[atlas:bill]

AN ACT Relating to tax deferrals for theme parks; adding a new chapter to Title 82 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Applicant" means a person applying for a tax deferral under this chapter.

(2) "Person" has the meaning given in RCW 82.04.030.

(3) "Department" means the department of revenue.

(4) "Investment project" means construction of structures, site preparation, and the acquisition of related machinery and equipment when the structures, machinery, and equipment will be used in the operation of a new theme park.

(5) "Theme park" means an entertainment facility that:

(a) Is on a site of at least eighty acres;

(b) Has entertainments and facilities designed around a particular subject or idea;

(c) Provides a wide variety of entertainment, including amusement rides, a water park, live and animated entertainment, games, retail stores, restaurant and food service, and similar facilities; and

(d) For which initiation of construction is after January 1, 2001, and before July 1, 2003.

(6) "Structures" means only new edifices such as ticket offices, entertainment facilities, maintenance facilities, parking facilities, and other structures that are an essential or integral part of a theme park. If a structure is used partly for use as an essential or integral part of a theme park and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.

(7) "Machinery and equipment" means all fixtures, equipment, and support facilities that are an integral and necessary part of a theme park.

(8) "Recipient" means a person receiving a tax deferral under this chapter.

(9) "Certificate holder" means an applicant to whom a tax deferral certificate has been issued.

(10) "Operationally complete" means constructed or improved to the point of being functionally useable as a theme park.

(11) "Initiation of construction" means that date upon which on‑site construction commences.

NEW SECTION. Sec. 2. Application for deferral of taxes under this chapter must be made before initiation of the construction of the investment project or acquisition of equipment or machinery. Application shall be made to the department in a form and manner prescribed by the department. The application shall contain information regarding the location of the investment project, estimated or actual costs, time schedules for completion and operation, and other information required by the department. The department shall rule on the application within sixty days. If the investment project meets the requirements of this chapter, 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 the investment project.

NEW SECTION. Sec. 3. (1) Except as provided in subsection (2) of this section, taxes deferred under this chapter need not be repaid.

(2) If, on the basis of a report under section 4 of this act or other information, the department finds that an investment project is used for purposes other than a theme park at any time during the calendar year in which the investment project is certified by the department as being operationally complete, or at any time during any of the seven succeeding calendar years, a portion of deferred taxes is immediately due according to the following schedule:

Year in which use occurs % of deferred taxes due

1 100.0%

2 87.5%

3 75.0%

4 62.5%

5 50.0%

6 37.5%

7 25.0%

8 12.5%

The department shall assess interest at the rate provided for delinquent taxes, but not penalties, retroactively to the date of deferral. The debt for deferred taxes will not be extinguished by insolvency or other failure of the recipient. Transfer of ownership does not terminate the deferral. The deferral is transferred, subject to the successor meeting the eligibility requirements of this chapter, for the remaining periods of the deferral.

NEW SECTION. Sec. 4. Each recipient of a deferral granted under this chapter shall submit a report to the department on December 31st of the year in which the investment project is certified by the department as being operationally complete, and on December 31st of each of the seven succeeding calendar years. The report shall contain information, as required by the department, from which the department may determine whether the recipient is meeting the requirements of this chapter.

NEW SECTION. Sec. 5. This act takes effect August 1, 2001.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act constitute a new chapter in Title 82 RCW.