Passed by the Senate April 11, 2012 YEAS 35   BRAD OWEN ________________________________________ President of the Senate Passed by the House April 11, 2012 YEAS 74   FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is ENGROSSED SENATE BILL 6635 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
Approved May 2, 2012, 2:10 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | May 2, 2012 Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2012 2nd Special Session |
Read first time 04/04/12. Referred to Committee on Ways & Means.
AN ACT Relating to improving revenue and budget sustainability by repealing, modifying, or revising tax preference and license fees; amending RCW 82.04.4292, 82.04.4266, 82.04.4268, 82.04.4269, 82.04.260, 82.08.986, 82.08.986, 82.12.986, 66.24.630, 82.29A.020, 82.04.214, and 82.04.260; adding a new section to chapter 82.04 RCW; creating new sections; providing an effective date; providing a contingent effective date; providing expiration dates; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 101 A new section is added to chapter 82.04
RCW to read as follows:
(1) Amounts received as interest on loans originated by a person
located in more than ten states, or an affiliate of such person, and
primarily secured by first mortgages or trust deeds on nontransient
residential properties are subject to tax under RCW 82.04.290(2)(a).
(2) For the purposes of this subsection, a person is located in a
state if:
(a) The person or an affiliate of the person maintains a branch,
office, or one or more employees or representatives in the state; and
(b) Such in-state presence allows borrowers or potential borrowers
to contact the branch, office, employee, or representative concerning
the acquiring, negotiating, renegotiating, or restructuring of, or
making payments on, mortgages issued or to be issued by the person or
an affiliate of the person.
(3) For purposes of this section:
(a) "Affiliate" means a person is affiliated with another person,
and "affiliated" has the same meaning as in RCW 82.04.645; and
(b) "Interest" has the same meaning as in RCW 82.04.4292 and also
includes servicing fees described in RCW 82.04.4292(4).
Sec. 102 RCW 82.04.4292 and 2010 1st sp.s. c 23 s 301 are each
amended to read as follows:
(1) In computing tax there may be deducted from the measure of tax
by those engaged in banking, loan, security or other financial
businesses, interest received on investments or loans primarily secured
by first mortgages or trust deeds on nontransient residential
properties.
(2) Interest deductible under this section includes the portion of
fees charged to borrowers, including points and loan origination fees,
that is recognized over the life of the loan as an adjustment to yield
in the taxpayer's books and records according to generally accepted
accounting principles.
(3) Subsections (1) and (2) of this section notwithstanding, the
following is a nonexclusive list of items that are not deductible under
this section:
(a) Fees for specific services such as: Document preparation fees;
finder fees; brokerage fees; title examination fees; fees for credit
checks; notary fees; loan application fees; interest lock-in fees if
the loan is not made; servicing fees; and similar fees or amounts;
(b) Fees received in consideration for an agreement to make funds
available for a specific period of time at specified terms, commonly
referred to as commitment fees;
(c) Any other fees, or portion of a fee, that is not recognized
over the life of the loan as an adjustment to yield in the taxpayer's
books and records according to generally accepted accounting
principles;
(d) Gains on the sale of valuable rights such as service release
premiums, which are amounts received when servicing rights are sold;
and
(e) Gains on the sale of loans, except deferred loan origination
fees and points deductible under subsection (2) of this section, are
not to be considered part of the proceeds of sale of the loan.
(4) Notwithstanding subsection (3) of this section, in computing
tax there may be deducted from the measure of tax by those engaged in
banking, loan, security, or other financial businesses, amounts
received for servicing loans primarily secured by first mortgages or
trust deeds on nontransient residential properties, including such
loans that secure mortgage-backed or mortgage-related securities, but
only if:
(a)(i) The loans were originated by the person claiming a deduction
under this subsection (4) and that person either sold the loans on the
secondary market or securitized the loans and sold the securities on
the secondary market; or
(ii)(A) The person claiming a deduction under this subsection (4)
acquired the loans from the person that originated the loans through a
merger or acquisition of substantially all of the assets of the person
who originated the loans, or the person claiming a deduction under this
subsection (4) is affiliated with the person that originated the loans.
For purposes of this subsection, "affiliated" means under common
control. "Control" means the possession, directly or indirectly, of
more than fifty percent of the power to direct or cause the direction
of the management and policies of a person, whether through the
ownership of voting shares, by contract, or otherwise; and
(B) Either the person who originated the loans or the person
claiming a deduction under this subsection (4) sold the loans on the
secondary market or securitized the loans and sold the securities on
the secondary market; and
(b) The amounts received for servicing the loans are determined by
a percentage of the interest paid by the borrower and are only received
if the borrower makes interest payments.
(5) The deductions provided in this section do not apply to persons
subject to tax under section 101 of this act.
(6) By June 30, 2015, the joint legislative audit and review
committee must review the deductions provided in this section in
accordance with RCW 43.136.055 and make a recommendation as to whether
the deductions should be continued without modification, modified, or
terminated immediately.
Sec. 201 RCW 82.04.4266 and 2011 c 2 s 202 (Initiative Measure
No. 1107) are each amended to read as follows:
(1) This chapter does not apply to the value of products or the
gross proceeds of sales derived from:
(a) Manufacturing fruits or vegetables by canning, preserving,
freezing, processing, or dehydrating fresh fruits or vegetables; or
(b) 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. A person
taking an exemption under this subsection (1)(b) 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.
(2) A person claiming the exemption provided in this section must
file a complete annual survey with the department under RCW 82.32.585.
(3) This section expires July 1, ((2012)) 2015.
Sec. 202 RCW 82.04.4268 and 2010 c 114 s 112 are each amended to
read as follows:
(1) This chapter does not apply to the value of products or the
gross proceeds of sales derived from:
(a) Manufacturing dairy products; or
(b) Selling manufactured dairy products to purchasers who transport
in the ordinary course of business the goods out of this state. A
person taking an exemption under this subsection (1)(b) 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.
(2) "Dairy products" means 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.
(3) A person claiming the exemption provided in this section must
file a complete annual survey with the department under RCW 82.32.585.
(4) This section expires July 1, ((2012)) 2015.
Sec. 203 RCW 82.04.4269 and 2010 c 114 s 113 are each amended to
read as follows:
(1) This chapter does not apply to the value of products or the
gross proceeds of sales derived from:
(a) Manufacturing seafood products that remain in a raw, raw
frozen, or raw salted state at the completion of the manufacturing by
that person; or
(b) Selling manufactured seafood products that remain in a raw, raw
frozen, or raw salted state to purchasers who transport in the ordinary
course of business the goods out of this state. A person taking an
exemption under this subsection (1)(b) 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.
(2) A person claiming the exemption provided in this section must
file a complete annual survey with the department under RCW 82.32.585.
