BILL REQ. #:  H-3297.1 

Read first time 01/26/2004.   Referred to Committee on Finance.

     AN ACT Relating to exclusion of permit costs from excise taxation; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.04 RCW to read as follows:
     (1) In computing tax there may be deducted from the measure of tax amounts received by any person as compensation for permit fees paid by the person as an accommodation to the customer. This deduction is available only if the amount is billed to the customer at the exact amount paid to the governmental entity and is separately itemized in the billing statement delivered to the customer.
     (2) The definitions in this subsection apply to this section.
     (a) "Permit fee" means a fee charged by a governmental entity to apply for or obtain written authorization to engage in any particular activity or act, including but not limited to fees charged for a building permit, development permit, conditional use permit, forest practices permit, sewage disposal permit, or water resources permit.
     (b) "Impact fee" has the meaning provided in RCW 82.02.090.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     The tax imposed by RCW 82.08.020 does not apply to amounts that are deductible under section 1 of this act.

NEW SECTION.  Sec. 3   This act takes effect July 1, 2004.