6143-S AMS SHIN CRIS 145

SSB 6143 - S AMD 343

By Senator Shin

NOT ADOPTED 3/06/2010

       Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1. The legislature finds that the economic crisis has impacted the many Washington families which do not earn enough annually to keep pace with increasing health care, child care, and work-related expenses.  The legislature further finds that revenues are insufficient to maintain necessary funding for education, public safety, health care, and safety net services for elderly, disabled, and vulnerable people during the unprecedented economic crisis in the 2009-2011 fiscal biennium.  Therefore, it is the intent of the legislature to provide a means to stabilize revenue collections by imposing a temporary sales and use tax.  It is also the legislature's intent to provide relief to lower-income working families in Washington in the form of a sales and use tax exemption.

Sec. 2. RCW 82.08.020 and 2009 c 469 s 802 are each amended to read as follows:

    (1) There is levied and ((there shall be)) collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

    (2) There is levied and ((there shall be)) collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price.  The revenue collected under this subsection ((shall)) must be deposited in the multimodal transportation account created in RCW 47.66.070.

    (3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section.  The revenue collected under this subsection ((shall)) must be deposited in the multimodal transportation account created in RCW 47.66.070.

    (4) For purposes of subsection (3) of this section, "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.

    (5)(a) From June 1, 2010, until June 30, 2013, in addition to the tax imposed upon each retail sale in this state set forth in subsection (1) of this section, there is imposed a tax in an amount equal to one percent of the selling price.
    (b)(i) When the state's unemployment rate decreases to six and five-tenths percent for four continuous months, the rate of one percent in this subsection (5) must be reduced to one-half of one percent.
    (ii) When the state's unemployment rate decreases to five percent for four continuous months, no additional tax may be imposed under this subsection (5).
    (6) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section ((shall)) must be dedicated to funding comprehensive performance audits required under RCW 43.09.470.  The revenue identified in this subsection ((shall)) must be deposited in the performance audits of government account created in RCW 43.09.475.

    (((6))) (7) The taxes imposed under this chapter ((shall)) apply to successive retail sales of the same property.

    (((7))) (8)(a) Until January 1, 2011, the tax imposed in subsection (3) of this section and the dedication of revenue provided for in subsection (((5))) (6) of this section((,)) do not apply with respect to the sales of new passenger cars, light duty trucks, and medium duty passenger vehicles, which utilize hybrid technology and have a United States environmental protection agency estimated highway gasoline mileage rating of at least forty miles per gallon.

    (b) As used in this subsection, "hybrid technology" means propulsion units powered by both electricity and gasoline.

    (((8))) (9) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 3. RCW 82.08.020 and 2006 c 1 s 3 are each amended to read as follows:

    (1) There is levied and ((there shall be)) collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

    (2) There is levied and ((there shall be)) collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price.  The revenue collected under this subsection ((shall)) must be deposited in the multimodal transportation account created in RCW 47.66.070.

    (3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section.  The revenue collected under this subsection ((shall)) must be deposited in the multimodal transportation account created in RCW 47.66.070.

    (4) For purposes of subsection (3) of this section, "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.

    (5)(a) From June 1, 2010, until June 30, 2013, in addition to the tax imposed upon each retail sale in this state set forth in subsection (1) of this section, there is imposed a tax in an amount equal to one percent of the selling price.
    (b)(i) When the state's unemployment rate decreases to six and five-tenths percent for four continuous months, the rate of one percent in this subsection (5) must be reduced to one-half of one percent.
    (ii) When the state's unemployment rate decreases to five percent for four continuous months, no additional tax may be imposed under this subsection (5).
    (6) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section ((shall)) must be dedicated to funding comprehensive performance audits required under RCW 43.09.470.  The revenue identified in this subsection ((shall)) must be deposited in the performance audits of government account created in RCW 43.09.475.

    (((6))) (7) The taxes imposed under this chapter ((shall)) apply to successive retail sales of the same property.

    (((7))) (8) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 4. RCW 82.08.0206 and 2008 c 325 s 2 are each amended to read as follows:

    (1) A working families' tax exemption, in the form of a remittance tax due under this chapter and chapter 82.12 RCW, is provided to eligible low-income persons for sales taxes paid under this chapter after ((January 1, 2008)) June 1, 2010.

    (2) For purposes of the exemption in this section, an eligible low-income person is:

    (a) An individual, or an individual and that individual's spouse if they file a federal joint income tax return;

    (b) (([An individual who])) An individual who is eligible for, and is granted, the credit provided in ((Title)) 26 U.S.C. Sec. 32 of the federal internal revenue code; and

    (c) (([An individual who])) An individual who properly files a federal income tax return as a Washington resident, and has been a resident of the state of Washington more than one hundred eighty days of the year for which the exemption is claimed.

