BILL REQ. #: Z-0098.6
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 02/03/2005. Referred to Committee on Finance.
AN ACT Relating to improving consistency among tax incentives enacted during the 2003-2005 biennium; amending RCW 82.63.010, 82.63.020, 82.63.045, 82.60.020, 82.60.049, 82.60.060, 82.60.065, 82.60.070, 82.60.100, 82.04.4483, 82.04.4484, 82.32.535, 82.32.545, 82.32.560, and 82.32.570; adding new sections to chapter 82.32 RCW; adding new sections to chapter 82.60 RCW; creating a new section; prescribing penalties; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 82.32 RCW
to read as follows:
(1) If the department finds that the failure of a taxpayer to file
an annual survey under RCW 82.04.4483, 82.04.4484, 82.32.535,
82.32.545, 82.32.570, 82.32.560, 82.60.070, 82.62.050, or 82.63.020 by
the due date was the result of circumstances beyond the control of the
taxpayer, the department shall extend the time for filing the survey.
Such 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
WAC 458-20-228 relating to 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. 2 A new section is added to chapter 82.32 RCW
to read as follows:
(1) Persons required to file surveys under RCW 82.04.4483,
82.04.4484, 82.32.535, 82.32.545, 82.32.570, 82.32.560, 82.60.070,
82.62.050, or 82.63.020 must electronically file with the department
all surveys, returns, and any other forms or information the department
requires in an electronic format as provided or approved by the
department, unless the department grants relief under subsection (2) of
this section. As used in this section, "returns" has the same meaning
as "return" 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 a cumulative total of less than one thousand dollars
in a calendar year from all of the credits, exemptions, or preferential
business and occupation tax rates, for which a person is required to
file an annual survey under RCW 82.04.4452, 82.04.4483, 82.04.4484,
82.32.535, 82.32.545, 82.32.570, 82.32.560, 82.60.070, 82.62.050, or
82.63.020.
(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.
(4) Any survey, return, or any other form or information required
to be filed in an electronic format under subsection (1) of this
section is not filed until received by the department in an electronic
format.
Sec. 3 RCW 82.63.010 and 2004 c 2 s 3 are each amended to read as
follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Advanced computing" means technologies used in the designing
and developing of computing hardware and software, including
innovations in designing the full spectrum of hardware from hand-held
calculators to super computers, and peripheral equipment.
(2) "Advanced materials" means materials with engineered properties
created through the development of specialized processing and synthesis
technology, including ceramics, high value-added metals, electronic
materials, composites, polymers, and biomaterials.
(3) "Applicant" means a person applying for a tax deferral under
this chapter.
(4) "Biotechnology" means the application of technologies, such as
recombinant DNA techniques, biochemistry, molecular and cellular
biology, genetics and genetic engineering, cell fusion techniques, and
new bioprocesses, using living organisms, or parts of organisms, to
produce or modify products, to improve plants or animals, to develop
microorganisms for specific uses, to identify targets for small
molecule pharmaceutical development, or to transform biological systems
into useful processes and products or to develop microorganisms for
specific uses.
(5) "Department" means the department of revenue.
(6) "Electronic device technology" means technologies involving
microelectronics; semiconductors; electronic equipment and
instrumentation; radio frequency, microwave, and millimeter
electronics; optical and optic-electrical devices; and data and digital
communications and imaging devices.
(7) "Eligible investment project" means an investment project which
either initiates a new operation, or expands or diversifies a current
operation by expanding, renovating, or equipping an existing facility.
The lessor or owner of the qualified building is not eligible for a
deferral unless:
(a) The underlying ownership of the buildings, machinery, and
equipment vests exclusively in the same person; or
(b)(i) The lessor by written contract agrees to pass the economic
benefit of the deferral to the lessee;
(ii) The lessee that receives the economic benefit of the deferral
agrees in writing with the department to complete the annual survey
required under RCW 82.63.020(2); and
(iii) The economic benefit of the deferral passed to the lessee is
no less than the amount of tax deferred by the lessor and is evidenced
by written documentation of any type of payment, credit, or other
financial arrangement between the lessor or owner of the qualified
building and the lessee.
(8) "Environmental technology" means assessment and prevention of
threats or damage to human health or the environment, environmental
cleanup, and the development of alternative energy sources.
(9) "Investment project" means an investment in qualified buildings
or qualified machinery and equipment, including labor and services
rendered in the planning, installation, and construction or improvement
of the project.
(10) "Person" has the meaning given in RCW 82.04.030 and includes
state universities as defined in RCW 28B.10.016.
(11) "Pilot scale manufacturing" means design, construction, and
testing of preproduction prototypes and models in the fields of
biotechnology, advanced computing, electronic device technology,
advanced materials, and environmental technology other than for
commercial sale. As used in this subsection, "commercial sale"
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) "Qualified buildings" means construction of new structures
including parking facilities, and expansion or renovation of existing
structures for the purpose of increasing floor space or production
capacity, used for pilot scale manufacturing or qualified research and
development, including plant offices and other facilities that are an
essential or an integral part of a structure used for pilot scale
manufacturing or qualified research and development. If a building is
used partly for pilot scale manufacturing or qualified 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.
(13) "Qualified machinery and equipment" means fixtures, equipment,
and support facilities that are an integral and necessary part of a
pilot scale manufacturing or qualified research and development
operation. "Qualified machinery and equipment" includes: Computers;
software; data processing equipment; laboratory equipment,
instrumentation, and other devices used in a process of experimentation
to develop a new or improved pilot model, plant process, product,
formula, invention, or similar property; manufacturing components such
as belts, pulleys, shafts, and moving parts; molds, tools, and dies;
vats, tanks, and fermenters; operating structures; and all other
equipment used to control, monitor, or operate the machinery. For
purposes of this chapter, qualified machinery and equipment must be
either new to the taxing jurisdiction of the state or new to the
certificate holder, except that used machinery and equipment may be
treated as qualified machinery and equipment if the certificate holder
either brings the machinery and equipment into Washington or makes a
retail purchase of the machinery and equipment in Washington or
elsewhere.
(14) "Qualified research and development" means research and
development performed within this state in the fields of advanced
computing, advanced materials, biotechnology, electronic device
technology, and environmental technology.
