BILL REQ. #:  H-1731.2 

Read first time 02/17/2005.   Referred to Committee on Economic Development, Agriculture & Trade.

     AN ACT Relating to livestock nutrient management equipment and facilities; amending RCW 82.08.890; and amending 2001 2nd sp.s. c 18 s 1 (uncodified).

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

Sec. 1   RCW 82.08.890 and 2001 2nd sp.s. c 18 s 2 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales to eligible persons of services rendered in respect to operating, repairing, cleaning, altering, or improving of ((dairy)) livestock nutrient management equipment and facilities, or to sales of tangible personal property that becomes an ingredient or component of the equipment and facilities. The equipment and facilities must be used exclusively for activities necessary to maintain a ((dairy)) nutrient management plan ((as)) required under chapter 90.64 RCW. This exemption applies to sales made after the ((dairy)) nutrient management plan is certified under chapter 90.64 RCW.
     (2)(a) The department of revenue must provide an exemption certificate to an eligible person upon application by that person. The department of agriculture must provide a list of eligible persons to the department of revenue. The application must be in a form and manner prescribed by the department and must contain information regarding the location of the ((dairy)) livestock operation and other information the department may require.
     (b) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
     (3) The definitions in this subsection apply to this section and RCW 82.12.890 unless the context clearly requires otherwise:
     (a) "((Dairy)) Livestock nutrient management equipment and facilities" means machinery, equipment, and structures used in the handling and treatment of ((dairy)) livestock manure, such as aerators, agitators, alley scrapers, augers, dams, gutter cleaners, loaders, lagoons, pipes, pumps, separators, and tanks. The term also includes tangible personal property that becomes an ingredient or component of the equipment and facilities, including repair and replacement parts.
     (b) "Eligible person" means a person (i) licensed to produce milk under chapter 15.36 RCW or (ii) holding a livestock national pollutant discharge elimination system permit, who has a certified ((dairy)) livestock nutrient management plan by ((December 31, 2003, as required by chapter 90.64 RCW)) April 14, 2006.

Sec. 2   2001 2nd sp.s. c 18 s 1 (uncodified) is amended to read as follows:
     It is the intent of the legislature to provide tax exemptions to assist ((dairy)) livestock farmers to comply with ((the dairy nutrient management act,)) chapter 90.64 RCW, and to assist public or private entities to establish and operate anaerobic digesters to treat ((dairy)) livestock nutrients on a regional or on-farm basis.