BILL REQ. #: H-1552.2
| State of Washington | 61st Legislature | 2009 Regular Session |
Read first time 02/10/09. Referred to Committee on Finance.
AN ACT Relating to reducing the business and occupation tax rate on the business of printing, and of publishing newspapers, magazines, or periodicals; amending RCW 82.04.280, 82.04.280, 35.102.150, 82.08.806, 82.08.820, 82.08.820, and 82.12.020; amending 2006 c 300 s 12 (uncodified); reenacting and amending RCW 82.04.260, 82.04.050, 82.32.590, and 82.32.600; adding a new section to chapter 82.32 RCW; providing effective dates; providing a contingent effective date; providing an expiration date; providing a contingent expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.04.260 and 2008 c 296 s 1, 2008 c 217 s 100, and
2008 c 81 s 4 are each reenacted and amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola byproducts,
or sunflower seeds into sunflower oil; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
flour, pearl barley, oil, canola meal, or canola byproduct
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2012, seafood products that remain in a raw,
raw frozen, or raw salted state at the completion of the manufacturing
by that person; or selling manufactured seafood products that remain in
a raw, raw frozen, or raw salted state at the completion of the
manufacturing, to purchasers who transport in the ordinary course of
business the goods out of this state; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
products manufactured or the gross proceeds derived from such sales,
multiplied by the rate of 0.138 percent. Sellers must keep and
preserve records for the period required by RCW 82.32.070 establishing
that the goods were transported by the purchaser in the ordinary course
of business out of this state;
(c) Beginning July 1, 2012, dairy products that as of September 20,
2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135,
including byproducts from the manufacturing of the dairy products such
as whey and casein; or selling the same to purchasers who transport in
the ordinary course of business the goods out of state; as to such
persons the tax imposed shall be equal to the value of the products
manufactured or the gross proceeds derived from such sales multiplied
by the rate of 0.138 percent. Sellers must keep and preserve records
for the period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of business
out of this state;
(d) Beginning July 1, 2012, fruits or vegetables by canning,
preserving, freezing, processing, or dehydrating fresh fruits or
vegetables, or selling at wholesale fruits or vegetables manufactured
by the seller by canning, preserving, freezing, processing, or
dehydrating fresh fruits or vegetables and sold to purchasers who
transport in the ordinary course of business the goods out of this
state; as to such persons the amount of tax with respect to such
business shall be equal to the value of the products manufactured or
the gross proceeds derived from such sales multiplied by the rate of
0.138 percent. Sellers must keep and preserve records for the period
required by RCW 82.32.070 establishing that the goods were transported
by the purchaser in the ordinary course of business out of this state;
(e) Until July 1, 2009, alcohol fuel, biodiesel fuel, or biodiesel
feedstock, as those terms are defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business shall be equal
to the value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Alcohol fuel or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of alcohol fuel or wood
biomass fuel manufactured, multiplied by the rate of 0.138 percent.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed shall be equal to the gross proceeds derived
from such sales multiplied by the rate of 0.138 percent.
(5) Upon every person engaging within this state in the business of
acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities shall be equal to the
gross income derived from such activities multiplied by the rate of
0.275 percent.
(6) Upon every person engaging within this state in business as an
international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of
stevedoring and associated activities pertinent to the movement of
goods and commodities in waterborne interstate or foreign commerce; as
to such persons the amount of tax with respect to such business shall
be equal to the gross proceeds derived from such activities multiplied
by the rate of 0.275 percent. Persons subject to taxation under this
subsection shall be exempt from payment of taxes imposed by chapter
82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to
the conduct of goods and commodities in waterborne interstate or
foreign commerce are defined as all activities of a labor, service or
transportation nature whereby cargo may be loaded or unloaded to or
from vessels or barges, passing over, onto or under a wharf, pier, or
similar structure; cargo may be moved to a warehouse or similar holding
or storage yard or area to await further movement in import or export
or may move to a consolidation freight station and be stuffed,
unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for
delivery to its consignee. Specific activities included in this
definition are: Wharfage, handling, loading, unloading, moving of
cargo to a convenient place of delivery to the consignee or a
convenient place for further movement to export mode; documentation
services in connection with the receipt, delivery, checking, care,
custody and control of cargo required in the transfer of cargo;
imported automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not limited
to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(8) Upon every person engaging within this state in the business of
disposing of low-level waste, as defined in RCW 43.145.010; as to such
persons the amount of the tax with respect to such business shall be
equal to the gross income of the business, excluding any fees imposed
under chapter 43.200 RCW, multiplied by the rate of 3.3 percent.
If the gross income of the taxpayer is attributable to activities
both within and without this state, the gross income attributable to
this state shall be determined in accordance with the methods of
apportionment required under RCW 82.04.460.
(9) Upon every person engaging within this state as an insurance
producer or title insurance agent licensed under chapter 48.17 RCW; as
to such persons, the amount of the tax with respect to such licensed
activities shall be equal to the gross income of such business
multiplied by the rate of 0.484 percent.
(10) Upon every person engaging within this state in business as a
hospital, as defined in chapter 70.41 RCW, that is operated as a
nonprofit corporation or by the state or any of its political
subdivisions, as to such persons, the amount of tax with respect to
such activities shall be equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5
percent thereafter. The moneys collected under this subsection shall
be deposited in the health services account created under RCW
43.72.900.
