AN ACT Relating to
rural economic development; reenacting and amending RCW 82.04.260; adding new
sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; and
creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
PART I: Dairy Products B&O Tax Exemption
NEW SECTION. Sec.
1. The purpose of sections 2
and 3 of this act is to provide a tax rate for persons who manufacture dairy
products that is commensurate to the rate imposed on certain other processors
of agricultural commodities. This tax rate applies to persons who manufacture
dairy products from raw materials such as fluid milk, dehydrated milk, or
byproducts of milk such as cream, buttermilk, whey, butter, or casein. It is
not the intent of the legislature to provide this tax rate to persons who use
dairy products as an ingredient or component of their manufactured product,
such as milk-based soups or pizza. It is the intent that persons who
manufacture products such as milk, cheese, yogurt, ice cream, whey, or whey
products be subject to this rate.
Sec. 2. RCW 82.04.260 and 1998 c
312 s 5 and 1998 c 311 s 2 are each reenacted and amended to read as follows:
(1) Upon every person
engaging within this state in the business of manufacturing:
(a) Wheat into flour,
barley into pearl barley, soybeans into soybean oil, canola into canola oil,
canola meal, or canola byproducts, or sunflower seeds into sunflower oil; as to
such persons the amount of tax with respect to such business shall be equal to
the value of the flour, pearl barley, oil, canola meal, or canola byproduct
manufactured, multiplied by the rate of 0.138 percent;
(b) Seafood products
which remain in a raw, raw frozen, or raw salted state at the completion of the
manufacturing by that person; as to such persons the amount of tax with respect
to such business shall be equal to the value of the products manufactured,
multiplied by the rate of 0.138 percent; ((and))
(c) By canning,
preserving, freezing, processing, or dehydrating fresh fruits and vegetables,
or selling at wholesale fresh fruits and vegetables canned, preserved, frozen,
processed, or dehydrated by the seller and sold to purchasers who transport in
the ordinary course of business the goods out of this state; as to such persons
the amount of tax with respect to such business shall be equal to the value of
the products canned, preserved, frozen, processed, or dehydrated multiplied by
the rate of 0.138 percent. As proof of sale to a person who transports in the
ordinary course of business goods out of this state, the seller shall annually
provide a statement in a form prescribed by the department and retain the
statement as a business record; and
(d) Dairy products
that as of the effective date of this section are identified in 21 C.F.R.,
chapter 1, parts 131, 133, and 135, including byproducts from the manufacturing
of the dairy products such as whey and casein; or selling the same to
purchasers who transport in the ordinary course of business the goods out of
state; as to such persons the tax imposed shall be equal to the value of the
products manufactured multiplied by the rate of 0.138 percent. As proof of
sale to a person who transports in the ordinary course of business goods out of
this state, the seller shall annually provide a statement in a form prescribed
by the department and retain the statement as a business record.
(2) Upon every person
engaging within this state in the business of splitting or processing dried
peas; as to such persons the amount of tax with respect to such business shall
be equal to the value of the peas split or processed, multiplied by the rate of
0.138 percent.
(3) Upon every
nonprofit corporation and nonprofit association engaging within this state in
research and development, as to such corporations and associations, the amount
of tax with respect to such activities shall be equal to the gross income
derived from such activities multiplied by the rate of 0.484 percent.
(4) Upon every person
engaging within this state in the business of slaughtering, breaking and/or
processing perishable meat products and/or selling the same at wholesale only
and not at retail; as to such persons the tax imposed shall be equal to the
gross proceeds derived from such sales multiplied by the rate of 0.138 percent.
(5) Upon every person
engaging within this state in the business of making sales, at retail or
wholesale, of nuclear fuel assemblies manufactured by that person, as to such
persons the amount of tax with respect to such business shall be equal to the
gross proceeds of sales of the assemblies multiplied by the rate of 0.275
percent.
(6) Upon every person
engaging within this state in the business of manufacturing nuclear fuel
assemblies, as to such persons the amount of tax with respect to such business
shall be equal to the value of the products manufactured multiplied by the rate
of 0.275 percent.
(7) Upon every person
engaging within this state in the business of acting as a travel agent or tour
operator; as to such persons the amount of the tax with respect to such
activities shall be equal to the gross income derived from such activities
multiplied by the rate of 0.275 percent.
