H-3999.1  _______________________________________________

                          HOUSE BILL 2937

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Benson, Ahern, Mielke, Delvin, Esser, Barlean, Anderson and Nixon

Read first time 02/08/2002.  Referred to Committee on Finance.

Exempting expenditures by universities on research and development from sales and use taxation.

    AN ACT Relating to excise tax exemptions for research and development expenditures by universities; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

    (1) The tax levied by RCW 82.08.020 does not apply to sales of articles of tangible personal property or construction services purchased for research and development purposes by a university.

    (2) The definitions in this subsection apply for the purposes of this section and section 2 of this act.

    (a) "Construction service" means any sale or charge made for tangible personal property consumed or for labor and services rendered in respect to any activity specified in RCW 82.04.050(2) (b) or (c).

    (b) "Research and development" has the meaning provided in RCW 82.63.010.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.12 RCW to read as follows:

    (1) The provisions of this chapter do not apply in respect to the use of tangible personal property acquired for research and development purposes by a university.

    (2) The definitions in section 1 of this act apply to this section.

NEW SECTION. Sec. 3.  This act takes effect July 1, 2002.

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