(11)(a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, or making sales, at retail
or wholesale, of commercial airplanes or components of such airplanes,
manufactured by the seller, as to such persons the amount of tax with
respect to such business shall, in the case of manufacturers, be equal
to the value of the product manufactured and the gross proceeds of
sales of the product manufactured, or in the case of processors for
hire, be equal to the gross income of the business, multiplied by the
rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning July 1, 2008, upon every person who is not eligible
to report under the provisions of (a) of this subsection (11) and is
engaging within this state in the business of manufacturing tooling
specifically designed for use in manufacturing commercial airplanes or
components of such airplanes, or making sales, at retail or wholesale,
of such tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business shall, in the case of
manufacturers, be equal to the value of the product manufactured and
the gross proceeds of sales of the product manufactured, or in the case
of processors for hire, be equal to the gross income of the business,
multiplied by the rate of 0.2904 percent.
(c) For the purposes of this subsection (11), "commercial airplane"
and "component" have the same meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person eligible for the tax rate under this subsection (11) must report
as required under RCW 82.32.545.
(e) This subsection (11) does not apply on and after July 1, 2024.
(12)(a) Until July 1, 2024, upon every person engaging within this
state in the business of extracting timber or extracting for hire
timber; as to such persons the amount of tax with respect to the
business shall, in the case of extractors, be equal to the value of
products, including byproducts, extracted, or in the case of extractors
for hire, be equal to the gross income of the business, multiplied by
the rate of 0.4235 percent from July 1, 2006, through June 30, 2007,
and 0.2904 percent from July 1, 2007, through June 30, 2024.
(b) Until July 1, 2024, upon every person engaging within this
state in the business of manufacturing or processing for hire: (i)
Timber into timber products or wood products; or (ii) timber products
into other timber products or wood products; as to such persons the
amount of the tax with respect to the business shall, in the case of
manufacturers, be equal to the value of products, including byproducts,
manufactured, or in the case of processors for hire, be equal to the
gross income of the business, multiplied by the rate of 0.4235 percent
from July 1, 2006, through June 30, 2007, and 0.2904 percent from July
1, 2007, through June 30, 2024.
(c) Until July 1, 2024, upon every person engaging within this
state in the business of selling at wholesale: (i) Timber extracted by
that person; (ii) timber products manufactured by that person from
timber or other timber products; or (iii) wood products manufactured by
that person from timber or timber products; as to such persons the
amount of the tax with respect to the business shall be equal to the
gross proceeds of sales of the timber, timber products, or wood
products multiplied by the rate of 0.4235 percent from July 1, 2006,
through June 30, 2007, and 0.2904 percent from July 1, 2007, through
June 30, 2024.
(d) Until July 1, 2024, upon every person engaging within this
state in the business of selling standing timber; as to such persons
the amount of the tax with respect to the business shall be equal to
the gross income of the business multiplied by the rate of 0.2904
percent. For purposes of this subsection (12)(d), "selling standing
timber" means the sale of timber apart from the land, where the buyer
is required to sever the timber within thirty months from the date of
the original contract, regardless of the method of payment for the
timber and whether title to the timber transfers before, upon, or after
severance.
(e) For purposes of this subsection, the following definitions
apply:
(i) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven
cellulosic fibers held together largely by hydrogen bonding. "Paper
and paper products" includes newsprint; office, printing, fine, and
pressure-sensitive papers; paper napkins, towels, and toilet tissue;
kraft bag, construction, and other kraft industrial papers; paperboard,
liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and
related types of cellulosic products containing primarily, by weight or
volume, cellulosic materials. "Paper and paper products" does not
include books, newspapers, magazines, periodicals, and other printed
publications, advertising materials, calendars, and similar types of
printed materials.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (12)(e)(iii), "postconsumer
waste" means a finished material that would normally be disposed of as
solid waste, having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or
publicly owned land. "Timber" does not include Christmas trees that
are cultivated by agricultural methods or short-rotation hardwoods as
defined in RCW 84.33.035.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products
obtained wholly from the processing of timber, short-rotation hardwoods
as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional
lumber; engineered wood products such as particleboard, oriented strand
board, medium density fiberboard, and plywood; wood doors; wood
windows; and biocomposite surface products.
(13) Upon every person engaging within this state in inspecting,
testing, labeling, and storing canned salmon owned by another person,
as to such persons, the amount of tax with respect to such activities
shall be equal to the gross income derived from such activities
multiplied by the rate of 0.484 percent.
(14) Upon every person engaging within this state in the business
of printing, and of publishing newspapers, periodicals, or magazines,
the amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.2904 percent.
