BILL REQ. #:  H-4173.1 

Read first time 01/17/2006.   Referred to Committee on Finance.

     AN ACT Relating to diesel fuel sales and use tax exemptions for loggers and timber growers; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; 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 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of diesel fuel to a logging operation for nonhighway use. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. Fuel used for space or water heating for human habitation is not exempt under this section.
     (2) The definitions in this subsection apply to this section.
     (a) "Diesel fuel" is defined as provided in 26 U.S.C. 4083, as amended or renumbered as of January 1, 2006.
     (b) "Logging operation" means an establishment primarily engaged in one or more of the following activities: (i) Cutting timber; (ii) transporting timber; (iii) producing wood chips in the field; or (iv) operating timber tracts for the purpose of selling standing timber.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the nonhighway use of diesel fuel by a logging operation. Fuel used for space or water heating for human habitation is not exempt under this section.
     (2) The definitions in section 1 of this act apply to this section.

NEW SECTION.  Sec. 3   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.