H-4064.2 _______________________________________________
HOUSE BILL 2970
_______________________________________________
State of Washington 56th Legislature 2000 Regular Session
By Representatives Thomas, Dunshee and Conway
Read first time 01/25/2000. Referred to Committee on Finance.
AN ACT Relating to requiring a fiscal review and a performance evaluation of tax exemptions for manufacturers; adding a new section to chapter 82.32 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. (1) The joint legislative audit and review committee shall conduct a fiscal review and a performance evaluation of the sales and use tax exemptions under RCW 82.08.02565 and 82.12.02565.
(2) The fiscal review shall examine, but not be limited to: (a) Estimates of amounts qualifying for exemption and changes in these amounts over time; (b) a comparison of the amounts qualifying for exemption with the tax revenue available to state and local governments; (c) estimates of the cost of administering the exemptions; and (d) estimates of the level of tax noncompliance associated with the exemptions.
(3) The performance evaluation shall examine, but not be limited to: (a) The effectiveness of the exemption in expanding the level of investment in manufacturing machinery and equipment in Washington relative to other states; (b) the effectiveness of the exemption in creating manufacturing jobs in Washington relative to other states; and (c) the effectiveness of the exemption in improving wage rates for manufacturing jobs in Washington relative to other states. These performance criteria shall be measured in comparison to the economic activity that would have occurred in the absence of the exemption.
(4) The committee's report shall also include findings as to the increases in population, economic activity, government revenue, and demand for government services, if any, resulting from the exemptions.
(5) The department of revenue and the employment security department shall provide to the committee such information as the committee determines is necessary to accomplish the requirements of this section, including but not limited to confidential tax and employment data.
(6) The fiscal review and performance evaluation shall be submitted by December 1, 2005, to the house of representatives committee on finance and the senate committee on ways and means.
NEW SECTION. Sec. 2. A new section is added to chapter 82.32 RCW to read as follows:
At the time of filing a return under RCW 82.32.045, a taxpayer shall report the total amount of machinery, equipment, labor, and services for which exemption is claimed under RCW 82.08.02565 and 82.12.02565 during the reporting period. The report shall be made on forms prescribed by the department. The department shall disallow any exemption under RCW 82.08.02565 and 82.12.02565 for which amounts are not correctly reported under this section. The department may permit a taxpayer to file supplemental or corrected reports as the department deems are reasonable to permit substantial compliance with this section.
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