Sec. 2 RCW 82.04.280 and 2006 c 300 s 6 are each amended to read
as follows:
(1) Upon every person engaging within this state in the business
of: (((1) Printing, and of publishing newspapers, periodicals, or
magazines; (2))) (a) Building, repairing or improving any street,
place, road, highway, easement, right-of-way, mass public
transportation terminal or parking facility, bridge, tunnel, or trestle
which is owned by a municipal corporation or political subdivision of
the state or by the United States and which is used or to be used,
primarily for foot or vehicular traffic including mass transportation
vehicles of any kind and including any readjustment, reconstruction or
relocation of the facilities of any public, private or cooperatively
owned utility or railroad in the course of such building, repairing or
improving, the cost of which readjustment, reconstruction, or
relocation, is the responsibility of the public authority whose street,
place, road, highway, easement, right-of-way, mass public
transportation terminal or parking facility, bridge, tunnel, or trestle
is being built, repaired or improved; (((3))) (b) extracting for hire
or processing for hire, except persons taxable as extractors for hire
or processors for hire under another section of this chapter; (((4)))
(c) operating a cold storage warehouse or storage warehouse, but not
including the rental of cold storage lockers; (((5))) (d) representing
and performing services for fire or casualty insurance companies as an
independent resident managing general agent licensed under the
provisions of RCW 48.05.310; (((6))) (e) radio and television
broadcasting, excluding network, national and regional advertising
computed as a standard deduction based on the national average thereof
as annually reported by the Federal Communications Commission, or in
lieu thereof by itemization by the individual broadcasting station, and
excluding that portion of revenue represented by the out-of-state
audience computed as a ratio to the station's total audience as
measured by the 100 micro-volt signal strength and delivery by wire, if
any; (((7))) (f) engaging in activities which bring a person within the
definition of consumer contained in RCW 82.04.190(6); as to such
persons, the amount of tax on such business ((shall be)) is equal to
the gross income of the business multiplied by the rate of 0.484
percent.
(2) As used in this section((,)):
(a) "Cold storage warehouse" means a storage warehouse used to
store fresh and/or frozen perishable fruits or vegetables, meat,
seafood, dairy products, or fowl, or any combination thereof, at a
desired temperature to maintain the quality of the product for orderly
marketing.
((As used in this section,)) (b) "Storage warehouse" means a
building or structure, or any part thereof, in which goods, wares, or
merchandise are received for storage for compensation, except field
warehouses, fruit warehouses, fruit packing plants, warehouses licensed
under chapter 22.09 RCW, public garages storing automobiles, railroad
freight sheds, docks and wharves, and "self-storage" or "mini storage"
facilities whereby customers have direct access to individual storage
areas by separate entrance. "Storage warehouse" does not include a
building or structure, or that part of such building or structure, in
which an activity taxable under RCW 82.04.272 is conducted.
((As used in this section,)) (c) "Periodical or magazine" means a
printed publication, other than a newspaper, issued regularly at stated
intervals at least once every three months, including any supplement or
special edition of the publication.
Sec. 3 RCW 82.04.280 and 2006 c 300 s 7 are each amended to read
as follows:
(1) Upon every person engaging within this state in the business
of: (((1) Printing, and of publishing newspapers, periodicals, or
magazines; (2))) (a) Building, repairing or improving any street,
place, road, highway, easement, right-of-way, mass public
transportation terminal or parking facility, bridge, tunnel, or trestle
which is owned by a municipal corporation or political subdivision of
the state or by the United States and which is used or to be used,
primarily for foot or vehicular traffic including mass transportation
vehicles of any kind and including any readjustment, reconstruction or
relocation of the facilities of any public, private or cooperatively
owned utility or railroad in the course of such building, repairing or
improving, the cost of which readjustment, reconstruction, or
relocation, is the responsibility of the public authority whose street,
place, road, highway, easement, right-of-way, mass public
transportation terminal or parking facility, bridge, tunnel, or trestle
is being built, repaired or improved; (((3))) (b) extracting for hire
or processing for hire, except persons taxable as extractors for hire
or processors for hire under another section of this chapter; (((4)))
(c) operating a cold storage warehouse or storage warehouse, but not
including the rental of cold storage lockers; (((5))) (d) representing
and performing services for fire or casualty insurance companies as an
independent resident managing general agent licensed under the
provisions of RCW 48.05.310; (((6))) (e) radio and television
broadcasting, excluding network, national and regional advertising
computed as a standard deduction based on the national average thereof
as annually reported by the Federal Communications Commission, or in
lieu thereof by itemization by the individual broadcasting station, and
excluding that portion of revenue represented by the out-of-state
audience computed as a ratio to the station's total audience as
measured by the 100 micro-volt signal strength and delivery by wire, if
any; (((7))) (f) engaging in activities which bring a person within the
definition of consumer contained in RCW 82.04.190(6); as to such
persons, the amount of tax on such business ((shall be)) is equal to
the gross income of the business multiplied by the rate of 0.484
percent.
(2) As used in this section((,)):
(a) "Cold storage warehouse" means a storage warehouse used to
store fresh and/or frozen perishable fruits or vegetables, meat,
seafood, dairy products, or fowl, or any combination thereof, at a
desired temperature to maintain the quality of the product for orderly
marketing.
((As used in this section,)) (b) "Storage warehouse" means a
building or structure, or any part thereof, in which goods, wares, or
merchandise are received for storage for compensation, except field
warehouses, fruit warehouses, fruit packing plants, warehouses licensed
under chapter 22.09 RCW, public garages storing automobiles, railroad
freight sheds, docks and wharves, and "self-storage" or "mini storage"
facilities whereby customers have direct access to individual storage
areas by separate entrance. "Storage warehouse" does not include a
building or structure, or that part of such building or structure, in
which an activity taxable under RCW 82.04.272 is conducted.
((As used in this section,)) (c) "Periodical or magazine" means a
printed publication, other than a newspaper, issued regularly at stated
intervals at least once every three months, including any supplement or
special edition of the publication.
Sec. 4 RCW 35.102.150 and 2006 c 272 s 1 are each amended to read
as follows:
Notwithstanding RCW 35.102.130, a city that imposes a business and
occupation tax ((shall)) must allocate a person's gross income from the
activities of printing, and of publishing newspapers, periodicals, or
magazines, to the principal place in this state from which the
taxpayer's business is directed or managed. As used in this section,
the activities of printing, and of publishing newspapers, periodicals,
or magazines((, have the same meanings as attributed to those terms in
RCW 82.04.280(1) by the department of revenue)) are those activities to
which the applicable tax rate in RCW 82.04.260(14) applies.
