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SUBSTITUTE
SENATE BILL 5359
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AS
AMENDED BY THE HOUSE
Passed
Legislature - 1997 Regular Session
State of Washington 55th
Legislature 1997 Regular Session
By
Read first time 02/20/97.
Clarifying
the exemption from sales and use taxation of the materials used by small
companies in the design and development of aircraft parts, auxiliary equipment,
and aircraft modification.
AN
ACT Relating to clarifying the exemption from sales and use taxation of the
materials used by small companies in the design and development of aircraft
parts, auxiliary equipment, and aircraft modification; amending RCW 82.08.02566
and 82.12.02566; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.08.02566 and 1996 c 247 s 4 are each amended to read as follows:
(1)
The tax levied by RCW 82.08.020 shall not apply to sales of ((materials used
in designing and developing aircraft parts, auxiliary equipment, and aircraft
modification whether from enterprise funds or on a contract or fee basis for a
taxpayer with gross sales of less than twenty million dollars per year. This
exemption may not exceed one hundred thousand dollars for a taxpayer in a year))
tangible personal property incorporated into a prototype for aircraft parts,
auxiliary equipment, or modifications; or to sales of tangible personal
property that at one time is incorporated into the prototype but is later
destroyed in the testing or development of the prototype.
(2)
This exemption does not apply to sales to any person whose total taxable amount
during the immediately preceding calendar year exceeds twenty million dollars.
For purposes of this section, "total taxable amount" means gross
income of the business and value of products manufactured, less any amounts for
which a credit is allowed under RCW 82.04.440.
(3)
State and local taxes for which an exemption is received under this section and
RCW 82.12.02566 shall not exceed one hundred thousand dollars for any person
during any calendar year.
Sec.
2. RCW
82.12.02566 and 1996 c 247 s 5 are each amended to read as follows:
(1)
The provisions of this chapter shall not apply with respect to the use of ((materials
used in designing and developing aircraft parts, auxiliary equipment, and
aircraft modification whether from enterprise funds or on a contract or fee
basis for a taxpayer with gross sales of less than twenty million dollars per
year. This exemption may not exceed one hundred thousand dollars for a
taxpayer in a year)) tangible personal property incorporated into a
prototype for aircraft parts, auxiliary equipment, or modifications; or in
respect to the use of tangible personal property that at one time is
incorporated into the prototype but is later destroyed in the testing or
development of the prototype.
(2)
This exemption does not apply in respect to the use of tangible personal
property by any person whose total taxable amount during the immediately
preceding calendar year exceeds twenty million dollars. For purposes of this
section, "total taxable amount" means gross income of the business
and value of products manufactured, less any amounts for which a credit is
allowed under RCW 82.04.440.
(3)
State and local taxes for which an exemption is received under this section and
RCW 82.08.02566 shall not exceed one hundred thousand dollars for any person
during any calendar year.
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.