(3) This section expires July 1, ((2012)) 2015.
Sec. 204 RCW 82.04.260 and 2011 c 2 s 203 (Initiative Measure No.
1107) are each 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 by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, ((2012)) 2015, 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 is 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)) 2015, dairy products that as of
September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131,
133, and 135, including by-products 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 is 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)) 2015, 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 is 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 is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of 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 is 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 is 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 is 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 is 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 is 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 is
equal to the gross proceeds derived from such activities multiplied by
the rate of 0.275 percent. Persons subject to taxation under this
subsection are 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 is 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 must 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 or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
is 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 is 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.
(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 is, in the case of manufacturers, 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, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through 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 is, in the case of
manufacturers, 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 reporting under the tax rate provided in this subsection (11)
must file a complete annual report with the department under RCW
82.32.534.
(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 is, in the case of extractors, equal to the value of products,
including by-products, extracted, or in the case of extractors for
hire, 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 is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, 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 is 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 is 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.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection (12)
must file a complete annual survey with the department under RCW
82.32.585.
(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
is equal to the gross income derived from such activities multiplied by
the rate of 0.484 percent.
(14)(a) Upon every person engaging within this state in the
business of printing a newspaper, publishing a newspaper, or both, the
amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.2904 percent.
(b) A person reporting under the tax rate provided in this
subsection (14) must file a complete annual report with the department
under RCW 82.32.534.
NEW SECTION. Sec. 301 (1) It is the legislature's intent to
encourage immediate investments in technology facilities that can
provide an economic stimulus, sustain long-term jobs that provide
living wages, and help build the digital infrastructure that can enable
the state to be competitive for additional technology investment and
jobs.
(2) There is currently an intense competition for data center
construction and operation in many states including: Oregon, Arizona,
North and South Carolina, North Dakota, Iowa, Virginia, Texas, and
Illinois. Unprecedented incentives are available as a result of the
desire of these states to attract investments that will serve as a
catalyst for additional clusters of economic activity.
(3) Data center technology has advanced rapidly, with marked
increases in energy efficiency. Large, commercial-grade data centers
leverage the economies of scale to reduce energy consumption.
Combining digitized processes with the economies of scale recognized at
these data centers, today's enterprises can materially reduce the
energy they consume and greatly improve their efficiency.
(4) The legislature finds that offering an exemption for server and
related electrical equipment and installation will act as a stimulus to
incent immediate investment. This investment will bring jobs, tax
revenues, and economic growth to some of our state's rural areas.
Sec. 302 RCW 82.08.986 and 2010 1st sp.s. c 23 s 1601 are each
amended to read as follows:
(1) An exemption from the tax imposed by RCW 82.08.020 is provided
for sales to qualifying businesses and to qualifying tenants of
eligible server equipment to be installed, without intervening use, in
an eligible computer data center, and to charges made for labor and
services rendered in respect to installing eligible server equipment.
The exemption also applies to sales to qualifying businesses and to
qualifying tenants of eligible power infrastructure, including labor
and services rendered in respect to constructing, installing,
repairing, altering, or improving eligible power infrastructure.
(2)(a) In order to claim the exemption under this section, a
qualifying business or a qualifying tenant must submit an application
to the department for an exemption certificate. The application must
include the information necessary, as required by the department, to
determine that a business or tenant qualifies for the exemption under
this section. The department must issue exemption certificates to
qualifying businesses and qualifying tenants. The department may
assign a unique identification number to each exemption certificate
issued under this section.
(b) A qualifying business or a qualifying tenant claiming the
exemption under this section must present the seller with an exemption
certificate in a form and manner prescribed by the department. The
seller must retain a copy of the certificate for the seller's files.
(3)(a) Within six years of the date that the department issued an
exemption certificate under this section to a qualifying business or a
qualifying tenant with respect to an eligible computer data center, the
qualifying business or qualifying tenant must establish that net
employment at the eligible computer data center has increased by a
minimum of:
(i) Thirty-five family wage employment positions; or
(ii) Three family wage employment positions for each twenty
thousand square feet of space or less that is newly dedicated to
housing working servers at the eligible computer data center. For
qualifying ((businesses that lease space at an eligible computer data
center)) tenants, the number of family wage employment positions that
must be increased under this subsection (3)(a)(ii) is based only on the
space occupied by the ((lessee)) qualifying tenant in the eligible
computer data center.
(b) In calculating the net increase in family wage employment
positions:
(i) The owner of an eligible computer data center, in addition to
its own net increase in family wage employment positions, may include:
(A) The net increase in family wage employment positions employed
by qualifying ((businesses leasing space within the eligible computer
data center from the owner)) tenants; and
(B) The net increase in family wage employment positions described
in (c)(ii)(B) of this subsection (3).
(ii)(A) ((Lessees of the owner of an eligible computer data
center)) Qualifying tenants, in addition to their own net increase in
family wage employment positions, may include:
(I) A portion of the net increase in family wage employment
positions employed by the owner; and
(II) A portion of the net increase in family wage employment
positions described in (c)(ii)(B) of this subsection (3).
(B) The portion of the net increase in family wage employment
positions to be counted under this subsection (3)(b)(ii) by each
((lessee)) qualifying tenant must be in proportion to the amount of
space in the eligible computer data center occupied by the ((lessee))
qualifying tenant compared to the total amount of space in the eligible
computer data center occupied by all ((lessees that are qualifying
businesses)) qualifying tenants.
(c)(i) For purposes of this subsection, family wage employment
positions are new permanent employment positions requiring forty hours
of weekly work, or their equivalent, on a full-time basis at the
eligible computer data center and receiving a wage equivalent to or
greater than one hundred fifty percent of the per capita personal
income of the county in which the qualified project is located. An
employment position may not be counted as a family wage employment
position unless the employment position is entitled to health insurance
coverage provided by the employer of the employment position. For
purposes of this subsection (3)(c), "new permanent employment position"
means an employment position that did not exist or that had not
previously been filled as of the date that the department issued an
exemption certificate to the owner or ((lessee)) qualifying tenant of
an eligible computer data center, as the case may be.
(ii)(A) Family wage employment positions include positions filled
by employees of the owner of the eligible computer data center and by
employees of qualifying ((businesses leasing space from the owner of
the eligible computer data center)) tenants.
(B) Family wage employment positions also include individuals
performing work at an eligible computer data center as an independent
contractor hired by the owner of the eligible computer data center or
as an employee of an independent contractor hired by the owner of the
eligible computer data center, if the work is necessary for the
operation of the computer data center, such as security and building
maintenance, and provided that all of the requirements in (c)(i) of
this subsection (3) are met.
(d) All previously exempted sales and use taxes are immediately due
and payable for a qualifying business or qualifying tenant that does
not meet the requirements of this subsection.
