AN ACT Relating to tax exemptions for dairy
farmers and anaerobic digesters; adding new sections to chapter 82.08 RCW;
adding new sections to chapter 82.12 RCW; creating a new section; 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 to assist dairy farmers
to comply with the dairy nutrient management act, chapter 90.64 RCW, and to
assist public or private entities to establish and operate anaerobic digesters
to treat dairy nutrients on a regional or on‑farm basis.
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 to eligible persons of services rendered in respect to
operating, repairing, cleaning, altering, or improving of dairy nutrient
management equipment and facilities, or to sales of tangible personal property
that becomes an ingredient or component of the equipment and facilities. The
equipment and facilities must be used exclusively for activities necessary to
maintain a dairy nutrient management plan as required under chapter 90.64 RCW.
This exemption applies to sales made after the dairy nutrient management plan
is certified under chapter 90.64 RCW.
(2)(a) The department of revenue must
provide an exemption certificate to an eligible person upon application by that
person. The department of agriculture must provide a list of eligible persons
to the department of revenue. The application must be in a form and manner
prescribed by the department and must contain information regarding the
location of the dairy and other information the department may require.
(b) 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 must retain a copy of the certificate
for the seller's files.
(3) The definitions in this subsection apply
to this section and section 3 of this act unless the context clearly requires
otherwise:
(a) "Dairy nutrient management
equipment and facilities" means machinery, equipment, and structures used
in the handling and treatment of dairy manure, such as aerators, agitators,
alley scrapers, augers, dams, gutter cleaners, loaders, lagoons, pipes, pumps,
separators, and tanks. The term also includes tangible personal property that
becomes an ingredient or component of the equipment and facilities, including
repair and replacement parts.
(b) "Eligible person" means a
person licensed to produce milk under chapter 15.36 RCW who has a certified
dairy nutrient management plan by December 31, 2003, as required by chapter
90.64 RCW.
NEW SECTION. Sec. 3. A
new section is added to chapter 82.12 RCW to read as follows:
The provisions of this chapter do not apply
with respect to the use by an eligible person of tangible personal property
that becomes an ingredient or component of dairy nutrient management equipment
and facilities, as defined in section 2 of this act. The equipment and
facilities must be used exclusively for activities necessary to maintain a
dairy management plan as required under chapter 90.64 RCW. This exemption
applies to the use of tangible personal property made after the dairy nutrient
management plan is certified under chapter 90.64 RCW. The exemption
certificate and recordkeeping requirements of section 2 of this act apply to
this section.
NEW SECTION. Sec. 4. 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 to an eligible person establishing or operating an anaerobic
digester or to services rendered in respect to installing, constructing,
repairing, cleaning, altering, or improving an anaerobic digester, or to sales
of tangible personal property that becomes an ingredient or component of the
anaerobic digester. The anaerobic digester must be used primarily to treat
dairy manure.
(2)(a) The department of revenue must
provide an exemption certificate to an eligible person upon application by that
person. The application must be in a form and manner prescribed by the
department and must contain information regarding the location of the facility
and other information as the department may require.
(b) 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 must retain a copy of the certificate
for the seller's files.
(3) The definitions in this subsection apply
to this section and section 5 of this act unless the context clearly requires
otherwise:
(a) "Anaerobic digester" means a
facility that processes manure from cattle into biogas and dried manure using
microorganisms in a decomposition process within a closed, oxygen-free
container.
(b) "Eligible person" means any
person establishing or operating an anaerobic digester to treat primarily dairy
manure.
(c) "Primarily" means more than
fifty percent measured by volume or weight.
NEW SECTION. Sec. 5. A
new section is added to chapter 82.12 RCW to read as follows:
The provisions of this chapter do not apply
with respect to the use of anaerobic digesters or tangible personal property
that becomes an ingredient or component of anaerobic digesters to treat
primarily dairy manure by an eligible person establishing or operating an
anaerobic digester, as defined in section 4 of this act.
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.
