[atlas:bill]

AN ACT Relating to tax preference review, modification, and termination; amending RCW 43.136.010, 43.136.030, 43.136.040, 43.136.050, 43.136.070, 82.04.050, 82.12.010, 82.08.080, 82.04.060, 82.04.460, 82.12.035, 82.12.060, 82.14.020, 82.08.0255, 82.12.0256, 82.36.230, 82.38.080, 82.42.030, 84.40.030, 84.40.220, 84.36.110, 82.04.280, 82.16.050, 48.14.020, 48.44.020, 43.52.460, 82.04.120, 82.04.260, 82.36.020, 82.48.030, 84.36.020, 84.36.060, 46.10.040, and 15.76.165; reenacting and amending RCW 82.04.190; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding a new section to chapter 48.14 RCW; adding a new section to chapter 82.04 RCW; adding new sections to chapter 82.48 RCW; adding new sections to chapter 43.136 RCW; creating new sections; repealing RCW 82.04.298, 82.04.315, 82.04.317, 82.04.322, 82.04.324, 82.04.327, 82.04.331, 82.04.332, 82.04.333, 82.04.337, 82.04.338, 82.04.339, 82.04.395, 82.04.363, 82.04.3651, 82.04.367, 82.04.368, 82.04.392, 82.04.394, 82.04.399, 82.04.416, 82.04.4201, 82.04.421, 82.04.422, 82.04.4327, 82.04.4329, 82.04.433, 82.04.4331, 82.04.4332, 82.04.4333, 82.04.434, 82.04.44525, 82.04.4453, 82.04.4454, 82.08.02525, 82.08.02535, 82.08.02537, 82.08.02565, 82.08.02566, 82.08.02567, 82.08.02568, 82.08.02569, 82.08.02573, 82.08.026, 82.08.02665, 82.08.02745, 82.08.02795, 82.08.02805, 82.08.02806, 82.08.02875, 82.08.02915, 82.08.02917, 82.08.0294, 82.08.0295, 82.08.0296, 82.08.0297, 82.08.0298, 82.08.0299, 82.08.0311, 82.08.0315, 82.08.036, 82.08.810, 82.08.811, 82.08.820, 82.08.830, 82.08.832, 82.08.834, 82.08.840, 82.08.850, 82.08.860, 82.08.870, 82.08.880, 82.08.890, 82.08.900, 82.08.910, 82.08.920, 82.12.022, 82.12.02545, 82.12.02565, 82.12.02566, 82.12.02568, 82.12.02569, 82.12.02595, 82.12.02685, 82.12.02745, 82.12.02747, 82.12.02748, 82.12.02915, 82.12.02917, 82.12.0294, 82.12.0295, 82.12.0296, 82.12.0297, 82.12.0298, 82.12.0311, 82.12.0315, 82.12.0345, 82.12.0347, 82.12.038, 82.12.800, 82.12.801, 82.12.802, 82.12.810, 82.12.811, 82.12.820, 82.12.832, 82.12.834, 82.12.840, 82.12.845, 82.12.850, 82.12.880, 82.12.890, 82.12.900, 82.12.910, 82.12.920, 82.08.0259, 82.12.0261, 82.08.0267, 82.12.0262, 82.08.0272, 82.12.0267, 82.08.0277, 82.12.0273, 82.08.0257, 82.12.0258, 82.12.0265, 82.08.0276, 82.12.0271, 82.08.0253, 82.08.0282, 82.08.031, 82.12.031, 48.32.145, 82.04.330, 82.04.335, 82.04.410, 82.04.4281, 82.04.4287, 82.04.4292, 82.04.4293, 82.04.4294, 82.04.4298, 82.04.4322, 82.04.4324, 82.04.4326, 82.16.055, 82.29A.135, 82.35.050, 84.36.080, 84.36.105, 84.36.030, 84.36.040, 84.36.050, 84.36.070, 84.36.090, 84.36.400, 84.36.015, 84.36.042, 84.36.046, 84.36.255, 84.36.487, 84.36.510, 84.36.550, 84.36.560, 84.36.570, 84.36.595, 84.36.600, 84.36.605, and 84.36.630; and providing effective dates.

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

Sec. 1. RCW 43.136.010 and 1982 1st ex.s. c 35 s 39 are each amended to read as follows:

The legislature recognizes that tax preferences are enacted by the legislature to meet objectives which are determined to be in the public interest. The legislature finds, however, that some tax preferences may not be efficient or equitable tools for the achievement of current legislative objectives. The legislature finds that unless it can be demonstrated that the public interest is served by the continued existence of tax preferences, they should be terminated or modified. The legislature further finds that periodic evaluations of tax preferences are needed to determine if their continued existence is in the public interest.

It is the intent of the legislature to reaffirm the 1982 act with this 2002 act and to establish a mechanism for scheduling periodic evaluations of tax preferences together with a system for their termination, continuation, or modification. By this mechanism, the legislature intends to ensure that thorough periodic evaluations are made and that those tax preferences which do not continue to serve the public interest are terminated or modified.

Sec. 2. RCW 43.136.030 and 1982 1st ex.s. c 35 s 41 are each amended to read as follows:

The joint legislative ((~~budget~~)) audit and review committee shall review each tax preference for termination by the processes provided in this chapter. The review shall be completed and a report prepared on or before ((~~June~~)) September 30th of the year prior to the date established for termination. Upon completion of its report, the joint legislative ((~~budget~~)) audit and review committee shall transmit copies of the report to the department of revenue. The department of revenue may then conduct its own review of the tax preference scheduled for termination and shall prepare a report on or before ((~~September 30th~~)) December 31st of the year prior to the date established for termination. Upon completion of its report the department of revenue shall transmit copies of its report to the joint legislative ((~~budget~~)) audit and review committee. The joint legislative ((~~budget~~)) audit and review committee shall prepare a final report that includes the reports of both the department of revenue and the joint legislative ((~~budget~~)) audit and review committee. The joint legislative ((~~budget~~)) audit and review committee and the department of revenue shall, upon request, make available to each other all working papers, studies, and other documents which relate to reports required under this section. The joint legislative ((~~budget~~)) audit and review committee shall transmit the final report to all members of the legislature, to the governor, and to the state library.

Sec. 3. RCW 43.136.040 and 1982 1st ex.s. c 35 s 42 are each amended to read as follows:

In reviewing a tax preference, the joint legislative ((~~budget~~)) audit and review committee shall develop information needed by the legislature to determine if the tax preference should be terminated as scheduled, modified, or reestablished without modification. The joint legislative ((~~budget~~)) audit and review committee shall consider, but not be limited to, the following factors in the review.

(1) The persons or organizations whose state tax liabilities are directly affected by the tax preference.

(2) Legislative objectives that might provide a justification for the tax preference.

(3) Evidence that the existence of the tax preference has contributed to the achievement of any of the objectives identified in subsection (2) of this section.

(4) The extent to which continuation of the tax preference beyond its scheduled termination date might contribute to any of the objectives identified in subsection (2) of this section.

(5) Fiscal impacts of the tax preference, including past impacts and expected future impacts if it is not terminated as scheduled.

(6) The extent to which termination of the tax preference would affect the distribution of liability for payment of state taxes.

Sec. 4. RCW 43.136.050 and 1982 1st ex.s. c 35 s 43 are each amended to read as follows:

(1) Following receipt of the final report from the joint legislative ((~~budget~~)) audit and review committee, the ((~~ways and means committees~~)) finance committee of the house of representatives and the ways and means committee of the senate shall jointly hold a public hearing to consider the final report and any related data. The committees shall also receive testimony from the governor, or the governor's designee, and other interested parties, including the general public.

(2) Following the joint hearing, the committees may separately hold additional meetings or hearings to come to a final determination as to whether a continuation, modification, or termination of a tax preference is in the public interest. If a committee determines that a tax preference should be continued or modified, it shall make the determination as a bill. No more than one tax preference shall be reestablished or modified in any one bill.

Sec. 5. RCW 43.136.070 and 1982 1st ex.s. c 35 s 45 are each amended to read as follows:

On or before September 30, 1982, the department of revenue shall provide the ((~~select~~)) joint legislative audit and review committee with a report on existing tax preferences. The report shall include a list of tax preferences and a description of each one. Upon request of the ((~~select~~)) joint legislative audit and review committee, the department of revenue shall provide additional information needed by the ((~~select~~)) joint legislative audit and review committee to meet its responsibilities under this chapter.

Sec. 6. RCW 82.04.050 and 2000 2nd sp.s. c 4 s 23 are each amended to read as follows:

(1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who:

(a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person, but a purchase for the purpose of resale by a regional transit authority under RCW 81.112.300 is not a sale for resale; or

(b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or

(c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or

(d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or

(e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. The term also means every sale of tangible personal property to persons engaged in any business which is taxable under RCW 82.04.280 (2) and (7) and 82.04.290.

(2) The term "sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:

(a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities((~~, and excluding services rendered in respect to live animals, birds and insects~~));

(b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;

(c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner;

(d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing, or moving of existing buildings or structures((, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting));

(e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 RCW;

(f) The sale of and charge made for the furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same;

(g) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), and (f) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection.

(3) The term "sale at retail" or "retail sale" shall include the sale of or charge made for ((~~personal, business, or professional~~)) the rendering of services, other than a sale to a person who purchases for the purpose of resale in the regular course of business, including those services compensated by amounts designated as interest, rents, fees, admission, and other service emoluments however designated, ((~~received~~)) provided by persons engaging in ((~~the following~~)) business activities((:

(a) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, ski lifts and tows, day trips for sightseeing purposes, and others, when provided to consumers;

~~(b) Abstract, title insurance, and escrow services;~~

~~(c) Credit bureau services;~~

~~(d) Automobile parking and storage garage services;~~

(e) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility;

~~(f) Service charges associated with tickets to professional sporting events; and~~

~~(g) The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services.~~

~~(4) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator~~)).

((~~(5)~~)) (4) The term shall also include the providing of telephone service, as defined in RCW 82.04.065, to consumers.

((~~(6)~~)) (5) The term shall also include the sale of canned software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user, but shall not include custom software or the customization of canned software.

(6) The term "sale at retail" or "retail sale shall not include any physical or mental health care services, the provision of which is regulated by the state under chapters 18.29, 18.32, 18.36, 18.50, 18.51, 18.53, 18.55, 18.57, 18.71, 18.74, 18.83, and 18.92 RCW.

(7) The term shall not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.

(8) The term shall also not include sales of ((~~chemical sprays or washes to persons for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, nor shall it include sales of~~)) feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials to: (a) Persons who participate in the federal conservation reserve program, the environmental quality incentives program, the wetlands reserve program, and the wildlife habitat incentives program, or their successors administered by the United States department of agriculture; (b) farmers for the purpose of producing for sale any agricultural product; and (c) farmers acting under cooperative habitat development or access contracts with an organization exempt from federal income tax under 26 U.S.C. Sec. 501(c)(3) or the Washington state department of fish and wildlife to produce or improve wildlife habitat on land that the farmer owns or leases.

(9) The term shall not include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. Nor shall the term include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development.

(10) Until July 1, 2003, the term shall not include the sale of or charge made for labor and services rendered for environmental remedial action as defined in RCW 82.04.2635(2).

Sec. 7. RCW 82.12.010 and 2001 c 188 s 3 are each amended to read as follows:

For the purposes of this chapter:

(1)(a) "Value of the article used" shall mean the consideration, whether money, credit, rights, or other property except trade-in property of like kind, expressed in terms of money, paid or given or contracted to be paid or given by the purchaser to the seller for the article of tangible personal property, the use of which is taxable under this chapter. The term includes, in addition to the consideration paid or given or contracted to be paid or given, the amount of any tariff or duty paid with respect to the importation of the article used. In case the article used is acquired by lease or by gift or is extracted, produced, or manufactured by the person using the same or is sold under conditions wherein the purchase price does not represent the true value thereof, the value of the article used shall be determined as nearly as possible according to the retail selling price at place of use of similar products of like quality and character under such rules as the department of revenue may prescribe.

