AN
ACT Relating to technical corrections to tax statutes; amending RCW 82.03.140,
82.03.150, 82.03.160, 82.03.180, 82.04.297, 82.04.340, 82.04.4452, 82.08.0291,
82.12.820, 82.14.360, 82.18.040, 82.34.050, 82.36.020, 82.45.060, 82.46.021, 82.46.030,
82.49.030, 82.62.090, 82.80.020, 82.80.050, 84.26.080, 84.34.065, 84.36.080,
84.36.379, 84.38.100, 84.38.120, 84.40.405, 84.52.0502, and 84.68.010;
reenacting RCW 82.36.130; and repealing RCW 82.34.070, 84.56.190, 84.33.042,
84.33.043, 84.33.044, and 84.33.045.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.03.140 and 1988 c 222 s 4 are each amended to read as follows:
In
all appeals over which the board has jurisdiction under RCW 82.03.130, a party
taking an appeal may elect either a formal or an informal hearing, such
election to be made according to rules of practice and procedure to be
promulgated by the board: PROVIDED, That nothing shall prevent the assessor or
taxpayer, as a party to an appeal pursuant to RCW 84.08.130, within twenty days
from the date of the receipt of the notice of appeal, from filing with the
clerk of the board notice of intention that the hearing be a formal one:
PROVIDED, HOWEVER, That nothing herein shall be construed to modify the
provisions of RCW 82.03.190: AND PROVIDED FURTHER, That upon an appeal under
RCW 82.03.130(((5))) (1)(e), the director of revenue may, within
ten days from the date of its receipt of the notice of appeal, file with the
clerk of the board notice of its intention that the hearing be held pursuant to
chapter 34.05 RCW. In the event that appeals are taken from the same decision,
order, or determination, as the case may be, by different parties and only one
of such parties elects a formal hearing, a formal hearing shall be granted.
EXPLANATORY
NOTE
RCW 82.03.130 was amended by
1998 c 54 s 1, changing subsection (5) to subsection (1)(e).
Sec.
2. RCW
82.03.150 and 1988 c 222 s 5 are each amended to read as follows:
In
all appeals involving an informal hearing, the board or its tax referees shall
have all powers relating to administration of oaths, issuance of subpoenas, and
taking of depositions as are granted to agencies by chapter 34.05 RCW. The
board, or its tax referees, shall also have all powers granted the department
of revenue pursuant to RCW 82.32.110. In the case of appeals within the scope
of RCW 82.03.130(((2))) (1)(b) the board or any member thereof
may obtain such assistance, including the making of field investigations, from
the staff of the director of revenue as the board or any member thereof may
deem necessary or appropriate.
EXPLANATORY
NOTE
RCW 82.03.130 was amended by
1998 c 54 s 1, changing subsection (2) to subsection (1)(b).
Sec.
3. RCW
82.03.160 and 1989 c 175 s 175 are each amended to read as follows:
In
all appeals involving a formal hearing the board or its tax referees shall have
all powers relating to administration of oaths, issuance of subpoenas, and
taking of depositions as are granted to agencies in chapter 34.05 RCW; and the
board, and each member thereof, or its tax referees, shall be subject to all
duties imposed upon, and shall have all powers granted to, an agency by those
provisions of chapter 34.05 RCW relating to adjudicative proceedings. The
board, or its tax referees, shall also have all powers granted the department
of revenue pursuant to RCW 82.32.110. In the case of appeals within the scope
of RCW 82.03.130(((2))) (1)(b), the board, or any member thereof,
may obtain such assistance, including the making of field investigations, from
the staff of the director of revenue as the board, or any member thereof, may deem
necessary or appropriate: PROVIDED, HOWEVER, That any communication, oral or
written, from the staff of the director to the board or its tax referees shall
be presented only in open hearing.
EXPLANATORY
NOTE
RCW 82.03.130 was amended by
1998 c 54 s 1, changing subsection (2) to subsection (1)(b).
Sec.
4. RCW
82.03.180 and 1989 c 175 s 176 are each amended to read as follows:
Judicial
review of a decision of the board of tax appeals shall be de novo in accordance
with the provisions of RCW 82.32.180 or 84.68.020 as applicable except when the
decision has been rendered pursuant to a formal hearing elected under RCW
82.03.140 or 82.03.190, in which event judicial review may be obtained only
pursuant to RCW 34.05.510 through 34.05.598: PROVIDED, HOWEVER, That nothing
herein shall be construed to modify the rights of a taxpayer conferred by RCW
82.32.180 and 84.68.020 to sue for tax refunds: AND PROVIDED FURTHER, That no
review from a decision made pursuant to RCW 82.03.130(1)(a) may be
obtained by a taxpayer unless within the petition period provided by RCW
34.05.542 the taxpayer shall have first paid in full the contested tax,
together with all penalties and interest thereon, if any. The director of
revenue shall have the same right of review from a decision made pursuant to
RCW 82.03.130(1)(a) as does a taxpayer; and the director of revenue and
all parties to an appeal under RCW 82.03.130(((5))) (1)(e) shall
have the right of review from a decision made pursuant to RCW 82.03.130(((5)))
(1)(e).
EXPLANATORY
NOTE
RCW 82.03.130 was amended by
1998 c 54 s 1, changing subsection (1) to subsection (1)(a) and subsection (5)
to subsection (1)(e).
Sec.
5. RCW
82.04.297 and 1997 c 304 s 4 are each amended to read as follows:
(1)
The provision of internet services is ((a selected business service activity
and)) subject to tax under RCW 82.04.290(((1), but if RCW 82.04.055 is
repealed then the provision of internet services is taxable under the general
service business and occupation tax classification of RCW 82.04.290)) (2).
(2)
"Internet" means the international computer network of both federal
and nonfederal interoperable packet switched data networks, including the
graphical subnetwork called the world wide web.
