AN
ACT Relating to simplifying excise tax application and administration; amending
RCW 11.02.005, 82.04.2635, 82.04.2907, 82.08.0287, 82.12.0282, 82.12.834,
82.14.055, 82.27.020, 82.32.410, 82.32.430, 82.62.010, 82.62.030, 82.62.050,
83.100.020, and 84.33.200; adding a new section to chapter 82.16 RCW; adding a
new section to chapter 84.33 RCW; adding a new section to chapter 82.04 RCW;
creating new sections; prescribing penalties; providing an effective date;
providing expiration dates; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
11.02.005 and 2000 c 130 s 1 are each amended to read as follows:
When
used in this title, unless otherwise required from the context:
(1)
"Personal representative" includes executor, administrator, special
administrator, and guardian or limited guardian and special representative.
(2)
"Net estate" refers to the real and personal property of a decedent
exclusive of homestead rights, exempt property, the family allowance and
enforceable claims against, and debts of, the deceased or the estate.
(3)
"Representation" refers to a method of determining distribution in
which the takers are in unequal degrees of kinship with respect to the
intestate, and is accomplished as follows: After first determining who, of
those entitled to share in the estate, are in the nearest degree of kinship,
the estate is divided into equal shares, the number of shares being the sum of
the number of persons who survive the intestate who are in the nearest degree
of kinship and the number of persons in the same degree of kinship who died
before the intestate but who left issue surviving the intestate; each share of
a deceased person in the nearest degree shall be divided among those of the
deceased person's issue who survive the intestate and have no ancestor then
living who is in the line of relationship between them and the intestate, those
more remote in degree taking together the share which their ancestor would have
taken had he or she survived the intestate. Posthumous children are considered
as living at the death of their parent.
(4)
"Issue" includes all the lawful lineal descendants of the ancestor
and all lawfully adopted children.
(5)
"Degree of kinship" means the degree of kinship as computed according
to the rules of the civil law; that is, by counting upward from the intestate
to the nearest common ancestor and then downward to the relative, the degree of
kinship being the sum of these two counts.
(6)
"Heirs" denotes those persons, including the surviving spouse, who
are entitled under the statutes of intestate succession to the real and
personal property of a decedent on the decedent's death intestate.
(7)
"Real estate" includes, except as otherwise specifically provided
herein, all lands, tenements, and hereditaments, and all rights thereto, and
all interest therein possessed and claimed in fee simple, or for the life of a
third person.
(8)
"Will" means an instrument validly executed as required by RCW
11.12.020.
(9)
"Codicil" means a will that modifies or partially revokes an existing
earlier will. A codicil need not refer to or be attached to the earlier will.
(10)
"Guardian" or "limited guardian" means a personal
representative of the person or estate of an incompetent or disabled person as
defined in RCW 11.88.010 and the term may be used in lieu of "personal
representative" wherever required by context.
(11)
"Administrator" means a personal representative of the estate of a
decedent and the term may be used in lieu of "personal
representative" wherever required by context.
(12)
"Executor" means a personal representative of the estate of a
decedent appointed by will and the term may be used in lieu of "personal
representative" wherever required by context.
(13)
"Special administrator" means a personal representative of the estate
of a decedent appointed for limited purposes and the term may be used in lieu
of "personal representative" wherever required by context.
(14)
"Trustee" means an original, added, or successor trustee and includes
the state, or any agency thereof, when it is acting as the trustee of a trust
to which chapter 11.98 RCW applies.
(15)
"Nonprobate asset" means those rights and interests of a person
having beneficial ownership of an asset that pass on the person's death under a
written instrument or arrangement other than the person's will.
"Nonprobate asset" includes, but is not limited to, a right or
interest passing under a joint tenancy with right of survivorship, joint bank
account with right of survivorship, payable on death or trust bank account,
transfer on death security or security account, deed or conveyance if
possession has been postponed until the death of the person, trust of which the
person is grantor and that becomes effective or irrevocable only upon the
person's death, community property agreement, individual retirement account or
bond, or note or other contract the payment or performance of which is affected
by the death of the person. "Nonprobate asset" does not include: A
payable-on-death provision of a life insurance policy, annuity, or other
similar contract, or of an employee benefit plan; a right or interest passing
by descent and distribution under chapter 11.04 RCW; a right or interest if,
before death, the person has irrevocably transferred the right or interest, the
person has waived the power to transfer it or, in the case of contractual
arrangement, the person has waived the unilateral right to rescind or modify
the arrangement; or a right or interest held by the person solely in a
fiduciary capacity. For the definition of "nonprobate asset"
relating to revocation of a provision for a former spouse upon dissolution of
marriage or declaration of invalidity of marriage, RCW 11.07.010(5) applies.