(b) In case the articles used are acquired by bailment, the value of the use of the articles so used shall be in an amount representing a reasonable rental for the use of the articles so bailed, determined as nearly as possible according to the value of such use at the places of use of similar products of like quality and character under such rules as the department of revenue may prescribe. In case any such articles of tangible personal property are used in respect to the construction, repairing, decorating, or improving of, and which become or are to become an ingredient or component of, new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing or attaching of any such articles therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, then the value of the use of such articles so used shall be determined according to the retail selling price of such articles, or in the absence of such a selling price, as nearly as possible according to the retail selling price at place of use of similar products of like quality and character or, in the absence of either of these selling price measures, such value may be determined upon a cost basis, in any event under such rules as the department of revenue may prescribe.

(c) In the case of articles owned by a user engaged in business outside the state which are brought into the state for no more than one hundred eighty days in any period of three hundred sixty-five consecutive days and which are temporarily used for business purposes by the person in this state, the value of the article used shall be an amount representing a reasonable rental for the use of the articles, unless the person has paid tax under this chapter or chapter 82.08 RCW upon the full value of the article used, as defined in (a) of this subsection.

(d) In the case of articles manufactured or produced by the user and used in the manufacture or production of products sold or to be sold to the department of defense of the United States, the value of the articles used shall be determined according to the value of the ingredients of such articles.

(e) In the case of an article manufactured or produced for purposes of serving as a prototype for the development of a new or improved product, the value of the article used shall be determined by: (i) The retail selling price of such new or improved product when first offered for sale; or (ii) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale.

(f) In the case of an article purchased with a direct pay permit under RCW 82.32.087, the value of the article used shall be determined by the retail selling price, as defined in RCW 82.08.010, of such article if but for the use of the direct pay permit the transaction would have been subject to sales tax;

(2) "Value of the service use" means the consideration, whether money, credit, rights, or other property, expressed in terms of money, paid or given or contracted to be paid or given by the purchaser to the seller for the service, the use of which is taxable under this chapter. If the service is received by gift or under conditions where the purchase price does not represent the true value of the service, the value of the services used shall be determined as nearly as possible according to the retail selling price at the place of use of similar services of like quality and character under rules prescribed by the department of revenue;

(3) "Use," "used," "using," or "put to use" shall have their ordinary meaning, and shall mean:

(a) With respect to personal property, the first act within this state by which the taxpayer takes or assumes dominion or control over the article of tangible personal property (as a consumer), and include installation, storage, withdrawal from storage, or any other act preparatory to subsequent actual use or consumption within this state; and

(b) With respect to a service which affords a benefit or is otherwise capable of utilization within this state, the utilization within this state of the service, regardless of the place of performance;

((~~(3)~~)) (4) "Taxpayer" and "purchaser" include all persons included within the meaning of the word "buyer" and the word "consumer" as defined in chapters 82.04 and 82.08 RCW;

((~~(4)~~)) (5) "Retailer" means every seller as defined in RCW 82.08.010 and every person engaged in the business of selling tangible personal property or services at retail and every person required to collect from purchasers the tax imposed under this chapter;

((~~(5)~~)) (6) The meaning ascribed to words and phrases in chapters 82.04 and 82.08 RCW, insofar as applicable, shall have full force and effect with respect to taxes imposed under the provisions of this chapter. "Consumer," in addition to the meaning ascribed to it in chapters 82.04 and 82.08 RCW insofar as applicable, shall also mean any person who distributes or displays, or causes to be distributed or displayed, any article of tangible personal property, except newspapers, the primary purpose of which is to promote the sale of products or services.

Sec. 8. RCW 82.08.080 and 1986 c 36 s 2 are each amended to read as follows:

The department of revenue may authorize a seller to pay the tax levied under this chapter upon retail sales of tangible personal property or services made under conditions of business such as to render impracticable the collection of the tax as a separate item and waive collection of the tax from the customer. Where sales are made by receipt of a coin or coins dropped into a receptacle that results in delivery of the merchandise in single purchases of smaller value than the minimum sale upon which a one cent tax may be collected from the purchaser, according to the schedule provided by the department under authority of RCW 82.08.060, and where the design of the sales device is such that multiple sales of items are not possible or cannot be detected so as practically to assess a tax, in such a case the selling price for the purposes of the tax imposed under RCW 82.08.020 shall be sixty percent of the gross receipts of the vending machine through which such sales are made. No such authority shall be granted except upon application to the department and unless the department, after hearing, finds that the conditions of the applicant's business are such as to render impracticable the collection of the tax in the manner otherwise provided. The department, by regulation, may provide that the applicant, under this section, furnish a proper bond sufficient to secure the payment of the tax.

Sec. 9. RCW 82.04.060 and 1998 c 332 s 5 are each amended to read as follows:

"Sale at wholesale" or "wholesale sale" means: (1) Any sale of tangible personal property, or any sale of a service, other than those services enumerated under RCW 82.04.050 (6), (7), and (9); (2) any sale of amusement or recreation services as defined in RCW 82.04.050(3)(a); (3) any sale of canned software; or (4) any sale of telephone service as defined in RCW 82.04.065, which is not a sale at retail and means any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property or services, if such charge is expressly defined as a retail sale by RCW 82.04.050 when rendered to or for consumers: PROVIDED, That the term "real or personal property" as used in this section shall not include any natural products named in RCW 82.04.100.

Sec. 10. RCW 82.04.190 and 1998 c 332 s 6 and 1998 c 308 s 2 are each reenacted and amended to read as follows:

"Consumer" means the following:

(1) Any person who purchases, acquires, owns, holds, or uses any article of tangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than for the purpose (a) of resale as tangible personal property in the regular course of business or (b) of incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers or (c) of consuming such property in producing for sale a new article of tangible personal property or a new substance, of which such property becomes an ingredient or component or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale or (d) purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon;

(2)(a) Any person engaged in any business activity taxable under RCW 82.04.290 and any person who purchases, acquires, or uses any retail service included within the definition of retail sale under RCW 82.04.050, other than for resale in the regular course of business. Resale of a service included within the definition of retail sale under RCW 82.04.050 means a separately stated charge to another person for the service by a person who has paid or is obligated to pay an identical charge to one who has originally rendered the identical service; (b) any person who purchases, acquires, or uses any telephone service as defined in RCW 82.04.065, other than for resale in the regular course of business; (c) any person who purchases, acquires, or uses any amusement and recreation service defined in RCW 82.04.050(3)(a), other than for resale in the regular course of business; and (d) any person who is an end user of software;

(3) Any person engaged in the business of contracting for the building, repairing or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state of Washington or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind as defined in RCW 82.04.280, in respect to tangible personal property when such person incorporates such property as an ingredient or component of such publicly owned street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right of way of such street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of such mass public transportation terminal or parking facility;

(4) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business, excluding only (a) municipal corporations or political subdivisions of the state in respect to labor and services rendered to their real property which is used or held for public road purposes, and (b) the United States, instrumentalities thereof, and county and city housing authorities created pursuant to chapter 35.82 RCW in respect to labor and services rendered to their real property. Nothing contained in this or any other subsection of this definition shall be construed to modify any other definition of "consumer";

(5) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business;

(6) Any person engaged in the business of constructing, repairing, decorating, or improving new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation; also, any person engaged in the business of clearing land and moving earth of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW. Any such person shall be a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person;

(7) Any person who is a lessor of machinery and equipment, the rental of which is exempt from the tax imposed by RCW 82.08.020 ((~~under RCW 82.08.02565~~)), with respect to the sale of or charge made for tangible personal property consumed in respect to repairing the machinery and equipment, if the tangible personal property has a useful life of less than one year. Nothing contained in this or any other subsection of this section shall be construed to modify any other definition of "consumer";

(8) Any person engaged in the business of cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development; and

(9) Until July 1, 2003, any person engaged in the business of conducting environmental remedial action as defined in RCW 82.04.2635(2).

Sec. 11. RCW 82.04.460 and 1985 c 7 s 154 are each amended to read as follows:

(1) Any person rendering services taxable under RCW 82.04.250 or 82.04.270 by reason of the amendments to RCW 82.04.050 in this act, or under RCW 82.04.290 and maintaining places of business both within and without this state which contribute to the rendition of such services shall, for the purpose of computing tax liability under RCW 82.04.250, 82.04.270, or 82.04.290, apportion to this state that portion of ((~~his~~)) gross proceeds of sales or gross income which is derived from services rendered within this state. Where such apportionment cannot be accurately made by separate accounting methods, the taxpayer shall apportion to this state that proportion of his total income which the cost of doing business within the state bears to the total cost of doing business both within and without the state.

(2) Notwithstanding the provision of subsection (1) of this section, persons doing business both within and without the state who receive gross income from service charges, as defined in RCW 63.14.010 (relating to amounts charged for granting the right or privilege to make deferred or installment payments) or who receive gross income from engaging in business as financial institutions within the scope of chapter 82.14A RCW (relating to city taxes on financial institutions) shall apportion or allocate gross income taxable under RCW 82.04.290 to this state pursuant to rules promulgated by the department consistent with uniform rules for apportionment or allocation developed by the states.

(3) The department shall by rule provide a method or methods of apportioning or allocating gross income derived from sales of telephone services taxed under this chapter, if the gross proceeds of sales subject to tax under this chapter do not fairly represent the extent of the taxpayer's income attributable to this state. The rules shall be, so far as feasible, consistent with the methods of apportionment contained in this section and shall require the consideration of those facts, circumstances, and apportionment factors as will result in an equitable and constitutionally permissible division of the services.

NEW SECTION. Sec. 12. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 does not apply to the sale of a service to a nonresident for use in a state or possession of the United States or a province of Canada which does not impose a tax on the retail sale or use of that service.

NEW SECTION. Sec. 13. A new section is added to chapter 82.08 RCW to read as follows:

When services constituting retail sales are rendered both within and without the state, the selling price of sales for purposes of this chapter shall be apportioned to this state in accordance with rules prescribed by the department of revenue. The rules shall be, so far as feasible, consistent with the methods of apportionment contained in RCW 82.04.460, and shall require the consideration of those facts, circumstances, and apportionment factors as will result in an equitable and constitutionally permissible division of the services.

NEW SECTION. Sec. 14. A new section is added to chapter 82.12 RCW to read as follows:

An excise tax is imposed on each person engaging in business in this state for the privilege of putting to use within this state as a consumer, and in the performance of the business, any service of a type which is included within the definition of retail sale under RCW 82.04.050. The excise tax shall be collected in an amount equal to the value of the services used by the consumer multiplied by the rate in effect for the retail sales tax under RCW 82.08.020.

NEW SECTION. Sec. 15. A new section is added to chapter 82.12 RCW to read as follows:

The tax imposed under section 14 of this act does not apply in respect to the use of services if the sale to, or the use by, the present user has already been subjected to the tax under chapter 82.08 RCW or this chapter and that tax has been paid by the present user.

NEW SECTION. Sec. 16. A new section is added to chapter 82.12 RCW to read as follows:

The tax imposed under section 14 of this act does not apply in respect to the use of services by the same taxpayer that rendered the services.

Sec. 17. RCW 82.12.035 and 1996 c 148 s 6 are each amended to read as follows:

A credit shall be allowed against the taxes imposed by this chapter upon the use of tangible personal property, or services taxable under RCW 82.04.050(3)(a) or 82.12.010, in the state of Washington in the amount that the present user thereof or his or her bailor or donor has paid a retail sales or use tax with respect to such property to any other state of the United States, any political subdivision thereof, the District of Columbia, and any foreign country or political subdivision thereof, prior to the use of such property in Washington.

Sec. 18. RCW 82.12.060 and 1975 1st ex.s. c 278 s 54 are each amended to read as follows:

In the case of installment sales and leases of personal property or services, the department, by regulation, may provide for the collection of taxes upon the installments of the purchase price, or amount of rental, as of the time the same fall due.

