H‑0680.2   _____________________________________________

HOUSE BILL 1191

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Carrell, Morris, DeBolt, Cairnes, Armstrong, Pennington, Conway, O'Brien and Haigh

Read first time 01/19/2001.  Referred to Committee on Technology, Telecommunications & Energy.

_1      AN ACT Relating to sales and use tax exemptions for electrical

_2  energy generating facilities; adding a new section to chapter

_3  82.08 RCW; adding a new section to chapter 82.12 RCW; and

_4  providing an effective date.

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

_6      NEW SECTION. Sec. 1.  A new section is added to chapter 82.08

_7  RCW to read as follows:

_8      (1) The definitions in this subsection apply for the purposes

_9  of this section.

10      (a) "Acquisition of equipment" means the equipment is under the

11  dominion and control of the recipient.

12      (b) "Eligible generating equipment" means equipment necessary

13  and integral to the operation of an eligible generating facility.

14      (c) "Eligible generating facility" means an electrical

15  generating facility that has a generating capacity of at least two

16  hundred kilowatts.

17      (d) "Facility" means structures that house, support, contain,

                               p. 1                       HB 1191

_1  or steady equipment essential to the generation of electricity,

_2  and includes structures used by personnel to provide exclusive

_3  support to the facility.

_4      (2) The tax imposed by RCW 82.08.020 does not apply to:

_5      (a) Site preparation or construction of an eligible generating

_6  facility;

_7      (b) Expansion or renovation of an existing facility if the

_8  expansion or renovation results in an eligible generating

_9  facility; or

10      (c) Acquisition and installation of eligible generating

11  equipment.

12      (3) The following are not exempt under this section:

13      (a) Maintenance or operation of a facility;

14      (b) Property with a useful life of less than one year, such as

15  consumables, supplies, and single-use items;

16      (c) Equipment used for administrative or sales functions, such

17  as furniture, filing cabinets, or computers; and

18      (d) Structures, or parts of structures, used for administrative

19  or sales functions.

20      NEW SECTION. Sec. 2.  A new section is added to chapter 82.12

21  RCW to read as follows:

22      (1) The provisions of this chapter do not apply with respect to

23  the use of eligible generating equipment or property used as

24  components of eligible generating facilities, as each are defined

25  in section 1 of this act.

26      (2) The following are not exempt under this section:

27      (a) Property used for maintenance or operation of a facility;

28      (b) Property with a useful life of less than one year, such as

29  consumables, supplies, and single-use items;

30      (c) Equipment used for administrative or sales functions, such

31  as furniture, filing cabinets, or computers; and

32      (d) Structures, or parts of structures, used for administrative

33  or sales functions.

34      NEW SECTION. Sec. 3.  This act takes effect October 1, 2001.

‑‑‑ END ‑‑‑

HB 1191                        p. 2