SENATE BILL REPORT
HB 1404
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.
As Reported By Senate Committee On:
Ways & Means, February 29, 2008
Title: An act relating to providing a sales tax exemption for trail grooming on private and state-owned land.
Brief Description: Providing a sales tax exemption for certain trail grooming services.
Sponsors: Representatives Wallace, Hinkle, Condotta, O'Brien, Fromhold, Ahern, McCune and Warnick.
Brief History: Passed House: 1/23/08, 96-1.
Committee Activity: Ways & Means: 2/29/08 [DP]
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: Do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Carrell, Fairley, Hobbs, Honeyford, Keiser, Kohl-Welles, Rasmussen, Regala, Roach and Tom.
Staff: Dianne Criswell (786-7433)
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. The combined state and local rate varies from 7 to 8.9 percent.
Included in the retail sales tax base are charges made for clearing land and moving earth, except
where land is leveled for the purpose of farming. This includes snow compacting, snow
redistribution, and snow removal, on state-owned or privately-owned trails. The Parks and
Recreation Commission (Commission) has managed a winter recreation program since 1975
called Sno-Park. The Commission provides cleared parking areas in close proximity to groomed
and backcountry trails on public and private lands. The Commission contracts with vendors to
provide the trail grooming services, in which the vendor maintains and arranges the snow cover
on the trails to facilitate the type of designated winter recreation for the trail.
Summary of Bill: Trail grooming services provided to Washington and nonprofit corporations are exempt from sales tax.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: None.
Persons Testifying: No one.