BILL REQ. #: S-3732.3
| State of Washington | 59th Legislature | 2006 Regular Session |
Read first time 01/09/2006. Referred to Committee on Ways & Means.
AN ACT Relating to simplifying tax application and administration; amending RCW 82.04.190, 82.04.330, 82.04.4266, 82.08.02745, 82.08.0311, 82.08.820, 82.08.820, 82.08.820, 82.12.820, 82.16.050, 88.40.011, 88.46.010, 90.56.010, 84.36.635, 82.04.4334, 82.08.955, 82.08.02567, 82.04.294, 82.04.180, 82.32.140, 82.04.2908, 82.04.4264, 82.04.530, 82.14B.020, 82.32.520, 82.32.555, 34.05.030, 82.14.055, 82.14.030, 82.14.045, 82.14.048, 82.14.0485, 82.14.049, 82.14.0494, 82.14.010, 82.14.310, 82.14.320, 82.14.330, 82.14.340, 82.14.350, 82.14.360, 82.14.370, 82.14.390, 82.14.400, 82.14.420, 82.14.430, 82.14.440, 82.14.450, 82.14.460, 82.44.160, 43.62.010, 70.05.125, 53.08.090, 43.160.220, 82.08.0266, 82.08.02665, 82.08.0283, 82.08.945, 82.12.0284, 82.08.02569, 82.08.02917, 82.08.832, 82.08.880, 82.08.890, 82.08.900, 82.08.910, 82.08.920, 82.24.520, 82.24.530, 43.06.455, 82.04.140, 82.04.280, 82.04.280, 82.04.418, 82.04.4281, 82.04.4286, 82.04.440, 82.04.440, 82.04.4461, 82.04.4462, 82.04.4328, 82.04.460, 82.19.010, 82.19.050, 82.32.033, 82.32.105, 82.32.550, 82.12.045, 84.33.140, 84.33.140, 84.34.108, 84.36.815, 84.36.830, 84.39.020, 84.52.010, 84.52.020, 84.52.054, 84.52.070, 82.62.020, 82.32.590, 82.32.600, 82.04.4452, 82.32.560, 82.32.570, 82.32.610, 82.32.620, 82.32.545, and 82.46.010; amending 2004 c 153 s 502 (uncodified); reenacting and amending RCW 82.04.050, 82.04.213, 82.04.260, 82.29A.135, 82.14B.030, 43.84.092, 82.04.250, 82.29A.130, and 82.32.330; adding a new section to chapter 82.14 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 82.04 RCW; adding a new chapter to Title 82 RCW; creating new sections; repealing RCW 82.04.035, 82.04.2403, 82.04.331, 82.04.332, 82.04.333, 82.04.335, 82.04.337, 82.04.338, 82.04.410, 82.04.4287, 84.36.640, 82.04.4335, 82.08.960, 82.14.032, 82.14.046, 82.14.070, 82.14.200, 82.14.210, 82.14.220, 82.14.380, 35.02.135, 82.44.155, 82.14.034, 82.14.212, 82.12.02525, 82.12.0253, 82.12.02567, 82.12.02568, 82.12.02569, 82.12.0257, 82.12.0258, 82.12.0259, 82.12.0261, 82.12.0262, 82.12.0267, 82.12.0268, 82.12.0269, 82.12.0271, 82.12.0273, 82.12.0274, 82.12.02745, 82.12.02747, 82.12.02748, 82.12.02749, 82.12.0275, 82.12.0276, 82.12.0277, 82.12.0279, 82.12.0283, 82.12.02915, 82.12.02917, 82.12.0293, 82.12.0294, 82.12.0296, 82.12.0297, 82.12.0298, 82.12.031, 82.12.0311, 82.12.0316, 82.12.032, 82.12.033, 82.12.034, 82.12.0345, 82.12.0347, 82.12.803, 82.12.804, 82.12.806, 82.12.808, 82.12.809, 82.12.813, 82.12.832, 82.12.841, 82.12.880, 82.12.890, 82.12.900, 82.12.910, 82.12.920, 82.12.925, 82.12.935, 82.12.940, 82.12.945, 82.12.950, 82.12.955, 82.12.960, 82.12.975, 82.12.985, 82.04.055, 82.04.150, 82.04.4261, 82.04.4262, 82.04.4263, 82.29A.150, 84.55.012, 84.55.0121, 82.60.010, 82.60.020, 82.60.030, 82.60.040, 82.60.049, 82.60.050, 82.60.060, 82.60.065, 82.60.070, 82.60.080, 82.60.090, 82.60.100, 82.60.110, 82.60.900, 82.60.901, 82.63.005, 82.63.010, 82.63.020, 82.63.030, 82.63.045, 82.63.060, 82.63.070, 82.63.900, 82.74.010, 82.74.020, 82.74.030, 82.74.040, 82.74.050, 82.74.060, and 82.74.070; providing effective dates; providing a contingent effective date; providing expiration dates; providing a contingent expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 101 RCW 82.04.050 and 2005 c 515 s 2 and 2005 c 514 s 101
are each reenacted and amended to read as follows:
(1) "Sale at retail" or "retail sale" means every sale of tangible
personal property (including articles produced, fabricated, or
imprinted) to all persons irrespective of the nature of their business
and including, among others, without limiting the scope hereof, persons
who install, repair, clean, alter, improve, construct, or decorate real
or personal property of or for consumers other than a sale to a person
who presents a resale certificate under RCW 82.04.470 and who:
(a) Purchases for the purpose of resale as tangible personal
property in the regular course of business without intervening use by
such person, but a purchase for the purpose of resale by a regional
transit authority under RCW 81.112.300 is not a sale for resale; or
(b) Installs, repairs, cleans, alters, imprints, improves,
constructs, or decorates real or personal property of or for consumers,
if such tangible personal property becomes an ingredient or component
of such real or personal property without intervening use by such
person; or
(c) Purchases for the purpose of consuming the property purchased
in producing for sale a new article of tangible personal property or
substance, of which such property becomes an ingredient or component or
is a chemical used in processing, when the primary purpose of such
chemical is to create a chemical reaction directly through contact with
an ingredient of a new article being produced for sale; or
(d) Purchases for the purpose of consuming the property purchased
in producing ferrosilicon which is subsequently used in producing
magnesium for sale, if the primary purpose of such property is to
create a chemical reaction directly through contact with an ingredient
of ferrosilicon; (([or])) or
(e) Purchases for the purpose of providing the property to
consumers as part of competitive telephone service, as defined in RCW
82.04.065. The term shall include every sale of tangible personal
property which is used or consumed or to be used or consumed in the
performance of any activity classified as a "sale at retail" or "retail
sale" even though such property is resold or utilized as provided in
(a), (b), (c), (d), or (e) of this subsection following such use. The
term also means every sale of tangible personal property to persons
engaged in any business which is taxable under RCW 82.04.280 (2) and
(7), 82.04.290, and 82.04.2908; or
(f) Purchases for the purpose of satisfying the person's
obligations under an extended warranty as defined in subsection (7) of
this section, if such tangible personal property replaces or becomes an
ingredient or component of property covered by the extended warranty
without intervening use by such person.
(2) The term "sale at retail" or "retail sale" shall include the
sale of or charge made for tangible personal property consumed and/or
for labor and services rendered in respect to the following:
(a) The installing, repairing, cleaning, altering, imprinting, or
improving of tangible personal property of or for consumers, including
charges made for the mere use of facilities in respect thereto, but
excluding charges made for the use of self-service laundry facilities,
and also excluding sales of laundry service to nonprofit health care
facilities, and excluding services rendered in respect to live animals,
birds and insects;
(b) The constructing, repairing, decorating, or improving of new or
existing buildings or other structures under, upon, or above real
property of or for consumers, including the installing or attaching of
any article of tangible personal property therein or thereto, whether
or not such personal property becomes a part of the realty by virtue of
installation, and shall also include the sale of services or charges
made for the clearing of land and the moving of earth excepting the
mere leveling of land used in commercial farming or agriculture;
(c) The ((charge for labor and services rendered in respect to))
constructing, repairing, or improving any structure upon, above, or
under any real property owned by an owner who conveys the property by
title, possession, or any other means to the person performing such
construction, repair, or improvement for the purpose of performing such
construction, repair, or improvement and the property is then
reconveyed by title, possession, or any other means to the original
owner;
(d) The ((sale of or charge made for labor and services rendered in
respect to the)) cleaning, fumigating, razing or moving of existing
buildings or structures, but shall not include the charge made for
janitorial services; and for purposes of this section the term
"janitorial services" shall mean those cleaning and caretaking services
ordinarily performed by commercial janitor service businesses
including, but not limited to, wall and window washing, floor cleaning
and waxing, and the cleaning in place of rugs, drapes and upholstery.
The term "janitorial services" does not include painting, papering,
repairing, furnace or septic tank cleaning, snow removal or
sandblasting;
(e) ((The sale of or charge made for labor and services rendered in
respect to)) Automobile towing and similar automotive transportation
services, but not in respect to those required to report and pay taxes
under chapter 82.16 RCW;
(f) ((The sale of and charge made for)) The furnishing of lodging
and all other services by a hotel, rooming house, tourist court, motel,
trailer camp, and the granting of any similar license to use real
property, as distinguished from the renting or leasing of real
property, and it shall be presumed that the occupancy of real property
for a continuous period of one month or more constitutes a rental or
lease of real property and not a mere license to use or enjoy the same.
For the purposes of this subsection, it shall be presumed that the sale
of and charge made for the furnishing of lodging for a continuous
period of one month or more to a person is a rental or lease of real
property and not a mere license to enjoy the same;
(g) ((The sale of or charge made for tangible personal property,
labor and services to)) Persons taxable under (a), (b), (c), (d), (e),
and (f) of this subsection when such sales or charges are for property,
labor and services which are used or consumed in whole or in part by
such persons in the performance of any activity defined as a "sale at
retail" or "retail sale" even though such property, labor and services
may be resold after such use or consumption. Nothing contained in this
subsection shall be construed to modify subsection (1) of this section
and nothing contained in subsection (1) of this section shall be
construed to modify this subsection.
(3) The term "sale at retail" or "retail sale" shall include the
sale of or charge made for personal, business, or professional services
including amounts designated as interest, rents, fees, admission, and
other service emoluments however designated, received by persons
engaging in the following business activities:
(a) Amusement and recreation services including but not limited to
golf, pool, billiards, skating, bowling, ski lifts and tows, day trips
for sightseeing purposes, and others, when provided to consumers;
(b) Abstract, title insurance, and escrow services;
(c) Credit bureau services;
(d) Automobile parking and storage garage services;
(e) Landscape maintenance and horticultural services but excluding
(i) horticultural services provided to farmers and (ii) pruning,
trimming, repairing, removing, and clearing of trees and brush near
electric transmission or distribution lines or equipment, if performed
by or at the direction of an electric utility;
(f) Service charges associated with tickets to professional
sporting events; and
(g) The following personal services: Physical fitness services,
tanning salon services, tattoo parlor services, steam bath services,
turkish bath services, escort services, and dating services.
(4)(a) The term shall also include:
(i) The renting or leasing of tangible personal property to
consumers; and
(ii) Providing tangible personal property along with an operator
for a fixed or indeterminate period of time. A consideration of this
is that the operator is necessary for the tangible personal property to
perform as designed. For the purpose of this subsection (4)(a)(ii), an
operator must do more than maintain, inspect, or set up the tangible
personal property.
(b) The term shall not include the renting or leasing of tangible
personal property where the lease or rental is for the purpose of
sublease or subrent.
(5) The term shall also include the providing of telephone service,
as defined in RCW 82.04.065, to consumers.
(6) The term shall also include the sale of prewritten computer
software other than a sale to a person who presents a resale
certificate under RCW 82.04.470, regardless of the method of delivery
to the end user, but shall not include custom software or the
customization of prewritten computer software.
(7) The term shall also include the sale of or charge made for an
extended warranty to a consumer. For purposes of this subsection,
"extended warranty" means an agreement for a specified duration to
perform the replacement or repair of tangible personal property at no
additional charge or a reduced charge for tangible personal property,
labor, or both, or to provide indemnification for the replacement or
repair of tangible personal property, based on the occurrence of
specified events. The term "extended warranty" does not include an
agreement, otherwise meeting the definition of extended warranty in
this subsection, if no separate charge is made for the agreement and
the value of the agreement is included in the sales price of the
tangible personal property covered by the agreement. For purposes of
this subsection, "sales price" has the same meaning as in RCW
82.08.010.
(8) The term shall not include the sale of or charge made for labor
and services rendered in respect to the building, repairing, or
improving of any street, place, road, highway, easement, right of way,
mass public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state or by the United States and which is
used or to be used primarily for foot or vehicular traffic including
mass transportation vehicles of any kind.
(9) The term shall also not include sales of chemical sprays or
washes to persons for the purpose of postharvest treatment of fruit for
the prevention of scald, fungus, mold, or decay, nor shall it include
sales of feed, seed, seedlings, fertilizer, agents for enhanced
pollination including insects such as bees, and spray materials to:
(a) Persons who participate in the federal conservation reserve
program, the environmental quality incentives program, the wetlands
reserve program, and the wildlife habitat incentives program, or their
successors administered by the United States department of agriculture;
(b) farmers for the purpose of producing for sale any agricultural
product; and (c) farmers acting under cooperative habitat development
or access contracts with an organization exempt from federal income tax
under 26 U.S.C. Sec. 501(c)(3) or the Washington state department of
fish and wildlife to produce or improve wildlife habitat on land that
the farmer owns or leases.
(10) The term shall not include the sale of or charge made for
labor and services rendered in respect to the constructing, repairing,
decorating, or improving of new or existing buildings or other
structures under, upon, or above real property of or for the United
States, any instrumentality thereof, or a county or city housing
authority created pursuant to chapter 35.82 RCW, including the
installing, or attaching of any article of tangible personal property
therein or thereto, whether or not such personal property becomes a
part of the realty by virtue of installation. Nor shall the term
include the sale of services or charges made for the clearing of land
and the moving of earth of or for the United States, any
instrumentality thereof, or a county or city housing authority. Nor
shall the term include the sale of services or charges made for
cleaning up for the United States, or its instrumentalities,
radioactive waste and other byproducts of weapons production and
nuclear research and development.
(11) The term shall not include the sale of or charge made for
labor, services, or tangible personal property pursuant to agreements
providing maintenance services for bus, rail, or rail fixed guideway
equipment when a regional transit authority is the recipient of the
labor, services, or tangible personal property, and a transit agency,
as defined in RCW 81.104.015, performs the labor or services.
Sec. 102 RCW 82.04.190 and 2005 c 514 s 103 are each amended to
read as follows:
(1) "Consumer" means the following:
(((1))) (a) Any person who purchases, acquires, owns, holds, or
uses any article of tangible personal property irrespective of the
nature of the person's business and including, among others, without
limiting the scope hereof, persons who install, repair, clean, alter,
improve, construct, or decorate real or personal property of or for
consumers other than for the purpose (((a))) (i) of resale as tangible
personal property in the regular course of business or (((b))) (ii) of
incorporating such property as an ingredient or component of real or
personal property when installing, repairing, cleaning, altering,
imprinting, improving, constructing, or decorating such real or
personal property of or for consumers or (((c))) (iii) of consuming
such property in producing for sale a new article of tangible personal
property or a new substance, of which such property becomes an
ingredient or component or as a chemical used in processing, when the
primary purpose of such chemical is to create a chemical reaction
directly through contact with an ingredient of a new article being
produced for sale or (((d))) (iv) of consuming the property purchased
in producing ferrosilicon which is subsequently used in producing
magnesium for sale, if the primary purpose of such property is to
create a chemical reaction directly through contact with an ingredient
of ferrosilicon or (((e))) (v) of satisfying the person's obligations
under an extended warranty as defined in RCW 82.04.050(7), if such
tangible personal property replaces or becomes an ingredient or
component of property covered by the extended warranty without
intervening use by such person;
(((2)(a))) (b)(i) Any person engaged in any business activity
taxable under RCW 82.04.290 or 82.04.2908; (((b))) (ii) any person who
purchases, acquires, or uses any telephone service as defined in RCW
82.04.065, other than for resale in the regular course of business;
(((c))) (iii) any person who purchases, acquires, or uses any service
defined in RCW 82.04.050(2)(a), other than for resale in the regular
course of business or for the purpose of satisfying the person's
obligations under an extended warranty as defined in RCW 82.04.050(7);
(((d))) (iv) any person who purchases, acquires, or uses any amusement
and recreation service defined in RCW 82.04.050(3)(a), other than for
resale in the regular course of business; (((e))) (v) any person who is
an end user of software; and (((f))) (vi) any person who purchases or
acquires an extended warranty as defined in RCW 82.04.050(7) other than
for resale in the regular course of business;
(((3))) (c) Any person engaged in the business of contracting for
the building, repairing or improving of any street, place, road,
highway, easement, right of way, mass public transportation terminal or
parking facility, bridge, tunnel, or trestle which is owned by a
municipal corporation or political subdivision of the state of
Washington or by the United States and which is used or to be used
primarily for foot or vehicular traffic including mass transportation
vehicles of any kind as defined in RCW 82.04.280, in respect to
tangible personal property when such person incorporates such property
as an ingredient or component of such publicly owned street, place,
road, highway, easement, right of way, mass public transportation
terminal or parking facility, bridge, tunnel, or trestle by installing,
placing or spreading the property in or upon the right of way of such
street, place, road, highway, easement, bridge, tunnel, or trestle or
in or upon the site of such mass public transportation terminal or
parking facility;
(((4))) (d) Any person who is an owner, lessee or has the right of
possession to or an easement in real property which is being
constructed, repaired, decorated, improved, or otherwise altered by a
person engaged in business, excluding only (((a))) (i) municipal
corporations or political subdivisions of the state in respect to labor
and services rendered to their real property which is used or held for
public road purposes, and (((b))) (ii) the United States,
instrumentalities thereof, and county and city housing authorities
created pursuant to chapter 35.82 RCW in respect to labor and services
rendered to their real property. Nothing contained in this or any
other subsection of this definition shall be construed to modify any
other definition of "consumer";
(((5))) (e) Any person who is an owner, lessee, or has the right of
possession to personal property which is being constructed, repaired,
improved, cleaned, imprinted, or otherwise altered by a person engaged
in business;
(((6))) (f) Any person engaged in the business of constructing,
repairing, decorating, or improving new or existing buildings or other
structures under, upon, or above real property of or for the United
States, any instrumentality thereof, or a county or city housing
authority created pursuant to chapter 35.82 RCW, including the
installing or attaching of any article of tangible personal property
therein or thereto, whether or not such personal property becomes a
part of the realty by virtue of installation; also, any person engaged
in the business of clearing land and moving earth of or for the United
States, any instrumentality thereof, or a county or city housing
authority created pursuant to chapter 35.82 RCW. Any such person shall
be a consumer within the meaning of this subsection in respect to
tangible personal property incorporated into, installed in, or attached
to such building or other structure by such person, except that
consumer does not include any person engaged in the business of
constructing, repairing, decorating, or improving new or existing
buildings or other structures under, upon, or above real property of or
for the United States, or any instrumentality thereof, if the
investment project would qualify for sales and use tax deferral under
chapter 82.63 RCW if undertaken by a private entity;
(((7))) (g) Any person who is a lessor of machinery and equipment,
the rental of which is exempt from the tax imposed by RCW 82.08.020
under RCW 82.08.02565, with respect to the sale of or charge made for
tangible personal property consumed in respect to repairing the
machinery and equipment, if the tangible personal property has a useful
life of less than one year. Nothing contained in this or any other
subsection of this section shall be construed to modify any other
definition of "consumer";
(((8))) (h) Any person engaged in the business of cleaning up for
the United States, or its instrumentalities, radioactive waste and
other byproducts of weapons production and nuclear research and
development; and
(((9))) (i) Any person who is an owner, lessee, or has the right of
possession of tangible personal property that, under the terms of an
extended warranty as defined in RCW 82.04.050(7), has been repaired or
is replacement property, but only with respect to the sale of or charge
made for the repairing of the tangible personal property or the
replacement property.
(2) The term "consumer" does not include any person described in
RCW 82.04.050(9) who purchases, acquires, owns, holds, or uses chemical
sprays or washes, feed, seed, seedlings, fertilizer, agents for
enhanced pollination including insects such as bees, and spray
materials, for the purposes described in RCW 82.04.050(9).
Sec. 103 RCW 82.04.213 and 2001 c 118 s 2 and 2001 c 97 s 3 are
each reenacted and amended to read as follows:
(1) "Agricultural product" means any product of plant cultivation
or animal husbandry including, but not limited to: A product of
horticulture, grain cultivation, vermiculture, viticulture, or
aquaculture as defined in RCW 15.85.020; plantation Christmas trees;
short-rotation hardwoods as defined in RCW 84.33.035; turf; or any
animal including but not limited to an animal that is a private sector
cultured aquatic product as defined in RCW 15.85.020, or a bird, or
insect, or the substances obtained from such an animal. "Agricultural
product" does not include animals defined as pet animals under RCW
16.70.020.
(2) "Farmer" means any person engaged in the business of growing,
raising, or producing, upon the person's own lands or upon the lands in
which the person has a present right of possession, any agricultural
product to be sold. "Farmer" does not include a person growing,
raising, or producing such products for the person's own consumption;
a person selling any animal or substance obtained therefrom in
connection with the person's business of operating a stockyard or a
slaughter or packing house; or a person in respect to the business of
taking, cultivating, or raising timber.
(3) "Plantation Christmas trees" means Christmas trees which are
exempt from the timber excise tax under RCW 84.33.170.
Sec. 104 RCW 82.04.330 and 2001 c 118 s 3 are each amended to
read as follows:
(1) This chapter shall not apply to:
(a) Any farmer that sells any agricultural product at wholesale or
to any farmer who grows, raises, or produces agricultural products
owned by others, such as custom feed operations. This exemption shall
not apply to any person selling such products at retail or to any
person selling manufactured substances or articles((.));
This chapter shall also not apply to any persons
(b) Any person who participates in the federal conservation reserve
program or its successor administered by the United States department
of agriculture with respect to land enrolled in that program;
(c) Amounts received by persons engaged in the production and sale
of hatching eggs or poultry for use in the production for sale of
poultry or poultry products;
(d) Amounts received from buying wheat, oats, dry peas, dry beans,
lentils, triticale, canola, corn, rye, and barley, but not including
any manufactured products thereof, and selling the same at wholesale;
(e) Amounts received by any person as compensation for the
receiving, washing, sorting, and packing of fresh perishable
horticultural products and the material and supplies used therein when
performed for the person exempted in (a) or (b) of this subsection (1),
either as agent or as independent contractor;
(f) The gross receipts or value of products proceeding or accruing
from timber harvested by a person who is a small harvester as defined
in RCW 84.33.035 and whose value of products, gross proceeds of sales,
or gross income of the business is less than one hundred thousand
dollars per tax year;
(g) Amounts received by hop growers or dealers for hops which are
shipped outside the state of Washington for first use, but only if
those hops have been processed into extract, pellets, or powder in this
state. This exemption applies regardless of who owns the hops during
the processing and who arranges for shipment of the processed hops to
a location outside this state.
This subsection (1)(g) does not exempt a processor or warehouser
from taxation under this chapter on amounts charged for processing or
warehousing;
(h) Amounts received by a person engaging within this state in the
business of: (i) Making wholesale sales to farmers of seed conditioned
for use in planting and not packaged for retail sale; or (ii)
conditioning seed for planting owned by others.
For the purposes of this subsection (1)(h), "seed" means seed
potatoes and all other "agricultural seed" as defined in RCW 15.49.011.
"Seed" does not include "flower seeds" or "vegetable seeds" as defined
in RCW 15.49.011, or any other seeds or propagative portions of plants
used to grow ornamental flowers or used to grow any type of bush, moss,
fern, shrub, or tree;
(i) Any business of any bona fide agricultural fair, if no part of
the net earnings of such business inures to the benefit of any
stockholder or member of the association conducting the agricultural
fair. However, any amount paid for admission to any exhibit,
grandstand, entertainment, or other feature conducted within the
fairgrounds by others shall be taxable under the provisions of this
chapter, except as otherwise provided by law; and
(j) Any nonprofit organization in respect to gross income derived
from business activities for a hop commodity commission or hop
commodity board created by state statute or created under chapter 15.65
or 15.66 RCW if: (i) The activity is approved by a referendum
conducted by the commission or board; (ii) the person is specified in
information distributed by the commission or board for the referendum
as a person who is to conduct the activity; and (iii) the referendum is
conducted in the manner prescribed by the statutes governing the
commission or board for approving assessments or expenditures, or
otherwise authorizing or approving activities of the commission or
board.
For the purposes of this subsection (1)(j), "nonprofit
organization" means an organization that is exempt from federal income
tax under 26 U.S.C. Sec. 501(c)(5).
(2) The tax imposed by RCW 82.04.240 does not apply to cleaning
fish. For the purposes of this subsection, "cleaning fish" means the
removal of the head, fins, or viscera from fresh fish without further
processing, other than freezing.
Sec. 105 RCW 82.04.4266 and 2005 c 513 s 1 are each amended to
read as follows:
(1) This chapter shall not apply to ((amounts received from)) the:
(((1))) (a) Canning, preserving, freezing, processing, or
dehydrating fresh fruits and vegetables; or
(((2))) (b) Selling at wholesale fresh fruits and vegetables
canned, preserved, frozen, processed, or dehydrated by the seller and
sold to purchasers who transport in the ordinary course of business the
goods out of this state. ((As proof of sale to a person who transports
in the ordinary course of business goods out of this state, the seller
shall annually provide a statement in a form prescribed by the
department and retain the statement as a business record.)) A person
taking an exemption under this subsection (1)(b) must keep and preserve
records for the period required by RCW 82.32.070 establishing that the
goods were transported by the purchaser in the ordinary course of
business out of this state.
(2) This section expires July 1, 2012.
Sec. 106 RCW 82.08.02745 and 1997 c 438 s 1 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to charges made
for labor and services rendered by any person in respect to the
constructing, repairing, decorating, or improving of new or existing
buildings or other structures used as agricultural employee housing, or
to sales of tangible personal property that becomes an ingredient or
component of the buildings or other structures during the course of the
constructing, repairing, decorating, or improving the buildings or
other structures((, but)). The exemption is available only if the
buyer provides the seller with an exemption certificate in a form and
manner prescribed by the department ((by rule)).
(2) The exemption provided in this section for agricultural
employee housing provided to year-round employees of the agricultural
employer, only applies if that housing is built to the current building
code for single-family or multifamily dwellings according to the state
building code, chapter 19.27 RCW.
(3) Any agricultural employee housing built under this section
shall be used according to this section for at least five consecutive
years from the date the housing is approved for occupancy, or the full
amount of tax otherwise due shall be immediately due and payable
together with interest, but not penalties, from the date the housing is
approved for occupancy until the date of payment. If at any time
agricultural employee housing that is not located on agricultural land
ceases to be used in the manner specified in subsection (2) of this
section, the full amount of tax otherwise due shall be immediately due
and payable with interest, but not penalties, from the date the housing
ceases to be used as agricultural employee housing until the date of
payment.
(4) The exemption provided in this section shall not apply to
housing built for the occupancy of an employer, family members of an
employer, or persons owning stock or shares in a farm partnership or
corporation business.
(5) For purposes of this section and RCW 82.12.02685:
(a) "Agricultural employee" or "employee" has the same meaning as
given in RCW 19.30.010;
(b) "Agricultural employer" or "employer" has the same meaning as
given in RCW 19.30.010; and
(c) "Agricultural employee housing" means all facilities provided
by an agricultural employer, housing authority, local government, state
or federal agency, nonprofit community or neighborhood-based
organization that is exempt from income tax under section 501(c) of the
internal revenue code of 1986 (26 U.S.C. Sec. 501(c)), or for-profit
provider of housing for housing agricultural employees on a year-round
or seasonal basis, including bathing, food handling, hand washing,
laundry, and toilet facilities, single-family and multifamily dwelling
units and dormitories, and includes labor camps under RCW ((70.54.110))
70.114A.110. "Agricultural employee housing" does not include housing
regularly provided on a commercial basis to the general public.
"Agricultural employee housing" does not include housing provided by a
housing authority unless at least eighty percent of the occupants are
agricultural employees whose adjusted income is less than fifty percent
of median family income, adjusted for household size, for the county
where the housing is provided.
Sec. 107 RCW 82.08.0311 and 1988 c 68 s 1 are each amended to
read as follows:
The tax levied by RCW 82.08.020 shall not apply to sales of
materials and supplies directly used in the packing of fresh perishable
horticultural products by any person entitled to ((a deduction)) an
exemption under RCW ((82.04.4287)) 82.04.330(1)(e) either as an agent
or an independent contractor.
Sec. 108 RCW 82.08.820 and 1997 c 450 s 2 are each amended to
read as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses or grain elevators and retailers who own or operate
distribution centers, and who have paid the tax levied by RCW 82.08.020
on:
(a) Material-handling and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment; or
(b) Construction of a warehouse or grain elevator, including
materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Construction" means the actual construction of a warehouse or
grain elevator that did not exist before the construction began.
"Construction" includes expansion if the expansion adds at least two
hundred thousand square feet of additional space to an existing
warehouse or additional storage capacity of at least one million
bushels to an existing grain elevator. "Construction" does not include
renovation, remodeling, or repair;
(c) "Department" means the department of revenue;
(d) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(e) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(f) "Grain elevator" means a structure used for storage and
handling of grain in bulk;
(g) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(h) "Person" has the meaning given in RCW 82.04.030;
(i) "Retailer" means a person who makes "sales at retail" as
defined in chapter 82.04 RCW of tangible personal property;
(j) "Square footage" means the product of the two horizontal
dimensions of each floor of a specific warehouse. The entire footprint
of the warehouse shall be measured in calculating the square footage,
including space that juts out from the building profile such as loading
docks. "Square footage" does not mean the aggregate of the square
footage of more than one warehouse at a location or the aggregate of
the square footage of warehouses at more than one location;
(k) "Third-party warehouser" means a person taxable under RCW
82.04.280(4);
(l) "Warehouse" means an enclosed building or structure in which
finished goods are stored. A warehouse building or structure may have
more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(m) "Wholesaler" means a person who makes "sales at wholesale" as
defined in chapter 82.04 RCW of tangible personal property, but
"wholesaler" does not include a person who makes sales exempt under RCW
82.04.330(1) (a) or (b).
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more and for grain elevators with bushel capacity of two million or
more, the remittance is equal to one hundred percent of the amount of
tax paid for qualifying construction, materials, service, and labor,
and fifty percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment;
location and size of warehouses and grain elevators; and construction
invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment
and racking equipment for which an exemption, credit, or deferral has
been or is being received under chapter 82.60, ((82.61,)) 82.62, or
82.63 RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. Warehouses and grain elevators upon
which construction was initiated before May 20, 1997, are not eligible
for a remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not
eligible for a remittance under this section unless the underlying
ownership of the warehouse or grain elevator and the material-handling
equipment and racking equipment vests exclusively in the same person,
or unless the lessor by written contract agrees to pass the economic
benefit of the remittance to the lessee in the form of reduced rent
payments.
Sec. 109 RCW 82.08.820 and 2005 c 513 s 11 are each amended to
read as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses or grain elevators and retailers who own or operate
distribution centers, and who have paid the tax levied by RCW 82.08.020
on:
(a) Material-handling and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment; or
(b) Construction of a warehouse or grain elevator, including
materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Cold storage warehouse" means a storage warehouse used to
store fresh and/or frozen perishable fruits or vegetables, or any
combination thereof, at a desired temperature to maintain the quality
of the product for orderly marketing;
(c) "Construction" means the actual construction of a warehouse or
grain elevator that did not exist before the construction began.
"Construction" includes expansion if the expansion adds at least
twenty-five thousand square feet of additional space to an existing
cold storage warehouse, at least two hundred thousand square feet of
additional space to an existing warehouse other than a cold storage
warehouse, or additional storage capacity of at least one million
bushels to an existing grain elevator. "Construction" does not include
renovation, remodeling, or repair;
(d) "Department" means the department of revenue;
(e) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(f) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(g) "Grain elevator" means a structure used for storage and
handling of grain in bulk;
(h) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(i) "Person" has the meaning given in RCW 82.04.030;
(j) "Retailer" means a person who makes "sales at retail" as
defined in chapter 82.04 RCW of tangible personal property;
(k) "Square footage" means the product of the two horizontal
dimensions of each floor of a specific warehouse. The entire footprint
of the warehouse shall be measured in calculating the square footage,
including space that juts out from the building profile such as loading
docks. "Square footage" does not mean the aggregate of the square
footage of more than one warehouse at a location or the aggregate of
the square footage of warehouses at more than one location;
(l) "Third-party warehouser" means a person taxable under RCW
82.04.280(4);
(m) "Warehouse" means an enclosed building or structure in which
finished goods are stored. A warehouse building or structure may have
more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(n) "Wholesaler" means a person who makes "sales at wholesale" as
defined in chapter 82.04 RCW of tangible personal property, but
"wholesaler" does not include a person who makes sales exempt under RCW
82.04.330(1) (a) or (b).
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more, other than cold storage warehouses, and for grain elevators with
bushel capacity of two million or more, the remittance is equal to one
hundred percent of the amount of tax paid for qualifying construction,
materials, service, and labor, and fifty percent of the amount of tax
paid for qualifying material-handling equipment and racking equipment,
and labor and services rendered in respect to installing, repairing,
cleaning, altering, or improving the equipment. For cold storage
warehouses with square footage of twenty-five thousand or more, the
remittance is equal to one hundred percent of the amount of tax paid
for qualifying construction, materials, service, and labor, and one
hundred percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment;
location and size of warehouses and grain elevators; and construction
invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment
and racking equipment for which an exemption, credit, or deferral has
been or is being received under chapter 82.60, ((82.61,)) 82.62, or
82.63 RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. Warehouses and grain elevators upon
which construction was initiated before May 20, 1997, are not eligible
for a remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not
eligible for a remittance under this section unless the underlying
ownership of the warehouse or grain elevator and the material-handling
equipment and racking equipment vests exclusively in the same person,
or unless the lessor by written contract agrees to pass the economic
benefit of the remittance to the lessee in the form of reduced rent
payments.
Sec. 110 RCW 82.08.820 and 2006 c ... s 109 (section 109 of this
act) are each amended to read as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses or grain elevators and retailers who own or operate
distribution centers, and who have paid the tax levied by RCW 82.08.020
on:
(a) Material-handling and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment; or
(b) Construction of a warehouse or grain elevator, including
materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) (("Cold storage warehouse" means a storage warehouse used to
store fresh and/or frozen perishable fruits or vegetables, or any
combination thereof, at a desired temperature to maintain the quality
of the product for orderly marketing;)) "Construction" means the actual construction of a warehouse
or grain elevator that did not exist before the construction began.
"Construction" includes expansion if the expansion adds ((
(c)at least
twenty-five thousand square feet of additional space to an existing
cold storage warehouse,)) at least two hundred thousand square feet of
additional space to an existing warehouse ((other than a cold storage
warehouse,)) or additional storage capacity of at least one million
bushels to an existing grain elevator. "Construction" does not include
renovation, remodeling, or repair;
(((d))) (c) "Department" means the department of revenue;
(((e))) (d) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(((f))) (e) "Finished goods" means tangible personal property
intended for sale by a retailer or wholesaler. "Finished goods" does
not include agricultural products stored by wholesalers, third-party
warehouses, or retailers if the storage takes place on the land of the
person who produced the agricultural product. "Finished goods" does
not include logs, minerals, petroleum, gas, or other extracted products
stored as raw materials or in bulk;
(((g))) (f) "Grain elevator" means a structure used for storage and
handling of grain in bulk;
(((h))) (g) "Material-handling equipment and racking equipment"
means equipment in a warehouse or grain elevator that is primarily used
to handle, store, organize, convey, package, or repackage finished
goods. The term includes tangible personal property with a useful life
of one year or more that becomes an ingredient or component of the
equipment, including repair and replacement parts. The term does not
include equipment in offices, lunchrooms, restrooms, and other like
space, within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(((i))) (h) "Person" has the meaning given in RCW 82.04.030;
(((j))) (i) "Retailer" means a person who makes "sales at retail"
as defined in chapter 82.04 RCW of tangible personal property;
(((k))) (j) "Square footage" means the product of the two
horizontal dimensions of each floor of a specific warehouse. The
entire footprint of the warehouse shall be measured in calculating the
square footage, including space that juts out from the building profile
such as loading docks. "Square footage" does not mean the aggregate of
the square footage of more than one warehouse at a location or the
aggregate of the square footage of warehouses at more than one
location;
(((l))) (k) "Third-party warehouser" means a person taxable under
RCW 82.04.280(4);
(((m))) (l) "Warehouse" means an enclosed building or structure in
which finished goods are stored. A warehouse building or structure may
have more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(((n))) (m) "Wholesaler" means a person who makes "sales at
wholesale" as defined in chapter 82.04 RCW of tangible personal
property, but "wholesaler" does not include a person who makes sales
exempt under RCW 82.04.330(1) (a) or (b).
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more((, other than cold storage warehouses,)) and for grain elevators
with bushel capacity of two million or more, the remittance is equal to
one hundred percent of the amount of tax paid for qualifying
construction, materials, service, and labor, and fifty percent of the
amount of tax paid for qualifying material-handling equipment and
racking equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment.
((For cold storage warehouses with square footage of twenty-five
thousand or more, the remittance is equal to one hundred percent of the
amount of tax paid for qualifying construction, materials, service, and
labor, and one hundred percent of the amount of tax paid for qualifying
material-handling equipment and racking equipment, and labor and
services rendered in respect to installing, repairing, cleaning,
altering, or improving the equipment.))
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment;
location and size of warehouses and grain elevators; and construction
invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment
and racking equipment for which an exemption, credit, or deferral has
been or is being received under chapter 82.60, 82.62, or 82.63 RCW or
RCW 82.08.02565 or 82.12.02565 are not eligible for any remittance
under this section. Warehouses and grain elevators upon which
construction was initiated before May 20, 1997, are not eligible for a
remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not
eligible for a remittance under this section unless the underlying
ownership of the warehouse or grain elevator and the material-handling
equipment and racking equipment vests exclusively in the same person,
or unless the lessor by written contract agrees to pass the economic
benefit of the remittance to the lessee in the form of reduced rent
payments.
Sec. 111 RCW 82.12.820 and 2005 c 513 s 12 are each amended to
read as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses or grain elevators, and retailers who own or operate
distribution centers, and who have paid the tax levied under RCW
82.12.020 on:
(a) Material-handling equipment and racking equipment and labor and
services rendered in respect to installing, repairing, cleaning,
altering, or improving the equipment; or
(b) Materials incorporated in the construction of a warehouse or
grain elevator, are eligible for an exemption on tax paid in the form
of a remittance or credit against tax owed. The amount of the
remittance or credit is computed under subsection (2) of this section
and is based on the state share of use tax.