(4) A qualifying business or a qualifying tenant claiming an
exemption under this section or RCW 82.12.986 must complete an annual
report with the department as required under RCW 82.32.534.
(5)(a) The exemption provided in this section does not apply to:
(i) Any person who has received the benefit of the deferral program
under chapter 82.60 RCW on: (A) The construction, renovation, or
expansion of a structure or structures used as a computer data center;
or (B) machinery or equipment used in a computer data center; and
(ii) Any person affiliated with a person within the scope of (a)(i)
of this subsection (5). ((For purposes of this subsection,
"affiliated" means that one person has a direct or indirect ownership
interest of at least twenty percent in another person.))
(b) If a person claims an exemption under this section and
subsequently receives the benefit of the deferral program under chapter
82.60 RCW on either the construction, renovation, or expansion of a
structure or structures used as a computer data center or machinery or
equipment used in a computer data center, the person must repay the
amount of taxes exempted under this section. Interest as provided in
chapter 82.32 RCW applies to amounts due under this section until paid
in full.
(6) For purposes of this section the following definitions apply
unless the context clearly requires otherwise:
(a) "Affiliated" means that one person has a direct or indirect
ownership interest of at least twenty percent in another person.
(b)(i) "Computer data center" means a facility comprised of one or
more buildings, which may be comprised of multiple businesses,
constructed or refurbished specifically, and used primarily, to house
working servers, where the facility has the following characteristics:
(A) Uninterruptible power supplies, generator backup power, or both;
(B) sophisticated fire suppression and prevention systems; and (C)
enhanced physical security, such as: Restricted access to the facility
to selected personnel; permanent security guards; video camera
surveillance; an electronic system requiring passcodes, keycards, or
biometric scans, such as hand scans and retinal or fingerprint
recognition; or similar security features.
(ii) For a computer data center comprised of multiple buildings,
each separate building constructed or refurbished specifically, and
used primarily, to house working servers is considered a computer data
center if it has all of the characteristics listed in (((a))) (b)(i)(A)
through (C) of this subsection (6).
(iii) A facility comprised of one building or more than one
building must have a combined square footage of at least one hundred
thousand square feet.
(((b))) (c) "Electronic data storage and data management services"
include, but are not limited to: Providing data storage and backup
services, providing computer processing power, hosting enterprise
software applications, and hosting web sites. The term also includes
providing services such as e-mail, web browsing and searching, media
applications, and other online services, regardless of whether a charge
is made for such services.
(((c))) (d)(i) "Eligible computer data center" means a computer
data center:
(A) Located in a rural county as defined in RCW 82.14.370;
(B) Having at least twenty thousand square feet dedicated to
housing working servers, where the server space has not previously been
dedicated to housing working servers; and
(C) For which the commencement of construction occurs:
(I) After March 31, 2010, and before July 1, 2011; or
(II) After March 31, 2012, and before July 1, 2015.
(ii) For purposes of this section, "commencement of construction"
means the date that a building permit is issued under the building code
adopted under RCW 19.27.031 for construction of the computer data
center. The construction of a computer data center includes the
expansion, renovation, or other improvements made to existing
facilities, including leased or rented space. "Commencement of
construction" does not include soil testing, site clearing and grading,
site preparation, or any other related activities that are initiated
before the issuance of a building permit for the construction of the
foundation of a computer data center.
(((ii))) (iii) With respect to facilities in existence on April 1,
2010, that are expanded, renovated, or otherwise improved after March
31, 2010, or facilities in existence on April 1, 2012, that are
expanded, renovated, or otherwise improved after March 31, 2012, an
eligible computer data center includes only the portion of the computer
data center meeting the requirements in (((c))) (d)(i)(B) of this
subsection (6).
(((d))) (e) "Eligible power infrastructure" means all fixtures and
equipment owned by a qualifying business or qualifying tenant and
necessary for the transformation, distribution, or management of
electricity that is required to operate eligible server equipment
within an eligible computer data center. The term includes
((electrical substations,)) generators((,)); wiring((, and));
cogeneration equipment; and associated fixtures and equipment, such as
electrical switches, batteries, and distribution, testing, and
monitoring equipment.
(((e))) (f) "Eligible server equipment" means:
(i) For a qualifying business whose computer data center qualifies
as an eligible computer data center under (d)(i)(C)(I) of this
subsection (6), the original server equipment installed in an eligible
computer data center on or after April 1, 2010, and replacement server
equipment. For purposes of this subsection (6)(((e))) (f)(i),
"replacement server equipment" means server equipment that:
(((i))) (A) Replaces existing server equipment, if the sale or use
of the server equipment to be replaced qualified for an exemption under
this section or RCW 82.12.986; and
(((ii))) (B) Is installed and put into regular use before April 1,
2018.
(ii) For a qualifying business whose computer data center qualifies
as an eligible computer data center under (d)(i)(C)(II) of this
subsection (6), "eligible server equipment" means the original server
equipment installed in an eligible computer data center on or after
April 1, 2012, and replacement server equipment. For purposes of this
subsection (6)(f)(ii), "replacement server equipment" means server
equipment that:
(A) Replaces existing server equipment, if the sale or use of the
server equipment to be replaced qualified for an exemption under this
section or RCW 82.12.986; and
(B) Is installed and put into regular use before April 1, 2020.
(iii) For a qualifying tenant who leases space within an eligible
computer data center, "eligible server equipment" means the original
server equipment installed within the space it leases from an eligible
computer data center on or after April 1, 2010, and replacement server
equipment. For purposes of this subsection (6)(f)(iii), "replacement
server equipment" means server equipment that:
(A) Replaces existing server equipment, if the sale or use of the
server equipment to be replaced qualified for an exemption under this
section or RCW 82.12.986; and
(B) Is installed and put into regular use before April 1, 2020.
(((f))) (g) "Qualifying business" means a business entity that
exists for the primary purpose of engaging in commercial activity for
profit and that is the owner of an eligible computer data center ((or
the lessee of at least twenty thousand square feet within an eligible
computer data center dedicated to housing working servers, where the
server space has not previously been dedicated to housing working
servers)). The term does not include the state or federal government
or any of their departments, agencies, and institutions; tribal
governments; political subdivisions of this state; or any municipal,
quasi-municipal, public, or other corporation created by the state or
federal government, tribal government, municipality, or political
subdivision of the state.
(((g) "Server" means blade or rack-mount server computers used in
a computer data center exclusively to provide electronic data storage
and data management services for internal use by the owner or lessee of
the computer data center, for clients of the owner or lessee of the
computer data center, or both. "Server" does not include personal
computers.))
