H-4105.3 _______________________________________________
HOUSE BILL 2927
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Representatives Poulsen, Crouse, Constantine, Morris, Cooper, O'Brien, Hatfield, Gombosky and Butler
Read first time 01/22/98. Referred to Committee on Energy & Utilities.
AN ACT Relating to exempting electric generating facilities powered by wind or sun energy from sales and use taxes; amending RCW 82.08.02567 and 82.12.02567; providing an effective date; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.08.02567 and 1996 c 166 s 1 are each amended to read as follows:
(1)
The tax levied by RCW 82.08.020 shall not apply to sales of machinery and
equipment used directly in generating electricity using the wind or sun energy
as the principal source of power, or to sales of or charges made for labor and
services rendered in respect to installing such machinery and equipment, but
only if the purchaser develops with such machinery, equipment, and labor a
facility capable of generating not less than two hundred ((kilowatts)) watts
of electricity and provides the seller with an exemption certificate in a form
and manner prescribed by the department ((by rule, and the purchaser
provides the department with a duplicate of the certificate or a summary of
exempt sales as the department may require)). The seller shall retain a
copy of the certificate for the seller's files.
(2) For purposes of this section and RCW 82.12.02567:
(a)
"Machinery and equipment" means ((industrial)) fixtures,
devices, and support facilities that are integral and necessary to the
generation of electricity using the wind or sun energy as the principal source
of power;
(b) "Machinery and equipment" does not include: (i) Hand tools; (ii) property with a useful life of less than one year; (iii) repair parts required to restore machinery and equipment to normal working order; (iv) replacement parts that do not increase productivity, improve efficiency, or extend the useful life of machinery and equipment; (v) buildings; or (vi) building fixtures that are not integral and necessary to the generation of electricity that are permanently affixed to and become a physical part of a building;
(c)
Machinery and equipment is "used directly" in generating electricity
by wind or ((solar power if it provides any part of the process that
captures the energy of the wind or sun, converts that energy to electricity,
and transforms or transmits that electricity for entry into electric
transmission and distribution systems)) sun energy if it captures,
converts, transforms, stores, or transmits wind or sun energy or the electricity
created from wind or sun energy.
(3)
This section expires June 30, ((2005)) 2008.
Sec. 2. RCW 82.12.02567 and 1996 c 166 s 2 are each amended to read as follows:
(1)
The provisions of this chapter shall not apply with respect to machinery and
equipment used directly in generating not less than two hundred ((kilowatts))
watts of electricity using the wind or sun as the principal source of
power((, but only when the user provides the department with:
(a)
An exemption certificate in a form and manner prescribed by the department
within sixty days of the first use of such machinery and equipment in this
state; or
(b)
An annual summary listing the machinery and equipment by January 31st of the
year following the calendar year in which the machinery and equipment is first
used in this state)).
(2) The definitions in RCW 82.08.02567 apply to this section.
(3)
This section expires June 30, ((2005)) 2008.
NEW SECTION. Sec. 3. This act takes effect July 1, 1998.
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