BILL REQ. #: H-3744.1
| State of Washington | 58th Legislature | 2004 Regular Session |
Read first time 01/20/2004. Referred to Committee on Technology, Telecommunications & Energy.
AN ACT Relating to tax deferrals for wood biomass fuel investment projects; amending RCW 82.69.010, 82.69.030, 82.04.4335, 82.08.960, and 82.12.960; reenacting and amending RCW 82.04.260 and 82.04.260; adding a new chapter to Title 82 RCW; creating a new section; repealing RCW 82.69.040; providing an effective date; and providing contingent expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Applicant" means a person applying for a tax deferral under
this chapter.
(2)(a) "Eligible investment project" means an investment project
that meets the criteria in (b) and (c) of this subsection.
(b) The lessor or owner of a qualified building is not eligible for
a deferral unless the underlying ownership of the buildings, machinery,
and equipment vests exclusively in the same person, or unless the
lessor by written contract agrees to pass the economic benefit of the
deferral to the lessee in the form of reduced rent payments.
(c) "Eligible investment project" does not include any portion of
an investment project undertaken by a light and power business as
defined in RCW 82.16.010, other than that portion of a cogeneration
project that is used to generate power for consumption within the
manufacturing site of which the cogeneration project is an integral
part, or investment projects that have already received deferrals under
this chapter.
(3) "Recipient" means a person receiving a tax deferral under this
chapter.
(4) "Wood biomass fuel" means a pyrolytic liquid fuel or synthesis
gas-derived liquid fuel, used in internal combustion engines, and
produced from wood, forest, or field residue, or dedicated energy crops
that do not include wood pieces that have been treated with chemical
preservatives such as creosote, pentachlorophenol, or copper-chroma-arsenic.
(5) "Department," "investment project," "manufacturing," "person,"
"qualified buildings," "qualified machinery and equipment," and
"research and development" have the same meaning as in RCW 82.60.020.
NEW SECTION. Sec. 2 Application, reporting, administrative, and
confidentiality requirements relating to deferral of taxes under this
chapter are the same as those in RCW 82.60.030, 82.60.040(2),
82.60.060(3), 82.60.070 (1) and (2), 82.60.080, 82.60.090, and
82.60.100 for tax deferrals for investment projects in rural counties
under chapter 82.60 RCW.
NEW SECTION. Sec. 3 (1) The department shall issue a sales and
use tax deferral certificate for state and local sales and use taxes
due under chapters 82.08, 82.12, and 82.14 RCW on each eligible
investment project as defined in RCW 82.69.010, if the investment
project is undertaken for the purpose of manufacturing wood biomass
fuel.
(2) This section expires the earlier of:
(a) July 1, 2009; or
(b) July 1st of the fiscal year following the first calendar year
in which the volume of wood biomass fuel manufactured is equal to
twenty percent of the total of the volume of wood biomass fuel and
diesel fuel manufactured, as determined by the department. The
department of licensing shall provide the department of revenue
information necessary to make this determination.
NEW SECTION. Sec. 4 Deferred taxes need not be repaid if the
department determines that the recipient has met the requirements of
this chapter for the seven calendar years following the certification
by the department that the investment project has been operationally
completed.
Sec. 5 RCW 82.69.010 and 2003 c 339 s 1 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax deferral under
this chapter.
(2) "Department" means the department of revenue.
(3) (("Eligible area" means a county with fewer than one hundred
persons per square mile as determined annually by the office of
financial management and published by the department effective for the
period July 1st through June 30th, or a county that has a population of
less than two hundred twenty-five thousand as determined by the office
of financial management and has an area greater than two hundred
twenty-five square miles.))(a) "Eligible investment project" means an investment project
((
(4)in an eligible area)) that meets the criteria in (b) and (c) of this
subsection.
(b) The lessor or owner of a qualified building is not eligible for
a deferral unless the underlying ownership of the buildings, machinery,
and equipment vests exclusively in the same person, or unless the
lessor by written contract agrees to pass the economic benefit of the
deferral to the lessee in the form of reduced rent payments.
(c) "Eligible investment project" does not include any portion of
an investment project undertaken by a light and power business as
defined in RCW 82.16.010(5), other than that portion of a cogeneration
project that is used to generate power for consumption within the
manufacturing site of which the cogeneration project is an integral
part, or investment projects which have already received deferrals
under this chapter.
(((5))) (4) "Investment project" means an investment in qualified
buildings or qualified machinery and equipment, including labor and
services rendered in the planning, installation, and construction of
the project.
(((6))) (5) "Manufacturing" means the same as defined in RCW
82.04.120. "Manufacturing" also includes computer programming, the
production of computer software, and other computer-related services,
and the activities performed by research and development laboratories
and commercial testing laboratories.
(((7))) (6) "Person" has the meaning given in RCW 82.04.030.