(15) "Recipient" means a person receiving a tax deferral under this
chapter.
(16) "Research and development" means activities performed to
discover technological information, and technical and nonroutine
activities concerned with translating technological information into
new or improved products, processes, techniques, formulas, inventions,
or software. The term includes exploration of a new use for an
existing drug, device, or biological product if the new use requires
separate licensing by the federal food and drug administration under
chapter 21, C.F.R., as amended. The term does not include adaptation
or duplication of existing products where the products are not
substantially improved by application of the technology, nor does the
term include surveys and studies, social science and humanities
research, market research or testing, quality control, sale promotion
and service, computer software developed for internal use, and research
in areas such as improved style, taste, and seasonal design.
(17)(a) "Initiation of construction" means the date that a building
permit is issued under the building code adopted under RCW 19.27.031
for:
(i) Construction of the qualified building, if the underlying
ownership of the building vests exclusively with the person receiving
the economic benefit of the deferral;
(ii) Construction of the qualified building, if the economic
benefits of the deferral are passed to a lessee as provided in
subsection (7) of this section; or
(iii) Tenant improvements for a qualified building, if the economic
benefits of the deferral are passed to a lessee as provided in
subsection (7) of this section.
(b) "Initiation of construction" does not include soil testing,
site clearing and grading, site preparation, or any other related
activities that are initiated before the issuance of a building permit
for the construction of the foundation of the building.
(c) If the investment project ((is a phased project)) involves more
than one qualified building, "initiation of construction" shall apply
separately to each ((phase)) qualified building.
Sec. 4 RCW 82.63.020 and 2004 c 2 s 4 are each amended to read as
follows:
(1) Application for deferral of taxes under this chapter must be
made before initiation of construction of, or acquisition of equipment
or machinery for the investment project. The application shall be made
to the department in a form and manner prescribed by the department.
The application shall contain information regarding the location of the
investment project, the applicant's average employment in the state for
the prior year, estimated or actual new employment related to the
project, estimated or actual wages of employees related to the project,
estimated or actual costs, time schedules for completion and operation,
and other information required by the department. The department shall
rule on the application within sixty days.
(2)(a) The legislature finds that accountability and effectiveness
are important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources the
legislature needs information on how a tax incentive is used.
(b) ((Applicants for)) Recipients of a deferral of taxes under this
chapter shall ((agree to complete an)) file a complete annual survey
with the department. If the economic benefits of the deferral are
passed to a lessee as provided in RCW 82.63.010(7), the lessee shall
((agree to complete the)) file a complete annual survey with the
department and the applicant is not required to file a complete ((the))
annual survey. The survey is due by March 31st of the year following
the calendar year in which the investment project is certified by the
department as having been operationally complete and the seven
succeeding calendar years. The department may extend the due date for
timely filing annual surveys under this section, as provided in section
1 of this act. The survey shall include the amount of tax deferred,
the number of new products or research projects by general
classification, and the number of trademarks, patents, and copyrights
associated with activities at the investment project. The survey shall
also include the following information for employment positions in
Washington:
(i) The number of total employment positions;
(ii) Full-time, part-time, and temporary employment positions as a
percent of total employment;
(iii) The number of employment positions according to the following
wage bands: Less than thirty thousand dollars; thirty thousand dollars
or greater, but less than sixty thousand dollars; and sixty thousand
dollars or greater. A wage band containing fewer than three
individuals may be combined with another wage band; and
(iv) The number of employment positions that have employer-provided
medical, dental, and retirement benefits, by each of the wage bands.
(c) The department may request additional information necessary to
measure the results of the deferral program, to be submitted at the
same time as the survey.
(d) If a recipient of the deferral fails to file a complete annual
survey required under this subsection by the date due or any extension
granted under section 1 of this act, the portion of deferred taxes that
need not be repaid for the previous calendar year according to the
schedule in RCW 82.63.045(2) shall be immediately due and payable. If
the economic benefits of the deferral are passed to a lessee as
provided in RCW 82.63.010(7), the lessee is responsible for payment to
the extent the lessee has received the economic benefit. The
department shall assess interest, but not penalties, on the deferred
taxes payable under this subsection. The interest shall be assessed at
the rate provided for delinquent excise taxes under chapter 82.32 RCW,
retroactively to the date of deferral, and shall accrue until the
deferred taxes are repaid.
(e) A recipient who must repay deferred taxes under RCW
82.63.045(2) because the department has found that an investment
project is used for purposes other than qualified research and
development or pilot scale manufacturing is no longer required to file
annual surveys under this section beginning on the date an investment
project is used for nonqualifying purposes.
(f) All information collected under this subsection, except the
amount of the tax deferral taken, is deemed taxpayer information under
RCW 82.32.330 ((and is not disclosable)). Information on the amount of
tax deferral taken is not subject to the confidentiality provisions of
RCW 82.32.330 and may be disclosed to the public upon request.
(3) The department shall use the information from this section to
prepare summary descriptive statistics by category. No fewer than
three taxpayers shall be included in any category. The department
shall report these statistics to the legislature each year by September
1st.
(4) The department shall use the information to study the tax
deferral program authorized under this chapter. The department shall
report to the legislature by December 1, 2009, and December 1, 2013.
The reports shall measure the effect of the program on job creation,
the number of jobs created for Washington residents, company growth,
the introduction of new products, the diversification of the state's
economy, growth in research and development investment, the movement of
firms or the consolidation of firms' operations into the state, and
such other factors as the department selects.
Sec. 5 RCW 82.63.045 and 2004 c 2 s 6 are each amended to read as
follows:
(1) Except as provided in subsection (2) of this section, taxes
deferred under this chapter need not be repaid.
(2)(((a))) If, on the basis of a survey under RCW 82.63.020 or
other information, the department finds that an investment project is
used for purposes other than qualified research and development or
pilot scale manufacturing at any time during the calendar year in which
the investment project is certified by the department as having been
operationally completed, or at any time during any of the seven
succeeding calendar years, a portion of deferred taxes shall be
immediately due according to the following schedule:
| Year in which use occurs | % of deferred taxes due |
| 1 | 100% |
| 2 | 87.5% |
| 3 | 75% |
| 4 | 62.5% |
| 5 | 50% |
| 6 | 37.5% |
| 7 | 25% |
| 8 | 12.5% |
Sec. 6 RCW 82.60.020 and 2004 c 25 s 3 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 rural county as defined in RCW
82.14.370.
