomas, Sheldon, Kessler, L. Thomas, Bush, Smith and O'Brien

Read first time 01/13/97.  Referred to Committee on Finance.

Providing sales and use tax relief for flood victims.

    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:

    (1) The tax levied by RCW 82.08.020 shall not apply to sales of the following:

    (a) 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 or Indian Nation listed in Presidential Disaster Declaration DR-1079-WA or DR-1100-WA as amended; or

    (b) Tangible personal property which becomes an ingredient or component of such residential buildings during the course of such repair or construction.

    (2) A person claiming exemption under this section shall:

    (a) Provide the seller with an exemption certificate in a form and manner prescribed by the department by rule;

    (b) Display to the seller a valid Washington driver's license or other valid identification card that has a photograph of the holder; and

    (c) Present to the seller a copy of a letter or other documentation showing that the buyer is the recipient of federal disaster assistance.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

    (1) The tax levied by RCW 82.08.020 shall not apply to sales of tangible personal property specified in subsection (2) of this section to a resident of a county or Indian Nation listed in Presidential Disaster Declaration DR-1079-WA or DR-1100-WA as amended.

    (2) Only the following items are exempt under this section, and only if the item replaces a like item that was lost or destroyed in the flooding:

    (a) Upholstered sofas, couches, loveseats, armchairs, and recliners;

    (b) Dining tables and chairs;

    (c) Bed mattresses and foundations;

    (d) Clothes washers and dryers;

    (e) Stoves, ranges, and conventional ovens;

    (f) Refrigerators and freezers;

    (g) Dishwashers;

    (h) Garbage disposals and trash compactors;

    (i) Water heaters; and

    (j) Private automobiles, when replacing a private automobile that was registered and licensed under the laws of this state at the time of the flooding.

    (3) A person claiming exemption under this section shall:

    (a) Provide the seller with an exemption certificate in a form and manner prescribed by the department by rule;

    (b) Display to the seller a valid Washington driver's license or other valid identification card that has a photograph of the holder; and

    (c) Present to the seller a copy of a letter or other documentation showing that the buyer is the recipient of federal disaster assistance.

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 or Indian Nation listed in Presidential Disaster Declaration DR-1079-WA or DR-1100-WA as amended.

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 or Indian Nation listed in Presidential Disaster Declaration DR-1079-WA or DR-1100-WA as amended, if the property is an item listed in section 2(2) of this act, and the property replaces a like item that was lost or destroyed in the flooding.

NEW SECTION. Sec. 5.  Sections 1 and 3 of this act expire March 31, 1998.  Sections 2 and 4 of this act expire September 31, 1997.

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 takes effect immediately.

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