BILL REQ. #: H-0318.1
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/01/11. Referred to Committee on Ways & Means.
AN ACT Relating to providing a state sales and use tax exemption on labor and materials used to reconstruct or repair structures damaged by arson; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and creating a new section.
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) RCW 82.08.020 does not apply to materials and labor and
services used in reconstructing or repairing any residence or other
structure damaged or destroyed by fire or an explosion related to the
fire. The exemption provided in this section is in the form of a
remittance and only applies to the state portion of the sales tax.
(2) To qualify for the exemption under this section, the following
conditions must be met:
(a) The property must be owned by a person: (i) Organized under
chapter 24.03 RCW; or (ii) reporting a taxable amount of less than one
million dollars in the calendar year prior to the year in which the
structure was damaged by fire. This subsection (2)(a) does not apply
to property used as residential property;
(b) A fire investigator, as evidenced by a written report, must
have determined that a person knowingly caused the fire that damaged or
destroyed the residence or other structure;
(c) The property owner or an employee of the property owner must
not have been convicted of arson or reckless burning related to the
residence or other structure damaged or destroyed by fire; and
(d) The sales or use tax is not covered under an insurance policy
on the residence or other structure damaged or destroyed by fire.
(3) A person seeking a remittance under this section must apply to
the department in a form and manner required by the department.
(4) The definitions in this subsection apply to this section.
(a) "Arson" and "reckless burning" have the meanings provided in
chapter 9A.48 RCW.
(b) "Residence" means a single-family dwelling unit regardless of
whether the unit is separate or part of a multiunit dwelling.
NEW SECTION. Sec. 2 A new section is added to chapter 82.12 RCW
to read as follows:
The provisions of this chapter do not apply in respect to materials
to be used in the reconstruction or repair of any home or other
structure damaged by arson. The exemption provided in this section is
in the form of a remittance and only applies to the state portion of
the use tax. The definitions and conditions in section 1 of this act
apply to this section.
NEW SECTION. Sec. 3 This act applies to labor and services
performed, and materials purchased, on or after August 1, 2011.