(((8))) (7) "Qualified buildings" means construction of new
structures, and expansion or renovation of existing structures for the
purpose of increasing floor space or production capacity used for
manufacturing and research and development activities, including plant
offices and warehouses or other facilities for the storage of raw
material or finished goods if such facilities are an essential or an
integral part of a factory, mill, plant, or laboratory used for
manufacturing or research and development. If a building is used
partly for manufacturing or research and development and partly for
other purposes, the applicable tax deferral shall be determined by
apportionment of the costs of construction under rules adopted by the
department.
(((9))) (8) "Qualified machinery and equipment" means all new
industrial and research fixtures, equipment, and support facilities
that are an integral and necessary part of a manufacturing or research
and development operation. "Qualified machinery and equipment"
includes: Computers; software; data processing equipment; laboratory
equipment; manufacturing components such as belts, pulleys, shafts, and
moving parts; molds, tools, and dies; operating structures; and all
equipment used to control or operate the machinery.
(((10))) (9) "Recipient" means a person receiving a tax deferral
under this chapter.
(((11))) (10) "Research and development" means the development,
refinement, testing, marketing, and commercialization of a product,
service, or process before commercial sales have begun. As used in
this subsection, "commercial sales" excludes sales of prototypes or
sales for market testing if the total gross receipts from such sales of
the product, service, or process do not exceed one million dollars.
(((12))) (11) "Wood biomass fuel" means a pyrolytic liquid fuel or
synthesis gas-derived liquid fuel, used in internal combustion engines,
and produced from wood, forest, or field residue, or dedicated energy
crops that do not include wood pieces that have been treated with
chemical preservatives such as creosote, pentachlorophenol, or copper-chroma-arsenic.
Sec. 6 RCW 82.69.030 and 2003 c 339 s 3 are each amended to read
as follows:
(1) The department shall issue a sales and use tax deferral
certificate for state and local sales and use taxes due under chapters
82.08, 82.12, and 82.14 RCW on each eligible investment project ((that
is located in an eligible area as defined in RCW 82.69.010)), if the
investment project is undertaken for the purpose of manufacturing wood
biomass fuel.
(2) This section expires the earlier of:
(a) July 1, 2009; or
(b) July 1st of the fiscal year following the first calendar year
in which the volume of biodiesel fuel manufactured is equal to twenty
percent of the total of the volume of diesel fuel and biodiesel fuel
manufactured, as determined by the department. The department of
licensing shall provide the department of revenue information necessary
to make this determination.
Sec. 7 RCW 82.04.260 and 2003 c 339 s 11 and 2003 c 261 s 11 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;
(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;
(d) Dairy products that as of September 20, 2001, 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;
(e) Alcohol fuel, biodiesel fuel, or biodiesel feedstock, as those
terms are defined in RCW 82.29A.135; as to such persons the amount of
tax with respect to the business shall be equal to the value of alcohol
fuel, biodiesel fuel, or biodiesel feedstock manufactured, multiplied
by the rate of 0.138 percent. This subsection (1)(e) expires July 1,
2009; and
(f) Alcohol fuel or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of alcohol fuel or wood
biomass fuel manufactured, multiplied by the rate of 0.138 percent.
This subsection (1)(f) expires the earlier of July 1, 2009, or July 1st
of the fiscal year following the first calendar year in which the
volume of wood biomass fuel manufactured is equal to twenty percent of
the total of the volume of diesel fuel and wood biomass fuel
manufactured, as determined by the department. The department of
licensing shall provide the department of revenue information necessary
to make this determination.
(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.
Sec. 8 RCW 82.04.260 and 2003 2nd sp.s. c 1 s 4 and 2003 2nd
sp.s. c 1 s 3 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;
(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;
(d) Dairy products that as of September 20, 2001, 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;
(e) Alcohol fuel, biodiesel fuel, or biodiesel feedstock, as those
terms are defined in RCW 82.29A.135; as to such persons the amount of
tax with respect to the business shall be equal to the value of alcohol
fuel, biodiesel fuel, or biodiesel feedstock manufactured, multiplied
by the rate of 0.138 percent. This subsection (1)(e) expires July 1,
2009; and
(f) Alcohol fuel or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of alcohol fuel or wood
biomass fuel manufactured, multiplied by the rate of 0.138 percent.
This subsection (1)(f) expires the earlier of July 1, 2009, or July 1st
of the fiscal year following the first calendar year in which the
volume of wood biomass fuel manufactured is equal to twenty percent of
the total of the volume of diesel fuel and wood biomass fuel
manufactured, as determined by the department. The department of
licensing shall provide the department of revenue information necessary
to make this determination.
(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.
(13)(a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, as to such persons the
amount of tax with respect to such business shall, in the case of
manufacturers, be equal to the value of the product manufactured, or in
the case of processors for hire, be equal to the gross income of the
business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(b) Beginning October 1, 2005, upon every person engaging within
this state in the business of making sales, at retail or wholesale, of
commercial airplanes, or components of such airplanes, 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 airplanes
or components multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(c) For the purposes of this subsection (13), "commercial
airplane," "component," and "final assembly of a superefficient
airplane" have the meanings given in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person eligible for the tax rate under this subsection (13) must report
as required under RCW 82.32.545.