(4)(a) "Eligible investment project" means an investment project in
an eligible area as defined in subsection (3) of this section.
(b) The lessor or owner of a qualified building is not eligible for
a deferral unless:
(i) The underlying ownership of the buildings, machinery, and
equipment vests exclusively in the same person; or
(ii)(A) The lessor by written contract agrees to pass the economic
benefit of the deferral to the lessee;
(B) The lessee that receives the economic benefit of the deferral
agrees in writing with the department to complete the annual survey
required under RCW 82.60.070; and
(C) The economic benefit of the deferral passed to the lessee is no
less than the amount of tax deferred by the lessor and is evidenced by
written documentation of any type of payment, credit, or other
financial arrangement between the lessor or owner of the qualified
building and the lessee.
(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)(a) "Initiation of construction" means the date that a building
permit is issued under the building code adopted under RCW 19.27.031
for:
(i) Construction of the qualified building, if the underlying
ownership of the building vests exclusively with the person receiving
the economic benefit of the deferral;
(ii) Construction of the qualified building, if the economic
benefits of the deferral are passed to a lessee as provided in
subsection (4) of this section; or
(iii) Tenant improvements for a qualified building, if the economic
benefits of the deferral are passed to a lessee as provided in
subsection (4) of this section.
(b) "Initiation of construction" does not include soil testing,
site clearing and grading, site preparation, or any other related
activities that are initiated before the issuance of a building permit
for the construction of the foundation of the building.
(c) If the investment project involves more than one qualified
building, initiation of construction applies separately to each
qualified building.
(6) "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))) (7) "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))) (8) "Person" has the meaning given in RCW 82.04.030.
(((8))) (9) "Qualified buildings" means construction of new
structures including parking facilities, 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))) (10) "Qualified employment position" means a permanent
full-time employee employed in the eligible investment project during
the entire tax year. The term "entire tax year" means a full-time
position that is filled for a period of twelve consecutive months. The
term "full-time" means at least thirty-five hours a week, four hundred
fifty-five hours a quarter, or one thousand eight hundred twenty hours
a year.
(((10))) (11) "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.
(((11))) (12) "Recipient" means a person receiving a tax deferral
under this chapter.
(((12))) (13) "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.
Sec. 7 RCW 82.60.049 and 2004 c 25 s 5 are each amended to read
as follows:
(1) For the purposes of this section:
(a) "Eligible area" also means a designated community empowerment
zone approved under RCW 43.31C.020 or a county containing a community
empowerment zone.
(b) "Eligible investment project" also means an investment project
in an eligible area as defined in this section.
(2) In addition to the provisions of RCW 82.60.040, 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, if the applicant establishes that at the time the project is
operationally complete:
(a) The applicant will hire at least one qualified employment
position for each seven hundred fifty thousand dollars of investment
for which a deferral is requested; and
(b) The positions will be filled by persons who at the time of hire
are residents of the community empowerment zone. As used in this
subsection, "resident" means the person makes his or her home in the
community empowerment zone. A mailing address alone is insufficient to
establish that a person is a resident for the purposes of this section.
The persons must be hired after the date the application is filed with
the department.
(3) All other provisions and eligibility requirements of this
chapter apply to applicants eligible under this section.
(4) The qualified employment position must be filled by the end of
the calendar year following the year in which the project is certified
as operationally complete. If a person does not meet the requirements
for qualified employment positions by the end of the second calendar
year following the year in which the project is certified as
operationally complete, all deferred taxes are immediately due. The
provisions of section 9(3) of this act apply to the taxes payable under
this subsection.
Sec. 8 RCW 82.60.060 and 2000 c 106 s 5 are each amended to read
as follows:
(1) The recipient shall begin paying the deferred taxes in the
third year after the date certified by the department as the date on
which the construction project has been operationally completed. The
first payment will be due on December 31st of the third calendar year
after such certified date, with subsequent annual payments due on
December 31st of the following four years with amounts of payment
scheduled as follows:
| Repayment Year | % of Deferred Tax Repaid |
| 1 | 10% |
| 2 | 15% |
| 3 | 20% |
| 4 | 25% |
| 5 | 30% |
NEW SECTION. Sec. 9 A new section is added to chapter 82.60 RCW
to read as follows:
(1) Except as provided in subsection (2) of this section, taxes
deferred under this chapter need not be repaid.
(2) If, on the basis of a survey under RCW 82.60.070 or other
information, the department finds that an investment project is not
eligible for tax deferral under this chapter, a portion of deferred
taxes shall be immediately due and payable according to the following
schedule:
| Year In Which Ineligibility Occurs | % of Deferred Taxes Due |
| 1 | 100% |
| 2 | 87.5% |
| 3 | 75% |
| 4 | 62.5% |
| 5 | 50% |
| 6 | 37.5% |
| 7 | 25% |
| 8 | 12.5% |
Sec. 10 RCW 82.60.065 and 1995 1st sp.s. c 3 s 8 are each amended
to read as follows:
Except as provided in RCW 82.60.060, section 9 of this act, and
82.60.070:
(1) Taxes deferred under this chapter on the sale or use of labor
that is directly used in the construction of an investment project for
which a deferral has been granted under this chapter after June 11,
1986, and prior to July 1, 1994, need not be repaid.
(2) Taxes deferred under this chapter on an investment project for
which a deferral has been granted under this chapter after June 30,
1994, need not be repaid.
(3) Taxes deferred under this chapter need not be repaid on
machinery and equipment for lumber and wood products industries, and
sales of or charges made for labor and services, of the type which
qualifies for exemption under RCW 82.08.02565 or 82.12.02565 to the
extent the taxes have not been repaid before July 1, 1995.
Sec. 11 RCW 82.60.070 and 2004 c 25 s 7 are each amended to read
as follows:
(1)(a) The legislature finds that accountability and effectiveness
are important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources the
legislature needs information on how a tax incentive is used.
