BILL REQ. #: S-3212.1
| State of Washington | 61st Legislature | 2009 Regular Session |
AN ACT Relating to providing grants to increase dental and medical services by a voter-approved sales and use tax on candy; amending RCW 82.08.0293 and 82.12.0293; creating a new section; making an appropriation; providing a contingent effective date; and providing for submission of certain sections of this act to a vote of the people.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.08.0293 and 2004 c 153 s 201 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of
food and food ingredients. "Food and food ingredients" means
substances, whether in liquid, concentrated, solid, frozen, dried, or
dehydrated form, that are sold for ingestion or chewing by humans and
are consumed for their taste or nutritional value. "Food and food
ingredients" does not include:
(a) "Alcoholic beverages," which means beverages that are suitable
for human consumption and contain one-half of one percent or more of
alcohol by volume; and
(b) "Tobacco," which means cigarettes, cigars, chewing or pipe
tobacco, or any other item that contains tobacco.
(2) The exemption of "food and food ingredients" provided for in
subsection (1) of this section shall not apply to prepared food, soft
drinks, candy, or dietary supplements.
(a) "Prepared food" means:
(i) Food sold in a heated state or heated by the seller;
(ii) Food sold with eating utensils provided by the seller,
including plates, knives, forks, spoons, glasses, cups, napkins, or
straws. A plate does not include a container or packaging used to
transport the food; or
(iii) Two or more food ingredients mixed or combined by the seller
for sale as a single item, except:
(A) Food that is only cut, repackaged, or pasteurized by the
seller; or
(B) Raw eggs, fish, meat, poultry, and foods containing these raw
animal foods requiring cooking by the consumer as recommended by the
federal food and drug administration in chapter 3, part 401.11 of The
Food Code, published by the food and drug administration, as amended or
renumbered as of January 1, 2003, so as to prevent foodborne illness.
(b) "Prepared food" does not include the following food or food
ingredients, if the food or food ingredients are sold without eating
utensils provided by the seller:
(i) Food sold by a seller whose proper primary North American
industry classification system (NAICS) classification is manufacturing
in sector 311, except subsector 3118 (bakeries), as provided in the
"North American industry classification system -- United States, 2002";
(ii) Food sold in an unheated state by weight or volume as a single
item; or
(iii) Bakery items. The term "bakery items" includes bread, rolls,
buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes,
tortes, pies, tarts, muffins, bars, cookies, or tortillas.
(c) "Soft drinks" means nonalcoholic beverages that contain natural
or artificial sweeteners. Soft drinks do not include beverages that
contain: Milk or milk products; soy, rice, or similar milk
substitutes; or greater than fifty percent of vegetable or fruit juice
by volume.
(d) "Candy" means a preparation of sugar, honey, or other natural
or artificial sweeteners in combination with chocolate, fruits, nuts,
or other ingredients or flavorings in the form of bars, drops, or
pieces. Candy does not include any preparation containing flour nor
does it include any products that require refrigeration.
(e) "Dietary supplement" means any product, other than tobacco,
intended to supplement the diet that:
(i) Contains one or more of the following dietary ingredients:
(A) A vitamin;
(B) A mineral;
(C) An herb or other botanical;
(D) An amino acid;
(E) A dietary substance for use by humans to supplement the diet by
increasing the total dietary intake; or
(F) A concentrate, metabolite, constituent, extract, or combination
of any ingredient described in this subsection;
(ii) Is intended for ingestion in tablet, capsule, powder, softgel,
gelcap, or liquid form, or if not intended for ingestion in such form,
is not represented as conventional food and is not represented for use
as a sole item of a meal or of the diet; and
(iii) Is required to be labeled as a dietary supplement,
identifiable by the "supplement facts" box found on the label as
required pursuant to 21 C.F.R. Sec. 101.36, as amended or renumbered as
of January 1, 2003.
(3) Notwithstanding anything in this section to the contrary, the
exemption of "food and food ingredients" provided in this section shall
apply to food and food ingredients that are furnished, prepared, or
served as meals:
(a) Under a state administered nutrition program for the aged as
provided for in the Older Americans Act (P.L. 95-478 Title III) and RCW
74.38.040(6); or
(b) That are provided to senior citizens, ((disabled persons))
individuals with disabilities, or low-income persons by a not-for-profit organization organized under chapter 24.03 or 24.12 RCW.
(4)(a) Subsection (1) of this section notwithstanding, the retail
sale of food and food ingredients is subject to sales tax under RCW
82.08.020 if the food and food ingredients are sold through a vending
machine, and in this case the selling price for purposes of RCW
82.08.020 is fifty-seven percent of the gross receipts.
(b) This subsection (4) does not apply to: (i) Candy; and (ii) hot
prepared food and food ingredients, other than food and food
ingredients which are heated after they have been dispensed from the
vending machine.
(c) For tax collected under this subsection (4), the requirements
that the tax be collected from the buyer and that the amount of tax be
stated as a separate item are waived.
Sec. 2 RCW 82.12.0293 and 2003 c 168 s 303 are each amended to
read as follows:
(1) The provisions of this chapter shall not apply in respect to
the use of food and food ingredients for human consumption. "Food and
food ingredients" has the same meaning as in RCW 82.08.0293.
(2) The exemption of "food and food ingredients" provided for in
subsection (1) of this section shall not apply to prepared food, soft
drinks, candy, or dietary supplements. "Prepared food," "soft drinks,"
"candy," and "dietary supplements" have the same meanings as in RCW
82.08.0293.
(3) Notwithstanding anything in this section to the contrary, the
exemption of "food and food ingredients" provided in this section shall
apply to food and food ingredients which are furnished, prepared, or
served as meals:
(a) Under a state administered nutrition program for the aged as
provided for in the Older Americans Act (P.L. 95-478 Title III) and RCW
74.38.040(6); or
(b) Which are provided to senior citizens, ((disabled persons))
individuals with disabilities, or low-income persons by a not-for-profit organization organized under chapter 24.03 or 24.12 RCW.
NEW SECTION. Sec. 3 The sum of forty million dollars, which
reflects the increased revenue receipts from sales tax on candy, is
appropriated to the state health care authority for the biennium ending
June 30, 2011, from the general fund solely for the authority to
provide one-time competitive grants to community health centers to
increase dental and medical services.
NEW SECTION. Sec. 4
(2) Pursuant to RCW 29A.72.050, the statement of subject and
concise description for the ballot title shall be as follows:
"The legislature has passed Senate Bill No. . . . (this act). This
bill would fund competitive grants to community health centers to
increase dental and medical services during the 2009-2011 biennium
through a sales tax on candy and gum."
NEW SECTION. Sec. 5 This act takes effect upon approval of
sections 1 through 3 of this act by the voters by December 15, 2009, as
provided in section 4 of this act. If sections 1 through 3 of this act
are not approved by the voters by December 15, 2009, as provided in
section 4 of this act, this act is null and void in its entirety.
NEW SECTION. Sec. 6 Captions used in this act are not any part
of the law.