(3)
"Internet service" means a service that includes computer processing
applications, provides the user with additional or restructured information, or
permits the user to interact with stored information through the internet or a
proprietary subscriber network. "Internet service" includes
provision of internet electronic mail, access to the internet for information
retrieval, and hosting of information for retrieval over the internet or the graphical
subnetwork called the world wide web.
EXPLANATORY
NOTE
RCW 82.04.290 was amended by
1997 c 7 s 2, deleting subsection (1) and RCW 82.04.055 was repealed by 1997 c
7 s 5. The "general service business and occupation tax
classification" became RCW 82.04.290(2).
Sec.
6. RCW
82.04.340 and 1988 c 19 s 4 are each amended to read as follows:
This
chapter shall not apply to any person in respect to the business of conducting
boxing contests and sparring or wrestling matches and exhibitions for the
conduct of which a license must be secured from the ((state boxing
commission)) department of licensing.
EXPLANATORY
NOTE
The "state boxing
commission" was redesignated the "state professional athletic
commission" by 1989 c 127, and was subsequently abolished and powers and
duties transferred to the department of licensing pursuant to 1993 c 278.
Sec.
7. RCW
82.04.4452 and 1997 c 7 s 4 are each amended to read as follows:
(1)
In computing the tax imposed under this chapter, a credit is allowed for each
person whose research and development spending during the year in which the
credit is claimed exceeds 0.92 percent of the person's taxable amount during
the same calendar year.
(2)
The credit is equal to the greater of the amount of qualified research and
development expenditures of a person or eighty percent of amounts received by a
person other than a public educational or research institution in compensation
for the conduct of qualified research and development, multiplied by the rate
provided in RCW 82.04.260(((6))) (3) in the case of a nonprofit
corporation or nonprofit association engaging within this state in research and
development, and the rate provided in RCW 82.04.290(2) for every other person.
(3)
Any person entitled to the credit provided in subsection (2) of this section as
a result of qualified research and development conducted under contract may
assign all or any portion of the credit to the person contracting for the
performance of the qualified research and development.
(4)
The credit, including any credit assigned to a person under subsection (3) of
this section, shall be taken against taxes due for the same calendar year in
which the qualified research and development expenditures are incurred. The
credit, including any credit assigned to a person under subsection (3) of this
section, for each calendar year shall not exceed the lesser of two million
dollars or the amount of tax otherwise due under this chapter for the calendar
year.
(5)
Any person taking the credit, including any credit assigned to a person under
subsection (3) of this section, whose research and development spending during
the calendar year in which the credit is claimed fails to exceed 0.92 percent
of the person's taxable amount during the same calendar year shall be liable
for payment of the additional taxes represented by the amount of credit taken
together with interest, but not penalties. Interest shall be due at the rate
provided for delinquent excise taxes retroactively to the date the credit was
taken until the taxes are paid. Any credit assigned to a person under
subsection (3) of this section that is disallowed as a result of this section
may be taken by the person who performed the qualified research and development
subject to the limitations set forth in subsection (4) of this section.
(6)
Any person claiming the credit, and any person assigning a credit as provided
in subsection (3) of this section, shall file an affidavit form prescribed by
the department which shall include the amount of the credit claimed, an
estimate of the anticipated qualified research and development expenditures
during the calendar year for which the credit is claimed, an estimate of the
taxable amount during the calendar year for which the credit is claimed, and such
additional information as the department may prescribe.
(7)
A person claiming the credit shall agree to supply the department with
information necessary to measure the results of the tax credit program for
qualified research and development expenditures.
(8)
The department shall use the information required under subsection (7) of this
section to perform three assessments on the tax credit program authorized under
this section. The assessments will take place in 1997, 2000, and 2003. The
department shall prepare reports on each assessment and deliver their reports
by September 1, 1997, September 1, 2000, and September 1, 2003. The
assessments shall measure the effect of the program on job creation, the number
of jobs created for Washington residents, company growth, the introduction of
new products, the diversification of the state's economy, growth in research
and development investment, the movement of firms or the consolidation of
firms' operations into the state, and such other factors as the department
selects.
(9)
For the purpose of this section:
(a)
"Qualified research and development expenditures" means operating
expenses, including wages, compensation of a proprietor or a partner in a
partnership as determined under rules adopted by the department, benefits,
supplies, and computer expenses, directly incurred in qualified research and
development by a person claiming the credit provided in this section. The term
does not include amounts paid to a person other than a public educational or research
institution to conduct qualified research and development. Nor does the term
include capital costs and overhead, such as expenses for land, structures, or
depreciable property.
(b)
"Qualified research and development" shall have the same meaning as in
RCW 82.63.010.
(c)
"Research and development spending" means qualified research and
development expenditures plus eighty percent of amounts paid to a person other
than a public educational or research institution to conduct qualified research
and development.
(d)
"Taxable amount" means the taxable amount subject to the tax imposed
in this chapter required to be reported on the person's combined excise tax
returns during the year in which the credit is claimed, less any taxable amount
for which a credit is allowed under RCW 82.04.440.
(10)
This section ((shall)) expires December 31, 2004.
EXPLANATORY
NOTE
RCW 82.04.260 was amended by
1998 c 312 s 5, changing subsection (6) to subsection (3).
Sec.
8. RCW
82.08.0291 and 1994 c 85 s 1 are each amended to read as follows:
The
tax imposed by RCW 82.08.020 shall not apply to the sale of amusement and
recreation services, or personal services specified in RCW 82.04.050(3)(((h)))
(g), by a nonprofit youth organization, as defined in RCW 82.04.4271, to
members of the organization; nor shall the tax apply to physical fitness
classes provided by a local government.
EXPLANATORY
NOTE
RCW 82.04.050 was amended by
1996 c 148 s 1, changing subsection (3)(h) to subsection (3)(g).
Sec.
9. RCW
82.12.820 and 1997 c 450 s 3 are each amended to read as follows:
(1)
Wholesalers or third-party warehousers who own or operate warehouses or grain
elevators, and retailers who own or operate distribution centers, and who have
paid the tax levied under RCW 82.12.020 on:
(a)
Material-handling equipment and racking equipment; or
(b)
Materials incorporated in the construction of a warehouse or grain elevator,
are eligible for an exemption on tax paid in the form of a remittance or credit
against tax owed. The amount of the remittance or credit is computed under
subsection (2) of this section and is based on the state share of use tax.
