H‑0378.1   _____________________________________________

 

HOUSE BILL 1105

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Representatives Poulsen, Crouse, Morris, Casada, Ruderman, Esser, DeBolt, Anderson, B. Chandler, Simpson, Wood, Linville, Cooper, Bush, Santos, O'Brien, D. Schmidt, Grant, Romero, Haigh, Kenney, Cody, Lovick, Rockefeller, Murray, McDermott, Edmonds, Schual‑Berke, Kagi, Jackley, Hurst, Lantz and Kessler

 

Read first time 01/17/2001.  Referred to Committee on Technology, Telecommunications & Energy.

_1      AN ACT Relating to exempting electric generating facilities

_2  powered by wind, sun, or landfill gas from sales and use taxes;

_3  amending RCW 82.08.02567 and 82.12.02567; providing an effective

_4  date; providing expiration dates; and declaring an emergency.

     

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     

_6      Sec. 1.  RCW 82.08.02567 and 1999 c 358 s 4 are each amended to

_7  read as follows:

_8      (1) The tax levied by RCW 82.08.020 shall not apply to sales of

_9  machinery and equipment used directly in generating electricity

10  using wind, sun, or landfill gas as the principal source of power,

11  or to sales of or charges made for labor and services rendered in

12  respect to installing such machinery and equipment, but only if

13  the purchaser develops with such machinery, equipment, and labor a

14  facility capable of generating not less than two hundred

15  ((kilowatts)) watts of electricity and provides the seller with an

16  exemption certificate in a form and manner prescribed by the

17  department by rule.  The seller shall retain a copy of the

18  certificate for the seller's files.

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_1      (2) For purposes of this section and RCW 82.12.02567:

_2      (a) "Landfill gas" means biomass fuel of the type qualified for

_3  federal tax credits under 26 U.S.C. Sec. 29 collected from a

_4  landfill.  "Landfill" means a landfill as defined under RCW

_5  70.95.030;

_6      (b) "Machinery and equipment" means industrial fixtures,

_7  devices, and support facilities that are integral and necessary to

_8  the generation of electricity using wind, sun, or landfill gas as

_9  the principal source of power;

10      (c) "Machinery and equipment" does not include:  (i) Hand-

11  powered tools; (ii) property with a useful life of less than one

12  year; (iii) repair parts required to restore machinery and

13  equipment to normal working order; (iv) replacement parts that do

14  not increase productivity, improve efficiency, or extend the

15  useful life of machinery and equipment; (v) buildings; or (vi)

16  building fixtures that are not integral and necessary to the

17  generation of electricity that are permanently affixed to and

18  become a physical part of a building;

19      (d) Machinery and equipment is "used directly" in generating

20  electricity by wind energy, solar energy, or landfill gas power if

21  it provides any part of the process that captures the energy of

22  the wind, sun, or landfill gas, converts that energy to

23  electricity, and transforms or transmits that electricity for

24  entry into or operation in parallel with electric transmission and

25  distribution systems.

26      (3) This section expires June 30, ((2005)) 2009.

     

27      Sec. 2.  RCW 82.12.02567 and 1999 c 358 s 10 are each amended to

28  read as follows:

29      (1) The provisions of this chapter shall not apply with respect

30  to machinery and equipment used directly in generating not less

31  than two hundred ((kilowatts)) watts of electricity using wind,

32  sun, or landfill gas as the principal source of power.

33      (2) The definitions in RCW 82.08.02567 apply to this section.

34      (3) This section expires June 30, ((2005)) 2009.

     

35      NEW SECTION.  Sec. 3.  This act is necessary for the immediate

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_1  preservation of the public peace, health, or safety, or support of

_2  the state government and its existing public institutions, and

_3  takes effect July 1, 2001.

 

‑‑‑ END ‑‑‑

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