AN
ACT Relating to technical corrections for tax provisions; amending RCW
82.01.070, 82.01.080, 82.32.080, 82.32.180, 82.60.040, 84.36.470, 84.36.800,
84.36.805, and 84.36.810; decodifying RCW 82.04.435; repealing RCW 82.04.444
and 82.04.445; and providing an expiration date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.01.070 and 1982 c 128 s 1 are each amended to read as follows:
The
director shall have charge and general supervision of the department of
revenue. ((He)) The director shall appoint an assistant director
for administration, hereinafter in chapter 26, Laws of 1967 ex. sess. referred
to as the assistant director, and subject to the provisions of chapter 41.06
RCW may appoint and employ such clerical, technical and other personnel as may
be necessary to carry out the powers and duties of the department. The
director may also enter into personal service contracts with out-of-state
individuals or business entities for the performance of auditing services
outside the state of Washington when normal efforts to recruit classified
employees are unsuccessful. The director may agree to pay to the department's
employees or contractors who reside out of state such amounts in addition to
their ordinary rate of compensation as are necessary to defray the extra costs
of facilities, living, and other costs reasonably related to the out-of-state
services, subject to legislative appropriation for those purposes. The special
allowances shall be in such amounts or at such rates as are approved by the
office of financial management. This section does not apply to audit functions
performed in states contiguous to the state of Washington.
Sec.
2. RCW
82.01.080 and 1967 ex.s. c 26 s 5 are each amended to read as follows:
The
director may delegate any power or duty vested in or transferred to ((him))
the director by law, or executive order, to the assistant director or to
any of the director's subordinates; but the director shall be responsible for
the official acts of the officers and employees of the department.
Sec.
3. RCW
82.32.080 and 1990 c 69 s 2 are each amended to read as follows:
Payment
of the tax may be made by uncertified check under such regulations as the
department shall prescribe, but, if a check so received is not paid by the bank
on which it is drawn, the taxpayer, by whom such check is tendered, shall
remain liable for payment of the tax and for all legal penalties, the same as
if such check had not been tendered.
Payment
of the tax ((is to)) shall be made by electronic funds transfer,
as defined in RCW 82.32.085, if the amount of the tax due in a calendar
year is ((two hundred forty)) one million eight hundred thousand
dollars or more((, provided that until January 1, 1992, electronic funds
transfer shall be required only if the tax due is one million eight hundred
thousand dollars or more. After January 1, 1992,)). The department
may by rule provide for tax thresholds between two hundred forty thousand
dollars and one million eight hundred thousand dollars for mandatory use of
electronic funds transfer. All taxes administered by this chapter are subject
to this requirement except the taxes authorized by chapters 82.14A, 82.14B,
82.24, 82.27, 82.29A, and 84.33 RCW. It is the intent of this section to
require electronic funds transfer for those taxes reported on the department's
combined excise tax return or any successor return.
A
return or remittance which is transmitted to the department by United States
mail shall be deemed filed or received on the date shown by the post office
cancellation mark stamped upon the envelope containing it, except as otherwise
provided in this chapter.
The
department, for good cause shown, may extend the time for making and filing any
return, and may grant such reasonable additional time within which to make and
file returns as it may deem proper, but any permanent extension granting the
taxpayer a reporting date without penalty more than ten days beyond the due
date, and any extension in excess of thirty days shall be conditional on
deposit with the department of an amount to be determined by the department
which shall be approximately equal to the estimated tax liability for the
reporting period or periods for which the extension is granted. In the case of
a permanent extension or a temporary extension of more than thirty days the
deposit shall be deposited within the state treasury with other tax funds and a
credit recorded to the taxpayer's account which may be applied to taxpayer's
liability upon cancellation of the permanent extension or upon reporting of the
tax liability where an extension of more than thirty days has been granted.
The
department shall review the requirement for deposit at least annually and may
require a change in the amount of the deposit required when it believes that
such amount does not approximate the tax liability for the reporting period or
periods for which the extension is granted.
The
department shall keep full and accurate records of all funds received and
disbursed by it. Subject to the provisions of RCW 82.32.105 and 82.32.350, the
department shall apply the payment of the taxpayer first against penalties and
interest, and then upon the tax, without regard to any direction of the
taxpayer.
The
department may refuse to accept any return which is not accompanied by a
remittance of the tax shown to be due thereon. When such return is not
accepted, the taxpayer shall be deemed to have failed or refused to file a
return and shall be subject to the procedures provided in RCW 82.32.100 and to
the penalties provided in RCW 82.32.090. The above authority to refuse to
accept a return shall not apply when a return is timely filed and a timely
payment has been made by electronic funds transfer.
Sec.
