| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Finance Committee | |
HB 2847
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Creating a sales and use tax exemption of materials and services used in the weatherization assistance program.
Sponsors: Representatives Ormsby, Schindler, Barlow, Simpson, Springer, Wood and Santos.
Brief Summary of Bill |
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Hearing Date: 2/4/08
Staff: Jeff Mitchell (786-7139).
Background:
Retail sales and use taxes are imposed by the state, most cities, and all counties. Retail sales
taxes are imposed on retail sales of most articles of tangible personal property and some services.
Use taxes apply to the value of most tangible personal property and some services when used in
this state, if retail sales taxes were not collected when the property or services were acquired by
the user. Use tax rates are the same as retail sales tax rates. The state tax rate is 6.5 percent.
Local tax rates vary from 0.5 percent to 2.4 percent, depending on the location. The average
local tax rate is 2.0, for an average combined state and local tax rate of 8.5 percent.
The federal Department of Energy (DOE) operates a weatherization assistance program (WAP)
to assist low-income families who lack resources to invest in energy efficiency. The WAP was
created in 1976. The WAP is operated in all 50 states. The funds provided by Congress, through
the DOE, are used to improve the energy efficiency of low-income dwellings. The DOE
distributes money to the states. In Washington, the Department of Community, Trade, and
Economic Development (DCTED) administers the program. The DCTED, in turn, contracts
with local governmental or nonprofit agencies to deliver weatherization services to low-income
clients in their areas.
Typical weatherization services include installing insulation in walls, floors, and attics; reducing
air infiltration and pressure imbalances; sealing and repairing ducts; and tuning and repairing
heating and cooling units. Most of the services and materials related to weatherizing a home are
subject to sales and use taxes.
Summary of Bill:
Tangible personal property and services used in the weatherization of residence under the
Washington weatherization assistance program are exempt from sales and use tax.
Appropriation: None.
Fiscal Note: Requested on January 28, 2008.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.