(2)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.12.020 to the department. The person may then apply to the
department for remittance of all or part of the tax paid under RCW
82.12.020. For grain elevators with bushel capacity of one million but
less than two million, the remittance is equal to fifty percent of the
amount of tax paid. For warehouses with square footage of two hundred
thousand or more, other than cold storage warehouses, and for grain
elevators with bushel capacity of two million or more, the remittance
is equal to one hundred percent of the amount of tax paid for
qualifying construction materials, and fifty percent of the amount of
tax paid for qualifying material-handling equipment and racking
equipment. ((For cold storage warehouses with square footage of
twenty-five thousand or more, the remittance is equal to one hundred
percent of the amount of tax paid for qualifying construction,
materials, service, and labor, and one hundred percent of the amount of
tax paid for qualifying material-handling equipment and racking
equipment, and labor and services rendered in respect to installing,
repairing, cleaning, altering, or improving the equipment.))
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment;
location and size of warehouses, if applicable; and construction
invoices and documents.
(c) The department shall on a quarterly basis remit or credit
exempted amounts to qualifying persons who submitted applications
during the previous quarter.
(3) Warehouse, grain elevators, and material-handling equipment and
racking equipment for which an exemption, credit, or deferral has been
or is being received under chapter 82.60, ((82.61,)) 82.62, or 82.63
RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. Materials incorporated in warehouses
and grain elevators upon which construction was initiated prior to May
20, 1997, are not eligible for a remittance under this section.
(4) The lessor or owner of the warehouse or grain elevator is not
eligible for a remittance or credit under this section unless the
underlying ownership of the warehouse or grain elevator and material-handling equipment and racking equipment vests exclusively in the same
person, or unless the lessor by written contract agrees to pass the
economic benefit of the exemption to the lessee in the form of reduced
rent payments.
(5) The definitions in RCW 82.08.820 apply to this section.
Sec. 112 RCW 82.16.050 and 2004 c 153 s 308 are each amended to
read as follows:
In computing tax there may be deducted from the gross income the
following items:
(1) Amounts derived by municipally owned or operated public service
businesses, directly from taxes levied for the support or maintenance
thereof((: PROVIDED, That)). This subsection shall not be construed
to exempt service charges which are spread on the property tax rolls
and collected as taxes;
(2) Amounts derived from the sale of commodities to persons in the
same public service business as the seller, for resale as such within
this state. This deduction is allowed only with respect to water
distribution, gas distribution or other public service businesses which
furnish water, gas or any other commodity in the performance of public
service businesses;
(3) Amounts actually paid by a taxpayer to another person taxable
under this chapter as the latter's portion of the consideration due for
services furnished jointly by both, if the total amount has been
credited to and appears in the gross income reported for tax by the
former;
(4) The amount of cash discount actually taken by the purchaser or
customer;
(5) The amount of bad debts, as that term is used in 26 U.S.C. Sec.
166, as amended or renumbered as of January 1, 2003, on which tax was
previously paid under this chapter;
(6) Amounts derived from business which the state is prohibited
from taxing under the Constitution of this state or the Constitution or
laws of the United States;
(7) Amounts derived from the distribution of water through an
irrigation system, for irrigation purposes;
(8) Amounts derived from the transportation of commodities from
points of origin in this state to final destination outside this state,
or from points of origin outside this state to final destination in
this state, with respect to which the carrier grants to the shipper the
privilege of stopping the shipment in transit at some point in this
state for the purpose of storing, manufacturing, milling, or other
processing, and thereafter forwards the same commodity, or its
equivalent, in the same or converted form, under a through freight rate
from point of origin to final destination; ((and))
(9) Amounts derived from the transportation of commodities from
points of origin in the state to an export elevator, wharf, dock, or
ship side on tidewater or its navigable tributaries ((thereto from
which such commodities are)) to be forwarded, without intervening
transportation, by vessel, in their original form, to interstate or
foreign destinations((: PROVIDED, That)). No deduction ((will be)) is
allowed under this subsection when the point of origin and the point of
delivery to ((such an)) the export elevator, wharf, dock, or ship side
are located within the corporate limits of the same city or town;
(((9))) (10) Amounts derived from the transportation of
agricultural commodities, not including manufactured substances or
articles, from points of origin in the state to interim storage
facilities in this state for transshipment, without intervening
transportation, to an export elevator, wharf, dock, or ship side on
tidewater or its navigable tributaries to be forwarded, without
intervening transportation, by vessel, in their original form, to
interstate or foreign destinations. If agricultural commodities are
transshipped from interim storage facilities in this state to storage
facilities at a port on tidewater or its navigable tributaries, the
same agricultural commodity dealer must operate both the interim
storage facilities and the storage facilities at the port.
(a) The deduction under this subsection is available only when the
person claiming the deduction obtains a certificate from the
agricultural commodity dealer operating the interim storage facilities,
in a form and manner prescribed by the department, certifying that:
(i) More than ninety-six percent of all of the type of agricultural
commodity delivered by the person claiming the deduction under this
subsection and all other persons to the dealer's interim storage
facilities during the preceding calendar year was shipped by vessel in
original form to interstate or foreign destinations; and
(ii) Any of the agricultural commodity that is transshipped to
ports on tidewater or its navigable tributaries will be received at
storage facilities operated by the same agricultural commodity dealer
and will be shipped from such facilities, without intervening
transportation, by vessel, in their original form, to interstate or
foreign destinations.
(b) As used in this subsection, "agricultural commodity" has the
same meaning as agricultural product in RCW 82.04.213;
(11) Amounts derived from the production, sale, or transfer of
electrical energy for resale within or outside the state or for
consumption outside the state;
(((10))) (12) Amounts derived from the distribution of water by a
nonprofit water association and used for capital improvements by that
nonprofit water association;
(((11))) (13) Amounts paid by a sewerage collection business
taxable under RCW 82.16.020(1)(a) to a person taxable under chapter
82.04 RCW for the treatment or disposal of sewage.
Sec. 113 RCW 88.40.011 and 2003 c 56 s 2 are each amended to read
as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Barge" means a vessel that is not self-propelled.
(2) "Cargo vessel" means a self-propelled ship in commerce, other
than a tank vessel, fishing vessel, or a passenger vessel, of three
hundred or more gross tons.
(3) "Bulk" means material that is stored or transported in a loose,
unpackaged liquid, powder, or granular form capable of being conveyed
by a pipe, bucket, chute, or belt system.
(4) "Covered vessel" means a tank vessel, cargo vessel, or
passenger vessel.
(5) "Department" means the department of ecology.
(6) "Director" means the director of the department of ecology.
(7)(a) "Facility" means any structure, group of structures,
equipment, pipeline, or device, other than a vessel, located on or near
the navigable waters of the state that transfers oil in bulk to or from
any vessel with an oil carrying capacity over two hundred fifty barrels
or pipeline, that is used for producing, storing, handling,
transferring, processing, or transporting oil in bulk.
(b) A facility does not include any: (i) Railroad car, motor
vehicle, or other rolling stock while transporting oil over the
highways or rail lines of this state; (ii) retail motor vehicle motor
fuel outlet; (iii) facility that is operated as part of an exempt
agricultural activity as provided in RCW 82.04.330(1) (a) or (b); (iv)
underground storage tank regulated by the department or a local
government under chapter 90.76 RCW; or (v) marine fuel outlet that does
not dispense more than three thousand gallons of fuel to a ship that is
not a covered vessel, in a single transaction.
(8) "Fishing vessel" means a self-propelled commercial vessel of
three hundred or more gross tons that is used for catching or
processing fish.
(9) "Gross tons" means tonnage as determined by the United States
coast guard under 33 C.F.R. section 138.30.
(10) "Hazardous substances" means any substance listed as of March
1, 2003, in Table 302.4 of 40 C.F.R. Part 302 adopted under section
101(14) of the federal comprehensive environmental response,
compensation, and liability act of 1980, as amended by P.L. 99-499.
The following are not hazardous substances for purposes of this
chapter:
(a) Wastes listed as F001 through F028 in Table 302.4; and
(b) Wastes listed as K001 through K136 in Table 302.4.
(11) "Navigable waters of the state" means those waters of the
state, and their adjoining shorelines, that are subject to the ebb and
flow of the tide and/or are presently used, have been used in the past,
or may be susceptible for use to transport intrastate, interstate, or
foreign commerce.
(12) "Oil" or "oils" means any naturally occurring liquid
hydrocarbons at atmospheric temperature and pressure coming from the
earth, including condensate and natural gasoline, and any fractionation
thereof, including, but not limited to, crude oil, petroleum, gasoline,
fuel oil, diesel oil, oil sludge, oil refuse, and oil mixed with wastes
other than dredged spoil. Oil does not include any substance listed as
of March 1, 2003, in Table 302.4 of 40 C.F.R. Part 302 adopted under
section 101(14) of the federal comprehensive environmental response,
compensation, and liability act of 1980, as amended by P.L. 99-499.
(13) "Offshore facility" means any facility located in, on, or
under any of the navigable waters of the state, but does not include a
facility any part of which is located in, on, or under any land of the
state, other than submerged land.
(14) "Onshore facility" means any facility any part of which is
located in, on, or under any land of the state, other than submerged
land, that because of its location, could reasonably be expected to
cause substantial harm to the environment by discharging oil into or on
the navigable waters of the state or the adjoining shorelines.
(15)(a) "Owner or operator" means (i) in the case of a vessel, any
person owning, operating, or chartering by demise, the vessel; (ii) in
the case of an onshore or offshore facility, any person owning or
operating the facility; and (iii) in the case of an abandoned vessel or
onshore or offshore facility, the person who owned or operated the
vessel or facility immediately before its abandonment.
(b) "Operator" does not include any person who owns the land
underlying a facility if the person is not involved in the operations
of the facility.
(16) "Passenger vessel" means a ship of three hundred or more gross
tons with a fuel capacity of at least six thousand gallons carrying
passengers for compensation.
(17) "Ship" means any boat, ship, vessel, barge, or other floating
craft of any kind.
(18) "Spill" means an unauthorized discharge of oil into the waters
of the state.
(19) "Tank vessel" means a ship that is constructed or adapted to
carry, or that carries, oil in bulk as cargo or cargo residue, and
that:
(a) Operates on the waters of the state; or
(b) Transfers oil in a port or place subject to the jurisdiction of
this state.
(20) "Waters of the state" includes lakes, rivers, ponds, streams,
inland waters, underground water, salt waters, estuaries, tidal flats,
beaches and lands adjoining the seacoast of the state, sewers, and all
other surface waters and watercourses within the jurisdiction of the
state of Washington.
Sec. 114 RCW 88.46.010 and 2000 c 69 s 1 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Best achievable protection" means the highest level of
protection that can be achieved through the use of the best achievable
technology and those staffing levels, training procedures, and
operational methods that provide the greatest degree of protection
achievable. The director's determination of best achievable protection
shall be guided by the critical need to protect the state's natural
resources and waters, while considering (a) the additional protection
provided by the measures; (b) the technological achievability of the
measures; and (c) the cost of the measures.
(2) "Best achievable technology" means the technology that provides
the greatest degree of protection taking into consideration (a)
processes that are being developed, or could feasibly be developed,
given overall reasonable expenditures on research and development, and
(b) processes that are currently in use. In determining what is best
achievable technology, the director shall consider the effectiveness,
engineering feasibility, and commercial availability of the technology.
(3) "Cargo vessel" means a self-propelled ship in commerce, other
than a tank vessel or a passenger vessel, of three hundred or more
gross tons, including but not limited to, commercial fish processing
vessels and freighters.
(4) "Bulk" means material that is stored or transported in a loose,
unpackaged liquid, powder, or granular form capable of being conveyed
by a pipe, bucket, chute, or belt system.
(5) "Covered vessel" means a tank vessel, cargo vessel, or
passenger vessel.
(6) "Department" means the department of ecology.
(7) "Director" means the director of the department of ecology.
(8) "Discharge" means any spilling, leaking, pumping, pouring,
emitting, emptying, or dumping.
(9)(a) "Facility" means any structure, group of structures,
equipment, pipeline, or device, other than a vessel, located on or near
the navigable waters of the state that transfers oil in bulk to or from
a tank vessel or pipeline, that is used for producing, storing,
handling, transferring, processing, or transporting oil in bulk.
(b) A facility does not include any: (i) Railroad car, motor
vehicle, or other rolling stock while transporting oil over the
highways or rail lines of this state; (ii) retail motor vehicle motor
fuel outlet; (iii) facility that is operated as part of an exempt
agricultural activity as provided in RCW 82.04.330(1) (a) or (b); (iv)
underground storage tank regulated by the department or a local
government under chapter 90.76 RCW; or (v) marine fuel outlet that does
not dispense more than three thousand gallons of fuel to a ship that is
not a covered vessel, in a single transaction.
(10) "Marine facility" means any facility used for tank vessel
wharfage or anchorage, including any equipment used for the purpose of
handling or transferring oil in bulk to or from a tank vessel.
(11) "Navigable waters of the state" means those waters of the
state, and their adjoining shorelines, that are subject to the ebb and
flow of the tide and/or are presently used, have been used in the past,
or may be susceptible for use to transport intrastate, interstate, or
foreign commerce.
(12) "Oil" or "oils" means any naturally occurring liquid
hydrocarbons at atmospheric temperature and pressure coming from the
earth, including condensate and natural gasoline, and any fractionation
thereof, including, but not limited to, crude oil, petroleum, gasoline,
fuel oil, diesel oil, oil sludge, oil refuse, and oil mixed with wastes
other than dredged spoil. Oil does not include any substance listed in
Table 302.4 of 40 C.F.R. Part 302 adopted August 14, 1989, under
section 101(14) of the federal comprehensive environmental response,
compensation, and liability act of 1980, as amended by P.L. 99-499.
(13) "Offshore facility" means any facility located in, on, or
under any of the navigable waters of the state, but does not include a
facility any part of which is located in, on, or under any land of the
state, other than submerged land. "Offshore facility" does not include
a marine facility.
(14) "Onshore facility" means any facility any part of which is
located in, on, or under any land of the state, other than submerged
land, that because of its location, could reasonably be expected to
cause substantial harm to the environment by discharging oil into or on
the navigable waters of the state or the adjoining shorelines.
(15)(a) "Owner or operator" means (i) in the case of a vessel, any
person owning, operating, or chartering by demise, the vessel; (ii) in
the case of an onshore or offshore facility, any person owning or
operating the facility; and (iii) in the case of an abandoned vessel or
onshore or offshore facility, the person who owned or operated the
vessel or facility immediately before its abandonment.
(b) "Operator" does not include any person who owns the land
underlying a facility if the person is not involved in the operations
of the facility.
(16) "Passenger vessel" means a ship of three hundred or more gross
tons with a fuel capacity of at least six thousand gallons carrying
passengers for compensation.
(17) "Person" means any political subdivision, government agency,
municipality, industry, public or private corporation, copartnership,
association, firm, individual, or any other entity whatsoever.
(18) "Ship" means any boat, ship, vessel, barge, or other floating
craft of any kind.
(19) "Spill" means an unauthorized discharge of oil into the waters
of the state.
(20) "Tank vessel" means a ship that is constructed or adapted to
carry, or that carries, oil in bulk as cargo or cargo residue, and
that:
(a) Operates on the waters of the state; or
(b) Transfers oil in a port or place subject to the jurisdiction of
this state.
(21) "Waters of the state" includes lakes, rivers, ponds, streams,
inland waters, underground water, salt waters, estuaries, tidal flats,
beaches and lands adjoining the seacoast of the state, sewers, and all
other surface waters and watercourses within the jurisdiction of the
state of Washington.
(22) "Worst case spill" means: (a) In the case of a vessel, a
spill of the entire cargo and fuel of the vessel complicated by adverse
weather conditions; and (b) in the case of an onshore or offshore
facility, the largest foreseeable spill in adverse weather conditions.
Sec. 115 RCW 90.56.010 and 2000 c 69 s 15 are each amended to
read as follows:
For purposes of this chapter, the following definitions shall apply
unless the context indicates otherwise:
(1) "Best achievable protection" means the highest level of
protection that can be achieved through the use of the best achievable
technology and those staffing levels, training procedures, and
operational methods that provide the greatest degree of protection
achievable. The director's determination of best achievable protection
shall be guided by the critical need to protect the state's natural
resources and waters, while considering (a) the additional protection
provided by the measures; (b) the technological achievability of the
measures; and (c) the cost of the measures.
(2) "Best achievable technology" means the technology that provides
the greatest degree of protection taking into consideration (a)
processes that are being developed, or could feasibly be developed,
given overall reasonable expenditures on research and development, and
(b) processes that are currently in use. In determining what is best
achievable technology, the director shall consider the effectiveness,
engineering feasibility, and commercial availability of the technology.
(3) "Board" means the pollution control hearings board.
(4) "Cargo vessel" means a self-propelled ship in commerce, other
than a tank vessel or a passenger vessel, three hundred or more gross
tons, including but not limited to, commercial fish processing vessels
and freighters.
(5) "Bulk" means material that is stored or transported in a loose,
unpackaged liquid, powder, or granular form capable of being conveyed
by a pipe, bucket, chute, or belt system.
(6) "Committee" means the preassessment screening committee
established under RCW 90.48.368.
(7) "Covered vessel" means a tank vessel, cargo vessel, or
passenger vessel.
(8) "Department" means the department of ecology.
(9) "Director" means the director of the department of ecology.
(10) "Discharge" means any spilling, leaking, pumping, pouring,
emitting, emptying, or dumping.
(11)(a) "Facility" means any structure, group of structures,
equipment, pipeline, or device, other than a vessel, located on or near
the navigable waters of the state that transfers oil in bulk to or from
a tank vessel or pipeline, that is used for producing, storing,
handling, transferring, processing, or transporting oil in bulk.
(b) A facility does not include any: (i) Railroad car, motor
vehicle, or other rolling stock while transporting oil over the
highways or rail lines of this state; (ii) underground storage tank
regulated by the department or a local government under chapter 90.76
RCW; (iii) motor vehicle motor fuel outlet; (iv) facility that is
operated as part of an exempt agricultural activity as provided in RCW
82.04.330(1) (a) or (b); or (v) marine fuel outlet that does not
dispense more than three thousand gallons of fuel to a ship that is not
a covered vessel, in a single transaction.
(12) "Fund" means the state coastal protection fund as provided in
RCW 90.48.390 and 90.48.400.
(13) "Having control over oil" shall include but not be limited to
any person using, storing, or transporting oil immediately prior to
entry of such oil into the waters of the state, and shall specifically
include carriers and bailees of such oil.
(14) "Marine facility" means any facility used for tank vessel
wharfage or anchorage, including any equipment used for the purpose of
handling or transferring oil in bulk to or from a tank vessel.
(15) "Navigable waters of the state" means those waters of the
state, and their adjoining shorelines, that are subject to the ebb and
flow of the tide and/or are presently used, have been used in the past,
or may be susceptible for use to transport intrastate, interstate, or
foreign commerce.
(16) "Necessary expenses" means the expenses incurred by the
department and assisting state agencies for (a) investigating the
source of the discharge; (b) investigating the extent of the
environmental damage caused by the discharge; (c) conducting actions
necessary to clean up the discharge; (d) conducting predamage and
damage assessment studies; and (e) enforcing the provisions of this
chapter and collecting for damages caused by a discharge.
(17) "Oil" or "oils" means naturally occurring liquid hydrocarbons
at atmospheric temperature and pressure coming from the earth,
including condensate and natural gasoline, and any fractionation
thereof, including, but not limited to, crude oil, petroleum, gasoline,
fuel oil, diesel oil, oil sludge, oil refuse, and oil mixed with wastes
other than dredged spoil. Oil does not include any substance listed in
Table 302.4 of 40 C.F.R. Part 302 adopted August 14, 1989, under
section 101(14) of the federal comprehensive environmental response,
compensation, and liability act of 1980, as amended by P.L. 99-499.
(18) "Offshore facility" means any facility located in, on, or
under any of the navigable waters of the state, but does not include a
facility any part of which is located in, on, or under any land of the
state, other than submerged land.
(19) "Onshore facility" means any facility any part of which is
located in, on, or under any land of the state, other than submerged
land, that because of its location, could reasonably be expected to
cause substantial harm to the environment by discharging oil into or on
the navigable waters of the state or the adjoining shorelines.
(20)(a) "Owner or operator" means (i) in the case of a vessel, any
person owning, operating, or chartering by demise, the vessel; (ii) in
the case of an onshore or offshore facility, any person owning or
operating the facility; and (iii) in the case of an abandoned vessel or
onshore or offshore facility, the person who owned or operated the
vessel or facility immediately before its abandonment.
(b) "Operator" does not include any person who owns the land
underlying a facility if the person is not involved in the operations
of the facility.
(21) "Passenger vessel" means a ship of three hundred or more gross
tons with a fuel capacity of at least six thousand gallons carrying
passengers for compensation.
(22) "Person" means any political subdivision, government agency,
municipality, industry, public or private corporation, copartnership,
association, firm, individual, or any other entity whatsoever.
(23) "Ship" means any boat, ship, vessel, barge, or other floating
craft of any kind.
(24) "Spill" means an unauthorized discharge of oil or hazardous
substances into the waters of the state.
(25) "Tank vessel" means a ship that is constructed or adapted to
carry, or that carries, oil in bulk as cargo or cargo residue, and
that:
(a) Operates on the waters of the state; or
(b) Transfers oil in a port or place subject to the jurisdiction of
this state.
(26) "Waters of the state" includes lakes, rivers, ponds, streams,
inland waters, underground water, salt waters, estuaries, tidal flats,
beaches and lands adjoining the seacoast of the state, sewers, and all
other surface waters and watercourses within the jurisdiction of the
state of Washington.
(27) "Worst case spill" means: (a) In the case of a vessel, a
spill of the entire cargo and fuel of the vessel complicated by adverse
weather conditions; and (b) in the case of an onshore or offshore
facility, the largest foreseeable spill in adverse weather conditions.
NEW SECTION. Sec. 116 The repealed sections in section 4,
chapter 420, Laws of 2005 do not affect any rights, liabilities,
obligations, or proceedings, incurred or instituted prior to July 1,
2005, under those repealed sections or rules or orders adopted by the
department of revenue pursuant to those repealed sections.
NEW SECTION. Sec. 117 The following acts or parts of acts are
each repealed:
(1) RCW 82.04.035 ("Plantation Christmas trees") and 1987 c 23 s 1;
(2) RCW 82.04.2403 (Manufacturer tax not applicable to cleaning
fish) and 1994 c 167 s 1;
(3) RCW 82.04.331 (Exemptions -- Wholesale sales to farmers of seed
for planting, conditioning seed for planting owned by others) and 1998
c 170 s 2;
(4) RCW 82.04.332 (Exemptions -- Buying and selling at wholesale
wheat, oats, dry peas, dry beans, lentils, triticale, canola, corn,
rye, and barley) and 1998 c 312 s 2;
(5) RCW 82.04.333 (Exemptions -- Small harvesters) and 1990 c 141 s
1;
(6) RCW 82.04.335 (Exemptions -- Agricultural fairs) and 1965 ex.s.
c 145 s 1;
(7) RCW 82.04.337 (Exemptions -- Amounts received by hop growers or
dealers for processed hops shipped outside the state) and 1987 c 495 s
1;
(8) RCW 82.04.338 (Exemptions -- Hop commodity commission or hop
commodity board business) and 1998 c 200 s 1;
(9) RCW 82.04.410 (Exemptions -- Hatching eggs and poultry) and 1967
ex.s. c 149 s 15 & 1961 c 15 s 82.04.410; and
(10) RCW 82.04.4287 (Deductions -- Compensation for receiving,
washing, etc., horticultural products for person exempt under RCW
82.04.330 -- Materials and supplies used) and 1980 c 37 s 8.
Sec. 201 RCW 82.04.260 and 2005 c 513 s 2 and 2005 c 443 s 4 are
each reenacted and amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola byproducts,
or sunflower seeds into sunflower oil; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
((flour, pearl barley, oil, canola meal, or canola)) products or
byproducts manufactured, multiplied by the rate of 0.138 percent;
(b) Seafood products which remain in a raw, raw frozen, or raw
salted state at the completion of the manufacturing by that person; as
to such persons the amount of tax with respect to such business shall
be equal to the value of the products manufactured, multiplied by the
rate of 0.138 percent;
(c) Dairy products that as of September 20, 2001, are identified in
21 C.F.R., chapter 1, parts 131, 133, and 135, including byproducts
from the manufacturing of the dairy products such as whey and casein;
or selling the same to purchasers who transport in the ordinary course
of business the goods out of state; as to such persons the tax imposed
shall be equal to the value of the products or byproducts manufactured
or the gross proceeds derived from such sales multiplied by the rate of
0.138 percent. ((As proof of sale to a person who transports in the
ordinary course of business goods out of this state, the seller shall
annually provide a statement in a form prescribed by the department and
retain the statement as a business record)) Sellers must keep and
preserve records for the period required by RCW 82.32.070 establishing
that the goods were transported by the purchaser in the ordinary course
of business out of this state;
(d) ((Until July 1, 2009,)) Alcohol fuel, biodiesel fuel, ((or))
biodiesel feedstock, or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of ((alcohol fuel, biodiesel
fuel, or biodiesel feedstock)) the products manufactured, multiplied by
the rate of 0.138 percent; and
(e) ((Alcohol fuel or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of alcohol fuel or wood
biomass fuel manufactured, multiplied by the rate of 0.138 percent))
Beginning July 1, 2012, fresh fruits and/or vegetables by canning,
preserving, freezing, processing, or dehydrating, or selling at
wholesale fresh fruits and vegetables canned, preserved, frozen,
processed, or dehydrated by the seller and sold to purchasers who
transport in the ordinary course of business the goods out of this
state; as to such persons the amount of tax with respect to such
business shall be equal to the value of the products manufactured or
the gross proceeds derived from such sales multiplied by the rate of
0.138 percent. Sellers must keep and preserve records for the period
required by RCW 82.32.070 establishing that the goods were transported
by the purchaser in the ordinary course of business out of this state.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed shall be equal to the gross proceeds derived
from such sales multiplied by the rate of 0.138 percent.
(5) Upon every person engaging within this state in the business of
acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities shall be equal to the
gross income derived from such activities multiplied by the rate of
0.275 percent.
(6) Upon every person engaging within this state in business as an
international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of
stevedoring and associated activities pertinent to the movement of
goods and commodities in waterborne interstate or foreign commerce; as
to such persons the amount of tax with respect to such business shall
be equal to the gross proceeds derived from such activities multiplied
by the rate of 0.275 percent. Persons subject to taxation under this
subsection shall be exempt from payment of taxes imposed by chapter
82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to
the conduct of goods and commodities in waterborne interstate or
foreign commerce are defined as all activities of a labor, service or
transportation nature whereby cargo may be loaded or unloaded to or
from vessels or barges, passing over, onto or under a wharf, pier, or
similar structure; cargo may be moved to a warehouse or similar holding
or storage yard or area to await further movement in import or export
or may move to a consolidation freight station and be stuffed,
unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for
delivery to its consignee. Specific activities included in this
definition are: Wharfage, handling, loading, unloading, moving of
cargo to a convenient place of delivery to the consignee or a
convenient place for further movement to export mode; documentation
services in connection with the receipt, delivery, checking, care,
custody and control of cargo required in the transfer of cargo;
imported automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not limited
to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(8) Upon every person engaging within this state in the business of
disposing of low-level waste, as defined in RCW 43.145.010; as to such
persons the amount of the tax with respect to such business shall be
equal to the gross income of the business, excluding any fees imposed
under chapter 43.200 RCW, multiplied by the rate of 3.3 percent.
If the gross income of the taxpayer is attributable to activities
both within and without this state, the gross income attributable to
this state shall be determined in accordance with the methods of
apportionment required under RCW 82.04.460.
(9) Upon every person engaging within this state as an insurance
agent, insurance broker, or insurance solicitor licensed under chapter
48.17 RCW; as to such persons, the amount of the tax with respect to
such licensed activities shall be equal to the gross income of such
business multiplied by the rate of 0.484 percent.
(10) Upon every person engaging within this state in business as a
hospital, as defined in chapter 70.41 RCW, that is operated as a
nonprofit corporation or by the state or any of its political
subdivisions, as to such persons, the amount of tax with respect to
such activities shall be equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5
percent thereafter. The moneys collected under this subsection shall
be deposited in the health services account created under RCW
43.72.900.
(11)(a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, as to such persons the
amount of tax with respect to such business shall, in the case of
manufacturers, be equal to the value of the product manufactured, or in
the case of processors for hire, be equal to the gross income of the
business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(b) Beginning October 1, 2005, upon every person engaging within
this state in the business of making sales, at retail or wholesale, of
commercial airplanes, or components of such airplanes, manufactured by
that person, as to such persons the amount of tax with respect to such
business shall be equal to the gross proceeds of sales of the airplanes
or components multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(c) For the purposes of this subsection (11), "commercial
airplane," "component," and "final assembly of a superefficient
airplane" have the meanings given in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person eligible for the tax rate under this subsection (11) must report
as required under RCW 82.32.545.
(e) This subsection (11) does not apply after the earlier of: July
1, 2024; or December 31, 2007, if assembly of a superefficient airplane
does not begin by December 31, 2007, as determined under RCW 82.32.550.
Sec. 202 RCW 84.36.635 and 2003 c 261 s 9 are each amended to
read as follows:
(1) For the purposes of this section:
(a) "Alcohol fuel" means any alcohol made from a product other than
petroleum or natural gas, which is used alone or in combination with
gasoline or other petroleum products for use as a fuel for motor
vehicles, farm implements, and machines or implements of husbandry.
(b) "Biodiesel feedstock" means oil that is produced from an
agricultural crop for the sole purpose of ultimately producing
biodiesel fuel.
(c) "Biodiesel fuel" means a mono alkyl ester of long chain fatty
acids derived from vegetable oils or animal fats for use in
compression-ignition engines and that meets the requirements of the
American society of testing and materials specification D 6751 in
effect as of January 1, 2003.
(d) "Wood biomass fuel" means a pyrolytic liquid fuel or synthesis
gas-derived liquid fuel, used in internal combustion engines, and
produced from wood, forest, or field residue, or dedicated energy crops
that do not include wood pieces that have been treated with chemical
preservatives such as creosote, pentachlorophenol, or
copper-chroma-arsenic.
(2)(a) All buildings, machinery, equipment, and other personal
property ((which is)) used primarily for the manufacturing of alcohol
fuel, biodiesel fuel, ((or)) biodiesel feedstock, or wood biomass fuel,
the land upon which this property is located, and land that is
reasonably necessary in the manufacturing of alcohol fuel, biodiesel
fuel, ((or)) biodiesel feedstock, or wood biomass fuel, but not land
necessary for growing of crops, which together comprise a new
manufacturing facility or an addition to an existing manufacturing
facility, are exempt from property taxation for the six assessment
years following the date on which the facility or the addition to the
existing facility becomes operational.
(b) For manufacturing facilities ((which)) that produce products in
addition to alcohol fuel, biodiesel fuel, ((or)) biodiesel feedstock,
or wood biomass fuel, the amount of the property tax exemption shall be
based upon the annual percentage of the total value of all products
manufactured that is the value of the alcohol fuel, biodiesel fuel,
((and)) biodiesel feedstock, and wood biomass fuel manufactured.
(3) Claims for exemptions authorized by this section shall be filed
with the county assessor on forms prescribed by the department of
revenue and furnished by the assessor. Once filed, the exemption is
valid for six years and shall not be renewed. The assessor shall
verify and approve claims as the assessor determines to be justified
and in accordance with this section. ((No claims may be filed after
December 31, 2009.))
(4) The department of revenue may ((promulgate such)) adopt rules,
pursuant to chapter 34.05 RCW, as necessary to properly administer this
section.
Sec. 203 RCW 82.29A.135 and 2003 c 339 s 10 and 2003 c 261 s 10
are each reenacted and amended to read as follows:
(1) For the purposes of this section:
(a) "Alcohol fuel" means any alcohol made from a product other than
petroleum or natural gas, which is used alone or in combination with
gasoline or other petroleum products for use as a fuel for motor
vehicles, farm implements, and machines or implements of husbandry.
(b) "Biodiesel feedstock" means oil that is produced from an
agricultural crop for the sole purpose of ultimately producing
biodiesel fuel.
(c) "Biodiesel fuel" means a mono alkyl ester of long chain fatty
acids derived from vegetable oils or animal fats for use in
compression-ignition engines and that meets the requirements of the
American society of testing and materials specification D 6751 in
effect as of January 1, 2003.
(d) "Wood biomass fuel" means a pyrolytic liquid fuel or synthesis
gas-derived liquid fuel, used in internal combustion engines, and
produced from wood, forest, or field residue, or dedicated energy crops
that do not include wood pieces that have been treated with chemical
preservatives such as creosote, pentachlorophenol, or copper-chroma-arsenic.
(2)(a) All leasehold interests in buildings, machinery, equipment,
and other personal property which is used primarily for the
manufacturing of alcohol fuel, wood biomass fuel, biodiesel fuel, or
biodiesel feedstock, the land upon which this property is located, and
land that is reasonably necessary in the manufacturing of alcohol fuel,
wood biomass fuel, biodiesel fuel, or biodiesel feedstock, but not land
necessary for growing of crops, which together comprise a new
manufacturing facility or an addition to an existing manufacturing
facility, are exempt from leasehold excise taxes imposed by or under
the authority of RCW 82.29A.030 and 82.29A.040 for a period of six
years from the date on which the facility or the addition to the
existing facility becomes operational.
(b) For manufacturing facilities which produce products in addition
to alcohol fuel, wood biomass fuel, biodiesel fuel, or biodiesel
feedstock, the amount of the leasehold excise tax exemption shall be
based upon the annual percentage of the total value of all products
manufactured that is the value of the alcohol fuel, wood biomass fuel,
biodiesel fuel, and biodiesel feedstock manufactured.
(3) Claims for exemptions authorized by this section shall be filed
with the department ((of revenue)) on forms prescribed and furnished by
the department ((of revenue and furnished by the department of
revenue)). Once filed, the exemption is valid for six years and shall
not be renewed. The department ((of revenue)) shall verify and approve
claims as the department ((of revenue)) determines to be justified and
in accordance with this section. ((No claims may be filed after
December 31, 2009.))
(4) The department ((of revenue)) may ((promulgate such)) adopt
rules, pursuant to chapter 34.05 RCW, as are necessary to properly
administer this section.
Sec. 204 RCW 82.04.4334 and 2003 c 63 s 1 are each amended to
read as follows:
(1) In computing tax there may be deducted from the measure of tax
amounts received from the retail sale, or for the distribution, of:
(a) Biodiesel fuel; or
(b) Wood biomass fuel; or
(c) Alcohol fuel, if the alcohol fuel is at least eighty-five
percent of the volume of the fuel being sold or distributed.
(2) For the purposes of this section and RCW 82.08.955 ((and
82.12.955)), the following definitions apply:
(a) (("Biodiesel fuel" means a mono alkyl ester of long chain fatty
acids derived from vegetable oils or animal fats for use in
compression-ignition engines and that meets the requirements of the
American society of testing and materials specification D 6751 in
effect as of January 1, 2003.)) "Alcohol fuel," "biodiesel fuel," and "wood biomass fuel"
have the same meanings as provided in RCW 82.29A.135.
(b) "Alcohol fuel" means any alcohol made from a product other than
petroleum or natural gas, which is used alone or in combination with
gasoline or other petroleum products for use as a fuel for motor
vehicles, farm implements and machines, or implements of husbandry.
(c)
(b) "Distribution" means any of the actions specified in RCW
82.36.020(2).
(((3) This section expires July 1, 2009.))
Sec. 205 RCW 82.08.955 and 2003 c 63 s 2 are each amended to read
as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of
machinery and equipment, or to services rendered in respect to
constructing structures, installing, constructing, repairing, cleaning,
decorating, altering, or improving of structures or machinery and
equipment, or to sales of tangible personal property that becomes an
ingredient or component of structures or machinery and equipment, if
the machinery, equipment, or structure is used directly for the retail
sale of a biodiesel blend, wood biomass fuel blend, or alcohol fuel
blend. Structures and machinery and equipment that are used for the
retail sale of a biodiesel blend, wood biomass fuel blend, or alcohol
fuel blend and for other purposes are exempt only on the portion used
directly for the retail sale of a biodiesel blend, wood biomass fuel
blend, or alcohol fuel blend.
(2) The tax levied by RCW 82.08.020 does not apply to sales of fuel
delivery vehicles or to sales of or charges made for labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the vehicles including repair parts and replacement parts if
at least seventy-five percent of the fuel distributed by the vehicles
is a biodiesel blend, wood biomass fuel blend, or alcohol fuel blend.
(3) A person taking the exemption under this section must keep
records necessary for the department to verify eligibility under this
section. 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 shall retain a copy of the certificate for
the seller's files.
(4) For the purposes of this section, the definitions in RCW
((82.04.4334)) 82.29A.135 and this subsection apply.
(a) "Alcohol fuel blend" means fuel that contains at least eighty-five percent alcohol fuel by volume.
(b) "Biodiesel blend" means fuel that contains at least twenty
percent biodiesel fuel by volume.
(c) "Machinery and equipment" means industrial fixtures, devices,
and support facilities and tangible personal property that becomes an
ingredient or component thereof, including repair parts and replacement
parts that are integral and necessary for the delivery of biodiesel or
alcohol fuel blends into the fuel tank of a motor vehicle.
(((5) This section expires July 1, 2009.))
(d) "Wood biomass fuel blend" means fuel that contains at least
twenty percent wood biomass fuel by volume.
Sec. 206 RCW 82.08.02567 and 2004 c 152 s 1 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of
machinery and equipment used directly in generating electricity using
fuel cells, wind, sun, or landfill gas as the principal source of
power, or to sales of or charges made for labor and services rendered
in respect to installing such machinery and equipment, but only if the
purchaser develops with such machinery, equipment, and labor a facility
capable of generating not less than two hundred watts of electricity
and provides the seller with an exemption certificate in a form and
manner prescribed by the department. The seller shall retain a copy of
the certificate for the seller's files.
(2) For purposes of this section ((and RCW 82.12.02567)):
(a) "Landfill gas" means biomass fuel of the type qualified for
federal tax credits under 26 U.S.C. Sec. 29 collected from a landfill.