(2)(a)
A person claiming an exemption from state tax in the form of a remittance under
this section must pay the tax imposed by RCW 82.12.020 to the department. The
person may then apply to the department for remittance of all or part of the
tax paid under RCW 82.12.020. For grain elevators with bushel capacity of one
million but less than two million, the remittance is equal to fifty percent of
the amount of tax paid. For warehouses with square footage of two hundred
thousand and for grain elevators with bushel capacity of two million or more,
the remittance is equal to one hundred percent of the amount of tax paid for
qualifying construction materials, and fifty percent of the amount of tax paid
for qualifying material-handling equipment and racking equipment.
(b)
The department shall determine eligibility under this section based on
information provided by the buyer and through audit and other administrative
records. The buyer shall on a quarterly basis submit an information sheet, in
a form and manner as required by the department by rule, specifying the amount
of exempted tax claimed and the qualifying purchases or acquisitions for which
the exemption is claimed. The buyer shall retain, in adequate detail to enable
the department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents describing
the material-handling equipment and racking equipment; location and size of
warehouses, if applicable; and construction invoices and documents.
(c)
The department shall on a quarterly basis remit or credit exempted amounts to
qualifying persons who submitted applications during the previous quarter.
(3)
Warehouse, grain elevators, and material-handling equipment and racking
equipment for which an exemption, credit, or deferral has been or is being
received under chapter 82.60, 82.61, 82.62, or 82.63 RCW or RCW 82.08.02565 or
82.12.02565 are not eligible for any remittance under this section. Materials
incorporated in warehouses and grain elevators upon which construction was
initiated prior to May 20, 1997, are not eligible for a remittance under this
section.
(4)
The lessor or owner of the warehouse or grain elevator is not eligible for a
remittance or credit under this section unless the underlying ownership of the
warehouse or grain elevator and material‑handling equipment and racking
equipment vests exclusively in the same person, or unless the lessor by written
contract agrees to pass the economic benefit of the exemption to the lessee in
the form of reduced rent payments.
(5)
The definitions in RCW 82.08.820 apply to this section.
EXPLANATORY
NOTE
The language being added
appears to have been inadvertently removed in the drafting process. Compare
with RCW 82.08.820(1).
Sec.
10. RCW
82.14.360 and 1995 3rd sp.s. c 1 s 201 are each amended to read as follows:
(1)
The legislative authority of a county with a population of one million or more
may impose a special stadium sales and use tax upon the retail sale or use
within the county by restaurants, taverns, and bars of food and beverages that
are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the
tax shall not exceed five-tenths of one percent of the selling price in the
case of a sales tax, or value of the article used in the case of a use tax.
The tax imposed under this subsection is in addition to any other taxes
authorized by law and shall not be credited against any other tax imposed upon
the same taxable event. As used in this section, "restaurant" does
not include grocery stores, mini-markets, or convenience stores.
(2)
The legislative authority of a county with a population of one million or more
may impose a special stadium sales and use tax upon retail car rentals within
the county that are taxable by the state under chapters 82.08 and 82.12 RCW.
The rate of the tax shall not exceed two percent of the selling price in the
case of a sales tax, or rental value of the vehicle in the case of a use tax.
The tax imposed under this subsection is in addition to any other taxes
authorized by law and shall not be credited against any other tax imposed upon
the same taxable event.
(3)
The revenue from the taxes imposed under this section shall be used for the
purpose of principal and interest payments on bonds, issued by the county, to
acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate
a baseball stadium. Revenues from the taxes authorized in this section may be
used for design and other preconstruction costs of the baseball stadium until
bonds are issued for the baseball stadium. The county shall issue bonds, in an
amount determined to be necessary by the public facilities district, for the
district to acquire, construct, own, and equip the baseball stadium. The county
shall have no obligation to issue bonds in an amount greater than that which
would be supported by the tax revenues under this section, RCW 82.14.0485, and
36.38.010(((3))) (4) (a) and (b). If the revenue from the taxes
imposed under this section exceeds the amount needed for such principal and
interest payments in any year, the excess shall be used solely:
(a)
For early retirement of the bonds issued for the baseball stadium; and
(b)
If the revenue from the taxes imposed under this section exceeds the amount
needed for the purposes in (a) of this subsection in any year, the excess shall
be placed in a contingency fund which may only be used to pay unanticipated
capital costs on the baseball stadium, excluding any cost overruns on initial
construction.
(4)
The taxes authorized under this section shall not be collected after June 30,
1997, unless the county executive has certified to the department of revenue
that a professional major league baseball team has made a binding and legally
enforceable contractual commitment to:
(a)
Play at least ninety percent of its home games in the stadium for a period of
time not shorter than the term of the bonds issued to finance the initial
construction of the stadium;
(b)
Contribute forty-five million dollars toward the reasonably necessary
preconstruction costs including, but not limited to architectural, engineering,
environmental, and legal services, and the cost of construction of the stadium,
or to any associated public purpose separate from bond-financed property,
including without limitation land acquisition, parking facilities, equipment,
infrastructure, or other similar costs associated with the project, which
contribution shall be made during a term not to exceed the term of the bonds
issued to finance the initial construction of the stadium. If all or part of
the contribution is made after the date of issuance of the bonds, the team
shall contribute an additional amount equal to the accruing interest on the
deferred portion of the contribution, calculated at the interest rate on the
bonds maturing in the year in which the deferred contribution is made. No part
of the contribution may be made without the consent of the county until a
public facilities district is created under chapter 36.100 RCW to acquire, construct,
own, remodel, maintain, equip, reequip, repair, and operate a baseball
stadium. To the extent possible, contributions shall be structured in a manner
that would allow for the issuance of bonds to construct the stadium that are
exempt from federal income taxes; and
(c)
Share a portion of the profits generated by the baseball team from the
operation of the professional franchise for a period of time equal to the term
of the bonds issued to finance the initial construction of the stadium, after
offsetting any losses incurred by the baseball team after the effective date of
chapter 14, Laws of 1995 1st sp. sess. Such profits and the portion to be
shared shall be defined by agreement between the public facilities district and
the baseball team. The shared profits shall be used to retire the bonds issued
to finance the initial construction of the stadium. If the bonds are retired
before the expiration of their term, the shared profits shall be paid to the
public facilities district.