For the definition of "nonprobate asset" relating to revocation of a
provision for a former spouse upon dissolution of marriage or declaration of
invalidity of marriage, see RCW 11.07.010(5). For the definition of
"nonprobate asset" relating to testamentary disposition of nonprobate
assets, see RCW 11.11.010(7).
(16)
"Internal Revenue Code" means the United States Internal Revenue Code
of 1986, as amended or renumbered ((on)) as of January 1, ((1999))
2001.
(17)
References to "section 2033A" of the Internal Revenue Code in wills,
trust agreements, powers of appointment, beneficiary designations, and other
instruments governed by or subject to this title shall be deemed to refer to
the comparable or corresponding provisions of section 2057 of the Internal
Revenue Code, as added by section 6006(b) of the Internal Revenue Service
Restructuring Act of 1998 (H.R. 2676, P.L. 105-206); and references to the
section 2033A "exclusion" shall be deemed to mean the section 2057
deduction.
Words
that import the singular number may also be applied to the plural of persons
and things.
Words
importing the masculine gender only may be extended to females also.
Sec.
2. RCW
82.04.2635 and 1998 c 308 s 3 are each amended to read as follows:
(1)
Upon every person engaging within this state in the business of environmental
remedial action, the amount of tax with respect to such business shall be equal
to the value of the gross income of the business multiplied by the rate 0.471
percent.
(2)
For purposes of this chapter, "environmental remedial action" means:
(a)
Those services related to the identification, investigation, or cleanup arising
out of the release or threatened release of hazardous substances that are
conducted under contract with the department of ecology or under an enforcement
order, agreed order, or consent decree executed by the department of ecology,
or those services, when evaluated as a whole, that are the substantial
equivalent of a department of ecology-conducted or supervised remedial action
under the model toxics control act, chapter 70.105D RCW; or
(b)
Those services related to the identification, investigation, or cleanup of a
facility that are conducted under contract with the United States environmental
protection agency or under an order or consent decree executed by the United
States environmental protection agency, or that are consistent with the
national contingency plan adopted under the comprehensive environmental
response compensation and liability act, 42 U.S.C. Sec. 9605 as it exists on
July 1, 1998, and those services are conducted at facilities that are included
on the national priorities list adopted under 42 U.S.C. Sec. 9605 as it exists
on July 1, 1998, or at facilities subject to a removal action authorized under
42 U.S.C. Sec. 9604 as it exists on July 1, 1998.
(3)
A site is eligible for environmental remedial action upon submittal, via
certified mail to the department of ecology and the department of revenue, of
the following:
(a)
A certification from the owner, the department of ecology, or the United States
environmental protection agency, containing the following information:
(i)
The location of the site, shown on a map and identified by parcel number or
numbers and street address;
(ii)
The name and address and daytime phone number of a contact person;
(iii)
A statement that the proposed environmental remedial actions will be conducted
by the department of ecology or its authorized contractor under chapter 70.105D
RCW or will be substantially equivalent to a department of ecology-conducted or
supervised remedial action under the model toxics control act, chapter 70.105D
RCW, or will be conducted by the United States environmental protection agency
or its authorized contractor or will be consistent with the national
contingency plan under 42 U.S.C. Sec. 9605 as it exists on July 1, 1998; and
(iv)
A description of the proposed environmental remedial actions to be taken; and
(b)(i)
A certification from a certified underground storage tank service supervisor as
authorized in chapter 90.76 RCW, from a professional engineer licensed in the
state of Washington, or from an environmental professional who subscribes to a
code of professional responsibility administered by a recognized organization
representing such professions containing the following information:
(A)
Confirmation that an environmental remedial action as defined in this section
is to be conducted at the site;
(B)
The location of the site, shown on a map and identified by parcel number or
numbers and street address, and the approximate location of the proposed
environmental remedial action; and
(C)
The name, address, telephone number, and uniform business identifier of the
person providing the certification; or
(ii)
If applicable to the site, a copy of an enforcement order, agreed order, or
consent decree executed by the department of ecology or the United States
environmental protection agency.
(4)
The department of revenue shall respond in writing to the owner within thirty
days confirming receipt of the certification, or certifications, of
eligibility. Under RCW 82.32.330(3)(m), certification is subject to
disclosure and copies may be obtained from the department upon request. The
request shall be in writing and shall identify the site by county and parcel
number or numbers.
