BILL REQ. #: H-1772.2
| State of Washington | 61st Legislature | 2009 Regular Session |
READ FIRST TIME 02/17/09.
AN ACT Relating to a sales and use tax rebate for materials and services related to the construction of affordable housing; amending RCW 81.104.170; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.14 RCW; and providing an expiration 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) An exemption from the tax imposed in RCW 82.08.020 in the form
of a remittance is provided for:
(a) The sale of tangible personal property incorporated as an
ingredient or component of an eligible affordable housing development
during the course of construction;
(b) Charges made for labor and services rendered with respect to
constructing eligible affordable housing developments; and
(c) Charges made for labor and services rendered with respect to
installing building fixtures during the course of constructing eligible
affordable housing developments.
(2)(a) Sellers must collect the tax imposed in RCW 82.08.020 on
sales exempt under this section.
(b) Buyers claiming an exemption under this section must apply to
the department for a remittance of exempted taxes in a form and manner
as prescribed by the department. A buyer may not submit more than one
application for exemption under this section per quarter. The
department may require the submittal of any documentation it deems
necessary to verify eligibility for the exemption under this section,
including: (i) Receipts or invoices; (ii) proof of tax paid; (iii)
construction invoices and documents; and (iv) documents establishing
that the tangible personal property was incorporated into, or the labor
and services were rendered with respect to, eligible affordable housing
developments.
(3) The department must remit, on a quarterly basis, exempted
amounts to qualifying applicants who submitted applications and proper
documentation during the previous quarter.
(4) The department of community, trade, and economic development
must work with the department and the joint legislative audit and
review committee to develop performance measures related to the
effectiveness of the tax exemptions in this section and section 2 of
this act in increasing the production of affordable housing. These
performance measures must be based upon data collected by the
department in the remittal process.
(5) For the purposes of this section, "eligible affordable housing
development" means any multifamily residential development project that
has received federal low-income housing tax credits or funding from the
Washington state housing trust fund.
NEW SECTION. Sec. 2 A new section is added to chapter 82.12 RCW
to read as follows:
(1) An exemption from the tax imposed in RCW 82.12.020 in the form
of a remittance is provided for the use of:
(a) Tangible personal property incorporated as an ingredient or
component of eligible affordable housing developments during the course
of construction; and
(b) Labor and services rendered with respect to installing building
fixtures during the course of constructing eligible affordable housing
developments.
(2) Taxpayers claiming the exemption under this section must pay
the tax imposed in RCW 82.12.020 directly to the department and may
then apply to the department for a remittance of exempted taxes in a
form and manner as prescribed by the department. A buyer may not
submit more than one application for exemption under this section per
quarter. The department may require the submittal of any documentation
it deems necessary to verify eligibility for the exemption under this
section, including: (a) Receipts or invoices; (b) proof of tax paid;
(c) construction invoices and documents; and (d) documents establishing
that the tangible personal property was incorporated into, or the labor
and services were rendered with respect to, eligible affordable housing
developments.
(3) The department must remit, on a quarterly basis, exempted
amounts to qualifying applicants who submitted applications and proper
documentation during the previous quarter.
(4) For purposes of this section, "eligible affordable housing
development" has the same meaning as in section 1 of this act.
NEW SECTION. Sec. 3 A new section is added to chapter 82.14 RCW
to read as follows:
The exemptions in sections 1 and 2 of this act are for the state
portion of the sales and use tax and do not extend to the tax
authorized in this chapter.
Sec. 4 RCW 81.104.170 and 1997 c 450 s 5 are each amended to read
as follows:
Cities that operate transit systems, county transportation
authorities, metropolitan municipal corporations, public transportation
benefit areas, and regional transit authorities 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 high
capacity transportation service.
The tax authorized pursuant to 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 chapters 82.08 and
82.12 RCW upon the occurrence of any taxable event within the taxing
district. The maximum rate of such tax shall be approved by the voters
and shall not exceed 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 maximum rate of such tax that may be imposed shall not exceed
nine-tenths of one percent in any county that imposes a tax under RCW
82.14.340, or within a regional transit authority if any county within
the authority imposes a tax under RCW 82.14.340. The exemptions in RCW
82.08.820 ((and)), 82.12.820, section 1 of this act, and section 2 of
this act are for the state portion of the sales and use tax and do not
extend to the tax authorized in this section.
NEW SECTION. Sec. 5 This act expires July 1, 2014.