S-3054.2  _______________________________________________

                         SENATE BILL 6392

          _______________________________________________

State of Washington   57th Legislature        2002 Regular Session

By Senators Benton, Long and Stevens

Read first time 01/16/2002.  Referred to Committee on Ways & Means.

Providing a sales and use tax exemption for construction of youth centers on school property.

    AN ACT Relating to sales and use taxation of nonprofit youth centers located on school district property; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and declaring an emergency.

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:

    (a) The sale of or charge made for tangible personal property consumed or for labor and services rendered in respect to the construction of new buildings on school district property for use as a nonprofit youth center; and

    (b) Sales of machinery and equipment related to the buildings exempt under (a) of this subsection.

    (2) Subsection (1) of this section only applies to labor and services, machinery and equipment, or other tangible personal property that is acquired before the construction is complete.

    (3) A sales and use tax exemption certificate must be obtained from the department to be exempt under this section.  The application must be made to the department in a form and manner prescribed by the department.  The application must contain information regarding the location of the youth center, the size of the youth center, and any other information required by the department.  The department must rule on the application within twenty days.  The certificate applies only to expenditures made after approval by the department.

    (4) For purposes of this section and section 2 of this act:

    (a) "Youth center" means any private center that provides, on a regular basis, recreational, vocational, academic, or social services activities for persons younger than twenty-one years old or for those persons and their families.

    (b) "Machinery and equipment" means tangible personal property of a capital nature which has a useful life of one year or more that is of the type that would be depreciated for federal income tax purposes under section 168 of the federal internal revenue code of 1986 (26 U.S.C. Sec. 168), including such items as furniture, computers, and tangible personal property that becomes an ingredient or component thereof.

    (c) "Nonprofit" means an organization exempt from federal income tax under section 501(c)(3) of the federal internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)).

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 with respect to the use of tangible personal property for the construction of a new nonprofit youth center on school district property.

    (2) The provisions and requirements of section 1 of this act apply to this section.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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