(b) Each recipient of a deferral granted under this chapter after
June 30, 1994, shall file a complete ((an)) annual survey with the
department. If the economic benefits of the deferral are passed to a
lessee as provided in RCW 82.60.020(4), the lessee shall ((agree to
complete the)) file a complete annual survey and the applicant is not
required to file a complete ((the)) annual survey. The survey is due
by March 31st of the year following the calendar year in which the
investment project is certified by the department as having been
operationally complete and the seven succeeding calendar years. The
department may extend the due date for timely filing annual surveys
under this section, as provided in section 1 of this act. The survey
shall include the amount of tax deferred, the number of new products or
research projects by general classification, and the number of
trademarks, patents, and copyrights associated with activities at the
investment project. The survey shall also include the following
information for employment positions in Washington:
(i) The number of total employment positions;
(ii) Full-time, part-time, and temporary employment positions as a
percent of total employment;
(iii) The number of employment positions according to the following
wage bands: Less than thirty thousand dollars; thirty thousand dollars
or greater, but less than sixty thousand dollars; and sixty thousand
dollars or greater. A wage band containing fewer than three
individuals may be combined with another wage band; and
(iv) The number of employment positions that have employer-provided
medical, dental, and retirement benefits, by each of the wage bands.
(c) The department may request additional information necessary to
measure the results of the deferral program, to be submitted at the
same time as the survey.
(d) All information collected under this subsection, except the
amount of the tax deferral taken, is deemed taxpayer information under
RCW 82.32.330 ((and is not disclosable)). Information on the amount of
tax deferral taken is not subject to the confidentiality provisions of
RCW 82.32.330 and may be disclosed to the public upon request.
(e) The department shall use the information from this section to
prepare summary descriptive statistics by category. No fewer than
three taxpayers shall be included in any category. The department
shall report these statistics to the legislature each year by September
1st.
(f) The department shall also use the information to study the tax
deferral program authorized under this chapter. The department shall
report to the legislature by December 1, 2009. The report shall
measure the effect of the program on job creation, the number of jobs
created for residents of eligible areas, company growth, the
introduction of new products, the diversification of the state's
economy, growth in research and development investment, the movement of
firms or the consolidation of firms' operations into the state, and
such other factors as the department selects.
(2)(((a) If, on the basis of a survey under this section or other
information, the department finds that an investment project is not
eligible for tax deferral under this chapter, the amount of deferred
taxes outstanding for the project shall be immediately due.)) If a recipient of the deferral fails to file a complete
((
(b)the)) annual survey required under subsection (1) of this section by
the date due, ((twelve and one-half percent of the deferred tax)) the
portion of deferred taxes that need not be repaid for the previous
calendar year according to the schedule in section 9(2) of this act
shall be immediately due and payable. If the economic benefits of the
deferral are passed to a lessee as provided in RCW 82.60.020(4), the
lessee shall be responsible for payment to the extent the lessee has
received the economic benefit. The department shall assess interest,
but not penalties, on the deferred taxes payable under this subsection.
The interest shall be assessed at the rate provided for delinquent
excise taxes under chapter 82.32 RCW, retroactively to the date of
deferral, and shall accrue until the deferred taxes are repaid.
(3) ((Notwithstanding any other subsection of this section,
deferred taxes need not be repaid on machinery and equipment for lumber
and wood products industries, and sales of or charges made for labor
and services, of the type which qualifies for exemption under RCW
82.08.02565 or 82.12.02565 to the extent the taxes have not been repaid
before July 1, 1995.)) A recipient who
must repay deferred taxes under RCW 82.60.060(1) or section 9(2) of
this act because the department has found that an investment project is
not eligible for tax deferral under this chapter is no longer required
to file annual surveys under this section beginning on the date the
investment project is not eligible for tax deferral under this chapter.
(4) Notwithstanding any other subsection of this section, deferred
taxes on the following need not be repaid:
(a) Machinery and equipment, and sales of or charges made for labor
and services, which at the time of purchase would have qualified for
exemption under RCW 82.08.02565; and
(b) Machinery and equipment which at the time of first use would
have qualified for exemption under RCW 82.12.02565.
Sec. 12 RCW 82.60.100 and 1987 c 49 s 1 are each amended to read
as follows:
Applications((, reports, and any other information)) received by
the department under this chapter shall not be confidential ((and shall
be subject to disclosure)) under RCW 82.32.330.
NEW SECTION. Sec. 13 A new section is added to chapter 82.60 RCW
to read as follows:
(1) Notwithstanding any other provision of this chapter, deferred
taxes need not be repaid on machinery and equipment for lumber and wood
products industries, and sales of or charges made for labor and
services, of the type which qualifies for exemption under RCW
82.08.02565 or 82.12.02565 to the extent the taxes have not been repaid
before July 1, 1995.
(2) Notwithstanding any other provision of this chapter, deferred
taxes on the following need not be repaid:
(a) Machinery and equipment, and sales of or charges made for labor
and services, which at the time of purchase would have qualified for
exemption under RCW 82.08.02565; and
(b) Machinery and equipment, which at the time of first use would
have qualified for exemption under RCW 82.12.02565.
Sec. 14 RCW 82.04.4483 and 2004 c 25 s 1 are each amended to read
as follows:
(1) Subject to the limits and provisions of this section, a credit
is authorized against the tax otherwise due under this chapter for
persons engaged in a rural county in the business of manufacturing
computer software or programming, as those terms are defined in this
section.
(2) A person who partially or totally relocates a business from one
rural county to another rural county is eligible for any new qualifying
employment positions created as a result of the relocation but is not
eligible to receive credit for the jobs moved from one county to the
other.
(3)(a) To qualify for the credit, the qualifying activity of the
person must be conducted in a rural county and the new qualified
employment position must be located in the rural county.
(b) If an activity is conducted both from a rural county and
outside of a rural county, the credit is available if at least ninety
percent of the qualifying activity is conducted within a rural county.
If the qualifying activity is a service taxable activity, the place
where the work is performed is the place at which the activity is
conducted.
(4)(a) The credit under this section shall equal one thousand
dollars for each new qualified employment position created after
January 1, 2004, in an eligible area. A credit is earned for the
calendar year the person is hired to fill the position. Additionally
a credit is earned for each year the position is maintained over the
subsequent consecutive years, up to four years. The county must meet
the definition of a rural county at the time the position is filled.