(5)
No tax may be collected under this section before January 1, 1996. Before
collecting the taxes under this section or issuing bonds for a baseball
stadium, the county shall create a public facilities district under chapter
36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip,
repair, and operate a baseball stadium.
(6)
The county shall assemble such real property as the district determines to be
necessary as a site for the baseball stadium. Property which is necessary for
this purpose that is owned by the county on October 17, 1995, shall be
contributed to the district, and property which is necessary for this purpose
that is acquired by the county on or after October 17, 1995, shall be conveyed
to the district.
(7)
The proceeds of any bonds issued for the baseball stadium shall be provided to
the district.
(8)
As used in this section, "baseball stadium" means "baseball
stadium" as defined in RCW 82.14.0485.
(9)
The taxes imposed under this section shall expire when the bonds issued for the
construction of the baseball stadium are retired, but not later than twenty
years after the taxes are first collected.
EXPLANATORY
NOTE
RCW 36.38.010 was amended by
1997 c 220 s 301, changing subsection (3)(a) and (b) to subsection (4)(a) and
(b).
Sec.
11. RCW
82.18.040 and 1989 c 431 s 85 are each amended to read as follows:
Taxes
collected under this chapter shall be held in trust until paid to the state.
((Except for taxes received under RCW 82.18.100,)) Taxes ((so))
received by the state shall be deposited in the public works assistance account
created in RCW 43.155.050. Any person collecting the tax who appropriates or
converts the tax collected shall be guilty of a gross misdemeanor if the money
required to be collected is not available for payment on the date payment is
due. If a taxpayer fails to pay the tax imposed by this chapter to the person
charged with collection of the tax and the person charged with collection fails
to pay the tax to the department, the department may, in its discretion,
proceed directly against the taxpayer for collection of the tax.
The
tax shall be due from the taxpayer within twenty-five days from the date the
taxpayer is billed by the person collecting the tax.
The
tax shall be due from the person collecting the tax at the end of the tax
period in which the tax is received from the taxpayer. If the taxpayer remits
only a portion of the total amount billed for taxes, consideration, and related
charges, the amount remitted shall be applied first to payment of the solid
waste collection tax and this tax shall have priority over all other claims to
the amount remitted.
EXPLANATORY
NOTE
RCW
82.18.100 expired July 1, 1995.
Sec.
12. RCW
82.34.050 and 1975 1st ex.s. c 158 s 1 are each amended to read as follows:
(1)
The original acquisition of a facility by the holder of a certificate shall be
exempt from sales tax imposed by chapter 82.08 RCW and use tax imposed by
chapter 82.12 RCW when the due date for payment of such taxes is subsequent to
the effective date of the certificate: PROVIDED, That the exemption of this
section shall not apply to servicing, maintenance, repairs, and replacement of
parts after a facility is complete and placed in operation. Sales and use
taxes paid by a holder of a certificate with respect to expenditures incurred
for acquisition of a facility prior to the issuance of a certificate covering
such facility may be claimed as a tax credit as provided in subsection (2) of
this section.
(2)
Subsequent to July 30, 1967 the holder of the certificate may, in lieu of
accepting the tax exemption provided for in this section, elect to take a tax
credit in the total amount of the exemption for the facility covered by such
certificate against any future taxes to be paid pursuant to chapters 82.04,
82.12 and 82.16 RCW((: PROVIDED, That on and after July 30, 1967 if such
person elects to take a tax credit for a facility under this subsection he may
not take further credit under RCW 82.04.435)).
EXPLANATORY
NOTE
RCW 82.04.435 was decodified
pursuant to 1997 c 156 s 10.
Sec.
13. RCW
82.36.020 and 1998 c 176 s 7 are each amended to read as follows:
(1)
There is hereby levied and imposed upon motor vehicle fuel users a tax at the
rate computed in the manner provided in RCW 82.36.025 on each gallon of motor
vehicle fuel.
(2)
The tax imposed by subsection (1) of this section is imposed when any of the
following occurs:
(a)
Motor vehicle fuel is removed in this state from a terminal if the motor
vehicle fuel is removed at the rack unless the removal is to a licensed
exporter for direct delivery to a destination outside of the state;
(b)
Motor vehicle fuel is removed in this state from a refinery if either of the
following applies:
(i)
The removal is by bulk transfer and the refiner or the owner of the motor
vehicle fuel immediately before the removal is not a licensee; or
(ii)
The removal is at the refinery rack unless the removal is to a licensed
exporter for direct delivery to a destination outside of the state;
(c)
Motor vehicle fuel enters into this state for sale, consumption, use, or
storage if either of the following applies:
(i)
The entry is by bulk transfer and the importer is not a licensee; or
(ii)
The entry is not by bulk transfer;
(d)
Motor vehicle fuel is removed in this state to an unlicensed entity unless
there was a prior taxable removal, entry, or sale of the motor vehicle fuel;
(e)
Blended motor vehicle fuel is removed or sold in this state by the blender of
the fuel. The number of gallons of blended motor vehicle fuel subject to the
tax is the difference between the total number of gallons of blended motor
vehicle fuel removed or sold and the number of gallons of previously taxed
motor vehicle fuel used to produce the blended motor vehicle fuel.
(3)
The proceeds of the motor vehicle fuel excise tax ((collected after the
deductions for payments and expenditures as provided in RCW 46.68.090))
shall be distributed as provided in RCW ((46.68.100)) 46.68.090.