"Landfill" means a landfill as defined under RCW 70.95.030;
(b) "Machinery and equipment" means ((industrial)) fixtures,
devices, and support facilities that are integral and necessary to the
generation of electricity using fuel cells, wind, sun, or landfill gas
as the principal source of power;
(c) "Machinery and equipment" does not include: (i) Hand-powered
tools; (ii) property with a useful life of less than one year; (iii)
repair parts required to restore machinery and equipment to normal
working order; (iv) replacement parts that do not increase
productivity, improve efficiency, or extend the useful life of
machinery and equipment; (v) buildings; or (vi) building fixtures that
are not integral and necessary to the generation of electricity that
are permanently affixed to and become a physical part of a building;
(d) Machinery and equipment is "used directly" in generating
electricity with fuel cells or by wind energy, solar energy, or
landfill gas power if it provides any part of the process that captures
the energy of the wind, sun, or landfill gas, converts that energy to
electricity, and stores, transforms, or transmits that electricity for
entry into or operation in parallel with electric transmission and
distribution systems;
(e) "Fuel cell" means an electrochemical reaction that generates
electricity by combining atoms of hydrogen and oxygen in the presence
of a catalyst.
(3) This section expires June 30, 2009.
Sec. 207 RCW 82.04.294 and 2005 c 301 s 2 are each amended to
read as follows:
(1) Beginning October 1, 2005, upon every person engaging within
this state in the business of manufacturing solar energy systems using
photovoltaic modules, or ((silicon)) of manufacturing solar grade
silicon to be used exclusively in components of such systems; as to
such persons the amount of tax with respect to such business shall, in
the case of manufacturers, be equal to the value of the product
manufactured, or in the case of processors for hire, be equal to the
gross income of the business, multiplied by the rate of 0.2904 percent.
(2) Beginning October 1, 2005, upon every person engaging within
this state in the business of making sales at wholesale of solar energy
systems using photovoltaic modules, or ((silicon)) of solar grade
silicon to be used exclusively in components of such systems,
manufactured by that person; as to such persons the amount of tax with
respect to such business shall be equal to the gross proceeds of sales
of the solar energy systems using photovoltaic modules, or of the solar
grade silicon to be used exclusively in components of such systems,
multiplied by the rate of 0.2904 percent.
(3) The definitions in this subsection apply throughout this
section.
(a) "Module" means the smallest nondivisible self-contained
physical structure housing interconnected photovoltaic cells and
providing a single direct current electrical output.
(b) "Photovoltaic cell" means a device that converts light directly
into electricity without moving parts.
(c) "Solar energy system" means any device or combination of
devices or elements that rely upon direct sunlight as an energy source
for use in the generation of electricity.
(d) "Solar grade silicon" means high-purity silicon used
exclusively in components of solar energy systems using photovoltaic
modules to capture direct sunlight. "Solar grade silicon" does not
include silicon used in semiconductors.
(4) This section expires June 30, 2014.
NEW SECTION. Sec. 208 The following acts or parts of acts are
each repealed:
(1) RCW 84.36.640 (Property used for the manufacture of wood
biomass fuel) and 2003 c 339 s 9;
(2) RCW 82.04.4335 (Deductions -- Sale or distribution of wood
biomass fuel) and 2003 c 339 s 12; and
(3) RCW 82.08.960 (Sales of machinery, equipment, vehicles, and
services related to wood biomass fuel blend) and 2003 c 339 s 13.
Sec. 301 RCW 82.04.180 and 2003 1st sp.s. c 13 s 11 are each
amended to read as follows:
(1) "Successor" means:
(a) Any person to whom a taxpayer quitting, selling out,
exchanging, or disposing of a business sells or otherwise conveys,
directly or indirectly, in bulk and not in the ordinary course of the
taxpayer's business, more than fifty percent of the fair market value
of either the (i) tangible ((assets)) personal property or (ii)
intangible ((assets)) personal property of the taxpayer; or
(b) A surviving corporation of a statutory merger.
(2) Any person obligated to fulfill the terms of a contract shall
be deemed a successor to any contractor defaulting in the performance
of any contract as to which such person is a surety or guarantor.
Sec. 302 RCW 82.32.140 and 2003 1st sp.s. c 13 s 12 are each
amended to read as follows:
(1) Whenever any taxpayer quits business, or sells out, exchanges,
or otherwise disposes of more than fifty percent of the fair market
value of either its tangible or intangible ((assets)) personal
property, any tax payable hereunder shall become immediately due and
payable, and such taxpayer shall, within ten days thereafter, make a
return and pay the tax due.
(2) Any person who becomes a successor shall withhold from the
purchase price a sum sufficient to pay any tax due from the taxpayer
until such time as the taxpayer shall produce a receipt from the
department of revenue showing payment in full of any tax due or a
certificate that no tax is due. If any tax is not paid by the taxpayer
within ten days from the date of such sale, exchange, or disposal, the
successor shall become liable for the payment of the full amount of
tax. If the fair market value of the ((assets)) tangible or intangible
personal property acquired by a successor is less than fifty thousand
dollars, the successor's liability for payment of the unpaid tax is
limited to the fair market value of the ((assets)) tangible or
intangible personal property acquired from the taxpayer. The burden of
establishing the fair market value of the ((assets)) tangible or
intangible personal property acquired is on the successor.
(3) The payment of any tax by a successor shall, to the extent
thereof, be deemed a payment upon the purchase price; and if such
payment is greater in amount than the purchase price the amount of the
difference shall become a debt due the successor from the taxpayer.
(4) No successor shall be liable for any tax due from the person
from whom the successor has acquired ((a business or stock of goods))
more than fifty percent of the fair market value of either the person's
tangible or intangible personal property if the successor gives written
notice to the department of revenue of such acquisition and no
assessment is issued by the department of revenue within six months of
receipt of such notice against the former operator of the business and
a copy thereof mailed to the successor.
Sec. 401 RCW 82.04.2908 and 2005 c 514 s 302 are each amended to
read as follows:
(1) Upon every person engaging within this state in the business of
providing room and ((domiciliary care)) authorized services to
residents of a boarding home licensed under chapter 18.20 RCW, the
amount of tax with respect to such business shall be equal to the gross
income of the business, multiplied by the rate of 0.275 percent.
(2) For the purposes of this section, (("domiciliary care" has the
meaning provided in RCW 18.20.020)) "authorized services" means those
services that a boarding home is authorized under chapter 18.20 RCW to
provide to its residents.
Sec. 402 RCW 82.04.4264 and 2005 c 514 s 301 are each amended to
read as follows:
(1) This chapter does not apply to amounts received by a nonprofit
boarding home licensed under chapter 18.20 RCW for providing room and
((domiciliary care)) authorized services to residents of the boarding
home.
(2) As used in this section:
(a) (("Domiciliary care")) "Authorized services" has the meaning
provided in RCW ((18.20.020)) 82.04.2908.
(b) "Nonprofit boarding home" means a boarding home that is
operated as a religious or charitable organization, is exempt from
federal income tax under 26 U.S.C. Sec. 501(c)(3), is incorporated
under chapter 24.03 RCW, is operated as part of a nonprofit hospital,
or is operated as part of a public hospital district.
Sec. 501 RCW 82.04.530 and 2004 c 153 s 410 are each amended to
read as follows:
For purposes of this chapter, a telephone business other than a
mobile telecommunications service provider must calculate gross
proceeds of ((retail)) sales in a manner consistent with the sourcing
rules provided in RCW 82.32.520. The department may adopt rules to
implement this section, including rules that provide a formulary method
of determining gross proceeds that reasonably approximates the taxable
activity of a telephone business.
Sec. 502 RCW 82.14B.020 and 2002 c 341 s 7 are each amended to
read as follows:
As used in this chapter:
(1) "Emergency services communication system" means a multicounty,
countywide, or districtwide radio or landline communications network,
including an enhanced 911 telephone system, which provides rapid public
access for coordinated dispatching of services, personnel, equipment,
and facilities for police, fire, medical, or other emergency services.
(2) "Enhanced 911 telephone system" means a public telephone system
consisting of a network, data base, and on-premises equipment that is
accessed by dialing 911 and that enables reporting police, fire,
medical, or other emergency situations to a public safety answering
point. The system includes the capability to selectively route
incoming 911 calls to the appropriate public safety answering point
that operates in a defined 911 service area and the capability to
automatically display the name, address, and telephone number of
incoming 911 calls at the appropriate public safety answering point.
(3) "Switched access line" means the telephone service line which
connects a subscriber's main telephone(s) or equivalent main
telephone(s) to the local exchange company's switching office.
(4) "Local exchange company" has the meaning ascribed to it in RCW
80.04.010.
(5) "Radio access line" means the telephone number assigned to or
used by a subscriber for two-way local wireless voice service available
to the public for hire from a radio communications service company.
Radio access lines include, but are not limited to, radio-telephone
communications lines used in cellular telephone service, personal
communications services, and network radio access lines, or their
functional and competitive equivalent. Radio access lines do not
include lines that provide access to one-way signaling service, such as
paging service, or to communications channels suitable only for data
transmission, or to nonlocal radio access line service, such as
wireless roaming service, or to a private telecommunications system.
(6) "Radio communications service company" has the meaning ascribed
to it in RCW 80.04.010, except that it does not include radio paging
providers. It does include those persons or entities that provide
commercial mobile radio services, as defined by 47 U.S.C. Sec.
332(d)(1), and both facilities-based and nonfacilities-based resellers.
(7) "Private telecommunications system" has the meaning ascribed to
it in RCW 80.04.010.
(8) "Subscriber" means the retail purchaser of telephone service as
telephone service is defined in RCW 82.04.065(3).
(9) "Place of primary use" has the meaning ascribed to it in ((the
federal mobile telecommunications sourcing act, P.L. 106-252)) RCW
82.04.065.
Sec. 503 RCW 82.14B.030 and 2002 c 341 s 8 and 2002 c 67 s 8 are
each reenacted and amended to read as follows:
(1) The legislative authority of a county may impose a county
enhanced 911 excise tax on the use of switched access lines in an
amount not exceeding fifty cents per month for each switched access
line. The amount of tax shall be uniform for each switched access
line. Each county shall provide notice of such tax to all local
exchange companies serving in the county at least sixty days in advance
of the date on which the first payment is due.
(2) The legislative authority of a county may also impose a county
enhanced 911 excise tax on the use of radio access lines whose place of
primary use is located within the county in an amount not exceeding
fifty cents per month for each radio access line. The amount of tax
shall be uniform for each radio access line. ((The location of a radio
access line is the customer's place of primary use as defined in RCW
82.04.065.)) The county shall provide notice of such tax to all radio
communications service companies serving in the county at least sixty
days in advance of the date on which the first payment is due. Any
county imposing this tax shall include in its ordinance a refund
mechanism whereby the amount of any tax ordered to be refunded by the
judgment of a court of record, or as a result of the resolution of any
appeal therefrom, shall be refunded to the radio communications service
company or local exchange company that collected the tax, and those
companies shall reimburse the subscribers who paid the tax. The
ordinance shall further provide that to the extent the subscribers who
paid the tax cannot be identified or located, the tax paid by those
subscribers shall be returned to the county.
(3) A state enhanced 911 excise tax is imposed on all switched
access lines in the state. The amount of tax shall not exceed twenty
cents per month for each switched access line. The tax shall be
uniform for each switched access line. The tax imposed under this
subsection shall be remitted to the department of revenue by local
exchange companies on a tax return provided by the department. Tax
proceeds shall be deposited by the treasurer in the enhanced 911
account created in RCW 38.52.540.
(4) A state enhanced 911 excise tax is imposed on all radio access
lines whose place of primary use is located within the state in an
amount of twenty cents per month for each radio access line. The tax
shall be uniform for each radio access line. The tax imposed under
this section shall be remitted to the department of revenue by radio
communications service companies, including those companies that resell
radio access lines, on a tax return provided by the department. Tax
proceeds shall be deposited by the treasurer in the enhanced 911
account created in RCW 38.52.540. The tax imposed under this section
is not subject to the state sales and use tax or any local tax.
(5) By August 31st of each year the state enhanced 911 coordinator
shall recommend the level for the next year of the state enhanced 911
excise tax imposed by subsection (3) of this section, based on a
systematic cost and revenue analysis, to the utilities and
transportation commission. The commission shall by the following
October 31st determine the level of the state enhanced 911 excise tax
for the following year.
Sec. 504 RCW 82.32.520 and 2004 c 153 s 403 are each amended to
read as follows:
(1) Except for the defined telecommunications services listed in
this section, the sale of telephone service as defined in RCW 82.04.065
sold on a call-by-call basis shall be sourced to (a) each level of
taxing jurisdiction where the call originates and terminates in that
jurisdiction or (b) each level of taxing jurisdiction where the call
either originates or terminates and in which the service address is
also located.
(2) Except for the defined telecommunications services listed in
this section, a sale of telephone service as defined in RCW 82.04.065
sold on a basis other than a call-by-call basis, is sourced to the
customer's place of primary use.
(3) The sales of telephone service as defined in RCW 82.04.065 that
are listed in this section shall be sourced to each level of taxing
jurisdiction as follows:
(a) A sale of mobile telecommunications services, other than air-ground radiotelephone service and prepaid calling service, is sourced
to the customer's place of primary use as required by RCW 82.08.066.
(b) A sale of postpaid calling service is sourced to the
origination point of the telecommunications signal as first identified
by either (i) the seller's telecommunications system, or (ii)
information received by the seller from its service provider, where the
system used to transport such signals is not that of the seller.
(c) A sale of prepaid calling service is sourced as follows:
(i) When a prepaid calling service is received by the purchaser at
a business location of the seller, the sale is sourced to that business
location;
(ii) When a prepaid calling service is not received by the
purchaser at a business location of the seller, the sale is sourced to
the location where receipt by the purchaser or the purchaser's donee,
designated as such by the purchaser, occurs, including the location
indicated by instructions for delivery to the purchaser or donee, known
to the seller;
(iii) When (c)(i) and (ii) of this subsection do not apply, the
sale is sourced to the location indicated by an address for the
purchaser that is available from the business records of the seller
that are maintained in the ordinary course of the seller's business
when use of this address does not constitute bad faith;
(iv) When (c)(i), (ii), and (iii) of this subsection do not apply,
the sale is sourced to the location indicated by an address for the
purchaser obtained during the consummation of the sale, including the
address of a purchaser's payment instrument, if no other address is
available, when use of this address does not constitute bad faith;
(v) When (c)(i), (ii), (iii), and (iv) of this subsection do not
apply, including the circumstance where the seller is without
sufficient information to apply those provisions, then the location
shall be determined by the address from which tangible personal
property was shipped, from which the digital good or the computer
software delivered electronically was first available for transmission
by the seller, or from which the service defined as a retail sale under
RCW 82.04.050 was provided, disregarding for these purposes any
location that merely provided the digital transfer of the product sold;
(vi) In the case of a sale of mobile telecommunications service
that is a prepaid telecommunications service, (c)(v) of this subsection
shall include as an option the location associated with the mobile
telephone number.
(d) A sale of a private communication service is sourced as
follows:
(i) Service for a separate charge related to a customer channel
termination point is sourced to each level of jurisdiction in which
such customer channel termination point is located.
(ii) Service where all customer termination points are located
entirely within one jurisdiction or levels of jurisdiction is sourced
in such jurisdiction in which the customer channel termination points
are located.
(iii) Service for segments of a channel between two customer
channel termination points located in different jurisdictions and which
segment of channel are separately charged is sourced fifty percent in
each level of jurisdiction in which the customer channel termination
points are located.
(iv) Service for segments of a channel located in more than one
jurisdiction or levels of jurisdiction and which segments are not
separately billed is sourced in each jurisdiction based on the
percentage determined by dividing the number of customer channel
termination points in the jurisdiction by the total number of customer
channel termination points.
(4) The definitions in this subsection apply throughout this
chapter.
(a) "Air-ground radiotelephone service" means air-ground radio
service, as defined in 47 C.F.R. Sec. 22.99, as amended or renumbered
as of January 1, 2003, in which common carriers are authorized to offer
and provide radio telecommunications service for hire to subscribers in
aircraft.
(b) "Call-by-call basis" means any method of charging for
telecommunications services where the price is measured by individual
calls.
(c) "Communications channel" means a physical or virtual path of
communications over which signals are transmitted between or among
customer channel termination points.
(d) "Customer" means the person or entity that contracts with the
seller of telecommunications services. If the end user of
telecommunications services is not the contracting party, the end user
of the telecommunications service is the customer of the
telecommunications service. "Customer" does not include a reseller of
telecommunications service or for mobile telecommunications service of
a serving carrier under an agreement to serve the customer outside the
home service provider's licensed service area.
(e) "Customer channel termination point" means the location where
the customer either inputs or receives the communications.
(f) "End user" means the person who uses the telecommunications
service. In the case of an entity, the term end user means the
individual who uses the service on behalf of the entity.
(g) "Home service provider" means the same as that term is defined
in RCW 82.04.065.
(h) "Mobile telecommunications service" means the same as that term
is defined in RCW 82.04.065.
(i) "Place of primary use" means the street address representative
of where the customer's use of the telecommunications service primarily
occurs, which must be the residential street address or the primary
business street address of the customer. In the case of mobile
telecommunications services, "place of primary use" must be within the
licensed service area of the home service provider.
(j) "Postpaid calling service" means the telecommunications service
obtained by making a payment on a call-by-call basis either through the
use of a credit card or payment mechanism such as a bank card, travel
card, credit card, or debit card, or by charge made to ((which)) a
telephone number that is not associated with the origination or
termination of the telecommunications service. A postpaid calling
service includes a telecommunications service that would be a prepaid
calling service except it is not exclusively a telecommunications
service.
(k) "Prepaid calling service" means the right to access exclusively
telecommunications services, which must be paid for in advance and
which enables the origination of calls using an access number and/or
authorization code, whether manually or electronically dialed, and that
is sold in predetermined units or dollars of which the number declines
with use in a known amount.
(l) "Private communication service" means a telecommunications
service that entitles the customer to exclusive or priority use of a
communications channel or group of channels between or among
termination points, regardless of the manner in which such channel or
channels are connected, and includes switching capacity, extension
lines, stations, and any other associated services that are provided in
connection with the use of such channel or channels.
(m) "Service address" means:
(i) The location of the telecommunications equipment to which a
customer's call is charged and from which the call originates or
terminates, regardless of where the call is billed or paid;
(ii) If the location in (m)(i) of this subsection is not known, the
origination point of the signal of the telecommunications services
first identified by either the seller's telecommunications system or in
information received by the seller from its service provider, where the
system used to transport such signals is not that of the seller;
(iii) If the locations in (m)(i) and (ii) of this subsection are
not known, the location of the customer's place of primary use.
Sec. 505 RCW 82.32.555 and 2004 c 76 s 1 are each amended to read
as follows:
If a taxing jurisdiction does not subject some charges for
telephone services to taxation, but these charges are aggregated with
and not separately stated from charges that are subject to taxation,
then the charges for nontaxable telephone services may be subject to
taxation unless the telephone service ((or)) provider can reasonably
identify charges not subject to the tax, charge, or fee from its books
and records that are kept in the regular course of business and for
purposes other than merely allocating the sales price of an aggregated
charge to the individually aggregated items.
Sec. 506 RCW 34.05.030 and 2002 c 354 s 225 are each amended to
read as follows:
(1) This chapter shall not apply to:
(a) The state militia, or
(b) The board of clemency and pardons, or
(c) The department of corrections or the indeterminate sentencing
review board with respect to persons who are in their custody or are
subject to the jurisdiction of those agencies.
(2) The provisions of RCW 34.05.410 through 34.05.598 shall not
apply:
(a) To adjudicative proceedings of the board of industrial
insurance appeals except as provided in RCW 7.68.110 and 51.48.131;
(b) Except for actions pursuant to chapter 46.29 RCW, to the
denial, suspension, or revocation of a driver's license by the
department of licensing;
(c) To the department of labor and industries where another statute
expressly provides for review of adjudicative proceedings of a
department action, order, decision, or award before the board of
industrial insurance appeals;
(d) To actions of the Washington personnel resources board or the
director of personnel; or
(e) To the extent they are inconsistent with any provisions of
chapter 43.43 RCW.
(3) Unless a party makes an election for a formal hearing pursuant
to RCW 82.03.140 or 82.03.190, RCW 34.05.410 through 34.05.598 do not
apply to a review hearing conducted by the board of tax appeals.
(4) The rule-making provisions of this chapter do not apply to:
(a) Reimbursement unit values, fee schedules, arithmetic conversion
factors, and similar arithmetic factors used to determine payment rates
that apply to goods and services purchased under contract for clients
eligible under chapter 74.09 RCW; and
(b) Determinations by the department of revenue under RCW
43.20A.725 and 80.36.430 of the amount of telecommunications relay
service excise tax and telephone assistance excise tax, to be placed on
each switched access line.
(5) All other agencies, whether or not formerly specifically
excluded from the provisions of all or any part of the Administrative
Procedure Act, shall be subject to the entire act.
Sec. 507 2004 c 153 s 502 (uncodified) is amended to read as
follows:
(1) If a court of competent jurisdiction enters a final judgment on
the merits that is based on federal or state law, is no longer subject
to appeal, and substantially limits or impairs the essential elements
of P.L. 106-252, 4 U.S.C. Secs. 116 through 126, or chapter 67, Laws of
2002, then chapter 67, Laws of 2002 is null and void in its entirety.
(2) If the contingency in subsection (1) of this section occurs,
section 502, chapter 168, Laws of 2003 is null and void.
(3) If the contingency in subsection (1) of this section occurs,
section 410, chapter 153, Laws of 2004 is null and void.
(4) If the contingency in subsection (1) of this section occurs,
section 111, chapter 514, Laws of 2005 is null and void.
(5) If the contingency in subsection (1) of this section occurs,
sections 501 and 503, chapter ..., Laws of 2006 (sections 501 and 503
of this act) are null and void.
Sec. 601 RCW 82.14.055 and 2003 c 168 s 206 are each amended to
read as follows:
(1) Except as provided in subsections (2), (3), and (4) of this
section or any other statute, a local ((sales and use)) tax change
shall take effect (a) no sooner than seventy-five days after the
department receives notice of the change and (b) only on the first day
of January, April, July, or October.
(2) In the case of a local ((sales and use)) tax that is a credit
against the state sales tax or use tax, a local ((sales and use)) tax
change shall take effect (a) no sooner than thirty days after the
department receives notice of the change and (b) only on the first day
of a month.
(3)(a) A local ((sales and use)) tax rate increase imposed on
services applies to the first billing period starting on or after the
effective date of the increase.
(b) A local ((sales and use)) tax rate decrease imposed on services
applies to bills rendered on or after the effective date of the
decrease.
(c) For the purposes of this subsection (3), "services" means
retail services such as installing and constructing and retail services
such as telecommunications, but does not include services such as
tattooing.
(4) For the purposes of this section, the following definitions
apply:
(a) "Local government" means any city, town, county, or any other
municipal corporation, quasi-municipal corporation, or other political
subdivision authorized to impose taxes, fees, or charges.
(b) "Local ((sales and use)) tax change" means enactment or
revision, including changes resulting from referendum or annexation,
of:
(i) Local sales and use taxes authorized under this chapter or any
other statute((, including changes resulting from referendum or
annexation)); or
(ii) Any other tax, fee, or charge imposed by a local government
that the department is required to collect on behalf of the local
government, including any tax, fee, or charge imposed under this title
or Title 35, 36, or 67 RCW.
Sec. 602 RCW 82.14.030 and 1989 c 384 s 6 are each amended to
read as follows:
(1) The governing body of any county or city while not required by
legislative mandate to do so, may, by resolution or ordinance for the
purposes authorized by this chapter, ((fix and)) impose a sales and use
tax in accordance with the terms of this chapter. Such tax shall be
collected from those persons who are taxable by the state ((pursuant
to)) under chapters 82.08 and 82.12 RCW, upon the occurrence of any
taxable event within the county or city as the case may be((:
PROVIDED, That)). Except as provided in RCW 82.14.230, this sales and
use tax shall not apply to natural or manufactured gas. The rate of
such tax imposed by a county shall be five-tenths of one percent ((of
the selling price (in the case of a sales tax) or value of the article
used (in the case of a use tax))). The rate of such tax imposed by a
city shall not exceed five-tenths of one percent ((of the selling price
(in the case of a sales tax) or value of the article used (in the case
of a use tax): PROVIDED, HOWEVER, That)). However, in the event a
county ((shall impose)) imposes a sales and use tax under this
subsection, the rate of such tax imposed under this subsection by any
city therein shall not exceed four hundred and twenty-five one-thousandths of one percent.
(2) ((Subject to the enactment into law of the 1982 amendment to
RCW 82.02.020 by section 5, chapter 49, Laws of 1982 1st ex. sess.,))
In addition to the tax authorized in subsection (1) of this section,
the governing body of any county or city may by resolution or ordinance
impose an additional sales and use tax in accordance with the terms of
this chapter. Such additional tax shall be collected upon the same
taxable events upon which the tax imposed under subsection (1) of this
section is ((levied)) imposed. The rate of such additional tax imposed
by a county shall be up to five-tenths of one percent ((of the selling
price (in the case of a sales tax) or value of the article used (in the
case of a use tax))). The rate of such additional tax imposed by a
city shall be up to five-tenths of one percent ((of the selling price
(in the case of a sales tax) or value of the article used (in the case
of a use tax): PROVIDED HOWEVER, That)). However, in the event a
county ((shall)) imposes a sales and use tax under the authority of
this subsection at a rate equal to or greater than the rate imposed
under the authority of this subsection by a city within the county, the
county shall receive fifteen percent of the city tax((: PROVIDED
FURTHER, That)). In the event that the county ((shall impose)) imposes
a sales and use tax under the authority of this subsection at a rate
which is less than the rate imposed under this subsection by a city
within the county, the county shall receive that amount of revenues
from the city tax equal to fifteen percent of the rate of tax imposed
by the county under the authority of this subsection. The authority to
impose a tax under this subsection is intended in part to compensate
local government for any losses from the phase-out of the property tax
on business inventories.
(3) The rate of sales and use tax imposed by a city under the
authority of subsections (1) and (2) of this section may be altered
pursuant to a government service agreement as provided in RCW
36.115.040 and 36.115.050.
(4) The percentage of a city's sales and use tax receipts that a
county receives under the authority of subsections (1) and (2) of this
section may be altered pursuant to a government service agreement as
provided in RCW 36.115.040 and 36.115.050.
Sec. 603 RCW 82.14.045 and 2001 c 89 s 3 are each amended to read
as follows:
(1) The legislative body of any city pursuant to RCW 35.92.060, of
any county which has created an unincorporated transportation benefit
area pursuant to RCW 36.57.100 and 36.57.110, of any public
transportation benefit area pursuant to RCW 36.57A.080 and 36.57A.090,
of any county transportation authority established pursuant to chapter
36.57 RCW, and of any metropolitan municipal corporation within a
county with a population of one million or more pursuant to chapter
35.58 RCW, may, by resolution or ordinance for the sole purpose of
providing funds for the operation, maintenance, or capital needs of
public transportation systems or public transportation limited to
persons with special needs under RCW 36.57.130 and 36.57A.180, and in
lieu of the excise taxes authorized by RCW 35.95.040, submit an
authorizing proposition to the voters or include such authorization in
a proposition to perform the function of public transportation or
public transportation limited to persons with special needs under RCW
36.57.130 and 36.57A.180, and if approved by a majority of persons
voting thereon, ((fix and)) impose a sales and use tax in accordance
with the terms of this chapter((: PROVIDED, That no such legislative
body shall impose such a sales and use tax without submitting such an
authorizing proposition to the voters and obtaining the approval of a
majority of persons voting thereon: PROVIDED FURTHER, That)). Where
((such a)) an authorizing proposition is submitted by a county on
behalf of an unincorporated transportation benefit area, it shall be
voted upon by the voters residing within the boundaries of such
unincorporated transportation benefit area and, if approved, the sales
and use tax shall be imposed only within such area. Notwithstanding
any provisions of this section to the contrary, any county in which a
county public transportation plan has been adopted pursuant to RCW
36.57.070 and the voters of such county have authorized the imposition
of a sales and use tax pursuant to the provisions of section 10,
chapter 167, Laws of 1974 ex. sess., prior to July 1, 1975, shall be
authorized to ((fix and)) impose a sales and use tax as provided in
this section at not to exceed the rate so authorized without additional
approval of the voters of such county as otherwise required by this
section.
The tax authorized ((pursuant to)) by this section shall be in
addition to the tax authorized by RCW 82.14.030 and shall be collected
from those persons who are taxable by the state ((pursuant to)) under
chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event
within such city, public transportation benefit area, county, or
metropolitan municipal corporation as the case may be. The rate of
such tax shall be one-tenth, two-tenths, three-tenths, four-tenths,
five-tenths, six-tenths, seven-tenths, eight-tenths, or nine-tenths of
one percent ((of the selling price (in the case of a sales tax) or
value of the article used (in the case of a use tax))). The rate of
such tax shall not exceed the rate authorized by the voters unless such
increase shall be similarly approved.
(2)(a) In the event a metropolitan municipal corporation ((shall))
imposes a sales and use tax pursuant to this chapter no city, county
which has created an unincorporated transportation benefit area, public
transportation benefit area authority, or county transportation
authority wholly within such metropolitan municipal corporation shall
be empowered to ((levy)) impose and/or collect taxes ((pursuant to))
under RCW ((35.58.273,)) 35.95.040((, and/or 82.14.045)) or this
section, but nothing herein shall prevent such city or county from
imposing sales and use taxes pursuant to any other authorization.
(b) In the event a county transportation authority ((shall))
imposes a sales and use tax ((pursuant to)) under this section, no
city, county which has created an unincorporated transportation benefit
area, public transportation benefit area, or metropolitan municipal
corporation, located within the territory of the authority, shall be
empowered to ((levy)) impose or collect taxes ((pursuant to)) under RCW
((35.58.273,)) 35.95.040((,)) or ((82.14.045)) this section.
(c) In the event a public transportation benefit area ((shall))
imposes a sales and use tax ((pursuant to)) under this section, no
city, county which has created an unincorporated transportation benefit
area, or metropolitan municipal corporation, located wholly or partly
within the territory of the public transportation benefit area, shall
be empowered to ((levy)) impose or collect taxes ((pursuant to)) under
RCW ((35.58.273,)) 35.95.040((,)) or ((82.14.045)) this section.
(((3) Any local sales and use tax revenue collected pursuant to
this section by any city or by any county for transportation purposes
pursuant to RCW 36.57.100 and 36.57.110 shall not be counted as locally
generated tax revenues for the purposes of apportionment and
distribution, in the manner prescribed by chapter 82.44 RCW, of the
proceeds of the motor vehicle excise tax authorized pursuant to RCW
35.58.273, except that the local sales and use tax revenue collected
under this section by a city with a population greater than sixty
thousand that as of January 1, 1998, owns and operates a municipal
public transportation system shall be counted as locally generated tax
revenues for the purposes of apportionment and distribution, in the
manner prescribed by chapter 82.44 RCW, of the proceeds of the motor
vehicle excise tax authorized under RCW 35.58.273 as follows:))
(a) For fiscal year 2000, revenues collected under this section
shall be counted as locally generated tax revenues for up to 25 percent
of the tax collected under RCW 35.58.273;
(b) For fiscal year 2001, revenues collected under this section
shall be counted as locally generated tax revenues for up to 50 percent
of the tax collected under RCW 35.58.273;
(c) For fiscal year 2002, revenues collected under this section
shall be counted as locally generated tax revenues for up to 75 percent
of the tax collected under RCW 35.58.273; and
(d) For fiscal year 2003 and thereafter, revenues collected under
this section shall be counted as locally generated tax revenues for up
to 100 percent of the tax collected under RCW 35.58.273.
Sec. 604 RCW 82.14.048 and 1999 c 165 s 12 are each amended to
read as follows:
(1) The governing board of a public facilities district under
chapter 36.100 or 35.57 RCW may submit an authorizing proposition to
the voters of the district, and if the proposition is approved by a
majority of persons voting, ((fix and)) impose a sales and use tax in
accordance with the terms of this chapter.
(2) The tax authorized in this section shall be in addition to any
other taxes authorized by law and shall be collected from those persons
who are taxable by the state under chapters 82.08 and 82.12 RCW upon
the occurrence of any taxable event within the public facilities
district. The rate of tax shall not exceed two-tenths of one percent
((of the selling price in the case of a sales tax, or value of the
article used, in the case of a use tax)).
(3) Moneys received from any tax imposed under this section shall
be used for the purpose of providing funds for the costs associated
with the financing, design, acquisition, construction, equipping,
operating, maintaining, remodeling, repairing, and reequipping of its
public facilities.
((No tax may be collected under this section by a public facilities
district under chapter 35.57 RCW before August 1, 2000, and no tax in
excess of one-tenth of one percent may be collected under this section
by a public facilities district under chapter 36.100 RCW before August
1, 2000.))
Sec. 605 RCW 82.14.0485 and 1995 3rd sp.s. c 1 s 101 are each
amended to read as follows:
(1) The legislative authority of a county with a population of one
million or more may impose a sales and use tax in accordance with the
terms of this chapter. The tax is in addition to other taxes
authorized by law and shall be collected from those persons who are
taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of any taxable event within the county. The rate of tax
shall not exceed 0.017 percent ((of the selling price in the case of a
sales tax or value of the article used in the case of a use tax)).
(2) The tax ((imposed)) authorized under subsection (1) of this
section ((shall be deducted from the amount of tax otherwise required
to be collected or paid over to the department of revenue)) is a credit
against the state tax under chapter 82.08 or 82.12 RCW. The department
of revenue shall perform the collection of such taxes on behalf of the
county at no cost to the county and shall remit the tax to the county
as provided in RCW 82.14.060.
(3) Moneys collected under the authority of this section shall only
be used for the purpose of paying the principal and interest payments
on bonds issued by a county to construct a baseball stadium.
(4) No tax may be collected under the authority of this section
before January 1, 1996, and no tax may be collected under this section
unless the taxes under RCW 82.14.360 are being collected. The tax
((imposed in)) authorized under this section shall expire when the
bonds issued for the construction of the baseball stadium are retired,
but not more than twenty years after the tax is first collected.
(5) As used in this section, "baseball stadium" means a baseball
stadium with natural turf and a retractable roof or canopy, together
with associated parking facilities, constructed in the largest city in
a county with a population of one million or more.
Sec. 606 RCW 82.14.049 and 1997 c 220 s 502 are each amended to
read as follows:
(1) The legislative authority of any county may impose a sales and
use tax, in addition to the tax authorized by RCW 82.14.030, upon
retail car rentals within the county that are taxable by the state
under chapters 82.08 and 82.12 RCW. The rate of tax shall be one
percent ((of the selling price in the case of a sales tax or rental
value of the vehicle in the case of a use tax)). Proceeds of the tax
shall not be used to subsidize any professional sports team and shall
be used solely for the following purposes:
(((1))) (a) Acquiring, constructing, maintaining, or operating
public sports stadium facilities;
(((2))) (b) Engineering, planning, financial, legal, or
professional services incidental to public sports stadium facilities;
(((3))) (c) Youth or amateur sport activities or facilities; or
(((4))) (d) Debt or refinancing debt issued for the purposes of (a)
of this subsection (((1) of this section)).
(2) At least seventy-five percent of the tax ((imposed)) authorized
under this section shall be used for the purposes of ((subsections))
subsection (1)((, (2), and (4))) of this section.
Sec. 607 RCW 82.14.0494 and 1997 c 220 s 204 are each amended to
read as follows:
(1) The legislative authority of a county that has created a public
stadium authority to develop a stadium and exhibition center under RCW
36.102.050 may impose a sales and use tax in accordance with this
chapter. The tax is in addition to other taxes authorized by law and
shall be collected from those persons who are taxable by the state
under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable
event within the county. The rate of tax shall be 0.016 percent ((of
the selling price in the case of a sales tax or value of the article
used in the case of a use tax)).
(2) The tax ((imposed)) authorized under subsection (1) of this
section ((shall be deducted from the amount of tax otherwise required
to be collected or paid over to the department of revenue)) is a credit
against the state tax under chapter 82.08 or 82.12 RCW. The department
of revenue shall perform the collection of such taxes on behalf of the
county at no cost to the county and shall remit the tax to the county
as provided in RCW 82.14.060.
(3) Before the issuance of bonds in RCW 43.99N.020, all revenues
collected on behalf of the county under the authority of this section
shall be transferred to the public stadium authority. After bonds are
issued under RCW 43.99N.020, all revenues collected on behalf of the
county under the authority of this section shall be deposited in the
stadium and exhibition center account under RCW 43.99N.060.
(4) The definitions in RCW 36.102.010 apply to this section.
(5) This section expires on the earliest of the following dates:
(a) December 31, 1999, if the conditions for issuance of bonds
under RCW 43.99N.020 have not been met before that date;
(b) The date on which all bonds issued under RCW 43.99N.020 have
been retired; or
(c) Twenty-three years after the date the tax authorized under this
section is first imposed.
Sec. 608 RCW 82.14.010 and 1970 ex.s. c 94 s 1 are each amended
to read as follows:
(1) The legislature finds that the several counties and cities of
the state lack adequate sources of revenue to carry out essential
county and municipal purposes. The legislature further finds that the
most efficient and appropriate methods of deriving revenues for such
purposes is to vest additional taxing powers in the governing bodies of
counties and cities which they may or may not implement. The
legislature intends, by enacting this chapter, to provide the means by
which essential county and municipal purposes can be financially served
should they choose to employ them.
(2) It is the intent of this chapter that any local sales and use
tax adopted under the authority of this chapter be identical to the
state sales and use tax, unless otherwise prohibited by federal law,
and with other local sales and use taxes adopted under the authority of
this chapter. It is further the intent of this chapter that the local
sales and use tax shall be imposed upon an individual taxable event
simultaneously with the imposition of the state sales or use tax upon
the same taxable event. The rule-making powers of the department
contained in RCW 82.08.060 and 82.32.300 are applicable to this
chapter.
Sec. 609 RCW 82.14.310 and 2005 c 282 s 49 are each amended to
read as follows:
(1) The county criminal justice assistance account is created in
the state treasury. Beginning in fiscal year 2000, the state treasurer
shall transfer into the county criminal justice assistance account from
the general fund the sum of twenty-three million two hundred thousand
dollars divided into four equal deposits occurring on July 1, October
1, January 1, and April 1. For each fiscal year thereafter, the state
treasurer shall increase the total transfer by the fiscal growth
factor, as defined in RCW 43.135.025, forecast for that fiscal year by
the office of financial management in November of the preceding year.
(2) The moneys deposited in the county criminal justice assistance
account for distribution under this section, less any moneys
appropriated for purposes under subsection (4) of this section, shall
be distributed ((at such times as distributions are made under RCW
82.44.150)) quarterly during the months of January, April, July, and
October and on the relative basis of each county's funding factor as
determined under this subsection.
