BILL REQ. #: S-4760.3
| State of Washington | 58th Legislature | 2004 Regular Session |
READ FIRST TIME 02/26/04.
AN ACT Relating to sales and use tax exemptions for light and power businesses; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 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 82.08 RCW
to read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of
machinery and equipment used directly in generating electricity by
light and power businesses in new generation facilities, but only if
the purchaser 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.
(2) For purposes of this section and section 2 of this act:
(a) "Light and power business" has the same meaning as defined RCW
82.16.010.
(b) "Machinery and equipment" means industrial fixtures, devices,
and support facilities that are integral and necessary to the
generation of electricity.
(c) "Machinery and equipment" does not include: (i) Hand-powered
tools; (ii) property with a useful life of less than one year; (iii)
repair parts required to restore machinery and equipment to normal
working order; (iv) replacement parts that do not increase
productivity, improve efficiency, or extend the useful life of
machinery and equipment; (v) buildings; or (vi) building fixtures that
are not integral and necessary to the generation of electricity that
are permanently affixed to and become a physical part of a building.
(d) Machinery and equipment is "used directly" in generating
electricity if it is part of the process that converts any type of
nonelectrical energy into electricity.
(e) "New generation facilities" do not include facilities in
existence prior to the effective date of this act and are limited to
gas-fired generation.
NEW SECTION. Sec. 2 A new section is added to chapter 82.12 RCW
to read as follows:
(1) The provisions of this chapter do not apply in respect to the
use by a light and power business of machinery and equipment used
directly in generating electricity in new generation facilities.
(2) The definitions in section 1 of this act apply to this section.
NEW SECTION. Sec. 3 This act takes effect July 1, 2004.