In the case of property acquired by bailment, the department, by regulation, may provide for payment of the tax due in installments based on the reasonable rental for the property as determined under RCW 82.12.010(1).

Sec. 19. RCW 82.14.020 and 2001 c 186 s 3 are each amended to read as follows:

For purposes of this chapter:

(1) A retail sale consisting solely of the sale of tangible personal property shall be deemed to have occurred at the retail outlet at or from which delivery is made to the consumer;

(2) A retail sale consisting essentially of ((~~the performance of personal business or professional~~)) services shall be deemed to have occurred at the place at which such services were primarily performed, except that for the performance of a tow truck service, as defined in RCW 46.55.010, the retail sale shall be deemed to have occurred at the place of business of the operator of the tow truck service;

(3) A retail sale consisting of the rental of tangible personal property shall be deemed to have occurred (a) in the case of a rental involving periodic rental payments, at the primary place of use by the lessee during the period covered by each payment, or (b) in all other cases, at the place of first use by the lessee;

(4) A retail sale within the scope of RCW 82.04.050(2), and a retail sale of taxable personal property to be installed by the seller shall be deemed to have occurred at the place where the labor and services involved were primarily performed;

(5) A retail sale consisting of the providing to a consumer of telephone service, as defined in RCW 82.04.065, other than a sale of tangible personal property under subsection (1) of this section or a rental of tangible personal property under subsection (3) of this section, shall be deemed to have occurred at the situs of the telephone or other instrument through which the telephone service is rendered;

(6) A retail sale of linen and uniform supply services is deemed to occur as provided in RCW 82.08.0202;

(7) "City" means a city or town;

(8) The meaning ascribed to words and phrases in chapters 82.04, 82.08 and 82.12 RCW, as now or hereafter amended, insofar as applicable, shall have full force and effect with respect to taxes imposed under authority of this chapter;

(9) "Taxable event" shall mean any retail sale, or any use of an article of tangible personal property, upon which a state tax is imposed pursuant to chapter 82.08 or 82.12 RCW, as they now exist or may hereafter be amended: PROVIDED, HOWEVER, That the term shall not include a retail sale taxable pursuant to RCW 82.08.150, as now or hereafter amended;

(10) "Treasurer or other legal depository" shall mean the treasurer or legal depository of a county or city.

Sec. 20. RCW 82.08.0255 and 1998 c 176 s 4 are each amended to read as follows:

(1) The tax levied by RCW 82.08.020 shall not apply to sales of:

(a) Motor vehicle fuel used in aircraft by the manufacturer thereof for research, development, and testing purposes, until June 30, 2002; and

(b) Motor vehicle and special fuel if:

(i) The fuel is purchased for the purpose of public transportation and the purchaser is entitled to a refund or an exemption under RCW 82.36.275 or 82.38.080(3); or

(ii) The fuel is purchased by a private, nonprofit transportation provider certified under chapter 81.66 RCW and the purchaser is entitled to a refund or an exemption under RCW 82.36.285 or 82.38.080(1)(h); or

(iii) The fuel is taxable under chapter 82.36 or 82.38 RCW.

(2) Any person who has paid the tax imposed by RCW 82.08.020 on the sale of special fuel delivered in this state shall be entitled to a credit or refund of such tax with respect to fuel subsequently established to have been actually transported and used outside this state by persons engaged in interstate commerce. The tax shall be claimed as a credit or refunded through the tax reports required under RCW 82.38.150.

Sec. 21. RCW 82.12.0256 and 1998 c 176 s 5 are each amended to read as follows:

The provisions of this chapter shall not apply in respect to the use of:

(1) Motor vehicle fuel used in aircraft by the manufacturer thereof for research, development, and testing purposes, until June 30, 2002; and

(2) Special fuel purchased in this state upon which a refund is obtained as provided in RCW 82.38.180(2); and

(3) Motor vehicle and special fuel if:

(a) The fuel is used for the purpose of public transportation and the purchaser is entitled to a refund or an exemption under RCW 82.36.275 or 82.38.080(3); or

(b) The fuel is purchased by a private, nonprofit transportation provider certified under chapter 81.66 RCW and the purchaser is entitled to a refund or an exemption under RCW 82.36.285 or 82.38.080(1)(h); or

(c) The fuel is taxable under chapter 82.36 or 82.38 RCW: PROVIDED, That the use of motor vehicle and special fuel upon which a refund of the applicable fuel tax is obtained shall not be exempt under this subsection (3)(c), and the director of licensing shall deduct from the amount of such tax to be refunded the amount of tax due under this chapter and remit the same each month to the department of revenue.

Sec. 22. RCW 82.36.230 and 1998 c 176 s 34 are each amended to read as follows:

The provisions of this chapter requiring the payment of taxes do not apply to motor vehicle fuel imported into the state in interstate or foreign commerce and intended to be sold while in interstate or foreign commerce, nor to motor vehicle fuel exported from this state by a licensee nor to any motor vehicle fuel sold by a licensee to the armed forces of the United States or to the national guard for use exclusively in ships or for export from this state. The licensee shall report such imports, exports and sales to the department at such times, on such forms, and in such detail as the department may require, otherwise the exemption granted in this section is null and void, and all fuel shall be considered distributed in this state fully subject to the provisions of this chapter. Each invoice covering exempt sales shall have the statement "Ex Washington Motor Vehicle Fuel Tax" clearly marked thereon.

To claim any exemption from taxes under this section on account of sales by a licensee of motor vehicle fuel for export, the purchaser shall obtain from the selling licensee, and such selling licensee must furnish the purchaser, an invoice giving such details of the sale for export as the department may require, copies of which shall be furnished the department and the entity of the state or foreign jurisdiction of destination which is charged by the laws of that state or foreign jurisdiction with the control or monitoring, or both, of the sales or movement of motor vehicle fuel in that state or foreign jurisdiction. For the purposes of this section, motor vehicle fuel distributed to a federally recognized Indian tribal reservation located within the state of Washington is not considered exported outside this state.

To claim any refund of taxes previously paid on account of sales of motor vehicle fuel to the armed forces of the United States or to the national guard, the licensee shall be required to execute an exemption certificate in such form as shall be furnished by the department, containing a certified statement by an authorized officer of the armed forces having actual knowledge of the purpose for which the exemption is claimed. The provisions of this section exempting motor vehicle fuel sold to the armed forces of the United States or to the national guard from the tax imposed hereunder do not apply to any motor vehicle fuel sold to contractors purchasing such fuel either for their own account or as the agents of the United States or the national guard for use in the performance of contracts with the armed forces of the United States or the national guard.

The department may at any time require of any licensee any information the department deems necessary to determine the validity of the claimed exemption, and failure to supply such data will constitute a waiver of all right to the exemption claimed. The department is hereby empowered with full authority to promulgate rules and regulations and to prescribe forms to be used by licensees in reporting to the department so as to prevent evasion of the tax imposed by this chapter.

Upon request from the officials to whom are entrusted the enforcement of the motor vehicle fuel tax law of any other state, the District of Columbia, the United States, its territories and possessions, the provinces, or the Dominion of Canada, the department may forward to such officials any information which the department may have relative to the import or export of any motor vehicle fuel by any licensee: PROVIDED, That such governmental unit furnish like information to this state.

Sec. 23. RCW 82.38.080 and 1998 c 176 s 60 are each amended to read as follows:

(1) There is exempted from the tax imposed by this chapter, the use of fuel for:

(a) Street and highway construction and maintenance purposes in motor vehicles owned and operated by the state of Washington, or any county or municipality;

(b) Publicly owned fire fighting equipment;

(d) Power pumping units or other power take-off equipment of any motor vehicle which is accurately measured by metering devices that have been specifically approved by the department or which is established by any of the following formulae:

(i) Pumping propane, or fuel or heating oils or milk picked up from a farm or dairy farm storage tank by a power take-off unit on a delivery truck, at a rate determined by the department: PROVIDED, That claimant when presenting his or her claim to the department in accordance with this chapter, shall provide to the claim, invoices of propane, or fuel or heating oil delivered, or such other appropriate information as may be required by the department to substantiate his or her claim;

(ii) Operating a power take-off unit on a cement mixer truck or a load compactor on a garbage truck at the rate of twenty-five percent of the total gallons of fuel used in such a truck; or

(iii) The department is authorized to establish by rule additional formulae for determining fuel usage when operating other types of equipment by means of power take-off units when direct measurement of the fuel used is not feasible. The department is also authorized to adopt rules regarding the usage of on board computers for the production of records required by this chapter;

(e) Motor vehicles owned and operated by the United States government;

(f) Heating purposes;

(g) Moving a motor vehicle on a public highway between two pieces of private property when said moving is incidental to the primary use of the motor vehicle;

(h) Transportation services for persons with special transportation needs by a private, nonprofit transportation provider regulated under chapter 81.66 RCW;

(i) Vehicle refrigeration units, mixing units, or other equipment powered by separate motors from separate fuel tanks; and

(j) The operation of a motor vehicle as a part of or incidental to logging operations upon a highway under federal jurisdiction within the boundaries of a federal area if the federal government requires a fee for the privilege of operating the motor vehicle upon the highway, the proceeds of which are reserved for constructing or maintaining roads in the federal area, or requires maintenance or construction work to be performed on the highway for the privilege of operating the motor vehicle on the highway.

(2) There is exempted from the tax imposed by this chapter the removal or entry of special fuel under the following circumstances and conditions:

(a) If it is the removal from a terminal or refinery of, or the entry or sale of, a special fuel if all of the following apply:

(i) The person otherwise liable for the tax is a licensee other than a dyed special fuel user or international fuel tax agreement licensee;

(ii) For a removal from a terminal, the terminal is a licensed terminal; and

(iii) The special fuel satisfies the dyeing and marking requirements of this chapter;

(b) If it is an entry or removal from a terminal or refinery of taxable special fuel transferred to a refinery or terminal and the persons involved, including the terminal operator, are licensed; and

(c)(i) If it is a special fuel that, under contract of sale, is shipped to a point outside this state by a supplier by means of any of the following:

(A) Facilities operated by the supplier;

(B) Delivery by the supplier to a carrier, customs broker, or forwarding agent, whether hired by the purchaser or not, for shipment to the out-of-state point;

(C) Delivery by the supplier to a vessel clearing from port of this state for a port outside this state and actually exported from this state in the vessel.

(ii) For purposes of this subsection (2)(c):

(A) "Carrier" means a person or firm engaged in the business of transporting for compensation property owned by other persons, and includes both common and contract carriers; and

(B) "Forwarding agent" means a person or firm engaged in the business of preparing property for shipment or arranging for its shipment.

(3) Notwithstanding any provision of law to the contrary, every urban passenger transportation system ((~~and carriers as defined by chapters 81.68 and 81.70 RCW~~)) shall be exempt from the provisions of this chapter requiring the payment of special fuel taxes. For the purposes of this section "urban passenger transportation system" means every publicly owned transportation system, ((~~publicly or privately owned,~~)) having as its principal source of revenue the income from transporting persons for compensation by means of motor vehicles and/or trackless trolleys, each having a seating capacity for over fifteen persons over prescribed routes in such a manner that the routes of such motor vehicles and/or trackless trolleys, either alone or in conjunction with routes of other such motor vehicles and/or trackless trolleys subject to routing by the same transportation system, shall not extend for a distance exceeding twenty-five road miles beyond the corporate limits of the county in which the original starting points of such motor vehicles are located: PROVIDED, That no refunds or credits shall be granted on special fuel used by any urban transportation vehicle ((~~or vehicle operated pursuant to chapters 81.68 and 81.70 RCW~~)) on any trip where any portion of said trip is more than twenty-five road miles beyond the corporate limits of the county in which said trip originated.

