READ FIRST TIME 04/07/03.   

     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 is classified by the federal aviation administration as a FAR part 145 certificated repair station with airframe and instrument ratings and limited ratings for nondestructive testing, radio, Class 3 Accessory, 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 person reporting tax under RCW 82.04.250(3) shall file a report to the department of revenue in the month following each calendar quarter containing the following information:
     (a) Number of production workers;
     (b) Average wage of production workers;
     (c) Total wages for production workers;
     (d) Total sales as measured by taxable receipts for activities reported under RCW 82.04.250(3); and
     (e) Total wages for production workers as a percent of total sales reported under RCW 82.04.250(3).
     (2) 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 report, 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 has been restored, and eligibility is effective prospectively beginning on the date the letter is postmarked.

NEW SECTION.  Sec. 3   This act expires July 1, 2006.

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