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.

 

‑‑‑ END ‑‑‑

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