(h) "Server equipment" means the server chassis and all computer
hardware contained within the server chassis. "Server equipment" also
includes computer software necessary to operate the server. "Server
equipment" does not include the racks upon which the server chassis is
installed, and computer peripherals such as keyboards, monitors,
printers, mice, and other devices that work outside of the computer.
(h) "Qualifying tenant" means a business entity that exists for the
primary purpose of engaging in commercial activity for profit and that
leases space from a qualifying business within an eligible computer
data center. The term does not include the state or federal government
or any of their departments, agencies, and institutions; tribal
governments; political subdivisions of this state; or any municipal,
quasi-municipal, public, or other corporation created by the state or
federal government, tribal government, municipality, or political
subdivision of the state. The term also does not include a lessee of
space in an eligible computer data center under (d)(i)(C)(I) of this
subsection (6), if the lessee and lessor are affiliated and:
(i) That space will be used by the lessee to house server equipment
that replaces server equipment previously installed and operated in
that eligible computer data center by the lessor or another person
affiliated with the lessee; or
(ii) Prior to the effective date of this section, the primary use
of the server equipment installed in that eligible computer data center
was to provide electronic data storage and data management services for
the business purposes of either the lessor, persons affiliated with the
lessor, or both.
(i) "Server equipment" means the computer hardware located in an
eligible computer data center and used exclusively to provide
electronic data storage and data management services for internal use
by the owner or lessee of the computer data center, for clients of the
owner or lessee of the computer data center, or both. "Server
equipment" also includes computer software necessary to operate the
computer hardware. "Server equipment" does not include personal
computers, the racks upon which the server equipment is installed, and
computer peripherals such as keyboards, monitors, printers, and mice.
(7) This section expires April 1, ((2018)) 2020.
Sec. 303 RCW 82.08.986 and 2010 1st sp.s. c 23 s 1601 are each
amended to read as follows:
(1) An exemption from the tax imposed by RCW 82.08.020 is provided
for sales to qualifying businesses and to qualifying tenants of
eligible server equipment to be installed, without intervening use, in
an eligible computer data center, and to charges made for labor and
services rendered in respect to installing eligible server equipment.
The exemption also applies to sales to qualifying businesses and to
qualifying tenants of eligible power infrastructure, including labor
and services rendered in respect to constructing, installing,
repairing, altering, or improving eligible power infrastructure.
(2)(a) In order to claim the exemption under this section, a
qualifying business or a qualifying tenant must submit an application
to the department for an exemption certificate. The application must
include the information necessary, as required by the department, to
determine that a business or tenant qualifies for the exemption under
this section. The department must issue exemption certificates to
qualifying businesses and qualifying tenants. The department may
assign a unique identification number to each exemption certificate
issued under this section.
(b) A qualifying business or a qualifying tenant claiming the
exemption under this section must present the seller with an exemption
certificate in a form and manner prescribed by the department. The
seller must retain a copy of the certificate for the seller's files.
(3)(a) Within six years of the date that the department issued an
exemption certificate under this section to a qualifying business or a
qualifying tenant with respect to an eligible computer data center, the
qualifying business or qualifying tenant must establish that net
employment at the eligible computer data center has increased by a
minimum of:
(i) Thirty-five family wage employment positions; or
(ii) Three family wage employment positions for each twenty
thousand square feet of space or less that is newly dedicated to
housing working servers at the eligible computer data center. For
qualifying ((businesses that lease space at an eligible computer data
center)) tenants, the number of family wage employment positions that
must be increased under this subsection (3)(a)(ii) is based only on the
space occupied by the ((lessee)) qualifying tenant in the eligible
computer data center.
(b) In calculating the net increase in family wage employment
positions:
(i) The owner of an eligible computer data center, in addition to
its own net increase in family wage employment positions, may include:
(A) The net increase in family wage employment positions employed
by qualifying ((businesses leasing space within the eligible computer
data center from the owner)) tenants; and
(B) The net increase in family wage employment positions described
in (c)(ii)(B) of this subsection (3).
(ii)(A) ((Lessees of the owner of an eligible computer data
center)) Qualifying tenants, in addition to their own net increase in
family wage employment positions, may include:
(I) A portion of the net increase in family wage employment
positions employed by the owner; and
(II) A portion of the net increase in family wage employment
positions described in (c)(ii)(B) of this subsection (3).
(B) The portion of the net increase in family wage employment
positions to be counted under this subsection (3)(b)(ii) by each
((lessee)) qualifying tenant must be in proportion to the amount of
space in the eligible computer data center occupied by the ((lessee))
qualifying tenant compared to the total amount of space in the eligible
computer data center occupied by all ((lessees that are qualifying
businesses)) qualifying tenants.
(c)(i) For purposes of this subsection, family wage employment
positions are new permanent employment positions requiring forty hours
of weekly work, or their equivalent, on a full-time basis at the
eligible computer data center and receiving a wage equivalent to or
greater than one hundred fifty percent of the per capita personal
income of the county in which the qualified project is located. An
employment position may not be counted as a family wage employment
position unless the employment position is entitled to health insurance
coverage provided by the employer of the employment position. For
purposes of this subsection (3)(c), "new permanent employment position"
means an employment position that did not exist or that had not
previously been filled as of the date that the department issued an
exemption certificate to the owner or ((lessee)) qualifying tenant of
an eligible computer data center, as the case may be.
(ii)(A) Family wage employment positions include positions filled
by employees of the owner of the eligible computer data center and by
employees of qualifying ((businesses leasing space from the owner of
the eligible computer data center)) tenants.
(B) Family wage employment positions also include individuals
performing work at an eligible computer data center as an independent
contractor hired by the owner of the eligible computer data center or
as an employee of an independent contractor hired by the owner of the
eligible computer data center, if the work is necessary for the
operation of the computer data center, such as security and building
maintenance, and provided that all of the requirements in (c)(i) of
this subsection (3) are met.
(d) All previously exempted sales and use taxes are immediately due
and payable for a qualifying business or qualifying tenant that does
not meet the requirements of this subsection.
(4) A qualifying business or a qualifying tenant claiming an
exemption under this section or RCW 82.12.986 must complete an annual
((report)) survey with the department as required under RCW
((82.32.534)) 82.32.585.
(5)(a) The exemption provided in this section does not apply to:
(i) Any person who has received the benefit of the deferral program
under chapter 82.60 RCW on: (A) The construction, renovation, or
expansion of a structure or structures used as a computer data center;
or (B) machinery or equipment used in a computer data center; and
(ii) Any person affiliated with a person within the scope of (a)(i)
of this subsection (5). ((For purposes of this subsection,
"affiliated" means that one person has a direct or indirect ownership
interest of at least twenty percent in another person.))