If the county does not have a rural county status the following year or
years, the position is still eligible for the remaining years if all
other conditions are met.
(b) Participants who claimed credit under RCW 82.04.4456 for
qualified employment positions created before December 31, 2003, are
eligible to earn credit for each year the position is maintained over
the subsequent consecutive years, for up to four years, which four
years include any years claimed under RCW 82.04.4456. Those persons
who did not receive a credit under RCW 82.04.4456 before December 31,
2003, are not eligible to earn credit for qualified employment
positions created before December 31, 2003.
(c) Credit is authorized for new employees hired for new qualified
employment positions created on or after January 1, 2004. New
qualified employment positions filled by existing employees are
eligible for the credit under this section only if the position vacated
by the existing employee is filled by a new hire. A business that is
a sole proprietorship without any employees is equivalent to one
employee position and this type of business is eligible to receive
credit for one position.
(d) If a position is filled before July 1st, the position is
eligible for the full yearly credit for that calendar year. If it is
filled after June 30th, the position is eligible for half of the credit
for that calendar year.
(5) No application is necessary for the tax credit. The person
must keep records necessary for the department to verify eligibility
under this section. This information includes information relating to
description of qualifying activity conducted in the rural county and
outside the rural county by the person as well as detailed records on
positions and employees.
(6) Except as provided in subsection (9) of this section, if at any
time the department finds that a person is not eligible for tax credit
under this section, the amount of taxes for which a credit has been
claimed shall be immediately due and payable. The department shall
assess interest, but not penalties, on the taxes ((for)) against which
the ((person is not eligible)) credit was claimed. The interest shall
be assessed at the rate provided for delinquent excise taxes under
chapter 82.32 RCW, ((shall be assessed)) retroactively to the date the
tax credit was ((taken)) claimed, and shall accrue until the taxes
((for)) against which a credit ((has been used)) was claimed are
repaid.
(7) The credit under this section may be ((used)) claimed against
any tax due under this chapter, but in no case may a credit earned
during one calendar year be carried over to be credited against taxes
incurred in a subsequent calendar year. A person is not eligible to
receive a credit under this section if the person is receiving credit
for the same position under chapter 82.62 RCW or RCW 82.04.44525 or is
taking a credit under this chapter for information technology help desk
services conducted from a rural county. No refunds may be granted for
credits under this section.
(8) Transfer of ownership does not affect credit eligibility.
However, the successive credits are available to the ((successor)) new
owner for remaining periods in the five years only if the eligibility
conditions of this section are met.
(9)(a) A person ((taking)) claiming tax credits under this section
shall ((make an)) file a complete annual ((report to)) survey with the
department. The survey is due by March 31st following any year in
which a credit is claimed. The department may extend the due date for
timely filing annual surveys under this section, as provided in section
1 of this act.
(b) The ((report)) survey shall ((be in a letter form and shall))
include the following information about the person: ((Number of
positions for which credit is being claimed, type of position for which
credit is being claimed,))
(i) Type of activity in which the person is engaged in the
county((,));
(ii) How long the person has been located in the county((, and));
(iii) Taxpayer name; and
(iv) Taxpayer registration number. ((The report must be filed by
January 30th of each year for which credit was claimed during the
previous year. Failure to file a report will not result in the loss of
eligibility under this section. However, the department, through its
research division, shall contact taxpayers who have not filed the
report and obtain the data from the taxpayer or assist the taxpayer in
the filing of the report, so that the data and information necessary to
measure the program's effectiveness is maintained.))
(c) The survey shall also include the following information for
employment positions in Washington:
(i) The number of total employment positions;
(ii) Full-time, part-time, and temporary employment positions as a
percent of total employment;
(iii) The number of employment positions according to the following
wage bands: Less than thirty thousand dollars; thirty thousand dollars
or greater, but less than sixty thousand dollars; and sixty thousand
dollars or greater. A wage band containing fewer than three
individuals may be combined with another wage band; and
(iv) The number of employment positions that have employer-provided
medical, dental, and retirement benefits, by each of the wage bands.
(d) The department may request additional information necessary to
determine eligibility for the tax credit under this section, to be
submitted at the same time as the survey.
(e) All information collected under this subsection, except for the
total amount of the tax credit claimed under this section, is deemed
taxpayer information under RCW 82.32.330. The amount of tax credit
claimed is not subject to the confidentiality provisions of RCW
82.32.330, except that persons claiming a total of less than ten
thousand dollars of credit during the period covered by the survey may
request the department to treat the tax credit amount as confidential
under RCW 82.32.330.
(f) If a person fails to file a complete annual survey required
under this subsection (9) with the department by the due date or any
extension under section 1 of this act, the department shall declare the
amount of taxes against which the credit was claimed under this section
during the previous calendar year to be immediately due and payable.
The department shall assess interest, but not penalties, on the taxes
against which the credit was claimed. The interest shall be assessed
at the rate provided for delinquent excise taxes under chapter 82.32
RCW, retroactively to the date of deferral, and shall accrue until the
taxes against which the credit was claimed are repaid.
(g) The department shall use the information from this subsection
(9) to prepare summary descriptive statistics by category. No fewer
than three taxpayers may be included in any category. The department
shall report these statistics to the legislature each year by September
1st.
(10) As used in this section:
(a) "Computer software" has the meaning as defined in RCW 82.04.215
after June 30, 2004, and includes "software" as defined in RCW
82.04.215 before July 1, 2004.
(b) "Manufacturing" means the same as "to manufacture" under RCW
82.04.120. Manufacturing includes the activities of both manufacturers
and processors for hire.
(c) "Programming" means the activities that involve the creation or
modification of computer software, as that term is defined in this
chapter, and that are taxable as a service under RCW 82.04.290(2) or as
a retail sale under RCW 82.04.050.
(d) "Qualifying activity" means manufacturing of computer software
or programming.
(e) "Qualified employment position" means a permanent full-time
position doing programming of computer software or manufacturing of
computer software. This excludes administrative, professional,
service, executive, and other similar positions. If an employee is
either voluntarily or involuntarily separated from employment, the
employment position is considered filled on a full-time basis if the
employer is either training or actively recruiting a replacement
employee. Full-time means a position for at least thirty-five hours a
week.