    (3)(a) For remittances made in ((2009 and 2010)) 2011, the working families' tax exemption for the prior year is a retail sales tax exemption equal to the greater of twenty-five dollars or five percent of the credit granted as a result of ((Title)) 26 U.S.C. Sec. 32 of the federal internal revenue code in the most recent year for which data is available ((or twenty-five dollars)), adjusted by a proportionate amount reflecting the seven months of increased tax imposed in sections 2 and 3 of this act in calendar year 2010.
    (b) For remittances made in 2012, the working families' tax exemption for the prior year is a retail sales tax exemption equal to the greater of five percent of the credit granted as a result of 26 U.S.C. Sec. 32 of the federal internal revenue code in the most recent year for which data is available or twenty-five dollars.

(c) For ((2011)) 2013 and thereafter, the working families' tax exemption for the prior year is equal to the greater of ten percent of the credit granted as a result of ((Title)) 26 U.S.C. Sec. 32 of the federal internal revenue code in the most recent year for which data is available or fifty dollars.

    (4) For any fiscal period, the working families' tax exemption authorized under this section ((shall)) must be approved by the legislature in the state omnibus appropriations act before persons may claim the exemption during the fiscal period.

    (5) The working families' tax exemption ((shall)) must be administered as provided in this subsection.

    (a) An eligible low-income person claiming an exemption under this section must pay the tax imposed under chapters 82.08, 82.12, and 82.14 RCW in the year for which the exemption is claimed.   The eligible low-income person may then apply to the department for the remittance as calculated under subsection (3) of this section.

    (b) Application ((shall)) must be made to the department in a form and manner determined by the department, ((but the)) except for the following:
    (i) The department must provide alternative filing methods for applicants who do not have access to electronic filing; and
    (ii) The department must allow joint filing for exemptions claimed under this section in 2012 and thereafter with the federal joint income tax return.

    (c) Application for the exemption remittance under this section must be made in the year following the year for which the federal return was filed, but in no case may any remittance be provided for any period before ((January 1, 2008)) June 1, 2010.  The department may use the best available data to process the exemption remittance.  The department ((shall)) must begin accepting applications ((October 1, 2009)) January 1, 2011.

    (d) The department ((shall)) must review the application and determine eligibility for the working families' tax exemption based on information provided by the applicant and through audit and other administrative records, including, when it deems it necessary, verification through internal revenue service data.

    (e) The department ((shall)) must remit the exempted amounts to eligible low-income persons who submitted applications.  Remittances may be made by electronic funds transfer or other means.

    (f) The department may, in conjunction with other agencies or organizations, design and implement a public information campaign to inform potentially eligible persons of the existence of and requirements for this exemption.

    (g) The department may contact persons who appear to be eligible low-income persons as a result of information received from the internal revenue service under such conditions and requirements as the internal revenue service may by law require.

    (6) The provisions of chapter 82.32 RCW apply to the exemption in this section.

    (7) The department may adopt rules necessary to implement this section.

    (8) For the remittances provided in fiscal year 2015 and thereafter, the department ((shall)) must limit its ongoing costs ((for)) to administer the exemption program to ((the initial start-up costs to implement the program.  The state omnibus appropriations act shall specify funding to be used for the ongoing administrative costs of the program.  These ongoing administrative costs include, but are not limited to, costs for:  The processing of internet and mail applications, verification of application claims, compliance and collections, additional full-time employees at the department's call center, processing warrants, updating printed materials and web information, media advertising, and support and maintenance of computer systems)) no more than five percent of the total exemptions provided each year.

Sec. 5. RCW 82.08.064 and 2003 c 361 s 304 and 2003 c 168 s 205 are each reenacted and amended to read as follows:

    (1) A sales and use tax rate change under this chapter or chapter 82.12 RCW shall be imposed (a) no sooner than seventy-five days after its enactment into law and (b) only on the first day of January, April, July, or October.

    (2) Subsection (1) of this section does not apply to the tax rate change in section 301, chapter 361, Laws of 2003 or to the tax rate changes in sections 2 and 3 of this act.

    (3)(a) A sales and use tax rate increase under this chapter or chapter 82.12 RCW imposed on services applies to the first billing period starting on or after the effective date of the increase.

    (b) A sales and use tax rate decrease under this chapter or chapter 82.12 RCW 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.

NEW SECTION.  Sec. 6. Section 2 of this act expires January 1, 2011.

NEW SECTION.  Sec. 7. Section 3 of this act takes effect January 1, 2011.

NEW SECTION.  Sec. 8. Except for section 3 of this act, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect June 1, 2010."

    Renumber the sections consecutively and correct any internal references accordingly.

SSB 6143 - S AMD 343

By Senator Shin

NOT ADOPTED 3/06/2010

    On page 1, line 4 of the title, after "amending RCW", strike through page 1 line 20 "declaring an emergency.", and insert "82.08.020, 82.08.020, 82.08.0206; reenacting and amending 82.08.064; creating a new section; providing effective dates; providing an expiration date; and declaring an emergency."

EFFECT:   Strikes the underlying bill.  Increases the sales and use tax additional tax rate to 1.0% (from 0.3%).  When the state's unemployment rate decreases to 6.5% for 4 continuous months, the rate of the additional tax must be reduced to 0.5%.  When the state's unemployment rate decreases to 5% for 4 continuous months, no additional tax may be imposed.

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