6050 S AMS FRAS WILS 005

6050‑S AMS FRAS WILS 005

SSB 6050 - S AMD ‑ 575

BySenators Fraser, Loveland, Spanel, Rasmussen and Goings

NOT ADOPTED 1/28/98

On page 1, after line 4, strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds and declares that state tax exemptions and deferrals on state route number 16 corridor improvements, constructed under the public-private initiatives in transportation program, would decrease both the initial cost of the project and the operating costs of the facility once it is in operation. A state sales and use tax deferral and leasehold tax exemptions would lower initial toll levels charged to users of the facility, reduce the need for toll increases, and reduce the length of time tolls are imposed. Lower toll rates increase the likelihood of favorable voter response to the advisory vote required under chapter 47.46 RCW on the state route number 16 corridor improvements project.

NEW SECTION. Sec. 2. A new section is added to chapter 47.46 RCW to read as follows:

(1) A private entity that is party to an agreement under this chapter may apply for deferral of state taxes on the site preparation for, the construction of, the acquisition of any related machinery and equipment which will become a part of, and the rental of equipment for use in the state route number 16 corridor improvements project under this chapter. Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application shall contain information regarding estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.

(2) The department of revenue shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08 and 82.12 RCW on the project. The project is subject to local tax under chapter 82.14 RCW. The use of the certificate shall be governed by rules established by the department of revenue.

(3) A private entity granted a state tax deferral under this section shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the project is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.

(4) The department of revenue may authorize an accelerated repayment schedule upon request of a private entity granted a deferral under this section.

(5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the private entity.

(6) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW applies to the administration of this section.

NEW SECTION. Sec. 3. A new section is added to chapter 82.29A RCW to read as follows:

All leasehold interests in the state route number 16 corridor improvements project constructed and operated under chapter 47.46 RCW are exempt from state tax under RCW 82.29A.030."

SSB 6050 - S AMD - 575

By Senators Fraser, Loveland, Spanel, Rasmussen and Goings

NOT ADOPTED 1/28/98

On page 1, on line 2 of the title, after "47.46 RCW;" strike the remainder of the title and insert "adding a new section to chapter 47.46 RCW; adding a new section to chapter 82.29A RCW; and creating a new section."