(b) If a person claims an exemption under this section and
subsequently receives the benefit of the deferral program under chapter
82.60 RCW on either the construction, renovation, or expansion of a
structure or structures used as a computer data center or machinery or
equipment used in a computer data center, the person must repay the
amount of taxes exempted under this section. Interest as provided in
chapter 82.32 RCW applies to amounts due under this section until paid
in full.
(6) For purposes of this section the following definitions apply
unless the context clearly requires otherwise:
(a) "Affiliated" means that one person has a direct or indirect
ownership interest of at least twenty percent in another person.
(b)(i) "Computer data center" means a facility comprised of one or
more buildings, which may be comprised of multiple businesses,
constructed or refurbished specifically, and used primarily, to house
working servers, where the facility has the following characteristics:
(A) Uninterruptible power supplies, generator backup power, or both;
(B) sophisticated fire suppression and prevention systems; and (C)
enhanced physical security, such as: Restricted access to the facility
to selected personnel; permanent security guards; video camera
surveillance; an electronic system requiring passcodes, keycards, or
biometric scans, such as hand scans and retinal or fingerprint
recognition; or similar security features.
(ii) For a computer data center comprised of multiple buildings,
each separate building constructed or refurbished specifically, and
used primarily, to house working servers is considered a computer data
center if it has all of the characteristics listed in (((a))) (b)(i)(A)
through (C) of this subsection (6).
(iii) A facility comprised of one building or more than one
building must have a combined square footage of at least one hundred
thousand square feet.
(((b))) (c) "Electronic data storage and data management services"
include, but are not limited to: Providing data storage and backup
services, providing computer processing power, hosting enterprise
software applications, and hosting web sites. The term also includes
providing services such as e-mail, web browsing and searching, media
applications, and other online services, regardless of whether a charge
is made for such services.
(((c))) (d)(i) "Eligible computer data center" means a computer
data center:
(A) Located in a rural county as defined in RCW 82.14.370;
(B) Having at least twenty thousand square feet dedicated to
housing working servers, where the server space has not previously been
dedicated to housing working servers; and
(C) For which the commencement of construction occurs:
(I) After March 31, 2010, and before July 1, 2011; or
(II) After March 31, 2012, and before July 1, 2015.
(ii) For purposes of this section, "commencement of construction"
means the date that a building permit is issued under the building code
adopted under RCW 19.27.031 for construction of the computer data
center. The construction of a computer data center includes the
expansion, renovation, or other improvements made to existing
facilities, including leased or rented space. "Commencement of
construction" does not include soil testing, site clearing and grading,
site preparation, or any other related activities that are initiated
before the issuance of a building permit for the construction of the
foundation of a computer data center.
(((ii))) (iii) With respect to facilities in existence on April 1,
2010, that are expanded, renovated, or otherwise improved after March
31, 2010, or facilities in existence on April 1, 2012, that are
expanded, renovated, or otherwise improved after March 31, 2012, an
eligible computer data center includes only the portion of the computer
data center meeting the requirements in (((c))) (d)(i)(B) of this
subsection (6).
(((d))) (e) "Eligible power infrastructure" means all fixtures and
equipment owned by a qualifying business, or qualifying tenant and
necessary for the transformation, distribution, or management of
electricity that is required to operate eligible server equipment
within an eligible computer data center. The term includes
((electrical substations,)) generators((,)); wiring((, and));
cogeneration equipment; and associated fixtures and equipment, such as
electrical switches, batteries, and distribution, testing, and
monitoring equipment.
(((e))) (f) "Eligible server equipment" means:
(i) For a qualifying business whose computer data center qualifies
as an eligible computer data center under (d)(i)(C)(I) of this
subsection (6), the original server equipment installed in an eligible
computer data center on or after April 1, 2010, and replacement server
equipment. For purposes of this subsection (6)(((e))) (f)(i),
"replacement server equipment" means server equipment that:
(((i))) (A) Replaces existing server equipment, if the sale or use
of the server equipment to be replaced qualified for an exemption under
this section or RCW 82.12.986; and
(((ii))) (B) Is installed and put into regular use before April 1,
2018.
(ii) For a qualifying business whose computer data center qualifies
as an eligible computer data center under (d)(i)(C)(II) of this
subsection (6), "eligible server equipment" means the original server
equipment installed in an eligible computer data center on or after
April 1, 2012, and replacement server equipment. For purposes of this
subsection (6)(f)(ii), "replacement server equipment" means server
equipment that:
(A) Replaces existing server equipment, if the sale or use of the
server equipment to be replaced qualified for an exemption under this
section or RCW 82.12.986; and
(B) Is installed and put into regular use before April 1, 2020.
(iii) For a qualifying tenant who leases space within an eligible
computer data center, "eligible server equipment" means the original
server equipment installed within the space it leases from an eligible
computer data center on or after April 1, 2010, and replacement server
equipment. For purposes of this subsection (6)(f)(iii), "replacement
server equipment" means server equipment that:
(A) Replaces existing server equipment, if the sale or use of the
server equipment to be replaced qualified for an exemption under this
section or RCW 82.12.986; and
(B) Is installed and put into regular use before April 1, 2020.
(((f))) (g) "Qualifying business" means a business entity that
exists for the primary purpose of engaging in commercial activity for
profit and that is the owner of an eligible computer data center ((or
the lessee of at least twenty thousand square feet within an eligible
computer data center dedicated to housing working servers, where the
server space has not previously been dedicated to housing working
servers)). The term does not include the state or federal government
or any of their departments, agencies, and institutions; tribal
governments; political subdivisions of this state; or any municipal,
quasi-municipal, public, or other corporation created by the state or
federal government, tribal government, municipality, or political
subdivision of the state.
(((g) "Server" means blade or rack-mount server computers used in
a computer data center exclusively to provide electronic data storage
and data management services for internal use by the owner or lessee of
the computer data center, for clients of the owner or lessee of the
computer data center, or both. "Server" does not include personal
computers.))
(h) "Server equipment" means the server chassis and all computer
hardware contained within the server chassis. "Server equipment" also
includes computer software necessary to operate the server. "Server
equipment" does not include the racks upon which the server chassis is
installed, and computer peripherals such as keyboards, monitors,
printers, mice, and other devices that work outside of the computer.
(h) "Qualifying tenant" means a business entity that exists for the
primary purpose of engaging in commercial activity for profit and that
leases space from a qualifying business within an eligible computer
data center. The term does not include the state or federal government
or any of their departments, agencies, and institutions; tribal
governments; political subdivisions of this state; or any municipal,
quasi-municipal, public, or other corporation created by the state or
federal government, tribal government, municipality, or political
subdivision of the state. The term also does not include a lessee of
space in an eligible computer data center under (d)(i)(C)(I) of this
subsection (6), if the lessee and lessor are affiliated and:
(i) That space will be used by the lessee to house server equipment
that replaces server equipment previously installed and operated in
that eligible computer data center by the lessor or another person
affiliated with the lessee; or
(ii) Prior to the effective date of this section, the primary use
of the server equipment installed in that eligible computer data center
was to provide electronic data storage and data management services for
the business purposes of either the lessor, persons affiliated with the
lessor, or both.