Sec. 24. RCW 82.42.030 and 1989 c 193 s 4 are each amended to read as follows:

(1) Until June 30, 2002, the provision of RCW 82.42.020 imposing the payment of an excise tax on each gallon of aircraft fuel sold, delivered or used in this state shall not apply to aircraft fuel sold for export, nor to aircraft fuel used for the following purposes: ((~~(1)~~)) (a) The operation of aircraft when such use is by any air carrier or supplemental air carrier operating under a certificate of public convenience and necessity under the provisions of the Federal Aviation Act of 1958, Public Law 85-726, as amended; ((~~(2)~~)) (b) the operation of aircraft for testing or experimental purposes; ((~~(3)~~)) (c) the operation of aircraft when such operation is for the training of crews in Washington state for purchasers of aircraft who are certified air carriers; and ((~~(4)~~)) (d) the operation of aircraft in the operations of a local service commuter: PROVIDED, That the director's determination as to a particular activity for which aircraft fuel is used as being an exemption under this section, or otherwise, shall be final.

(2) To claim an exemption on account of sales by a licensed distributor of aircraft fuel for export, the purchaser shall obtain from the selling distributor, and such selling distributor must furnish the purchaser, an invoice giving such details of the sale for export as the director may require, copies of which shall be furnished the department and the entity of the state or foreign jurisdiction of destination which is charged by the laws of that state or foreign jurisdiction with the control or monitoring or both, of the sales or movement of aircraft fuel in that state or foreign jurisdiction.

(3) On and after July 1, 2002, the provision of RCW 82.42.020 imposing the payment of an excise tax on each gallon of aircraft fuel sold, delivered, or used in this state does not apply to aircraft fuel used for the operation of aircraft which is not taxable by this state by reason of federal law.

Sec. 25. RCW 84.40.030 and 2001 c 187 s 17 are each amended to read as follows:

All property shall be valued at one hundred percent of its true and fair value in money and assessed on the same basis unless specifically provided otherwise by law.

Taxable leasehold estates shall be valued at such price as they would bring at a fair, voluntary sale for cash without any deductions for any indebtedness owed including rentals to be paid.

The true and fair value of real property for taxation purposes (including property upon which there is a coal or other mine, or stone or other quarry) shall be based upon the following criteria:

(1) Any sales of the property being appraised or similar properties with respect to sales made within the past five years. The appraisal shall be consistent with the comprehensive land use plan, development regulations under chapter 36.70A RCW, zoning, and any other governmental policies or practices in effect at the time of appraisal that affect the use of property, as well as physical and environmental influences. An assessment may not be determined by a method that assumes a land usage not permitted, for that property being appraised, under existing zoning or land use planning ordinances or statutes. The appraisal shall also take into account: (a) In the use of sales by real estate contract as similar sales, the extent, if any, to which the stated selling price has been increased by reason of the down payment, interest rate, or other financing terms; and (b) the extent to which the sale of a similar property actually represents the general effective market demand for property of such type, in the geographical area in which such property is located. Sales involving deed releases or similar seller-developer financing arrangements shall not be used as sales of similar property.

(2) In addition to sales as defined in subsection (1) of this section, consideration may be given to cost, cost less depreciation, reconstruction cost less depreciation, or capitalization of income that would be derived from prudent use of the property. In the case of property of a complex nature, or being used under terms of a franchise from a public agency, or operating as a public utility, or property not having a record of sale within five years and not having a significant number of sales of similar property in the general area, the provisions of this subsection shall be the dominant factors in valuation. When provisions of this subsection are relied upon for establishing values the property owner shall be advised upon request of the factors used in arriving at such value.

(3) In valuing any tract or parcel of real property, the true and fair value of the land, exclusive of structures thereon shall be determined; also the true and fair value of structures thereon, but the valuation shall not exceed the true and fair value of the total property as it exists. In valuing agricultural land, growing crops shall be excluded as long as the growing stock of nurserymen shall not be considered as growing crops for the purposes of this chapter after December 31, 2005.

Sec. 26. RCW 84.40.220 and 1974 ex.s. c 83 s 1 are each amended to read as follows:

Whoever owns, or has in his possession or subject to his control, any goods, merchandise, grain or produce of any kind, or other personal property within this state, with authority to sell the same, which has been purchased either in or out of this state, with a view to being sold at an advanced price or profit, or which has been consigned to him from any place out of this state for the purpose of being sold at any place within the state, shall be held to be a merchant, and when he is by this title required to make out and to deliver to the assessor a statement of his other personal property, he shall state the value of such property pertaining to his business as a merchant. No consignee shall be required to list for taxation the value of any property the product of this state, nor the value of any property consigned to him from any other place for the sole purpose of being stored or forwarded, if he has no interest in such property nor any profit to be derived from its sale. The growing stock of nurserymen, which is owned by the original producer thereof or which has been held or possessed by the nurserymen for one hundred eighty days or more, shall, whether personal or real property, be considered the same as growing crops on cultivated lands((~~: PROVIDED, That~~)) as long as the nurserymen ((be)) is licensed by the department of agriculture((~~: PROVIDED FURTHER, That~~)). Growing crops shall not include the growing stock of nurserymen after December 31, 2005. An original producer, within the meaning of this section, shall include a person who, beginning with seeds, cuttings, bulbs, corms, or any form of immature plants, grows such plants in the course of their development into either a marketable partially grown product or a marketable consumer product.

Sec. 27. RCW 84.36.110 and 1988 c 10 s 1 are each amended to read as follows:

The following property shall be exempt from taxation:

(1) All household goods and furnishings in actual use by the owner thereof in equipping and outfitting his or her residence or place of abode and not for sale or commercial use, and all personal effects held by any person for his or her exclusive use and benefit and not for sale or commercial use.

(2) Until December 31, 2004, the personal property, other than specified in subdivision (1) hereof, of each head of a family liable to assessment and taxation of which such individual is the actual and bona fide owner to an amount of three thousand dollars of actual values: PROVIDED, That this exemption shall not apply to any private motor vehicle, or mobile home, and: PROVIDED, FURTHER, That if the county assessor is satisfied that all of the personal property of any person is exempt from taxation under the provisions of this statute or any other statute providing exemptions for personal property, no listing of such property shall be required; but if the personal property described in this subsection exceeds in value the amount allowed as exempt, then a complete list of said personal property shall be made as provided by law, and the county assessor shall deduct the amount of the exemption authorized by this subsection from the total amount of the assessment and assess the remainder.

Sec. 28. RCW 82.04.280 and 1998 c 343 s 3 are each amended to read as follows:

Upon every person engaging within this state in the business of: (1) Printing, and of publishing newspapers, periodicals, or magazines; (2) building, repairing or improving any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (3) extracting for hire or processing for hire; (4) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (5) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of RCW 48.05.310; (6) radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station's total audience as measured by the 100 micro-volt signal strength and delivery by wire, if any, however, after June 30, 2003, the exclusion provided in this subsection (6) is limited to gross income from advertising which is not taxable by this state by reason of federal law; (7) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.484 percent.

As used in this section, "cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.

As used in this section, "storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance. "Storage warehouse" does not include a building or structure, or that part of such building or structure, in which an activity taxable under RCW 82.04.272 is conducted.

As used in this section, "periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.

Sec. 29. RCW 82.16.050 and 2000 c 245 s 1 are each amended to read as follows:

In computing tax there may be deducted from the gross income the following items:

(1) Amounts derived by municipally owned or operated public service businesses, directly from taxes levied for the support or maintenance thereof: PROVIDED, That this section shall not be construed to exempt service charges which are spread on the property tax rolls and collected as taxes;

(2) Amounts derived from the sale of commodities to persons in the same public service business as the seller, for resale as such within this state. This deduction is allowed only with respect to water distribution, gas distribution or other public service businesses which furnish water, gas or any other commodity in the performance of public service businesses;

(3) Amounts actually paid by a taxpayer to another person taxable under this chapter as the latter's portion of the consideration due for services furnished jointly by both, if the total amount has been credited to and appears in the gross income reported for tax by the former;

(4) The amount of cash discount actually taken by the purchaser or customer;

(5) The amount of credit losses actually sustained by taxpayers whose regular books of accounts are kept upon an accrual basis;

(6) Amounts derived from business which the state is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States on and after July 1, 2003, with respect to amounts derived from transportation of persons or property or transmission of communications from points of origin in this state to points outside this state or from points of origin outside this state to points within this state, there may be deducted from gross income amounts attributable to the portion of the transportation or communication as occurs outside this state under rules prescribed by the department of revenue;

(7) Until June 30, 2003, amounts derived from the distribution of water through an irrigation system, for irrigation purposes;

(8) Until June 30, 2003, amounts derived from the transportation of commodities from points of origin in this state to final destination outside this state, or from points of origin outside this state to final destination in this state, with respect to which the carrier grants to the shipper the privilege of stopping the shipment in transit at some point in this state for the purpose of storing, manufacturing, milling, or other processing, and thereafter forwards the same commodity, or its equivalent, in the same or converted form, under a through freight rate from point of origin to final destination; and amounts derived from the transportation of commodities from points of origin in the state to an export elevator, wharf, dock or ship side on tidewater or navigable tributaries thereto from which such commodities are forwarded, without intervening transportation, by vessel, in their original form, to interstate or foreign destinations: PROVIDED, That no deduction will be allowed when the point of origin and the point of delivery to such an export elevator, wharf, dock, or ship side are located within the corporate limits of the same city or town;

(9) Amounts derived from the production, sale, or transfer of electrical energy for resale within or outside the state or for consumption outside the state;

(10) Amounts derived from the distribution of water by a nonprofit water association and used for capital improvements by that nonprofit water association;

(11) Amounts paid by a sewerage collection business taxable under RCW 82.16.020(1)(a) to a person taxable under chapter 82.04 RCW for the treatment or disposal of sewage.

Sec. 30. RCW 48.14.020 and 1986 c 296 s 1 are each amended to read as follows:

(1) Subject to other provisions of this chapter, each authorized insurer except title insurers shall on or before the first day of March of each year pay to the state treasurer through the commissioner's office a tax on premiums. Except as provided in subsection (2) of this section, such tax shall be in the amount of two percent of all premiums, excluding amounts returned to or the amount of reductions in premiums allowed to holders of industrial life policies for payment of premiums directly to an office of the insurer, collected or received by the insurer during the preceding calendar year other than ocean marine and foreign trade insurances, after deducting premiums paid to policyholders as returned premiums, upon risks or property resident, situated, or to be performed in this state. For the purposes of this section the consideration received by an insurer for the granting of an annuity shall not be deemed to be a premium.

(2) In the case of insurers which require the payment by their policyholders at the inception of their policies of the entire premium thereon in the form of premiums or premium deposits which are the same in amount, based on the character of the risks, regardless of the length of term for which such policies are written, such tax shall be in the amount of two percent of the gross amount of such premiums and premium deposits upon policies on risks resident, located, or to be performed in this state, in force as of the thirty-first day of December next preceding, less the unused or unabsorbed portion of such premiums and premium deposits computed at the average rate thereof actually paid or credited to policyholders or applied in part payment of any renewal premiums or premium deposits on one-year policies expiring during such year.

(3) Each authorized insurer shall with respect to all ocean marine and foreign trade insurance contracts written within this state during the preceding calendar year, on or before the first day of March of each year pay to the state treasurer through the commissioner's office a tax of ninety-five one-hundredths of one percent on its gross underwriting profit. Such gross underwriting profit shall be ascertained by deducting from the net premiums (i.e., gross premiums less all return premiums and premiums for reinsurance) on such ocean marine and foreign trade insurance contracts the net losses paid (i.e., gross losses paid less salvage and recoveries on reinsurance ceded) during such calendar year under such contracts. In the case of insurers issuing participating contracts, such gross underwriting profit shall not include, for computation of the tax prescribed by this subsection, the amounts refunded, or paid as participation dividends, by such insurers to the holders of such contracts.

(4) The state does hereby preempt the field of imposing excise or privilege taxes upon insurers or their agents, other than title insurers, and no county, city, town or other municipal subdivision shall have the right to impose any such taxes upon such insurers or their agents.

(5) If an authorized insurer collects or receives any such premiums on account of policies in force in this state which were originally issued by another insurer and which other insurer is not authorized to transact insurance in this state on its own account, such collecting insurer shall be liable for and shall pay the tax on such premiums.