(5)
The owner shall provide a copy of the confirmation from the department of
revenue to each person who renders environmental remedial action at the site.
Each person who renders such action shall separately state the charges for
labor and services associated with the environmental remedial action.
(6)
Upon completion of the environmental remedial action, the owner shall submit to
the department of ecology a report documenting the environmental remedial
actions conducted at the site and documenting compliance with the requirements
of chapter 70.105D RCW.
(7)
In addition to any other penalties, a person who files a certificate with the
department of ecology or the department of revenue that contains falsehoods or
misrepresentations are subject to penalties authorized under chapter 18.43 or
90.76 RCW or RCW 9A.76.175. Also, a person who improperly reports the person's
tax class shall be assessed a penalty of fifty percent of the tax due, in
addition to other taxes or penalties, together with interest. The department
of revenue shall waive the penalty imposed under this section if it finds that
the falsehoods or misrepresentations or improper reporting of the tax
classification was due to circumstances beyond the control of the person.
(8)
This section expires July 1, 2003.
Sec.
3. RCW
82.04.2907 and 1998 c 331 s 1 are each amended to read as follows:
Upon
every person engaging within this state in the business of receiving income
from royalties or charges in the nature of royalties for the granting of
intangible rights, such as copyrights, licenses, patents, or franchise fees,
the amount of tax with respect to such business shall be equal to the gross
income from royalties or charges in the nature of royalties from the business
multiplied by the rate of 0.484 percent.
"Royalties" means compensation for the use of intangible
property, such as copyrights, patents, licenses, franchises, trademarks, trade
names, and similar items. It does not include compensation for any natural resource
or licensing of canned software to the end user.
Sec.
4. RCW
82.08.0287 and 1996 c 244 s 4 are each amended to read as follows:
The
tax imposed by this chapter shall not apply to sales of passenger motor
vehicles which are to be used for commuter ride sharing or ride sharing for
persons with special transportation needs, as defined in RCW 46.74.010, if the vehicles
are used as ride-sharing vehicles ((are exempt under RCW 82.44.015))
for thirty-six consecutive months beginning ((within thirty days of
application for exemption under this section. If used as a ride-sharing
vehicle for less than thirty-six consecutive months, the registered owner of
one of these vehicles shall notify the department of revenue upon termination
of primary use of the vehicle as a ride-sharing vehicle and is liable for the
tax imposed by this chapter)) from the date of purchase.
To
qualify for the tax exemption, those passenger motor vehicles with five or six
passengers, including the driver, used for commuter ride-sharing, must be
operated either within the state's eight largest counties that are required to
develop commute trip reduction plans as directed by chapter 70.94 RCW or in
other counties, or cities and towns within those counties, that elect to adopt
and implement a commute trip reduction plan. Additionally at least one of the
following conditions must apply: (1) The vehicle must be operated by a public
transportation agency for the general public; or (2) the vehicle must be used by
a major employer, as defined in RCW 70.94.524 as an element of its commute trip
reduction program for their employees; or (3) the vehicle must be owned and
operated by individual employees and must be registered either with the
employer as part of its commute trip reduction program or with a public
transportation agency serving the area where the employees live or work.
Individual employee owned and operated motor vehicles will require
certification that the vehicle is registered with a major employer or a public
transportation agency. Major employers who own and operate motor vehicles for
their employees must certify that the commuter ride-sharing arrangement
conforms to a carpool/vanpool element contained within their commute trip
reduction program.
Sec.
5. RCW
82.12.0282 and 1999 c 358 s 11 are each amended to read as follows:
The
tax imposed by this chapter shall not apply with respect to the use of
passenger motor vehicles used as ride-sharing vehicles by not less than five
persons, including the driver, with a gross vehicle weight not to exceed 10,000
pounds where the primary usage is for commuter ride-sharing, as defined in RCW
46.74.010, by not less than four persons including the driver when at least two
of those persons are confined to wheelchairs when riding, or passenger motor
vehicles where the primary usage is for ride-sharing for persons with special
transportation needs, as defined in RCW 46.74.010, if the vehicles are ((exempt
under RCW 82.44.015)) used as ride-sharing vehicles for thirty-six
consecutive months beginning ((within thirty days of application for
exemption under this section. If used as a ride-sharing vehicle for less than
thirty-six consecutive months, the registered owner of one of these vehicles
shall notify the department of revenue upon termination of primary use of the
vehicle as a ride-sharing vehicle and is liable for the tax imposed by this
chapter)) with the date of first use.