4. RCW
82.32.180 and 1992 c 206 s 4 are each amended to read as follows:
Any
person, except one who has failed to keep and preserve books, records, and
invoices as required in this chapter and chapter 82.24 RCW, having paid any tax
as required and feeling aggrieved by the amount of the tax may appeal to the
superior court of Thurston county, within the time limitation for a refund
provided in chapter 82.32 RCW or, if an application for refund has been made to
the department within that time limitation, then within thirty days after
rejection of the application, whichever time limitation is later. In the
appeal the taxpayer shall set forth the amount of the tax imposed upon the
taxpayer which the taxpayer concedes to be the correct tax and the reason why
the tax should be reduced or abated. The appeal shall be perfected by serving
a copy of the notice of appeal upon the department within the time herein
specified and by filing the original thereof with proof of service with the
clerk of the superior court of Thurston county.
The
trial in the superior court on appeal shall be de novo and without the
necessity of any pleadings other than the notice of appeal. At trial, the
burden shall rest upon the taxpayer to prove that the tax as paid by the
taxpayer is incorrect, either in whole or in part, and to establish the correct
amount of the tax. In such proceeding the taxpayer shall be deemed the
plaintiff, and the state, the defendant; and both parties shall be entitled to
subpoena the attendance of witnesses as in other civil actions and to produce
evidence that is competent, relevant, and material to determine the correct
amount of the tax that should be paid by the taxpayer. Either party may seek
appellate review in the same manner as other civil actions are appealed to the
appellate courts.
It
shall not be necessary for the taxpayer to protest against the payment of any
tax or to make any demand to have the same refunded or to petition the director
for a hearing in order to appeal to the superior court, but no court action or
proceeding of any kind shall be maintained by the taxpayer to recover any tax
paid, or any part thereof, except as herein provided.
The
provisions of this section shall not apply to any tax payment which has been
the subject of an appeal to the board of tax appeals with respect to which
appeal a formal hearing has been elected.
Sec.
5. RCW
82.60.040 and 1995 1st sp.s. c 3 s 6 are each amended to read as follows:
(1)
The department 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
each eligible investment project that:
(a)
Is located in an eligible area as defined in RCW 82.60.020(3)(a), (b), (((d),
or)) (c), (e), or (f);
(b)
Is located in an eligible area as defined in RCW 82.60.020(3)(((f)))(g)
if seventy-five percent of the new qualified employment positions are to be
filled by residents of a contiguous county that is an eligible area as defined
in RCW 82.60.020(3)(a) or (((e))) (f); or
(c)
Is located in an eligible area as defined in RCW 82.60.020(3)(((c)))(d)
if seventy-five percent of the new qualified employment positions are to be
filled by residents of a designated community empowerment zone approved under
RCW 43.63A.700 located within the county in which the eligible investment
project is located.
(2)
The department shall keep a running total of all deferrals granted under this
chapter during each fiscal biennium.
Sec.
6. RCW
84.36.470 and 1989 c 378 s 12 are each amended to read as follows:
The
following property shall be exempt from taxation: Any agricultural ((or
horticultural produce or crop, including any animal, bird, or insect, or the
milk, eggs, wool, fur, meat, honey, or other substance obtained therefrom))
product as defined in RCW 82.04.213 and grown or produced for sale by
any person upon ((his)) the person's own lands or upon lands in
which ((he)) the person has a present right of possession ((who
is exempted from payment of business and occupation tax pursuant to RCW
82.04.330)). Taxpayers shall not be required to report, or assessors to
list, the inventories covered by this exemption.
((Nothing
in this section shall be construed to remove or otherwise affect any exemption
from assessment granted by RCW 84.44.060.))
Sec.
7. RCW
84.36.800 and 1994 c 124 s 18 are each amended to read as follows:
As
used in RCW 84.36.020, 84.36.030, ((84.36.550,)) 84.36.037, 84.36.040,
84.36.041, 84.36.050, 84.36.060, 84.36.550, and 84.36.800 through
84.36.865:
(1)
"Church purposes" means the use of real and personal property owned
by a nonprofit religious organization for religious worship or related
administrative, educational, eleemosynary, and social activities. This
definition is to be broadly construed;
(2)
"Convent" means a house or set of buildings occupied by a community
of clergy or nuns devoted to religious life under a superior;
(3)
"Hospital" means any portion of a hospital building, or other
buildings in connection therewith, used as a residence for persons engaged or
employed in the operation of a hospital, or operated as a portion of the
hospital unit;
(4)
"Nonprofit" means an organization, association or corporation no part
of the income of which is paid directly or indirectly to its members,
stockholders, officers, directors or trustees except in the form of services
rendered by the organization, association, or corporation in accordance with
its purposes and bylaws and the salary or compensation paid to officers of such
organization, association or corporation is for actual services rendered and
compares to the salary or compensation of like positions within the public
services of the state;
(5)
"Parsonage" means a residence occupied by a member of the clergy who
has been designated for a particular congregation and who holds regular
services therefor.
Sec.