Sec. 5 RCW 82.04.050 and 2007 c 54 s 4 and 2007 c 6 s 1004 are
each reenacted and amended to read as follows:
(1) "Sale at retail" or "retail sale" means every sale of tangible
personal property (including articles produced, fabricated, or
imprinted) to all persons irrespective of the nature of their business
and including, among others, without limiting the scope hereof, persons
who install, repair, clean, alter, improve, construct, or decorate real
or personal property of or for consumers other than a sale to a person
who presents a resale certificate under RCW 82.04.470 and who:
(a) Purchases for the purpose of resale as tangible personal
property in the regular course of business without intervening use by
such person, but a purchase for the purpose of resale by a regional
transit authority under RCW 81.112.300 is not a sale for resale; or
(b) Installs, repairs, cleans, alters, imprints, improves,
constructs, or decorates real or personal property of or for consumers,
if such tangible personal property becomes an ingredient or component
of such real or personal property without intervening use by such
person; or
(c) Purchases for the purpose of consuming the property purchased
in producing for sale a new article of tangible personal property or
substance, of which such property becomes an ingredient or component or
is a chemical used in processing, when the primary purpose of such
chemical is to create a chemical reaction directly through contact with
an ingredient of a new article being produced for sale; or
(d) Purchases for the purpose of consuming the property purchased
in producing ferrosilicon which is subsequently used in producing
magnesium for sale, if the primary purpose of such property is to
create a chemical reaction directly through contact with an ingredient
of ferrosilicon; or
(e) Purchases for the purpose of providing the property to
consumers as part of competitive telephone service, as defined in RCW
82.04.065. The term shall include every sale of tangible personal
property which is used or consumed or to be used or consumed in the
performance of any activity classified as a "sale at retail" or "retail
sale" even though such property is resold or utilized as provided in
(a), (b), (c), (d), or (e) of this subsection following such use. The
term also means every sale of tangible personal property to persons
engaged in any business which is taxable under RCW 82.04.280 (((2)))
(1)(a) and (((7))) (f), 82.04.290, and 82.04.2908; or
(f) Purchases for the purpose of satisfying the person's
obligations under an extended warranty as defined in subsection (7) of
this section, if such tangible personal property replaces or becomes an
ingredient or component of property covered by the extended warranty
without intervening use by such person.
(2) The term "sale at retail" or "retail sale" shall include the
sale of or charge made for tangible personal property consumed and/or
for labor and services rendered in respect to the following:
(a) The installing, repairing, cleaning, altering, imprinting, or
improving of tangible personal property of or for consumers, including
charges made for the mere use of facilities in respect thereto, but
excluding charges made for the use of self-service laundry facilities,
and also excluding sales of laundry service to nonprofit health care
facilities, and excluding services rendered in respect to live animals,
birds and insects;
(b) The constructing, repairing, decorating, or improving of new or
existing buildings or other structures under, upon, or above real
property of or for consumers, including the installing or attaching of
any article of tangible personal property therein or thereto, whether
or not such personal property becomes a part of the realty by virtue of
installation, and shall also include the sale of services or charges
made for the clearing of land and the moving of earth excepting the
mere leveling of land used in commercial farming or agriculture;
(c) The constructing, repairing, or improving of any structure
upon, above, or under any real property owned by an owner who conveys
the property by title, possession, or any other means to the person
performing such construction, repair, or improvement for the purpose of
performing such construction, repair, or improvement and the property
is then reconveyed by title, possession, or any other means to the
original owner;
(d) The cleaning, fumigating, razing, or moving of existing
buildings or structures, but shall not include the charge made for
janitorial services; and for purposes of this section the term
"janitorial services" shall mean those cleaning and caretaking services
ordinarily performed by commercial janitor service businesses
including, but not limited to, wall and window washing, floor cleaning
and waxing, and the cleaning in place of rugs, drapes and upholstery.
The term "janitorial services" does not include painting, papering,
repairing, furnace or septic tank cleaning, snow removal or
sandblasting;
(e) Automobile towing and similar automotive transportation
services, but not in respect to those required to report and pay taxes
under chapter 82.16 RCW;
(f) The furnishing of lodging and all other services by a hotel,
rooming house, tourist court, motel, trailer camp, and the granting of
any similar license to use real property, as distinguished from the
renting or leasing of real property, and it shall be presumed that the
occupancy of real property for a continuous period of one month or more
constitutes a rental or lease of real property and not a mere license
to use or enjoy the same. For the purposes of this subsection, it
shall be presumed that the sale of and charge made for the furnishing
of lodging for a continuous period of one month or more to a person is
a rental or lease of real property and not a mere license to enjoy the
same;
(g) Persons taxable under (a), (b), (c), (d), (e), and (f) of this
subsection when such sales or charges are for property, labor and
services which are used or consumed in whole or in part by such persons
in the performance of any activity defined as a "sale at retail" or
"retail sale" even though such property, labor and services may be
resold after such use or consumption. Nothing contained in this
subsection shall be construed to modify subsection (1) of this section
and nothing contained in subsection (1) of this section shall be
construed to modify this subsection.
