BILL REQ. #: H-0931.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/02/11. Referred to Committee on Ways & Means.
AN ACT Relating to ensuring the imposition of a tax or fee has clear and explicit basis in law; and adding a new chapter to Title 7 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) This section is intended to establish
how state and local laws, including statutes, ordinances, regulations,
and rules that impose a tax, fee, charge, surcharge, license, permit,
or other cost, whether public or private, should be interpreted with
respect to:
(a) Property, real or personal, tangible or intangible;
(b) Income;
(c) Service; or
(d) The ownership, possession, manufacture, use, sale, purchase, or
transfer of property, real or personal, tangible or intangible, income,
or service, including goods or labor.
(2) Property, real or personal, tangible or intangible, income, or
service, or the ownership, possession, manufacture, use, sale,
purchase, or transfer of any property, real or personal, tangible or
intangible, income, or service, including any goods or labor, located
in, derived in, operated in, or occurring in Washington is not subject
to taxation, except where clearly and expressly imposed by law.
(3) The following principles govern the construction of laws that
impose any tax:
(a) Property, real and personal, tangible and intangible, income,
and service, and the ownership, possession, manufacture, use, sale,
purchase, and transfer of property, real and personal, tangible and
intangible, income, and service, including goods and labor, will not be
taxed unless a governmental entity has imposed a tax by clear and
explicit language;
(b) There is no need to construe a law when the law's language is
plain;
(c) Laws imposing the tax must be strictly construed, though fairly
and in keeping with the ordinary meaning of the language employed;
(d) If there is any doubt regarding the exact meaning of a law
imposing the tax, the law must be construed in favor of the person who
is disputing the tax obligation and against the governmental entity
claiming the person has a tax obligation because nontaxation is the
rule and taxation is the exception;
(e) The burden of proving that a valid tax obligation exists rests
upon the governmental entity claiming that a tax obligation exists;
(f) If a governmental entity has imposed the tax, the tax must not
be enlarged by construction since it is reasonable to presume that the
governmental entity has stated in express terms all that it intended to
tax; and
(g) A tax must be limited to the very terms of the law enacted. If
not so limited, the tax would be enlarged beyond what the governmental
entity intended to tax.
(4) This section does not change the burden of showing that any
exemption, deduction, or credit applies.
(5)(a) Upon request, governmental entities seeking to collect a
disputed tax obligation must make available to the person disputing the
tax obligation all records, documents, or facts necessary for the
person to determine the historical background, intent, construction,
interpretation, application, or implementation of the law imposing the
tax.
(b) Failure to fully cooperate with the person may result in a
determination that the property, income, or service, or the ownership,
possession, manufacture, use, sale, purchase, or transfer, is not
taxable for the current year.
(6)(a) Upon request, persons who are disputing a tax obligation
must make available at reasonable times to the governmental entity
claiming the tax obligation exists for inspection, investigation, or
examination all property, records, documents, or facts necessary for
the governmental entity to determine the taxable status of the
obligation in dispute.
(b) Failure to fully cooperate with the governmental entity may
result in a determination that the property, income, or service, or the
ownership, possession, manufacture, use, sale, purchase, or transfer,
is taxable for the current year.
(7) For the purposes of this section, "tax" and "taxation" include
a tax, fee, charge, surcharge, license, permit, or other cost, whether
public or private.
NEW SECTION. Sec. 2 Section 1 of this act constitutes a new
chapter in Title