(f) "Rural county" means the same as in RCW 82.14.370.
(11) No credit may be taken or accrued under this section on or
after January 1, 2011.
(12) This section expires January 1, 2011.
Sec. 15 RCW 82.04.4484 and 2004 c 25 s 2 are each amended to read
as follows:
(1) Subject to the limits and provisions of this section, a credit
is authorized against the tax otherwise due under this chapter for
persons engaged in a rural county in the business of providing
information technology help desk services to third parties.
(2) To qualify for the credit, the help desk services must be
conducted from a rural county.
(3) The amount of the tax credit for persons engaged in the
activity of providing information technology help desk services in
rural counties shall be equal to one hundred percent of the amount of
tax due under this chapter that is attributable to providing the
services from the rural county. In order to qualify for the credit
under this subsection, the county must meet the definition of rural
county at the time the person begins to conduct qualifying business in
the county.
(4) No application is necessary for the tax credit. The person
must keep records necessary for the department to verify eligibility
under this section. These records include information relating to
description of activity engaged in a rural county by the person.
(5) Except as provided in subsection (8) of this section, if at any
time the department finds that a person is not eligible for tax credit
under this section, the amount of taxes for which a credit ((has been
used)) was claimed is immediately due and payable. The department
shall assess interest, but not penalties, on the ((credited)) taxes for
which ((the person is not eligible)) credit was claimed. The interest
shall be assessed at the rate provided for delinquent excise taxes
under chapter 82.32 RCW, ((shall be assessed)) retroactively to the
date the tax credit was ((taken)) claimed, and shall accrue until the
taxes for which a credit ((has been used)) was claimed are repaid.
(6) The credit under this section may be ((used)) claimed against
any tax due under this chapter, but in no case may a credit earned
during one calendar year be carried over to be credited against taxes
incurred in a subsequent calendar year. No refunds may be granted for
credits under this section.
(7) Transfer of ownership does not affect credit eligibility.
However, the credit is available to the ((successor)) new owner only if
the eligibility conditions of this section are met.
(8)(a) A person ((taking)) claiming tax credits under this section
shall ((make an)) file a complete annual ((report to)) survey with the
department. The survey is due by March 31st following any year in
which a credit is claimed. The department may extend the due date for
timely filing annual surveys under this section, as provided in section
1 of this act.
(b) The ((report shall be in a letter form and)) survey shall
include the following information about the person:
(i) Type of activity in which the person is engaged in the
county((,));
(ii) Total number of employees in the rural county((,));
(iii) How long the person has been located in the county((, and));
(iv) Taxpayer name; and
(v) Taxpayer registration number. ((The report must be filed by
January 30th of each year for which credit was claimed during the
previous year. Failure to file a report will not result in the loss of
eligibility under this section. However, the department, through its
research division, shall contact taxpayers who have not filed the
report and obtain the data from the taxpayer or assist the taxpayer in
the filing of the report, so that the data and information necessary to
measure the program's effectiveness is maintained.))
(c) The survey shall also include the following information for
employment positions in Washington:
(i) The number of total employment positions;
(ii) Full-time, part-time, and temporary employment positions as a
percent of total employment;
(iii) The number of employment positions according to the following
wage bands: Less than thirty thousand dollars; thirty thousand dollars
or greater, but less than sixty thousand dollars; and sixty thousand
dollars or greater. A wage band containing fewer than three
individuals may be combined with another wage band; and
(iv) The number of employment positions that have employer-provided
medical, dental, and retirement benefits, by each of the wage bands.
(d) The department may request additional information necessary to
determine eligibility for the tax credit under this section, to be
submitted at the same time as the survey.
(e) All information collected under this subsection, except for the
amount of the tax credit claimed, is deemed taxpayer information under
RCW 82.32.330. The amount of tax credit claimed is not subject to the
confidentiality provisions of RCW 82.32.330, except that persons
claiming less than ten thousand dollars of credit during the period
covered by the survey may request the department to treat the tax
credit amount as confidential under RCW 82.32.330.
(f) If a person fails to file a complete annual survey required
under this subsection (8) with the department by the due date or any
extension under section 1 of this act, the department shall declare the
amount of taxes against which a credit was claimed under this section
during the previous calendar year to be immediately due and payable.
The department shall assess interest, but not penalties, on the taxes
against which the credit was claimed. The interest shall be assessed
at the rate provided for delinquent excise taxes under chapter 82.32
RCW, retroactively to the date of deferral, and shall accrue until the
taxes against which the credit was claimed are repaid.
(g) The department shall use the information from this subsection
(8) to prepare summary descriptive statistics by category. No fewer
than three taxpayers may be included in any category. The department
shall report these statistics to the legislature each year by September
1st.
(9) As used in this section:
(a) "Information technology help desk services" means the following
services performed using electronic and telephonic communication:
(i) Software and hardware maintenance;
(ii) Software and hardware diagnostics and troubleshooting;
(iii) Software and hardware installation;
(iv) Software and hardware repair;
(v) Software and hardware information and training; and
(vi) Software and hardware upgrade.
(b) "Rural county" means the same as in RCW 82.14.370.
(10) This section expires January 1, 2011.
Sec. 16 RCW 82.32.535 and 2003 c 149 s 11 are each amended to
read as follows:
(1) The legislature finds that accountability and effectiveness are
important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources the
legislature needs information on how a tax incentive is used.
(2)(a) A person who reports taxes under RCW 82.04.240(2) or who
claims an exemption or credit under RCW 82.04.426, 82.08.965,
82.12.965, 82.08.970, 82.12.970, 82.04.448, or 84.36.645, shall ((make
an annual)) report information to the department by filing a complete
annual survey detailing employment, wages, and employer-provided health
and retirement benefits per job at the manufacturing site. The
((report)) survey shall not include names of employees. The ((report))
survey shall also detail employment by the total number of full-time,
part-time, and temporary positions. The first ((report)) survey filed
under this subsection shall include employment, wage, and benefit
information for the twelve-month period immediately before first use of
a preferential tax rate under RCW 82.04.240(2), or claim of a tax
exemption or credit under RCW 82.04.426, 82.08.965, 82.12.965,
82.08.970, 82.12.970, 82.04.448, or 84.36.645. The ((report)) survey
is due by March 31st following any year in which a preferential tax
rate under RCW 82.04.240(2) is used, or tax exemption or credit under
RCW 82.04.426, 82.08.965, 82.12.965, 82.08.970, 82.12.970, 82.04.448,
or 84.36.645 is ((taken)) claimed. The department may extend the due
date for timely filing annual surveys under this section, as provided
in section 1 of this act. This information is not subject to the
confidentiality provisions of RCW 82.32.330 ((and may be disclosed to
the public upon request)).
