BILL REQ. #:  H-0818.1 

Read first time 01/16/09.   Referred to Committee on Finance.

     AN ACT Relating to sales and use tax exemptions in respect to aircraft used in intrastate commuter operations; and amending RCW 82.08.0262 and 82.12.0254.

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

Sec. 1   RCW 82.08.0262 and 1998 c 311 s 5 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 ((shall)) does not apply to:
     (a) Sales of airplanes((,)) (i) to the United States government; (ii) for use in conducting interstate or foreign commerce; or (iii) for use in providing intrastate air transportation by a commuter air carrier;
     (b) Sales of locomotives, railroad cars, or watercraft for use in conducting interstate or foreign commerce by transporting therein or therewith property and persons for hire or for use in conducting commercial deep sea fishing operations outside the territorial waters of the state ((or airplanes sold to the United States government; also));
     (c) Sales of tangible personal property ((which)) that becomes a component part of such airplanes, locomotives, railroad cars, or watercraft, and of motor vehicles or trailers whether owned by or leased with or without drivers and used by the holder of a carrier permit issued by the interstate commerce commission or its successor agency authorizing transportation by motor vehicle across the boundaries of this state, in the course of constructing, repairing, cleaning, altering, or improving the same; ((also)) and
     (d) Sales of or charges made for labor and services rendered in respect to such constructing, repairing, cleaning, altering, or improving.
     (2) The term "commuter air carrier" means an air carrier holding authority under Title 14, part 298 of the code of federal regulations that carries passengers on at least five round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week, and places between which those flights are performed.

Sec. 2   RCW 82.12.0254 and 2003 c 5 s 3 are each amended to read as follows:
     (1) The provisions of this chapter ((shall)) do not apply in respect to the use of:
     (a) Any airplane((,)) used primarily in (i) conducting interstate or foreign commerce or (ii) providing intrastate air transportation by a commuter air carrier as defined in RCW 82.08.0262;
     (b) Any locomotive, railroad car, or watercraft used primarily in conducting interstate or foreign commerce by transporting therein or therewith property and persons for hire or used primarily in commercial deep sea fishing operations outside the territorial waters of the state((, and in respect to use of));
     (c) Tangible personal property ((which)) that becomes a component part of any such airplane, locomotive, railroad car, or watercraft in the course of repairing, cleaning, altering, or improving the same; ((also the use of)) and
     (d) Labor and services rendered in respect to such repairing, cleaning, altering, or improving.
     (2) The provisions of this chapter ((shall)) do not apply in respect to the use by a nonresident of this state of any motor vehicle or trailer used exclusively in transporting persons or property across the boundaries of this state and in intrastate operations incidental thereto when such motor vehicle or trailer is registered and licensed in a foreign state and in respect to the use by a nonresident of this state of any motor vehicle or trailer so registered and licensed and used within this state for a period not exceeding fifteen consecutive days under such rules as the department ((of revenue shall)) must adopt((: PROVIDED, That)). However, under circumstances determined to be justifiable by the department ((of revenue)) a second fifteen day period may be authorized consecutive with the first fifteen day period; and for the purposes of this exemption the term "nonresident" as used herein((, shall include)) includes a user who has one or more places of business in this state as well as in one or more other states, but the exemption for nonresidents ((shall apply)) applies only to those vehicles which are most frequently dispatched, garaged, serviced, maintained, and operated from the user's place of business in another state.
     (3) The provisions of this chapter ((shall)) do not apply in respect to the use by the holder of a carrier permit issued by the interstate commerce commission or its successor agency of any motor vehicle or trailer whether owned by or leased with or without driver to the permit holder and used in substantial part in the normal and ordinary course of the user's business for transporting therein persons or property for hire across the boundaries of this state; and in respect to the use of any motor vehicle or trailer while being operated under the authority of a one-transit permit issued by the director of licensing pursuant to RCW 46.16.160 and moving upon the highways from the point of delivery in this state to a point outside this state; and in respect to the use of tangible personal property which becomes a component part of any motor vehicle or trailer used by the holder of a carrier permit issued by the interstate commerce commission or its successor agency authorizing transportation by motor vehicle across the boundaries of this state whether such motor vehicle or trailer is owned by or leased with or without driver to the permit holder, in the course of repairing, cleaning, altering, or improving the same; also the use of labor and services rendered in respect to such repairing, cleaning, altering, or improving.