To
qualify for the tax exemption, those passenger motor vehicles with five or six
passengers, including the driver, used for commuter ride-sharing, must be
operated either within the state's eight largest counties that are required to
develop commute trip reduction plans as directed by chapter 70.94 RCW or in other
counties, or cities and towns within those counties, that elect to adopt and
implement a commute trip reduction plan. Additionally at least one of the
following conditions must apply: (1) The vehicle must be operated by a public
transportation agency for the general public; or (2) the vehicle must be used
by a major employer, as defined in RCW 70.94.524 as an element of its commute
trip reduction program for their employees; or (3) the vehicle must be owned
and operated by individual employees and must be registered either with the
employer as part of its commute trip reduction program or with a public
transportation agency serving the area where the employees live or work.
Individual employee owned and operated motor vehicles will require certification
that the vehicle is registered with a major employer or a public transportation
agency. Major employers who own and operate motor vehicles for their employees
must certify that the commuter ride-sharing arrangement conforms to a
carpool/vanpool element contained within their commute trip reduction program.
Sec.
6. RCW
82.12.834 and 2000 2nd sp.s. c 4 s 22 are each amended to read as follows:
This
chapter does not apply to the use of tangible personal property by a
seller/lessee ((to a lessor)) under a sale/leaseback agreement under RCW
81.112.300 in respect to tangible personal property used by the seller/lessee,
or to the ((purchase amount paid by the lessee)) use of tangible personal
property under an exercise of an option to purchase at the end of
the lease term, but only if the seller/lessee previously paid any tax otherwise
due under this chapter or chapter 82.08 RCW at the time of acquisition of the
tangible personal property.
Sec.
7. RCW
82.14.055 and 2000 c 104 s 2 are each amended to read as follows:
(1)
Except as provided in subsection (2) of this section, a local sales and
use tax change shall take effect (a) no sooner than seventy-five days after the
department receives notice of the change and (b) only on the first day of
January, April, July, or October.
(2)
In the case of a local sales and use tax that is a credit against the state
sales tax or use tax, a local sales and use tax change shall take effect (a) no
sooner than thirty days after the department receives notice of the change and
(b) only on the first day of a month.
(3)
For the purposes of this section, "local sales and use tax change"
means enactment or revision of local sales and use taxes under this chapter or
any other statute, including changes resulting from referendum or annexation.
NEW
SECTION. Sec. 8. A new
section is added to chapter 82.16 RCW to read as follows:
The business of collection, receipt, transfer, including
transportation between any locations, storage, or disposal of solid waste is
not subject to this chapter. Any such business activities are subject to
taxation under the classification in RCW 82.04.290(2). "Solid waste"
for purposes of this section is defined in RCW 82.18.010.
Sec.
9. RCW
82.27.020 and 1999 c 126 s 3 are each amended to read as follows:
(1)
In addition to all other taxes, licenses, or fees provided by law there is
established an excise tax on the commercial possession of enhanced food fish as
provided in this chapter. The tax is levied upon and shall be collected from
the owner of the enhanced food fish whose possession constitutes the taxable
event. The taxable event is the first possession in Washington by an owner after
the enhanced food fish has been landed. Processing and handling of
enhanced food fish by a person who is not the owner is not a taxable event to
the processor or handler.
(2)
A person in possession of enhanced food fish and liable to this tax may deduct
from the price paid to the person from which the enhanced food fish (except
oysters) are purchased an amount equal to a tax at one-half the rate levied in
this section upon these products.
(3)
The measure of the tax is the value of the enhanced food fish at the point of
landing.
(4)
The tax shall be equal to the measure of the tax multiplied by the rates for
enhanced food fish as follows:
(a)
Chinook, coho, and chum salmon and anadromous game fish: Five and twenty-five
one-hundredths percent;
(b)
Pink and sockeye salmon: Three and fifteen one-hundredths percent;
(c)
Other food fish and shellfish, except oysters, sea urchins, and sea cucumbers:
Two and one-tenth percent;
(d)
Oysters: Eight one-hundredths of one percent;
(e)
Sea urchins: Four and six-tenths percent through December 31, 2005, and two
and one-tenth percent thereafter; and
(f)
Sea cucumbers: Four and six-tenths percent through December 31, 2005, and two
and one-tenth percent thereafter.
(5)
An additional tax is imposed equal to the rate specified in RCW 82.02.030
multiplied by the tax payable under subsection (4) of this section.
Sec.
10. RCW
82.32.410 and 1997 c 409 s 211 are each amended to read as follows:
(1)
The director may designate certain written determinations as precedents.
