BILL REQ. #:  H-1673.2 

Read first time 02/18/2005.   Referred to Committee on Finance.

     AN ACT Relating to a sales and use tax deferral for the construction of a historic automobile museum; and adding a new section to chapter 82.32 RCW.

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) The governing board of a nonprofit organization, corporation, or association may apply for deferral of taxes on the construction of buildings, site preparation, and the acquisition of related machinery and equipment for a historic automobile museum. Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application shall contain information regarding the location of the historic automobile museum, estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.
     (2) The department of revenue 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 related to the construction of the historic automobile museum.
     (3) The nonprofit organization, corporation, or association shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the historic automobile museum is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.
     (4) The department of revenue may authorize an accelerated repayment schedule upon request of the nonprofit organization, corporation, or association.
     (5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the nonprofit organization, corporation, or association.
     (6) The repayment of deferred taxes and interest shall be deposited into the general fund.
     (7) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. This chapter applies to the administration of this section.