BP BHEAD INT S [atlas:bill]

AN ACT Relating to tax relief for environmental burdens imposed upon agriculture; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding new sections to chapter 84.36 RCW; and providing expiration dates.

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 does not apply to sales of grass straw equipment and facilities, or to sales of labor and services rendered in respect to installing, constructing, repairing, cleaning, altering, decorating, or improving the equipment or facilities.

(2) When claiming an exemption under this section, the purchaser shall provide the seller with an exemption certificate in a form and manner prescribed by the department by rule. The seller shall retain a copy of the certificate for the seller's files.

(3) The definitions in this subsection apply for the purposes of this section.

(a) "Eligible" means used in respect to acreage that was in grass seed production at any time before May 1, 1996.

(b) "Grass straw equipment and facilities" means machinery, equipment, buildings, and structures used for gathering, densifying, processing, handling, storing, transporting, and incorporating grass straw or straw-based products, and includes equipment designed to burn stubble and remaining residue at high temperatures to reduce particulate pollution. The term includes tangible personal property that becomes an ingredient or component of the equipment or facilities, including repair parts and replacement parts. A building or structure is not excluded from this definition merely because it is used for occasional or incidental storage of other agricultural machinery, equipment, supplies, or products.

(4) This section expires January 1, 2005.

NEW SECTION. Sec. 2. A new section is added to chapter 82.12 RCW to read as follows:

The provisions of this chapter do not apply with respect to the use of eligible grass straw equipment and facilities as defined in section 1 of this act. This section expires January 1, 2005.

NEW SECTION. Sec. 3. A new section is added to chapter 84.36 RCW to read as follows:

(1) Personal property that is within the definition of eligible grass straw equipment and facilities under section 1 of this act is exempt from property taxation.

(2) A real property improvement that is within the definition of eligible grass straw equipment and facilities under section 1 of this act is exempt from property taxes for the six assessment years subsequent to completion of construction or installation of the improvement, if the construction or installation is completed before January 1, 2005.

(3) This section applies to taxes levied for collection in 1999 through 2011. This section expires January 1, 2012.

NEW SECTION. Sec. 4. A new section is added to chapter 82.08 RCW to read as follows:

(1) The tax levied by RCW 82.08.020 does not apply to sales of eligible dairy farm waste management equipment and facilities, or to sales of labor and services rendered in respect to installing, constructing, repairing, cleaning, altering, decorating, or improving the equipment or facilities.

(3) The definitions in this subsection apply for the purposes of this section.

(a) "Dairy farm waste management equipment and facilities" means machinery, equipment, buildings, and structures reasonably necessary to implement a dairy waste management plan developed under chapter 90.64 RCW, including but not limited to agitators, alley scrapers, augers, dams, gutter cleaners, loaders, lagoons, pipes, pumps, separators, and tanks. The term includes tangible personal property that becomes an ingredient or component of the machinery, equipment, buildings, or structures, including repair parts and replacement parts. A building or structure is not excluded from this definition merely because it is used for occasional or incidental storage of other agricultural machinery, equipment, supplies, or products.

(b) "Eligible" means used by a person who is currently licensed to produce milk under chapter 15.36 RCW and was so licensed on January 1, 1998.

(4) This section expires January 1, 2005.

NEW SECTION. Sec. 5. A new section is added to chapter 82.12 RCW to read as follows:

The provisions of this chapter do not apply with respect to the use of eligible dairy farm waste management equipment and facilities as defined in section 4 of this act. This section expires January 1, 2005.

NEW SECTION. Sec. 6. A new section is added to chapter 84.36 RCW to read as follows:

(1) Personal property that is within the definition of eligible dairy farm waste management equipment and facilities under section 4 of this act is exempt from property taxation.

(2) A real property improvement that is within the definition of eligible dairy farm waste management equipment and facilities under section 4 of this act is exempt from property taxes for the six assessment years subsequent to completion of construction or installation of the improvement, if the construction or installation is completed before January 1, 2005.

(3) This section applies to taxes levied for collection in 1999 through 2011. This section expires January 1, 2012.

NEW SECTION. Sec. 7. A new section is added to chapter 82.08 RCW to read as follows:

(1) The tax levied by RCW 82.08.020 does not apply to sales of eligible barrier materials or eligible livestock equipment, or to sales of labor and services rendered in respect to installing, constructing, repairing, cleaning, altering, decorating, or improving the materials or equipment.

(3) The definitions in this subsection apply for the purposes of this section.

(a) "Barrier material" means fencing, boulders, shrub thickets, and similar materials.

(b) "Eligible" means used solely for the purpose of preventing erosion of streambanks, destruction of streamside vegetation, degradation of water quality, or similar environmental impacts, by limiting livestock access to sensitive areas such as streams, lakes, and riparian areas.

(c) "Livestock equipment" means watering equipment, feeding equipment, feed storage facilities, animal waste handling equipment, and similar equipment.

(4) This section expires January 1, 2005.

NEW SECTION. Sec. 8. A new section is added to chapter 82.12 RCW to read as follows:

The provisions of this chapter do not apply with respect to the use of eligible barrier materials or eligible livestock equipment as defined in section 7 of this act. This section expires January 1, 2005.

NEW SECTION. Sec. 9. A new section is added to chapter 84.36 RCW to read as follows:

(1) Personal property that is within the definition of eligible barrier materials or eligible livestock equipment under section 7 of this act is exempt from property taxation.

(2) A real property improvement that is within the definition of eligible barrier materials or eligible livestock equipment under section 7 of this act is exempt from property taxes for the six assessment years subsequent to completion of construction or installation of the improvement, if the construction or installation is completed before January 1, 2005.

(3) This section applies to taxes levied for collection in 1999 through 2011. This section expires January 1, 2012.