EXPLANATORY
NOTE
RCW 46.68.100 was repealed by
1999 sp.s. c 1 s 618.
Sec.
14. RCW
82.36.130 and 1998 c 311 s 11 and 1998 c 176 s 24 are each reenacted to read as
follows:
If
any licensee is in default for more than ten days in the payment of any excise
taxes or penalties thereon, the director shall issue a warrant directed to the
sheriff of any county of the state commanding the sheriff to levy upon and sell
the goods and chattels of the licensee, without exemption, found within the
sheriff's jurisdiction, for the payment of the amount of such delinquency, with
the added penalties and interest and the cost of executing the warrant, and to
return such warrant to the director and to pay the director the money collected
by virtue thereof within the time to be therein specified, which shall not be
less than twenty nor more than sixty days from the date of the warrant. The
sheriff to whom the warrant is directed shall proceed upon it in all respects
and with like effect and in the same manner as prescribed by law in respect to
executions issued against goods and chattels upon judgment by a court of record
and shall be entitled to the same fees for the sheriff's services to be collected
in the same manner.
EXPLANATORY
NOTE
RCW 82.36.130 was amended
twice during the 1998 legislative session, each without reference to the
other. These amendments have been merged in a manner that reflects the intent
of both. The effect of 1998 c 176 s 24 was to provide gender neutral
references and update statutory language which can be easily merged, either in
substance or in effect, with the 1998 c 311 s 11 changes to the same section.
Sec.
15. RCW
82.45.060 and 1987 c 472 s 14 are each amended to read as follows:
(((1)))
There is imposed an excise tax upon each sale of real property at the rate of
one and twenty-eight one-hundredths percent of the selling price. An amount
equal to seven and seven-tenths percent of the proceeds of this tax to the
state treasurer shall be deposited in the public works assistance account
created in RCW 43.155.050.
(((2)
There is imposed an additional excise tax through June 30, 1989, upon each sale
of real property at the rate of six one-hundredths of one percent of the
selling price. The tax imposed under this subsection shall be deposited in the
conservation area account under RCW 79.71.110.))
EXPLANATORY
NOTE
Subsection (2), by its own
words, is obsolete.
Sec.
16. RCW
82.46.021 and 1983 c 99 s 3 are each amended to read as follows:
Any
referendum petition to repeal a county or city ordinance imposing a tax or
altering the rate of the tax authorized under RCW 82.46.010(((2))) (3)
shall be filed with a filing officer, as identified in the ordinance, within
seven days of passage of the ordinance. Within ten days, the filing officer
shall confer with the petitioner concerning form and style of the petition,
issue an identification number for the petition, and write a ballot title for
the measure. The ballot title shall be posed as a question so that an
affirmative answer to the question and an affirmative vote on the measure
results in the tax or tax rate increase being imposed and a negative answer to
the question and a negative vote on the measure results in the tax or tax rate
increase not being imposed. The petitioner shall be notified of the
identification number and ballot title within this ten-day period.
After
this notification, the petitioner shall have thirty days in which to secure on
petition forms the signatures of not less than fifteen percent of the
registered voters of the county for county measures, or not less than fifteen
percent of the registered voters of the city for city measures, and to file the
signed petitions with the filing officer. Each petition form shall contain the
ballot title and the full text of the measure to be referred. The filing
officer shall verify the sufficiency of the signatures on the petitions. If
sufficient valid signatures are properly submitted, the filing officer shall
submit the referendum measure to the county or city voters at a general or
special election held on one of the dates provided in RCW 29.13.010 as
determined by the county legislative authority or city council, which election
shall not take place later than one hundred twenty days after the signed
petition has been filed with the filing officer.
After
April 22, 1983, the referendum procedure provided for in this section shall be
the exclusive method for subjecting any county or city ordinance imposing a tax
or increasing the rate under RCW 82.46.010(((2))) (3) to a
referendum vote.
Any
county or city tax authorized under RCW 82.46.010(((2))) (3) that
has been imposed prior to April 22, 1983, is not subject to the referendum
procedure provided for in this section.
EXPLANATORY
NOTE
RCW 82.46.010 was amended by
1992 c 221 s 1, changing subsection (2) to subsection (3).
Sec.
17. RCW
82.46.030 and 1992 c 221 s 2 are each amended to read as follows:
(1)
The county treasurer shall place one percent of the proceeds of the taxes
imposed under this chapter in the county current expense fund to defray costs
of collection.
(2)
The remaining proceeds from the county tax under RCW 82.46.010(((1))) (2)
shall be placed in a county capital improvements fund. The remaining proceeds
from city or town taxes under RCW 82.46.010(((1))) (2) shall be
distributed to the respective cities and towns monthly and placed by the city
treasurer in a municipal capital improvements fund.
(3)
This section does not limit the existing authority of any city, town, or county
to impose special assessments on property specially benefited thereby in the
manner prescribed by law.
EXPLANATORY
NOTE
RCW 82.46.010(1) was
renumbered RCW 82.46.010(2) by 1992 c 221 s 1.
Sec.
18. RCW
82.49.030 and 1991 sp.s. c 16 s 925 are each amended to read as follows:
(1)
The excise tax imposed under this chapter is due and payable to the department
of licensing or its agents at the time of registration of a vessel. The
department of licensing shall not issue or renew a registration for a vessel
until the tax is paid in full.
(2)
The excise tax collected under this chapter shall be deposited in the general
fund.
(((3)
For the 1993‑95 fiscal biennium, the watercraft excise tax revenues
exceeding five million dollars in each fiscal year, but not exceeding six
million dollars, may, subject to appropriation by the legislature, be used for
the purposes specified in RCW 88.12.450.))
EXPLANATORY
NOTE
Subsection (3), by its own
words, is obsolete.
Sec.
19. RCW
82.62.090 and 1999 c 311 s 304 are each amended to read as follows:
(1)
A person is not eligible to receive a credit under this chapter if the person
is receiving credit for the same position under ((section 303 of this act))
RCW 82.04.4456 or ((RCW)) 82.04.44525.