(a) A county's funding factor is the sum of:
(i) The population of the county, divided by one thousand, and
multiplied by two-tenths;
(ii) The crime rate of the county, multiplied by three-tenths; and
(iii) The annual number of criminal cases filed in the county
superior court, for each one thousand in population, multiplied by
five-tenths.
(b) Under this section and RCW 82.14.320 and 82.14.330:
(i) The population of the county or city shall be as last
determined by the office of financial management;
(ii) The crime rate of the county or city is the annual occurrence
of specified criminal offenses, as calculated in the most recent annual
report on crime in Washington state as published by the Washington
association of sheriffs and police chiefs, for each one thousand in
population;
(iii) The annual number of criminal cases filed in the county
superior court shall be determined by the most recent annual report of
the courts of Washington, as published by the administrative office of
the courts;
(iv) Distributions and eligibility for distributions in the 1989-91
biennium shall be based on 1988 figures for both the crime rate as
described under (ii) of this subsection and the annual number of
criminal cases that are filed as described under (iii) of this
subsection. Future distributions shall be based on the most recent
figures for both the crime rate as described under (ii) of this
subsection and the annual number of criminal cases that are filed as
described under (iii) of this subsection.
(3) Moneys distributed under this section shall be expended
exclusively for criminal justice purposes and shall not be used to
replace or supplant existing funding. Criminal justice purposes are
defined as activities that substantially assist the criminal justice
system, which may include circumstances where ancillary benefit to the
civil or juvenile justice system occurs, and which includes (a)
domestic violence services such as those provided by domestic violence
programs, community advocates, and legal advocates, as defined in RCW
70.123.020, and (b) during the 2001-2003 fiscal biennium, juvenile
dispositional hearings relating to petitions for at-risk youth,
truancy, and children in need of services. Existing funding for
purposes of this subsection is defined as calendar year 1989 actual
operating expenditures for criminal justice purposes. Calendar year
1989 actual operating expenditures for criminal justice purposes
exclude the following: Expenditures for extraordinary events not
likely to reoccur, changes in contract provisions for criminal justice
services, beyond the control of the local jurisdiction receiving the
services, and major nonrecurring capital expenditures.
(4) Not more than five percent of the funds deposited to the county
criminal justice assistance account shall be available for
appropriations for enhancements to the state patrol crime laboratory
system and the continuing costs related to these enhancements. Funds
appropriated from this account for such enhancements shall not supplant
existing funds from the state general fund.
Sec. 610 RCW 82.14.320 and 1998 c 321 s 12 are each amended to
read as follows:
(1) The municipal criminal justice assistance account is created in
the state treasury. Beginning in fiscal year 2000, the state treasurer
shall transfer into the municipal criminal justice assistance account
for distribution under this section from the general fund the sum of
four million six hundred thousand dollars divided into four equal
deposits occurring on July 1, October 1, January 1, and April 1. For
each fiscal year thereafter, the state treasurer shall increase the
total transfer by the fiscal growth factor, as defined in RCW
43.135.025, forecast for that fiscal year by the office of financial
management in November of the preceding year.
(2) No city may receive a distribution under this section from the
municipal criminal justice assistance account unless:
(a) The city has a crime rate in excess of one hundred twenty-five
percent of the statewide average as calculated in the most recent
annual report on crime in Washington state as published by the
Washington association of sheriffs and police chiefs;
(b) The city has levied the tax authorized in RCW 82.14.030(2) at
the maximum rate or the tax authorized in RCW 82.46.010(3) at the
maximum rate; and
(c) The city has a per capita yield from the tax imposed under RCW
82.14.030(1) at the maximum rate of less than one hundred fifty percent
of the statewide average per capita yield for all cities from such
local sales and use tax.
(3) The moneys deposited in the municipal criminal justice
assistance account for distribution under this section, less any moneys
appropriated for purposes under subsection (7) of this section, shall
be distributed ((at such times as distributions are made under RCW
82.44.150)) quarterly during the months of January, April, July, and
October. The distributions shall be made as follows:
(a) Unless reduced by this subsection, thirty percent of the moneys
shall be distributed ratably based on population as last determined by
the office of financial management to those cities eligible under
subsection (2) of this section that have a crime rate determined under
subsection (2)(a) of this section which is greater than one hundred
seventy-five percent of the statewide average crime rate. No city may
receive more than fifty percent of any moneys distributed under this
subsection (a) but, if a city distribution is reduced as a result of
exceeding the fifty percent limitation, the amount not distributed
shall be distributed under (b) of this subsection.
(b) The remainder of the moneys, including any moneys not
distributed in subsection (2)(a) of this section, shall be distributed
to all cities eligible under subsection (2) of this section ratably
based on population as last determined by the office of financial
management.
(4) No city may receive more than thirty percent of all moneys
distributed under subsection (3) of this section.
(5) Notwithstanding other provisions of this section, the
distributions to any city that substantially decriminalizes or repeals
its criminal code after July 1, 1990, and that does not reimburse the
county for costs associated with criminal cases under RCW 3.50.800 or
3.50.805(2), shall be made to the county in which the city is located.
(6) Moneys distributed under this section shall be expended
exclusively for criminal justice purposes and shall not be used to
replace or supplant existing funding. Criminal justice purposes are
defined as activities that substantially assist the criminal justice
system, which may include circumstances where ancillary benefit to the
civil justice system occurs, and which includes domestic violence
services such as those provided by domestic violence programs,
community advocates, and legal advocates, as defined in RCW 70.123.020,
and publications and public educational efforts designed to provide
information and assistance to parents in dealing with runaway or at-risk youth. Existing funding for purposes of this subsection is
defined as calendar year 1989 actual operating expenditures for
criminal justice purposes. Calendar year 1989 actual operating
expenditures for criminal justice purposes exclude the following:
Expenditures for extraordinary events not likely to reoccur, changes in
contract provisions for criminal justice services, beyond the control
of the local jurisdiction receiving the services, and major
nonrecurring capital expenditures.
(7) Not more than five percent of the funds deposited to the
municipal criminal justice assistance account shall be available for
appropriations for enhancements to the state patrol crime laboratory
system and the continuing costs related to these enhancements. Funds
appropriated from this account for such enhancements shall not supplant
existing funds from the state general fund.
Sec. 611 RCW 82.14.330 and 2003 c 90 s 1 are each amended to read
as follows:
(1) Beginning in fiscal year 2000, the state treasurer shall
transfer into the municipal criminal justice assistance account for
distribution under this section from the general fund the sum of four
million six hundred thousand dollars divided into four equal deposits
occurring on July 1, October 1, January 1, and April 1. For each
fiscal year thereafter, the state treasurer shall increase the total
transfer by the fiscal growth factor, as defined in RCW 43.135.025,
forecast for that fiscal year by the office of financial management in
November of the preceding year. The moneys deposited in the municipal
criminal justice assistance account for distribution under this
section, less any moneys appropriated for purposes under subsection (4)
of this section, shall be distributed to the cities of the state as
follows:
(a) Twenty percent appropriated for distribution shall be
distributed to cities with a three-year average violent crime rate for
each one thousand in population in excess of one hundred fifty percent
of the statewide three-year average violent crime rate for each one
thousand in population. The three-year average violent crime rate
shall be calculated using the violent crime rates for each of the
preceding three years from the annual reports on crime in Washington
state as published by the Washington association of sheriffs and police
chiefs. Moneys shall be distributed under this subsection (1)(a)
ratably based on population as last determined by the office of
financial management, but no city may receive more than one dollar per
capita. Moneys remaining undistributed under this subsection at the
end of each calendar year shall be distributed to the criminal justice
training commission to reimburse participating city law enforcement
agencies with ten or fewer full-time commissioned patrol officers the
cost of temporary replacement of each officer who is enrolled in basic
law enforcement training, as provided in RCW 43.101.200.
(b) Sixteen percent shall be distributed to cities ratably based on
population as last determined by the office of financial management,
but no city may receive less than one thousand dollars.
The moneys deposited in the municipal criminal justice assistance
account for distribution under this subsection shall be distributed
((at such times as distributions are made under RCW 82.44.150))
quarterly during the months of January, April, July, and October.
Moneys distributed under this subsection shall be expended
exclusively for criminal justice purposes and shall not be used to
replace or supplant existing funding. Criminal justice purposes are
defined as activities that substantially assist the criminal justice
system, which may include circumstances where ancillary benefit to the
civil justice system occurs, and which includes domestic violence
services such as those provided by domestic violence programs,
community advocates, and legal advocates, as defined in RCW 70.123.020.
Existing funding for purposes of this subsection is defined as calendar
year 1989 actual operating expenditures for criminal justice purposes.
Calendar year 1989 actual operating expenditures for criminal justice
purposes exclude the following: Expenditures for extraordinary events
not likely to reoccur, changes in contract provisions for criminal
justice services, beyond the control of the local jurisdiction
receiving the services, and major nonrecurring capital expenditures.
(2) In addition to the distributions under subsection (1) of this
section:
(a) Ten percent shall be distributed on a per capita basis to
cities that contract with another governmental agency for the majority
of the city's law enforcement services. Cities that subsequently
qualify for this distribution shall notify the department of community,
trade, and economic development by November 30th for the upcoming
calendar year. The department of community, trade, and economic
development shall provide a list of eligible cities to the state
treasurer by December 31st. The state treasurer shall modify the
distribution of these funds in the following year. Cities have the
responsibility to notify the department of community, trade, and
economic development of any changes regarding these contractual
relationships. Adjustments in the distribution formula to add or
delete cities may be made only for the upcoming calendar year; no
adjustments may be made retroactively.
(b) The remaining fifty-four percent shall be distributed to cities
and towns by the state treasurer on a per capita basis. These funds
shall be used for: (i) Innovative law enforcement strategies; (ii)
programs to help at-risk children or child abuse victim response
programs; and (iii) programs designed to reduce the level of domestic
violence or to provide counseling for domestic violence victims.
The moneys deposited in the municipal criminal justice assistance
account for distribution under this subsection, less any moneys
appropriated for purposes under subsection (4) of this section, shall
be distributed ((at the times as distributions are made under RCW
82.44.150)) quarterly during the months of January, April, July, and
October. Moneys remaining undistributed under this subsection at the
end of each calendar year shall be distributed to the criminal justice
training commission to reimburse participating city law enforcement
agencies with ten or fewer full-time commissioned patrol officers the
cost of temporary replacement of each officer who is enrolled in basic
law enforcement training, as provided in RCW 43.101.200.
If a city is found by the state auditor to have expended funds
received under this subsection in a manner that does not comply with
the criteria under which the moneys were received, the city shall be
ineligible to receive future distributions under this subsection until
the use of the moneys are justified to the satisfaction of the director
or are repaid to the state general fund.
(3) Notwithstanding other provisions of this section, the
distributions to any city that substantially decriminalizes or repeals
its criminal code after July 1, 1990, and that does not reimburse the
county for costs associated with criminal cases under RCW 3.50.800 or
3.50.805(2), shall be made to the county in which the city is located.
(4) Not more than five percent of the funds deposited to the
municipal criminal justice assistance account shall be available for
appropriations for enhancements to the state patrol crime laboratory
system and the continuing costs related to these enhancements. Funds
appropriated from this account for such enhancements shall not supplant
existing funds from the state general fund.
Sec. 612 RCW 82.14.340 and 1995 c 309 s 1 are each amended to
read as follows:
(1) The legislative authority of any county may ((fix and)) impose
a sales and use tax in accordance with the terms of this chapter,
provided that such sales and use tax is subject to repeal by
referendum, using the procedures provided in RCW 82.14.036. The
referendum procedure provided in RCW 82.14.036 is the exclusive method
for subjecting any county sales and use tax ordinance or resolution to
a referendum vote.
(2) The tax authorized in this section shall be in addition to any
other taxes authorized by law and shall be collected from those persons
who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW
upon the occurrence of any taxable event within such county. The rate
of tax shall equal one-tenth of one percent ((of the selling price (in
the case of a sales tax) or value of the article used (in the case of
a use tax))).
(3) When distributing moneys collected under the authority of this
section, the state treasurer shall distribute ten percent of the moneys
to the county in which the tax was collected. The remainder of the
moneys collected under the authority of this section shall be
distributed to the county and the cities within the county ratably
based on population as last determined by the office of financial
management. In making the distribution based on population, the county
shall receive that proportion that the unincorporated population of the
county bears to the total population of the county and each city shall
receive that proportion that the city incorporated population bears to
the total county population.
(4) Moneys received from any tax imposed under the authority of
this section shall be expended exclusively for criminal justice
purposes and shall not be used to replace or supplant existing funding.
Criminal justice purposes are defined as activities that substantially
assist the criminal justice system, which may include circumstances
where ancillary benefit to the civil justice system occurs, and which
includes domestic violence services such as those provided by domestic
violence programs, community advocates, and legal advocates, as defined
in RCW 70.123.020. Existing funding for purposes of this subsection is
defined as calendar year 1989 actual operating expenditures for
criminal justice purposes. Calendar year 1989 actual operating
expenditures for criminal justice purposes exclude the following:
Expenditures for extraordinary events not likely to reoccur, changes in
contract provisions for criminal justice services, beyond the control
of the local jurisdiction receiving the services, and major
nonrecurring capital expenditures.
(5) In the expenditure of funds for criminal justice purposes as
provided in this section, cities and counties, or any combination
thereof, are expressly authorized to participate in agreements,
pursuant to chapter 39.34 RCW, to jointly expend funds for criminal
justice purposes of mutual benefit. Such criminal justice purposes of
mutual benefit include, but are not limited to, the construction,
improvement, and expansion of jails, court facilities, and juvenile
justice facilities.
Sec. 613 RCW 82.14.350 and 1995 2nd sp.s. c 10 s 1 are each
amended to read as follows:
(1) A county legislative authority in a county with a population of
less than one million may submit an authorizing proposition to the
county voters, and if the proposition is approved by a majority of
persons voting, ((fix and)) impose a sales and use tax in accordance
with the terms of this chapter for the purposes designated in
subsection (3) of this section.
(2) The tax authorized in this section shall be in addition to any
other taxes authorized by law and shall be collected from those persons
who are taxable by the state under chapters 82.08 and 82.12 RCW upon
the occurrence of any taxable event within the county. The rate of tax
shall equal one-tenth of one percent ((of the selling price in the case
of a sales tax, or value of the article used, in the case of a use
tax)).
(3) Moneys received from any tax imposed under the authority of
this section shall be used solely for the purpose of providing funds
for costs associated with financing, design, acquisition, construction,
equipping, operating, maintaining, remodeling, repairing, reequipping,
and improvement of juvenile detention facilities and jails.
(4) Counties are authorized to develop joint ventures to colocate
juvenile detention facilities and to colocate jails.
Sec. 614 RCW 82.14.360 and 2000 c 103 s 10 are each amended to
read as follows:
(1) The legislative authority of a county with a population of one
million or more may impose a special stadium sales and use tax upon the
retail sale or use within the county by restaurants, taverns, and bars
of food and beverages that are taxable by the state under chapters
82.08 and 82.12 RCW. The rate of the tax shall not exceed five-tenths
of one percent ((of the selling price in the case of a sales tax, or
value of the article used in the case of a use tax)). The tax
((imposed)) authorized under this subsection is in addition to any
other taxes authorized by law and shall not be credited against any
other tax imposed upon the same taxable event. As used in this
section, "restaurant" does not include grocery stores, mini-markets, or
convenience stores.
(2) The legislative authority of a county with a population of one
million or more may impose a special stadium sales and use tax upon
retail car rentals within the county that are taxable by the state
under chapters 82.08 and 82.12 RCW. The rate of the tax shall not
exceed two percent ((of the selling price in the case of a sales tax,
or rental value of the vehicle in the case of a use tax)). The tax
((imposed)) authorized under this subsection is in addition to any
other taxes authorized by law and shall not be credited against any
other tax imposed upon the same taxable event.
(3) The revenue from the taxes imposed under the authority of this
section shall be used for the purpose of principal and interest
payments on bonds, issued by the county, to acquire, construct, own,
remodel, maintain, equip, reequip, repair, and operate a baseball
stadium. Revenues from the taxes authorized in this section may be
used for design and other preconstruction costs of the baseball stadium
until bonds are issued for the baseball stadium. The county shall
issue bonds, in an amount determined to be necessary by the public
facilities district, for the district to acquire, construct, own, and
equip the baseball stadium. The county shall have no obligation to
issue bonds in an amount greater than that which would be supported by
the tax revenues under this section, RCW 82.14.0485, and 36.38.010(4)
(a) and (b). If the revenue from the taxes imposed under the authority
of this section exceeds the amount needed for such principal and
interest payments in any year, the excess shall be used solely:
(a) For early retirement of the bonds issued for the baseball
stadium; and
(b) If the revenue from the taxes imposed under this section
exceeds the amount needed for the purposes in (a) of this subsection in
any year, the excess shall be placed in a contingency fund which may
only be used to pay unanticipated capital costs on the baseball
stadium, excluding any cost overruns on initial construction.
(4) ((The taxes authorized under this section shall not be
collected after June 30, 1997, unless the county executive has
certified to the department of revenue that a professional major league
baseball team has made a binding and legally enforceable contractual
commitment to:)) The proceeds of any bonds issued for the baseball stadium
shall be provided to the district.
(a) Play at least ninety percent of its home games in the stadium
for a period of time not shorter than the term of the bonds issued to
finance the initial construction of the stadium;
(b) Contribute forty-five million dollars toward the reasonably
necessary preconstruction costs including, but not limited to
architectural, engineering, environmental, and legal services, and the
cost of construction of the stadium, or to any associated public
purpose separate from bond-financed property, including without
limitation land acquisition, parking facilities, equipment,
infrastructure, or other similar costs associated with the project,
which contribution shall be made during a term not to exceed the term
of the bonds issued to finance the initial construction of the stadium.
If all or part of the contribution is made after the date of issuance
of the bonds, the team shall contribute an additional amount equal to
the accruing interest on the deferred portion of the contribution,
calculated at the interest rate on the bonds maturing in the year in
which the deferred contribution is made. No part of the contribution
may be made without the consent of the county until a public facilities
district is created under chapter 36.100 RCW to acquire, construct,
own, remodel, maintain, equip, reequip, repair, and operate a baseball
stadium. To the extent possible, contributions shall be structured in
a manner that would allow for the issuance of bonds to construct the
stadium that are exempt from federal income taxes; and
(c) Share a portion of the profits generated by the baseball team
from the operation of the professional franchise for a period of time
equal to the term of the bonds issued to finance the initial
construction of the stadium, after offsetting any losses incurred by
the baseball team after the effective date of chapter 14, Laws of 1995
1st sp. sess. Such profits and the portion to be shared shall be
defined by agreement between the public facilities district and the
baseball team. The shared profits shall be used to retire the bonds
issued to finance the initial construction of the stadium. If the
bonds are retired before the expiration of their term, the shared
profits shall be paid to the public facilities district.
(5) No tax may be collected under this section before January 1,
1996. Before collecting the taxes under this section or issuing bonds
for a baseball stadium, the county shall create a public facilities
district under chapter 36.100 RCW to acquire, construct, own, remodel,
maintain, equip, reequip, repair, and operate a baseball stadium.
(6) The county shall assemble such real property as the district
determines to be necessary as a site for the baseball stadium.
Property which is necessary for this purpose that is owned by the
county on October 17, 1995, shall be contributed to the district, and
property which is necessary for this purpose that is acquired by the
county on or after October 17, 1995, shall be conveyed to the district.
(7)
(((8))) (5) As used in this section, "baseball stadium" means
"baseball stadium" as defined in RCW 82.14.0485.
(((9))) (6) The taxes imposed under the authority of this section
shall expire when the bonds issued for the construction of the baseball
stadium are retired, but not later than twenty years after the taxes
are first collected.
Sec. 615 RCW 82.14.370 and 2004 c 130 s 2 are each amended to
read as follows:
(1) The legislative authority of a rural county may impose a sales
and use tax in accordance with the terms of this chapter. The tax is
in addition to other taxes authorized by law and shall be collected
from those persons who are taxable by the state under chapters 82.08
and 82.12 RCW upon the occurrence of any taxable event within the
county. The rate of tax shall not exceed 0.08 percent ((of the selling
price in the case of a sales tax or value of the article used in the
case of a use tax)), except that for rural counties with population
densities between sixty and one hundred persons per square mile, the
rate shall not exceed 0.04 percent before January 1, 2000.
(2) The tax ((imposed)) authorized under subsection (1) of this
section ((shall be deducted from the amount of tax otherwise required
to be collected or paid over to the department of revenue)) is a credit
against the state tax under chapter 82.08 or 82.12 RCW. The department
of revenue shall perform the collection of such taxes on behalf of the
county at no cost to the county and shall remit the tax to the county
as provided in RCW 82.14.060.
(3)(a) Moneys collected under the authority of this section shall
only be used to finance public facilities serving economic development
purposes in rural counties. The public facility must be listed as an
item in the officially adopted county overall economic development
plan, or the economic development section of the county's comprehensive
plan, or the comprehensive plan of a city or town located within the
county for those counties planning under RCW 36.70A.040. For those
counties that do not have an adopted overall economic development plan
and do not plan under the growth management act, the public facility
must be listed in the county's capital facilities plan or the capital
facilities plan of a city or town located within the county.
(b) In implementing this section, the county shall consult with
cities, towns, and port districts located within the county and the
associate development organization serving the county to ensure that
the expenditure meets the goals of chapter 130, Laws of 2004 and the
requirements of (a) of this subsection. Each county collecting money
under the authority of this section shall report to the office of the
state auditor, no later than October 1st of each year, a list of new
projects from the prior fiscal year, showing that the county has used
the funds for those projects consistent with the goals of chapter 130,
Laws of 2004 and the requirements of (a) of this subsection. Any
projects financed prior to June 10, 2004, from the proceeds of
obligations to which the tax imposed under the authority of subsection
(1) of this section has been pledged shall not be deemed to be new
projects under this subsection.
(c) For the purposes of this section, (i) "public facilities" means
bridges, roads, domestic and industrial water facilities, sanitary
sewer facilities, earth stabilization, storm sewer facilities,
railroad, electricity, natural gas, buildings, structures,
telecommunications infrastructure, transportation infrastructure, or
commercial infrastructure, and port facilities in the state of
Washington; and (ii) "economic development purposes" means those
purposes which facilitate the creation or retention of businesses and
jobs in a county.
(4) No tax may be collected under the authority of this section
before July 1, 1998. No tax may be collected under the authority of
this section by a county more than twenty-five years after the date
that a tax is first imposed under this section.
(5) For purposes of this section, "rural county" means a county
with a population density of less than one hundred persons per square
mile or a county smaller than two hundred twenty-five square miles as
determined by the office of financial management and published each
year by the department for the period July 1st to June 30th.
Sec. 616 RCW 82.14.390 and 2002 c 363 s 4 are each amended to
read as follows:
(1) Except as provided in subsection (6) of this section, the
governing body of a public facilities district created before July 31,
2002, under chapter 35.57 or 36.100 RCW that commences construction of
a new regional center, or improvement or rehabilitation of an existing
new regional center, before January 1, 2004, may impose a sales and use
tax in accordance with the terms of this chapter. The tax is in
addition to other taxes authorized by law and shall be collected from
those persons who are taxable by the state under chapters 82.08 and
82.12 RCW upon the occurrence of any taxable event within the public
facilities district. The rate of tax shall not exceed 0.033 percent
((of the selling price in the case of a sales tax or value of the
article used in the case of a use tax)).
(2) The tax ((imposed)) authorized under subsection (1) of this
section ((shall be deducted from the amount of tax otherwise required
to be collected or paid over to the department of revenue)) is a credit
against the state tax under chapter 82.08 or 82.12 RCW. The department
of revenue shall perform the collection of such taxes on behalf of the
county at no cost to the public facilities district and shall remit the
tax to the district as provided in RCW 82.14.060.
(3) ((No tax may be collected under this section before August 1,
2000.)) The tax imposed ((in)) under the authority of this section
shall expire when the bonds issued for the construction of the regional
center and related parking facilities are retired, but not more than
twenty-five years after the tax is first collected.
(4) Moneys collected under the authority of this section shall only
be used for the purposes set forth in RCW 35.57.020 and must be matched
with an amount from other public or private sources equal to thirty-three percent of the amount collected under the authority of this
section, provided that amounts generated from nonvoter approved taxes
authorized under chapter 35.57 RCW or nonvoter approved taxes
authorized under chapter 36.100 RCW shall not constitute a public or
private source. For the purpose of this section, public or private
sources includes, but is not limited to cash or in-kind contributions
used in all phases of the development or improvement of the regional
center, land that is donated and used for the siting of the regional
center, cash or in-kind contributions from public or private
foundations, or amounts attributed to private sector partners as part
of a public and private partnership agreement negotiated by the public
facilities district.
(5) The combined total tax ((levied)) imposed under the authority
of this section shall not be greater than 0.033 percent. If both a
public facilities district created under chapter 35.57 RCW and a public
facilities district created under chapter 36.100 RCW impose a tax under
the authority of this section, the tax imposed by a public facilities
district created under chapter 35.57 RCW shall be credited against the
tax imposed by a public facilities district created under chapter
36.100 RCW.
(6) A public facilities district created under chapter 36.100 RCW
is not eligible to impose the tax authorized under this section if the
legislative authority of the county where the public facilities
district is located has imposed a sales and use tax under RCW
82.14.0485 or 82.14.0494.
Sec. 617 RCW 82.14.400 and 2000 c 240 s 1 are each amended to
read as follows:
(1) Upon the joint request of a metropolitan park district, a city
with a population of more than one hundred fifty thousand, and a county
legislative authority in a county with a national park and a population
of more than five hundred thousand and less than one million five
hundred thousand, the county shall submit an authorizing proposition to
the county voters, ((fixing and)) imposing a sales and use tax in
accordance with this chapter for the purposes designated in subsection
(4) of this section and identified in the joint request. Such
proposition must be placed on a ballot for a special or general
election to be held no later than one year after the date of the joint
request.
(2) The proposition is approved if it receives the votes of a
majority of those voting on the proposition.
(3) The tax authorized in this section is in addition to any other
taxes authorized by law and shall be collected from those persons who
are taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of any taxable event within the county. The rate of tax
shall equal no more than one-tenth of one percent ((of the selling
price in the case of a sales tax, or value of the article used, in the
case of a use tax)).
(4) Moneys received from any tax imposed under the authority of
this section shall be used solely for the purpose of providing funds
for:
(a) Costs associated with financing, design, acquisition,
construction, equipping, operating, maintaining, remodeling, repairing,
reequipping, or improvement of zoo, aquarium, and wildlife preservation
and display facilities that are currently accredited by the American
zoo and aquarium association; or
(b) Those costs associated with (a) of this subsection and costs
related to parks located within a county described in subsection (1) of
this section.
(5) The department of revenue shall perform the collection of such
taxes on behalf of the county at no cost to the county. In lieu of the
charge for the administration and collection of local sales and use
taxes under RCW 82.14.050 from which the county is exempt under this
subsection (5), a percentage of the tax revenues authorized by this
section equal to one-half of the maximum percentage provided in RCW
82.14.050 shall be transferred annually to the department of community,
trade, and economic development, or its successor agency, from the
funds allocated under subsection (6)(b) of this section for a period of
twelve years from the first date of distribution of funds under
subsection (6)(b) of this section. The department of community, trade,
and economic development, or its successor agency, shall use funds
transferred to it pursuant to this subsection (5) to provide, operate,
and maintain community-based housing under chapter 43.185 RCW for
persons who are mentally ill.
(6) If the joint request and the authorizing proposition include
provisions for funding those costs included within subsection (4)(b) of
this section, the tax revenues authorized by this section shall be
allocated annually as follows:
(a) Fifty percent to the zoo and aquarium advisory authority; and
(b) Fifty percent to be distributed on a per capita basis as set
out in the most recent population figures for unincorporated and
incorporated areas only within that county, as determined by the office
of financial management, solely for parks, as follows: To any
metropolitan park district, to cities and towns not contained within a
metropolitan park district, and the remainder to the county. Moneys
received under this subsection (6)(b) by a county may not be used to
replace or supplant existing per capita funding.
(7) Funds shall be distributed annually by the county treasurer to
the county, and cities and towns located within the county, in the
manner set out in subsection (6)(b) of this section.
(8) Prior to expenditure of any funds received by the county under
subsection (6)(b) of this section, the county shall establish a process
which considers needs throughout the unincorporated areas of the county
in consultation with community advisory councils established by
ordinance.
(9) By December 31, 2005, and thereafter, the county or any city
with a population greater than eighty thousand must provide at least
one dollar match for every two dollars received under this section.
(10) Properties subject to a memorandum of agreement between the
federal bureau of land management, the advisory council on historic
preservation, and the Washington state historic preservation officer
have priority for funding from money received under subsection (6)(b)
of this section for implementation of the stipulations in the
memorandum of agreement.
(a) At least one hundred thousand dollars of the first four years
of allocations under subsection (6)(b) of this section, to be matched
by the county or city with one dollar for every two dollars received,
shall be used to implement the stipulations of the memorandum of
agreement and for other historical, archaeological, architectural, and
cultural preservation and improvements related to the properties.
(b) The amount in (a) of this subsection shall come equally from
the allocations to the county and to the city in which the properties
are located, unless otherwise agreed to by the county and the city.
(c) The amount in (a) of this subsection shall not be construed to
displace or be offered in lieu of any lease payment from a county or
city to the state for the properties in question.
Sec. 618 RCW 82.14.420 and 2002 c 176 s 1 are each amended to
read as follows:
(1) A county legislative authority may submit an authorizing
proposition to the county voters, and if the proposition is approved by
a majority of persons voting, ((fix and)) impose a sales and use tax in
accordance with the terms of this chapter for the purposes designated
in subsection (3) of this section.
(2) The tax authorized in this section shall be in addition to any
other taxes authorized by law and shall be collected from those persons
who are taxable by the state under chapters 82.08 and 82.12 RCW upon
the occurrence of any taxable event within the county. The rate of tax
shall equal one-tenth of one percent ((of the selling price in the case
of sales tax, or value of the article used, in the case of a use tax)).
(3) Moneys received from any tax imposed under the authority of
this section shall be used solely for the purpose of providing funds
for costs associated with financing, design, acquisition, construction,
equipping, operating, maintaining, remodeling, repairing, reequipping,
and improvement of emergency communication systems and facilities.
(4) Counties are authorized to develop joint ventures to collocate
emergency communication systems and facilities.
(5) Prior to submitting the tax authorization in subsection (2) of
this section to the voters in a county that provides emergency
communication services to a governmental agency pursuant to a contract,
the parties to the contract shall review and negotiate or affirm the
terms of the contract.
(6) Prior to submitting the tax authorized in subsection (2) of
this section to the voters, a county with a population of more than
five hundred thousand in which any city over fifty thousand operates
emergency communication systems and facilities shall enter into an
interlocal agreement with the city to determine distribution of the
revenue provided in this section.
Sec. 619 RCW 82.14.430 and 2002 c 56 s 405 are each amended to
read as follows:
(1) If approved by the majority of the voters within its boundaries
voting on the ballot proposition, a regional transportation investment
district may impose a sales and use tax of up to 0.5 percent ((of the
selling price or value of the article used in the case of a use tax)).
The tax authorized by this section is in addition to the tax authorized
by RCW 82.14.030 and must be collected from those persons who are
taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of any taxable event within the taxing district. Motor
vehicles are exempt from the sales and use tax imposed under this
subsection.
(2) If approved by the majority of the voters within its boundaries
voting on the ballot proposition, a regional transportation investment
district may impose a tax on the use of a motor vehicle within a
regional transportation investment district. The tax applies to those
persons who reside within the regional transportation investment
district. The rate of the tax may not exceed 0.5 percent ((of the
value of the motor vehicle)). The tax authorized by this subsection is
in addition to the tax authorized under RCW 82.14.030 and must be
imposed and collected at the time a taxable event under RCW
82.08.020(1) or 82.12.020 takes place. All revenue received under this
subsection must be deposited in the local sales and use tax account and
distributed to the regional transportation investment district
according to RCW 82.14.050. The following provisions apply to the use
tax in this subsection:
(a) Where persons are taxable under chapter 82.08 RCW, the seller
shall collect the use tax from the buyer using the collection
provisions of RCW 82.08.050.
(b) Where persons are taxable under chapter 82.12 RCW, the use tax
must be collected using the provisions of RCW 82.12.045.
(c) "Motor vehicle" has the meaning provided in RCW 46.04.320, but
does not include farm tractors or farm vehicles as defined in RCW
46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in
RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.
(d) "Person" has the meaning given in RCW 82.04.030.
(e) The value of a motor vehicle must be determined under RCW
82.12.010.
(f) Except as specifically stated in this subsection (2), chapters
82.12 and 82.32 RCW apply to the use tax. The use tax is a local tax
imposed under the authority of this chapter ((82.14 RCW)), and this
chapter ((82.14 RCW)) applies fully to the use tax.
Sec. 620 RCW 82.14.440 and 2003 c 83 s 207 are each amended to
read as follows:
(1) Public transportation benefit areas providing passenger-only
ferry service as provided in RCW 36.57A.200 whose boundaries (((1)))
(a) are on the Puget Sound, but (((2))) (b) do not include an area
where a regional transit authority has been formed, may submit an
authorizing proposition to the voters and, if approved by a majority of
persons voting, ((fix and)) impose a sales and use tax in accordance
with the terms of this chapter, solely for the purpose of providing
passenger-only ferry service.
(2) The tax authorized by this section is in addition to other
taxes authorized by law and must be collected from those persons who
are taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of a taxable event within the taxing district. The maximum
rate of the tax must be approved by the voters and may not exceed four-tenths of one percent ((of the selling price in the case of a sales tax
or value of the article used in the case of a use tax)).
Sec. 621 RCW 82.14.450 and 2003 1st sp.s. c 24 s 2 are each
amended to read as follows:
(1) A county legislative authority may submit an authorizing
proposition to the county voters at a primary or general election and,
if the proposition is approved by a majority of persons voting, impose
a sales and use tax in accordance with the terms of this chapter. The
title of each ballot measure must clearly state the purposes for which
the proposed sales and use tax will be used. Funds raised under this
tax shall not supplant existing funds used for these purposes. The
rate of tax authorized under this section shall not exceed three-tenths
of one percent ((of the selling price in the case of a sales tax, or
value of the article used, in the case of a use tax)).
(2) The tax authorized in this section is in addition to any other
taxes authorized by law and shall be collected from those persons who
are taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of any taxable event within the county.
(3) The retail sale or use of motor vehicles, and the lease of
motor vehicles for up to the first thirty-six months of the lease, are
exempt from tax imposed under this section.
(4) One-third of all money received under this section shall be
used solely for criminal justice purposes. For the purposes of this
subsection, "criminal justice purposes" means additional police
protection, mitigation of congested court systems, or relief of
overcrowded jails or other local correctional facilities.
(5) Money received under the authority of this section shall be
shared between the county and the cities as follows: Sixty percent
shall be retained by the county and forty percent shall be distributed
on a per capita basis to cities in the county.
Sec. 622 RCW 82.14.460 and 2005 c 504 s 804 are each amended to
read as follows:
(1) A county legislative authority may ((authorize, fix, and))
impose a sales and use tax in accordance with the terms of this
chapter.
(2) The tax authorized in this section shall be in addition to any
other taxes authorized by law and shall be collected from those persons
who are taxable by the state under chapters 82.08 and 82.12 RCW upon
the occurrence of any taxable event within the county. The rate of tax
shall equal one-tenth of one percent ((of the selling price in the case
of a sales tax, or value of the article used, in the case of a use
tax)).
(3) Moneys collected under the authority of this section shall be
used solely for the purpose of providing new or expanded chemical
dependency or mental health treatment services and for the operation of
new or expanded therapeutic court programs. Moneys collected under the
authority of this section shall not be used to supplant existing
funding for these purposes.
NEW SECTION. Sec. 623 (1) Any fund balance remaining in the
county sales and use tax equalization account, the municipal sales and
use tax equalization account, the distressed county assistance account,
and the city police and fire protection assistance account, as of July
1, 2006, shall be transferred by the state treasurer into the
city-county assistance account. The county sales and use tax
equalization account, the municipal sales and use tax equalization
account, the distressed county assistance account, and the city police
and fire protection assistance account shall cease to exist after July
1, 2006.
(2) Any loan repayments of funds borrowed from the municipal sales
and use tax equalization account under RCW 35.02.135 shall be deposited
by the state treasurer into the city-county assistance account.
NEW SECTION. Sec. 624 A new section is added to chapter 82.14
RCW to read as follows:
(1) The amount of retail sales or use tax imposed by a local
government under the authority of this chapter or any other statute
upon the occurrence of any taxable event shall equal:
(a) In the case of a sales tax, the tax rates multiplied by the
selling price of the article, service, or extended warranty; and
(b) In the case of a use tax, the tax rates multiplied by the value
of the article used, value of the service used, or value of the
extended warranty used. However, in the case of a seller that is
required to collect use tax from the purchaser, the amount of tax
imposed shall equal the tax rates multiplied by the purchase price.
(2) For purposes of this section, "local government" has the same
meaning as in RCW 82.14.055.
