BILL REQ. #:  H-2180.2 

READ FIRST TIME 03/07/05.   

     AN ACT Relating to the excise taxation of trail maintenance and construction services; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that the state is home to an extensive trail network that accommodates a physically active and demographically diverse public. An important community resource, this network of trails provides pathways through which people can experience our unique wilderness lands. The legislature further finds that nonprofit organizations play a vital role in building and maintaining Washington's hiking trail network. The legislature declares that it is in the public interest to encourage these nonprofit organizations through the provision of tax relief. The tax relief provided by this act reduces the tax burden on nonprofit organizations that build and maintain trails and increases the impact and effectiveness of trail building and maintenance activities provided by these organizations.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.04 RCW to read as follows:
     (1) This chapter does not apply to amounts received by nonprofit organizations, as defined in subsection (2) of this section, from the United States or any of its instrumentalities, the state of Washington or any of its municipal corporations or political subdivisions, or from another nonprofit organization for the constructing or reconstructing of trails or trail maintenance activities.
     (2) For purposes of this section, the following definitions apply:
     (a) "Nonprofit organization" means an organization exempt from tax under section 501(c)(3) or (4) of the federal internal revenue code (26 U.S.C. Sec. 501(c)(3) or (4)).
     (b) "Trail maintenance activities" include removing plants or tree limbs encroaching on the trailway; restoring tread, including the removal of slough from a trail, returning a trail to its proper width, removing organic matter, removing protruding roots and rocks, restoring the outslope of a trail, and removing berms from the outside edge of a trail; constructing, repairing, or improving raised trail structures such as turnpikes or puncheon; clearing ditches, drain-dips, and culverts, constructing, installing, repairing, and improving drainage structures such as culverts, drain-dips, waterbars, and check-dams; clearing puncheon, turnpikes, curb logs, and bridges of dirt and plants; blocking off social trails; rerouting trails; postexcavation cleanup; naturalizing abandoned trails, removing trash near trailheads; and recruiting volunteers, educating and training the volunteers in techniques of trail maintenance, and supervising and monitoring the volunteers.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to the sale of or charge made for: (a) Labor and services rendered in respect to the construction or reconstruction of trails or to trail maintenance activities provided by a nonprofit organization; or (b) tangible personal property incorporated as ingredients or components of trails during the construction or reconstruction of trails or performance of trail maintenance services, if the sales or charges are made by or to a nonprofit organization.
     (2) For the purposes of this section, "trail maintenance activities" and "nonprofit organization" have the same meaning as provided in section 2 of this act.

NEW SECTION.  Sec. 4   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 of: (a) Labor and services rendered in respect to the construction or reconstruction of trails or to trail maintenance activities if such labor and services are provided by a nonprofit organization; or (b) tangible personal property incorporated as ingredients or components of trails during the construction or reconstruction of trails or performance of trail maintenance services by a nonprofit organization.
     (2) For the purposes of this section, "trail maintenance activities" and "nonprofit organization" have the same meaning as provided in section 2 of this act.

NEW SECTION.  Sec. 5   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.