S-0671.1  _______________________________________________

                         SENATE BILL 5577

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Senators Hochstatter, Swecker, Heavey, Morton, Finkbeiner, Benton, McCaslin, Schow, Anderson, Johnson, Zarelli, Rossi, Stevens and Patterson

Read first time 01/31/97.  Referred to Committee on Ways & Means.

Providing tax exemptions for labor on construction and remodeling on real property.

    AN ACT Relating to tax exemptions for labor on construction and remodeling on real property; 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 does not apply to the following amounts of labor on all construction and remodeling on real property used for residential purposes:

    (1) For 1997, twenty percent;

    (2) For 1998, forty percent;

    (3) For 1999, sixty percent;

    (4) For 2000, eighty percent; and

    (5) For 2001 and thereafter, one hundred percent.

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 in respect to the use of the following amounts of labor on all construction and remodeling on real property used for residential purposes:

    (1) For 1997, twenty percent;

    (2) For 1998, forty percent;

    (3) For 1999, sixty percent;

    (4) For 2000, eighty percent; and

    (5) For 2001 and thereafter, one hundred percent.

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