(e) This subsection (13) does not apply after the earlier of: July
1, 2024; or December 31, 2007, if assembly of a superefficient airplane
does not begin by December 31, 2007, as determined under RCW 82.32.550.
Sec. 9 RCW 82.04.4335 and 2003 c 339 s 12 are each amended to
read as follows:
(1) In computing tax there may be deducted from the measure of tax
amounts received from the retail sale, or for the distribution, of wood
biomass fuel.
(2) For the purposes of this ((act [section])) section, the
following definitions apply:
(a) "Wood biomass fuel" means a pyrolytic liquid fuel or synthesis
gas-derived liquid fuel, used in internal combustion engines, and
produced from wood, forest, or field residue, or dedicated energy crops
that do not include wood pieces that have been treated with chemical
preservatives such as creosote, pentachlorophenol, or copper-chroma-arsenic.
(b) "Distribution" means any of the actions specified in RCW
82.36.020(2).
(3) This section expires the earlier of July 1, 2009, or July 1st
of the fiscal year following the first calendar year in which the
volume of wood biomass fuel manufactured is equal to twenty percent of
the total of the volume of diesel fuel and wood biomass fuel
manufactured, as determined by the department. The department of
licensing shall provide the department of revenue information necessary
to make this determination.
Sec. 10 RCW 82.08.960 and 2003 c 339 s 13 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of
machinery and equipment, or to services rendered in respect to
constructing structures, installing, constructing, repairing, cleaning,
decorating, altering, or improving of structures or machinery and
equipment, or to sales of tangible personal property that becomes an
ingredient or component of structures or machinery and equipment, if
the machinery, equipment, or structure is used directly for the retail
sale of a wood biomass fuel blend. Structures and machinery and
equipment that are used for the retail sale of a wood biomass fuel
blend and for other purposes are exempt only on the portion used
directly for the retail sale of a wood biomass fuel blend.
(2) The tax levied by RCW 82.08.020 does not apply to sales of fuel
delivery vehicles or to sales of or charges made for labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the vehicles including repair parts and replacement parts if
at least seventy-five percent of the fuel distributed by the vehicles
is a wood biomass fuel blend.
(3) A person taking the exemption under this section must keep
records necessary for the department to verify eligibility under this
section. 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 shall retain a copy of the certificate for
the seller's files.
(4) For the purposes of this section, the definitions in RCW
82.69.010 and this subsection apply.
(a) "Wood biomass fuel blend" means fuel that contains at least
twenty percent wood biomass fuel by volume.
(b) "Machinery and equipment" means industrial fixtures, devices,
and support facilities and tangible personal property that becomes an
ingredient or component thereof, including repair parts and replacement
parts that are integral and necessary for the delivery of a wood
biomass fuel blend into the fuel tank of a motor vehicle.
(5) This section expires the earlier of July 1, 2009, or July 1st
of the fiscal year following the first calendar year in which the
volume of wood biomass fuel manufactured is equal to twenty percent of
the total of the volume of diesel fuel and wood biomass fuel
manufactured, as determined by the department. The department of
licensing shall provide the department of revenue information necessary
to make this determination.
Sec. 11 RCW 82.12.960 and 2003 c 339 s 14 are each amended to
read as follows:
(1) The provisions of this chapter do not apply in respect to the
use of machinery and equipment, or to services rendered in respect to
installing, repairing, cleaning, altering, or improving of eligible
machinery and equipment, or tangible personal property that becomes an
ingredient or component of machinery and equipment used directly for
the retail sale of a wood biomass fuel blend.
(2) The provisions of this chapter do not apply in respect to the
use of fuel delivery vehicles including repair parts and replacement
parts and to services rendered in respect to installing, repairing,
cleaning, altering, or improving the vehicles if at least seventy-five
percent of the fuel distributed by the vehicles is a wood biomass fuel
blend.
(3) For the purposes of this section, the definitions in RCW
82.08.960 apply.
(4) This section expires the earlier of July 1, 2009, or July 1st
of the fiscal year following the first calendar year in which the
volume of wood biomass fuel manufactured is equal to twenty percent of
the total of the volume of diesel fuel and wood biomass fuel
manufactured, as determined by the department. The department of
licensing shall provide the department of revenue information necessary
to make this determination.
NEW SECTION. Sec. 12 RCW 82.69.040 (Additional investment
projects that qualify for sales and use tax deferral) and 2003 c 339 s
4 are each repealed.
NEW SECTION. Sec. 13 (1) Sections 5 and 6 of this act are null
and void if RCW 82.60.050 is effective after June 30, 2004.
(2) Sections 1 through 4 of this act are null and void if RCW
82.60.050 expires July 1, 2004.
NEW SECTION. Sec. 14 Sections 1 through 4 of this act constitute
a new chapter in Title
NEW SECTION. Sec. 15 This act takes effect July 1, 2004.