(8) Upon every person
engaging within this state in business as an international steamship agent,
international customs house broker, international freight forwarder, vessel
and/or cargo charter broker in foreign commerce, and/or international air cargo
agent; as to such persons the amount of the tax with respect to only
international activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(9) Upon every person
engaging within this state in the business of stevedoring and associated
activities pertinent to the movement of goods and commodities in waterborne
interstate or foreign commerce; as to such persons the amount of tax with
respect to such business shall be equal to the gross proceeds derived from such
activities multiplied by the rate of 0.275 percent. Persons subject to
taxation under this subsection shall be exempt from payment of taxes imposed by
chapter 82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to the
conduct of goods and commodities in waterborne interstate or foreign commerce
are defined as all activities of a labor, service or transportation nature
whereby cargo may be loaded or unloaded to or from vessels or barges, passing
over, onto or under a wharf, pier, or similar structure; cargo may be moved to
a warehouse or similar holding or storage yard or area to await further
movement in import or export or may move to a consolidation freight station and
be stuffed, unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for delivery to
its consignee. Specific activities included in this definition are: Wharfage,
handling, loading, unloading, moving of cargo to a convenient place of delivery
to the consignee or a convenient place for further movement to export mode;
documentation services in connection with the receipt, delivery, checking,
care, custody and control of cargo required in the transfer of cargo; imported
automobile handling prior to delivery to consignee; terminal stevedoring and
incidental vessel services, including but not limited to plugging and unplugging
refrigerator service to containers, trailers, and other refrigerated cargo
receptacles, and securing ship hatch covers.
(10) Upon every person
engaging within this state in the business of disposing of low-level waste, as
defined in RCW 43.145.010; as to such persons the amount of the tax with
respect to such business shall be equal to the gross income of the business,
excluding any fees imposed under chapter 43.200 RCW, multiplied by the rate of
3.3 percent.
If the gross income of
the taxpayer is attributable to activities both within and without this state,
the gross income attributable to this state shall be determined in accordance
with the methods of apportionment required under RCW 82.04.460.
(11) Upon every person
engaging within this state as an insurance agent, insurance broker, or
insurance solicitor licensed under chapter 48.17 RCW; as to such persons, the
amount of the tax with respect to such licensed activities shall be equal to
the gross income of such business multiplied by the rate of 0.484 percent.
(12) Upon every person
engaging within this state in business as a hospital, as defined in chapter
70.41 RCW, that is operated as a nonprofit corporation or by the state or any
of its political subdivisions, as to such persons, the amount of tax with
respect to such activities shall be equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent
thereafter. The moneys collected under this subsection shall be deposited in
the health services account created under RCW 43.72.900.
PART II: Retail Sales Tax Exemption -
Poultry Farming
NEW SECTION. Sec.
3. 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 to farmers of propane or natural gas used
to heat structures used to house chickens. The propane or natural gas must be
used exclusively to heat the structures. The structures must be used
exclusively to house chickens that are sold as agricultural products.
(2) The exemption is
available only when the buyer provides the seller with an exemption certificate
in a form and manner prescribed by the department. The seller must retain a
copy of the certificate for the seller's files.
(3) The definitions in
this subsection apply to this section and section 4 of this act.
(a)
"Structures" means barns, sheds, and other similar buildings in which
chickens are housed.
(b) "Farmer"
has the same meaning as provided in RCW 82.04.213.
(c) "Agricultural
product" has the same meaning as provided in RCW 82.04.213.
NEW SECTION. Sec.
4. A new section is added
to chapter 82.12 RCW to read as follows:
(1) The provisions of
this chapter do not apply with respect to the use by a farmer of propane or
natural gas to heat structures used to house chickens. The propane or natural
gas must be used exclusively to heat the structures used to house chickens.
The structures must be used exclusively to house chickens that are sold as
agricultural products.
(2) The exemption
certificate, recordkeeping requirements, and definitions of section 3 of this
act apply to this section.
NEW SECTION. Sec.
5. 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 to a farmer of bedding materials used to
accumulate and facilitate the removal of chicken manure. The farmer must be
raising chickens that are sold as agricultural products.
(2) The exemption is
available only when the buyer provides the seller with an exemption certificate
in a form and manner prescribed by the department. The seller must retain a
copy of the certificate for the seller's files.
(3) The definitions in
this subsection apply to this section and section 6 of this act.
(a) "Bedding
materials" means wood shavings, straw, sawdust, shredded paper, and other
similar materials.
(b) "Farmer"
has the same meaning as provided in RCW 82.04.213.
(c) "Agricultural
product" has the same meaning as provided in RCW 82.04.213.
NEW SECTION. Sec.
6. A new section is added
to chapter 82.12 RCW to read as follows:
(1) The provisions of
this chapter do not apply with respect to the use by a farmer of bedding
materials used to accumulate and facilitate the removal of chicken manure. The
farmer must be raising chickens that are sold as agricultural products.
(2) The exemption
certificate, recordkeeping requirements, and definitions of section 5 of this
act apply to this section.
NEW
SECTION. Sec. 7. Part headings used in
this act are not any part of the law.
