H-1643

AN ACT Relating to interest earnings on sales and use taxes; amending RCW 82.08.050; adding new sections to chapter 82.08 RCW; and adding new sections to chapter 43.63A RCW.

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

Sec. 1. RCW 82.08.050 and 1993 sp.s. c 25 s 704 are each amended to read as follows:

(1)(a) The tax hereby imposed shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable sale in accordance with the schedule of collections adopted by the department pursuant to the provisions of RCW 82.08.060.

(b) Every seller shall maintain a pooled interest-bearing account for deposit of the full amount of the tax payable in respect to each taxable sale within five business days from the date of the taxable sale. The tax and interest accruing on the pooled account must be paid to the department. The interest rate on the interest-bearing pooled account may not be less than the interest rate on certificate of deposits with a term of thirty days. The tax required by this chapter, to be collected by the seller, shall be deemed to be held in trust by the seller until paid to the department, and any seller who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter shall be guilty of a gross misdemeanor.

(c) In case any seller fails to collect the tax herein imposed or having collected the tax, fails to pay it to the department in the manner prescribed by this chapter, whether such failure is the result of his or her own acts or the result of acts or conditions beyond his or her control, he or she shall, nevertheless, be personally liable to the state for the amount of the tax, unless the seller has taken from the buyer in good faith a properly executed resale certificate under RCW 82.04.470.

(d) The amount of tax, until paid by the buyer to the seller or to the department, shall constitute a debt from the buyer to the seller and any seller who fails or refuses to collect the tax as required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any tax due under this chapter shall be guilty of a misdemeanor. The tax required by this chapter to be collected by the seller shall be stated separately from the selling price in any sales invoice or other instrument of sale. On all retail sales through vending machines, the tax need not be stated separately from the selling price or collected separately from the buyer. For purposes of determining the tax due from the buyer to the seller and from the seller to the department it shall be conclusively presumed that the selling price quoted in any price list, sales document, contract or other agreement between the parties does not include the tax imposed by this chapter, but if the seller advertises the price as including the tax or that the seller is paying the tax, the advertised price shall not be considered the selling price.

(e) Where a buyer has failed to pay to the seller the tax imposed by this chapter and the seller has not paid the amount of the tax to the department, the department may, in its discretion, proceed directly against the buyer for collection of the tax, in which case a penalty of ten percent may be added to the amount of the tax for failure of the buyer to pay the same to the seller, regardless of when the tax may be collected by the department; and all of the provisions of chapter 82.32 RCW, including those relative to interest and penalties, shall apply in addition; and, for the sole purpose of applying the various provisions of chapter 82.32 RCW, the twenty-fifth day of the month following the tax period in which the purchase was made shall be considered as the due date of the tax.

(2) The department shall deposit accrued interest on deposits into the investments in Washington's future fund created by section 2 of this act.

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

The investments in Washington's future fund is created in the state treasury. All receipts from RCW 82.08.050(2) must be deposited into the fund. Moneys in the fund may be spent only after appropriation. Expenditures from the fund may be used only for activities authorized in section 3 of this act and may not be used to supplant existing state general funds for the programs.

NEW SECTION. Sec. 3. A new section is added to chapter 82.08 RCW to read as follows:

Moneys in the investments in Washington's future fund created in section 2 of this act shall be distributed as follows:

(1) Ten percent of the moneys in the fund for the basic health plan under chapter 70.47 RCW;

(2) Ten percent of the moneys in the fund for state-wide tourism promotion activities under RCW 43.330.090(2);

(3) Five percent of the moneys in the fund for the youthbuild program under chapter 50.72 RCW;

(4) Five percent of the moneys in the fund for the establishment and operation of the state's foreign offices under RCW 43.31.145;

(5) Twenty percent of the moneys in the fund for grants to public schools for computer hardware and online access under section 4 of this act; and

(6) Fifty percent of the moneys in the fund for the youth sports field grant program created under section 5 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department of community, trade, and economic development shall distribute technology grants to school districts for use in the acquisition of K-12 classroom computer hardware, software, and online access services and equipment.

(2) A school district is eligible for a grant if it either:

(a) Has ongoing programs emphasizing specific approaches to learning assisted by technology; or

(b) It is identified by the center for the improvement of student learning based on best practices, and the district has plans and means for evaluating the improvement in student learning resulting from the technology-based strategies of the district.

(3) The technology grants funds may be supplemented by a combination of:

(a) Private financial contributions;

(b) In-kind contributions; and

(4) School districts must submit proposals for grants to the department of community, trade, and economic development. To the extent funds are available, school districts that meet the eligibility criteria of subsection (2) of this section are provided grants under this section based on a competitive application process.

NEW SECTION. Sec. 5. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department of community, trade, and economic development shall distribute grants to eligible organizations to assist with the acquisition, development, and maintenance of sports fields for youth activities.

(2) Eligibility for grants under this section is limited to an organization that is organized as a community-based nonprofit organization that is recognized by the city or county and is organized under federal or state law.

(3) Eligible organizations must submit proposals for grants to the department of community, trade, and economic development. To the extent funds are available, grants provided under this section are based on a competitive application process.

(4) A grant up to three hundred thousand dollars may be made under this section to those eligible organizations solely for the acquisition, development, or maintenance of sports fields for youth activities.