NEW SECTION. Sec. 31. A new section is added to chapter 48.14 RCW to read as follows:

Health maintenance organizations under chapter 48.46 RCW are subject to the tax imposed under this chapter.

Sec. 32. RCW 48.44.020 and 2000 c 79 s 28 are each amended to read as follows:

(1) Any health care service contractor may enter into contracts with or for the benefit of persons or groups of persons which require prepayment for health care services by or for such persons in consideration of such health care service contractor providing one or more health care services to such persons and such activity shall not be subject to the laws relating to insurance, except chapter 48.14 RCW after June 30, 2003, if the health care services are rendered by the health care service contractor or by a participating provider.

(2) The commissioner may on examination, subject to the right of the health care service contractor to demand and receive a hearing under chapters 48.04 and 34.05 RCW, disapprove any individual or group contract form for any of the following grounds:

(a) If it contains or incorporates by reference any inconsistent, ambiguous or misleading clauses, or exceptions and conditions which unreasonably or deceptively affect the risk purported to be assumed in the general coverage of the contract; or

(b) If it has any title, heading, or other indication of its provisions which is misleading; or

(d) If it contains unreasonable restrictions on the treatment of patients; or

(e) If it violates any provision of this chapter; or

(f) If it fails to conform to minimum provisions or standards required by regulation made by the commissioner pursuant to chapter 34.05 RCW; or

(g) If any contract for health care services with any state agency, division, subdivision, board, or commission or with any political subdivision, municipal corporation, or quasi-municipal corporation fails to comply with state law.

(3) In addition to the grounds listed in subsection (2) of this section, the commissioner may disapprove any group contract if the benefits provided therein are unreasonable in relation to the amount charged for the contract.

(4)(a) Every contract between a health care service contractor and a participating provider of health care services shall be in writing and shall state that in the event the health care service contractor fails to pay for health care services as provided in the contract, the enrolled participant shall not be liable to the provider for sums owed by the health care service contractor. Every such contract shall provide that this requirement shall survive termination of the contract.

(b) No participating provider, agent, trustee, or assignee may maintain any action against an enrolled participant to collect sums owed by the health care service contractor.

Sec. 33. RCW 43.52.460 and 1971 ex.s. c 75 s 1 are each amended to read as follows:

Any joint operating agency formed under this chapter shall pay in lieu of taxes payments in the same amounts as paid by public utility districts. Such payments shall be distributed in accordance with the provisions applicable to public utility districts: PROVIDED, HOWEVER, That until June 30, 2003, such tax shall not apply to steam generated electricity produced by a nuclear steam powered electric generating facility constructed or acquired by a joint operating agency and in operation prior to May 17, 1971.

Sec. 34. RCW 82.04.120 and 1999 sp.s. c 9 s 1 are each amended to read as follows:

Until June 30, 2003, "to manufacture" embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and shall include: (1) The production or fabrication of special made or custom made articles; (2) the production or fabrication of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (3) cutting, delimbing, and measuring of felled, cut, or taken trees; and (4) crushing and/or blending of rock, sand, stone, gravel, or ore.

"To manufacture" shall not include: Conditioning of seed for use in planting; cubing hay or alfalfa; activities which consist of cutting, grading, or ice glazing seafood which has been cooked, frozen, or canned outside this state; the growing, harvesting, or producing of agricultural products; or packing of agricultural products, including sorting, washing, rinsing, grading, waxing, treating with fungicide, packaging, chilling, or placing in controlled atmospheric storage.

Sec. 35. RCW 82.04.260 and 2001 2nd sp.s. c 25 s 2 are each amended to read as follows:

(1) Upon every person engaging within this state in the business of manufacturing:

(a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola byproducts, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business shall be equal to the value of the flour, pearl barley, oil, canola meal, or canola byproduct manufactured, multiplied by the rate of 0.138 percent;

(b) Seafood products which remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured, multiplied by the rate of 0.138 percent;

(c) By canning, preserving, freezing, processing, or dehydrating fresh fruits and vegetables, or selling at wholesale fresh fruits and vegetables canned, preserved, frozen, processed, or dehydrated by the seller and sold to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business shall be equal to the value of the products canned, preserved, frozen, processed, or dehydrated multiplied by the rate of 0.138 percent. As proof of sale to a person who transports in the ordinary course of business goods out of this state, the seller shall annually provide a statement in a form prescribed by the department and retain the statement as a business record; and

(d) Dairy products that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including byproducts from the manufacturing of the dairy products such as whey and casein; or selling the same to purchasers who transport in the ordinary course of business the goods out of state; as to such persons the tax imposed shall be equal to the value of the products manufactured multiplied by the rate of 0.138 percent. As proof of sale to a person who transports in the ordinary course of business goods out of this state, the seller shall annually provide a statement in a form prescribed by the department and retain the statement as a business record.

(2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business shall be equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.

(3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.

(4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed shall be equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.

(5) Upon every person engaging within this state in the business of making sales, at retail or wholesale, of nuclear fuel assemblies manufactured by that person, as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the assemblies multiplied by the rate of 0.275 percent.

(6) Upon every person engaging within this state in the business of manufacturing nuclear fuel assemblies, as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured multiplied by the rate of 0.275 percent.

(7) Upon every person engaging within this state in the business of acting as a travel agent or tour operator; as to such persons the amount of the tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.

(8) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.

(9) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection shall be exempt from payment of taxes imposed by chapter 82.16 RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.

(10) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 43.145.010; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business, excluding any fees imposed under chapter 43.200 RCW, multiplied by the rate of 3.3 percent.

If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state shall be determined in accordance with the methods of apportionment required under RCW 82.04.460.

(11) Upon every person engaging within this state as an insurance agent, insurance broker, or insurance solicitor licensed under chapter 48.17 RCW; as to such persons, the amount of the tax with respect to such licensed activities shall be equal to the gross income of such business multiplied by the rate of 0.484 percent.

(12) Upon every person engaging within this state in business as a hospital, as defined in chapter 70.41 RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities shall be equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter. The moneys collected under this subsection shall be deposited in the health services account created under RCW 43.72.900.

NEW SECTION. Sec. 36. A new section is added to chapter 82.04 RCW to read as follows:

This chapter does not apply to any person in respect to any business activity enumerated in RCW 48.44.015 or 48.46.040.

Sec. 37. RCW 82.36.020 and 2001 c 270 s 2 are each amended to read as follows:

(1) There is hereby levied and imposed upon motor vehicle fuel users a tax at the rate computed in the manner provided in RCW 82.36.025 on each gallon of motor vehicle fuel.

(2) The tax imposed by subsection (1) of this section is imposed when any of the following occurs:

(a) Motor vehicle fuel is removed in this state from a terminal if the motor vehicle fuel is removed at the rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state;

(b) Motor vehicle fuel is removed in this state from a refinery if either of the following applies:

(i) The removal is by bulk transfer and the refiner or the owner of the motor vehicle fuel immediately before the removal is not a licensee; or

(ii) The removal is at the refinery rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state;

(i) The entry is by bulk transfer and the importer is not a licensee; or

(ii) The entry is not by bulk transfer;

(d) Motor vehicle fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the motor vehicle fuel;

(e) Blended motor vehicle fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended motor vehicle fuel subject to the tax is the difference between the total number of gallons of blended motor vehicle fuel removed or sold and the number of gallons of previously taxed motor vehicle fuel used to produce the blended motor vehicle fuel;

(f) Motor vehicle fuel is sold by a licensed motor vehicle fuel supplier to a motor vehicle fuel distributor, motor vehicle fuel importer, or motor vehicle fuel blender and the motor vehicle fuel is not removed from the bulk transfer-terminal system.

(3) The proceeds of the motor vehicle fuel excise tax shall be distributed as provided in RCW 46.68.090.

Sec. 38. RCW 82.48.030 and 1983 2nd ex.s. c 3 s 22 are each amended to read as follows:

(1) The amount of the tax imposed by this chapter for each calendar year shall be as follows:

Type of aircraft Registration fee

Single engine fixed wing $ 50

Small multi-engine fixed wing 65

Large multi-engine fixed wing 80

Turboprop multi-engine fixed wing 100

Turbojet multi-engine fixed wing 125

Helicopter 75

Sailplane 20

Lighter than air 20

Home built 20

(2) On and after January 1, 2005, the amount of the tax imposed by this chapter for each calendar year shall be two and two-tenths percent of the fair market value of the aircraft, as determined under sections 39 and 40 of this act. The amount of tax imposed under subsection (1) of this section for each calendar year shall be divided into twelve parts corresponding to the months of the calendar year and the excise tax upon an aircraft registered for the first time in this state after the last day of any month shall only be levied for the remaining months of the calendar year including the month in which the aircraft is being registered: PROVIDED, That the minimum amount payable shall be three dollars.

An aircraft shall be deemed registered for the first time in this state when such aircraft was not previously registered by this state for the year immediately preceding the year in which application for registration is made.

NEW SECTION. Sec. 39. A new section is added to chapter 82.48 RCW to read as follows:

After consultation with the department of licensing, the department of revenue shall prepare at least once each year a schedule for use in the collection of the excise tax imposed by this chapter. The schedule shall be based on available information pertaining to the fair market value of aircraft. Aircraft shall be classified into a convenient number of classes on the basis of price, make, type, year of manufacture, or any other reasonable basis, and the rate of tax prescribed in RCW 82.48.030 shall be applied to the value of aircraft within the classes as determined. In determining fair market value, the department of revenue may use any guidebook, report, or compendium of recognized standing in the aircraft industry. The schedule shall show, so far as possible, the amount of excise tax for aircraft within each class and shall sufficiently describe the aircraft included within each class to enable the department of licensing and its agents to ascertain readily the amount of tax applicable to any particular aircraft.

NEW SECTION. Sec. 40. A new section is added to chapter 82.48 RCW to read as follows:

Whenever a person applies for a registration for an aircraft which does not appear on the schedule, the applicant shall apply to the county assessor of the applicant's county for computation of the amount of excise tax due. Upon application, the assessor shall appraise the aircraft at its fair market value based on any guidebook, report, or compendium of recognized standing in the aircraft industry, ascertain the amount of excise tax by applying to the appraisal the rate of the tax under this chapter, and give the applicant a certificate showing the excise tax due under this chapter.

Sec. 41. RCW 84.36.020 and 1994 c 124 s 16 are each amended to read as follows:

The following real and personal property shall be exempt from taxation:

(1) All lands, buildings, and personal property required for necessary administration and maintenance, used, or to the extent used, exclusively for public burying grounds or cemeteries without discrimination as to race, color, national origin or ancestry;

(2) Until December 31, 2005, all churches, personal property, and the ground, not exceeding five acres in area, upon which a church of any nonprofit recognized religious denomination is or shall be built, together with a parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property. The area exempted shall in any case include all ground covered by the church, parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property and the structures and ground necessary for street access, parking, light, and ventilation, but the area of unoccupied ground exempted in such cases, in connection with church, parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property, shall not exceed the equivalent of one hundred twenty by one hundred twenty feet except where additional unoccupied land may be required to conform with state or local codes, zoning, or licensing requirements. The parsonage and convent need not be on land contiguous to the church property. To be exempt the property must be wholly used for church purposes: PROVIDED, That the loan or rental of property otherwise exempt under this paragraph to a nonprofit organization, association, or corporation, or school for use for an eleemosynary activity shall not nullify the exemption provided in this paragraph if the rental income, if any, is reasonable and is devoted solely to the operation and maintenance of the property.

Sec. 42. RCW 84.36.060 and 1995 c 306 s 1 are each amended to read as follows:

The following property shall be exempt from taxation:

(1) Until December 31, 2005, all art, scientific, or historical collections of associations maintaining and exhibiting such collections for the benefit of the general public and not for profit, together with all real and personal property of such associations used exclusively for the safekeeping, maintaining and exhibiting of such collections; and all the real and personal property owned by or leased to associations engaged in the production and performance of musical, dance, artistic, dramatic, or literary works for the benefit of the general public and not for profit, which real and personal property is used exclusively for this production or performance.

