(1) Except as provided in subsection (2) of this section, the expiration of RCW
82.12.02567 and
82.12.962 do not require the payment of, or authorize the department to assess, use tax imposed by or under the authority of RCW
82.12.020,
81.104.170, and chapter
82.14 RCW, on the use of machinery and equipment, and labor and services rendered in respect to installing such machinery and equipment, if such use qualified for the exemption under RCW
82.12.02567 or
82.12.962 immediately preceding the expiration date of the applicable exemption under RCW
82.12.02567 or
82.12.962.
(2) Subsection (1) of this section does not prohibit the department from assessing, subject to the limitations period in RCW
82.32.050, state and local use taxes on the use of machinery and equipment, and labor and services rendered in respect to installing such machinery and equipment, if, before the expiration of the applicable exemption provided in RCW
82.12.02567 or
82.12.962, the machinery and equipment was put to a use that is outside of the scope of the applicable exemption in RCW
82.12.02567 or
82.12.962.