S‑0498.2   _____________________________________________

 

SENATE BILL 5619

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Senators Hewitt, T. Sheldon, Sheahan, Roach, McCaslin, Kline, Hochstatter, Oke, Honeyford, Winsley, Swecker and Long

 

Read first time 01/29/2001.  Referred to Committee on Ways & Means.

_1      AN ACT Relating to excluding self-service laundry from the

_2  definition of retail sale for excise tax purposes; amending RCW

_3  82.04.050; creating a new section; and providing an effective

_4  date.

     

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

     

_6      NEW SECTION.  Sec. 1.  The intent of this act is to provide

_7  relief for low-income families for their laundry costs.

     

_8      Sec. 2.  RCW 82.04.050 and 2000 2nd sp.s. c 4 s 23 are each amended

_9  to read as follows:

10      (1) "Sale at retail" or "retail sale" means every sale of

11  tangible personal property (including articles produced,

12  fabricated, or imprinted) to all persons irrespective of the

13  nature of their business and including, among others, without

14  limiting the scope hereof, persons who install, repair, clean,

15  alter, improve, construct, or decorate real or personal property

16  of or for consumers other than a sale to a person who presents a

17  resale certificate under RCW 82.04.470 and who:

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_1      (a) Purchases for the purpose of resale as tangible personal

_2  property in the regular course of business without intervening use

_3  by such person, but a purchase for the purpose of resale by a

_4  regional transit authority under RCW 81.112.300 is not a sale for

_5  resale; or

_6      (b) Installs, repairs, cleans, alters, imprints, improves,

_7  constructs, or decorates real or personal property of or for

_8  consumers, if such tangible personal property becomes an

_9  ingredient or component of such real or personal property without

10  intervening use by such person; or

11      (c) Purchases for the purpose of consuming the property

12  purchased in producing for sale a new article of tangible personal

13  property or substance, of which such property becomes an

14  ingredient or component or is a chemical used in processing, when

15  the primary purpose of such chemical is to create a chemical

16  reaction directly through contact with an ingredient of a new

17  article being produced for sale; or

18      (d) Purchases for the purpose of consuming the property

19  purchased in producing ferrosilicon which is subsequently used in

20  producing magnesium for sale, if the primary purpose of such

21  property is to create a chemical reaction directly through contact

22  with an ingredient of ferrosilicon; or

23      (e) Purchases for the purpose of providing the property to

24  consumers as part of competitive telephone service, as defined in

25  RCW 82.04.065.  The term shall include every sale of tangible

26  personal property which is used or consumed or to be used or

27  consumed in the performance of any activity classified as a "sale

28  at retail" or "retail sale" even though such property is resold or

29  utilized as provided in (a), (b), (c), (d), or (e) of this

30  subsection following such use.  The term also means every sale of

31  tangible personal property to persons engaged in any business

32  which is taxable under RCW 82.04.280 (2) and (7) and 82.04.290.

33      (2) The term "sale at retail" or "retail sale" shall include

34  the sale of or charge made for tangible personal property consumed

35  and/or for labor and services rendered in respect to the

36  following:

37      (a) The installing, repairing, cleaning, altering, imprinting,

38  or improving of tangible personal property of or for consumers,

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_1  including charges made for the mere use of facilities in respect

_2  thereto, but excluding charges made for the use of

_3  ((coin-operated)) self-service laundry facilities ((when such

_4  facilities are situated in an apartment house, rooming house, or

_5  mobile home park for the exclusive use of the tenants thereof)),

_6  and also excluding sales of laundry service to nonprofit health

_7  care facilities, and excluding services rendered in respect to

_8  live animals, birds and insects;

_9      (b) The constructing, repairing, decorating, or improving of

10  new or existing buildings or other structures under, upon, or

11  above real property of or for consumers, including the installing

12  or attaching of any article of tangible personal property therein

13  or thereto, whether or not such personal property becomes a part

14  of the realty by virtue of installation, and shall also include

15  the sale of services or charges made for the clearing of land and

16  the moving of earth excepting the mere leveling of land used in

17  commercial farming or agriculture;

18      (c) The charge for labor and services rendered in respect to

19  constructing, repairing, or improving any structure upon, above,

20  or under any real property owned by an owner who conveys the

21  property by title, possession, or any other means to the person

22  performing such construction, repair, or improvement for the

23  purpose of performing such construction, repair, or improvement

24  and the property is then reconveyed by title, possession, or any

25  other means to the original owner;

26      (d) The sale of or charge made for labor and services rendered

27  in respect to the cleaning, fumigating, razing or moving of

28  existing buildings or structures, but shall not include the charge

29  made for janitorial services; and for purposes of this section the

30  term "janitorial services" shall mean those cleaning and

31  caretaking services ordinarily performed by commercial janitor

32  service businesses including, but not limited to, wall and window

33  washing, floor cleaning and waxing, and the cleaning in place of

34  rugs, drapes and upholstery.  The term "janitorial services" does

35  not include painting, papering, repairing, furnace or septic tank

36  cleaning, snow removal or sandblasting;

37      (e) The sale of or charge made for labor and services rendered

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_1  in respect to automobile towing and similar automotive