(a) To receive this exemption an organization must be organized and operated exclusively for artistic, scientific, historical, literary, musical, dance, dramatic, or educational purposes and receive a substantial part of its support (exclusive of income received in the exercise or performance by such organization of its purpose or function) from the United States or any state or any political subdivision thereof or from direct or indirect contributions from the general public.

(b) If the property is not currently being used for an exempt purpose but will be used for an exempt purpose within a reasonable period of time, the nonprofit organization, association, or corporation claiming the exemption must submit proof that a reasonably specific and active program is being carried out to construct, remodel, or otherwise enable the property to be used for an exempt purpose. The property does not qualify for an exemption during this interim period if the property is used by, loaned to, or rented to a for-profit organization or business enterprise. Proof of a specific and active program to build or remodel the property so it may be used for an exempt purpose may include, but is not limited to:

(i) Affirmative action by the board of directors, trustees, or governing body of the nonprofit organization, association, or corporation toward an active program of construction or remodeling;

(ii) Itemized reasons for the proposed construction or remodeling;

(iii) Clearly established plans for financing the construction or remodeling; or

(iv) Building permits.

(c) Notwithstanding (b) of this subsection, a for-profit limited partnership created to provide facilities for the use of nonprofit art, scientific, or historical organizations qualifies for the exemption under (b) of this subsection through 1997 if the for-profit limited partnership otherwise qualifies under (b) of this subsection.

(2) All fire engines and other implements used for the extinguishment of fire, with the buildings used exclusively for the safekeeping thereof, and for meetings of fire companies, provided such properties belong to any city or town or to a fire company therein.

(3) Property owned by humane societies in this state in actual use by such societies.

Sec. 43. RCW 46.10.040 and 2001 2nd sp.s. c 7 s 918 are each amended to read as follows:

(1) Application for registration shall be made to the department in the manner and upon forms the department prescribes, and shall state the name and address of each owner of the snowmobile to be registered, and shall be signed by at least one such owner, and shall be accompanied by an annual registration fee to be established by the commission, after consultation with the committee and any statewide snowmobile user groups, and after December 31, 2005, an annual excise tax of two and two-tenths percent of the fair market value of the snowmobile. The fair market value of the snowmobile shall be determined under sections 44 and 45 of this act. The commission shall increase the current fee of twenty dollars by five dollars effective September 30, 2001, and the commission shall increase the fee by another five dollars effective September 30, 2002. After the fee increase effective September 30, 2002, the commission shall not increase the fee. Upon receipt of the application and the application fee, the snowmobile shall be registered and a registration number assigned, which shall be affixed to the snowmobile in a manner provided in RCW 46.10.070.

(2) The registration and excise tax provided in this section shall be valid for a period of one year. At the end of the period of registration, every owner of a snowmobile in this state shall renew his or her registration in the manner the department prescribes, for an additional period of one year, upon payment of the annual registration fee as determined by the commission and payment of the annual excise tax.

(3) Any person acquiring a snowmobile already validly registered under the provisions of this chapter must, within ten days of the acquisition or purchase of the snowmobile, make application to the department for transfer of the registration, and the application shall be accompanied by a transfer fee of one dollar and twenty-five cents.

A snowmobile owned by a resident of another state or Canadian province where registration is not required by law may be issued a nonresident registration permit valid for not more than sixty days. Application for the permit shall state the name and address of each owner of the snowmobile to be registered and shall be signed by at least one owner and shall be accompanied by a registration fee of five dollars. The registration permit shall be carried on the vehicle at all times during its operation in this state.

(4) The registration fees and excise taxes provided in this section shall be in lieu of any personal property or excise tax heretofore imposed on snowmobiles by this state or any political subdivision thereof, and no city, county, or other municipality, and no state agency shall hereafter impose any other registration or license fee on any snowmobile in this state.

(5) The department shall make available a pair of uniform decals consistent with the provisions of RCW 46.10.070. In addition to the registration fee provided in this section the department shall charge each applicant for registration the actual cost of the decal. The department shall make available replacement decals for a fee equivalent to the actual cost of the decals.

(6) The excise tax for a snowmobile registered for the first time in this state during calendar year 2006 shall be prorated for the remaining months of the calendar year, including the month in which the snowmobile is registered, only if the current owner first acquired the snowmobile within one month of the date of application for registration. The excise tax for a snowmobile registered for the first time in this state after December 31, 2006, shall be prorated for the remaining months of the calendar year, including the month in which the snowmobile is registered. A snowmobile is registered for the first time in this state if the snowmobile was not registered in this state for the immediately preceding year.

NEW SECTION. Sec. 44. After consultation with the department of licensing, the department of revenue shall prepare at least once each year a schedule for use in the collection of the excise tax imposed under this chapter. The schedule shall be based on available information pertaining to the fair market value of snowmobiles. The snowmobiles shall be classified into a convenient number of classes on the basis of price, make, type, year of manufacture, or any other reasonable basis, and the rate of tax shall be applied to the value of snowmobiles within the classes as determined. In determining fair market value, the department of revenue may use any guidebook, report, or compendium of recognized standing. The schedule shall show, so far as possible, the amount of excise tax for snowmobiles within each class and shall sufficiently describe the snowmobiles included within each class to enable the department of licensing and its agents to ascertain readily the amount of tax applicable to any particular snowmobile.

NEW SECTION. Sec. 45. Whenever a person applies for a registration for a snowmobile which does not appear on the schedule, the applicant shall apply to the county assessor of the applicant's county for computation of the amount of excise tax due. Upon application, the assessor shall appraise the snowmobile at its fair market value based on any guidebook, report, or compendium of recognized standing, ascertain the amount of excise tax by applying to the appraisal the rate of the tax under this chapter, and give the applicant a certificate showing the excise tax due under this chapter.

Sec. 46. RCW 15.76.165 and 1973 c 117 s 1 are each amended to read as follows:

Any county which owns or leases property from another governmental agency and provides such property for area or county and district agricultural fair purposes may apply to the director for special assistance in carrying out necessary capital improvements to such property and maintenance of the appurtenances thereto((~~, and~~)). Until December 31, 2004, in the event such property and capital improvements are leased to any organization conducting an agricultural fair pursuant to chapter 15.76 RCW and chapter 257 of the Laws of 1955, such leasehold and such leased property shall be exempt from real and personal property taxation.

NEW SECTION. Sec. 47. A new section is added to chapter 43.136 RCW to read as follows:

Tax preferences contained in the following statutes will terminate June 30, 2002, unless extended by law. These preferences, their termination, and necessary amendments to related statutes, are subject to the review procedures in this chapter:

(1) RCW 82.04.050 (2), (3), (6), and (7);

(2) RCW 82.12.010 (2) and (3);

(3) RCW 82.08.080;

(4) RCW 82.04.060;

(5) RCW 82.04.190(2);

(6) RCW 82.04.460(1);

(7) RCW 82.04.470;

(8) Sections 12, 13, 14, 15, and 16 of this act;

(9) RCW 82.12.035 and 82.12.040;

(10) RCW 82.12.060;

(11) RCW 82.14.020;

(12) RCW 82.04.255;

(13) RCW 82.08.0255(1);

(14) RCW 82.12.0256(1);

(15) RCW 82.36.230;

(16) RCW 82.36.020;

(17) RCW 82.38.080(3); and

(18) RCW 82.42.030.

NEW SECTION. Sec. 48. A new section is added to chapter 43.136 RCW to read as follows:

Tax preferences contained in the following statutes will terminate June 30, 2003, unless extended by law. These preferences, their termination, and necessary amendments to related statutes, are subject to the review procedures in this chapter:

(1) RCW 82.04.280(6);

(2) RCW 82.16.050 (6), (7), and (8);

(3) RCW 48.14.020(1);

(4) RCW 48.44.020(1);

(5) Section 31 of this act;

(6) RCW 43.52.460;

(7) RCW 82.04.120; and

(8) RCW 82.04.260.

NEW SECTION. Sec. 49. A new section is added to chapter 43.136 RCW to read as follows:

Tax preferences contained in the following statutes will terminate December 31, 2005, unless extended by law. These preferences, their termination, and necessary amendments to related statutes, are subject to the review procedures in this chapter:

(1) RCW 15.76.165;

(2) RCW 82.48.030;

(3) RCW 84.36.110(2);

(4) RCW 84.36.480;

(5) Section 39 of this act; and

(6) Section 40 of this act.

NEW SECTION. Sec. 50. A new section is added to chapter 43.136 RCW to read as follows:

(1) RCW 84.36.020(2);

(2) RCW 84.36.060(1);

(3) RCW 84.40.030(3);

(4) RCW 84.40.220;

(5) RCW 46.10.040;

(6) Section 44 of this act; and

(7) Section 45 of this act.

NEW SECTION. Sec. 51. A new section is added to chapter 43.136 RCW to read as follows:

These tax preferences, their termination, and necessary amendments to related statutes, are subject to the review procedures in this chapter. The preferences will terminate, unless extended by law:

(1) RCW 66.20.010(6).

NEW SECTION. Sec. 52. The following acts or parts of acts are each repealed:

(1) RCW 82.04.298 (Tax on qualified grocery distribution cooperatives) and 2001 1st sp.s. c 9 s 1;

(2) RCW 82.04.315 (Exemptions--International banking facilities) and 1982 c 95 s 7;

(3) RCW 82.04.317 (Exemptions--Motor vehicle sales by manufacturers at wholesale auctions to dealers) and 1997 c 4 s 1;

(4) RCW 82.04.322 (Exemptions--Health maintenance organization, health care service contractor, certified health plan) and 1993 c 492 s 303;

(5) RCW 82.04.324 (Exemptions--Blood, bone, or tissue bank--Exceptions) and 1995 2nd sp.s. c 9 s 3;

(6) RCW 82.04.327 (Exemptions--Adult family homes) and 1987 1st ex.s. c 4 s 1;

(7) RCW 82.04.331 (Exemptions--Wholesale sales to farmers of seed for planting, conditioning seed for planting owned by others) and 1998 c 170 s 2;

(8) RCW 82.04.332 (Exemptions--Buying and selling at wholesale wheat, oats, dry peas, dry beans, lentils, triticale, canola, corn, rye, and barley) and 1998 c 312 s 2;

(9) RCW 82.04.333 (Exemptions--Small harvesters) and 1990 c 141 s 1;

(10) RCW 82.04.337 (Exemptions--Amounts received by hop growers or dealers for processed hops shipped outside the state) and 1987 c 495 s 1;

(11) RCW 82.04.338 (Exemptions--Hop commodity commission or hop commodity board business) and 1998 c 200 s 1;

(12) RCW 82.04.339 (Exemptions--Day care provided by churches) and 1992 c 81 s 1;

(13) RCW 82.04.395 (Exemptions--Certain materials printed in school district and educational service district printing facilities) and 1979 ex.s. c 196 s 12;

(14) RCW 82.04.363 (Exemptions--Camp or conference center--Items sold or furnished by nonprofit organization) and 1997 c 388 s 1;

(15) RCW 82.04.3651 (Exemptions--Amounts received by nonprofit organizations for fund-raising activities) and 1999 c 358 s 3 & 1998 c 336 s 2;

(16) RCW 82.04.367 (Exemptions--Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans) and 1998 c 324 s 1 & 1987 c 433 s 1;

(17) RCW 82.04.368 (Exemptions--Nonprofit organizations--Credit and debt services) and 1993 c 390 s 1;

(18) RCW 82.04.392 (Exemptions--Mortgage brokers' third-party provider services trust accounts) and 1998 c 311 s 3 & 1997 c 106 s 21;

(19) RCW 82.04.394 (Exemptions--Amounts received by property management company for on-site personnel) and 1998 c 338 s 2;

(20) RCW 82.04.399 (Exemptions--Sales of academic transcripts) and 1996 c 272 s 1;

