AN
ACT Relating to sales and use tax exemptions for victims of inclement weather
that led to a declaration of a disaster area; adding a new section to chapter
82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective
date; 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 buildings damaged by a
disaster or constructing new buildings to replace buildings destroyed by a
disaster, if the buildings are located in a county or Indian nation declared as
a federal disaster area eligible for individual assistance during the period
November 1, 1995, through June 30, 1997;
(b)
Tangible personal property that becomes an ingredient or component of such
buildings during the course of repair or construction;
(c)
Private automobiles, when replacing a private automobile that was damaged by a
disaster occurring during the period November 1, 1995, through June 30, 1997,
and the damaged automobile was registered and licensed under the laws of this
state at the time of the disaster.
(2)
A person is eligible for exemption under this section if he or she has received
a disaster assistance approval letter from the:
(a)
Federal emergency management agency for a housing assistance grant to repair a
damaged home;
(b)
Small business administration for a loan to repair damages to a residential or
commercial building; or
(c)
Farm service agency for a loan to repair damages to farm property.
(3)
A person who receives an individual or family assistance grant from the federal
emergency management agency may not claim the exemption granted under this
section.
(4)
A person who is denied an individual or family assistance grant may claim
exemption under this section by obtaining a special disaster assistance
certificate. To obtain a special disaster assistance certificate, the person
shall present the denial letter to the department by mail or in person. The
department shall issue a special disaster assistance certificate to the person
if the denial letter indicates that:
(a)
Damage to real property or a private automobile occurred;
(b)
Damage was due to a disaster;
(c)
Loss is not covered by insurance or otherwise compensated by the receipt, or
expected receipt, of other forms of disaster assistance from the American red
cross, federal emergency management disaster housing program, small business
administration, or farm service agency; and
(d)
Denial is not due to:
(i) Failure to prove ownership of the real property;
(ii)
Finding that a private automobile was unusable, unregistered, or uninsured as
required by state law at the time it was damaged; or
(iii)
Determination that the person, or another member of his or her household, has
previously applied for an individual or family assistance grant for the same
damage or loss.
(5)
At the time of sale, a person claiming this exemption shall:
(a)
Provide the seller with proof of eligibility by presenting either a disaster
assistance approval letter or a special disaster assistance certificate;
(b)
Display to the seller a valid Washington state driver's license or other valid
identification card that has a photograph of the holder; and
(c)
Complete an exemption certificate in a form and manner prescribed by the
department. The exemption certificate must contain the buyer's name, address,
telephone number, and Washington state driver's license number or identification
number. The certificate should also list the items purchased, price of the
items, and the date of the purchase.
(6)
The seller shall retain the exemption certificate and a copy of either the
disaster assistance approval letter or the special disaster assistance
certificate for a period of five years.
(7)
This section expires July 1, 1998.
NEW
SECTION. Sec. 2. A
new section is added to chapter 82.12 RCW to read as follows:
(1)
The provisions of this chapter do not apply with respect to the use, by a
person meeting the eligibility criteria of subsection (2) of this section, of
the following:
(a)
Tangible personal property that becomes an ingredient or component of buildings
during the course of repairing buildings to replace buildings destroyed by a
disaster, if the buildings are located in a county or Indian nation declared as
a federal disaster area eligible for individual assistance during the period
November 1, 1995, through June 30, 1997;
(b)
A private automobile, if the automobile replaces a private automobile that was
damaged by a disaster occurring during the period November 1, 1995, through
June 30, 1997, and the automobile was registered and licensed under the laws of
this state at the time of the disaster.
(2)
A person is eligible to claim an exemption under this section if:
(a)
He or she has been approved to receive one or more of the following forms of
disaster assistance:
(i)
A housing assistance grant from the federal emergency management agency to
repair a damaged home;
(ii)
A loan from the small business administration to repair damages to a
residential or commercial building; or
(iii)
A loan from the farm service agency to repair damages to farm property; or
(b)
The person has obtained a special disaster assistance certificate from the
department under the provisions of section 1(4) of this act.
(3)
This section expires July 1, 1998.
NEW SECTION. Sec. 3. 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 July 1, 1997.
