AN
ACT Relating to tax exemptions and credits for structures and equipment used to
reduce agricultural burning of cereal grains and field and turf grass grown for
seed; adding a new section to chapter 82.08 RCW; adding a new section to
chapter 82.12 RCW; adding a new section to chapter 82.04 RCW; adding a new
section to chapter 84.36 RCW; creating a new section; providing expiration
dates; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. It is
the intent of the legislature to provide tax exemptions and credits to
encourage alternatives to the field burning of cereal grains and field and turf
grass grown for seed. The exemptions and credits are available to farmers and
to other persons engaged in activities that make it possible to reduce field
burning including persons involved in manufacturing or marketing straw or
straw-based products, or to reduce the air emissions resulting from such
burning. It is the intent of the legislature that the exemptions and credits
provided by this act apply not only to facilities and machinery and equipment
for alternatives currently available, but also to those that may become
available in the future.
NEW
SECTION. Sec. 2. A
new section is added to chapter 82.08 RCW to read as follows:
(1)
The tax levied by RCW 82.08.020 does not apply to sales of machinery and
equipment, and to services rendered in respect to constructing structures,
installing, constructing, repairing, cleaning, decorating, altering, or
improving of structures or eligible machinery and equipment, or to sales of
tangible personal property that becomes an ingredient or component of eligible
structures or eligible machinery and equipment, if the machinery, equipment, or
structure is used more than half of the time:
(a)
For gathering, densifying, processing, handling, storing, transporting, or
incorporating straw or straw-based products that results in a reduction in
field burning of cereal grains and field and turf grass grown for seed; or
(b)
To decrease air emissions resulting from field burning of cereal grains and
field and turf grass grown for seed.
(2)
A person taking the exemption under this section must keep records necessary
for the department to verify eligibility under this section. The exemption is
available only when the buyer provides the seller with an exemption certificate
in a form and manner prescribed by the department. The seller shall retain a
copy of the certificate for the seller's files.
(3)
The department of ecology and the department of agriculture shall consult with
the department with regard to the information necessary for the department to
administer this section.
(4)
This section expires January 1, 2006.
NEW
SECTION. Sec. 3. A
new section is added to chapter 82.12 RCW to read as follows:
(1)
The provisions of this chapter do not apply in respect to the use of machinery
and equipment, or tangible personal property that becomes an ingredient or
component of eligible machinery and equipment used more than half of the time:
(a)
For gathering, densifying, processing, handling, storing, transporting, or
incorporating straw or straw-based products that will result in a reduction in
field burning of cereal grains and field and turf grass grown for seed; or
(b)
To decrease air emissions resulting from field burning of cereal grains and
field and turf grass grown for seed.
(2)
A person taking the exemption under this section must keep records necessary
for the department to verify eligibility under this section.
(3)
The department of ecology shall provide the department with the information
necessary for the department to administer this section.
(4)
This section expires January 1, 2006.
NEW
SECTION. Sec. 4. A
new section is added to chapter 82.04 RCW to read as follows:
(1)
A person who is eligible for the exemption under section 2 or 3 of this act may
take a credit against tax imposed by this chapter, subject to the limitations
in this section.
(2)
The credit under this section is equal to fifty percent of the amount of costs
expended for constructing structures or acquiring machinery and equipment for
which an exemption was taken under section 2 or 3 of this act.
(3)
No application is necessary for the credit under this section. A person taking
the credit must keep records necessary for the department to verify eligibility
under this section. Tax credit may not be claimed for expenditures that
occurred before the effective date of this section.
(4)
No applicant is eligible for tax credits under this section in excess of the
amount of tax that would otherwise be due under this chapter. Approved credit
may not be carried over to subsequent calendar years. The credit must be
claimed by the due date of the last tax return for the calendar year in which
the payment is made. Any unused credit expires. Refunds shall not be given in
place of credits.
(5)
This section expires January 1, 2006.
NEW
SECTION. Sec. 5. A
new section is added to chapter 84.36 RCW to read as follows:
Personal
property eligible for exemption under section 2 or 3 of this act is exempt from
taxation.
This
section applies to taxes levied for collection in 2001 through 2006. This
section expires January 1, 2007.
NEW SECTION. Sec. 6. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
