S 0489

S‑0489.1 _____________________________________________

SENATE BILL 5858

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senators B. Sheldon, Swecker, Kohl‑Welles, Oke, T. Sheldon, Carlson, Rasmussen, Horn, Sheahan, Stevens, Honeyford, Hale and Johnson

Read first time 02/06/2001. Referred to Committee on Ways & Means.

_1 AN ACT Relating to the taxation of physical fitness services;

_2 amending RCW 82.04.050; creating a new section; providing an

_3 effective date; and declaring an emergency.

_4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5 Sec. 1. RCW 82.04.050 and 2000 2nd sp.s. c 4 s 23 are each amended

_6 to read as follows:

_7 (1) "Sale at retail" or "retail sale" means every sale of

_8 tangible personal property (including articles produced,

_9 fabricated, or imprinted) to all persons irrespective of the

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

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

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

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

14 resale certificate under RCW 82.04.470 and who:

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

16 property in the regular course of business without intervening use

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

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

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_1 resale; or

_2 (b) Installs, repairs, cleans, alters, imprints, improves,

_3 constructs, or decorates real or personal property of or for

_4 consumers, if such tangible personal property becomes an

_5 ingredient or component of such real or personal property without

_6 intervening use by such person; or

_7 (c) Purchases for the purpose of consuming the property

_8 purchased in producing for sale a new article of tangible personal

_9 property or substance, of which such property becomes an

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

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

12 reaction directly through contact with an ingredient of a new

13 article being produced for sale; or

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

15 purchased in producing ferrosilicon which is subsequently used in

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

17 property is to create a chemical reaction directly through contact

18 with an ingredient of ferrosilicon; or

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

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

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

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

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

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

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

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

27 tangible personal property to persons engaged in any business

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

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

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

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

32 following:

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

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

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

36 thereto, but excluding charges made for the use of coin-operated

37 laundry facilities when such facilities are situated in an

38 apartment house, rooming house, or mobile home park for the

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_1 exclusive use of the tenants thereof, and also excluding sales of

_2 laundry service to nonprofit health care facilities, and excluding

_3 services rendered in respect to live animals, birds and insects;

_4 (b) The constructing, repairing, decorating, or improving of

_5 new or existing buildings or other structures under, upon, or

_6 above real property of or for consumers, including the installing

_7 or attaching of any article of tangible personal property therein

_8 or thereto, whether or not such personal property becomes a part

_9 of the realty by virtue of installation, and shall also include

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

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

12 commercial farming or agriculture;

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

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

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

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

17 performing such construction, repair, or improvement for the

18 purpose of performing such construction, repair, or improvement

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

20 other means to the original owner;

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

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

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

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

25 term "janitorial services" shall mean those cleaning and

26 caretaking services ordinarily performed by commercial janitor

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

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

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

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

31 cleaning, snow removal or sandblasting;

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

33 in respect to automobile towing and similar automotive

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

35 report and pay taxes under chapter 82.16 RCW;

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

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

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

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_1 use real property, as distinguished from the renting or leasing of

_2 real property, and it shall be presumed that the occupancy of real

_3 property for a continuous period of one month or more constitutes

_4 a rental or lease of real property and not a mere license to use

_5 or enjoy the same;

_6 (g) The sale of or charge made for tangible personal property,

_7 labor and services to persons taxable under (a), (b), (c), (d),

_8 (e), and (f) of this subsection when such sales or charges are for

_9 property, labor and services which are used or consumed in whole

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

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

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

13 consumption. Nothing contained in this subsection shall be

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

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

16 modify this subsection.

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

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

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

20 admission, and other service emoluments however designated,

21 received by persons engaging in the following business activities:

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

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

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

25 consumers;

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

27 (c) Credit bureau services;

28 (d) Automobile parking and storage garage services;

29 (e) Landscape maintenance and horticultural services but

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

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

32 brush near electric transmission or distribution lines or

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

34 utility;

35 (f) Service charges associated with tickets to professional

36 sporting events; and

37 (g) The following personal services: ((~~Physical fitness~~

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_1 ~~services,~~)) Tanning salon services, tattoo parlor services, steam

_2 bath services, turkish bath services, escort services, and dating

_3 services.

_4 (4) The term shall also include the renting or leasing of

_5 tangible personal property to consumers and the rental of

_6 equipment with an operator.

_7 (5) The term shall also include the providing of telephone

_8 service, as defined in RCW 82.04.065, to consumers.

_9 (6) The term shall also include the sale of canned software

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

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

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

13 customization of canned software.

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

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

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

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

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

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

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

21 vehicular traffic including mass transportation vehicles of any

22 kind.

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

24 washes to persons for the purpose of postharvest treatment of

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

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

27 agents for enhanced pollination including insects such as bees,

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

29 federal conservation reserve program, the environmental quality

30 incentives program, the wetlands reserve program, and the wildlife

31 habitat incentives program, or their successors administered by

32 the United States department of agriculture; (b) farmers for the

33 purpose of producing for sale any agricultural product; and (c)

34 farmers acting under cooperative habitat development or access

35 contracts with an organization exempt from federal income tax

36 under 26 U.S.C. Sec. 501(c)(3) or the Washington state department

37 of fish and wildlife to produce or improve wildlife habitat on

38 land that the farmer owns or leases.

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_1 (9) The term shall not include the sale of or charge made for

_2 labor and services rendered in respect to the constructing,

_3 repairing, decorating, or improving of new or existing buildings

_4 or other structures under, upon, or above real property of or for

_5 the United States, any instrumentality thereof, or a county or

_6 city housing authority created pursuant to chapter 35.82 RCW,

_7 including the installing, or attaching of any article of tangible

_8 personal property therein or thereto, whether or not such personal

_9 property becomes a part of the realty by virtue of installation.

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

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

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

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

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

15 instrumentalities, radioactive waste and other byproducts of

16 weapons production and nuclear research and development.

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

18 or charge made for labor and services rendered for environmental

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

20 NEW SECTION. Sec. 2. This act applies to physical fitness

21 services rendered on and after July 1, 2001.

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

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

24 the state government and its existing public institutions, and

25 takes effect July 1, 2001.

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