_2  transportation services, but not in respect to those required to

_3  report and pay taxes under chapter 82.16 RCW;

_4      (f) The sale of and charge made for the furnishing of lodging

_5  and all other services by a hotel, rooming house, tourist court,

_6  motel, trailer camp, and the granting of any similar license to

_7  use real property, as distinguished from the renting or leasing of

_8  real property, and it shall be presumed that the occupancy of real

_9  property for a continuous period of one month or more constitutes

10  a rental or lease of real property and not a mere license to use

11  or enjoy the same;

12      (g) The sale of or charge made for tangible personal property,

13  labor and services to persons taxable under (a), (b), (c), (d),

14  (e), and (f) of this subsection when such sales or charges are for

15  property, labor and services which are used or consumed in whole

16  or in part by such persons in the performance of any activity

17  defined as a "sale at retail" or "retail sale" even though such

18  property, labor and services may be resold after such use or

19  consumption.  Nothing contained in this subsection shall be

20  construed to modify subsection (1) of this section and nothing

21  contained in subsection (1) of this section shall be construed to

22  modify this subsection.

23      (3) The term "sale at retail" or "retail sale" shall include

24  the sale of or charge made for personal, business, or professional

25  services including amounts designated as interest, rents, fees,

26  admission, and other service emoluments however designated,

27  received by persons engaging in the following business activities:

28      (a) Amusement and recreation services including but not limited

29  to golf, pool, billiards, skating, bowling, ski lifts and tows,

30  day trips for sightseeing purposes, and others, when provided to

31  consumers;

32      (b) Abstract, title insurance, and escrow services;

33      (c) Credit bureau services;

34      (d) Automobile parking and storage garage services;

35      (e) Landscape maintenance and horticultural services but

36  excluding (i) horticultural services provided to farmers and (ii)

37  pruning, trimming, repairing, removing, and clearing of trees and

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_1  brush near electric transmission or distribution lines or

_2  equipment, if performed by or at the direction of an electric

_3  utility;

_4      (f) Service charges associated with tickets to professional

_5  sporting events; and

_6      (g) The following personal services:  Physical fitness services,

_7  tanning salon services, tattoo parlor services, steam bath

_8  services, turkish bath services, escort services, and dating

_9  services.

10      (4) The term shall also include the renting or leasing of

11  tangible personal property to consumers and the rental of

12  equipment with an operator.

13      (5) The term shall also include the providing of telephone

14  service, as defined in RCW 82.04.065, to consumers.

15      (6) The term shall also include the sale of canned software

16  other than a sale to a person who presents a resale certificate

17  under RCW 82.04.470, regardless of the method of delivery to the

18  end user, but shall not include custom software or the

19  customization of canned software.

20      (7) The term shall not include the sale of or charge made for

21  labor and services rendered in respect to the building, repairing,

22  or improving of any street, place, road, highway, easement, right

23  of way, mass public transportation terminal or parking facility,

24  bridge, tunnel, or trestle which is owned by a municipal

25  corporation or political subdivision of the state or by the United

26  States and which is used or to be used primarily for foot or

27  vehicular traffic including mass transportation vehicles of any

28  kind.

29      (8) The term shall also not include sales of chemical sprays or

30  washes to persons for the purpose of postharvest treatment of

31  fruit for the prevention of scald, fungus, mold, or decay, nor

32  shall it include sales of feed, seed, seedlings, fertilizer,

33  agents for enhanced pollination including insects such as bees,

34  and spray materials to:  (a) Persons who participate in the federal

35  conservation reserve program, the environmental quality incentives

36  program, the wetlands reserve program, and the wildlife habitat

37  incentives program, or their successors administered by the United

38  States department of agriculture; (b) farmers for the purpose of

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_1  producing for sale any agricultural product; and (c) farmers

_2  acting under cooperative habitat development or access contracts

_3  with an organization exempt from federal income tax under 26

_4  U.S.C. Sec. 501(c)(3) or the Washington state department of fish

_5  and wildlife to produce or improve wildlife habitat on land that

_6  the farmer owns or leases.

_7      (9) The term shall not include the sale of or charge made for

_8  labor and services rendered in respect to the constructing,

_9  repairing, decorating, or improving of new or existing buildings

10  or other structures under, upon, or above real property of or for

11  the United States, any instrumentality thereof, or a county or

12  city housing authority created pursuant to chapter 35.82 RCW,

13  including the installing, or attaching of any article of tangible

14  personal property therein or thereto, whether or not such personal

15  property becomes a part of the realty by virtue of installation.

16  Nor shall the term include the sale of services or charges made

17  for the clearing of land and the moving of earth of or for the

18  United States, any instrumentality thereof, or a county or city

19  housing authority.  Nor shall the term include the sale of services

20  or charges made for cleaning up for the United States, or its

21  instrumentalities, radioactive waste and other byproducts of

22  weapons production and nuclear research and development.

23      (10) Until July 1, 2003, the term shall not include the sale of

24  or charge made for labor and services rendered for environmental

25  remedial action as defined in RCW 82.04.2635(2).

     

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

 

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