Sec. 625 RCW 43.84.092 and 2005 c 514 s 1106, 2005 c 353 s 4,
2005 c 339 s 23, 2005 c 314 s 110, 2005 c 312 s 8, and 2005 c 94 s 2
are each reenacted and amended to read as follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The capitol building
construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects
account, the charitable, educational, penal and reformatory
institutions account, the common school construction fund, the county
criminal justice assistance account, ((the county sales and use tax
equalization account,)) the data processing building construction
account, the deferred compensation administrative account, the deferred
compensation principal account, the department of retirement systems
expense account, the developmental disabilities community trust
account, the drinking water assistance account, the drinking water
assistance administrative account, the drinking water assistance
repayment account, the Eastern Washington University capital projects
account, the education construction fund, the education legacy trust
account, the election account, the emergency reserve fund, The
Evergreen State College capital projects account, the federal forest
revolving account, the freight mobility investment account, the health
services account, the public health services account, the health system
capacity account, the personal health services account, the state
higher education construction account, the higher education
construction account, the highway infrastructure account, the high-occupancy toll lanes operations account, the industrial insurance
premium refund account, the judges' retirement account, the judicial
retirement administrative account, the judicial retirement principal
account, the local leasehold excise tax account, the local real estate
excise tax account, the local sales and use tax account, the medical
aid account, the mobile home park relocation fund, the multimodal
transportation account, the municipal criminal justice assistance
account, ((the municipal sales and use tax equalization account,)) the
natural resources deposit account, the oyster reserve land account, the
perpetual surveillance and maintenance account, the public employees'
retirement system plan 1 account, the public employees' retirement
system combined plan 2 and plan 3 account, the public facilities
construction loan revolving account beginning July 1, 2004, the public
health supplemental account, the public works assistance account, the
Puyallup tribal settlement account, the real estate appraiser
commission account, the regional transportation investment district
account, the resource management cost account, the rural Washington
loan fund, the site closure account, the small city pavement and
sidewalk account, the special wildlife account, the state employees'
insurance account, the state employees' insurance reserve account, the
state investment board expense account, the state investment board
commingled trust fund accounts, the supplemental pension account, the
Tacoma Narrows toll bridge account, the teachers' retirement system
plan 1 account, the teachers' retirement system combined plan 2 and
plan 3 account, the tobacco prevention and control account, the tobacco
settlement account, the transportation infrastructure account, the
transportation partnership account, the tuition recovery trust fund,
the University of Washington bond retirement fund, the University of
Washington building account, the volunteer fire fighters' and reserve
officers' relief and pension principal fund, the volunteer fire
fighters' and reserve officers' administrative fund, the Washington
fruit express account, the Washington judicial retirement system
account, the Washington law enforcement officers' and fire fighters'
system plan 1 retirement account, the Washington law enforcement
officers' and fire fighters' system plan 2 retirement account, the
Washington public safety employees' plan 2 retirement account, the
Washington school employees' retirement system combined plan 2 and 3
account, the Washington state health insurance pool account, the
Washington state patrol retirement account, the Washington State
University building account, the Washington State University bond
retirement fund, the water pollution control revolving fund, and the
Western Washington University capital projects account. Earnings
derived from investing balances of the agricultural permanent fund, the
normal school permanent fund, the permanent common school fund, the
scientific permanent fund, and the state university permanent fund
shall be allocated to their respective beneficiary accounts. All
earnings to be distributed under this subsection (4)(a) shall first be
reduced by the allocation to the state treasurer's service fund
pursuant to RCW 43.08.190.
(b) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The aeronautics account,
the aircraft search and rescue account, the county arterial
preservation account, the department of licensing services account, the
essential rail assistance account, the ferry bond retirement fund, the
grade crossing protective fund, the high capacity transportation
account, the highway bond retirement fund, the highway safety account,
the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget
Sound capital construction account, the Puget Sound ferry operations
account, the recreational vehicle account, the rural arterial trust
account, the safety and education account, the special category C
account, the state patrol highway account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, and the urban
arterial trust account.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 626 RCW 82.44.160 and 1999 c 309 s 931 are each amended to
read as follows:
((Before distributing moneys to the cities and towns from the city
police and fire protection assistance account, as provided in RCW
82.44.155, and from the municipal sales and use tax equalization
account, as provided in RCW 82.14.210, the state treasurer shall, on
the first day of July of each year, make an annual deduction therefrom
of a sum equal to one-half of the biennial appropriation made pursuant
to this section, which amount shall be at least seven cents per capita
of the population of all cities or towns as legally certified on that
date, determined as provided in RCW 82.44.150, which sum shall be
apportioned and transmitted to the municipal research council, herein
created. Sixty-five percent of the annual deduction shall be from the
distribution to cities and towns under RCW 82.44.155, and thirty-five
percent of the annual deduction shall be from the distribution to the
municipal sales and use tax equalization account under RCW 82.14.210.))
The municipal research council may contract with and allocate moneys to
any state agency, educational institution, or private consulting firm,
which in its judgment is qualified to carry on a municipal research and
service program. Moneys may be utilized to match federal funds
available for technical research and service programs to cities and
towns. Moneys allocated shall be used for studies and research in
municipal government, publications, educational, conferences, and
attendance thereat, and in furnishing technical, consultative, and
field services to cities and towns in problems relating to planning,
public health, municipal sanitation, fire protection, law enforcement,
postwar improvements, and public works, and in all matters relating to
city and town government. The programs shall be carried on and all
expenditures shall be made in cooperation with the cities and towns of
the state acting through the Association of Washington Cities by its
board of directors which is hereby recognized as their official agency
or instrumentality.
Funds ((deducted under this section shall be deposited in the
treasury in the general fund, and)) shall be disbursed by warrant or
check to contracting parties on invoices or vouchers certified by the
chair of the municipal research council or his or her designee.
Payments to public agencies may be made in advance of actual work
contracted for, in the discretion of the council.
((Sixty-five percent of any moneys remaining unexpended or
uncontracted for by the municipal research council at the end of any
fiscal biennium shall be returned to the city police and fire
protection assistance account and be paid to cities and towns under RCW
82.44.155. The remaining thirty-five percent shall be deposited into
the municipal sales and use tax equalization account.))
Sec. 627 RCW 43.62.010 and 1990 c 42 s 317 are each amended to
read as follows:
If the state or any of its political subdivisions, or other
agencies, use the population studies services of the office of
financial management or the successor thereto, the state, its political
subdivision, or other agencies utilizing such services shall pay for
the cost of rendering such services. ((Expenditures shall be paid out
of funds allocated to cities and towns under RCW 82.44.155 and shall be
paid from said fund before any allocations or payments are made to
cities and towns under RCW 82.44.155.))
Sec. 628 RCW 70.05.125 and 1998 c 266 s 1 are each amended to
read as follows:
(1) The county public health account is created in the state
treasury. Funds deposited in the county public health account shall be
distributed by the state treasurer to each local public health
jurisdiction based upon amounts certified to it by the department of
community, trade, and economic development in consultation with the
Washington state association of counties. The account shall include
((funds distributed under RCW 82.44.110 and 82.14.200(8) and such))
funds ((as are)) appropriated to the account from the health services
account under RCW 43.72.900, the public health services account under
RCW 43.72.902, and such other funds as the legislature may appropriate
to it.
(2)(a) The director of the department of community, trade, and
economic development shall certify the amounts to be distributed to
each local public health jurisdiction using 1995 as the base year of
actual city contributions to local public health.
(b) ((Only if funds are available and in an amount no greater than
available funds under RCW 82.14.200(8), the department of community,
trade, and economic development shall adjust the amount certified under
(a) of this subsection to compensate for any annexation of an area with
fifty thousand residents or more to any city as a result of a petition
during calendar year 1996 or 1997, or for any city that became newly
incorporated as a result of an election during calendar year 1994 or
1995. The amount to be adjusted shall be equal to the amount which
otherwise would have been lost to the health jurisdiction due to the
annexation or incorporation as calculated using the jurisdiction's 1995
funding formula.)) The county treasurer shall certify the actual 1995 city
contribution to the department. Funds in excess of the base shall be
distributed proportionately among the health jurisdictions based on
incorporated population figures as last determined by the office of
financial management.
(c)
(3) Moneys distributed under this section shall be expended
exclusively for local public health purposes.
Sec. 629 RCW 53.08.090 and 1994 c 26 s 1 are each amended to read
as follows:
(((1))) A port commission may, by resolution, authorize the
managing official of a port district to sell and convey port district
property of ten thousand dollars or less in value. The authority shall
be in force for not more than one calendar year from the date of
resolution and may be renewed from year to year. Prior to any such
sale or conveyance the managing official shall itemize and list the
property to be sold and make written certification to the commission
that the listed property is no longer needed for district purposes.
Any large block of the property having a value in excess of ten
thousand dollars shall not be broken down into components of ten
thousand dollars or less value and sold in the smaller components
unless the smaller components be sold by public competitive bid. A
port district may sell and convey any of its real or personal property
valued at more than ten thousand dollars when the port commission has,
by resolution, declared the property to be no longer needed for
district purposes, but no property which is a part of the comprehensive
plan of improvement or modification thereof shall be disposed of until
the comprehensive plan has been modified to find the property surplus
to port needs. The comprehensive plan shall be modified only after
public notice and hearing provided by RCW 53.20.010.
Nothing in this section shall be deemed to repeal or modify
procedures for property sales within industrial development districts
as set forth in chapter 53.25 RCW.
(((2) The ten thousand dollar figures in subsection (1) of this
section shall be adjusted annually based upon the governmental price
index established by the department of revenue under RCW 82.14.200.))
Sec. 630 RCW 43.160.220 and 1998 c 321 s 9 are each amended to
read as follows:
The distressed county public facilities construction loan account
is created in the state treasury. ((All funds provided under RCW
82.14.200 shall be deposited in the account.)) Moneys in the account
may be spent only after appropriation. Moneys in the account shall
only be used to provide financial assistance under this chapter to
distressed counties that have experienced extraordinary costs due to
the location of a major new business facility or the substantial
expansion of an existing business facility in the county.
For purposes of this section, the term "distressed counties"
includes any county in which the average level of unemployment for the
three years before the year in which an application for financial
assistance is filed exceeds the average state employment for those
years by twenty percent.
NEW SECTION. Sec. 631 The following acts or parts of acts are
each repealed:
(1) RCW 82.14.032 (Alteration of tax rate pursuant to government
service agreement) and 1994 c 266 s 11;
(2) RCW 82.14.046 (Sales and use tax equalization payments from
local transit taxes) and 1998 c 321 s 37, 1995 c 298 s 1, & 1994 c 241
s 2;
(3) RCW 82.14.070 (Uniformity -- Rule making -- Model ordinance) and
2003 c 168 s 202, 2000 c 104 s 5, & 1970 ex.s. c 94 s 10;
(4) RCW 82.14.200 (County sales and use tax equalization account--Allocation procedure) and 2003 1st sp.s. c 25 s 941, 1998 c 321 s 8,
1997 c 333 s 2, 1991 sp.s. c 13 s 15, 1990 c 42 s 313, 1985 c 57 s 82,
1984 c 225 s 5, 1983 c 99 s 1, & 1982 1st ex.s. c 49 s 21;
(5) RCW 82.14.210 (Municipal sales and use tax equalization
account -- Allocation procedure) and 2003 1st sp.s. c 25 s 942, 1996 c 64
s 1, 1991 sp.s. c 13 s 16, 1990 2nd ex.s. c 1 s 701, 1990 c 42 s 314,
1985 c 57 s 83, 1984 c 225 s 2, & 1982 1st ex.s. c 49 s 22;
(6) RCW 82.14.220 (Figures for apportionments and distributions
under RCW 82.14.200 and 82.14.210) and 1984 c 225 s 4;
(7) RCW 82.14.380 (Distressed county assistance account -- Created--Distributions) and 1999 c 311 s 201 & 1998 c 321 s 10;
(8) RCW 35.02.135 (Newly incorporated city or town -- May borrow from
municipal sales and use tax equalization account) and 1991 c 360 s 5;
(9) RCW 82.44.155 (City police and fire protection assistance
account -- Distribution to cities and towns -- Apportionment) and 1998 c
321 s 40, 1993 c 492 s 254, 1991 c 199 s 223, & 1990 c 42 s 309;
(10) RCW 82.14.034 (Alteration of county's share of city's tax
receipts pursuant to government service agreement) and 1994 c 266 s 12;
and
(11) RCW 82.14.212 (Transfer of funds pursuant to government
service agreement) and 1994 c 266 s 13.
NEW SECTION. Sec. 701 A new section is added to chapter 82.12
RCW, to be codified between RCW 82.12.024 and 82.12.0251, to read as
follows:
(1) The tax imposed by RCW 82.12.020 does not apply to the use of
any article of tangible personal property, service, or extended
warranty, if the article, service, or extended warranty is specifically
described in and used solely by a person and solely for the purposes
specified in RCW 82.08.02525, 82.08.0252, 82.08.0253, 82.08.02537,
82.08.02567, 82.08.02568, 82.08.02569, 82.08.0256, 82.08.0257,
82.08.0258, 82.08.0259, 82.08.0267, 82.08.0272, 82.08.0274, 82.08.0275,
82.08.0277, 82.08.0278, 82.08.02795, 82.08.02805, 82.08.02806,
82.08.02807, 82.08.0281, 82.08.0282, 82.08.0283, 82.08.0285,
82.08.0288, 82.08.0291, 82.08.02915, 82.08.0293, 82.08.0294,
82.08.0296, 82.08.0297, 82.08.0298, 82.08.031, 82.08.0311, 82.08.0316,
82.08.032, 82.08.033, 82.08.034, 82.08.803, 82.08.804, 82.08.806,
82.08.808, 82.08.809, 82.08.813, 82.08.832, 82.08.841, 82.08.880,
82.08.890, 82.08.900, 82.08.910, 82.08.920, 82.08.925, 82.08.935,
82.08.940, 82.08.945, 82.08.950, 82.08.955, 82.08.975, or 82.08.985.
(2) Subsection (1) of this section is in addition to the specific
exemptions from the tax imposed by RCW 82.12.020 provided in other
provisions of this or any other chapter.
Sec. 702 RCW 82.08.0266 and 1999 c 358 s 5 are each amended to
read as follows:
The tax levied by RCW 82.08.020 shall not apply to sales to
nonresidents of this state for use outside of this state of watercraft
requiring coast guard registration or registration by the state of
principal use according to the Federal Boating Act of 1958, even though
delivery be made within this state, but only when (1) the watercraft
will not be used within this state for more than forty-five days and
(2) an appropriate exemption certificate supported by identification
ascertaining residence as required by the department ((of revenue)) and
signed by the ((purchaser)) buyer or ((his)) the buyer's agent
establishing the fact that the ((purchaser)) buyer is a nonresident and
that the watercraft is for use outside of this state, a copy of which
shall be retained by the ((dealer)) seller.
Sec. 703 RCW 82.08.02665 and 1999 c 358 s 6 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of
vessels to residents of foreign countries for use outside of this
state, even though delivery is made within this state, but only if
(((1))):
(a) The vessel will not be used within this state for more than
forty-five days; and
(((2))) (b) An appropriate exemption certificate supported by
identification as required by the department ((of revenue)) and signed
by the ((purchaser)) buyer or the ((purchaser's)) buyer's agent
establishes the fact that the ((purchaser)) buyer is a resident of a
foreign country and that the vessel is for use outside of this state.
A copy of the exemption certificate is to be retained by the ((dealer))
seller.
(2) As used in this section, "vessel" means every watercraft used
or capable of being used as a means of transportation on the water,
other than a seaplane.
Sec. 704 RCW 82.08.0283 and 2004 c 153 s 101 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of:
(a) Prosthetic devices prescribed, fitted, or furnished for an
individual by a person licensed under the laws of this state to
prescribe, fit, or furnish prosthetic devices, and the components of
prosthetic devices;
(b) Medicines of mineral, animal, and botanical origin prescribed,
administered, dispensed, or used in the treatment of an individual by
a person licensed under chapter 18.36A RCW; ((and)) or
(c)(i) Medically prescribed oxygen, including, but not limited to,
oxygen concentrator systems, oxygen enricher systems, liquid oxygen
systems, and gaseous, bottled oxygen systems prescribed for an
individual by a person licensed under chapter 18.57 or 18.71 RCW for
use in the medical treatment of that individual; and
(ii) Repair, replacement, and component parts for medically
prescribed oxygen.
(2) In addition, the tax levied by RCW 82.08.020 shall not apply to
charges made for labor and services rendered in respect to the
repairing, cleaning, altering, or improving of any of the items
exempted under subsection (1) of this section.
(3) The exemption in subsection (1) of this section shall not apply
to sales of durable medical equipment or mobility enhancing equipment.
(4) The definitions in this subsection apply throughout this
section.
(a) "Prosthetic device" means a replacement, corrective, or
supportive device, including repair and replacement parts for a
prosthetic device, worn on or in the body to:
(i) Artificially replace a missing portion of the body;
(ii) Prevent or correct a physical deformity or malfunction; or
(iii) Support a weak or deformed portion of the body.
(b) "Durable medical equipment" means equipment, including repair
and replacement parts for durable medical equipment that:
(i) Can withstand repeated use;
(ii) Is primarily and customarily used to serve a medical purpose;
(iii) Generally is not useful to a person in the absence of illness
or injury; and
(iv) ((Does not work)) Is not worn in or on the body.
(c) "Mobility enhancing equipment" means equipment, including
repair and replacement parts for mobility enhancing equipment that:
(i) Is primarily and customarily used to provide or increase the
ability to move from one place to another and that is appropriate for
use either in a home or a motor vehicle;
(ii) Is not generally used by persons with normal mobility; and
(iii) Does not include any motor vehicle or equipment on a motor
vehicle normally provided by a motor vehicle manufacturer.
(d) The terms "durable medical equipment" and "mobility enhancing
equipment" are mutually exclusive.
Sec. 705 RCW 82.08.945 and 2004 c 153 s 110 are each amended to
read as follows:
The tax levied by RCW 82.08.020 shall not apply to sales of kidney
dialysis devices, including repair ((and)), replacement, and component
parts, for human use pursuant to a prescription. In addition, the tax
levied by RCW 82.08.020 shall not apply to charges made for labor and
services rendered in respect to the repairing, cleaning, altering, or
improving of kidney dialysis devices.
Sec. 706 RCW 82.12.0284 and 2003 c 168 s 603 are each amended to
read as follows:
The provisions of this chapter shall not apply in respect to the
use of computers, computer components, computer accessories, or
computer software irrevocably donated to any public or private
nonprofit school or college, as defined under chapter 84.36 RCW, in
this state. For purposes of this section, "computer" ((has)) and
"computer software" have the same meaning as in RCW 82.04.215.
Sec. 707 RCW 82.08.02569 and 1996 c 113 s 1 are each amended to
read as follows:
The tax levied by RCW 82.08.020 shall not apply to sales of
tangible personal property to a consumer as defined in RCW
82.04.190(((6))) (1)(f) if the tangible personal property is
incorporated into, installed in, or attached to a building or other
structure that is an integral part of a laser interferometer
gravitational wave observatory on which construction is commenced
before December 1, 1996.
Sec. 708 RCW 82.08.02917 and 1995 c 346 s 3 are each amended to
read as follows:
For the purposes of RCW 82.08.02915 ((and 82.12.02915)), "youth in
crisis" means any youth under eighteen years of age who is either:
Homeless; a runaway from the home of a parent, guardian, or legal
custodian; abused; neglected; abandoned by a parent, guardian, or legal
custodian; or suffering from a substance abuse or mental disorder.
Sec. 709 RCW 82.08.832 and 1998 c 178 s 1 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of gun
safes.
(2) As used in this section ((and RCW 82.12.832)), "gun safe" means
an enclosure specifically designed or modified for the purpose of
storing a firearm and equipped with a padlock, key lock, combination
lock, or similar locking device which, when locked, prevents the
unauthorized use of the firearm.
Sec. 710 RCW 82.08.880 and 2001 2nd sp.s. c 17 s 1 are each
amended to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales to
farmers or to veterinarians of animal pharmaceuticals approved by the
United States department of agriculture or by the United States food
and drug administration, if the pharmaceutical is to be administered to
an animal that is raised by a farmer for the purpose of producing for
sale an agricultural product.
(2) 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) For the purposes of this section ((and RCW 82.12.880)), the
following definitions apply:
(a) "Farmer" and "agricultural product" mean the same as in RCW
82.04.213.
(b) "Veterinarian" means a person who is licensed to practice
veterinary medicine, surgery, or dentistry under chapter 18.92 RCW.
Sec. 711 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 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 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 nutrient management equipment and facilities" means
machinery, equipment, and structures used in the handling and treatment
of dairy 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 licensed to produce milk under
chapter 15.36 RCW who has a certified dairy nutrient management plan by
December 31, 2003, as required by chapter 90.64 RCW.
Sec. 712 RCW 82.08.900 and 2001 2nd sp.s. c 18 s 4 are each
amended to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales to an
eligible person establishing or operating an anaerobic digester or to
services rendered in respect to installing, constructing, repairing,
cleaning, altering, or improving an anaerobic digester, or to sales of
tangible personal property that becomes an ingredient or component of
the anaerobic digester. The anaerobic digester must be used primarily
to treat dairy manure.
(2)(a) The department of revenue must provide an exemption
certificate to an eligible person upon application by that person. The
application must be in a form and manner prescribed by the department
and must contain information regarding the location of the facility and
other information as 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 82.12.900)) unless the context clearly requires otherwise:
(a) "Anaerobic digester" means a facility that processes manure
from cattle into biogas and dried manure using microorganisms in a
decomposition process within a closed, oxygen-free container.
(b) "Eligible person" means any person establishing or operating an
anaerobic digester to treat primarily dairy manure.
(c) "Primarily" means more than fifty percent measured by volume or
weight.
Sec. 713 RCW 82.08.910 and 2001 2nd sp.s. c 25 s 3 are each
amended to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales to
farmers of propane or natural gas used to heat structures used to house
chickens. The propane or natural gas must be used exclusively to heat
the structures. The structures must be used exclusively to house
chickens that are sold as agricultural products.
(2) 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 82.12.910)).
(a) "Structures" means barns, sheds, and other similar buildings in
which chickens are housed.
(b) "Farmer" has the same meaning as provided in RCW 82.04.213.
(c) "Agricultural product" has the same meaning as provided in RCW
82.04.213.
Sec. 714 RCW 82.08.920 and 2001 2nd sp.s. c 25 s 5 are each
amended to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales to a
farmer of bedding materials used to accumulate and facilitate the
removal of chicken manure. The farmer must be raising chickens that
are sold as agricultural products.
(2) 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 82.12.920)).
(a) "Bedding materials" means wood shavings, straw, sawdust,
shredded paper, and other similar materials.
(b) "Farmer" has the same meaning as provided in RCW 82.04.213.
(c) "Agricultural product" has the same meaning as provided in RCW
82.04.213.
NEW SECTION. Sec. 715 The following acts or parts of acts are
each repealed:
(1) RCW 82.12.02525 (Exemptions -- Sale of copied public records by
state and local agencies) and 1996 c 63 s 2;
(2) RCW 82.12.0253 (Exemptions -- Use of tangible personal property
taxable under chapter 82.16 RCW) and 1980 c 37 s 53;
(3) RCW 82.12.02567 (Exemptions -- Use of machinery and equipment
used in generating electricity) and 2004 c 152 s 2, 2003 c 5 s 6, 2001
c 213 s 2, 1999 c 358 s 10, 1998 c 309 s 2, & 1996 c 166 s 2;
(4) RCW 82.12.02568 (Exemptions -- Use of carbon and similar
substances that become an ingredient or component of anodes or cathodes
used in producing aluminum for sale) and 1996 c 170 s 2;
(5) RCW 82.12.02569 (Exemptions -- Use of tangible personal property
related to a building or structure that is an integral part of a laser
interferometer gravitational wave observatory) and 1996 c 113 s 2;
(6) RCW 82.12.0257 (Exemptions -- Use of tangible personal property
of the operating property of a public utility by state or political
subdivision) and 1980 c 37 s 57;
(7) RCW 82.12.0258 (Exemptions -- Use of tangible personal property
previously used in farming and purchased from farmer at auction) and
1980 c 37 s 58;
(8) RCW 82.12.0259 (Exemptions -- Use of tangible personal property
by federal corporations providing aid and relief) and 2003 c 5 s 7 &
1980 c 37 s 59;
(9) RCW 82.12.0261 (Exemptions -- Use of livestock) and 2001 c 118 s
5 & 1980 c 37 s 60;
(10) RCW 82.12.0262 (Exemptions -- Use of poultry for producing
poultry and poultry products for sale) and 1980 c 37 s 61;
(11) RCW 82.12.0267 (Exemptions -- Use of semen in artificial
insemination of livestock) and 1980 c 37 s 66;
(12) RCW 82.12.0268 (Exemptions -- Use of form lumber by persons
engaged in constructing, repairing, etc., structures for consumers) and
1980 c 37 s 67;
(13) RCW 82.12.0269 (Exemptions -- Use of sand, gravel, or rock to
extent of labor and service charges for mining, sorting, crushing,
etc., thereof from county or city quarry for public road purposes) and
1980 c 37 s 68;
(14) RCW 82.12.0271 (Exemptions -- Use of wearing apparel only as a
sample for display for sale) and 1980 c 37 s 69;
(15) RCW 82.12.0273 (Exemptions -- Use of pollen) and 1980 c 37 s 71;
(16) RCW 82.12.0274 (Exemptions -- Use of tangible personal property
by political subdivision resulting from annexation or incorporation)
and 1980 c 37 s 72;
(17) RCW 82.12.02745 (Exemptions--Use by free hospitals of certain
items) and 1993 c 205 s 2;
(18) RCW 82.12.02747 (Exemptions -- Use of medical products by
qualifying blood, tissue, or blood and tissue banks) and 2004 c 82 s 3
& 1995 2nd sp.s. c 9 s 5;
(19) RCW 82.12.02748 (Exemptions -- Use of human blood, tissue,
organs, bodies, or body parts for medical research or quality control
testing) and 1996 c 141 s 2;
(20) RCW 82.12.02749 (Exemptions -- Use of medical supplies,
chemicals, or materials by organ procurement organization) and 2002 c
113 s 3;
(21) RCW 82.12.0275 (Exemptions -- Use of certain drugs or family
planning devices) and 2003 c 168 s 406, 1993 sp.s. c 25 s 309, & 1980
c 37 s 73;
(22) RCW 82.12.0276 (Exemptions -- Use of returnable containers for
beverages and foods) and 1980 c 37 s 74;
(23) RCW 82.12.0277 (Exemptions -- Certain medical items) and 2004 c
153 s 109;
(24) RCW 82.12.0279 (Exemptions -- Use of ferry vessels by the state
or local governmental units -- Components thereof) and 2003 c 5 s 9 &
1980 c 37 s 77;
(25) RCW 82.12.0283 (Exemptions -- Use of certain irrigation
equipment) and 1983 1st ex.s. c 55 s 6;
(26) RCW 82.12.02915 (Exemptions -- Use of items by health or social
welfare organizations for alternative housing for youth in crisis) and
1998 c 183 s 2, 1997 c 386 s 57, & 1995 c 346 s 2;
(27) RCW 82.12.02917 (Exemptions -- Use of amusement and recreation
services by nonprofit youth organization) and 1999 c 358 s 7;
(28) RCW 82.12.0293 (Exemptions -- Use of food and food ingredients)
and 2003 c 168 s 303, 1988 c 103 s 2, 1986 c 182 s 2, 1985 c 104 s 2,
& 1982 1st ex.s. c 35 s 34;
(29) RCW 82.12.0294 (Exemptions -- Use of feed for cultivating or
raising fish for sale) and 1985 c 148 s 4;
(30) RCW 82.12.0296 (Exemptions -- Use of feed consumed by livestock
at a public livestock market) and 1986 c 265 s 2;
(31) RCW 82.12.0297 (Exemptions -- Use of food purchased with food
stamps) and 1998 c 79 s 19 & 1987 c 28 s 2;
(32) RCW 82.12.0298 (Exemptions -- Use of diesel fuel in operating
watercraft in commercial deep sea fishing or commercial passenger
fishing boat operations outside the state) and 1987 c 494 s 2;
(33) RCW 82.12.031 (Exemptions -- Use by artistic or cultural
organizations of certain objects) and 1981 c 140 s 5;
(34) RCW 82.12.0311 (Exemptions -- Use of materials and supplies in
packing horticultural products) and 1988 c 68 s 2;
(35) RCW 82.12.0316 (Exemptions -- Sales of cigarettes by Indian
retailers) and 2005 c 11 s 4 & 2001 c 235 s 5;
(36) RCW 82.12.032 (Exemption -- Use of used park model trailers) and
2001 c 282 s 4;
(37) RCW 82.12.033 (Exemption -- Use of certain used mobile homes)
and 1986 c 211 s 3 & 1979 ex.s. c 266 s 4;
(38) RCW 82.12.034 (Exemption -- Use of used floating homes) and 1984
c 192 s 4;
(39) RCW 82.12.0345 (Exemptions -- Use of newspapers) and 1994 c 124
s 11;
(40) RCW 82.12.0347 (Exemptions -- Use of academic transcripts) and
1996 c 272 s 3;
(41) RCW 82.12.803 (Exemptions -- Nebulizers) and 2004 c 153 s 105;
(42) RCW 82.12.804 (Exemptions -- Ostomic items) and 2004 c 153 s
107;
(43) RCW 82.12.806 (Exemptions -- Use of computer equipment parts and
services by printer or publisher) and 2004 c 8 s 3;
(44) RCW 82.12.808 (Exemptions -- Use of medical supplies, chemicals,
or materials by comprehensive cancer centers) and 2005 c 514 s 403;
(45) RCW 82.12.809 (Exemptions -- Vehicles using clean alternative
fuels) and 2005 c 296 s 3;
(46) RCW 82.12.813 (Exemptions -- High gas mileage vehicles) and 2005
c 296 s 4;
(47) RCW 82.12.832 (Exemptions -- Use of gun safes) and 1998 c 178 s
2;
(48) RCW 82.12.841 (Exemptions -- Farming equipment -- Hay sheds) and
2005 c 420 s 3;
(49) RCW 82.12.880 (Exemptions -- Animal pharmaceuticals) and 2001
2nd sp.s. c 17 s 2;
(50) RCW 82.12.890 (Exemptions -- Dairy nutrient management equipment
and facilities) and 2003 c 5 s 15 & 2001 2nd sp.s. c 18 s 3;
(51) RCW 82.12.900 (Exemptions -- Anaerobic digesters) and 2003 c 5
s 16 & 2001 2nd sp.s. c 18 s 5;
(52) RCW 82.12.910 (Exemptions -- Propane or natural gas to heat
chicken structures) and 2001 2nd sp.s. c 25 s 4;
(53) RCW 82.12.920 (Exemptions -- Chicken bedding materials) and 2001
2nd sp.s. c 25 s 6;
(54) RCW 82.12.925 (Exemptions -- Dietary supplements) and 2003 c 168
s 304;
(55) RCW 82.12.935 (Exemptions -- Disposable devices used to deliver
prescription drugs for human use) and 2003 c 168 s 407;
(56) RCW 82.12.940 (Exemptions -- Over-the-counter drugs for human
use) and 2003 c 168 s 408;
(57) RCW 82.12.945 (Exemptions -- Kidney dialysis devices) and 2004
c 153 s 111 & 2003 c 168 s 411;
(58) RCW 82.12.950 (Exemptions -- Steam, electricity, electrical
energy) and 2003 c 168 s 704;
(59) RCW 82.12.955 (Exemptions -- Use of machinery, equipment,
vehicles, and services related to biodiesel or alcohol fuel blend) and
2003 c 63 s 3;
(60) RCW 82.12.960 (Exemptions -- Use of machinery, equipment,
vehicles, and services related to wood biomass fuel blend) and 2003 c
339 s 14;
(61) RCW 82.12.975 (Computer parts and software related to the
manufacture of commercial airplanes) and 2003 2nd sp.s. c 1 s 10; and
(62) RCW 82.12.985 (Exemptions -- Insulin) and 2004 c 153 s 103.
NEW SECTION. Sec. 716 The sole purpose of the legislature in
enacting section 701, chapter . . ., Laws of 2006 is to consolidate a
number of use tax exemptions into a single section for purposes of
simplification. It is not the intent of the legislature in enacting
section 701, chapter . . ., Laws of 2006 to create new use tax
exemptions, or to eliminate, narrow, or expand any existing use tax
exemptions. Therefore, the courts, taxpayers, the department of
revenue, and the board of tax appeals should construe section 701,
chapter . . ., Laws of 2006 as a consolidation of existing law with no
substantive effect.
Sec. 801 RCW 82.24.520 and 1986 c 321 s 6 are each amended to
read as follows:
(1) A fee of six hundred fifty dollars shall accompany each
wholesaler's license application or license renewal application. If a
wholesaler sells or intends to sell cigarettes at two or more places of
business, whether established or temporary, a separate license with a
license fee of one hundred fifteen dollars shall be required for each
additional place of business. Each license, or certificate thereof,
and such other evidence of license as the department of revenue
requires, shall be exhibited in the place of business for which it is
issued and in such manner as is prescribed for the display of a master
license. The department of revenue shall require each licensed
wholesaler to file with the department a bond in an amount not less
than one thousand dollars to guarantee the proper performance of the
duties and the discharge of the liabilities under this chapter. The
bond shall be executed by such licensed wholesaler as principal, and by
a corporation approved by the department of revenue and authorized to
engage in business as a surety company in this state, as surety. The
bond shall run concurrently with the wholesaler's license.
(2) The fees imposed under subsection (1) of this section do not
apply to any person applying for a wholesaler's license or for renewal
of a wholesaler's license if the person has a valid distributor's
license under RCW 82.26.150 for the place of business associated with
the wholesaler's license application or license renewal application.
Sec. 802 RCW 82.24.530 and 1993 c 507 s 15 are each amended to
read as follows:
(1)(a) A fee of ninety-three dollars shall accompany each
retailer's license application or license renewal application. A
separate license is required for each separate location at which the
retailer operates.
(b) A fee of thirty additional dollars for each vending machine
shall accompany each application or renewal for a license issued to a
retail dealer operating a cigarette vending machine.
(2) The fee imposed under subsection (1) of this section does not
apply to any person applying for a retailer's license or for renewal of
a retailer's license if the person has a valid retailer's license under
RCW 82.26.150 for the place of business associated with the retailer's
license application or renewal application.
Sec. 803 RCW 43.06.455 and 2001 c 235 s 2 are each amended to
read as follows:
(1) The governor may enter into cigarette tax contracts concerning
the sale of cigarettes. All cigarette tax contracts shall meet the
requirements for cigarette tax contracts under this section. Except
for cigarette tax contracts under RCW 43.06.460, the rates, revenue
sharing, and exemption terms of a cigarette tax contract are not
effective unless authorized in a bill enacted by the legislature.
(2) Cigarette tax contracts shall be in regard to retail sales in
which Indian retailers make delivery and physical transfer of
possession of the cigarettes from the seller to the buyer within Indian
country, and are not in regard to transactions by non-Indian retailers.
In addition, contracts shall provide that retailers shall not sell or
give, or permit to be sold or given, cigarettes to any person under the
age of eighteen years.
(3) A cigarette tax contract with a tribe shall provide for a
tribal cigarette tax in lieu of all state cigarette taxes and state and
local sales and use taxes on sales of cigarettes in Indian country by
Indian retailers. The tribe may allow an exemption for sales to tribal
members.
(4) Cigarette tax contracts shall provide that all cigarettes
possessed or sold by a retailer shall bear a cigarette stamp obtained
by wholesalers from a bank or other suitable stamp vendor and applied
to the cigarettes. The procedures to be used by the tribe in obtaining
tax stamps must include a means to assure that the tribal tax will be
paid by the wholesaler obtaining such cigarettes. Tribal stamps must
have serial numbers or some other discrete identification so that each
stamp can be traced to its source.
(5) Cigarette tax contracts shall provide that retailers shall
purchase cigarettes only from:
(a) Wholesalers or manufacturers licensed to do business in the
state of Washington;
(b) Out-of-state wholesalers or manufacturers who, although not
licensed to do business in the state of Washington, agree to comply
with the terms of the cigarette tax contract, are certified to the
state as having so agreed, and who do in fact so comply. However, the
state may in its sole discretion exercise its administrative and
enforcement powers over such wholesalers or manufacturers to the extent
permitted by law;
(c) A tribal wholesaler that purchases only from a wholesaler or
manufacturer described in (a), (b), or (d) of this subsection; and
(d) A tribal manufacturer.
(6) Cigarette tax contracts shall be for renewable periods of no
more than eight years. A renewal may not include a renewal of the
phase-in period.
(7) Cigarette tax contracts shall include provisions for
compliance, such as transport and notice requirements, inspection
procedures, stamping requirements, recordkeeping, and audit
requirements.
(8) Tax revenue retained by a tribe must be used for essential
government services. Use of tax revenue for subsidization of cigarette
and food retailers is prohibited.
(9) The cigarette tax contract may include provisions to resolve
disputes using a nonjudicial process, such as mediation.
(10) The governor may delegate the power to negotiate cigarette tax
contracts to the department of revenue. The department of revenue
shall consult with the liquor control board during the negotiations.
(11) Information received by the state or open to state review
under the terms of a contract is subject to the provisions of RCW
82.32.330.
(12) It is the intent of the legislature that the liquor control
board and the department of revenue continue the division of duties and
shared authority under chapter 82.24 RCW and therefore the liquor
control board is responsible for enforcement activities that come under
the terms of chapter 82.24 RCW.
(13) Each cigarette tax contract shall include a procedure for
notifying the other party that a violation has occurred, a procedure
for establishing whether a violation has in fact occurred, an
opportunity to correct such violation, and a provision providing for
termination of the contract should the violation fail to be resolved
through this process, such termination subject to mediation should the
terms of the contract so allow. A contract shall provide for
termination of the contract if resolution of a dispute does not occur
within twenty-four months from the time notification of a violation has
occurred. Intervening violations do not extend this time period. In
addition, the contract shall include provisions delineating the
respective roles and responsibilities of the tribe, the department of
revenue, and the liquor control board.
(14) For purposes of this section and RCW 43.06.460, 82.08.0316,
((82.12.0316,)) and 82.24.295:
(a) "Essential government services" means services such as tribal
administration, public facilities, fire, police, public health,
education, job services, sewer, water, environmental and land use,
transportation, utility services, and economic development;
(b) "Indian retailer" or "retailer" means (i) a retailer wholly
owned and operated by an Indian tribe, (ii) a business wholly owned and
operated by a tribal member and licensed by the tribe, or (iii) a
business owned and operated by the Indian person or persons in whose
name the land is held in trust; and
(c) "Indian tribe" or "tribe" means a federally recognized Indian
tribe located within the geographical boundaries of the state of
Washington.
NEW SECTION. Sec. 804 The repealed sections in section 23,
chapter 180, Laws of 2005, do not affect any rights, liabilities,
obligations, or proceedings, incurred or instituted prior to July 1,
2005, under those sections or rules adopted by the department of
revenue pursuant to those sections.
Sec. 901 RCW 82.04.140 and 1961 c 15 s 82.04.140 are each amended
to read as follows:
(1) "Business" includes all activities engaged in with the object
of gain, benefit, or advantage to the taxpayer or to another person or
class, directly or indirectly.
(2) "Engaging in business" means commencing, conducting, or
continuing in business and also the exercise of corporate or franchise
powers as well as liquidating a business when the liquidators thereof
hold themselves out to the public as conducting such business.
Sec. 902 RCW 82.04.250 and 2003 2nd sp.s. c 1 s 2 are each
reenacted and amended to read as follows:
(1) Upon every person ((except persons taxable under RCW 82.04.260
(5) or (13), 82.04.272, or subsection (2) of this section)) engaging
within this state in the business of making sales at retail, except
persons taxable as retailers under other provisions of this chapter, as
to such persons, the amount of tax with respect to such business shall
be equal to the gross proceeds of sales of the business, multiplied by
the rate of 0.471 percent.