(3) The term "sale at retail" or "retail sale" shall include the
sale of or charge made for personal, business, or professional services
including amounts designated as interest, rents, fees, admission, and
other service emoluments however designated, received by persons
engaging in the following business activities:
(a) Amusement and recreation services including but not limited to
golf, pool, billiards, skating, bowling, ski lifts and tows, day trips
for sightseeing purposes, and others, when provided to consumers;
(b) Abstract, title insurance, and escrow services;
(c) Credit bureau services;
(d) Automobile parking and storage garage services;
(e) Landscape maintenance and horticultural services but excluding
(i) horticultural services provided to farmers and (ii) pruning,
trimming, repairing, removing, and clearing of trees and brush near
electric transmission or distribution lines or equipment, if performed
by or at the direction of an electric utility;
(f) Service charges associated with tickets to professional
sporting events; and
(g) The following personal services: Physical fitness services,
tanning salon services, tattoo parlor services, steam bath services,
turkish bath services, escort services, and dating services.
(4)(a) The term shall also include:
(i) The renting or leasing of tangible personal property to
consumers; and
(ii) Providing tangible personal property along with an operator
for a fixed or indeterminate period of time. A consideration of this
is that the operator is necessary for the tangible personal property to
perform as designed. For the purpose of this subsection (4)(a)(ii), an
operator must do more than maintain, inspect, or set up the tangible
personal property.
(b) The term shall not include the renting or leasing of tangible
personal property where the lease or rental is for the purpose of
sublease or subrent.
(5) The term shall also include the providing of "competitive
telephone service," "telecommunications service," or "ancillary
services," as those terms are defined in RCW 82.04.065, to consumers.
(6) The term shall also include the sale of prewritten computer
software other than a sale to a person who presents a resale
certificate under RCW 82.04.470, regardless of the method of delivery
to the end user, but shall not include custom software or the
customization of prewritten computer software.
(7) The term shall also include the sale of or charge made for an
extended warranty to a consumer. For purposes of this subsection,
"extended warranty" means an agreement for a specified duration to
perform the replacement or repair of tangible personal property at no
additional charge or a reduced charge for tangible personal property,
labor, or both, or to provide indemnification for the replacement or
repair of tangible personal property, based on the occurrence of
specified events. The term "extended warranty" does not include an
agreement, otherwise meeting the definition of extended warranty in
this subsection, if no separate charge is made for the agreement and
the value of the agreement is included in the sales price of the
tangible personal property covered by the agreement. For purposes of
this subsection, "sales price" has the same meaning as in RCW
82.08.010.
(8) The term shall not include the sale of or charge made for labor
and services rendered in respect to the building, repairing, or
improving of any street, place, road, highway, easement, right-of-way,
mass public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state or by the United States and which is
used or to be used primarily for foot or vehicular traffic including
mass transportation vehicles of any kind.
(9) The term shall also not include sales of chemical sprays or
washes to persons for the purpose of postharvest treatment of fruit for
the prevention of scald, fungus, mold, or decay, nor shall it include
sales of feed, seed, seedlings, fertilizer, agents for enhanced
pollination including insects such as bees, and spray materials to:
(a) Persons who participate in the federal conservation reserve
program, the environmental quality incentives program, the wetlands
reserve program, and the wildlife habitat incentives program, or their
successors administered by the United States department of agriculture;
(b) farmers for the purpose of producing for sale any agricultural
product; and (c) farmers acting under cooperative habitat development
or access contracts with an organization exempt from federal income tax
under Title 26 U.S.C. Sec. 501(c)(3) of the internal revenue code or
the Washington state department of fish and wildlife to produce or
improve wildlife habitat on land that the farmer owns or leases.
(10) The term shall not include the sale of or charge made for
labor and services rendered in respect to the constructing, repairing,
decorating, or improving of new or existing buildings or other
structures under, upon, or above real property of or for the United
States, any instrumentality thereof, or a county or city housing
authority created pursuant to chapter 35.82 RCW, including the
installing, or attaching of any article of tangible personal property
therein or thereto, whether or not such personal property becomes a
part of the realty by virtue of installation. Nor shall the term
include the sale of services or charges made for the clearing of land
and the moving of earth of or for the United States, any
instrumentality thereof, or a county or city housing authority. Nor
shall the term include the sale of services or charges made for
cleaning up for the United States, or its instrumentalities,
radioactive waste and other byproducts of weapons production and
nuclear research and development.
(11) The term shall not include the sale of or charge made for
labor, services, or tangible personal property pursuant to agreements
providing maintenance services for bus, rail, or rail fixed guideway
equipment when a regional transit authority is the recipient of the
labor, services, or tangible personal property, and a transit agency,
as defined in RCW 81.104.015, performs the labor or services.
Sec. 6 RCW 82.08.806 and 2004 c 8 s 2 are each amended to read as
follows:
(1) The tax levied by RCW 82.08.020 ((shall)) does not apply to
sales, to a printer or publisher, of computer equipment, including
repair parts and replacement parts for such equipment, when the
computer equipment is used primarily in the printing or publishing of
any printed material, or to sales of or charges made for labor and
services rendered in respect to installing, repairing, cleaning,
altering, or improving the computer equipment. This exemption applies
only to computer equipment not otherwise exempt under RCW 82.08.02565.
(2) A person taking the exemption under this section must keep
records necessary for the department to verify eligibility under this
section. This exemption is available only when the purchaser provides
the seller with an exemption certificate in a form and manner
prescribed by the department. The seller shall retain a copy of the
certificate for the seller's files.
