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SUBSTITUTE
HOUSE BILL 3015
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Passed
Legislature - 1998 Regular Session
State of Washington 55th
Legislature 1998 Regular Session
By
Read first time 02/09/98. Referred
to Committee on .
Providing
tax exemptions for the state route number 16 corridor.
AN
ACT Relating to tax exemptions for the state route number 16 corridor; amending
RCW 84.36.010; adding a new section to chapter 35.21 RCW; adding a new section
to chapter 82.04 RCW; adding a new section to chapter 47.46 RCW; adding a new
section to chapter 82.16 RCW; adding a new section to chapter 82.29A RCW;
adding a new section to chapter 82.45 RCW; and creating new sections.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds and declares that the people of the state may not enjoy the
full benefits of public-private initiative for state route number 16 corridor
improvements due to the many taxes that may apply to this project. Generally
these taxes would not apply if the state built these projects through
traditional financing and construction methods. These tax exemptions will
reduce the cost of the project, allow lower tolls, and reduce the time for
which tolls are charged.
NEW
SECTION. Sec. 2. A new
section is added to chapter 35.21 RCW to read as follows:
A
city or town may not impose a tax on amounts received from operating state
route number 16 corridor transportation systems and facilities constructed and
operated under chapter 47.46 RCW.
NEW
SECTION. Sec. 3. A
new section is added to chapter 82.04 RCW to read as follows:
This
chapter does not apply to amounts received from operating state route number 16
corridor transportation systems and facilities constructed and operated under
chapter 47.46 RCW.
NEW
SECTION. Sec. 4. 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 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, 82.12, and
82.14 RCW on the project. The use of the certificate shall be governed by
rules established by the department of revenue.
(3)
A private entity granted a 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. 5. A
new section is added to chapter 82.16 RCW to read as follows:
The
provisions of this chapter do not apply to amounts received from operating
state route number 16 corridor transportation systems and facilities
constructed and operated under chapter 47.46 RCW.
NEW
SECTION. Sec. 6. A
new section is added to chapter 82.29A RCW to read as follows:
All
leasehold interests in the state route number 16 corridor transportation
systems and facilities constructed and operated under chapter 47.46 RCW are
exempt from tax under this chapter.
NEW
SECTION. Sec. 7. A
new section is added to chapter 82.45 RCW to read as follows:
Sales
of the state route number 16 corridor transportation systems and facilities
constructed under chapter 47.46 RCW are exempt from tax under this chapter.
Sec.
8. RCW
84.36.010 and 1990 c 47 s 2 are each amended to read as follows:
All
property belonging exclusively to the United States, the state, any county or
municipal corporation, all state route number 16 corridor transportation
systems and facilities constructed under chapter 47.46 RCW, and all
property under a financing contract pursuant to chapter 39.94 RCW or recorded
agreement granting immediate possession and use to said public bodies or under
an order of immediate possession and use pursuant to RCW 8.04.090, shall be
exempt from taxation. All property belonging exclusively to a foreign national
government shall be exempt from taxation if such property is used exclusively
as an office or residence for a consul or other official representative of such
foreign national government, and if the consul or other official representative
is a citizen of such foreign nation.
NEW SECTION. Sec. 9.
Section 8 of this act is effective for taxes levied for collection in 1999 and
thereafter.