(b) If a person fails to ((submit an)) file with the department a
complete annual ((report)) survey under (a) of this subsection by the
due date or any extension under section 1 of this act, the department
shall declare the amount of taxes exempted or credited for ((that)) the
previous calendar year to be immediately due and payable. Excise taxes
payable under this subsection are subject to interest, but not
penalties, at the rate provided for delinquent excise taxes, as
provided under this chapter. The department shall assess interest, but
not penalties, on the taxes against which the credit was claimed. The
interest shall be assessed at the rate provided for delinquent excise
taxes under this chapter, retroactively to the date of exemption or
credit, and shall accrue until the taxes for which the exemption or
credit was claimed are repaid. This information is not subject to the
confidentiality provisions of RCW 82.32.330 ((and may be disclosed to
the public upon request)).
(3) By November 1st of the year occurring five years after the
effective date of ((this act)) chapter 149, Laws of 2003, and November
1st of the year occurring eleven years after the effective date of
((this act)) chapter 149, Laws of 2003, the fiscal committees of the
house of representatives and the senate, in consultation with the
department, shall report to the legislature on the effectiveness of
chapter 149, Laws of 2003 in regard to keeping Washington competitive.
The report shall measure the effect of chapter 149, Laws of 2003 on job
retention, net jobs created for Washington residents, company growth,
diversification of the state's economy, cluster dynamics, and other
factors as the committees select. The reports shall include a
discussion of principles to apply in evaluating whether the legislature
should reenact any or all of the tax preferences in chapter 149, Laws
of 2003.
Sec. 17 RCW 82.32.545 and 2003 2nd sp.s. c 1 s 16 are each
amended to read as follows:
(1) The legislature finds that accountability and effectiveness are
important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources the
legislature needs information on how a tax incentive is used.
(2)(a) A person who reports taxes under RCW 82.04.260(13) or who
claims an exemption or credit under RCW 82.04.4461, 82.08.980,
82.12.980, 82.29A.137, 84.36.655, and 82.04.4463 shall ((make an
annual)) report information to the department by filing a complete
annual survey detailing employment, wages, and employer-provided health
and retirement benefits per job at the manufacturing site. The
((report)) survey shall not include names of employees. The ((report))
survey shall also detail employment by the total number of full-time,
part-time, and temporary positions. The first ((report)) survey filed
under this subsection shall include employment, wage, and benefit
information for the twelve-month period immediately before first use of
a preferential tax rate under RCW 82.04.260(13), or claim of a tax
exemption or credit under RCW 82.04.4461, 82.08.980, 82.12.980,
82.29A.137, 84.36.655, and 82.04.4463. The ((report)) survey is due by
March 31st following any year in which a preferential tax rate under
RCW 82.04.260(13) is used, or tax exemption or credit under RCW
82.04.4461, 82.08.980, 82.12.980, 82.29A.137, 84.36.655, and 82.04.4463
is ((taken)) claimed. The department may extend the due date for
timely filing annual surveys under this section, as provided in section
1 of this act. This information is not subject to the confidentiality
provisions of RCW 82.32.330 ((and may be disclosed to the public upon
request)).
(b) If a person fails to ((submit an)) file a complete annual
((report)) survey with the department under (a) of this subsection by
the due date of the ((report)) survey or any extension under section 1
of this act, the department shall declare the amount of taxes exempted
or credited, or reduced in the case of the preferential business and
occupation tax rate, for ((that)) the previous calendar year to be
immediately due and payable. Excise taxes payable under this
subsection are subject to interest, but not penalties, at the rate
provided for delinquent excise taxes, as provided under this chapter.
The department shall assess interest, but not penalties, retroactively
to the date the exemption, credit, or preferential tax rate under RCW
82.04.260(13) was used. The interest shall be assessed at the rate
provided for delinquent excise taxes under this chapter, and shall
accrue until the taxes for which the exemption, credit, or preferential
tax rate was used are repaid. This information is not subject to the
confidentiality provisions of RCW 82.32.330 ((and may be disclosed to
the public upon request)).
(3) By November 1, 2010, and by November 1, 2023, the fiscal
committees of the house of representatives and the senate, in
consultation with the department, shall report to the legislature on
the effectiveness of chapter 1, Laws of 2003 2nd sp. sess. in regard to
keeping Washington competitive. The report shall measure the effect of
chapter 1, Laws of 2003 2nd sp. sess. on job retention, net jobs
created for Washington residents, company growth, diversification of
the state's economy, cluster dynamics, and other factors as the
committees select. The reports shall include a discussion of
principles to apply in evaluating whether the legislature should
reenact any or all of the tax preferences in chapter 1, Laws of 2003
2nd sp. sess.
Sec. 18 RCW 82.32.560 and 2004 c 240 s 2 are each amended to read
as follows:
(1) For the purposes of this section, "electrolytic processing
business tax exemption" means the exemption ((and preferential tax
rate)) under RCW 82.16.0421.
(2) The legislature finds that accountability and effectiveness are
important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources, the
legislature needs information to evaluate whether the stated goals of
legislation were achieved.
(3) The goals of the electrolytic processing business tax exemption
are:
(a) To retain family wage jobs by enabling electrolytic processing
businesses to maintain production of chlor-alkali and sodium chlorate
at a level that will preserve at least seventy-five percent of the jobs
that were on the payroll effective January 1, 2004; and
(b) To allow the electrolytic processing industries to continue
production in this state through 2011 so that the industries will be
positioned to preserve and create new jobs when the anticipated
reduction of energy costs occur.