(2) Upon every person engaging within this state in the business of
making sales at retail that are exempt from the tax imposed under
chapter 82.08 RCW by reason of RCW 82.08.0261, 82.08.0262, or
82.08.0263, except persons taxable under RCW 82.04.260(((13))) (11), as
to such persons, the amount of tax with respect to such business shall
be equal to the gross proceeds of sales of the business, multiplied by
the rate of 0.484 percent.
Sec. 903 RCW 82.04.280 and 2004 c 24 s 6 are each amended to read
as follows:
Upon every person engaging within this state in the business of:
(1) Printing, and of publishing newspapers, periodicals, or magazines;
(2) building, repairing or improving any street, place, road, highway,
easement, right of way, mass public transportation terminal or parking
facility, bridge, tunnel, or trestle which is owned by a municipal
corporation or political subdivision of the state or by the United
States and which is used or to be used, primarily for foot or vehicular
traffic including mass transportation vehicles of any kind and
including any readjustment, reconstruction or relocation of the
facilities of any public, private or cooperatively owned utility or
railroad in the course of such building, repairing or improving, the
cost of which readjustment, reconstruction, or relocation, is the
responsibility of the public authority whose street, place, road,
highway, easement, right of way, mass public transportation terminal or
parking facility, bridge, tunnel, or trestle is being built, repaired
or improved; (3) extracting for hire or processing for hire, except
persons taxable as processors for hire under another section of this
chapter; (4) operating a cold storage warehouse or storage warehouse,
but not including the rental of cold storage lockers; (5) representing
and performing services for fire or casualty insurance companies as an
independent resident managing general agent licensed under the
provisions of RCW 48.05.310; (6) radio and television broadcasting,
excluding network, national and regional advertising computed as a
standard deduction based on the national average thereof as annually
reported by the Federal Communications Commission, or in lieu thereof
by itemization by the individual broadcasting station, and excluding
that portion of revenue represented by the out-of-state audience
computed as a ratio to the station's total audience as measured by the
100 micro-volt signal strength and delivery by wire, if any; (7)
engaging in activities which bring a person within the definition of
consumer contained in RCW 82.04.190(((6))) (1)(f); as to such persons,
the amount of tax on such business shall be equal to the gross income
of the business multiplied by the rate of 0.484 percent.
As used in this section, "cold storage warehouse" means a storage
warehouse used to store fresh and/or frozen perishable fruits or
vegetables, meat, seafood, dairy products, or fowl, or any combination
thereof, at a desired temperature to maintain the quality of the
product for orderly marketing.
As used in this section, "storage warehouse" means a building or
structure, or any part thereof, in which goods, wares, or merchandise
are received for storage for compensation, except field warehouses,
fruit warehouses, fruit packing plants, warehouses licensed under
chapter 22.09 RCW, public garages storing automobiles, railroad freight
sheds, docks and wharves, and "self-storage" or "mini storage"
facilities whereby customers have direct access to individual storage
areas by separate entrance. "Storage warehouse" does not include a
building or structure, or that part of such building or structure, in
which an activity taxable under RCW 82.04.272 is conducted.
As used in this section, "periodical or magazine" means a printed
publication, other than a newspaper, issued regularly at stated
intervals at least once every three months, including any supplement or
special edition of the publication.
Sec. 904 RCW 82.04.280 and 2003 c 149 s 4 are each amended to
read as follows:
Upon every person engaging within this state in the business of:
(1) Printing, and of publishing newspapers, periodicals, or magazines;
(2) building, repairing or improving any street, place, road, highway,
easement, right of way, mass public transportation terminal or parking
facility, bridge, tunnel, or trestle which is owned by a municipal
corporation or political subdivision of the state or by the United
States and which is used or to be used, primarily for foot or vehicular
traffic including mass transportation vehicles of any kind and
including any readjustment, reconstruction or relocation of the
facilities of any public, private or cooperatively owned utility or
railroad in the course of such building, repairing or improving, the
cost of which readjustment, reconstruction, or relocation, is the
responsibility of the public authority whose street, place, road,
highway, easement, right of way, mass public transportation terminal or
parking facility, bridge, tunnel, or trestle is being built, repaired
or improved; (3) extracting for hire or processing for hire, except
persons taxable as processors for hire under another section of this
chapter; (4) operating a cold storage warehouse or storage warehouse,
but not including the rental of cold storage lockers; (5) representing
and performing services for fire or casualty insurance companies as an
independent resident managing general agent licensed under the
provisions of RCW 48.05.310; (6) radio and television broadcasting,
excluding network, national and regional advertising computed as a
standard deduction based on the national average thereof as annually
reported by the Federal Communications Commission, or in lieu thereof
by itemization by the individual broadcasting station, and excluding
that portion of revenue represented by the out-of-state audience
computed as a ratio to the station's total audience as measured by the
100 micro-volt signal strength and delivery by wire, if any; (7)
engaging in activities which bring a person within the definition of
consumer contained in RCW 82.04.190(((6))) (1)(f); as to such persons,
the amount of tax on such business shall be equal to the gross income
of the business multiplied by the rate of 0.484 percent.
As used in this section, "cold storage warehouse" means a storage
warehouse used to store fresh and/or frozen perishable fruits or
vegetables, meat, seafood, dairy products, or fowl, or any combination
thereof, at a desired temperature to maintain the quality of the
product for orderly marketing.
As used in this section, "storage warehouse" means a building or
structure, or any part thereof, in which goods, wares, or merchandise
are received for storage for compensation, except field warehouses,
fruit warehouses, fruit packing plants, warehouses licensed under
chapter 22.09 RCW, public garages storing automobiles, railroad freight
sheds, docks and wharves, and "self-storage" or "mini storage"
facilities whereby customers have direct access to individual storage
areas by separate entrance. "Storage warehouse" does not include a
building or structure, or that part of such building or structure, in
which an activity taxable under RCW 82.04.272 is conducted.
As used in this section, "periodical or magazine" means a printed
publication, other than a newspaper, issued regularly at stated
intervals at least once every three months, including any supplement or
special edition of the publication.
Sec. 905 RCW 82.04.418 and 1983 1st ex.s. c 66 s 2 are each
amended to read as follows:
The provisions of this chapter ((shall)) do not apply to:
(1) Grants received from the state or the United States government
by municipal corporations or political subdivisions of the state of
Washington;
(2) Amounts received by any person for research and development
under the federal small business innovation research program (114 Stat.
2763A; 15 U.S.C. Sec. 638 et seq.);
(3) Amounts received by any person for research and development
under the federal small business technology transfer program (115 Stat.
263; 15 U.S.C. Sec. 638 et seq.); and
(4) Income received by the life sciences discovery fund authority
under chapter 43.350 RCW.
Sec. 906 RCW 82.04.4281 and 2002 c 150 s 2 are each amended to
read as follows:
(1) In computing tax there may be deducted from the measure of tax:
(a) Amounts derived from investments;
(b) Amounts derived as dividends or distributions from (([the]))
the capital account by a parent from its subsidiary entities; and
(c) Amounts derived from interest on loans between subsidiary
entities and a parent entity or between subsidiaries of a common parent
entity, but only if the total investment and loan income is less than
five percent of gross receipts of the business annually.
(2) The following are not deductible under subsection (1)(a) of
this section:
(a) Amounts received from loans, except as provided in subsection
(1)(c) of this section, or the extension of credit to another,
revolving credit arrangements, installment sales, the acceptance of
payment over time for goods or services, or any of the foregoing that
have been transferred by the originator of the same to an affiliate of
the transferor; or
(b) Amounts received by a banking, lending, or security business.
(3) The definitions in this subsection apply only to this section.
(a) "Banking business" means a person engaging in business as a
national or state-chartered bank, a mutual savings bank, a savings and
loan association, a trust company, an alien bank, a foreign bank, a
credit union, a stock savings bank, or a similar entity that is
chartered under Title 30, 31, 32, or 33 RCW, or organized under Title
12 U.S.C.
(b) "Lending business" means a person engaged in the business of
making secured or unsecured loans of money, or extending credit, and
(i) more than one-half of the person's gross income is earned from such
activities and (ii) more than one-half of the person's total
expenditures are incurred in support of such activities.
(c) The terms "loan" and "extension of credit" do not include
ownership of or trading in publicly traded debt instruments, or
substantially equivalent instruments offered in a private placement.
(d) "Security business" means a person, other than an issuer, who
is engaged in the business of effecting transactions in securities as
a broker, dealer, or broker-dealer, as those terms are defined in the
securities act of Washington, chapter 21.20 RCW, or the federal
securities act of 1933. "Security business" does not include any
company excluded from the definition of broker or dealer under the
federal investment company act of 1940 or any entity that is not an
investment company by reason of sections 3(c)(1) and 3(c)(3) through
3(c)(14) thereof.
Sec. 907 RCW 82.04.4286 and 1980 c 37 s 7 are each amended to
read as follows:
((In computing tax there may be deducted from the measure of tax))
This chapter does not apply to amounts derived from business which the
state is prohibited from taxing under the Constitution of this state or
the Constitution or laws of the United States.
Sec. 908 RCW 82.04.440 and 2005 c 301 s 3 are each amended to
read as follows:
(1) Every person engaged in activities ((which)) that are ((within
the purview of the provisions of two or more of sections)) subject to
tax under two or more provisions of RCW 82.04.230 ((to)) through
82.04.298, inclusive, shall be taxable under each ((paragraph))
provision applicable to ((the)) those activities ((engaged in)).
(2) Persons taxable under RCW 82.04.2909(2), 82.04.250, 82.04.270,
82.04.294(2), or 82.04.260(1)(c), (4), or (((13))) (11) with respect to
selling products in this state shall be allowed a credit against those
taxes for any (a) manufacturing taxes paid with respect to the
manufacturing of products so sold in this state, and/or (b) extracting
taxes paid with respect to the extracting of products so sold in this
state or ingredients of products so sold in this state. Extracting
taxes taken as credit under subsection (3) of this section may also be
taken under this subsection, if otherwise allowable under this
subsection. The amount of the credit shall not exceed the tax
liability arising under this chapter with respect to the sale of those
products.
(3) Persons taxable under RCW 82.04.240 or 82.04.260(1)(b) shall be
allowed a credit against those taxes for any extracting taxes paid with
respect to extracting the ingredients of the products so manufactured
in this state. The amount of the credit shall not exceed the tax
liability arising under this chapter with respect to the manufacturing
of those products.
(4) Persons taxable under RCW 82.04.230, 82.04.240, 82.04.2909(1),
82.04.294(1), or 82.04.260 (1), (2), (4), (((6),)) or (((13))) (11)
with respect to extracting or manufacturing products in this state
shall be allowed a credit against those taxes for any (i) gross
receipts taxes paid to another state with respect to the sales of the
products so extracted or manufactured in this state, (ii) manufacturing
taxes paid with respect to the manufacturing of products using
ingredients so extracted in this state, or (iii) manufacturing taxes
paid with respect to manufacturing activities completed in another
state for products so manufactured in this state. The amount of the
credit shall not exceed the tax liability arising under this chapter
with respect to the extraction or manufacturing of those products.
(5) For the purpose of this section:
(a) "Gross receipts tax" means a tax:
(i) Which is imposed on or measured by the gross volume of
business, in terms of gross receipts or in other terms, and in the
determination of which the deductions allowed would not constitute the
tax an income tax or value added tax; and
(ii) Which is also not, pursuant to law or custom, separately
stated from the sales price.
(b) "State" means (i) the state of Washington, (ii) a state of the
United States other than Washington, or any political subdivision of
such other state, (iii) the District of Columbia, and (iv) any foreign
country or political subdivision thereof.
(c) "Manufacturing tax" means a gross receipts tax imposed on the
act or privilege of engaging in business as a manufacturer, and
includes (i) the taxes imposed in RCW 82.04.240, 82.04.2909(1),
82.04.260 (1), (2), (4), and (((13))) (11), and 82.04.294(1); and (ii)
similar gross receipts taxes paid to other states.
(d) "Extracting tax" means a gross receipts tax imposed on the act
or privilege of engaging in business as an extractor, and includes the
tax imposed in RCW 82.04.230 and similar gross receipts taxes paid to
other states.
(e) "Business", "manufacturer", "extractor", and other terms used
in this section have the meanings given in RCW 82.04.020 through
82.04.212, notwithstanding the use of those terms in the context of
describing taxes imposed by other states.
Sec. 909 RCW 82.04.440 and 2006 c . . . s 908 (section 908 of
this act) are each amended to read as follows:
(1) Every person engaged in activities that are subject to tax
under two or more provisions of RCW 82.04.230 through 82.04.298,
inclusive, shall be taxable under each provision applicable to those
activities.
(2) Persons taxable under RCW 82.04.2909(2), 82.04.250, 82.04.270,
82.04.294(2), or 82.04.260(1) (c) or (e), (4), or (11) with respect to
selling products in this state shall be allowed a credit against those
taxes for any (a) manufacturing taxes paid with respect to the
manufacturing of products so sold in this state, and/or (b) extracting
taxes paid with respect to the extracting of products so sold in this
state or ingredients of products so sold in this state. Extracting
taxes taken as credit under subsection (3) of this section may also be
taken under this subsection, if otherwise allowable under this
subsection. The amount of the credit shall not exceed the tax
liability arising under this chapter with respect to the sale of those
products.
(3) Persons taxable under RCW 82.04.240 or 82.04.260(1)(b) shall be
allowed a credit against those taxes for any extracting taxes paid with
respect to extracting the ingredients of the products so manufactured
in this state. The amount of the credit shall not exceed the tax
liability arising under this chapter with respect to the manufacturing
of those products.
(4) Persons taxable under RCW 82.04.230, 82.04.240, 82.04.2909(1),
82.04.294(1), or 82.04.260 (1), (2), (4), or (11) with respect to
extracting or manufacturing products in this state shall be allowed a
credit against those taxes for any (i) gross receipts taxes paid to
another state with respect to the sales of the products so extracted or
manufactured in this state, (ii) manufacturing taxes paid with respect
to the manufacturing of products using ingredients so extracted in this
state, or (iii) manufacturing taxes paid with respect to manufacturing
activities completed in another state for products so manufactured in
this state. The amount of the credit shall not exceed the tax
liability arising under this chapter with respect to the extraction or
manufacturing of those products.
(5) For the purpose of this section:
(a) "Gross receipts tax" means a tax:
(i) Which is imposed on or measured by the gross volume of
business, in terms of gross receipts or in other terms, and in the
determination of which the deductions allowed would not constitute the
tax an income tax or value added tax; and
(ii) Which is also not, pursuant to law or custom, separately
stated from the sales price.
(b) "State" means (i) the state of Washington, (ii) a state of the
United States other than Washington, or any political subdivision of
such other state, (iii) the District of Columbia, and (iv) any foreign
country or political subdivision thereof.
(c) "Manufacturing tax" means a gross receipts tax imposed on the
act or privilege of engaging in business as a manufacturer, and
includes (i) the taxes imposed in RCW 82.04.240, 82.04.2909(1),
82.04.260 (1), (2), (4), and (11), and 82.04.294(1); and (ii) similar
gross receipts taxes paid to other states.
(d) "Extracting tax" means a gross receipts tax imposed on the act
or privilege of engaging in business as an extractor, and includes the
tax imposed in RCW 82.04.230 and similar gross receipts taxes paid to
other states.
(e) "Business", "manufacturer", "extractor", and other terms used
in this section have the meanings given in RCW 82.04.020 through
82.04.212, notwithstanding the use of those terms in the context of
describing taxes imposed by other states.
Sec. 910 RCW 82.04.4461 and 2003 2nd sp.s. c 1 s 7 are each
amended to read as follows:
(1)(a) In computing the tax imposed under this chapter, a credit is
allowed for each person for qualified preproduction development
((spending)) expenditures occurring after December 1, 2003.
(b) Before July 1, 2005, any credits earned under this section must
be accrued and carried forward and may not be used until July 1, 2005.
These carryover credits may be used at any time thereafter, and may be
carried over until used. Refunds may not be granted in the place of a
credit.
(2) The credit is equal to the amount of qualified preproduction
development expenditures of a person, multiplied by the rate of 1.5
percent.
(3) Except as provided in subsection (1)(b) of this section the
credit shall be taken against taxes due for the same calendar year in
which the qualified preproduction development expenditures are
incurred. Credit earned on or after July 1, 2005, may not be carried
over. The credit for each calendar year shall not exceed the amount of
tax otherwise due under this chapter for the calendar year. Refunds
may not be granted in the place of a credit.
(4) ((Any person claiming the credit shall file an affidavit form
prescribed by the department that shall include the amount of the
credit claimed, an estimate of the anticipated preproduction
development expenditures during the calendar year for which the credit
is claimed, an estimate of the taxable amount during the calendar year
for which the credit is claimed, and such additional information as the
department may prescribe.)) The definitions in this subsection apply throughout this
section.
(5)
(a) "Aeronautics" means the study of flight and the science of
building and operating commercial aircraft.
(b) "Person" means a person as defined in RCW 82.04.030, who is a
manufacturer or processor for hire of commercial airplanes, or
components of such airplanes, as those terms are defined in RCW
82.32.550.
(c) "Preproduction development" means research, design, and
engineering activities performed in relation to the development of a
product, product line, model, or model derivative, including prototype
development, testing, and certification. The term includes the
discovery of technological information, the translating of
technological information into new or improved products, processes,
techniques, formulas, or inventions, and the adaptation of existing
products and models into new products or new models, or derivatives of
products or models. The term does not include manufacturing activities
or other production-oriented activities, however the term does include
tool design and engineering design for the manufacturing process. The
term does not 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.
(d) (("Preproduction development spending" means qualified
preproduction development expenditures plus eighty percent of amounts
paid to a person other than a public educational or research
institution to conduct qualified preproduction development.)) "Qualified preproduction development" means preproduction
development performed within this state in the field of aeronautics.
(e)
(((f))) (e) "Qualified preproduction development expenditures"
means operating expenses, including wages, compensation of a proprietor
or a partner in a partnership as determined by the department,
benefits, supplies, and computer expenses, directly incurred in
qualified preproduction development by a person claiming the credit
provided in this section. The term does not include amounts paid to a
person, as defined in RCW 82.04.030, other than a public educational or
research institution to conduct qualified preproduction development.
The term does not include capital costs and overhead, such as expenses
for land, structures, or depreciable property.
(((g) "Taxable amount" means the taxable amount subject to the tax
imposed in this chapter required to be reported on the person's tax
returns during the year in which the credit is claimed, less any
taxable amount for which a credit is allowed under RCW 82.04.440.)) (5) In addition to all other requirements under this title,
a person taking the credit under this section must report as required
under RCW 82.32.545.
(6)
(((7))) (6) Credit may not be claimed for expenditures for which a
credit is claimed under RCW 82.04.4452.
(((8))) (7) This section expires July 1, 2024.
Sec. 911 RCW 82.04.4462 and 2003 2nd sp.s. c 1 s 8 are each
amended to read as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed for the investment related to design and preproduction
development computer software and hardware acquired between July 1,
1995, and December 1, 2003, and used by an eligible person primarily
for the digital design and development of commercial airplanes. The
credit shall be equal to the purchase price of such property,
multiplied by 8.44 percent. Credit taken in any one calendar year may
not exceed ten million dollars, and total lifetime credit taken under
this section by any one person may not exceed twenty million dollars.
Credit may be carried over until used.
(2) The definitions in this subsection apply throughout this
section.
(a) "Commercial airplane" has the meaning given in RCW 82.32.550.
(b) "Design and preproduction development computer software and
hardware" means computer-aided three-dimensional interactive
applications and other solid modeling computer technology that allow
for electronic design and testing during product development.
(c) "Eligible person" means a person as defined in RCW 82.04.030,
who is a manufacturer of commercial airplanes.
(3) An application must be made to the department before taking the
credit under this section. The application shall be made to the
department in a form and manner prescribed by the department. The
application shall contain information regarding the uses of the
computer software and hardware, purchase price, dates of acquisition,
and other information required by the department. The department shall
rule on the application within sixty days. All applications must be
received by the department within one year of December 1, 2003.
(4) This section expires July 1, ((2024)) 2006.
Sec. 912 RCW 82.04.4328 and 1985 c 471 s 7 are each amended to
read as follows:
(1) For the purposes of RCW 82.04.4322, 82.04.4324, 82.04.4326,
82.04.4327, and 82.08.031, ((and 82.12.031,)) the term "artistic or
cultural organization" means an organization which is organized and
operated exclusively for the purpose of providing artistic or cultural
exhibitions, presentations, or performances or cultural or art
education programs, as defined in subsection (2) of this section, for
viewing or attendance by the general public. The organization must be
a not-for-profit corporation under chapter 24.03 RCW and managed by a
governing board of not less than eight individuals none of whom is a
paid employee of the organization or by a corporation sole under
chapter 24.12 RCW. In addition, to qualify for deduction or exemption
from taxation under RCW 82.04.4322, 82.04.4324, 82.04.4326, 82.04.4327,
82.08.031, and ((82.12.031)) section 701 of this act, the corporation
shall satisfy the following conditions:
(a) No part of its income may be paid directly or indirectly to its
members, stockholders, officers, directors, or trustees except in the
form of services rendered by the corporation in accordance with its
purposes and bylaws;
(b) Salary or compensation paid to its officers and executives must
be only for actual services rendered, and at levels comparable to the
salary or compensation of like positions within the state;
(c) Assets of the corporation must be irrevocably dedicated to the
activities for which the exemption is granted and, on the liquidation,
dissolution, or abandonment by the corporation, may not inure directly
or indirectly to the benefit of any member or individual except a
nonprofit organization, association, or corporation which also would be
entitled to the exemption;
(d) The corporation must be duly licensed or certified when
licensing or certification is required by law or regulation;
(e) The amounts received that qualify for exemption must be used
for the activities for which the exemption is granted;
(f) Services must be available regardless of race, color, national
origin, or ancestry; and
(g) The director of revenue shall have access to its books in order
to determine whether the corporation is exempt from taxes.
(2) The term "artistic or cultural exhibitions, presentations, or
performances or cultural or art education programs" includes and is
limited to:
(a) An exhibition or presentation of works of art or objects of
cultural or historical significance, such as those commonly displayed
in art or history museums;
(b) A musical or dramatic performance or series of performances; or
(c) An educational seminar or program, or series of such programs,
offered by the organization to the general public on an artistic,
cultural, or historical subject.
Sec. 913 RCW 82.04.460 and 2004 c 174 s 6 are each amended to
read as follows:
(1)(a) Except as otherwise provided in this section, any person
((rendering services)) engaging in business activities in this state
taxable under RCW 82.04.290 or 82.04.2908, and ((maintaining places of
business both within and without this state which contribute to the
rendition of such services)) engaging in business activities outside
this state that contribute more than incidentally to such in-state
activities, shall, for the purpose of computing tax liability under RCW
82.04.290 or 82.04.2908, apportion to this state that portion of the
person's gross income which is derived from ((services rendered))
business activities performed within this state. Where such
apportionment cannot be accurately made by separate accounting methods,
the taxpayer shall apportion to this state that proportion of the
taxpayer's total income which the cost of doing business within the
state bears to the total cost of doing business both within and without
the state.
(b) Activities performed outside this state contribute more than
incidentally to in-state activities only to the extent that such
activities would subject the taxpayer to the tax imposed under this
chapter if performed in this state.
(2) ((Notwithstanding the provision of subsection (1) of this
section,)) Persons doing business both within and without the state who
receive gross income from service charges, as defined in RCW 63.14.010
(relating to amounts charged for granting the right or privilege to
make deferred or installment payments) or who receive gross income from
engaging in business as financial institutions within the scope of
chapter 82.14A RCW (relating to city taxes on financial institutions)
shall apportion or allocate gross income taxable under RCW 82.04.290 to
this state pursuant to rules ((promulgated)) adopted by the department
consistent with uniform rules for apportionment or allocation developed
by the states.
(((3) The department shall by rule provide a method or methods of
apportioning or allocating gross income derived from sales of telephone
services taxed under this chapter, if the gross proceeds of sales
subject to tax under this chapter do not fairly represent the extent of
the taxpayer's income attributable to this state. The rules shall be,
so far as feasible, consistent with the methods of apportionment
contained in this section and shall require the consideration of those
facts, circumstances, and apportionment factors as will result in an
equitable and constitutionally permissible division of the services.))
NEW SECTION. Sec. 914 The following acts or parts of acts are
each repealed:
(1) RCW 82.04.055 (Selected business services) and 1997 c 304 s 3;
(2) RCW 82.04.150 ("Engaging in business") and 1961 c 15 s
82.04.150;
(3) RCW 82.04.4261 (Exemptions -- Federal small business innovation
research program) and 2004 c 2 s 9;
(4) RCW 82.04.4262 (Exemptions -- Federal small business technology
transfer program) and 2004 c 2 s 10; and
(5) RCW 82.04.4263 (Exemptions -- Income received by the life
sciences discovery fund authority) and 2005 c 424 s 11.
Sec. 1001 RCW 82.19.010 and 1998 c 257 s 7 are each amended to
read as follows:
(((1))) In addition to any other taxes, there is hereby levied and
there shall be collected by the department of revenue from every person
for the privilege of engaging within this state in business as a
manufacturer, as a wholesaler, or as a retailer, a litter tax equal to
the value of products listed in RCW 82.19.020, including byproducts,
manufactured within this state, multiplied by fifteen one-thousandths
of one percent in the case of manufacturers, and equal to the gross
proceeds of sales of the products listed in RCW 82.19.020 that are sold
within this state multiplied by fifteen one-thousandths of one percent
in the case of wholesalers and retailers.
(((2) Beginning January 1999, and in January of every odd-numbered
year thereafter, the department shall submit to the appropriate
committees of the senate and the house of representatives a report on
compliance with the litter tax. The report shall address:))
(a) The litter tax reported voluntarily and litter tax assessed
through enforcement; and
(b) Total litter tax revenues reported on an industry basis.
(3) Beginning January 1999, the frequency and time of collection of
the tax will be changed to coincide with the reporting periods by
payers of their business and occupation tax.
Sec. 1002 RCW 82.19.050 and 2005 c 289 s 1 are each amended to
read as follows:
The litter tax imposed in this chapter does not apply to:
(1) The manufacture or sale of products for use and consumption
outside the state;
(2) The value of products or gross proceeds of the sales exempt
from tax under RCW 82.04.330(1) (a) or (b);
(3) The sale of products for resale by a qualified grocery
distribution cooperative to customer-owners of the grocery distribution
cooperative. For the purposes of this section, "qualified grocery
distribution cooperative" and "customer-owner" have the meanings given
in RCW 82.04.298;
(4) The sale of food or beverages by retailers that are sold solely
for immediate consumption indoors at the seller's place of business or
at a deck or patio at the seller's place of business, or indoors at an
eating area that is contiguous to the seller's place of business; or
(5)(a) The sale of prepared food or beverages by caterers where the
food or beverages are to be served for immediate consumption in or on
individual nonsingle use containers at premises occupied or controlled
by the customer.
(b) For the purposes of this subsection, the following definitions
apply:
(i) "Prepared food" has the same meaning as provided in RCW
82.08.0293.
(ii) "Nonsingle use container" means a receptacle for holding a
single individual's food or beverage that is designed to be used more
than once. Nonsingle use containers do not include pizza delivery bags
and similar insulated containers that do not directly contact the food.
Nonsingle use containers do not include plastic or paper plates or
other containers that are disposable.
(iii) "Caterer" means a person contracted to prepare food where the
final cooking or serving occurs at a location selected by the customer.
Sec. 1101 RCW 82.29A.130 and 2005 c 514 s 601 and 2005 c 170 s 1
are each reenacted and amended to read as follows:
The following leasehold interests shall be exempt from taxes
imposed pursuant to RCW 82.29A.030 and 82.29A.040:
(1) All leasehold interests constituting a part of the operating
properties of any public utility ((which)) that is assessed and taxed
as a public utility pursuant to chapter 84.12 RCW.
(2) All leasehold interests in facilities owned or used by a
school, college or university which leasehold provides housing for
students and which is otherwise exempt from taxation under provisions
of RCW 84.36.010 and 84.36.050. The exemption provided by this
subsection does not apply to leasehold interests in any portion of
student housing facilities that is not used to provide housing for
students.
(3) All leasehold interests of subsidized housing where the fee
ownership of such property is vested in the government of the United
States, or the state of Washington or any political subdivision thereof
but only if income qualification exists for such housing.
(4) All leasehold interests used for fair purposes of a nonprofit
fair association that sponsors or conducts a fair or fairs ((which))
that receive support from revenues collected pursuant to RCW 67.16.100
and allocated by the director of the department of agriculture where
the fee ownership of such property is vested in the government of the
United States, the state of Washington or any of its political
subdivisions((: PROVIDED, That)). However, this exemption shall not
apply to the leasehold interest of any sublessee of such nonprofit fair
association if such leasehold interest would be taxable if it were the
primary lease.
(5) All leasehold interests in any property of any public entity
used as a residence by an employee of that public entity who is
required as a condition of employment to live in the publicly owned
property.
(6) All leasehold interests held by enrolled Indians of lands owned
or held by any Indian or Indian tribe where the fee ownership of such
property is vested in or held in trust by the United States and which
are not subleased to other than to a lessee which would qualify
pursuant to this chapter, RCW 84.36.451 and 84.40.175.
(7) All leasehold interests in any real property of any Indian or
Indian tribe, band, or community that is held in trust by the United
States or is subject to a restriction against alienation imposed by the
United States: PROVIDED, That this exemption shall apply only where it
is determined that contract rent paid is greater than or equal to
ninety percent of fair market rental, to be determined by the
department of revenue using the same criteria used to establish taxable
rent in RCW 82.29A.020(2)(b).
(8) All leasehold interests for which annual taxable rent is less
than two hundred fifty dollars per year. For purposes of this
subsection leasehold interests held by the same lessee in contiguous
properties owned by the same lessor shall be deemed a single leasehold
interest.
(9) All leasehold interests which give use or possession of the
leased property for a continuous period of less than thirty days((:
PROVIDED, That)). For purposes of this subsection, successive leases
or lease renewals giving substantially continuous use ((of)) or
possession of the same property to the same lessee shall be deemed a
single leasehold interest((: PROVIDED FURTHER, That)). No leasehold
interest shall be deemed to give use or possession for a period of less
than thirty days solely by virtue of the reservation by the public
lessor of the right to use the property or to allow third parties to
use the property on an occasional, temporary basis.
(10) All leasehold interests under month-to-month leases in
residential units rented for residential purposes of the lessee pending
destruction or removal for the purpose of constructing a public highway
or building.
(11) All leasehold interests in any publicly owned real or personal
property to the extent such leasehold interests arises solely by virtue
of a contract for public improvements or work executed under the public
works statutes of this state or of the United States between the public
owner of the property and a contractor.
(12) All leasehold interests that give use or possession of state
adult correctional facilities for the purposes of operating
correctional industries under RCW 72.09.100.
(13) All leasehold interests used to provide organized and
supervised recreational activities for disabled persons of all ages in
a camp facility and for public recreational purposes by a nonprofit
organization, association, or corporation that would be exempt from
property tax under RCW 84.36.030(1) if it owned the property. If the
publicly owned property is used for any taxable purpose, the leasehold
excise taxes set forth in RCW 82.29A.030 and 82.29A.040 shall be
imposed and shall be apportioned accordingly.
(14) All leasehold interests in the public or entertainment areas
of a baseball stadium with natural turf and a retractable roof or
canopy that is in a county with a population of over one million, that
has a seating capacity of over forty thousand, and that is constructed
on or after January 1, 1995. "Public or entertainment areas" include
ticket sales areas, ramps and stairs, lobbies and concourses, parking
areas, concession areas, restaurants, hospitality and stadium club
areas, kitchens or other work areas primarily servicing other public or
entertainment areas, public rest room areas, press and media areas,
control booths, broadcast and production areas, retail sales areas,
museum and exhibit areas, scoreboards or other public displays, storage
areas, loading, staging, and servicing areas, seating areas and suites,
the playing field, and any other areas to which the public has access
or which are used for the production of the entertainment event or
other public usage, and any other personal property used for these
purposes. "Public or entertainment areas" does not include locker
rooms or private offices exclusively used by the lessee.
(15) All leasehold interests in the public or entertainment areas
of a stadium and exhibition center, as defined in RCW 36.102.010, that
is constructed on or after January 1, 1998. For the purposes of this
subsection, "public or entertainment areas" has the same meaning as in
subsection (14) of this section, and includes exhibition areas.
(16) All leasehold interests in public facilities district((s))
facilities, as ((provided)) described in ((chapter 36.100 or 35.57))
RCW 36.100.030(1) or 35.57.020(1).
(17) All leasehold interests in property that is: (a) Owned by a
municipal corporation; (b) listed on any federal or state register of
historical sites; and (c) wholly contained within a designated national
historic reserve under 16 U.S.C. Sec. 461.
(18) All leasehold interests in the public or entertainment areas
of an amphitheater if a private entity is responsible for one hundred
percent of the cost of constructing the amphitheater which is not
reimbursed by the public owner, both the public owner and the private
lessee sponsor events at the facility on a regular basis, the lessee is
responsible under the lease or agreement to operate and maintain the
facility, and the amphitheater has a seating capacity of over seventeen
thousand reserved and general admission seats and is in a county with
a population of over three hundred fifty thousand, but less than four
hundred twenty-five thousand. For the purposes of this subsection,
"public or entertainment areas" include box offices or other ticket
sales areas, entrance gates, ramps and stairs, lobbies and concourses,
parking areas, concession areas, restaurants, hospitality areas,
kitchens or other work areas primarily servicing other public or
entertainment areas, public rest room areas, press and media areas,
control booths, broadcast and production areas, retail sales areas,
museum and exhibit areas, scoreboards or other public displays, storage
areas, loading, staging, and servicing areas, seating areas including
lawn seating areas and suites, stages, and any other areas to which the
public has access or which are used for the production of the
entertainment event or other public usage, and any other personal
property used for these purposes. "Public or entertainment areas" does
not include office areas used predominately by the lessee.
NEW SECTION. Sec. 1102 RCW 82.29A.150 (Cancellation of taxes
levied for collection in 1976) and 1975-'76 2nd ex.s. c 61 s 17 are
each repealed.
Sec. 1201 RCW 82.32.033 and 2004 c 253 s 1 are each amended to
read as follows:
(1) A promoter of a special event within the state of Washington
shall not permit a vendor to make or solicit retail sales of tangible
personal property or services at the special event unless the promoter
makes a good faith effort to obtain verification that the vendor has
obtained a certificate of registration from the department.
(2) A promoter of a special event shall:
(a) Keep, in addition to the records required under RCW 82.32.070,
a record of the dates and place of each special event, and the name,
address, and registration certificate number of each vendor permitted
to make or solicit retail sales of tangible personal property or
services at the special event. The record of the date and place of a
special event, and the name, address, and registration certificate
number of each vendor at the event shall be preserved for a period of
one year from the date of a special event; and
(b) Provide to the department, within twenty days of receipt of a
written request from the department, a list of vendors permitted to
make or solicit retail sales of tangible personal property or services.
The list shall be in a form and contain such information as the
department may require, and shall include the date and place of the
event, and the name, address, and registration certificate number of
each vendor.
(3) If a promoter fails to make a good faith effort to comply with
the provisions of this section, the promoter is liable for the
penalties provided in this subsection (3).
(a) If a promoter fails to make a good faith effort to comply with
the provisions of subsection (1) of this section, the department shall
impose a penalty of one hundred dollars for each vendor permitted to
make or solicit retail sales of tangible personal property or services
at the special event.
(b) If a promoter fails to make a good faith effort to comply with
the provisions of subsection (2)(b) of this section, the department
shall impose a penalty of:
(i) Two hundred fifty dollars if the information requested is not
received by the department within twenty days of the department's
written request; and
(ii) One hundred dollars for each vendor for whom the information
as required by subsection (2)(b) of this section is not provided to the
department.
(4) The aggregate of penalties imposed under subsection (3) of this
section may not exceed two thousand five hundred dollars for a special
event if the promoter has not previously been penalized under this
section. Under no circumstances is a promoter liable for sales tax or
business and occupation tax not remitted to the department by a vendor
at a special event.
(5) The department shall notify a promoter by mail of any penalty
imposed under this section, and the penalty shall be due within thirty
days from the date of the notice. If any penalty imposed under this
section is not received by the department by the due date, there shall
be assessed interest on the unpaid amount beginning the day following
the due date until the penalty is paid in full. The rate of interest
shall be computed on a daily basis on the amount of outstanding penalty
at the rate as computed under RCW 82.32.050(2). The rate computed
shall be adjusted annually in the same manner as provided in RCW
82.32.050(1)(c).
(6) For purposes of this section:
(a) "Promoter" means a person who organizes, operates, or sponsors
a special event and who contracts with vendors for participation in the
special event.
(b) "Special event" means an entertainment, amusement,
recreational, educational, or marketing event, whether held on a
regular or irregular basis, at which more than one vendor makes or
solicits retail sales of tangible personal property or services. The
term includes, but is not limited to: Auto shows, recreational vehicle
shows, boat shows, home shows, garden shows, hunting and fishing shows,
stamp shows, comic book shows, sports memorabilia shows, craft shows,
art shows, antique shows, flea markets, exhibitions, festivals,
concerts, swap meets, bazaars, carnivals, athletic contests, circuses,
fairs, or other similar activities. "Special event" does not include
an event that is organized for the exclusive benefit of any nonprofit
organization as defined in RCW 82.04.3651. An event is organized for
the exclusive benefit of a nonprofit organization if all of the gross
proceeds of retail sales of all vendors at the event inure to the
benefit of the nonprofit organization on whose behalf the event is
being held. "Special event" does not include athletic contests that
involve competition between teams, when such competition consists of
more than five contests in a calendar year by at least one team at the
same facility or site.
(c) "Vendor" means a person who, at a special event, makes or
solicits retail sales of tangible personal property or services.
"Vendor" does not include any person who is not required to obtain a
certificate of registration with the department under RCW 82.32.030.
(7) "Good faith effort to comply" and "good faith effort to obtain"
may be shown by, but is not limited to, circumstances where a promoter:
(a) Includes a statement on all written contracts with its vendors
that a valid registration certificate number issued by the department
of revenue is required for participation in the special event and
requires vendors to indicate their registration certificate number on
these contracts; and
(b) Provides the department with a list of vendors and their
associated registration certificate numbers as provided in subsection
(2)(b) of this section.
(8) This section does not apply to:
(a) A special event whose promoter does not charge more than two
hundred dollars for a vendor to participate in a special event;
(b) A special event whose promoter charges a percentage of sales
instead of, or in addition to, a flat charge for a vendor to
participate in a special event if the promoter, in good faith, believes
that no vendor will pay more than two hundred dollars to participate in
the special event; or
(c) A person who does not organize, operate, or sponsor a special
event, but only provides a venue, supplies, furnishings, fixtures,
equipment, or services to a promoter of a special event.