(i) "Server equipment" means the computer hardware located in an
eligible computer data center and used exclusively to provide
electronic data storage and data management services for internal use
by the owner or lessee of the computer data center, for clients of the
owner or lessee of the computer data center, or both. "Server
equipment" also includes computer software necessary to operate the
computer hardware. "Server equipment" does not include personal
computers, the racks upon which the server equipment is installed, and
computer peripherals such as keyboards, monitors, printers, and mice.
(7) This section expires April 1, ((2018)) 2020.
Sec. 304 RCW 82.12.986 and 2010 1st sp.s. c 23 s 1602 are each
amended to read as follows:
(1) An exemption from the tax imposed by RCW 82.12.020 is provided
for the use by qualifying businesses or qualifying tenants of eligible
server equipment to be installed, without intervening use, in an
eligible computer data center, and to the use of labor and services
rendered in respect to installing such server equipment. The exemption
also applies to the use ((of)) by a qualifying business or qualifying
tenant of eligible power infrastructure, including labor and services
rendered in respect to installing, repairing, altering, or improving
such infrastructure.
(2) A qualifying business or a qualifying tenant is not eligible
for the exemption under this section unless the department issued an
exemption certificate to the qualifying business or a qualifying tenant
for the exemption provided in RCW 82.08.986.
(3)(a) The exemption provided in this section does not apply to:
(i) Any person who has received the benefit of the deferral program
under chapter 82.60 RCW on: (A) The construction, renovation, or
expansion of a structure or structures used as a computer data center;
or (B) machinery or equipment used in a computer data center; and
(ii) Any person affiliated with a person within the scope of (a)(i)
of this subsection (3). ((For purposes of this subsection,
"affiliated" means that one person has a direct or indirect ownership
interest of at least twenty percent in another person.))
(b) If a person has received the benefit of the exemption under
this section and subsequently receives the benefit of the deferral
program under chapter 82.60 RCW on either the construction, renovation,
or expansion of a structure or structures used as a computer data
center or machinery or equipment used in a computer data center, the
person must repay the amount of taxes exempted under this section.
Interest as provided in chapter 82.32 RCW applies to amounts due under
this subsection (3)(b) until paid in full. A person is not required to
repay taxes under this subsection with respect to property and services
for which the person is required to repay taxes under RCW 82.08.986(5).
(4) The definitions and requirements in RCW 82.08.986 apply to this
section.
(5) This section expires April 1, ((2018)) 2020.
Sec. 401 RCW 66.24.630 and 2012 c 2 s 103 (Initiative Measure No.
1183) are each amended to read as follows:
(1) There is a spirits retail license to: Sell spirits in original
containers to consumers for consumption off the licensed premises and
to permit holders; sell spirits in original containers to retailers
licensed to sell spirits for consumption on the premises, for resale at
their licensed premises according to the terms of their licenses,
although no single sale may exceed twenty-four liters, unless the sale
is by a licensee that was a contract liquor store manager of a contract
liquor store at the location of its spirits retail licensed premises
from which it makes such sales; and export spirits.
(2) For the purposes of this title, a spirits retail license is a
retail license, and a sale by a spirits retailer is a retail sale only
if not for resale. Nothing in this title authorizes sales by on-sale
licensees to other retail licensees. The board must establish by rule
an obligation of on-sale spirits retailers to:
(a) Maintain a schedule by stock-keeping unit of all their
purchases of spirits from spirits retail licensees, indicating the
identity of the seller and the quantities purchased; and
(b) Provide, not more frequently than quarterly, a report for each
scheduled item containing the identity of the purchasing on-premise
licensee and the quantities of that scheduled item purchased since any
preceding report to:
(i) A distributor authorized by the distiller to distribute a
scheduled item in the on-sale licensee's geographic area; or
(ii) A distiller acting as distributor of the scheduled item in the
area.
(3)(a) Except as otherwise provided in (c) of this subsection (((c)
of this section)), the board may issue spirits retail licenses only for
premises comprising at least ten thousand square feet of fully enclosed
retail space within a single structure, including storerooms and other
interior auxiliary areas but excluding covered or fenced exterior
areas, whether or not attached to the structure, and only to applicants
that the board determines will maintain systems for inventory
management, employee training, employee supervision, and physical
security of the product substantially as effective as those of stores
currently operated by the board with respect to preventing sales to or
pilferage by underage or inebriated persons.
(b) License issuances and renewals are subject to RCW 66.24.010 and
the regulations promulgated thereunder, including without limitation
rights of cities, towns, county legislative authorities, the public,
churches, schools, and public institutions to object to or prevent
issuance of local liquor licenses. However, existing grocery premises
licensed to sell beer and/or wine are deemed to be premises "now
licensed" under RCW 66.24.010(9)(a) for the purpose of processing
applications for spirits retail licenses.
(c) The board may not deny a spirits retail license to an otherwise
qualified contract liquor store at its contract location or to the
holder of former state liquor store operating rights sold at auction
under RCW 66.24.620 on the grounds of location, nature, or size of the
premises to be licensed. The board ((shall)) may not deny a spirits
retail license to applicants that are not contract liquor stores or
operating rights holders on the grounds of the size of the premises to
be licensed, if such applicant is otherwise qualified and the board
determines that:
(i) There is no retail spirits license holder in the trade area
that the applicant proposes to serve;
(ii) The applicant meets, or upon licensure will meet, the
operational requirements established by the board by rule; and
(iii) The licensee has not committed more than one public safety
violation within the three years preceding application.
(d) A retailer authorized to sell spirits for consumption on or off
the licensed premises may accept delivery of spirits at its licensed
premises or at one or more warehouse facilities registered with the
board, which facilities may also warehouse and distribute nonliquor
items, and from which the retailer may deliver to its own licensed
premises and, pursuant to sales permitted under subsection (1) of this
section:
(i) To other retailer premises licensed to sell spirits for
consumption on the licensed premises;
(ii) To other registered facilities; or
(iii) To lawful purchasers outside the state. The facilities may
be registered and utilized by associations, cooperatives, or comparable
groups of retailers, including at least one retailer licensed to sell
spirits.
(4)(a) Except as otherwise provided in (b) of this subsection, each
spirits retail licensee must pay to the board, for deposit into the
liquor revolving fund, a license issuance fee equivalent to seventeen
percent of all spirits sales revenues under the license, exclusive of
taxes collected by the licensee and of sales of items on which a
license fee payable under this section has otherwise been incurred.
