Z-411                 _______________________________________________

                                                   HOUSE BILL NO. 1024

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Silver, G. Nelson, Hastings, Thomas, Brough, J. Williams, Sanders, Long, Isaacson, May and L. Smith; by Small Business Improvement Council request

Read first time 2/8/85 and referred to Committee on Trade & Economic Development.

AN ACT Relating to deferral of sales and use taxes; and adding a new chapter to Title 82 RCW.

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

NEW SECTION. Sec. 1.     (1) The department shall grant a deferral of taxes payable under chapters 82.08, 82.12, and 82.14 RCW on labor and materials used to construct nonresidential commercial buildings or to make tenant improvements to nonresidential commercial buildings as provided in this chapter.

          (2) Application for deferral shall be made to the department before the taxable retail sale or use occurs in the form and manner prescribed by the department.  No tax may be deferred under this chapter until the department has issued an approval of the deferral.

NEW SECTION. Sec. 2.     (1) Persons granted a tax deferral under this chapter shall begin paying the deferred taxes three years after the date determined by the department as the date construction was completed on the building or improvement for which the deferral was granted.  The deferred taxes shall be in addition to the taxes otherwise imposed under this title during the deferral payment period.  Payment of the taxes deferred shall be made within five years according to the following schedule:

!tp1,2,2 !tj1!tcPERCENTAGE OF DEFERRED

!tlPAYMEN!ttT YEAR!tlTAX!tt DUE

!tl1!tl10%

!tl2!tl15%

!tl3!tl20%

!tl4!tl25%

!tl5!tl30%

          The department may approve an accelerated payment schedule upon request of the person who received the deferral.

          (2) For the purposes of this section, "year" means twelve calendar months.

NEW SECTION. Sec. 3.     The meaning ascribed to words and phrases in chapters 82.04, 82.08, and 82.12 RCW, insofar as applicable, shall have full force and effect with respect to this chapter.

NEW SECTION. Sec. 4.     The department shall adopt rules to implement this chapter including rules on the procedure to be followed and information required to be submitted to qualify for a deferral under this chapter.

NEW SECTION. Sec. 5.     Chapter 82.32 RCW applies to the administration of this chapter.

NEW SECTION. Sec. 6.     Sections 1 through 5 of this act shall constitute a new chapter in Title 82 RCW.