(21) RCW 82.04.416 (Exemptions--Operation of state route No. 16) and 1998 c 179 s 3;

(22) RCW 82.04.4201 (Exemptions--Sales/leasebacks by regional transit authorities) and 2000 2nd sp.s. c 4 s 24;

(23) RCW 82.04.421 (Exemptions--Out-of-state membership sales in discount programs) and 1997 c 408 s 1;

(24) RCW 82.04.422 (Exemptions--Wholesale sales of motor vehicles) and 2001 c 258 s 1;

(25) RCW 82.04.4327 (Deductions--Artistic and cultural organizations--Income from business activities) and 1985 c 471 s 6;

(26) RCW 82.04.4329 (Deductions--Health insurance pool members--Deficit assessments) and 1987 c 431 s 24;

(27) RCW 82.04.433 (Deductions--Sales of fuel for consumption outside United States' waters by vessels in foreign commerce--Construction) and 1985 c 471 s 16;

(28) RCW 82.04.4331 (Deductions--Insurance claims for state health care coverage) and 1988 c 107 s 33;

(29) RCW 82.04.4332 (Deductions--Tuition fees of foreign degree-granting institutions) and 1993 c 181 s 10;

(30) RCW 82.04.4333 (Credit--Job training services--Approval) and 1996 c 1 s 4;

(31) RCW 82.04.434 (Credit--Public safety standards and testing) and 1991 c 13 s 1;

(32) RCW 82.04.44525 (Credit--New employment for international service activities in eligible areas--Designation of census tracts for eligibility--Records--Tax due upon ineligibility--Interest assessment--Information from employment security department) and 1998 c 313 s 2;

(33) RCW 82.04.4453 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 1, 1996 c 128 s 1, & 1994 c 270 s 2;

(34) RCW 82.04.4454 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 3, 1996 c 128 s 2, & 1994 c 270 s 3;

(35) RCW 82.08.02525 (Exemptions--Sale of copied public records by state and local agencies) and 1996 c 63 s 1;

(36) RCW 82.08.02535 (Exemptions--Sales and distribution of magazines or periodicals by subscription for fund-raising) and 1995 2nd sp.s. c 8 s 1;

(37) RCW 82.08.02537 (Exemptions--Sales of academic transcripts) and 1996 c 272 s 2;

(38) RCW 82.08.02565 (Exemptions--Sales of machinery and equipment for manufacturing, research and development, or a testing operation--Labor and services for installation--Exemption certificate--Rules) and 1999 c 211 s 5, 1999 c 211 s 3, & 1998 c 330 s 1;

(39) RCW 82.08.02566 (Exemptions--Sales of tangible personal property incorporated in prototype for parts, auxiliary equipment, and aircraft modification--Limitations on yearly exemption) and 1997 c 302 s 1 & 1996 c 247 s 4;

(40) RCW 82.08.02567 (Exemptions--Sales related to machinery and equipment used in generating electricity) and 2001 c 213 s 1, 1999 c 358 s 4, 1998 c 309 s 1, & 1996 c 166 s 1;

(41) RCW 82.08.02568 (Exemptions--Sales of carbon and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale) and 1996 c 170 s 1;

(42) RCW 82.08.02569 (Exemptions--Sales of tangible personal property related to a building or structure that is an integral part of a laser interferometer gravitational wave observatory) and 1996 c 113 s 1;

(43) RCW 82.08.02573 (Exemptions--Sales by a nonprofit organization for fund-raising activities) and 1998 c 336 s 3;

(44) RCW 82.08.026 (Exemptions--Sales of natural or manufactured gas) and 1994 c 124 s 8 & 1989 c 384 s 4;

(45) RCW 82.08.02665 (Exemptions--Sales of watercraft, vessels to residents of foreign countries) and 1999 c 358 s 6 & 1993 c 119 s 1;

(46) RCW 82.08.02745 (Exemptions--Charges for labor and services or sales of tangible personal property related to agricultural employee housing--Exemption certificate--Rules) and 1997 c 438 s 1 & 1996 c 117 s 1;

(47) RCW 82.08.02795 (Exemptions--Sales to free hospitals) and 1993 c 205 s 1;

(48) RCW 82.08.02805 (Exemptions--Sales to blood, bone, or tissue bank--Exceptions) and 1995 2nd sp.s. c 9 s 4;

(49) RCW 82.08.02806 (Exemptions--Sales of human blood, tissue, organs, bodies, or body parts for medical research and quality control testing) and 1996 c 141 s 1;

(50) RCW 82.08.02875 (Exemptions--Vehicle parking charges subject to tax at stadium and exhibition center) and 1997 c 220 s 203;

(51) RCW 82.08.02915 (Exemptions--Sales used by health or social welfare organizations for alternative housing for youth in crisis) and 1998 c 183 s 1, 1997 c 386 s 56, & 1995 c 346 s 1;

(52) RCW 82.08.02917 (Youth in crisis--Definition--Limited purpose) and 1995 c 346 s 3;

(53) RCW 82.08.0294 (Exemptions--Sales of feed for cultivating or raising fish for sale) and 1985 c 148 s 3;

(54) RCW 82.08.0295 (Exemptions--Lease amounts and repurchase amount for certain property under sale/leaseback agreement) and 1986 c 231 s 3;

(55) RCW 82.08.0296 (Exemptions--Sales of feed consumed by livestock at a public livestock market) and 1986 c 265 s 1;

(56) RCW 82.08.0297 (Exemptions--Sales of food purchased with food stamps) and 1998 c 79 s 18 & 1987 c 28 s 1;

(57) RCW 82.08.0298 (Exemptions--Sales of diesel fuel for use in operating watercraft in commercial deep sea fishing or commercial passenger fishing boat operations outside the state) and 1987 c 494 s 1;

(58) RCW 82.08.0299 (Exemptions--Emergency lodging for homeless persons--Conditions) and 1988 c 61 s 1;

(59) RCW 82.08.0311 (Exemptions--Sales of materials and supplies used in packing horticultural products) and 1988 c 68 s 1;

(60) RCW 82.08.0315 (Exemptions--Rentals or sales related to motion picture or video productions--Exceptions--Certificate) and 1997 c 61 s 1 & 1995 2nd sp.s. c 5 s 1;

(61) RCW 82.08.036 (Exemptions--Vehicle battery core deposits or credits--Replacement vehicle tire fees--"Core deposits or credits" defined) and 1989 c 431 s 45;

(62) RCW 82.08.810 (Exemptions--Air pollution control facilities at a thermal electric generation facility--Exceptions--Exemption certificate--Payments on cessation of operation) and 1997 c 368 s 2;

(63) RCW 82.08.811 (Exemptions--Coal used at coal-fired thermal electric generation facility--Application--Demonstration of progress in air pollution control--Notice of emissions violations-- Reapplication--Payments on cessation of operation) and 1997 c 368 s 4;

(64) RCW 82.08.820 (Exemptions--Remittance--Warehouse and grain elevators and distribution centers--Material-handling and racking equipment--Construction of warehouse or elevator--Information sheet--Rules--Records--Exceptions) and 1997 c 450 s 2;

(65) RCW 82.08.830 (Exemptions--Sales at camp or conference center by nonprofit organization) and 1997 c 388 s 2;

(66) RCW 82.08.832 (Exemptions--Sales of gun safes) and 1998 c 178 s 1;

(67) RCW 82.08.834 (Exemptions--Sales/leasebacks by regional transit authorities) and 2000 2nd sp.s. c 4 s 21;

(68) RCW 82.08.840 (Exemptions--Machinery, equipment, or structures that reduce field burning) and 2000 c 40 s 2;

(69) RCW 82.08.850 (Exemptions--Conifer seed) and 2001 c 129 s 2;

(70) RCW 82.08.860 (Exemptions--Landslide area) and 2001 c 113 s 1;

(71) RCW 82.08.870 (Exemptions--Motorcycles for training programs) and 2001 c 285 s 2;

(72) RCW 82.08.880 (Exemptions--Animal pharmaceuticals) and 2001 2nd sp.s. c 17 s 1;

(73) RCW 82.08.890 (Exemptions--Dairy nutrient management equipment and facilities) and 2001 2nd sp.s. c 18 s 2;

(74) RCW 82.08.900 (Exemptions--Anaerobic digesters) and 2001 2nd sp.s. c 18 s 4;

(75) RCW 82.08.910 (Exemptions--Propane or natural gas to heat chicken structures) and 2001 2nd sp.s. c 25 s 3;

(76) RCW 82.08.920 (Exemptions--Chicken bedding materials) and 2001 2nd sp.s. c 25 s 5;

(77) RCW 82.12.022 (Natural or manufactured gas--Use tax imposed--Exemption) and 1994 c 124 s 9 & 1989 c 384 s 3;

(78) RCW 82.12.02545 (Exemption--Use of naval aircraft training equipment transferred due to base closure) and 1995 c 128 s 1;

(79) RCW 82.12.02565 (Exemptions--Machinery and equipment used for manufacturing, research and development, or a testing operation) and 1999 c 211 s 6, 1998 c 330 s 2, 1996 c 247 s 3, & 1995 1st sp.s. c 3 s 3;

(80) RCW 82.12.02566 (Exemptions--Use of tangible personal property incorporated in prototype for aircraft parts, auxiliary equipment, and aircraft modification--Limitations on yearly exemption) and 1997 c 302 s 2 & 1996 c 247 s 5;

(81) RCW 82.12.02568 (Exemptions--Use of carbon and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale) and 1996 c 170 s 2;

(82) RCW 82.12.02569 (Exemptions--Use of tangible personal property related to a building or structure that is an integral part of a laser interferometer gravitational wave observatory) and 1996 c 113 s 2;

(83) RCW 82.12.02595 (Exemptions--Use of donated tangible personal property by nonprofit organization or governmental entity or for purpose donated--Use of related property) and 1998 c 182 s 1 & 1995 c 201 s 1;

(84) RCW 82.12.02685 (Exemptions--Use of tangible personal property related to agricultural employee housing) and 1997 c 438 s 2 & 1996 c 117 s 2;

(85) RCW 82.12.02745 (Exemptions--Use by free hospitals of certain items) and 1993 c 205 s 2;

(86) RCW 82.12.02747 (Exemptions--Use by blood, bone, or tissue bank--Exceptions) and 1995 2nd sp.s. c 9 s 5;

(87) RCW 82.12.02748 (Exemptions--Use of human blood, tissue, organs, bodies, or body parts for medical research or quality control testing) and 1996 c 141 s 2;

(88) RCW 82.12.02915 (Exemptions--Use of items by health or social welfare organizations for alternative housing for youth in crisis) and 1998 c 183 s 2, 1997 c 386 s 57, & 1995 c 346 s 2;

(89) RCW 82.12.02917 (Exemptions--Use of amusement and recreation services by nonprofit youth organization) and 1999 c 358 s 7;

(90) RCW 82.12.0294 (Exemptions--Use of feed for cultivating or raising fish for sale) and 1985 c 148 s 4;

(91) RCW 82.12.0295 (Exemptions--Lease amounts and repurchase amount for certain property under sale/leaseback agreement) and 1986 c 231 s 4;

(92) RCW 82.12.0296 (Exemptions--Use of feed consumed by livestock at a public livestock market) and 1986 c 265 s 2;

(93) RCW 82.12.0297 (Exemptions--Use of food purchased with food stamps) and 1998 c 79 s 19 & 1987 c 28 s 2;

(94) RCW 82.12.0298 (Exemptions--Use of diesel fuel in operating watercraft in commercial deep sea fishing or commercial passenger fishing boat operations outside the state) and 1987 c 494 s 2;

(95) RCW 82.12.0311 (Exemptions--Use of materials and supplies in packing horticultural products) and 1988 c 68 s 2;

(96) RCW 82.12.0315 (Exemptions--Rental or sales related to motion picture or video productions--Exceptions) and 1995 2nd sp.s. c 5 s 2;

(97) RCW 82.12.0345 (Exemptions--Use of newspapers) and 1994 c 124 s 11;