(3) The definitions in this subsection (3) apply throughout this
section, unless the context clearly requires otherwise.
(a) "Computer" has the same meaning as in RCW 82.04.215.
(b) "Computer equipment" means a computer and the associated
physical components that constitute a computer system, including
monitors, keyboards, printers, modems, scanners, pointing devices, and
other computer peripheral equipment, cables, servers, and routers.
"Computer equipment" also includes digital cameras and computer
software.
(c) "Computer software" has the same meaning as in RCW 82.04.215.
(d) "Primarily" means greater than fifty percent as measured by
time.
(e) "Printer or publisher" means a person, as defined in RCW
82.04.030, who is subject to tax under RCW ((82.04.280(1)))
82.04.260(14).
(4) "Computer equipment" does not include computer equipment that
is used primarily for administrative purposes including but not limited
to payroll processing, accounting, customer service, telemarketing, and
collection. If computer equipment is used simultaneously for
administrative and nonadministrative purposes, the administrative use
shall be disregarded during the period of simultaneous use for purposes
of determining whether the computer equipment is used primarily for
administrative purposes.
Sec. 7 RCW 82.08.820 and 2006 c 354 s 11 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses or grain elevators and retailers who own or operate
distribution centers, and who have paid the tax levied by RCW 82.08.020
on:
(a) Material-handling and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment; or
(b) Construction of a warehouse or grain elevator, including
materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Cold storage warehouse" has the meaning provided in RCW
82.74.010;
(c) "Construction" means the actual construction of a warehouse or
grain elevator that did not exist before the construction began.
"Construction" includes expansion if the expansion adds at least
twenty-five thousand square feet of additional space to an existing
cold storage warehouse, at least two hundred thousand square feet of
additional space to an existing warehouse other than a cold storage
warehouse, or additional storage capacity of at least one million
bushels to an existing grain elevator. "Construction" does not include
renovation, remodeling, or repair;
(d) "Department" means the department of revenue;
(e) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(f) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(g) "Grain elevator" means a structure used for storage and
handling of grain in bulk;
(h) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(i) "Person" has the meaning given in RCW 82.04.030;
(j) "Retailer" means a person who makes "sales at retail" as
defined in chapter 82.04 RCW of tangible personal property;
(k) "Square footage" means the product of the two horizontal
dimensions of each floor of a specific warehouse. The entire footprint
of the warehouse shall be measured in calculating the square footage,
including space that juts out from the building profile such as loading
docks. "Square footage" does not mean the aggregate of the square
footage of more than one warehouse at a location or the aggregate of
the square footage of warehouses at more than one location;
(l) "Third-party warehouser" means a person taxable under RCW
82.04.280(((4))) (1)(c);
(m) "Warehouse" means an enclosed building or structure in which
finished goods are stored. A warehouse building or structure may have
more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(n) "Wholesaler" means a person who makes "sales at wholesale" as
defined in chapter 82.04 RCW of tangible personal property, but
"wholesaler" does not include a person who makes sales exempt under RCW
82.04.330.
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more, other than cold storage warehouses, and for grain elevators with
bushel capacity of two million or more, the remittance is equal to one
hundred percent of the amount of tax paid for qualifying construction,
materials, service, and labor, and fifty percent of the amount of tax
paid for qualifying material-handling equipment and racking equipment,
and labor and services rendered in respect to installing, repairing,
cleaning, altering, or improving the equipment. For cold storage
warehouses with square footage of twenty-five thousand or more, the
remittance is equal to one hundred percent of the amount of tax paid
for qualifying construction, materials, service, and labor, and one
hundred percent of the amount of tax paid for qualifying material-
handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment;
location and size of warehouses and grain elevators; and construction
invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment
and racking equipment for which an exemption, credit, or deferral has
been or is being received under chapter 82.60, 82.62, or 82.63 RCW or
RCW 82.08.02565 or 82.12.02565 are not eligible for any remittance
under this section. Warehouses and grain elevators upon which
construction was initiated before May 20, 1997, are not eligible for a
remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not
eligible for a remittance under this section unless the underlying
ownership of the warehouse or grain elevator and the material-handling
equipment and racking equipment vests exclusively in the same person,
or unless the lessor by written contract agrees to pass the economic
benefit of the remittance to the lessee in the form of reduced rent
payments.
Sec. 8 RCW 82.08.820 and 2006 c 354 s 12 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses or grain elevators and retailers who own or operate
distribution centers, and who have paid the tax levied by RCW 82.08.020
on:
(a) Material-handling and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment; or
(b) Construction of a warehouse or grain elevator, including
materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Construction" means the actual construction of a warehouse or
grain elevator that did not exist before the construction began.
"Construction" includes expansion if the expansion adds at least two
hundred thousand square feet of additional space to an existing
warehouse or additional storage capacity of at least one million
bushels to an existing grain elevator. "Construction" does not include
renovation, remodeling, or repair;
(c) "Department" means the department of revenue;
(d) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(e) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(f) "Grain elevator" means a structure used for storage and
handling of grain in bulk;
(g) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(h) "Person" has the meaning given in RCW 82.04.030;
(i) "Retailer" means a person who makes "sales at retail" as
defined in chapter 82.04 RCW of tangible personal property;
(j) "Square footage" means the product of the two horizontal
dimensions of each floor of a specific warehouse. The entire footprint
of the warehouse shall be measured in calculating the square footage,
including space that juts out from the building profile such as loading
docks. "Square footage" does not mean the aggregate of the square
footage of more than one warehouse at a location or the aggregate of
the square footage of warehouses at more than one location;
(k) "Third-party warehouser" means a person taxable under RCW
82.04.280(((4))) (1)(c);
(l) "Warehouse" means an enclosed building or structure in which
finished goods are stored. A warehouse building or structure may have
more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(m) "Wholesaler" means a person who makes "sales at wholesale" as
defined in chapter 82.04 RCW of tangible personal property, but
"wholesaler" does not include a person who makes sales exempt under RCW
82.04.330.