The board must establish rules setting forth the timing of such
payments and reporting of sales dollar volume by the licensee, with
payments required quarterly in arrears. The first payment is due
October 1, 2012.
(b) This subsection (4) does not apply to craft distilleries.
(5) In addition to the payment required under subsection (4) of
this section, each licensee must pay an annual license renewal fee of
one hundred sixty-six dollars. The board must periodically review and
adjust the renewal fee as may be required to maintain it as comparable
to annual license renewal fees for licenses to sell beer and wine not
for consumption on the licensed premises. If required by law at the
time, any increase of the annual renewal fee becomes effective only
upon ratification by the legislature.
(6) As a condition to receiving and renewing a retail spirits
license the licensee must provide training as prescribed by the board
by rule for individuals who sell spirits or who manage others who sell
spirits regarding compliance with laws and regulations regarding sale
of spirits, including without limitation the prohibitions against sale
of spirits to individuals who are underage or visibly intoxicated. The
training must be provided before the individual first engages in the
sale of spirits and must be renewed at least every five years. The
licensee must maintain records documenting the nature and frequency of
the training provided. An employee training program is presumptively
sufficient if it incorporates a "responsible vendor program"
promulgated by the board.
(7) The maximum penalties prescribed by the board in WAC 314-29-020
through 314-29-040 relating to fines and suspensions are doubled for
violations relating to the sale of spirits by retail spirits licensees.
(8)(a) The board must promulgate regulations concerning the
adoption and administration of a compliance training program for
spirits retail licensees, to be known as a "responsible vendor
program," to reduce underage drinking, encourage licensees to adopt
specific best practices to prevent sales to minors, and provide
licensees with an incentive to give their employees ongoing training in
responsible alcohol sales and service.
(b) Licensees who join the responsible vendor program under this
section and maintain all of the program's requirements are not subject
to the doubling of penalties provided in this section for a single
violation in any period of twelve calendar months.
(c) The responsible vendor program must be free, voluntary, and
self-monitoring.
(d) To participate in the responsible vendor program, licensees
must submit an application form to the board. If the application
establishes that the licensee meets the qualifications to join the
program, the board must send the licensee a membership certificate.
(e) A licensee participating in the responsible vendor program must
at a minimum:
(i) Provide ongoing training to employees;
(ii) Accept only certain forms of identification for alcohol sales;
(iii) Adopt policies on alcohol sales and checking identification;
(iv) Post specific signs in the business; and
(v) Keep records verifying compliance with the program's
requirements.
Sec. 501 RCW 82.29A.020 and 1999 c 220 s 2 are each amended to
read as follows:
((As used in this chapter the following terms shall be defined as
follows,)) The definitions in this section apply throughout this
chapter unless the context ((otherwise)) requires((:)) otherwise.
(1) "Leasehold interest" ((shall)) means an interest in publicly
owned real or personal property which exists by virtue of any lease,
permit, license, or any other agreement, written or verbal, between the
public owner of the property and a person who would not be exempt from
property taxes if that person owned the property in fee, granting
possession and use, to a degree less than fee simple ownership((:
PROVIDED, That)). However, no interest in personal property (excluding
land or buildings) which is owned by the United States, whether or not
as trustee, or by any foreign government ((shall)) may constitute a
leasehold interest hereunder when the right to use such property is
granted pursuant to a contract solely for the manufacture or production
of articles for sale to the United States or any foreign government.
The term "leasehold interest" ((shall)) includes the rights of use or
occupancy by others of property which is owned in fee or held in trust
by a public corporation, commission, or authority created under RCW
35.21.730 or 35.21.660 if the property is listed on or is within a
district listed on any federal or state register of historical sites.
The term "leasehold interest" ((shall)) does not include road or
utility easements, rights of access, occupancy, or use granted solely
for the purpose of removing materials or products purchased from a
public owner or the lessee of a public owner, or rights of access,
occupancy, or use granted solely for the purpose of natural energy
resource exploration. "Leasehold interest" does not include the
preferential use of publicly owned cargo cranes and docks and
associated areas used in the loading and discharging of cargo located
at a port district marine facility. "Preferential use" means that
publicly owned real or personal property is used by a private party
under a written agreement with the public owner, but the public owner
or any third party maintains a right to use the property when not being
used by the private party.
(2)(a) "Taxable rent" ((shall)) means contract rent as defined in
((subsection (a))) (c) of this subsection in all cases where the lease
or agreement has been established or renegotiated through competitive
bidding, or negotiated or renegotiated in accordance with statutory
requirements regarding the rent payable, or negotiated or renegotiated
under circumstances, established by public record, clearly showing that
the contract rent was the maximum attainable by the lessor((:
PROVIDED, That)). However, after January 1, 1986, with respect to any
lease which has been in effect for ten years or more without
renegotiation, taxable rent may be established by procedures set forth
in ((subsection (b))) (g) of this subsection. All other leasehold
interests ((shall be)) are subject to the determination of taxable rent
under the terms of ((subsection (b))) (g) of this subsection.
(b) For purposes of determining leasehold excise tax on any lands
on the Hanford reservation subleased to a private or public entity by
the department of ecology, taxable rent ((shall)) includes only the
annual cash rental payment made by such entity to the department of
ecology as specifically referred to as rent in the sublease agreement
between the parties and ((shall)) does not include any other fees,
assessments, or charges imposed on or collected by such entity
irrespective of whether the private or public entity pays or collects
such other fees, assessments, or charges as specified in the sublease
agreement.
(((a))) (c) "Contract rent" ((shall)) means the amount of
consideration due as payment for a leasehold interest, including: The
total of cash payments made to the lessor or to another party for the
benefit of the lessor according to the requirements of the lease or
agreement, including any rents paid by a sublessee; expenditures for
the protection of the lessor's interest when required by the terms of
the lease or agreement; and expenditures for improvements to the
property to the extent that such improvements become the property of
the lessor. Where the consideration conveyed for the leasehold
interest is made in combination with payment for concession or other
rights granted by the lessor, only that portion of such payment which
represents consideration for the leasehold interest ((shall be)) is
part of contract rent.
(d) "Contract rent" ((shall)) does not include: (i) Expenditures
made by the lessee, which under the terms of the lease or agreement,
are to be reimbursed by the lessor to the lessee or expenditures for
improvements and protection made pursuant to a lease or an agreement
which requires that the use of the improved property be open to the
general public and that no profit will inure to the lessee from the
lease; (ii) expenditures made by the lessee for the replacement or
repair of facilities due to fire or other casualty including payments
for insurance to provide reimbursement for losses or payments to a
public or private entity for protection of such property from damage or
loss or for alterations or additions made necessary by an action of
government taken after the date of the execution of the lease or
agreement; (iii) improvements added to publicly owned property by a
sublessee under an agreement executed prior to January 1, 1976, which
have been taxed as personal property of the sublessee prior to January
1, 1976, or improvements made by a sublessee of the same lessee under
a similar agreement executed prior to January 1, 1976, and such
improvements ((shall be)) are taxable to the sublessee as personal
property; (iv) improvements added to publicly owned property if such
improvements are being taxed as personal property to any person.
