BILL REQ. #:  S-3415.1 

Read first time 01/13/14.   Referred to Committee on Ways & Means.

     AN ACT Relating to a sales and use tax exemption provided to the state, public school districts, and public charter schools on school construction when the funds used were obtained from indebtedness; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) This section is the tax preference performance statement for the tax preference contained in sections 2 and 3 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
     (2) The legislature categorizes this tax preference as intended to extend the purchasing power of funds for school construction, maintenance, and improvements when such funds are acquired through indebtedness.
     (3) The legislature's specific public policy goal is to reduce the cost of school projects when such projects are funded through debt.
     (4) The office of the superintendent of public instruction must provide the data necessary to perform a review to the joint legislative audit and review committee during the year in which the review will be conducted.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to purchases, or portions of purchases, for construction, maintenance, or improvement of facilities owned by public school districts or public charter schools, when the purchase is made with moneys acquired by the state public school district, or public charter school from indebtedness.
     (2) As used in this section, "portions or purchases" are those portions of a purchase that were made from indebtedness when the total purchase was made from multiple fund sources.
     (3) As used in this section, "indebtedness" means all debt incurred by the state, public school district, or public charter school for a term greater than one year and does not include debt to other governments or governmental funds.
     (4) The exemption under this section is available only when the buyer provides 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.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of any items used for the construction, maintenance, or improvement of a facility owned by a public school district or public charter school when the items were purchased with moneys acquired by the state, public school district, or public charter school from indebtedness.
     (2) When the item used was acquired by purchase through multiple funds sources, only the amount that was purchased by moneys acquired from indebtedness qualify for the exemption under this section.
     (3) For the purposes of this section, the definitions and requirements in section 1 of this act apply.

NEW SECTION.  Sec. 4   This act takes effect July 1, 2014.