CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 1203

 

 

                   Chapter 116, Laws of 2001

 

 

                        57th Legislature

                2001 Regular Legislative Session

 

 

TAX EXEMPTION DOCUMENTATION REQUIREMENTS

 

 

 

                    EFFECTIVE DATE:  7/22/01

Passed by the House March 9, 2001

  Yeas 98   Nays 0

 

 

              FRANK CHOPP

Speaker of the House of Representatives

     

 

 

             CLYDE BALLARD

Speaker of the House of Representatives

 

 

 

Passed by the Senate April 10, 2001

  Yeas 48   Nays 0

             CERTIFICATE

 

We, Timothy A. Martin and Cynthia Zehnder, Co-Chief Clerks of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 1203 as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

          TIMOTHY A. MARTIN

                          Chief Clerk

 

 

           CYNTHIA ZEHNDER

                          Chief Clerk

               BRAD OWEN

President of the Senate

 

 

 

Approved April 27, 2001 Place Style On Codes above, and Style Off Codes below.               

                                FILED                

 

           April 27, 2001 - 1:05 p.m.

 

              GARY LOCKE

Governor of the State of Washington

                 Secretary of State

                 State of Washington


H-1776.1  _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 1203

          _______________________________________________

 

             Passed Legislature - 2001 Regular Session

 

State of Washington      57th Legislature     2001 Regular Session

 

By House Committee on Finance (originally sponsored by Representatives Cairnes and Morris; by request of Department of Revenue)

 

Read first time .  Referred to Committee on .

Authorizing the department of revenue to modify sales tax exemption documentation and retention requirements for simplification purposes. 


    AN ACT Relating to department of revenue authority regarding sales and use tax exemption documentation and retention requirements; adding a new section to chapter 82.32 RCW; and creating new sections.

 

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

 

    NEW SECTION.  Sec. 1.  The legislature finds that current sales and use tax exemption documentation requirements are often confusing and burdensome for retailers, taxpayers, and the state.  Additionally, the legislature notes the national efforts under way to simplify and streamline the sales and use tax, and that those efforts include a new system for retailers to use in processing sales and use tax exemptions.  The legislature further finds that it would be beneficial to the state and its residents to allow for the simplification of sales and use tax exemption requirements.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 82.32 RCW to read as follows:

    (1) The department is authorized to enter into agreements with sellers who meet the criteria in this section for a project on sales and use tax exemption requirements.  This project will allow the use of electronic data collection in lieu of paper certificates otherwise required by law, including the use of electronic signatures.

    (2) The object of the project is to determine whether using an electronic system and reviewing the data regarding the exempt transactions provides the same level of reliability as the current system while lessening the burden on the seller.

    (3) A business making both sales taxable and exempt under chapter 82.08 or 82.12 RCW, that has electronic data-collecting capabilities, and that wishes to participate in the project may make application to the department in such form and manner as the department may require.  To be eligible for such participation, a seller must demonstrate its capability to take part in the project and to provide data to the department in a form in which the data can be used by the department.  The department is not required to accept all applicants in this project and is not required to provide any reason for not selecting a participant.  A seller selected as a participant may be relieved of other sales and use tax exemption documentation requirements provided by law as covered by the project, and will be relieved of the good faith requirement under RCW 82.08.050 to the extent that it has made available to the department the data required by the project.

 

    NEW SECTION.  Sec. 3.  The code reviser shall place a cross-reference note to section 2 of this act following RCW 82.08.050 and 82.12.040.


    Passed the House March 9, 2001.

    Passed the Senate April 10, 2001.

Approved by the Governor April 27, 2001.

    Filed in Office of Secretary of State April 27, 2001.