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more and for grain elevators with bushel capacity of two million or
more, the remittance is equal to one hundred percent of the amount of
tax paid for qualifying construction, materials, service, and labor,
and fifty percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment;
location and size of warehouses and grain elevators; and construction
invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment
and racking equipment for which an exemption, credit, or deferral has
been or is being received under chapter 82.60, 82.62, or 82.63 RCW or
RCW 82.08.02565 or 82.12.02565 are not eligible for any remittance
under this section. Warehouses and grain elevators upon which
construction was initiated before May 20, 1997, are not eligible for a
remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not
eligible for a remittance under this section unless the underlying
ownership of the warehouse or grain elevator and the material-handling
equipment and racking equipment vests exclusively in the same person,
or unless the lessor by written contract agrees to pass the economic
benefit of the remittance to the lessee in the form of reduced rent
payments.
Sec. 9 RCW 82.12.020 and 2005 c 514 s 105 are each amended to
read as follows:
(1) There is ((hereby)) levied and ((there shall be)) collected
from every person in this state a tax or excise for the privilege of
using within this state as a consumer: (a) Any article of tangible
personal property purchased at retail, or acquired by lease, gift,
repossession, or bailment, or extracted or produced or manufactured by
the person so using the same, or otherwise furnished to a person
engaged in any business taxable under RCW 82.04.280 (((2))) (1)(a) or
(((7))) (f); (b) any prewritten computer software, regardless of the
method of delivery, but excluding prewritten computer software that is
either provided free of charge or is provided for temporary use in
viewing information, or both; or (c) any extended warranty.
(2) This tax shall apply to the use of every extended warranty,
service defined as a retail sale in RCW 82.04.050 (2)(a) or (3)(a), and
the use of every article of tangible personal property, including
property acquired at a casual or isolated sale, and including
byproducts used by the manufacturer thereof, except as hereinafter
provided, irrespective of whether the article or similar articles are
manufactured or are available for purchase within this state.
(3) The provisions of this chapter do not apply in respect to the
use of any article of tangible personal property, extended warranty, or
service taxable under RCW 82.04.050 (2)(a) or (3)(a), purchased at
retail or acquired by lease, gift, or bailment if the sale to, or the
use by, the present user or his bailor or donor has already been
subjected to the tax under chapter 82.08 RCW or this chapter and the
tax has been paid by the present user or by his bailor or donor.
(4) Except as provided in this section, payment by one purchaser or
user of tangible personal property, extended warranty, or service of
the tax imposed by chapter 82.08 or 82.12 RCW shall not have the effect
of exempting any other purchaser or user of the same property, extended
warranty, or service from the taxes imposed by such chapters. If the
sale to, or the use by, the present user or his or her bailor or donor
has already been subjected to the tax under chapter 82.08 RCW or this
chapter and the tax has been paid by the present user or by his or her
bailor or donor; or in respect to the use of property acquired by
bailment and the tax has once been paid based on reasonable rental as
determined by RCW 82.12.060 measured by the value of the article at
time of first use multiplied by the tax rate imposed by chapter 82.08
RCW or this chapter as of the time of first use; or in respect to the
use of any article of tangible personal property acquired by bailment,
if the property was acquired by a previous bailee from the same bailor
for use in the same general activity and the original bailment was
prior to June 9, 1961, the tax imposed by this chapter does not apply.
(5) The tax shall be levied and collected in an amount equal to the
value of the article used, value of the extended warranty used, or
value of the service used by the taxpayer multiplied by the rates in
effect for the retail sales tax under RCW 82.08.020, except in the case
of a seller required to collect use tax from the purchaser, the tax
shall be collected in an amount equal to the purchase price multiplied
by the rate in effect for the retail sales tax under RCW 82.08.020.
NEW SECTION. Sec. 10 A new section is added to chapter 82.32 RCW
to read as follows:
(1)(a) Every person claiming the preferential rate provided in RCW
82.04.260(14) must file a complete annual report with the department.
The report is due by March 31st of the year following any calendar year
in which a person is eligible to claim the preferential rate provided
in RCW 82.04.260(14). The department may extend the due date for
timely filing of annual reports under this section as provided in RCW
82.32.590.
(b) The report must include information detailing employment,
wages, and employer-provided health and retirement benefits for
employment positions in Washington for the year that the preferential
rate was claimed. The report must not include names of employees. The
report must also detail employment by the total number of full-time,
part-time, and temporary positions for the year that the tax preference
was claimed.
(c) If a person filing a report under this section did not file a
report with the department in the previous calendar year, the report
filed under this section must also include employment, wage, and
benefit information for the calendar year immediately preceding the
calendar year for which the preferential rate provided in RCW
82.04.260(14) was claimed.
(2) As part of the annual report, the department may request
additional information necessary to measure the results of, or
determine eligibility for, the preferential rate provided in RCW
82.04.260(14).