(98) RCW 82.12.0347 (Exemptions--Use of academic transcripts) and 1996 c 272 s 3;

(99) RCW 82.12.038 (Exemptions--Vehicle battery core deposits or credits--Replacement vehicle tire fees--"Core deposits or credits" defined) and 1989 c 431 s 46;

(100) RCW 82.12.800 (Exemptions--Uses of vessel, vessel's trailer by manufacturer) and 1997 c 293 s 1;

(101) RCW 82.12.801 (Exemptions--Uses of vessel, vessel's trailer by dealer) and 1997 c 293 s 2;

(102) RCW 82.12.802 (Vessels held in inventory by dealer or manufacturer--Tax on personal use--Documentation--Rules) and 1997 c 293 s 3;

(103) RCW 82.12.810 (Exemptions--Air pollution control facilities at a thermal electric generation facility--Exceptions--Payments on cessation of operation) and 1997 c 368 s 3;

(104) RCW 82.12.811 (Exemptions--Coal used at coal-fired thermal electric generation facility--Application--Demonstration of progress in air pollution control--Notice of emissions violations--Reapplication--Payments on cessation of operation) and 1997 c 368 s 6;

(105) RCW 82.12.820 (Exemptions--Warehouse and grain elevators and distribution centers) and 2000 c 103 s 9 & 1997 c 450 s 3;

(106) RCW 82.12.832 (Exemptions--Use of gun safes) and 1998 c 178 s 2;

(107) RCW 82.12.834 (Exemptions--Sales/leasebacks by regional transit authorities) and 2001 c 320 s 6 & 2000 2nd sp.s. c 4 s 22;

(108) RCW 82.12.840 (Exemptions--Machinery, equipment, or structures that reduce field burning) and 2000 c 40 s 3;

(109) RCW 82.12.845 (Use of motorcycles loaned to department of licensing) and 2001 c 121 s 1;

(110) RCW 82.12.850 (Exemptions--Conifer seed) and 2001 c 129 s 3;

(111) RCW 82.12.880 (Exemptions--Animal pharmaceuticals) and 2001 2nd sp.s. c 17 s 2;

(112) RCW 82.12.890 (Exemptions--Dairy nutrient management equipment and facilities) and 2001 2nd sp.s. c 18 s 3;

(113) RCW 82.12.900 (Exemptions--Anaerobic digesters) and 2001 2nd sp.s. c 18 s 5;

(114) RCW 82.12.910 (Exemptions--Propane or natural gas to heat chicken structures) and 2001 2nd sp.s. c 25 s 4;

(115) RCW 82.12.920 (Exemptions--Chicken bedding materials) and 2001 2nd sp.s. c 25 s 6;

(116) RCW 82.08.0259 (Exemptions--Sales of livestock) and 2001 c 118 s 4 & 1980 c 37 s 27;

(117) RCW 82.12.0261 (Exemptions--Use of livestock) and 2001 c 118 s 5 & 1980 c 37 s 60;

(118) RCW 82.08.0267 (Exemptions--Sales of poultry for producing poultry and poultry products for sale) and 1980 c 37 s 34;

(119) RCW 82.12.0262 (Exemptions--Use of poultry for producing poultry and poultry products for sale) and 1980 c 37 s 61;

(120) RCW 82.08.0272 (Exemptions--Sales of semen for artificial insemination of livestock) and 1980 c 37 s 38;

(121) RCW 82.12.0267 (Exemptions--Use of semen in artificial insemination of livestock) and 1980 c 37 s 66;

(122) RCW 82.08.0277 (Exemptions--Sales of pollen) and 1980 c 37 s 43;

(123) RCW 82.12.0273 (Exemptions--Use of pollen) and 1980 c 37 s 71;

(124) RCW 82.08.0257 (Exemptions--Auction sales of tangible personal property used in farming) and 1980 c 37 s 25;

(125) RCW 82.12.0258 (Exemptions--Use of tangible personal property previously used in farming and purchased from farmer at auction) and 1980 c 37 s 58;

(126) RCW 82.12.0265 (Exemptions--Use by bailee of tangible personal property consumed in research, development, etc., activities) and 1980 c 37 s 64;

(127) RCW 82.08.0276 (Exemptions--Sales of wearing apparel for use only as a sample for display for sale) and 1980 c 37 s 42;

(128) RCW 82.12.0271 (Exemptions--Use of wearing apparel only as a sample for display for sale) and 1980 c 37 s 69;

(129) RCW 82.08.0253 (Exemptions--Sale and distribution of newspapers) and 1980 c 37 s 21;

(130) RCW 82.08.0282 (Exemptions--Sales of returnable containers for beverages and foods) and 1980 c 37 s 47;

(131) RCW 82.08.031 (Exemptions--Sales to artistic or cultural organizations of certain objects acquired for exhibition or presentation) and 1981 c 140 s 4; and

(132) RCW 82.12.031 (Exemptions--Use by artistic or cultural organizations of certain objects) and 1981 c 140 s 5.

NEW SECTION. Sec. 53. The following acts or parts of acts are each repealed:

(1) RCW 48.32.145 (Credit against premium tax for assessments paid pursuant to RCW 48.32.060(1)(c)) and 1997 c 300 s 1, 1993 sp.s. c 25 s 901, 1977 ex.s. c 183 s 1, & 1975-'76 2nd ex.s. c 109 s 11;

(2) RCW 82.04.330 (Exemptions--Sales of agricultural products) and 2001 c 118 s 3, 1993 sp.s. c 25 s 305, 1988 c 253 s 2, & 1987 c 23 s 4;

(3) RCW 82.04.335 (Exemptions--Agricultural fairs) and 1965 ex.s. c 145 s 1;

(4) RCW 82.04.410 (Exemptions--Hatching eggs and poultry) and 1967 ex.s. c 149 s 15 & 1961 c 15 s 82.04.410;

(5) RCW 82.04.4281 (Deductions--Investments--Dividends from subsidiary corporations) and 1980 c 37 s 2;

(6) RCW 82.04.4287 (Deductions--Compensation for receiving, washing, etc., horticultural products for person exempt under RCW 82.04.330--Materials and supplies used) and 1980 c 37 s 8;

(7) RCW 82.04.4292 (Deductions--Interest on investments or loans secured by mortgages or deeds of trust) and 1980 c 37 s 12;

(8) RCW 82.04.4293 (Deductions--Interest on obligations of the state, its political subdivisions, and municipal corporations) and 1980 c 37 s 13;

(9) RCW 82.04.4294 (Deductions--Interest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives) and 1980 c 37 s 14;

(10) RCW 82.04.4298 (Deductions--Repair, maintenance, replacement, etc., of residential structures and commonly held property--Eligible organizations) and 1980 c 37 s 18;

(11) RCW 82.04.4322 (Deductions--Artistic or cultural organization‑-Compensation from United States, state, etc., for artistic or cultural exhibitions, performances, or programs) and 1981 c 140 s 1;

(12) RCW 82.04.4324 (Deductions--Artistic or cultural organization‑-Deduction for tax under RCW 82.04.240--Value of articles for use in displaying art objects or presenting artistic or cultural exhibitions, performances, or programs) and 1981 c 140 s 2;

(13) RCW 82.04.4326 (Deductions--Artistic or cultural organizations--Tuition charges for attending artistic or cultural education programs) and 1981 c 140 s 3;

(14) RCW 82.16.055 (Deductions relating to energy conservation or production from renewable resources) and 1980 c 149 s 3;

(15) RCW 82.29A.135 (Exemption for leasehold interests in land, buildings, machinery, etc., used to manufacture alcohol fuel--Exceptions--Limitations--Claims--Administrative rules) and 1985 c 371 s 3 & 1980 c 157 s 2;

(16) RCW 82.35.050 (Credit against taxes--Conditions--Amount--Limitations) and 1982 1st ex.s. c 2 s 1 & 1979 ex.s. c 191 s 5;

(17) RCW 84.36.080 (Certain ships and vessels) and 2000 c 103 s 24, 1998 c 335 s 5, 1986 c 229 s 1, 1983 2nd ex.s. c 3 s 51, 1983 c 7 s 23, & 1961 c 15 s 84.36.080; and

(18) RCW 84.36.105 (Cargo containers used in ocean commerce) and 1975 1st ex.s. c 20 s 1.

NEW SECTION. Sec. 54. The following acts or parts of acts are each repealed:

(1) RCW 84.36.030 (Property used for character building, benevolent, protective or rehabilitative social services--Camp facilities--Veteran or relief organization owned property--Property of nonprofit organizations that issue debt for student loans or that are guarantee agencies) and 1993 c 327 s 2, 1990 c 283 s 6, 1987 c 433 s 2, 1984 c 220 s 1, 1983 1st ex.s. c 25 s 1, & 1973 2nd ex.s. c 40 s 2;

(2) RCW 84.36.040 (Nonprofit day care centers, libraries, orphanages, homes or hospitals for the sick or infirm, outpatient dialysis facilities) and 2001 c 126 s 1, 1989 c 379 s 1, 1987 c 31 s 1, 1984 c 220 s 2, 1973 2nd ex.s. c 40 s 3, 1973 1st ex.s. c 154 s 119, 1969 ex.s. c 245 s 1, & 1961 c 15 s 84.36.040;

(3) RCW 84.36.050 (Schools and colleges) and 2001 c 126 s 2, 1984 c 220 s 5, 1973 2nd ex.s. c 40 s 4, 1971 ex.s. c 206 s 2, 1970 ex.s. c 55 s 1, & 1961 c 15 s 84.36.050;

(4) RCW 84.36.070 (Intangible personal property--Appraisal) and 1997 c 181 s 1, 1974 ex.s. c 118 s 1, & 1961 c 15 s 84.36.070;

(5) RCW 84.36.090 (Exemption for other ships and vessels) and 1983 c 7 s 24 & 1961 c 15 s 84.36.090;

(6) RCW 84.36.400 (Improvements to single family dwellings) and 1972 ex.s. c 125 s 3;

(7) RCW 84.36.015 (Property valued at less than five hundred dollars--Exceptions) and 1997 c 244 s 1;

(8) RCW 84.36.042 (Nonprofit organization, corporation, or association property used to provide housing for persons with developmental disabilities) and 1998 c 202 s 1;

(9) RCW 84.36.046 (Nonprofit cancer clinic or center) and 1997 c 143 s 1;

(10) RCW 84.36.255 (Improvements to benefit fish and wildlife habitat, water quality, and water quantity--Cooperative assistance to landowners--Certification of best management practice--Limitation--Landowner claim and certification) and 1997 c 295 s 2;

(11) RCW 84.36.487 (Air pollution control equipment in thermal electric generation facilities--Records--Payments on cessation of operation) and 1997 c 368 s 11;

(12) RCW 84.36.510 (Mobile homes in dealer's inventory) and 1985 c 395 s 7;

(13) RCW 84.36.550 (Nonprofit organizations--Property used for solicitation or collection of gifts, donations, or grants) and 1993 c 79 s 1;

(14) RCW 84.36.560 (Nonprofit organizations that provide rental housing or used space to very low-income households) and 2001 1st sp.s. c 7 s 1 & 1999 c 203 s 1;

(15) RCW 84.36.570 (Nonprofit organizations--Property used for agricultural research and education programs) and 1999 c 139 s 1;

(16) RCW 84.36.595 (Motor vehicles, travel trailers, and campers) and 2000 c 136 s 1;

(17) RCW 84.36.600 (Computer software) and 1991 sp.s. c 29 s 3;

(18) RCW 84.36.605 (Sales/leasebacks by regional transit authorities) and 2000 2nd sp.s. c 4 s 27; and

(19) RCW 84.36.630 (Farming machinery and equipment) and 2001 2nd sp.s. c 24 s 1.

NEW SECTION. Sec. 55. (1) Section 52 of this act takes effect July 1, 2002.

(2) Section 53 of this act takes effect July 1, 2003.

(3) Section 54 of this act takes effect July 1, 2005.