BILL REQ. #:  H-0172.2 

Read first time 01/13/2005.   Referred to Committee on Finance.

     AN ACT Relating to accountability for tax incentives; and adding a new chapter to Title 82 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds that when public funds, through tax incentives, are used to support private enterprise, the public may gain through the creation of jobs, the diversification of the economy, and by raising living standards. The legislature further finds that such returns on taxpayers' public investments are not automatic and that tax incentives may result in a greater tax burden to those not eligible for public support or may result in a lower return to the public than if the taxes were collected and spent on education, health care, or other critical social services. Therefore, in order to improve the effectiveness of tax incentives for supporting private enterprise and to ensure that they achieve the goal of raising living standards for working families and strengthening the Washington state economy, the legislature finds it necessary to collect, analyze, and make publicly available information regarding those tax incentives.

NEW SECTION.  Sec. 2   Tax exemptions, exclusions, deductions, and credits allowed under the sections listed below are tax incentives for the purposes of this chapter.
RCW 36.100.090          Baseball stadium deferral
RCW 36.102.070          Football stadium deferral
RCW 48.14.020(3)     Tax rate for ocean marine insurance
RCW 48.14.029          Tax credit for international services
RCW 66.24.290(3)(b)     Beer tax exemption for microbrewers
RCW 82.04.050(1)(d)     Ferrosilicon
RCW 82.04.062          Precious metals and bullion
RCW 82.04.110          Aluminum master alloys
RCW 82.04.120          Processors of seafood
RCW 82.04.2403          Fish cleaning
RCW 82.04.260(5) and (6)     Nuclear fuel assemblies
RCW 82.04.260(8)     Charter and freight brokers
RCW 82.04.260(9)     Stevedoring
RCW 82.04.272          Resellers of prescription drugs
RCW 82.04.290(1)     International investment management
RCW 82.04.315          International banking facilities
RCW 82.04.317          Wholesale auto auctions
RCW 82.04.421          Memberships to purchase at discount
RCW 82.04.4295          Manufacturing completed in Washington
RCW 82.04.4333          Job training services
RCW 82.04.4334          Sale of alternative fuel
RCW 82.04.4335          Sale of wood biomass fuel
RCW 82.04.434          Testing and safety labs
RCW 82.04.4452          Research and development; high technology firms
RCW 82.04.44525          International services
RCW 82.04.447          Natural gas purchases by direct service industrial customers
RCW 82.08.0255(1)     Fuel for aircraft research
RCW 82.08.02565          Manufacturing machinery
RCW 82.08.02566          Equipment for designing aircraft parts
RCW 82.08.02567          Electric generating equipment; renewable resources
RCW 82.08.02568          Anodes and cathodes for aluminum production
RCW 82.08.0315          Film and video production equipment
RCW 82.08.810          Air pollution control facilities
RCW 82.08.811          Coal for thermal generating plants
RCW 82.08.820          Tax remittance for warehouse expansion
RCW 82.08.955          Distribution of biodiesel/alcohol fuels
RCW 82.08.960          Distribution of wood biomass fuel
RCW 82.12.024          Natural gas purchased by direct service industrial customers
RCW 82.12.0256(1)     Fuel for aircraft research
RCW 82.12.02565          Manufacturing machinery
RCW 82.12.02566          Equipment for designing aircraft parts
RCW 82.12.02567          Electric generating equipment; renewable resources
RCW 82.12.02568          Anodes and cathodes for aluminum production
RCW 82.12.0315          Film and video production equipment
RCW 82.12.810          Air pollution control facilities
RCW 82.12.811          Coal for thermal generating plants
RCW 82.12.820          Tax remittance for warehouse expansion
RCW 82.12.955          Distribution of biodiesel/alcohol fuels
RCW 82.12.960          Distribution of wood biomass fuel blend
RCW 82.16.0495          Credit for electricity purchased by direct service industrial customers
RCW 82.16.055          Cogeneration facilities and renewable resources
RCW 82.29A.130(14)     Professional baseball stadium
RCW 82.29A.130(15)     Professional football stadium
RCW 82.29A.130(16)     Public facilities districts
RCW 82.29A.135          Gasohol production facilities
RCW 82.35.050          Cogeneration facilities
RCW 82.60.040          Rural county deferral
RCW 82.62.030, 82.62.045     New jobs in rural counties and community empowerment zones
RCW 82.66.040          Horse race track deferral
RCW 84.36.590          Vitrification equipment
RCW 84.36.635          Alcohol/biodiesel fuel production facilities
RCW 84.36.640          Wood biomass fuel production facilities

NEW SECTION.  Sec. 3   (1) A person receiving a tax incentive must file an annual survey with the department in a form prescribed by the department. The survey is due by March 31st of the year following any year in which the benefit of a tax incentive is received by the person. The department may extend the time for filing annual surveys under this section, as provided in section 4 of this act. A person receiving more than one tax incentive need only file one survey with the department.
     (2) The survey must include the following information about the person:
     (a) The person's name;
     (b) The person's tax registration number;
     (c) Type of activity in which the person is engaged in;
     (d) How long the person has been engaging in business in this state;
     (e) The tax incentive or incentives being taken; and
     (f) The total amount of the tax incentives received in the calendar year.
     (3) The survey must also detail employment, wages, and employer-provided health and retirement benefits per job in the state of Washington. The survey must not include names of employees. The survey must also detail employment by the total number of full-time, part-time, and temporary positions.
     (4) The survey must include a statement explaining why the person needs the tax incentive in order to create new jobs or to fulfill some other public benefit that raises the living standards of Washington workers or strengthens the Washington state economy.
     (5) All information collected under this section, including the total amount of tax incentives received, is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

NEW SECTION.  Sec. 4   (1) If the department finds that the failure of a taxpayer to file by the due date an annual survey under this chapter, or any other statute requiring taxpayers to file annual surveys, was the result of circumstances beyond the control of the taxpayer, the department shall extend the time for filing the survey. The extension shall be for a period of thirty days from the date the department issues its written notification to the taxpayer that it qualifies for an extension under this section. The department may grant additional extensions as it deems proper.
     (2) In making a determination whether the failure of a taxpayer to file an annual survey by the due date was the result of circumstances beyond the control of the taxpayer, the department shall be guided by rules adopted by the department for the waiver or cancellation of penalties when the underpayment or untimely payment of any tax was due to circumstances beyond the control of the taxpayer.

NEW SECTION.  Sec. 5   (1) Persons required to file surveys with the department under this chapter or any other statute requiring taxpayers to file annual surveys must electronically file with the department all surveys, returns, and any other forms or information the department requires in electronic format, unless the department grants relief under subsection (2) of this section. As used in this section, "return" is defined as provided in RCW 82.32.050.
     (2) Upon request, the department may relieve a person of the obligations in subsection (1) of this section if the person's taxes have been reduced from all tax incentives a total of less than one thousand dollars in the current calendar year and a total of less than one thousand dollars in the previous calendar year.
     (3) Persons who no longer qualify for relief under subsection (2) of this section will be notified in writing by the department and must comply with subsection (1) of this section by the date provided in the notice. A person no longer qualifies for relief under subsection (2) of this section when the person's taxes have been reduced a total of at least one thousand dollars in the current calendar year from all tax incentives.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act constitute a new chapter in Title 82 RCW.