AN
ACT Relating to rural economic development; reenacting and amending RCW
82.04.260; adding new sections to chapter 82.08 RCW; adding new sections to
chapter 82.12 RCW; and creating new sections.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
PART I: Dairy
Products B&O Tax Exemption
NEW
SECTION. Sec. 1. The
purpose of sections 2 and 3 of this act is to provide a tax rate for persons
who manufacture dairy products that is commensurate to the rate imposed on
certain other processors of agricultural commodities. This tax rate applies to
persons who manufacture dairy products from raw materials such as fluid milk,
dehydrated milk, or byproducts of milk such as cream, buttermilk, whey, butter,
or casein. It is not the intent of the legislature to provide this tax rate to
persons who use dairy products as an ingredient or component of their
manufactured product, such as milk-based soups or pizza. It is the intent that
persons who manufacture products such as milk, cheese, yogurt, ice cream, whey,
or whey products be subject to this rate.
Sec.
2. RCW
82.04.260 and 1998 c 312 s 5 and 1998 c 311 s 2 are each reenacted and amended
to read as follows:
(1)
Upon every person engaging within this state in the business of manufacturing:
(a)
Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola
into canola oil, canola meal, or canola byproducts, or sunflower seeds into
sunflower oil; as to such persons the amount of tax with respect to such
business shall be equal to the value of the flour, pearl barley, oil, canola
meal, or canola byproduct manufactured, multiplied by the rate of 0.138
percent;
(b)
Seafood products which remain in a raw, raw frozen, or raw salted state at the
completion of the manufacturing by that person; as to such persons the amount
of tax with respect to such business shall be equal to the value of the
products manufactured, multiplied by the rate of 0.138 percent; ((and))
(c)
By canning, preserving, freezing, processing, or dehydrating fresh fruits and
vegetables, or selling at wholesale fresh fruits and vegetables canned,
preserved, frozen, processed, or dehydrated by the seller and sold to
purchasers who transport in the ordinary course of business the goods out of
this state; as to such persons the amount of tax with respect to such business
shall be equal to the value of the products canned, preserved, frozen,
processed, or dehydrated multiplied by the rate of 0.138 percent. As proof of
sale to a person who transports in the ordinary course of business goods out of
this state, the seller shall annually provide a statement in a form prescribed
by the department and retain the statement as a business record; and
(d)
Dairy products that as of the effective date of this section are identified in
21 C.F.R., chapter 1, parts 131, 133, and 135, including byproducts from the
manufacturing of the dairy products such as whey and casein; or selling the
same to purchasers who transport in the ordinary course of business the goods
out of state; as to such persons the tax imposed shall be equal to the value of
the products manufactured multiplied by the rate of 0.138 percent. As proof of
sale to a person who transports in the ordinary course of business goods out of
this state, the seller shall annually provide a statement in a form prescribed
by the department and retain the statement as a business record.
(2)
Upon every person engaging within this state in the business of splitting or
processing dried peas; as to such persons the amount of tax with respect to
such business shall be equal to the value of the peas split or processed,
multiplied by the rate of 0.138 percent.
(3)
Upon every nonprofit corporation and nonprofit association engaging within this
state in research and development, as to such corporations and associations,
the amount of tax with respect to such activities shall be equal to the gross
income derived from such activities multiplied by the rate of 0.484 percent.
(4)
Upon every person engaging within this state in the business of slaughtering,
breaking and/or processing perishable meat products and/or selling the same at
wholesale only and not at retail; as to such persons the tax imposed shall be
equal to the gross proceeds derived from such sales multiplied by the rate of
0.138 percent.
(5)
Upon every person engaging within this state in the business of making sales,
at retail or wholesale, of nuclear fuel assemblies manufactured by that person,
as to such persons the amount of tax with respect to such business shall be
equal to the gross proceeds of sales of the assemblies multiplied by the rate
of 0.275 percent.
(6)
Upon every person engaging within this state in the business of manufacturing
nuclear fuel assemblies, as to such persons the amount of tax with respect to
such business shall be equal to the value of the products manufactured
multiplied by the rate of 0.275 percent.
(7)
Upon every person engaging within this state in the business of acting as a
travel agent or tour operator; as to such persons the amount of the tax with
respect to such activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(8)
Upon every person engaging within this state in business as an international
steamship agent, international customs house broker, international freight
forwarder, vessel and/or cargo charter broker in foreign commerce, and/or
international air cargo agent; as to such persons the amount of the tax with
respect to only international activities shall be equal to the gross income
derived from such activities multiplied by the rate of 0.275 percent.
