BILL REQ. #:  S-1109.1 

Read first time 01/30/09.   Referred to Committee on Environment, Water & Energy.

     AN ACT Relating to imposing an additional business and occupation tax on primary plastics and plastic product manufacturers; and adding a new chapter to Title 82 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds that the production of plastics worldwide consumes about two hundred seventy million metric tons of fossil fuel each year. This production represents a significant source of greenhouse gas emissions. It is the purpose of this chapter to accomplish greenhouse gas reductions by reducing the amount of plastics and plastic products and increasing the amount of carbon stored in managed forests.

NEW SECTION.  Sec. 2   (1) In addition to any other taxes, there is hereby levied a plastics tax collected by the department from every person engaging within the business of primary plastics manufacturing or of primary plastic container manufacturing in this state; as to such persons the amount of the tax is equal to the value of the products manufactured, multiplied by the rate of .215 percent.
     (2) "Primary" as used in "primary plastics manufacturing" and "primary plastic container manufacturing" for the purposes of this section must be defined by rule by the department.
     (3) For the purposes of this section:
     (a) "Container" has the same meaning as provided in RCW 70.95F.010;
     (b) "Plastic" and "plastics" have the same meaning as "plastic" in RCW 70.95F.010; and
     (c) "Plastics manufacturing" and "plastic container manufacturing" means manufacturing industries within the following classifications under the North American industry classification system: 3252, 3261, 3332, 3335, and 42.

NEW SECTION.  Sec. 3   Taxes collected under section 2 of this act must be deposited in the climate protection forestry account for financial incentives for the forestry sector created in section 4 of this act.

NEW SECTION.  Sec. 4   The climate protection forestry account is created in the state treasury. All receipts from the tax applied to primary plastics manufacturing or manufacturing plastic containers products paid under section 2 of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for reasonable administrative costs to develop, implement, and enforce this chapter. Additionally, moneys from the account may only be expended for the purpose of promoting emission reductions and carbon sequestration in forestry. The department of natural resources and the forest practices board must establish financial incentives for: (1) Forest landowners to maintain and actively manage their forest land using management activities, including but not limited to, thinning, fertilization, genetics, timber stand improvement, and fire management; (2) forest landowners to continue the production of timber and/or wood products; and (3) using wood in building materials instead of the more intensive fossil fuel products such as concrete, plastic, and steel.

NEW SECTION.  Sec. 5   To the extent applicable, all of the definitions of chapter 82.04 RCW and all of the provisions of chapter 82.32 RCW apply to the tax imposed in this chapter.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act constitute a new chapter in Title 82 RCW.