(3) Other than information requested under subsection (2) of this
section, the information contained in an annual report filed under this
section is not subject to the confidentiality provisions of RCW
82.32.330 and may be disclosed to the public upon request.
(4) Except as otherwise provided by law, if a person claims the
preferential rate provided in RCW 82.04.260(14) but fails to submit a
report by the due date or any extension under RCW 82.32.590, the
department must declare the amount of the tax preference claimed for
the previous calendar year to be immediately due and payable. The
department must assess interest, but not penalties, on the amounts due
under this subsection. The interest must be assessed at the rate
provided for delinquent taxes under this chapter, retroactively to the
date the tax preference was claimed, and accrues until the taxes for
which the tax preference was claimed are repaid. Amounts due under
this subsection are not subject to the confidentiality provisions of
RCW 82.32.330 and may be disclosed to the public upon request.
(5) By November 1, 2014, and November 1, 2016, the fiscal
committees of the house of representatives and the senate, in
consultation with the department, must report to the legislature on the
effectiveness of the preferential rate provided in RCW 82.04.260(14).
The report must measure the effect of the preferential rate provided in
RCW 82.04.260(14) on job retention, net jobs created for Washington
residents, industry growth, and other factors as the committees select.
The report must include a discussion of principles to apply in
evaluating whether the legislature should continue the preferential
rate provided in RCW 82.04.260(14).
Sec. 11 RCW 82.32.590 and 2008 c 81 s 13 and 2008 c 15 s 7 are
each reenacted and amended to read as follows:
(1) If the department finds that the failure of a taxpayer to file
an annual survey or annual report under RCW 82.04.4452, 82.32.5351,
82.32.650, 82.32.630, 82.32.610, 82.82.020, section 10 of this act, or
82.74.040 by the due date was the result of circumstances beyond the
control of the taxpayer, the department shall extend the time for
filing the survey or report. Such extension shall be for a period of
thirty days from the date the department issues its written
notification to the taxpayer that it qualifies for an extension under
this section. The department may grant additional extensions as it
deems proper.
(2) In making a determination whether the failure of a taxpayer to
file an annual survey or annual report by the due date was the result
of circumstances beyond the control of the taxpayer, the department
shall be guided by rules adopted by the department for the waiver or
cancellation of penalties when the underpayment or untimely payment of
any tax was due to circumstances beyond the control of the taxpayer.
Sec. 12 RCW 82.32.600 and 2008 c 81 s 14 and 2008 c 15 s 8 are
each reenacted and amended to read as follows:
(1) Persons required to file annual surveys or annual reports under
RCW 82.04.4452, 82.32.5351, 82.32.545, 82.32.610, 82.32.630, 82.82.020,
section 10 of this act, or 82.74.040 must electronically file with the
department all surveys, reports, returns, and any other forms or
information the department requires in an electronic format as provided
or approved by the department. As used in this section, "returns" has
the same meaning as "return" in RCW 82.32.050.
(2) Any survey, report, return, or any other form or information
required to be filed in an electronic format under subsection (1) of
this section is not filed until received by the department in an
electronic format.
(3) The department may waive the electronic filing requirement in
subsection (1) of this section for good cause shown.
Sec. 13 2006 c 300 s 12 (uncodified) is amended to read as
follows:
(1)(a) ((This act and)) Section 3, chapter . . ., Laws of 2009
(section 3 of this act), section 7, chapter 300, Laws of 2006, and
section 4, chapter 149, Laws of 2003 are contingent upon the siting and
commercial operation of a significant semiconductor microchip
fabrication facility in the state of Washington.
(b) For the purposes of this section:
(i) "Commercial operation" means the same as "commencement of
commercial production" as used in RCW 82.08.965.
(ii) "Semiconductor microchip fabrication" means "manufacturing
semiconductor microchips" as defined in RCW 82.04.426.
(iii) "Significant" means the combined investment of new buildings
and new machinery and equipment in the buildings, at the commencement
of commercial production, will be at least one billion dollars.
(2) ((This act)) Chapter 149, Laws of 2003 takes effect the first
day of the month in which a contract for the construction of a
significant semiconductor fabrication facility is signed, as determined
by the director of the department of revenue.
(3)(a) The department of revenue ((shall)) must provide notice of
the effective date of this act to affected taxpayers, the legislature,
and others as deemed appropriate by the department.
(b) If, after making a determination that a contract has been
signed and ((this act)) chapter 149, Laws of 2003 is effective, the
department discovers that commencement of commercial production did not
take place within three years of the date the contract was signed, the
department ((shall)) must make a determination that ((this act))
chapter 149, Laws of 2003 is no longer effective, and all taxes that
would have been otherwise due ((shall be)) are deemed deferred taxes
and are immediately assessed and payable from any person reporting tax
under RCW 82.04.240(2) or claiming an exemption or credit under section
2 or 5 through 10 ((of this act)), chapter 149, Laws of 2003. The
department is not authorized to make a second determination regarding
the effective date of ((this act)) chapter 149, Laws of 2003.
NEW SECTION. Sec. 14 (1) Except as provided in subsections (2)
and (3) of this section, 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
July 1, 2009.
(2) Section 8 of this act takes effect July 1, 2012.
(3) Section 3 of this act takes effect if the contingency in
section 13 of this act occurs.
NEW SECTION. Sec. 15 (1) Section 7 of this act expires July 1,
2012.
(2) Section 2 of this act expires on the date that section 3 of
this act takes effect.