Sec. 1202 RCW 82.32.105 and 1998 c 304 s 13 are each amended to
read as follows:
(1) If the department of revenue finds that the payment by a
taxpayer of a tax less than that properly due or the failure of a
taxpayer to pay any tax by the due date was the result of circumstances
beyond the control of the taxpayer, the department of revenue shall
waive or cancel any penalties imposed under this chapter with respect
to such tax.
(2) The department shall waive or cancel the penalty imposed under
RCW 82.32.090(1) when the circumstances under which the delinquency
occurred do not qualify for waiver or cancellation under subsection (1)
of this section if:
(a) The taxpayer requests the waiver for a tax return required to
be filed under RCW 82.32.045, 82.14B.061, 82.23B.020, 82.27.060,
82.29A.050, 82.72.050, or 84.33.086; and
(b) The taxpayer has timely filed and remitted payment on all tax
returns due for that tax program for a period of twenty-four months
immediately preceding the period covered by the return for which the
waiver is being requested.
(3) The department shall waive or cancel interest imposed under
this chapter if:
(a) The failure to timely pay the tax was the direct result of
written instructions given the taxpayer by the department; or
(b) The extension of a due date for payment of an assessment of
deficiency was not at the request of the taxpayer and was for the sole
convenience of the department.
(4) The department of revenue shall adopt rules for the waiver or
cancellation of penalties and interest imposed by this chapter.
Sec. 1203 RCW 82.32.330 and 2005 c 326 s 1 and 2005 c 274 s 361
are each reenacted and amended to read as follows:
(1) For purposes of this section:
(a) "Disclose" means to make known to any person in any manner
whatever a return or tax information;
(b) "Return" means a tax or information return or claim for refund
required by, or provided for or permitted under, the laws of this state
which is filed with the department of revenue by, on behalf of, or with
respect to a person, and any amendment or supplement thereto, including
supporting schedules, attachments, or lists that are supplemental to,
or part of, the return so filed;
(c) "Tax information" means (i) a taxpayer's identity, (ii) the
nature, source, or amount of the taxpayer's income, payments, receipts,
deductions, exemptions, credits, assets, liabilities, net worth, tax
liability deficiencies, overassessments, or tax payments, whether taken
from the taxpayer's books and records or any other source, (iii)
whether the taxpayer's return was, is being, or will be examined or
subject to other investigation or processing, (iv) a part of a written
determination that is not designated as a precedent and disclosed
pursuant to RCW 82.32.410, or a background file document relating to a
written determination, and (v) other data received by, recorded by,
prepared by, furnished to, or collected by the department of revenue
with respect to the determination of the existence, or possible
existence, of liability, or the amount thereof, of a person under the
laws of this state for a tax, penalty, interest, fine, forfeiture, or
other imposition, or offense: PROVIDED, That data, material, or
documents that do not disclose information related to a specific or
identifiable taxpayer do not constitute tax information under this
section. Except as provided by RCW 82.32.410, nothing in this chapter
shall require any person possessing data, material, or documents made
confidential and privileged by this section to delete information from
such data, material, or documents so as to permit its disclosure;
(d) "State agency" means every Washington state office, department,
division, bureau, board, commission, or other state agency;
(e) "Taxpayer identity" means the taxpayer's name, address,
telephone number, registration number, or any combination thereof, or
any other information disclosing the identity of the taxpayer; and
(f) "Department" means the department of revenue or its officer,
agent, employee, or representative.
(2) Returns and tax information shall be confidential and
privileged, and except as authorized by this section, neither the
department of revenue nor any other person may disclose any return or
tax information.
(3) This section does not prohibit the department of revenue from:
(a) Disclosing such return or tax information in a civil or
criminal judicial proceeding or an administrative proceeding:
(i) In respect of any tax imposed under the laws of this state if
the taxpayer or its officer or other person liable under Title 82 RCW
is a party in the proceeding; or
(ii) In which the taxpayer about whom such return or tax
information is sought and another state agency are adverse parties in
the proceeding;
(b) Disclosing, subject to such requirements and conditions as the
director shall prescribe by rules adopted pursuant to chapter 34.05
RCW, such return or tax information regarding a taxpayer to such
taxpayer or to such person or persons as that taxpayer may designate in
a request for, or consent to, such disclosure, or to any other person,
at the taxpayer's request, to the extent necessary to comply with a
request for information or assistance made by the taxpayer to such
other person: PROVIDED, That tax information not received from the
taxpayer shall not be so disclosed if the director determines that such
disclosure would compromise any investigation or litigation by any
federal, state, or local government agency in connection with the civil
or criminal liability of the taxpayer or another person, or that such
disclosure would identify a confidential informant, or that such
disclosure is contrary to any agreement entered into by the department
that provides for the reciprocal exchange of information with other
government agencies which agreement requires confidentiality with
respect to such information unless such information is required to be
disclosed to the taxpayer by the order of any court;
(c) Disclosing the name of a taxpayer with a deficiency greater
than five thousand dollars and against whom a warrant under RCW
82.32.210 has been either issued or filed and remains outstanding for
a period of at least ten working days. The department shall not be
required to disclose any information under this subsection if a
taxpayer: (i) Has been issued a tax assessment; (ii) has been issued
a warrant that has not been filed; and (iii) has entered a deferred
payment arrangement with the department of revenue and is making
payments upon such deficiency that will fully satisfy the indebtedness
within twelve months;
(d) Disclosing the name of a taxpayer with a deficiency greater
than five thousand dollars and against whom a warrant under RCW
82.32.210 has been filed with a court of record and remains
outstanding;
(e) Publishing statistics so classified as to prevent the
identification of particular returns or reports or items thereof;
(f) Disclosing such return or tax information, for official
purposes only, to the governor or attorney general, or to any state
agency, or to any committee or subcommittee of the legislature dealing
with matters of taxation, revenue, trade, commerce, the control of
industry or the professions;
(g) Permitting the department of revenue's records to be audited
and examined by the proper state officer, his or her agents and
employees;
(h) Disclosing any such return or tax information to a peace
officer as defined in RCW 9A.04.110 or county prosecuting attorney, for
official purposes. The disclosure may be made only in response to a
search warrant, subpoena, or other court order, unless the disclosure
is for the purpose of criminal tax enforcement. A peace officer or
county prosecuting attorney who receives the return or tax information
may disclose that return or tax information only for use in the
investigation and a related court proceeding, or in the court
proceeding for which the return or tax information originally was
sought;
(i) Disclosing any such return or tax information to the proper
officer of the internal revenue service of the United States, the
Canadian government or provincial governments of Canada, or to the
proper officer of the tax department of any state or city or town or
county, for official purposes, but only if the statutes of the United
States, Canada or its provincial governments, or of such other state or
city or town or county, as the case may be, grants substantially
similar privileges to the proper officers of this state;
(j) Disclosing any such return or tax information to the Department
of Justice, including the Bureau of Alcohol, Tobacco ((and)), Firearms
((of the Department of the Treasury)) and Explosives within the
Department of Justice, the Department of Defense, the Immigration and
Customs Enforcement and the Customs and Border Protection agencies of
the United States ((Customs Service)) Department of Homeland Security,
the Coast Guard of the United States, and the United States Department
of Transportation, or any authorized representative thereof, for
official purposes;
(k) Publishing or otherwise disclosing the text of a written
determination designated by the director as a precedent pursuant to RCW
82.32.410;
(l) Disclosing, in a manner that is not associated with other tax
information, the taxpayer name, entity type, business address, mailing
address, revenue tax registration numbers, North American industry
classification system or standard industrial classification code of a
taxpayer, and the dates of opening and closing of business. This
subsection shall not be construed as giving authority to the department
to give, sell, or provide access to any list of taxpayers for any
commercial purpose;
(m) Disclosing such return or tax information that is also
maintained by another Washington state or local governmental agency as
a public record available for inspection and copying under the
provisions of chapter 42.56 RCW or is a document maintained by a court
of record not otherwise prohibited from disclosure;
(n) Disclosing such return or tax information to the United States
department of agriculture for the limited purpose of investigating food
stamp fraud by retailers;
(o) Disclosing to a financial institution, escrow company, or title
company, in connection with specific real property that is the subject
of a real estate transaction, current amounts due the department for a
filed tax warrant, judgment, or lien against the real property;
(p) Disclosing to a person against whom the department has asserted
liability as a successor under RCW 82.32.140 return or tax information
pertaining to the specific business of the taxpayer to which the person
has succeeded; ((or))
(q) Disclosing to a county or city such return or tax information
in the possession of the department relating to the administration or
enforcement of the real estate excise tax imposed under chapter 82.45
RCW, including information regarding transactions exempt or otherwise
not subject to tax;
(r) Disclosing to a program as defined in RCW 82.73.010 the names
of applicants approved for credit under chapter 82.73 RCW based on a
proposed contribution to the program, the amount of the proposed
contribution contained in the application for credit, and the amount of
the approved credit; or
(s) Disclosing the least amount of return or tax information
necessary for the reports of the effectiveness of tax incentive
programs when the number of taxpayers included in the reports or any
part of the reports cannot be classified to prevent the identification
of taxpayers or particular returns, reports, tax information, or items
in the possession of the department.
(4)(a) The department may disclose return or taxpayer information
to a person under investigation or during any court or administrative
proceeding against a person under investigation as provided in this
subsection (4). The disclosure must be in connection with the
department's official duties relating to an audit, collection activity,
or a civil or criminal investigation. The disclosure may occur only
when the person under investigation and the person in possession of
data, materials, or documents are parties to the return or tax
information to be disclosed. The department may disclose return or tax
information such as invoices, contracts, bills, statements, resale or
exemption certificates, or checks. However, the department may not
disclose general ledgers, sales or cash receipt journals, check
registers, accounts receivable/payable ledgers, general journals,
financial statements, expert's workpapers, income tax returns, state
tax returns, tax return workpapers, or other similar data, materials,
or documents.
(b) Before disclosure of any tax return or tax information under
this subsection (4), the department shall, through written
correspondence, inform the person in possession of the data, materials,
or documents to be disclosed. The correspondence shall clearly
identify the data, materials, or documents to be disclosed. The
department may not disclose any tax return or tax information under
this subsection (4) until the time period allowed in (c) of this
subsection has expired or until the court has ruled on any challenge
brought under (c) of this subsection.
(c) The person in possession of the data, materials, or documents
to be disclosed by the department has twenty days from the receipt of
the written request required under (b) of this subsection to petition
the superior court of the county in which the petitioner resides for
injunctive relief. The court shall limit or deny the request of the
department if the court determines that:
(i) The data, materials, or documents sought for disclosure are
cumulative or duplicative, or are obtainable from some other source
that is more convenient, less burdensome, or less expensive;
(ii) The production of the data, materials, or documents sought
would be unduly burdensome or expensive, taking into account the needs
of the department, the amount in controversy, limitations on the
petitioner's resources, and the importance of the issues at stake; or
(iii) The data, materials, or documents sought for disclosure
contain trade secret information that, if disclosed, could harm the
petitioner.
(d) The department shall reimburse reasonable expenses for the
production of data, materials, or documents incurred by the person in
possession of the data, materials, or documents to be disclosed.
(e) Requesting information under (b) of this subsection that may
indicate that a taxpayer is under investigation does not constitute a
disclosure of tax return or tax information under this section.
(5) Any person acquiring knowledge of any return or tax information
in the course of his or her employment with the department of revenue
and any person acquiring knowledge of any return or tax information as
provided under subsection (3)(f), (g), (h), (i), (j), or (n) of this
section, who discloses any such return or tax information to another
person not entitled to knowledge of such return or tax information
under the provisions of this section, is guilty of a misdemeanor. If
the person guilty of such violation is an officer or employee of the
state, such person shall forfeit such office or employment and shall be
incapable of holding any public office or employment in this state for
a period of two years thereafter.
Sec. 1204 RCW 82.32.550 and 2003 2nd sp.s. c 1 s 17 are each
amended to read as follows:
(1)(a) Chapter 1, Laws of 2003 2nd sp. sess. takes effect on the
first day of the month in which the governor and a manufacturer of
commercial airplanes sign a memorandum of agreement regarding an
affirmative final decision to site a significant commercial airplane
final assembly facility in Washington state. The department shall
provide notice of the effective date of chapter 1, Laws of 2003 2nd sp.
sess. to affected taxpayers, the legislature, and others as deemed
appropriate by the department.
(b) Chapter 1, Laws of 2003 2nd sp. sess. is contingent upon the
siting of a significant commercial airplane final assembly facility in
the state of Washington. If a memorandum of agreement under subsection
(1) of this section is not signed by June 30, 2005, chapter 1, Laws of
2003 2nd sp. sess. is null and void.
(c)(i) The department shall make a determination regarding the date
final assembly of a superefficient airplane begins in Washington state.
The rates in RCW 82.04.260(((13))) (11) (a)(ii) and (b)(ii) take effect
the first day of the month such assembly begins, or July 1, 2007,
whichever is later. The department shall provide notice of the
effective date of such rates to affected taxpayers, the legislature,
and others as deemed appropriate by the department.
(ii) If on December 31, 2007, final assembly of a superefficient
airplane has not begun in Washington state, the department shall
provide notice of such to affected taxpayers, the legislature, and
others as deemed appropriate by the department.
(2) The definitions in this subsection apply throughout this
section.
(a) "Commercial airplane" has its ordinary meaning, which is an
airplane certified by the federal aviation administration for
transporting persons or property, and any military derivative of such
an airplane.
(b) "Component" means a part or system certified by the federal
aviation administration for installation or assembly into a commercial
airplane.
(c) "Final assembly of a superefficient airplane" means the
activity of assembling an airplane from components parts necessary for
its mechanical operation such that the finished commercial airplane is
ready to deliver to the ultimate consumer.
(d) "Significant commercial airplane final assembly facility" means
a location with the capacity to produce at least thirty-six
superefficient airplanes a year.
(e) "Siting" means a final decision by a manufacturer to locate a
significant commercial airplane final assembly facility in Washington
state.
(f) "Superefficient airplane" means a twin aisle airplane that
carries between two hundred and three hundred fifty passengers, with a
range of more than seven thousand two hundred nautical miles, a
cruising speed of approximately mach .85, and that uses fifteen to
twenty percent less fuel than other similar airplanes on the market.
NEW SECTION. Sec. 1205 A new section is added to chapter 82.32
RCW to read as follows:
(1) Whenever the department is required to provide any assessment,
notice, or other information to persons by regular mail, the department
may instead provide the assessment, notice, or other information
electronically if the following conditions are met:
(a)(i) The person entitled to receive the information is registered
with the department to file its returns electronically using the
department's secure internet-based electronic filing system, or is
registered to communicate electronically with the department using the
department's secure messaging service; or
(ii) The person entitled to receive the information has authorized
the department to provide the assessment, notice, or other information
electronically; and
(b) If the assessment, notice, or other information is subject to
the confidentiality provisions of RCW 82.32.330, the manner of
electronic communication must protect the information from unauthorized
disclosure. The provisions of this subsection (1)(b) may be waived by
a taxpayer. Such waiver must be in writing and may be provided to the
department electronically or by mail.
(2) A person may authorize the department under subsection
(1)(a)(ii) of this section to provide a particular item of information
electronically or may give blanket authorization to provide any item of
information electronically. Such blanket authorization will continue
until revoked in writing by the taxpayer. Such revocation may be
provided to the department by mail or electronically in a manner
provided or approved by the department.
(3) Any assessment, notice, or other information provided by the
department electronically to a person is deemed to be received by the
taxpayer on the date that the department electronically sends the
information to the person or electronically notifies the person that
the information is available to be accessed by the person.
Sec. 1301 RCW 82.12.045 and 2003 c 361 s 303 are each amended to
read as follows:
(1) ((In the collection of the use tax on motor vehicles,)) (a) The
department ((of revenue)) may designate the county auditors of the
several counties of the state as its collecting agents in the
collection of the use tax on: (i) Tangible personal property
consisting of vehicles as defined in RCW 46.04.670, off-road vehicles
as defined in RCW 46.09.020, snowmobiles as defined in RCW 46.10.010,
or vessels as defined in RCW 88.02.010; and (ii) any extended warranty
or maintenance agreement for any item of tangible personal property
described in (a)(i) of this subsection.
(b) Upon such designation, ((it shall be the duty of)) each county
auditor ((to)) shall collect the tax ((at the time)) when an applicant
applies for the registration of, and transfer of certificate of
ownership or vessel certificate of title to, the ((motor vehicle))
property, except ((in the following instances)) where the:
(((a) Where the)) (i) Applicant exhibits a dealer's report of sale
showing that ((the retail sales tax has been collected by)) the dealer
has collected the retail sales tax on the tangible personal property in
question and on any extended warranty or maintenance agreement on that
tangible personal property;
(((b) Where the)) (ii) Application is for the renewal of
registration;
(((c) Where the)) (iii) Applicant presents a written statement
signed by the department ((of revenue)), or its duly authorized agent
showing that no use tax is legally due; or
(((d) Where the)) (iv) Applicant presents satisfactory evidence
showing that the applicant has paid the retail sales tax or the use tax
((has been paid by the applicant)) on the ((vehicle)) tangible personal
property in question and on any extended warranty or maintenance
agreement on that tangible personal property.
(2) ((The term "motor vehicle," as used in this section means and
includes all motor vehicles, trailers and semitrailers used, or of a
type designed primarily to be used, upon the public streets and
highways, for the convenience or pleasure of the owner, or for the
conveyance, for hire or otherwise, of persons or property, including
fixed loads, facilities for human habitation, and vehicles carrying
exempt licenses.)) Every applicant applying for
registration and transfer of certificate of ownership or vessel
certificate of title who is subject to payment of tax under this
section ((
(3) It shall be the duty ofto)) shall declare upon the application the value of the
((vehicle)) property for which application is made, which shall consist
of the consideration paid or contracted to be paid therefor.
(((4) Each county auditor who acts as agent of the department of
revenue shall at the time of)) (3) When remitting license fee receipts
on ((motor vehicles)) tangible personal property subject to the
provisions of this section, each county auditor shall pay over and
account to the state treasurer for all use tax revenue collected under
this section((, after first deducting as)). Each county auditor may
deduct a collection fee ((the sum)) of two dollars for each ((motor
vehicle)) transfer of personal property upon which the tax ((has been))
was collected. Except as provided in subsection (6) of this section,
the state treasurer shall credit all revenue received ((by the state
treasurer)) under this section ((shall be credited)) to the general
fund. Each county auditor shall deposit the ((auditor's)) collection
fee ((shall be deposited)) in the county current expense fund. A
duplicate of the county auditor's transmittal report to the state
treasurer shall be forwarded ((forthwith)) immediately to the
department ((of revenue)).
(((5))) (4) Any applicant who ((has)) paid use tax to a county
auditor under this section may apply to the department ((of revenue))
for refund ((thereof)) if ((he or she)) that person has reason to
believe that such tax was not legally due and owing. No refund shall
be allowed unless application therefor is received by the department
((of revenue)) within the statutory period for assessment of taxes,
penalties, or interest prescribed by RCW 82.32.050(3). Upon receipt of
an application for refund the department ((of revenue)) shall consider
the same and issue its order either granting or denying it and if
refund is denied, the taxpayer ((shall have the right of)) may appeal
as provided in RCW 82.32.170((,)) and 82.32.180 ((and 82.32.190)).
(((6))) (5) The provisions of this section shall be construed as
cumulative of other methods prescribed in ((chapters 82.04 to 82.32
RCW, inclusive,)) this title for the collection of the tax imposed by
this chapter. The department ((of revenue shall have power to
promulgate such)) may adopt rules ((as may be)) necessary to administer
the provisions of this section. Any duties required by this section to
be performed by the county auditor may be performed by the director of
licensing but no collection fee shall be deductible by said director in
remitting use tax revenue to the state treasurer.
(((7))) (6) The use tax revenue collected on the rate provided in
RCW 82.08.020(3) shall be deposited in the multimodal transportation
account under RCW 47.66.070.
Sec. 1401 RCW 84.33.140 and 2003 c 170 s 5 are each amended to
read as follows:
(1) When land has been designated as forest land under RCW
84.33.130, a notation of the designation shall be made each year upon
the assessment and tax rolls. A copy of the notice of approval
together with the legal description or assessor's parcel numbers for
the land shall, at the expense of the applicant, be filed by the
assessor in the same manner as deeds are recorded.
(2) In preparing the assessment roll as of January 1, 2002, for
taxes payable in 2003 and each January 1st thereafter, the assessor
shall list each parcel of designated forest land at a value with
respect to the grade and class provided in this subsection and adjusted
as provided in subsection (3) of this section. The assessor shall
compute the assessed value of the land using the same assessment ratio
applied generally in computing the assessed value of other property in
the county. Values for the several grades of bare forest land shall be
as follows:
| LAND GRADE | OPERABILITY CLASS | VALUES PER ACRE |
| 1 | $234 | |
| 1 | 2 | 229 |
| 3 | 217 | |
| 4 | 157 | |
| 1 | 198 | |
| 2 | 2 | 190 |
| 3 | 183 | |
| 4 | 132 | |
| 1 | 154 | |
| 3 | 2 | 149 |
| 3 | 148 | |
| 4 | 113 | |
| 1 | 117 | |
| 4 | 2 | 114 |
| 3 | 113 | |
| 4 | 86 | |
| 1 | 85 | |
| 5 | 2 | 78 |
| 3 | 77 | |
| 4 | 52 | |
| 1 | 43 | |
| 6 | 2 | 39 |
| 3 | 39 | |
| 4 | 37 | |
| 1 | 21 | |
| 7 | 2 | 21 |
| 3 | 20 | |
| 4 | 20 | |
| 8 | 1 |
Sec. 1402 RCW 84.33.140 and 2005 c 303 s 13 are each amended to
read as follows:
(1) When land has been designated as forest land under RCW
84.33.130, a notation of the designation shall be made each year upon
the assessment and tax rolls. A copy of the notice of approval
together with the legal description or assessor's parcel numbers for
the land shall, at the expense of the applicant, be filed by the
assessor in the same manner as deeds are recorded.
(2) In preparing the assessment roll as of January 1, 2002, for
taxes payable in 2003 and each January 1st thereafter, the assessor
shall list each parcel of designated forest land at a value with
respect to the grade and class provided in this subsection and adjusted
as provided in subsection (3) of this section. The assessor shall
compute the assessed value of the land using the same assessment ratio
applied generally in computing the assessed value of other property in
the county. Values for the several grades of bare forest land shall be
as follows:
| LAND GRADE | OPERABILITY CLASS | VALUES PER ACRE |
| 1 | $234 | |
| 1 | 2 | 229 |
| 3 | 217 | |
| 4 | 157 | |
| 1 | 198 | |
| 2 | 2 | 190 |
| 3 | 183 | |
| 4 | 132 | |
| 1 | 154 | |
| 3 | 2 | 149 |
| 3 | 148 | |
| 4 | 113 | |
| 1 | 117 | |
| 4 | 2 | 114 |
| 3 | 113 | |
| 4 | 86 | |
| 1 | 85 | |
| 5 | 2 | 78 |
| 3 | 77 | |
| 4 | 52 | |
| 1 | 43 | |
| 6 | 2 | 39 |
| 3 | 39 | |
| 4 | 37 | |
| 1 | 21 | |
| 7 | 2 | 21 |
| 3 | 20 | |
| 4 | 20 | |
| 8 | 1 |
Sec. 1403 RCW 84.34.108 and 2003 c 170 s 6 are each amended to
read as follows:
(1) When land has once been classified under this chapter, a
notation of the classification shall be made each year upon the
assessment and tax rolls and the land shall be valued pursuant to RCW
84.34.060 or 84.34.065 until removal of all or a portion of the
classification by the assessor upon occurrence of any of the following:
(a) Receipt of notice from the owner to remove all or a portion of
the classification;
(b) Sale or transfer to an ownership, except a transfer that
resulted from a default in loan payments made to or secured by a
governmental agency that intends to or is required by law or regulation
to resell the property for the same use as before, making all or a
portion of the land exempt from ad valorem taxation;
(c) Sale or transfer of all or a portion of the land to a new
owner, unless the new owner has signed a notice of classification
continuance, except transfer to an owner who is an heir or devisee of
a deceased owner shall not, by itself, result in removal of
classification. The notice of continuance shall be on a form prepared
by the department. If the notice of continuance is not signed by the
new owner and attached to the real estate excise tax affidavit, all
additional taxes calculated pursuant to subsection (4) of this section
shall become due and payable by the seller or transferor at time of
sale. The auditor shall not accept an instrument of conveyance
regarding classified land for filing or recording unless the new owner
has signed the notice of continuance or the additional tax has been
paid, as evidenced by the real estate excise tax stamp affixed thereto
by the treasurer. The seller, transferor, or new owner may appeal the
new assessed valuation calculated under subsection (4) of this section
to the county board of equalization in accordance with the provisions
of RCW 84.40.038. Jurisdiction is hereby conferred on the county board
of equalization to hear these appeals;
(d) Determination by the assessor, after giving the owner written
notice and an opportunity to be heard, that all or a portion of the
land no longer meets the criteria for classification under this
chapter. The criteria for classification pursuant to this chapter
continue to apply after classification has been granted.
The granting authority, upon request of an assessor, shall provide
reasonable assistance to the assessor in making a determination whether
the land continues to meet the qualifications of RCW 84.34.020 (1) or
(3). The assistance shall be provided within thirty days of receipt of
the request.
(2) Land may not be removed from classification because of:
(a) The creation, sale, or transfer of forestry riparian easements
under RCW 76.13.120; or
(b) The creation, sale, or transfer of a fee interest or a
conservation easement for the riparian open space program under RCW
76.09.040.
(3) Within thirty days after such removal of all or a portion of
the land from current use classification, the assessor shall notify the
owner in writing, setting forth the reasons for the removal. The
seller, transferor, or owner may appeal the removal to the county board
of equalization in accordance with the provisions of RCW 84.40.038.
(4) Unless the removal is reversed on appeal, the assessor shall
revalue the affected land with reference to its true and fair value on
January 1st of the year of removal from classification. Both the
assessed valuation before and after the removal of classification shall
be listed and taxes shall be allocated according to that part of the
year to which each assessed valuation applies. Except as provided in
subsection (6) of this section, an additional tax, applicable interest,
and penalty shall be imposed which shall be due and payable to the
treasurer thirty days after the owner is notified of the amount of the
additional tax. As soon as possible, the assessor shall compute the
amount of additional tax, applicable interest, and penalty and the
treasurer shall mail notice to the owner of the amount thereof and the
date on which payment is due. The amount of the additional tax,
applicable interest, and penalty shall be determined as follows:
(a) The amount of additional tax shall be equal to the difference
between the property tax paid as "open space land(("))," "farm and
agricultural land(("))," or "timber land" and the amount of property
tax otherwise due and payable for the seven years last past had the
land not been so classified;
(b) The amount of applicable interest shall be equal to the
interest upon the amounts of the additional tax paid at the same
statutory rate charged on delinquent property taxes from the dates on
which the additional tax could have been paid without penalty if the
land had been assessed at a value without regard to this chapter;
(c) The amount of the penalty shall be as provided in RCW
84.34.080. The penalty shall not be imposed if the removal satisfies
the conditions of RCW 84.34.070.
(5) Additional tax, applicable interest, and penalty, shall become
a lien on the land which shall attach at the time the land is removed
from classification under this chapter and shall have priority to and
shall be fully paid and satisfied before any recognizance, mortgage,
judgment, debt, obligation or responsibility to or with which the land
may become charged or liable. This lien may be foreclosed upon
expiration of the same period after delinquency and in the same manner
provided by law for foreclosure of liens for delinquent real property
taxes as provided in RCW 84.64.050 ((now or as hereafter amended)).
Any additional tax unpaid on its due date shall thereupon become
delinquent. From the date of delinquency until paid, interest shall be
charged at the same rate applied by law to delinquent ad valorem
property taxes.
(6) The additional tax, applicable interest, and penalty specified
in subsection (4) of this section shall not be imposed if the removal
of classification pursuant to subsection (1) of this section resulted
solely from:
(a) Transfer to a government entity in exchange for other land
located within the state of Washington;
(b)(i) A taking through the exercise of the power of eminent
domain, or (ii) sale or transfer to an entity having the power of
eminent domain in anticipation of the exercise of such power, said
entity having manifested its intent in writing or by other official
action;
(c) A natural disaster such as a flood, windstorm, earthquake, or
other such calamity rather than by virtue of the act of the landowner
changing the use of the property;
(d) Official action by an agency of the state of Washington or by
the county or city within which the land is located which disallows the
present use of the land;
(e) Transfer of land to a church when the land would qualify for
exemption pursuant to RCW 84.36.020;
(f) Acquisition of property interests by state agencies or agencies
or organizations qualified under RCW 84.34.210 and 64.04.130 for the
purposes enumerated in those sections. At such time as these property
interests are not used for the purposes enumerated in RCW 84.34.210 and
64.04.130 the additional tax specified in subsection (4) of this
section shall be imposed;
(g) Removal of land classified as farm and agricultural land under
RCW 84.34.020(2)(e);
(h) Removal of land from classification after enactment of a
statutory exemption that qualifies the land for exemption and receipt
of notice from the owner to remove the land from classification;
(i) The creation, sale, or transfer of forestry riparian easements
under RCW 76.13.120;
(j) The creation, sale, or transfer of a fee interest or a
conservation easement for the riparian open space program under RCW
76.09.040; or
(k) The sale or transfer of land within two years after the death
of the owner of at least a fifty percent interest in the land if the
land has been assessed and valued as classified forest land, designated
as forest land under chapter 84.33 RCW, or classified under this
chapter continuously since 1993. The date of death shown on a death
certificate is the date used for the purposes of this subsection
(6)(k)((; or)).
(l) The sale or transfer of land after the death of the owner of at
least a fifty percent interest in the land if the land has been
assessed and valued as classified forest land, designated as forest
land under chapter 84.33 RCW, or classified under this chapter
continuously since 1993 and the sale or transfer takes place after July
22, 2001, and on or before July 22, 2003, and the death of the owner
occurred after January 1, 1991. The date of death shown on a death
certificate is the date used for the purpose of this subsection
(6)(l)
Sec. 1404 RCW 84.36.815 and 2001 c 126 s 4 are each amended to
read as follows:
In order to qualify for exempt status for any real or personal
property under this chapter except personal property under RCW
84.36.600, all foreign national governments; cemeteries;
nongovernmental nonprofit corporations, organizations, and
associations; hospitals owned and operated by a public hospital
district for purposes of exemption under RCW 84.36.040(2); and soil and
water conservation districts shall file an initial application on or
before March 31st with the state department of revenue. All
applications shall be filed on forms prescribed by the department and
shall be signed by an authorized agent of the applicant.
In order to requalify for exempt status, all applicants except
nonprofit cemeteries shall file an annual renewal declaration on or
before March 31st each year. The renewal declaration shall be on forms
prescribed by the department of revenue and shall contain ((an
affidavit)) a statement certifying the exempt status of the real or
personal property owned by the exempt organization. When an
organization acquires real property qualified for exemption or converts
real property to exempt status, ((such)) the organization shall file an
initial application for the property within sixty days following the
acquisition or conversion. If the application is filed after the
expiration of the sixty-day period a late filing penalty shall be
imposed ((pursuant to)) under RCW 84.36.825((, as now or hereafter
amended)).
When organizations acquire real property qualified for exemption or
convert real property to an exempt use, the property, upon approval of
the application for exemption, is entitled to a property tax exemption
for property taxes due and payable the following year. If the owner
has paid taxes for the year following the year the property qualified
for exemption, the owner is entitled to a refund of the amount paid on
the property so acquired or converted.
Sec. 1405 RCW 84.36.830 and 1998 c 310 s 1 are each amended to
read as follows:
The department of revenue shall review each application for
exemption and make a determination thereon prior to August 1st of the
assessment year for which such application is made((: PROVIDED, That
each)). However, exemption applications received after March 31st
shall be reviewed and a determination made thereon within thirty days
of the date received or by August 1st, whichever is later. The
department of revenue may request ((such)) additional relevant
information as it deems necessary. The department of revenue ((shall
make a physical inspection of)) may physically inspect the property and
satisfy itself as to the use of all parcels prior to approving or
denying the application, and thereafter at regular intervals designed
to insure compliance with this chapter. When the department of revenue
has examined the application and the subject property, it shall either
approve or deny the request and clearly state the reasons for denial in
written notification by mail to the applicant. The department shall
also notify the assessor of the county in which the property is
located. The county assessor shall place such property on the
assessment roll for the current year.
Sec. 1406 RCW 84.39.020 and 2005 c 253 s 2 are each amended to
read as follows:
(1) Each claimant applying for assistance under RCW 84.39.010 shall
file a claim with the department, on forms prescribed by the
department, no later than thirty days before the tax is due. The
department may waive this requirement for good cause shown. The
department shall supply forms to the county assessor to allow persons
to apply for the program at the county assessor's office.
(2) The claim shall designate the property to which the assistance
applies and shall include a statement setting forth (a) a list of all
members of the claimant's household, (b) facts establishing the
eligibility under this section, and (c) any other relevant information
required by the rules of the department. Each copy shall be signed by
the claimant subject to the penalties as provided in chapter 9A.72 RCW
for false swearing. The first claim shall include proof of the
claimant's age acceptable to the department.
(3) The following documentation shall be filed with a claim along
with any other documentation required by the department:
(a) The deceased veteran's DD 214 report of separation, or its
equivalent, that must be under honorable conditions;
(b) A copy of the applicant's certificate of marriage to the
deceased;
(c) A copy of the deceased veteran's death certificate; and
(d) A letter from the United States veterans' administration
certifying that the death of the veteran meets the requirements of RCW
84.39.010(2).
The department of veterans affairs shall assist an eligible widow
or widower in the preparation and submission of an application and the
procurement of necessary substantiating documentation.
(4) The department shall determine if each claimant is eligible
each year. Any applicant aggrieved by the department's denial of
assistance or the amount of the assistance granted may petition the
state board of tax appeals to review the denial and the board shall
consider any appeals to determine (a) if the claimant is entitled to
assistance and (b) the amount or portion thereof. Appeals from a
department of revenue decision must be made within thirty days after
the mailing of the approval or denial.
Sec. 1407 RCW 84.52.010 and 2005 c 122 s 2 are each amended to
read as follows:
Except as is permitted under RCW 84.55.050, all taxes shall be
levied or voted in specific amounts.
The rate percent of all taxes for state and county purposes, and
purposes of taxing districts coextensive with the county, shall be
determined, calculated, and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the county, as shown by the
completed tax rolls of the county, and the rate percent of all taxes
levied for purposes of taxing districts within any county shall be
determined, calculated, and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the taxing districts
respectively.
When a county assessor finds that the aggregate rate of tax levy on
any property, that is subject to the limitations set forth in RCW
84.52.043 or 84.52.050, exceeds the limitations provided in either of
these sections, the assessor shall recompute and establish a
consolidated levy in the following manner:
(1) The full certified rates of tax levy for state, county, county
road district, and city or town purposes shall be extended on the tax
rolls in amounts not exceeding the limitations established by law;
however any state levy shall take precedence over all other levies and
shall not be reduced for any purpose other than that required by RCW
84.55.010. If, as a result of the levies imposed under RCW
((84.52.125, 84.52.135, 36.54.130, 84.52.069, 84.34.230, the portion of
the levy by a metropolitan park district that was protected under RCW
84.52.120, and 84.52.105)) 36.54.130, 84.34.230, 84.52.069, 84.52.105,
the portion of the levy by a metropolitan park district that was
protected under RCW 84.52.120, 84.52.125, and 84.52.135, the combined
rate of regular property tax levies that are subject to the one percent
limitation exceeds one percent of the true and fair value of any
property, then these levies shall be reduced as follows:
(a) The portion of the levy by a fire protection district that is
protected under RCW 84.52.125 shall be reduced until the combined rate
no longer exceeds one percent of the true and fair value of any
property or shall be eliminated;
(b) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, the levy imposed by a county under
RCW 84.52.135 must be reduced until the combined rate no longer exceeds
one percent of the true and fair value of any property or must be
eliminated;
(c) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, the levy imposed by a ferry
district under RCW 36.54.130 must be reduced until the combined rate no
longer exceeds one percent of the true and fair value of any property
or must be eliminated;
(d) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, the portion of the levy by a
metropolitan park district that is protected under RCW 84.52.120 shall
be reduced until the combined rate no longer exceeds one percent of the
true and fair value of any property or shall be eliminated;
(e) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, then the levies imposed under RCW
84.34.230, 84.52.105, and any portion of the levy imposed under RCW
84.52.069 that is in excess of thirty cents per thousand dollars of
assessed value, shall be reduced on a pro rata basis until the combined
rate no longer exceeds one percent of the true and fair value of any
property or shall be eliminated; and
(f) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, then the thirty cents per thousand
dollars of assessed value of tax levy imposed under RCW 84.52.069 shall
be reduced until the combined rate no longer exceeds one percent of the
true and fair value of any property or eliminated.
(2) The certified rates of tax levy subject to these limitations by
all junior taxing districts imposing taxes on such property shall be
reduced or eliminated as follows to bring the consolidated levy of
taxes on such property within the provisions of these limitations:
(a) First, the certified property tax levy rates of those junior
taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100,
and 67.38.130 shall be reduced on a pro rata basis or eliminated;
(b) Second, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of flood control
zone districts shall be reduced on a pro rata basis or eliminated;
(c) Third, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of all other junior
taxing districts, other than fire protection districts, regional fire
protection service authorities, library districts, the first fifty cent
per thousand dollars of assessed valuation levies for metropolitan park
districts, and the first fifty cent per thousand dollars of assessed
valuation levies for public hospital districts, shall be reduced on a
pro rata basis or eliminated;
(d) Fourth, if the consolidated tax levy rate still exceeds these
limitations, the first fifty cent per thousand dollars of assessed
valuation levies for metropolitan park districts created on or after
January 1, 2002, shall be reduced on a pro rata basis or eliminated;
(e) Fifth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized to
((regional fire protection service authorities under RCW 52.26.140(1)
(b) and (c) and)) fire protection districts under RCW 52.16.140 and
52.16.160 and regional fire protection service authorities under RCW
52.26.140(1) (b) and (c) shall be reduced on a pro rata basis or
eliminated; and
(f) Sixth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized for fire
protection districts under RCW 52.16.130, regional fire protection
service authorities under RCW 52.26.140(1)(a), ((fire protection
districts under RCW 52.16.130,)) library districts, metropolitan park
districts created before January 1, 2002, under their first fifty cent
per thousand dollars of assessed valuation levy, and public hospital
districts under their first fifty cent per thousand dollars of assessed
valuation levy, shall be reduced on a pro rata basis or eliminated.