(2)
This section expires December 31, 2003.
EXPLANATORY
NOTE
The reference to
"section 303 of this act" appears to be erroneous. Section 302 of
this act was apparently intended which was codified as RCW 82.04.4456.
Sec.
20. RCW
82.80.020 and 1998 c 281 s 1 are each amended to read as follows:
(1)
The legislative authority of a county, or subject to subsection (7) of this
section, a qualifying city or town located in a county that has not imposed a
fifteen-dollar fee under this section, may fix and impose an additional fee,
not to exceed fifteen dollars per vehicle, for each vehicle that is subject to
license fees under RCW 46.16.060 and for each vehicle that is subject to RCW
46.16.070 with an unladen weight of six thousand pounds or less, and that is
determined by the department of licensing to be registered within the
boundaries of the county.
(2)
The department of licensing shall administer and collect the fee. The
department shall deduct a percentage amount, as provided by contract, not to
exceed two percent of the taxes collected, for administration and collection
expenses incurred by it. The remaining proceeds shall be remitted to the
custody of the state treasurer for monthly distribution under RCW 82.80.080.
(3)
The proceeds of this fee shall be used strictly for transportation purposes in
accordance with RCW 82.80.070.
(4)
A county or qualifying city or town imposing this fee or initiating an
exemption process shall delay the effective date at least six months from the
date the ordinance is enacted to allow the department of licensing to implement
administration and collection of or exemption from the fee.
(5)
The legislative authority of a county or qualifying city or town may develop
and initiate an exemption process of the fifteen dollar fee for the registered
owners of vehicles residing within the boundaries of the county or qualifying
city or town: (a) Who are sixty-one years old or older at the time payment of
the fee is due and whose household income for the previous calendar year is
less than an amount prescribed by the county or qualifying city or town
legislative authority; or (b) who have a physical disability.
(6)
The legislative authority of a county or qualifying city or town shall develop
and initiate an exemption process of the fifteen-dollar fee for vehicles registered
within the boundaries of the county that are licensed under RCW 46.16.374.
(7)
For purposes of this section, a "qualifying city or town" means a
city or town residing within a county having a population of greater than
seventy-five thousand in which is located all or part of a national monument.
A qualifying city or town may impose the fee authorized in subsection (1) of
this section subject to the following conditions and limitations:
(a)
The city or town may impose the fee only if authorized to do so by a majority
of voters voting at a general or special election on a proposition for that
purpose. At a minimum, the ballot measure shall contain: (i) A description of
the transportation project proposed for funding, properly identified by mileposts
or other designations that specify the project parameters; (ii) the proposed
number of months or years necessary to fund the city or town's share of the
project cost; and (iii) the amount of fee to be imposed for the project.
(b)
The city or town may not impose a fee that, if combined with the county fee,
exceeds fifteen dollars. If a county imposes or increases a fee under this
section that, if combined with the fee imposed by a city or town, exceeds
fifteen dollars, the city or town fee shall be reduced or eliminated as needed
so that in no city or town does the combined fee exceed fifteen dollars. All
revenues from county-imposed fees shall be distributed as called for in RCW ((82.80.020))
82.80.080.
(c)
Any fee imposed by a city or town under this section shall expire at the end of
the term of months or years provided in the ballot measure, or when the city or
town's bonded indebtedness on the project is retired, whichever is sooner.
(8)
The fee imposed under subsection (7) of this section shall apply only to
renewals and shall not apply to ownership transfer transactions.
EXPLANATORY
NOTE
RCW 82.80.080 refers to the
distribution of taxes and was apparently intended.
Sec.
21. RCW
82.80.050 and 1991 c 141 s 2 are each amended to read as follows:
A
city or town electing to own, construct, maintain, operate, and preserve its
streets as a separate street utility may levy periodic charges for the use or
availability of the streets in a total annual amount of up to fifty percent of
the actual costs for maintenance, operation, and preservation of facilities
under the jurisdiction of the street utility. The rates charged for the use
must be uniform for the same class of service and all business and residential
properties must be subject to the utility charge. Charges imposed on
businesses shall be measured solely by the number of employees and shall not
exceed the equivalent of two dollars per full-time equivalent employee per
month. Charges imposed against owners or occupants of residential property
shall not exceed two dollars per month per housing unit as defined in RCW
35.95.040. Charges authorized in this section shall not be imposed against
owners of property: (1) Exempt under RCW 84.36.010; (2) exempt from the leasehold
tax under chapter 82.29A RCW; or (3) used for nonprofit or sectarian purposes,
which if said property were owned by such organization would qualify for
exemption under chapter 84.36 RCW. The charges shall not be computed on the
basis of an ad valorem charge on the underlying real property and
improvements. This section shall not be used as a basis to directly or
indirectly charge transportation impact fees or mitigation fees of any kind
against new development. A city or town may contract with any other utility or
local government to provide for billing and collection of the street utility
charges.
In
classifying service furnished within the general categories of business and
residential, the city or town legislative authority may in its discretion
consider any or all of the following factors: The difference in cost of
service to the various users or traffic generators; location of the various
users or traffic generators within the city or town; the difference in cost of
maintenance, operation, construction, repair, and replacement of the various
parts of the enterprise and facility; the different character of the service
furnished to various users or traffic generators within the city or town; the
size and quality of the street service furnished; the time of use or traffic
generation; capital contributions made to the facility including but not
limited to special assessments; and any other matters that present a reasonable
difference as a ground for distinction, or the entire category of business or
residential may be established as a single class. The city or town may reduce
or exempt charges on residential properties to the extent of their occupancy by
low-income senior citizens and ((low-income disabled citizens)) other
low-income citizens as provided in RCW 74.38.070(1), or to the extent of
their occupancy by the needy or infirm.
The
charges shall be charges against the property and the use thereof and shall
become liens and be enforced in the same manner as rates and charges for the
use of systems of sewerage under chapter 35.67 RCW.
Any
city or town ordinance or resolution creating a street utility must contain a
provision granting to any business a credit against any street utility charge
the full amount of any commuter or employer tax paid for transportation
purposes by that business.
