ESB 5843 -
By Committee on Finance
ADOPTED AND ENGROSSED 4/26/13
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 A new section is added to chapter 82.32 RCW
to read as follows:
(1) Except as otherwise provided in this section, every new tax
preference expires on the first day of the calendar year that is
subsequent to the calendar year that is ten years from the effective
date of the bill. With respect to any property tax exemption, the
exemption does not apply to taxes levied for collection beginning in
the calendar year that is subsequent to the calendar year that is ten
years from the effective date of the bill.
(2) Subsection (1) of this section does not apply if legislation
creating a new tax preference includes an expiration date for the new
tax preference.
(3) Subsection (1) of this section does not apply to any existing
tax preference that is amended to clarify an ambiguity or correct a
technical inconsistency.
(4) For the purposes of this section, the following definitions
apply:
(a) "New tax preference" means a tax preference that initially took
effect after August 1, 2013, or a tax preference in effect as of August
1, 2013, that is expanded or extended after August 1, 2013.
(b) "Tax preference" has the same meaning as in RCW 43.136.021 with
respect to any state tax under this title and Title 84 RCW.
NEW SECTION. Sec. 2 A new section is added to chapter 82.32 RCW
to read as follows:
(1) As provided in this section, every bill enacting a new tax
preference must include a tax preference performance statement.
(2) A tax preference performance statement must state the
legislative purpose for the new tax preference. The tax preference
performance statement must indicate one or more of the following
general categories, by reference to the applicable category specified
in this subsection, as the legislative purpose of the new tax
preference:
(a) Tax preferences intended to induce certain designated behavior
by taxpayers;
(b) Tax preferences intended to improve industry competitiveness;
(c) Tax preferences intended to create or retain jobs;
(d) Tax preferences intended to reduce structural inefficiencies in
the tax structure;
(e) Tax preferences intended to provide tax relief for certain
businesses or individuals; or
(f) Tax preferences intended to achieve a general purpose not
identified in (a) through (e) of this subsection.
(3) In addition to identifying the general legislative purpose of
the tax preference under subsection (2) of this section, the tax
preference performance statement must provide additional detailed
information regarding the legislative purpose of the new tax
preference.
(4) A new tax preference performance statement must specify clear,
relevant, and ascertainable metrics and data requirements that allow
the joint legislative audit and review committee to measure the
effectiveness of the new tax preference in achieving the purpose
designated under subsection (2) of this section.
(5) If the tax preference performance statement for a new tax
preference indicates a legislative purpose described in subsection
(2)(b) or (c) of this section, any taxpayer claiming the new tax
preference must file an annual survey in accordance with RCW 82.32.585.
(6) Taxpayers claiming a new tax preference impacting any tax under
this title must report the amount of the tax preference claimed by the
taxpayer to the department as part of the taxpayer's regular tax
reporting responsibilities under this chapter. For new tax preferences
allowing certain types of gross income of the business to be excluded
from business and occupation taxation, the tax return must explicitly
report the amount of the exclusion, regardless of whether it is
structured as an exemption or deduction. For a new sales and use tax
exemption, the total taxable sales subject to the exemption claimed by
the taxpayer must be reported on an addendum to the taxpayer's tax
return.
(7) The amount claimed by a taxpayer for any new tax preference is
subject to public disclosure and is not considered confidential tax
information under RCW 82.32.330. The department may waive the public
disclosure requirement under this subsection for good cause. Good
cause may be demonstrated by a reasonable showing of economic harm to
a taxpayer if the information specified under this subsection is
disclosed. Taxpayers may request the department to treat the amount of
the tax preference claimed by a taxpayer during a calendar year as
confidential under RCW 82.32.330 if the amount for the calendar year is
less than ten thousand dollars.
(8) If a new tax preference does not include the information
required under subsections (2) through (4) of this section, the joint
legislative audit and review committee is not required to perform a tax
preference review under chapter 43.136 RCW, and it is legislatively
presumed that it is the intent of the legislature to allow the new tax
preference to expire upon its scheduled expiration date.
NEW SECTION. Sec. 3 A new section is added to chapter 43.136 RCW
to read as follows:
By January 1, 2015, and in compliance with RCW 43.01.036, the joint
legislative audit and review committee must provide a report to the
appropriate fiscal committees of the legislature that makes
recommendations on the appropriate data and metrics that should be
included in a tax preference performance statement to evaluate a new
tax preference. The committee must consult with the department of
revenue and legislative fiscal staff in the preparation of the report.
The committee's recommendation must identify the appropriate data and
metrics for each of the general categories provided in section 2(2) of
this act.
NEW SECTION. Sec. 4 A new section is added to chapter 82.04 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 5 A new section is added to chapter 82.08 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 6 A new section is added to chapter 82.12 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 7 A new section is added to chapter 82.14B RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 8 A new section is added to chapter 82.16 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 9 A new section is added to chapter 82.18 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 10 A new section is added to chapter 82.19 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 11 A new section is added to chapter 82.21 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 12 A new section is added to chapter 82.23A
RCW to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 13 A new section is added to chapter 82.23B
RCW to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 14 A new section is added to chapter 82.24 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 15 A new section is added to chapter 82.26 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 16 A new section is added to chapter 82.27 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 17 A new section is added to chapter 82.29A
RCW to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 18 A new section is added to chapter 82.36 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 19 A new section is added to chapter 82.38 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 20 A new section is added to chapter 82.42 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 21 A new section is added to chapter 82.45 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 22 A new section is added to chapter 82.48 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 23 A new section is added to chapter 82.49 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter.
NEW SECTION. Sec. 24 A new section is added to chapter 82.64 RCW
to read as follows:
See section 1 of this act for the expiration date of new tax
preferences for the tax imposed under this chapter."
Correct the title.