8. RCW
84.36.805 and 1995 2nd sp.s. c 9 s 2 are each amended to read as follows:
In
order to be exempt pursuant to RCW 84.36.030, ((84.36.550,)) 84.36.035,
84.36.037, 84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050,
84.36.060, 84.36.350, ((and)) 84.36.480, and 84.36.550, the
nonprofit organizations, associations or corporations shall satisfy the
following conditions:
(1)
The property is used exclusively for the actual operation of the activity for
which exemption is granted, unless otherwise provided, and does not exceed an
amount reasonably necessary for that purpose, except:
(a)
The loan or rental of the property does not subject the property to tax if:
(i)
The rents and donations received for the use of the portion of the property are
reasonable and do not exceed the maintenance and operation expenses
attributable to the portion of the property loaned or rented; and
(ii)
Except for the exemptions under RCW 84.36.030(4) and 84.36.037, the property
would be exempt from tax if owned by the organization to which it is loaned or
rented;
(b)
The use of the property for fund-raising activities does not subject the
property to tax if the fund-raising activities are consistent with the purposes
for which the exemption is granted;
(2)
The property is irrevocably dedicated to the purpose for which exemption has
been granted, and on the liquidation, dissolution, or abandonment by said
organization, association, or corporation, said property will not inure
directly or indirectly to the benefit of any shareholder or individual, except
a nonprofit organization, association, or corporation which too would be
entitled to property tax exemption: PROVIDED, That the property need not be
irrevocably dedicated if it is leased or rented to those qualified for
exemption pursuant to RCW 84.36.035, 84.36.040, 84.36.041, or 84.36.043 or
those qualified for exemption as an association engaged in the production or
performance of musical, dance, artistic, dramatic, or literary works pursuant
to RCW 84.36.060, but only if under the terms of the lease or rental agreement
the nonprofit organization, association, or corporation receives the benefit of
the exemption;
(3)
The facilities and services are available to all regardless of race, color,
national origin or ancestry;
(4)
The organization, association, or corporation is duly licensed or certified
where such licensing or certification is required by law or regulation;
(5)
Property sold to organizations, associations, or corporations with an option to
be repurchased by the seller shall not qualify for exempt status;
(6)
The director of the department of revenue shall have access to its books in
order to determine whether such organization, association, or corporation is
exempt from taxes within the intent of RCW 84.36.030, 84.36.035, 84.36.037,
84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060,
84.36.350, and 84.36.480.
Sec.
9. RCW
84.36.810 and 1994 c 124 s 19 are each amended to read as follows:
(1)
Upon cessation of a use under which an exemption has been granted pursuant to
RCW 84.36.030, ((84.36.550,)) 84.36.037, 84.36.040, 84.36.041,
84.36.043, 84.36.050, ((and)) 84.36.060, and 84.36.550, the
county treasurer shall collect all taxes which would have been paid had the
property not been exempt during the three years preceding, or the life of such
exemption, if such be less, together with the interest at the same rate and
computed in the same way as that upon delinquent property taxes. Where the property
has been granted an exemption for more than ten years, taxes and interest shall
not be assessed under this section.
(2)
Subsection (1) of this section applies only when ownership of the property is
transferred or when fifty-one percent or more of the area of the property has
lost its exempt status. The additional tax under subsection (1) of this
section shall not be imposed if the cessation of use resulted solely from:
(a)
Transfer to a nonprofit organization, association, or corporation for a use
which also qualifies and is granted exemption under the provisions of chapter
84.36 RCW;
(b)
A taking through the exercise of the power of eminent domain, or sale or
transfer to an entity having the power of eminent domain in anticipation of the
exercise of such power;
(c)
Official action by an agency of the state of Washington or by the county or
city within which the property is located which disallows the present use of
such property;
(d)
A natural disaster such as a flood, windstorm, earthquake, or other such
calamity rather than by virtue of the act of the organization, association, or
corporation changing the use of such property;
(e)
Relocation of the activity and use of another location or site except for
undeveloped properties of camp facilities exempted under RCW 84.36.030;
(f)
Cancellation of a lease on property that had been exempt under RCW 84.36.040,
84.36.041, 84.36.043, or 84.36.060;
(g)
A change in the exempt portion of a home for the aging under RCW 84.36.041(3),
as long as some portion of the home remains exempt;
(h)
The conversion of a full exemption of a home for the aging to a partial
exemption or taxable status or the conversion of a partial exemption to taxable
status under RCW 84.36.041(8).
NEW
SECTION. Sec. 10. RCW
82.04.435 is decodified.
NEW
SECTION. Sec. 11. The
following acts or parts of acts are each repealed:
(1) RCW
82.04.444 and 1974 ex.s. c 169 s 5; and
(2) RCW
82.04.445 and 1974 ex.s. c 169 s 6.
NEW
SECTION. Sec. 12.
Section 5 of this act expires July 1, 2004.