(9)
Upon every person engaging within this state in the business of stevedoring and
associated activities pertinent to the movement of goods and commodities in
waterborne interstate or foreign commerce; as to such persons the amount of tax
with respect to such business shall be equal to the gross proceeds derived from
such activities multiplied by the rate of 0.275 percent. Persons subject to
taxation under this subsection shall be exempt from payment of taxes imposed by
chapter 82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to the
conduct of goods and commodities in waterborne interstate or foreign commerce
are defined as all activities of a labor, service or transportation nature
whereby cargo may be loaded or unloaded to or from vessels or barges, passing
over, onto or under a wharf, pier, or similar structure; cargo may be moved to
a warehouse or similar holding or storage yard or area to await further
movement in import or export or may move to a consolidation freight station and
be stuffed, unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for delivery to
its consignee. Specific activities included in this definition are: Wharfage,
handling, loading, unloading, moving of cargo to a convenient place of delivery
to the consignee or a convenient place for further movement to export mode;
documentation services in connection with the receipt, delivery, checking,
care, custody and control of cargo required in the transfer of cargo; imported
automobile handling prior to delivery to consignee; terminal stevedoring and
incidental vessel services, including but not limited to plugging and
unplugging refrigerator service to containers, trailers, and other refrigerated
cargo receptacles, and securing ship hatch covers.
(10)
Upon every person engaging within this state in the business of disposing of
low-level waste, as defined in RCW 43.145.010; as to such persons the amount of
the tax with respect to such business shall be equal to the gross income of the
business, excluding any fees imposed under chapter 43.200 RCW, multiplied by
the rate of 3.3 percent.
If
the gross income of the taxpayer is attributable to activities both within and
without this state, the gross income attributable to this state shall be
determined in accordance with the methods of apportionment required under RCW
82.04.460.
(11)
Upon every person engaging within this state as an insurance agent, insurance
broker, or insurance solicitor licensed under chapter 48.17 RCW; as to such
persons, the amount of the tax with respect to such licensed activities shall
be equal to the gross income of such business multiplied by the rate of 0.484
percent.
(12)
Upon every person engaging within this state in business as a hospital, as
defined in chapter 70.41 RCW, that is operated as a nonprofit corporation or by
the state or any of its political subdivisions, as to such persons, the amount
of tax with respect to such activities shall be equal to the gross income of
the business multiplied by the rate of 0.75 percent through June 30, 1995, and
1.5 percent thereafter. The moneys collected under this subsection shall be
deposited in the health services account created under RCW 43.72.900.
PART II: Retail Sales
Tax Exemption - Poultry Farming
NEW
SECTION. Sec. 3. 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 sales to farmers of propane
or natural gas used to heat structures used to house chickens. The propane or
natural gas must be used exclusively to heat the structures. The structures
must be used exclusively to house chickens that are sold as agricultural
products.
(2)
The exemption is available only when the buyer provides the seller with an
exemption certificate in a form and manner prescribed by the department. The
seller must retain a copy of the certificate for the seller's files.
(3)
The definitions in this subsection apply to this section and section 4 of this
act.
(a)
"Structures" means barns, sheds, and other similar buildings in which
chickens are housed.
(b)
"Farmer" has the same meaning as provided in RCW 82.04.213.
(c)
"Agricultural product" has the same meaning as provided in RCW
82.04.213.
NEW
SECTION. Sec. 4. 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 by a farmer
of propane or natural gas to heat structures used to house chickens. The
propane or natural gas must be used exclusively to heat the structures used to
house chickens. The structures must be used exclusively to house chickens that
are sold as agricultural products.
(2)
The exemption certificate, recordkeeping requirements, and definitions of
section 3 of this act apply to this section.
NEW
SECTION. Sec. 5. 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 sales to a farmer of bedding
materials used to accumulate and facilitate the removal of chicken manure. The
farmer must be raising chickens that are sold as agricultural products.
(2)
The exemption is available only when the buyer provides the seller with an
exemption certificate in a form and manner prescribed by the department. The
seller must retain a copy of the certificate for the seller's files.
(3)
The definitions in this subsection apply to this section and section 6 of this
act.
(a)
"Bedding materials" means wood shavings, straw, sawdust, shredded
paper, and other similar materials.
(b)
"Farmer" has the same meaning as provided in RCW 82.04.213.
(c)
"Agricultural product" has the same meaning as provided in RCW
82.04.213.
NEW
SECTION. Sec. 6. 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 by a farmer
of bedding materials used to accumulate and facilitate the removal of chicken
manure. The farmer must be raising chickens that are sold as agricultural
products.
(2)
The exemption certificate, recordkeeping requirements, and definitions of
section 5 of this act apply to this section.
NEW
SECTION. Sec. 7. Part
headings used in this act are not any part of the law.
