_______________________________________________
HOUSE
BILL 2278
_______________________________________________
Passed
Legislature - 1998 Regular Session
State
of Washington 55th Legislature 1998 Regular Session
By
Read
first time 04/01/97. Referred to Committee on Finance.
Exempting electric generating facilities powered by
landfill gas from sales and use taxes.
AN
ACT Relating to exempting electric generating facilities powered by landfill
gas from sales and use taxes; amending RCW 82.08.02567 and 82.12.02567; and
declaring an emergency.
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)), or landfill gas 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 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)
"Landfill gas" means biomass fuel of the type qualified for
federal tax credits under 26 U.S.C. Sec. 29 collected from a landfill.
"Landfill" means a landfill as defined under RCW 70.95.030.
(b)
"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)),
or landfill gas as the principal source of power;
(((b)))
(c) "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)))
(d) Machinery and equipment is "used directly" in generating
electricity by wind ((or)) energy, solar, or landfill gas
power if it provides any part of the process that captures the energy of the
wind ((or)), sun, or landfill gas, converts that energy to
electricity, and transforms or transmits that electricity for entry into electric
transmission and distribution systems.
(3)
This section expires June 30, 2005.
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 of
electricity using ((the)) wind ((or)), sun, or landfill
gas 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.
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 immediately.