EXPLANATORY
NOTE
The term "low-income
disabled citizens" was changed to "other low-income citizens" by
1998 c 300 s 8.
Sec.
22. RCW
84.26.080 and 1999 c 233 s 19 are each amended to read as follows:
(1)
When property has once been classified and valued as eligible historic
property, it shall remain so classified and be granted the special valuation
provided by RCW 84.26.070 for ten years or until the property is disqualified
by:
(a)
Notice by the owner to the assessor to remove the special valuation;
(b)
Sale or transfer to an ownership making it exempt from property taxation; or
(c)
Removal of the special valuation by the assessor upon determination by the
local review board that the property no longer qualifies as historic property
or that the owner has failed to comply with the conditions established under
RCW 84.26.050.
(2)
The sale or transfer to a new owner or transfer by reason of death of a former
owner to a new owner does not disqualify the property from the special
valuation provided by RCW 84.26.070 if:
(a)
The property continues to qualify as historic property; and
(b)
The new owner files a notice of compliance with the assessor of the county in
which the property is located. Notice of compliance forms shall be prescribed
by the state department of revenue and supplied by the county assessor. The
notice shall contain a statement that the new owner is aware of the special
valuation and of the potential tax liability involved when the property ceases
to be valued as historic property under this chapter. The signed notice of
compliance shall be attached to the real estate excise tax affidavit provided
for in RCW ((82.45.120)) 82.45.150. If the notice of compliance
is not signed by the new owner and attached to the real estate excise tax
affidavit, all additional taxes calculated pursuant to RCW 84.26.090 shall become
due and payable by the seller or transferor at time of sale. The county
auditor shall not accept an instrument of conveyance of specially valued
historic property for filing or recording unless the new owner has signed the
notice of compliance or the additional tax has been paid, as evidenced by the
real estate excise tax stamp affixed thereto by the treasurer.
(3)
When the property ceases to qualify for the special valuation the owner shall
immediately notify the state or local review board.
(4)
Before the additional tax or penalty imposed by RCW 84.26.090 is levied, in the
case of disqualification, the assessor shall notify the taxpayer by mail,
return receipt requested, of the disqualification.
EXPLANATORY
NOTE
RCW 82.45.120 was repealed by
1993 sp.s. c 25 s 512. RCW 82.45.150 refers to real estate excise tax
affidavits.
Sec.
23. RCW
84.34.065 and 1998 c 320 s 8 are each amended to read as follows:
The
true and fair value of farm and agricultural land((, including land
classified under section 2, chapter 320, Laws of 1998,)) shall be
determined by consideration of the earning or productive capacity of comparable
lands from crops grown most typically in the area averaged over not less than
five years, capitalized at indicative rates. The earning or productive
capacity of farm and agricultural lands shall be the "net cash
rental", capitalized at a "rate of interest" charged on long
term loans secured by a mortgage on farm or agricultural land plus a component
for property taxes. The current use value of land under RCW 84.34.020(2)(d)
shall be established as: The prior year's average value of open space farm and
agricultural land used in the county plus the value of land improvements such
as septic, water, and power used to serve the residence. This shall not be
interpreted to require the assessor to list improvements to the land with the
value of the land.
For
the purposes of the above computation:
(1)
The term "net cash rental" shall mean the average rental paid on an
annual basis, in cash, for the land being appraised and other farm and
agricultural land of similar quality and similarly situated that is available
for lease for a period of at least three years to any reliable person without
unreasonable restrictions on its use for production of agricultural crops.
There shall be allowed as a deduction from the rental received or computed any
costs of crop production charged against the landlord if the costs are such as
are customarily paid by a landlord. If "net cash rental" data is not
available, the earning or productive capacity of farm and agricultural lands
shall be determined by the cash value of typical or usual crops grown on land
of similar quality and similarly situated averaged over not less than five
years. Standard costs of production shall be allowed as a deduction from the
cash value of the crops.
The
current "net cash rental" or "earning capacity" shall be
determined by the assessor with the advice of the advisory committee as
provided in RCW 84.34.145, and through a continuing internal study, assisted by
studies of the department of revenue. This net cash rental figure as it
applies to any farm and agricultural land may be challenged before the same
boards or authorities as would be the case with regard to assessed values on
general property.
(2)
The term "rate of interest" shall mean the rate of interest charged
by the farm credit administration and other large financial institutions
regularly making loans secured by farm and agricultural lands through mortgages
or similar legal instruments, averaged over the immediate past five years.
The
"rate of interest" shall be determined annually by a rule adopted by
the department of revenue and such rule shall be published in the state register
not later than January 1 of each year for use in that assessment year. The
department of revenue determination may be appealed to the state board of tax
appeals within thirty days after the date of publication by any owner of farm
or agricultural land or the assessor of any county containing farm and
agricultural land.
(3)
The "component for property taxes" shall be a figure obtained by
dividing the assessed value of all property in the county into the property
taxes levied within the county in the year preceding the assessment and
multiplying the quotient obtained by one hundred.
EXPLANATORY
NOTE
Section 2, chapter 320, Laws
of 1998 was vetoed by the governor.
Sec.
24. RCW
84.36.080 and 1998 c 335 s 5 are each amended to read as follows:
(1)
All ships and vessels which are exempt from excise tax under ((subsection
(2) of)) RCW 82.49.020(2) and excepted from the registration
requirements of ((subsection (10) of)) RCW 88.02.030(9) shall be
and are hereby made exempt from all ad valorem taxes, except taxes levied for
any state purpose.
(2)
All ships and vessels listed in the state or federal register of historical
places are exempt from all ad valorem taxes.
EXPLANATORY
NOTE
Makes a style change and RCW
88.02.030 was amended by 1997 c 83 s 1, changing subsection (10) to subsection
(9).
Sec.
