BILL REQ. #:  S-3985.1 

Read first time 01/11/2006.   Referred to Committee on Agriculture & Rural Economic Development.

     AN ACT Relating to special fuel sales and use tax exemptions; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of special fuel to a harvester for use in equipment used to fell or cut timber. The exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. Harvesters must provide the department with a valid forest practices permit to obtain an exemption certificate.
     (2) For the purposes of this section, the following definitions apply:
     (a) "Harvester" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, fells, cuts, or takes timber for sale or for commercial or industrial use.
     (b) "Timber" means trees of any species maintained for eventual harvest whether planted or of natural growth, standing or down, on privately or publicly owned land, and also includes related wood products, but does not include Christmas trees or other trees to which the timber excise tax in chapter 84.33 RCW is not imposed.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of special fuel by a harvester for use in equipment used to fell or cut timber.
     (2) The definitions in section 1 of this act apply to this section.

NEW SECTION.  Sec. 3   This act takes effect July 1, 2006.