(4)(a) A person who receives the benefit of an electrolytic
processing business tax exemption shall ((make an annual)) report
information to the department by filing a complete annual survey
detailing employment, wages, and employer-provided health and
retirement benefits per job at the manufacturing site. The ((report))
survey is due by March 31st following any year in which a tax exemption
is claimed ((or used)). The department may extend the due date for
timely filing annual surveys under this section, as provided in section
1 of this act. The ((report)) survey shall not include names of
employees. The ((report)) survey shall detail employment by the total
number of full-time, part-time, and temporary positions. The
((report)) survey shall indicate the quantity of product produced at
the plant during the time period covered by the ((report)) survey. The
first ((report)) survey filed under this subsection shall include
employment, wage, and benefit information for the twelve-month period
immediately before first ((use)) claim of a tax exemption. Employment
((reports)) surveys shall include data for actual levels of employment
and identification of the number of jobs affected by any employment
reductions that have been publicly announced at the time of the
((report)) survey. Information in a ((report)) survey under this
section is not subject to the confidentiality provisions of RCW
82.32.330 and may be disclosed to the public upon request.
(b) If a person fails to submit ((an)) a complete annual ((report))
survey under (a) of this subsection by the due date of the ((report))
survey or any extension under section 1 of this act, the department
shall declare the amount of taxes exempted for ((that)) the previous
calendar year to be immediately due and payable. Public utility taxes
payable under this subsection are subject to interest, but not
penalties, at the rate provided for delinquent excise taxes, as
provided under this chapter. The department shall assess interest, but
not penalties, on the exemption under this subsection. The interest
shall be assessed at the rate provided for delinquent excise taxes
under this chapter, retroactively to the date the exemption was
claimed, and shall accrue until the taxes for which the exemption was
claimed are repaid. This information is not subject to the
confidentiality provisions of RCW 82.32.330 ((and may be disclosed to
the public upon request)).
(5) By December 1, 2007, and by December 1, 2010, the fiscal
committees of the house of representatives and the senate, in
consultation with the department, shall report to the legislature on
the effectiveness of the tax incentive under RCW 82.16.0421. The
report shall measure the effect of the incentive on job retention for
Washington residents, and other factors as the committees select. The
report shall also discuss expected trends or changes to electricity
prices as they affect the industries that benefit from the incentives.
Sec. 19 RCW 82.32.570 and 2004 c 24 s 14 are each amended to read
as follows:
(1) For the purposes of this section, "smelter tax incentive" means
the preferential tax rate under RCW 82.04.2909, or an exemption or
credit under RCW 82.04.4481, 82.08.805, 82.12.805, or 82.12.022(5).
(2) The legislature finds that accountability and effectiveness are
important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources the
legislature needs information to evaluate whether the stated goals of
legislation were achieved.
(3) The goals of the smelter tax incentives are to retain family-wage jobs in rural areas by:
(a) Enabling the aluminum industry to maintain production of
aluminum at a level that will preserve at least 75 percent of the jobs
that were on the payroll effective January 1, 2004, as adjusted for
employment reductions publicly announced before November 30, 2003; and
(b) Allowing the aluminum industry to continue producing aluminum
in this state through 2006 so that the industry will be positioned to
preserve and create new jobs when the anticipated reduction of energy
costs occurs.
(4)(a) An aluminum smelter receiving the benefit of a smelter tax
incentive shall ((make an annual)) report information to the department
by filing a complete annual survey detailing employment, wages, and
employer-provided health and retirement benefits per job at the
manufacturing site. The ((report)) survey is due by March 31st
following any year in which a tax incentive is claimed or used. The
department may extend the due date for timely filing annual surveys
under this section, as provided in section 1 of this act. The
((report)) survey shall not include names of employees. The ((report))
survey shall detail employment by the total number of full-time, part-time, and temporary positions. The ((report)) survey shall indicate
the quantity of aluminum smelted at the plant during the time period
covered by the ((report)) survey. The first ((report)) survey filed
under this subsection shall include employment, wage, and benefit
information for the twelve-month period immediately before first use or
claim of a tax incentive. Employment ((reports)) surveys shall include
data for actual levels of employment and identification of the number
of jobs affected by any employment reductions that have been publicly
announced at the time of the ((report)) survey. Information in a
((report)) survey under this section is not subject to the
confidentiality provisions of RCW 82.32.330 and may be disclosed to the
public upon request.
(b) If a person fails to submit ((an)) a complete annual ((report))
survey under (a) of this subsection by the due date of the ((report))
survey or any extension under section 1 of this act, the department
shall declare the amount of taxes exempted or credited, or reduced in
the case of the preferential ((business and occupation)) tax rate under
RCW 82.04.2909, for ((that)) the previous calendar year to be
immediately due and payable. Excise taxes payable under this
subsection are subject to interest, but not penalties, at the rate
provided for delinquent excise taxes, as provided under this chapter.
The department shall assess interest, but not penalties, retroactively
to the date the exemption, credit, or preferential tax rate under RCW
82.04.2909 was used. The interest shall be assessed at the rate
provided for delinquent excise taxes under this chapter, and shall
accrue until the taxes for which the exemption, credit, or preferential
tax rate was used are repaid. This information is not subject to the
confidentiality provisions of RCW 82.32.330 ((and may be disclosed to
the public upon request)).
(5) By December 1, 2005, and by December 1, 2006, the fiscal
committees of the house of representatives and the senate, in
consultation with the department, shall report to the legislature on
the effectiveness of the smelter tax incentives and, by December 1,
2010, on the effectiveness of the incentives under RCW 82.04.4482 and
82.16.0498. The reports shall measure the effect of the tax incentives
on job retention for Washington residents and any other factors the
committees may select.
NEW SECTION. Sec. 20 Section 1 of this act applies retroactively
to annual surveys required under RCW 82.04.4483, 82.04.4484, 82.32.535,
82.32.545, 82.32.570, 82.32.560, 82.60.070, 82.62.050, and 82.63.020,
and due after December 31, 2004.
NEW SECTION. Sec. 21 Section 2 of this act takes effect January
1, 2006.
NEW SECTION. Sec. 22 Sections 1 and 3 through 19 of this act are
necessary for the immediate preservation of the public peace, health,
or safety, or support of the state government and its existing public
institutions, and take effect immediately.
NEW SECTION. Sec. 23 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.