BILL REQ. #:  H-0371.2 

Read first time 01/16/2003.   Referred to Committee on Finance.

     AN ACT Relating to a business and occupation tax rate on certain FAR part 145 certificated repair stations; reenacting and amending RCW 82.04.250; adding a new section to chapter 82.32 RCW; providing an effective date; and providing an expiration date.

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

Sec. 1   RCW 82.04.250 and 1998 c 343 s 5 and 1998 c 312 s 4 are each reenacted and amended to read as follows:
     (1) Upon every person except persons taxable under RCW 82.04.260(5), 82.04.272, or subsection (2) or (3) of this section engaging within this state in the business of making sales at retail, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the business, multiplied by the rate of 0.471 percent.
     (2) Upon every person engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter 82.08 RCW by reason of RCW 82.08.0261, 82.08.0262, or 82.08.0263 except as provided in subsection (3) of this section, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the business, multiplied by the rate of 0.484 percent.
     (3) Upon every person engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter 82.08 RCW by reason of RCW 82.08.0261, 82.08.0262, or 82.08.0263, that are classified by the federal aviation administration as FAR part 145 certificated repair stations with an airframe class 4 rating and limited capabilities in instruments, radio equipment, and specialized services, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the business, multiplied by the rate of .275 percent.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) A recipient reporting under RCW 82.04.250(3) during a calendar year must file a report to the department of revenue as required by this section.
     (2) The following information must be provided to the department:
     (a) Name and address of recipient of business incentive;
     (b) Business registration number;
     (c) Identification of project/location of project;
     (d) Signature and phone number of person filling out form;
     (e) Date business incentive was provided;
     (f) Dollar value of business incentive;
     (g) Job creation/retention goals for business receiving the incentive (please specify);
     (h) Average hourly wage goals for business receiving the incentive (per hour);
     (i) Actual jobs created/retained since business received the incentive (please specify);
     (j) Actual average hourly wage paid to employees hired since receiving the incentive;
     (k) Goals of business incentive received, as a result of the business incentive: (Please indicate number of employees by category of job, e.g. full-time, part-time, or contingent/temporary job, number of employees per wage band, and indicate if employee benefits are provided);
     (l) Actual performance since project placed in service, as a result of the business incentive: (Please indicate number of employees by category of job, e.g. full-time, part-time, or contingent/temporary job, number of employees per wage band, and indicate if employee benefits are provided);
     (m) Last date actual wage and job creation/retention levels documented;
     (n) Have all wage and job goals been achieved?
          [ ] Yes - do not submit future forms for this project.
          [ ] No - please submit another form next year;
     (o) Did you take the machinery and equipment exemption in the last year, and if the answer is "yes" please estimate the amount of tax exempted; and
     (p) Date this disclosure form completed.
     (3) A recipient who fails to submit a complete report under this section is ineligible on a prospective basis for the rate provided in RCW 82.04.250(3). The department of revenue shall notify the recipient in writing by mail that he or she is no longer eligible for the rate. The recipient is ineligible on the effective date of the postmark of the notice letter from the department of revenue. If the recipient satisfactorily completes the form, the department of revenue shall send a letter to the recipient indicating that the basis for the ineligibility has been corrected. The letter from the department of revenue is proof that eligibility on this basis has been restored, and is effective prospectively on the date the letter is postmarked.

NEW SECTION.  Sec. 3   This act expires June 30, 2006.

NEW SECTION.  Sec. 4   This act takes effect August 1, 2003.