AN
ACT Relating to intangible personal property; amending RCW 84.36.070; adding a
new section to chapter 84.48 RCW; and creating new sections.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.36.070 and 1974 ex.s. c 118 s 1 are each amended to read as follows:
((The
following)) (1) Intangible personal property ((shall be))
is exempt from ad valorem taxation((:)).
(2)
"Intangible personal property" means:
(a)
All moneys and credits including mortgages, notes, accounts, certificates of
deposit, tax certificates, judgments, state, county and municipal bonds and
warrants and bonds and warrants of other taxing districts, bonds of the United
States and of foreign countries or political subdivisions thereof and the
bonds, stocks, or shares of private corporations((,));
(b)
Private nongovernmental personal service contracts ((or)),
private nongovernmental athletic or sports franchises, or private
nongovernmental athletic or sports agreements provided that ((such)) the
contracts, franchises, or agreements do not pertain to the use or
possession of tangible personal or real property or to any interest in tangible
personal or real property; and
(c)
Other intangible personal property such as trademarks, trade names, brand
names, patents, copyrights, trade secrets, franchise agreements, licenses,
permits, core deposits of financial institutions, noncompete agreements,
customer lists, patient lists, favorable contracts, favorable financing agreements,
reputation, exceptional management, prestige, good name, or integrity of a
business.
(3)
"Intangible personal property" does not include zoning, location,
view, geographic features, easements, covenants, proximity to raw materials,
condition of surrounding property, proximity to markets, the availability of a
skilled work force, and other characteristics or attributes of property.
(4)
This section does not preclude the use of, or permit a departure from,
generally accepted appraisal practices and the appropriate application thereof
in the valuation of real and tangible personal property, including the
appropriate consideration of licenses, permits, and franchises granted by a
government agency that affect the use of the property.
NEW
SECTION. Sec. 2. A
new section is added to chapter 84.48 RCW to read as follows:
(1)
In equalizing personal property as of January 1, 1998, the department shall
treat intangible personal property in the same manner as intangible personal
property is to be treated after the effective date of this act.
(2)
This section expires December 31, 1998.
NEW
SECTION. Sec. 3. This
act shall not be construed to amend or modify any existing statute or rule
relating to the treatment of computer software, retained rights in computer
software, and golden and master copies of computer software for property tax
purposes.
NEW
SECTION. Sec. 4.
Nothing in this act is intended to incorporate and nothing in this act is based
on any other state's statutory or case law.
NEW
SECTION. Sec. 5. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW
SECTION. Sec. 6. This
act is effective for taxes levied for collection in 1999 and thereafter.
NEW
SECTION. Sec. 7. By
December 1, 2000, the department of revenue shall submit a report to the house
finance committee, the senate ways and means committee, and the office of the
governor on tax shifts, tax losses, and any litigation resulting from this act.