(e) Any prepaid contract rent ((shall be)) is considered to have
been paid in the year due and not in the year actually paid with
respect to prepayment for a period of more than one year. Expenditures
for improvements with a useful life of more than one year which are
included as part of contract rent ((shall)) must be treated as prepaid
contract rent and prorated over the useful life of the improvement or
the remaining term of the lease or agreement if the useful life is in
excess of the remaining term of the lease or agreement. Rent prepaid
prior to January 1, 1976, ((shall)) must be prorated from the date of
prepayment.
(f) With respect to a "product lease", the value ((shall be)) is
that value determined at the time of sale under terms of the lease.
(((b))) (g) If it ((shall be)) is determined by the department of
revenue, upon examination of a lessee's accounts or those of a lessor
of publicly owned property, that a lessee is occupying or using
publicly owned property in such a manner as to create a leasehold
interest and that such leasehold interest has not been established
through competitive bidding, or negotiated in accordance with statutory
requirements regarding the rent payable, or negotiated under
circumstances, established by public record, clearly showing that the
contract rent was the maximum attainable by the lessor, the department
may establish a taxable rent computation for use in determining the tax
payable under authority granted in this chapter based upon the
following criteria: (i) Consideration ((shall)) must be given to
rental being paid to other lessors by lessees of similar property for
similar purposes over similar periods of time; (ii) consideration
((shall)) must be given to what would be considered a fair rate of
return on the market value of the property leased less reasonable
deductions for any restrictions on use, special operating requirements
or provisions for concurrent use by the lessor, another person or the
general public.
(3) "Product lease" as used in this chapter ((shall)) means a lease
of property for use in the production of agricultural or marine
products to the extent that such lease provides for the contract rent
to be paid by the delivery of a stated percentage of the production of
such agricultural or marine products to the credit of the lessor or the
payment to the lessor of a stated percentage of the proceeds from the
sale of such products.
(4) "Renegotiated" means a change in the lease agreement which
changes the agreed time of possession, restrictions on use, the rate of
the cash rental or of any other consideration payable by the lessee to
or for the benefit of the lessor, other than any such change required
by the terms of the lease or agreement. In addition "renegotiated"
((shall)) means a continuation of possession by the lessee beyond the
date when, under the terms of the lease agreement, the lessee had the
right to vacate the premises without any further liability to the
lessor.
(5) "City" means any city or town.
(6) "Products" includes natural resource products such as cut or
picked evergreen foliage, Cascara bark, wild edible mushrooms, native
ornamental trees and shrubs, ore and minerals, natural gas, geothermal
water and steam, and forage removed through the grazing of livestock.
Sec. 601 RCW 82.04.214 and 2008 c 273 s 1 are each amended to
read as follows:
(1)(((a) Until June 30, 2011,)) "Newspaper" means:
(((i))) (a) A publication issued regularly at stated intervals at
least twice a month and printed on newsprint in tabloid or broadsheet
format folded loosely together without stapling, glue, or any other
binding of any kind, including any supplement of a printed newspaper;
and
(((ii))) (b) An electronic version of a printed newspaper that:
(((A))) (i) Shares content with the printed newspaper; and
(((B))) (ii) Is prominently identified by the same name as the
printed newspaper or otherwise conspicuously indicates that it is a
complement to the printed newspaper.
(((b))) (2) For purposes of this section, "supplement" means a
printed publication, including a magazine or advertising section, that
is:
(((i))) (a) Labeled and identified as part of the printed
newspaper; and
(((ii))) (b) Circulated or distributed:
(((A))) (i) As an insert or attachment to the printed newspaper; or
(((B))) (ii) Separate and apart from the printed newspaper so long
as the distribution is within the general circulation area of the
newspaper.
(((2) Beginning July 1, 2011, "newspaper" means a publication
issued regularly at stated intervals at least twice a month and printed
on newsprint in tabloid or broadsheet format folded loosely together
without stapling, glue, or any other binding of any kind, including any
supplement of a printed newspaper as defined in subsection (1)(b) of
this section.))
Sec. 602 RCW 82.04.260 and 2011 c 2 s 203 (Initiative Measure No.
1107) are each 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 by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
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 is 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 by-products 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 is 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 is 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 is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of 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 is 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 is 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 is 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 is 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 is 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 is
equal to the gross proceeds derived from such activities multiplied by
the rate of 0.275 percent. Persons subject to taxation under this
subsection are 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 is 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 must 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 or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
is 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 is 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.
(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 is, in the case of manufacturers, 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, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through 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 is, in the case of
manufacturers, 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 reporting under the tax rate provided in this subsection (11)
must file a complete annual report with the department under RCW
82.32.534.
(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 is, in the case of extractors, equal to the value of products,
including by-products, extracted, or in the case of extractors for
hire, 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 is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, 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 is 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 is 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.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection (12)
must file a complete annual survey with the department under RCW
82.32.585.
(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
is equal to the gross income derived from such activities multiplied by
the rate of 0.484 percent.
(14)(a) Upon every person engaging within this state in the
business of printing a newspaper, publishing a newspaper, or both, the
amount of tax on such business is equal to the gross income of the
business multiplied by the rate of ((0.2904)) 0.365 percent through
June 30, 2013, and beginning July 1, 2013, multiplied by the rate of
0.35 percent.
(b) A person reporting under the tax rate provided in this
subsection (14) must file a complete annual report with the department
under RCW 82.32.534.
NEW SECTION. Sec. 701 This act does not affect any existing
right acquired or liability or obligation incurred under the sections
amended or repealed or under any rule or order adopted under those
sections, nor does it affect any proceeding instituted under those
sections.
NEW SECTION. Sec. 702 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.
NEW SECTION. Sec. 703 (1) Parts I, II, and V through VII of this
act are necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its existing
public institutions, and take effect July 1, 2012.
(2) Section 302 of this act does not take effect if the contingency
in subsection (3) of this section occurs.
(3) Section 303 of this act takes effect if Substitute House Bill
No. 2530 or any other legislation repealing RCW 82.32.534 is enacted
during the 2012 1st special session and signed into law.
(4) Parts III and IV of this act are necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and take effect
immediately.
NEW SECTION. Sec. 704 Part VI of this act expires July 1, 2015.