S-1996               _______________________________________________

                                                   SENATE BILL NO. 6011

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Cantu, Bailey and Craswell

Read first time 2/22/89 and referred to Committee on  Ways & Means.

AN ACT Relating to the application of the sales and use tax on school district capital projects; adding a new section to chapter 28A.58 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1.     It is the intent of the legislature to exempt all school district capital expenditures from the application of the sales and use tax.  It is furthermore the intent of the legislature that the savings realized by this exemption be utilized solely to purchase new instructional equipment and related supplies necessary to adequately equip those same facilities constructed, renovated, rehabilitated, or improved by expenditures from each district's capital projects fund.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales of tangible personal property or services purchased by expenditures from the capital projects fund as authorized by RCW 28A.58.441.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.12 RCW to read as follows:

          The provisions of this chapter shall not apply with respect to the use of articles of tangible personal property or services purchased by expenditures from the capital projects fund as authorized by RCW 28A.58.441.

NEW SECTION. Sec. 4.  A new section is added to chapter 28A.58 RCW to read as follows:

          (1) School districts shall use the savings realized by the exemptions under sections 2 and 3 of this act solely to purchase new instructional equipment and related supplies necessary to adequately equip those same facilities constructed, renovated, rehabilitated, or improved by expenditures from each district's capital projects fund.

          (2) School districts shall report to the superintendent of public instruction within two months following the close of each fiscal year on the amount of savings realized by the exemptions authorized in sections 2 and 3 of this act.  District reports shall also indicate the types, amounts, and cost of new instructional equipment and related supplies purchased during the previous fiscal year from such savings to equip the specific facilities constructed, renovated, or improved by expenditures from the district's capital projects fund for the same period.

          (3) For the purposes of this section, "instructional equipment" means minor capital equipment whose primary use is providing for academic instruction and vocational training in the common schools.

NEW SECTION. Sec. 5.     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. 6.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1989.