Sec. 1408 RCW 84.52.020 and 2005 c 52 s 1 are each amended to
read as follows:
It shall be the duty of the city council or other governing body of
every city, other than a city having a population of three hundred
thousand or more, the board of directors of school districts of the
first class, the superintendent of each educational service district
for each constituent second class school district, commissioners of
port districts, commissioners of metropolitan park districts, and of
all officials or boards of taxing districts within or coextensive with
any county required by law to certify to the county legislative
authority, for the purpose of levying district taxes, budgets or
estimates of the amounts to be raised by taxation on the assessed
valuation of the property in the city or district, through their chair
and clerk, or secretary, to make and file such certified budget or
estimates with the clerk of the county legislative authority on or
before the thirtieth day of November. However, if a statute specifies
a date other than the thirtieth day of November by which a taxing
district is required to file such information with the clerk of the
county legislative authority, the budget or estimates of the amounts to
be raised by taxation in the district shall be filed with the clerk on
or before the date in that statute, rather than the thirtieth of
November as provided in this section.
Sec. 1409 RCW 84.52.054 and 1986 c 133 s 2 are each amended to
read as follows:
The additional tax provided for in ((subparagraph (a) of the
seventeenth amendment to)) Article VII, section 2 of the state
Constitution ((as amended by Amendment 59 and as thereafter amended)),
and specifically authorized by RCW 84.52.052, ((as now or hereafter
amended, and RCW)) 84.52.053 ((and)), 84.52.0531, and 84.52.130, shall
be set forth in terms of dollars on the ballot of the proposition to be
submitted to the voters, together with an estimate of the dollar rate
of tax levy that will be required to produce the dollar amount; and the
county assessor, in spreading this tax upon the rolls, shall determine
the eventual dollar rate required to produce the amount of dollars so
voted upon, regardless of the estimate of dollar rate of tax levy
carried in said proposition. In the case of a school district or fire
protection district proposition for a particular period, the dollar
amount and the corresponding estimate of the dollar rate of tax levy
shall be set forth for each of the years in that period. The dollar
amount for each annual levy in the particular period may be equal or in
different amounts.
Sec. 1410 RCW 84.52.070 and 1994 c 81 s 86 are each amended to
read as follows:
It shall be the duty of the county legislative authority of each
county, on or before the ((thirtieth)) fifth day of ((November))
December in each year, to certify to the county assessor of the county
the amount of taxes levied upon the property in the county for county
purposes, and the respective amounts of taxes levied by the board for
each taxing district, within or coextensive with the county, for
district purposes, and it shall be the duty of the council of each city
having a population of three hundred thousand or more, and of the
council of each town, and of all officials or boards of taxing
districts within or coextensive with the county, authorized by law to
levy taxes directly and not through the county legislative authority,
on or before the ((thirtieth)) fifth day of ((November)) December in
each year, to certify to the county assessor of the county the amount
of taxes levied upon the property within the city, town, or district
for city, town, or district purposes. However, the certification
required under this section shall be delayed if a statute specifies a
date other than the fifth day of December by which a taxing district is
required to file a budget or estimates of the amounts to be raised by
taxation in accordance with RCW 84.52.020. If a levy amount is not
certified to the county assessor by the ((thirtieth)) fifth day of
((November)) December or any other date statutorily specified, the
county assessor shall use no more than the certified levy amount for
the previous year for the taxing district: PROVIDED, That this shall
not apply to the state levy or when the assessor has not certified
assessed values as required by RCW 84.48.130 at least twelve working
days prior to ((November 30th)) December 5th.
NEW SECTION. Sec. 1411 The following acts or parts of acts are
each repealed:
(1) RCW 84.55.012 (Reduction of property tax levy -- Setting amount
of future levies) and 1997 c 2 s 1 & 1995 2nd sp.s. c 13 s 2; and
(2) RCW 84.55.0121 (Reduction of property tax levy for collection
in 1998) and 1997 c 3 s 301.
NEW SECTION. Sec. 1501 A new section is added to chapter 82.04
RCW to read as follows:
(1) In computing tax, there may be deducted from the measure of tax
amounts derived from wholesale sales of:
(a) Motor vehicle fuel by a motor vehicle fuel distributor to
another motor vehicle fuel distributor, but only if the buyer purchases
a cumulative total of no more than ten million gallons of motor vehicle
fuel from the person claiming the deduction during the calendar year
for which the deduction is claimed; and
(b) Special fuel by a special fuel distributor to another special
fuel distributor, but only if the buyer purchases a cumulative total of
no more than ten million gallons of special fuel from the person
claiming the deduction during the calendar year for which the deduction
is claimed.
(2) This section does not apply to:
(a) A motor vehicle fuel distributor that is also a motor vehicle
fuel supplier, refiner, or terminal operator; and
(b) A special fuel distributor that is also a special fuel
supplier, refiner, or terminal operator.
(3) The definitions in RCW 82.36.010 and 82.38.020 apply to this
section.
NEW SECTION. Sec. 1601 (1) The legislature finds that the
state's retail sales tax on construction discourages capital investment
by new and existing Washington businesses. Without relief from the
state's retail sales tax on construction, Washington businesses in
certain sectors and areas will be adversely impacted. The legislature
recognizes the importance of such businesses for employment and
economic development in Washington state.
(2) In 1985 and 2004, the legislature found that there were several
areas in the state that are characterized by very high levels of
unemployment and poverty. The legislature further found that economic
stagnation was the primary cause of this high unemployment rate and
poverty. The legislature reaffirms that policies providing tax
incentives for manufacturing and research and development businesses in
these distressed areas are essential to promote economic stimulation,
economic growth, and new employment opportunities in these distressed
areas.
(3) In 1994 and 2004, the legislature found that high-wage,
high-skilled jobs were vital to the economic health of the state's
citizens. The legislature reaffirms that high-technology businesses
are a vital and growing source of high-wage, high-skilled jobs in this
state, and that the high-technology sector is a key component of the
state's effort to encourage economic diversification. The legislature
found that many high-technology businesses incur significant costs
associated with research and development and pilot scale manufacturing
many years before a marketable product can be produced, and that
current state tax policy discourages the growth of these companies by
taxing them long before they become profitable. The legislature
reaffirms that stimulating growth of high-technology businesses early
in their development cycle, when they are turning ideas into marketable
products, will build upon the state's established high-technology base,
creating additional research and development jobs and subsequent
manufacturing facilities.
(4) In 2005, the legislature found that the fruit and vegetable
processing industry was important to the Washington state economy. The
legislature further found that businesses engaged in fruit and
vegetable processing are often located in areas in need of economic
stimulation and new employment opportunities. The legislature
reaffirms that state policies providing tax incentives for economic
growth in the fruit and vegetable processing industry are essential.
(5) For these reasons, the legislature established tax incentive
programs to defer retail sales and use tax on investments in buildings
and machinery and equipment used by the businesses in this section. To
further encourage investments, the legislature subsequently modified
the deferral programs to authorize the waiver of the deferred sales and
use tax if the business fulfilled certain requirements, to recapture
the deferred sales and use tax if the business failed to meet those
requirements, and to clarify definitions. These subsequent
modifications to the deferral programs have led to inconsistencies
between programs that confuse taxpayers and complicate administration.
Therefore, the legislature declares that these programs must be
consolidated and simplified to ensure that taxpayers receive consistent
treatment and benefits under these tax deferral programs.
(6) The legislature further declares that tax incentives should be
subject to the same rigorous requirements for efficiency and
accountability as are other expenditure programs, and that tax
incentives should therefore be focused to provide the greatest possible
return on the state's investment.
NEW SECTION. Sec. 1602 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Applicant" means a person applying for a tax deferral under
this chapter.
(2) "Department" means the department of revenue.
(3)(a) "Eligible investment project" means an investment project
used in qualified activities.
(i) The lessor or owner of a qualified building is not eligible for
a deferral unless the underlying ownership of the buildings, machinery,
and equipment vests exclusively in the same person; or
(ii)(A) The lessee that receives the economic benefit of the
deferral agrees in writing with the department to file the complete
annual survey under section 1605 of this act; and
(B) The economic benefit of the deferral is passed to the lessee,
is no less than the amount of tax deferred by the lessor, and is
evidenced by any type of payment, credit, or any other financial
arrangement between the lessor or owner of the qualified building and
the lessee.
(b) "Eligible investment project" does not include: (i) 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 (ii) investment projects to replace qualified
machinery and equipment that have already received deferrals under this
chapter or chapters 82.60, 82.63, or 82.74 RCW.
(4)(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 (3)(a)(ii)(B) 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 (3)(a)(ii)(B) 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 includes more than one qualified
building, initiation of construction applies separately to each
qualified building.
(5) "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) "Operationally complete" means that the investment project is
capable of being used for its intended purpose as described in the
application.
(7) "Person" has the meaning given in RCW 82.04.030. For the
purpose of the qualified activities of high-technology research and
development as defined in subsection (8)(b) of this section, "person"
also includes state universities as defined in RCW 28B.10.016.
(8) "Qualified activities" means the activities described in (a),
(b), and (c) of this subsection only.
(a)(i) "Qualified activities" includes manufacturing or research
and development in an eligible area.
(ii) For purposes of (a) of this subsection, the following
definitions apply:
(A) "Eligible area" means a rural county as defined in RCW
82.14.370. "Eligible area" also means a designated community
empowerment zone approved under RCW 43.31C.020 or a county containing
a community empowerment zone, if, in addition to all other provisions
and requirements of this chapter, the applicant establishes that at the
time the project is operationally complete:
(I) 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;
(II) 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 (8)(a)(ii)(A), "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 subsection (8)(a)(ii)(A). The persons must be hired after the
date the application is filed with the department; and
(III) 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 department shall assess interest, but not penalties, on
amounts due under this subsection (8)(a)(ii)(A). The interest shall be
assessed at the rate provided for delinquent taxes under chapter 82.32
RCW, retroactively to the date of deferral, and shall accrue until the
deferred taxes due are repaid.
(B) "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.
(C) "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
(8)(a)(ii)(C), "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.
(D) "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.
(b)(i) "Qualified activities" includes high-technology research and
development and pilot scale manufacturing.
(ii) For purposes of (b) of this subsection, the following
definitions apply:
(A) "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.
(B) "High technology" means technology in the fields of advanced
computing, advanced materials, biotechnology, electronic device
technology, and environmental technology.
(C) "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.
(D) "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.
(E) "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.
(F) "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.
(G) "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.
(H) "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 (8)(b)(ii)(H), "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.
(c)(i) "Qualified activities" includes fresh fruit and vegetable
processing, cold storage warehousing as related to fresh fruit and
vegetable processing, and research and development activities as
related to fresh fruit and vegetable processing or cold storage
warehousing.
(ii) For purposes of (c) of this subsection, the following
definitions apply:
(A) "Fresh fruit and vegetable processing" means manufacturing as
defined in RCW 82.04.120 which consists of the canning, preserving,
freezing, processing, or dehydrating fresh fruits and/or vegetables.
(B) "Cold storage warehouse" means a storage warehouse owned or
operated by a wholesaler or third-party warehouser as those terms are
defined in RCW 82.08.820 to store fresh and/or frozen perishable fruits
or vegetables, or any combination thereof, at a desired temperature to
maintain the quality of the product for orderly marketing.
(C) "Research and development" has the same meaning as in
(a)(ii)(C) of this subsection (8).
(9)(a) "Qualified buildings" means:
(i) Construction of new buildings used for qualified activities.
(ii) Expansion or renovation of existing buildings for the purpose
of increasing floor space or production capacity used for qualified
activities.
(iii) Construction of new warehouses, or the expansion or
renovation of existing warehouses, used to support qualified activities
located at a manufacturing operation or research and development
operation.
(iv) Construction of new offices exclusively occupied by employees
of a recipient, or a lessee as provided in subsection (3)(a)(ii) of
this section, whose job responsibilities exclusively support qualified
activities or employees performing qualified activities. Offices must
be located within or adjacent to a qualified building under (a)(i) or
(ii) of this subsection. Employees engaged in sales, marketing, and
similar activities do not support qualified activities or employees
performing qualified activities.
(v) Construction of new parking facilities located within or
adjacent to a qualified building under (a)(i) or (ii) of this
subsection. New parking facilities must be constructed under the same
tax deferral certificate used to construct, expand, or renovate the
building in which the parking facility supports.
(b) If a qualified building is used partly for qualified activities
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.
(c) For the purposes of this subsection, the following definitions
apply:
(i) "Warehouse" means a building, structure, or storage yard in
which raw materials or finished goods are stored. A warehouse may have
more than one storage room and more than one floor.
(ii) "Manufacturing operation" has the same meaning as in RCW
82.08.02565(2)(d).
(iii) "Research and development operation" has the same meaning as
in RCW 82.08.02565(2)(f).
(10) "Qualified machinery and equipment" means:
(a) All industrial and research fixtures, equipment, and support
facilities, not otherwise eligible for exemption under RCW 82.08.02565
or 82.12.02565, that are used primarily in qualified activities; and
(b) 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, that are used
primarily in qualified activities.
(11) "Recipient" means a person receiving a tax deferral under this
chapter.
NEW SECTION. Sec. 1603 (1) Application for deferral of taxes
under this chapter must be made before the initiation of construction
of the qualified buildings or acquisition of qualified machinery or
equipment. 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.
(2) The department shall rule on the application within sixty days.
The department shall track, by type of qualified activities, the amount
of all deferrals granted under this chapter during each fiscal
biennium.
NEW SECTION. Sec. 1604 (1) The department shall issue a sales
and use tax deferral certificate for state and local sales and use
taxes imposed or authorized under chapters 82.08, 82.12, and 82.14 RCW
for the following eligible investment projects.
(a) Until July 1, 2010, investment projects in the qualified
activities described in section 1602(8)(a) of this act;
(b) Until July 1, 2015, investment projects in the qualified
activities described in section 1602(8)(b) of this act;
(c) From July 1, 2007, through June 30, 2012, investment projects
in the qualified activities described in section 1602(8)(c) of this
act;
(2) Use of a sales and use tax deferral certificate by the
recipient is deemed a waiver under RCW 82.32.050(3)(c) of the period of
limitations under RCW 82.32.050(3) for sales and use taxes deferred
under this chapter.
NEW SECTION. Sec. 1605 (1) Except as provided in subsection (2)
of this section, section 1602(8)(a)(ii)(A)(III) of this act, and
section 1606 of this act, taxes deferred under this chapter need not be
repaid.
(2) If, on the basis of a survey under section 1606 of this act 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% |
NEW SECTION. Sec. 1606 (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) Recipients for deferral of taxes under this chapter and persons
subject to this chapter by reason of section 1610 of this act shall
file a complete annual survey with the department. If the economic
benefits of the deferral are passed to a lessee as provided in section
1602(3)(a)(ii)(B) of this act, the lessee shall agree to file the
annual survey and the applicant is not required to file the annual
survey. The annual survey is due by April 30th 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 RCW
82.32.590. The annual 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:
(a) The number of total employment positions;
(b) Full-time, part-time, and temporary employment positions as a
percent of total employment;
(c) 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
(d) The number of employment positions that have employer-provided
medical, dental, and retirement benefits, by each of the wage bands.
(3) 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.
(4)(a) If a recipient of the deferral fails to file a complete
annual survey required under this subsection by the date due or any
extension under RCW 82.32.590, the portion of deferred taxes that need
not be repaid for the previous calendar year according to the schedule
in section 1605 of this act shall be immediately due and payable. If
the economic benefits of the deferral are passed to a lessee as
provided in section 1602(3)(a)(ii)(B) of this act, 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.
(b) A recipient who must repay deferred taxes under section 1605 of
this act because the department has found that an investment project is
used for purposes other than qualified activities is no longer required
to file annual surveys under this section beginning on the date an
investment project is used for nonqualified activities.
(5) For purposes of this section, "complete annual survey" means a
survey that is filed on a form or in a format required by the
department by the due date and substantially responds to all survey
questions to enable the department to provide summary statistics and to
study the effectiveness of the tax deferral program.
(6) All information collected under this section, except the amount
of the total tax deferred, is deemed taxpayer information under RCW
82.32.330. Information on the amount of tax deferred is not subject to
the confidentiality provisions of RCW 82.32.330 and may be disclosed to
the public upon request. If the amount of the total tax deferred as
reported on the survey is different than the amount actually deferred
or otherwise allowed by the department, the amount actually deferred or
allowed may be disclosed.
(7) 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.
(8) 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, December 1, 2011, and
December 1, 2013. The reports shall measure the effect of the program
on job creation, job retention, net jobs for Washington residents,
company growth, diversification of the state's economy, cluster
dynamics, and such other factors as the department selects.
(9) A person who is subject to the requirements in RCW 82.32.535,
82.32.545, 82.32.560, or 82.32.570 is not required to file a complete
annual survey under this section if the person timely files the annual
report required by RCW 82.32.535, 82.32.545, 82.32.560, or 82.32.570.
NEW SECTION. Sec. 1607 Chapter 82.32 RCW applies to the
administration of this chapter.
NEW SECTION. Sec. 1608 Applications received by the department
under this chapter are not subject to the confidentiality provisions of
RCW 82.32.330 and may be disclosed to the public upon request.
NEW SECTION. Sec. 1609 The employment security department shall
make, and certify to the department of revenue, all determinations of
employment and wages as requested by the department under this chapter.
NEW SECTION. Sec. 1610 Persons who have received a sales and use
tax deferral certificate from the department under chapter 82.60,
82.63, or 82.74 RCW are subject to the provisions of chapter 82.-- RCW
(sections 1601 through 1610 of this act). This act does not apply to,
or authorize refunds for, investment projects that are not eligible as
of December 31, 2006, for tax deferrals granted under chapter 82.60 or
82.63 RCW before January 1, 2007.
NEW SECTION. Sec. 1611 Sections 1601 through 1610 of this act
constitute a new chapter in Title
NEW SECTION. Sec. 1612 The following acts or parts of acts are
each repealed:
(1) RCW 82.60.010 (Legislative findings and declaration) and 1985
c 232 s 1;
(2) RCW 82.60.020 (Definitions) and 2004 c 25 s 3, 1999 sp.s. c 9
s 2, 1999 c 164 s 301, 1996 c 290 s 4, & 1995 1st sp.s. c 3 s 5;
(3) RCW 82.60.030 (Application for deferral -- Contents) and 1994
sp.s. c 1 s 2 & 1985 c 232 s 3;
(4) RCW 82.60.040 (Issuance of tax deferral certificate) and 2004
c 25 s 4, 1999 c 164 s 302, 1997 c 156 s 5, 1995 1st sp.s. c 3 s 6,
1994 sp.s. c 1 s 3, 1986 c 116 s 13, & 1985 c 232 s 4;
(5) RCW 82.60.049 (Additional eligible projects) and 2004 c 25 s 5,
2000 c 106 s 8, & 1999 c 164 s 304;
(6) RCW 82.60.050 (Expiration of RCW 82.60.030 and 82.60.040) and
2004 c 25 s 6, 1994 sp.s. c 1 s 7, 1993 sp.s. c 25 s 404, 1988 c 41 s
5, & 1985 c 232 s 10;
(7) RCW 82.60.060 (Repayment schedule) and 2000 c 106 s 5 & 1985 c
232 s 5;
(8) RCW 82.60.065 (Tax deferral on construction labor and
investment projects -- Repayment forgiven) and 1995 1st sp.s. c 3 s 8,
1994 sp.s. c 1 s 6, & 1986 c 116 s 14;
(9) RCW 82.60.070 (Annual survey by recipients -- Assessment of
taxes, interest) and 2004 c 25 s 7, 1999 c 164 s 303, 1995 1st sp.s. c
3 s 9, 1994 sp.s. c 1 s 5, & 1985 c 232 s 6;
(10) RCW 82.60.080 (Employment and wage determinations) and 2000 c
106 s 6 & 1985 c 232 s 7;
(11) RCW 82.60.090 (Applicability of general administrative
provisions) and 1985 c 232 s 8;
(12) RCW 82.60.100 (Applications, reports, and information subject
to disclosure) and 1987 c 49 s 1;
(13) RCW 82.60.110 (Competing projects -- Impact study) and 1998 c
245 s 169 & 1994 sp.s. c 1 s 8;
(14) RCW 82.60.900 (Effective date, applicability -- 1985 c 232) and
1985 c 232 s 11;
(15) RCW 82.60.901 (Effective date -- 1994 sp.s. c 1) and 1994 sp.s.
c 1 s 10;
(16) RCW 82.63.005 (Findings -- Intent to create a contract) and 2004
c 2 s 1 & 1994 sp.s. c 5 s 1;
(17) RCW 82.63.010 (Definitions) and 2004 c 2 s 3, 1995 1st sp.s.
c 3 s 12, & 1994 sp.s. c 5 s 3;
(18) RCW 82.63.020 (Application -- Annual survey--Reports) and 2004
c 2 s 4 & 1994 sp.s. c 5 s 4;
(19) RCW 82.63.030 (Sales and use tax deferral certificate--
Eligible investment projects and pilot scale manufacturing) and 2004 c
2 s 5 & 1994 sp.s. c 5 s 5;
(20) RCW 82.63.045 (Repayment not required -- Repayment schedule for
unqualified investment project -- Exceptions) and 2004 c 2 s 6, 2000 c
106 s 10, & 1995 1st sp.s. c 3 s 13;
(21) RCW 82.63.060 (Administration) and 1994 sp.s. c 5 s 8;
(22) RCW 82.63.070 (Public disclosure) and 2004 c 2 s 7 & 1994
sp.s. c 5 s 9;
(23) RCW 82.63.900 (Effective date -- 1994 sp.s. c 5) and 1994 sp.s.
c 5 s 12;
(24) RCW 82.74.010 (Definitions) and 2005 c 513 s 4;
(25) RCW 82.74.020 (Application for tax deferral) and 2005 c 513 s
5;
(26) RCW 82.74.030 (Issuance of certificate) and 2005 c 513 s 6;
(27) RCW 82.74.040 (Annual survey) and 2005 c 513 s 7;
(28) RCW 82.74.050 (Repayment of deferred taxes) and 2005 c 513 s
8;
(29) RCW 82.74.060 (Application of chapter 82.32 RCW) and 2005 c
513 s 9; and
(30) RCW 82.74.070 (Confidentiality of applications) and 2005 c 513
s 10.
Sec. 1701 RCW 82.62.020 and 1986 c 116 s 16 are each amended to
read as follows:
Application for tax credits under this chapter must be made
((before)) within ninety consecutive days after the actual hiring of
qualified employment positions. 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
business project, the applicant's average employment, if any, at the
facility 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.
Sec. 1801 RCW 82.32.590 and 2005 c 514 s 1001 are each amended to
read as follows:
(1) If the department finds that the failure of a taxpayer to file
an annual survey or annual report under RCW 82.04.4452, 82.32.545,
82.32.560, 82.32.570, 82.32.610, 82.32.620, or section 1606 of this
act, 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 or report. 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 or annual report by the due date was the result
of circumstances beyond the control of the taxpayer, the department
shall be guided by rules adopted by the department for 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.
Sec. 1802 RCW 82.32.600 and 2005 c 514 s 1002 are each amended to
read as follows:
(1) Persons required to file annual surveys or annual reports under
RCW 82.04.4452, 82.32.545, 82.32.560, 82.32.570, 82.32.610, 82.32.620,
or section 1606 of this act, must electronically file with the
department all surveys, reports, 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
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, 82.32.535, 82.32.545, 82.32.570,
82.32.560, 82.60.070, or 82.63.020.)) Any survey, report, 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.
(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)
(3) The department may waive the electronic filing requirement in
subsection (1) of this section for good cause shown.
Sec. 1803 RCW 82.04.4452 and 2005 c 514 s 1003 are each amended
to read as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed for each person whose research and development spending during
the year in which the credit is claimed exceeds 0.92 percent of the
person's taxable amount during the same calendar year.
(2) The credit shall be calculated as follows:
(a) Determine the greater of the amount of qualified research and
development expenditures of a person or eighty percent of amounts
received by a person other than a public educational or research
institution in compensation for the conduct of qualified research and
development;
(b) Subtract 0.92 percent of the person's taxable amount from the
amount determined under (a) of this subsection;
(c) Multiply the amount determined under (b) of this subsection by
the following:
(i) For the period June 10, 2004, through December 31, 2006, the
person's average tax rate for the calendar year for which the credit is
claimed;
(ii) For the calendar year ending December 31, 2007, the greater of
the person's average tax rate for that calendar year or 0.75 percent;
(iii) For the calendar year ending December 31, 2008, the greater
of the person's average tax rate for that calendar year or 1.0 percent;
(iv) For the calendar year ending December 31, 2009, the greater of
the person's average tax rate for that calendar year or 1.25 percent;
(v) For the calendar year ending December 31, 2010, and thereafter,
1.50 percent.
For purposes of calculating the credit, if a person's reporting
period is less than annual, the person may use an estimated average tax
rate for the calendar year for which the credit is claimed by using the
person's average tax rate for each reporting period. A person who uses
an estimated average tax rate must make an adjustment to the total
credit claimed for the calendar year using the person's actual average
tax rate for the calendar year when the person files its last return
for the calendar year for which the credit is claimed.
(3) Any person entitled to the credit provided in subsection (2) of
this section as a result of qualified research and development
conducted under contract may assign all or any portion of the credit to
the person contracting for the performance of the qualified research
and development.
(4) The credit, including any credit assigned to a person under
subsection (3) of this section, shall be claimed against taxes due for
the same calendar year in which the qualified research and development
expenditures are incurred. The credit, including any credit assigned
to a person under subsection (3) of this section, for each calendar
year shall not exceed the lesser of two million dollars or the amount
of tax otherwise due under this chapter for the calendar year.
(5) For any person claiming the credit, including any credit
assigned to a person under subsection (3) of this section, whose
research and development spending during the calendar year in which the
credit is claimed fails to exceed 0.92 percent of the person's taxable
amount during the same calendar year or who is otherwise ineligible,
the department shall declare the taxes against which the credit was
claimed to be immediately due and payable. The department shall assess
interest, but not penalties, on the taxes against which the credit was
claimed. Interest shall be assessed at the rate provided for
delinquent excise taxes under chapter 82.32 RCW, retroactively to the
date the credit was claimed, and shall accrue until the taxes against
which the credit was claimed are repaid. Any credit assigned to a
person under subsection (3) of this section that is disallowed as a
result of this section may be claimed by the person who performed the
qualified research and development subject to the limitations set forth
in subsection (4) of this section.
(6)(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) A person claiming the credit shall file a complete annual
survey with the department. The survey is due by ((March 31st)) April
30th following any year in which a credit is claimed. The department
may extend the due date for timely filing of annual surveys under this
section as provided in RCW 82.32.590. The survey shall include the
amount of the tax credit claimed, the qualified research and
development expenditures during the calendar year for which the credit
is claimed, the taxable amount during the calendar year for which the
credit is claimed, the number of new products or research projects by
general classification, the number of trademarks, patents, and
copyrights associated with the research and development activities for
which a credit was claimed, and whether the credit has been assigned
under subsection (3) of this section and who assigned the credit. 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 tax credit program, to be submitted at the
same time as the survey.
(d)(i) All information collected under this subsection, except the
amount of the tax credit claimed, is deemed taxpayer information under
RCW 82.32.330. Information on the amount of tax credit claimed is not
subject to the confidentiality provisions of RCW 82.32.330 and may be
disclosed to the public upon request, except as provided in this
subsection (6)(d). If the amount of the tax credit as reported on the
survey is different than the amount actually claimed on the taxpayer's
tax returns or otherwise allowed by the department, the amount actually
claimed or allowed may be disclosed.
(ii) Persons for whom the actual amount of the tax credit claimed
on the taxpayer's returns or otherwise allowed by the department is
less than ten thousand dollars during the period covered by the survey
may request the department to treat the tax credit amount as
confidential under RCW 82.32.330.
(e) If a person fails to file a complete annual survey required
under this subsection with the department by the due date or any
extension under RCW 82.32.590, the person entitled to the credit
provided in subsection (2) of this section is not eligible to claim or
assign the credit provided in subsection (2) of this section in the
year the person failed to timely file a complete survey.
(7) The department shall use the information from subsection (6) of
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.
(8) The department shall use the information from subsection (6) of
this section to study the tax credit program authorized under this
section. 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)) job retention, net 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))
cluster dynamics, and such other factors as the department selects.
(9) For the purpose of this section:
(a) "Average tax rate" means a person's total tax liability under
this chapter for the calendar year for which the credit is claimed
divided by the taxpayer's total taxable amount under this chapter for
the calendar year for which the credit is claimed.
(b) "Complete annual survey" means a survey that is filed on a form
or in a format required by the department by the due date, or any
extension under RCW 82.32.590, and substantially responds to all survey
questions to enable the department to provide summary statistics and to
study the effectiveness of the tax credit.
(c) "Qualified research and development expenditures" means
operating expenses, including wages, compensation of a proprietor or a
partner in a partnership as determined under rules adopted by the
department, benefits, supplies, and computer expenses, directly
incurred in qualified research and development by a person claiming the
credit provided in this section. The term does not include amounts
paid to a person other than a public educational or research
institution to conduct qualified research and development. Nor does
the term include capital costs and overhead, such as expenses for land,
structures, or depreciable property.
(((c))) (d) "Qualified research and development" shall have the
same meaning as high technology research and development in ((RCW
82.63.010)) section 1602(8)(b) of this act.
(((d))) (e) "Research and development spending" means qualified
research and development expenditures plus eighty percent of amounts
paid to a person other than a public educational or research
institution to conduct qualified research and development.
(((e))) (f) "Taxable amount" means the taxable amount subject to
the tax imposed in this chapter required to be reported on the person's
combined excise tax returns for the calendar year for which the credit
is claimed, less any taxable amount for which a credit is allowed under
RCW 82.04.440.
(10) This section expires January 1, 2015.
Sec. 1804 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)) in 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 to the
department detailing employment, wages, and employer-provided health
and retirement benefits per job at the manufacturing site. The report
is due by ((March 31st)) April 30th following any year in which a tax
exemption is claimed or used. The department may extend the due date
for timely filing annual reports under this section as provided in RCW
82.32.590. The report shall not include names of employees. The
report shall detail employment by the total number of full-time, part-time, and temporary positions. The report shall indicate the quantity
of product produced at the plant during the time period covered by the
report. The first report filed under this subsection shall include
employment, wage, and benefit information for the twelve-month period
immediately before first use of a tax exemption. Employment reports
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. Information in a
report 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 annual report under (a) of this
subsection by the due date of the report or any extension under RCW
82.32.590, the department shall declare the amount of taxes exempted
for that year to be immediately due and payable. Public utility taxes
payable under this subsection are subject to interest but not
penalties, as provided under this chapter. 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. 1805 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 to the department detailing
employment, wages, and employer-provided health and retirement benefits
per job at the manufacturing site. The report is due by ((March 31st))
April 30th following any year in which a tax incentive is claimed or
used. The department may extend the due date for timely filing annual
reports under this section as provided in RCW 82.32.590. The report
shall not include names of employees. The report shall detail
employment by the total number of full-time, part-time, and temporary
positions. The report shall indicate the quantity of aluminum smelted
at the plant during the time period covered by the report. The first
report filed under this subsection shall include employment, wage, and
benefit information for the twelve-month period immediately before
first use of a tax incentive. Employment reports 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. Information in a report 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 annual report under (a) of this
subsection by the due date of the report or any extension under RCW
82.32.590, 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 year to be immediately due and payable.
Excise taxes payable under this subsection are subject to interest but
not penalties, as provided under this chapter. 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.
Sec. 1806 RCW 82.32.610 and 2005 c 513 s 3 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) Each person claiming a tax exemption under RCW 82.04.4266 shall
report information to the department by filing a complete annual
survey. The survey is due by ((March 31st)) April 30th of the year
following any calendar year in which a tax exemption under RCW
82.04.4266 is taken. The department may extend the due date for timely
filing annual reports under this section as provided in RCW 82.32.590.
The survey shall include the amount of tax exemption taken. The survey
shall also include the following information for employment positions
in Washington:
(a) The number of total employment positions;
(b) Full-time, part-time, and temporary employment positions as a
percent of total employment;
(c) 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
(d) The number of employment positions that have employer-provided
medical, dental, and retirement benefits, by each of the wage bands.
The first survey filed under this subsection shall also include
information for the twelve-month period immediately before first use of
a tax incentive.
(3) The department may request additional information necessary to
measure the results of the exemption program, to be submitted at the
same time as the survey.
(4) All information collected under this section, except the amount
of the tax exemption taken, is deemed taxpayer information under RCW
82.32.330. Information on the amount of tax exemption taken is not
subject to the confidentiality provisions of RCW 82.32.330.
(5) If a person fails to submit an annual survey under subsection
(2) of this section by the due date of the report or any extension
under RCW 82.32.590, the department shall declare the amount of taxes
exempted for the previous calendar year to be immediately due and
payable. The department shall assess interest, but not penalties, on
the amounts due under this section. The amount due shall be calculated
using a rate of 0.138 percent. The interest shall be assessed at the
rate provided for delinquent 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.
(6) 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.
(7) The department shall study the tax exemption authorized in RCW
82.04.4266. The department shall submit a report to the finance
committee of the house of representatives and the ways and means
committee of the senate by December 1, 2011. The report shall measure
the effect of the exemption on job creation, job retention, net jobs
for Washington residents, company growth, ((the movement of firms or
the consolidation of firms' operations into the state)) diversification
of the state's economy, cluster dynamics, and such other factors as the
department selects.
Sec. 1807 RCW 82.32.620 and 2005 c 301 s 4 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 82.04.294 shall make an
annual report to the department detailing employment, wages, and
employer-provided health and retirement benefits per job at the
manufacturing site. The report shall not include names of employees.
The report shall also detail employment by the total number of full-time, part-time, and temporary positions. The first report 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 82.04.294. The report is due by
((March 31st)) April 30th following any year in which a preferential
tax rate under RCW 82.04.294 is used. The department may extend the
due date for timely filing annual reports under this section as
provided in RCW 82.32.590. This information is not subject to the
confidentiality provisions of RCW 82.32.330.
(b) If a person fails to submit an annual report under (a) of this
subsection, the department shall declare the amount of taxes reduced
for 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 taxes, as provided
under this chapter. The department shall assess interest,
retroactively to the date the preferential tax rate under RCW
82.04.294, 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 preferential tax rate was used are
repaid. This information is not subject to the confidentiality
provisions of RCW 82.32.330.
Sec. 1808 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))) (11)
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 to the department detailing employment, wages, and employer-provided health and retirement benefits per job at the manufacturing
site. The report shall not include names of employees. The report
shall also detail employment by the total number of full-time, part-time, and temporary positions. The first report 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))) (11), 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. The report is due by ((March 31st)) April 30th following
any year in which a preferential tax rate under RCW 82.04.260(((13)))
(11) 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.
The department may extend the due date for timely filing annual reports
under this section as provided in RCW 82.32.590. 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 annual report under (a) of this
subsection by the due date of the report or any extension under RCW
82.32.590, 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 year to be immediately due and payable.
Excise taxes payable under this subsection are subject to interest but
not penalties, as provided under this chapter. 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. 1901 RCW 82.46.010 and 1994 c 272 s 1 are each amended to
read as follows:
(1) The legislative authority of any county or city shall identify
in the adopted budget the capital projects funded in whole or in part
from the proceeds of the tax authorized in subsection (2) of this
section, and shall indicate that such tax is intended to be in addition
to other funds that may be reasonably available for such capital
projects.
(2) The legislative authority of any county or any city may impose
an excise tax on each sale of real property in the unincorporated areas
of the county for the county tax and in the corporate limits of the
city for the city tax at a rate not exceeding one-quarter of one
percent of the selling price. The revenues from this tax shall be used
by any city or county with a population of five thousand or less and
any city or county that does not plan under RCW 36.70A.040 for any
capital purpose identified in a capital improvements plan and local
capital improvements, including those listed in RCW 35.43.040.
After April 30, 1992, revenues generated from the tax imposed under
this subsection in counties over five thousand population and cities
over five thousand population that are required or choose to plan under
RCW 36.70A.040 shall be used solely for financing capital projects
specified in a capital facilities plan element of a comprehensive plan
and housing relocation assistance under RCW 59.18.440 and 59.18.450.
However, revenues (a) pledged by such counties and cities to debt
retirement prior to April 30, 1992, may continue to be used for that
purpose until the original debt for which the revenues were pledged is
retired, or (b) committed prior to April 30, 1992, by such counties or
cities to a project may continue to be used for that purpose until the
project is completed.
(3) In lieu of imposing the tax authorized in RCW 82.14.030(2), the
legislative authority of any county or any city may impose an
additional excise tax on each sale of real property in the
unincorporated areas of the county for the county tax and in the
corporate limits of the city for the city tax at a rate not exceeding
one-half of one percent of the selling price.
(4) Taxes imposed under this section shall be collected from
persons who are taxable by the state under chapter 82.45 RCW upon the
occurrence of any taxable event within the unincorporated areas of the
county or within the corporate limits of the city, as the case may be.
(5) Taxes imposed under this section shall comply with all
applicable rules, regulations, laws, and court decisions regarding real
estate excise taxes as imposed by the state under chapter 82.45 RCW.
(6) As used in this section, "city" means any city or town and
"capital project" means those public works projects of a local
government for planning, acquisition, construction, reconstruction,
repair, replacement, rehabilitation, or improvement of streets; roads;
highways; sidewalks; street and road lighting systems; traffic signals;
bridges; domestic water systems; storm and sanitary sewer systems;
parks; recreational facilities; law enforcement facilities; fire
protection facilities; trails; libraries; administrative and/
NEW SECTION. Sec. 2001 The repealed sections in sections 117,
631, 715, and 1102 of this act do not affect any rights, liabilities,
obligations, or proceedings, incurred or instituted under those
repealed sections or rules or orders adopted by the department of
revenue pursuant to those repealed sections prior to the effective date
of section 117, 631, 715, or 1102 of this act.
NEW SECTION. Sec. 2002 (1) Unless expressly provided otherwise,
this act takes effect July 1, 2006.
(2) Sections 1601 through 1610, 1612, and 1701 of this act take
effect January 1, 2007.
(3) Sections 109 and 1402 of this act take effect July 1, 2007.
(4) Sections 110 and 111 of this act take effect July 1, 2012.
(5) Section 909 of this act takes effect July 1, 2012.
(6) Sections 116, 609 through 611, 801, 802, 804, and 1801 through
1808 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. 2003 Section 904 of this act takes effect if
chapter 149, Laws of 2003 takes effect.
NEW SECTION. Sec. 2004 Section 903 of this act expires if
chapter 149, Laws of 2003 takes effect.
NEW SECTION. Sec. 2005 Section 1401 of this act expires July 1,
2007.
NEW SECTION. Sec. 2006 Part headings used in this act are not
part of the law.
NEW SECTION. Sec. 2007 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.