25. RCW
84.36.379 and 1980 c 185 s 3 are each amended to read as follows:
The
legislature finds that the property tax exemption authorized by Article VII,
section 10 of the state Constitution should be made available on the basis of a
retired person's ability to pay property taxes. The legislature further finds
that the best measure of a retired person's ability to pay taxes is that
person's disposable income as defined in RCW 84.36.383(((6))).
EXPLANATORY
NOTE
RCW 84.36.383 was amended by
1994 sp.s. c 8 s 2, changing subsection (6) to subsection (5). The new
subsection reference will not be included since it is unnecessary. This will
prevent incorrect references from occurring every time the subsection numbering
in RCW 84.36.383 changes.
Sec.
26. RCW
84.38.100 and 1988 c 222 s 12 are each amended to read as follows:
Whenever
a person's special assessment and/or real property tax obligation is deferred
under the provisions of this chapter, the amount deferred and required to be
paid pursuant to RCW 84.38.120 shall become a lien in favor of the state upon
his or her property and shall have priority as provided in chapters 35.50 and
84.60 RCW: PROVIDED, That the interest of a mortgage or purchase contract
holder who is required to cosign a declaration of deferral under RCW 84.38.090,
shall have priority to said deferred lien. This lien may accumulate up to
eighty percent of the amount of the claimant's equity value in said property
and shall bear interest at the rate of eight percent per year from the time it
could have been paid before delinquency until said obligation is paid:
PROVIDED, That when taxes are deferred as provided in RCW ((84.64.030 or))
84.64.050, the amount shall bear interest at the rate of eight percent per year
from the date the declaration is filed until the obligation is paid. In the
case of a mobile home, the department of licensing shall show the state's lien
on the certificate of ownership for the mobile home. In the case of all other
property, the department of revenue shall file a notice of the deferral with
the county recorder or auditor.
EXPLANATORY
NOTE
RCW
84.64.030 was repealed by 1991 c 245 s 42.
Sec.
27. RCW
84.38.120 and 1988 c 222 s 13 are each amended to read as follows:
After
receipt of the notification from the county assessor of the amount of deferred
special assessments and/or real property taxes the department shall pay, from
amounts appropriated for that purpose, to the treasurers of such municipal
corporations said amounts, equivalent to the amount of special assessments
and/or real property taxes deferred, to be distributed to the local improvement
or taxing districts which levied the taxes so deferred: PROVIDED, That when
taxes are deferred as provided in RCW ((84.64.030 or)) 84.64.050, the
department shall pay to the treasurer of the county the amount equivalent to
all taxes, foreclosure costs, interest, and penalties accrued to the date the
declaration to defer is filed.
EXPLANATORY
NOTE
RCW 84.64.030 was repealed by
1991 c 245 s 42.
Sec.
28. RCW
84.40.405 and 1985 c 7 s 156 are each amended to read as follows:
The
department of revenue shall promulgate such rules and regulations, and
prescribe such procedures as it deems necessary to carry out RCW ((82.04.444,
82.04.445,)) 84.36.470, 84.36.473, ((84.36.475,)) 84.36.477, ((84.09.080,
and 84.52.015,)) and this section.
EXPLANATORY
NOTE
RCW 82.04.444 and 82.04.445
were repealed by 1997 c 156 s 11 and RCW 84.09.080, 84.36.475, and 84.52.015
were repealed by 1989 c 378 s 40.
Sec.
29. RCW
84.52.0502 and 1988 c 274 s 9 are each amended to read as follows:
The
department of revenue shall adopt such rules consistent with chapter 274, Laws
of 1988 as shall be necessary or desirable to permit its effective
administration. ((The rules shall provide how RCW 84.52.0501 shall apply to
a taxing district that has received authorization to increase its levy
according to RCW 84.52.100 and use the method that will be the least costly to
all taxing districts involved.))
EXPLANATORY
NOTE
RCW 84.52.0501 expired
December 31, 1989, and RCW 84.52.100 was repealed by 1990 c 234 s 5.
Sec.
30. RCW
84.68.010 and 1972 ex.s. c 84 s 3 are each amended to read as follows:
Injunctions
and restraining orders shall not be issued or granted to restrain the
collection of any tax or any part thereof, or the sale of any property for the
nonpayment of any tax or part thereof, except in the following cases:
(1)
Where the law under which the tax is imposed is void;
(2)
Where the property upon which the tax is imposed is exempt from taxation; or
(3)
Where the sale is a result of an error made by an officer or employee of the
county, and the board of county commissioners or other legislative authority of
the county ((has issued)) issues an order ((pursuant to the
provisions of RCW 84.64.145)).
EXPLANATORY
NOTE
RCW 84.64.145 was repealed by
1991 c 245 s 42.
NEW
SECTION. Sec. 31. The
following acts or parts of acts are each repealed:
(1) RCW
82.34.070 (Credits accumulated prior to July 30, 1967, pursuant
to RCW 82.04.435) and 1967 ex.s. c 139 s 7;
(2) RCW
84.56.190 (Penalty for failure to notify assessor or pay tax) and
1961 c 15 s 84.56.190;
(3) RCW
84.33.042 (Excise tax rate July 1, 1984, through June 30, 1985)
and 1984 c 204 s 3;
(4) RCW
84.33.043 (Excise tax rate July 1, 1985, through June 30, 1986)
and 1984 c 204 s 4;
(5) RCW
84.33.044 (Excise tax rate July 1, 1986, through June 30, 1987)
and 1984 c 204 s 5; and
(6) RCW
84.33.045 (Excise tax rate July 1, 1987, through June 30, 1988)
and 1984 c 204 s 6.
EXPLANATORY
NOTE
RCW 82.34.070 referred to tax credits provided in RCW
82.04.435 which was decodified pursuant to 1997 c 156 s 10. RCW 82.04.435
primarily addressed business activities occurring between 1964 and 1971.
RCW 84.56.190 provided penalties for certain failures
addressed in RCW 84.56.180 which was repealed by 1994 c 301 s 57. Therefore,
RCW 84.56.190 is obsolete.
The repealers in subsections (3) through (6) are
obsolete by their own words.