(a)
By rule adopted pursuant to chapter 34.05 RCW, the director shall adopt
criteria which he or she shall use to decide whether a determination is
precedential. These criteria shall include, but not be limited to, whether the
determination clarifies an unsettled interpretation of Title 82 RCW or where
the determination modifies or clarifies an earlier interpretation.
(b)
Written determinations designated as precedents by the director shall be ((indexed
by subject matter. The determinations and indexes shall be)) made
available for public inspection and shall be published by the department.
(c)
The department shall disclose any written determination upon which it relies to
support any assessment of tax, interest, or penalty against such taxpayer,
after making the deletions provided by subsection (2) of this section.
(2)
Before making a written determination available for public inspection under
subsection (1) of this section, the department shall delete:
(a)
The names, addresses, and other identifying details of the person to whom the
written determination pertains and of another person identified in the written
determination; and
(b)
Information the disclosure of which is specifically prohibited by any statute
applicable to the department of revenue, and the department may also delete
other information exempted from disclosure by chapter 42.17 RCW or any other
statute applicable to the department of revenue.
Sec.
11. RCW
82.32.430 and 2000 c 104 s 4 are each amended to read as follows:
A
person who collects and remits sales or use tax to the department and who
calculates the tax using geographic information system technology
developed and provided by the department shall be held harmless and is not
liable for the difference in amount due nor subject to penalties or interest in
regards to rate calculation errors resulting from the proper use of such
technology.
Sec.
12. RCW
82.62.010 and 1999 sp.s. c 9 s 3 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Applicant" means a person applying for a tax credit under this
chapter.
(2)
"Department" means the department of revenue.
(3)
"Eligible area" means an area as defined in RCW 82.60.020.
(4)(a)
"Eligible business project" means manufacturing or research and
development activities which are conducted by an applicant in an eligible area
at a specific facility, provided the applicant's average full-time qualified
employment positions at the specific facility will be at least fifteen percent
greater in the year for which the credit is being sought than the applicant's
average full-time qualified employment positions at the same facility in the
immediately preceding year.
(b)
"Eligible business project" does not include any portion of a
business project undertaken by a light and power business as defined in RCW
82.16.010(5) or that portion of a business project creating qualified full-time
employment positions outside an eligible area ((or those recipients of a
sales tax deferral under chapter 82.61 RCW)).
(5)
"Manufacturing" means the same as defined in RCW 82.04.120.
"Manufacturing" also includes computer programming, the production of
computer software, and other computer-related services, and the activities
performed by research and development laboratories and commercial testing
laboratories.
(6)
"Person" has the meaning given in RCW 82.04.030.
(7)
"Qualified employment position" means a permanent full-time employee
employed in the eligible business project during the entire tax year.
(8)
"Tax year" means the calendar year in which taxes are due.
(9)
"Recipient" means a person receiving tax credits under this chapter.
(10)
"Research and development" means the development, refinement,
testing, marketing, and commercialization of a product, service, or process
before commercial sales have begun. As used in this subsection,
"commercial sales" excludes sales of prototypes or sales for market
testing if the total gross receipts from such sales of the product, service, or
process do not exceed one million dollars.
Sec.
13. RCW
82.62.030 and 1999 c 164 s 306 are each amended to read as follows:
(1)
A person shall be allowed a credit against the tax due under chapter 82.04 RCW
as provided in this section. The credit shall equal: (a) Four thousand
dollars for each qualified employment position with wages and benefits greater
than forty thousand dollars annually that is directly created in an eligible
business and (b) two thousand dollars for each qualified employment position
with wages and benefits less than or equal to forty thousand dollars annually
that is directly created in an eligible business.
(2)
The department shall keep a running total of all credits ((granted)) allowed
under this chapter during each fiscal year. The department shall not allow any
credits which would cause the ((tabulation)) total to exceed
seven million five hundred thousand dollars in any fiscal year. If all or part
of an application for credit is disallowed under this subsection, the
disallowed portion shall be carried over ((for approval)) to the
next fiscal year. However, the ((applicant's)) carryover into the next
fiscal year is only permitted ((if)) to the extent that the ((tabulation))
cap for the next fiscal year ((does)) is not ((exceed
the cap for that fiscal year as of the date on which the department has
disallowed the application)) exceeded.
(3)
No recipient may use the tax credits to decertify a union or to displace
existing jobs in any community in the state.
(4)
((No recipient may receive a tax credit on taxes which have not been paid
during the taxable year)) The credit may be used against any tax due
under chapter 82.04 RCW, and may be carried over until used. No refunds may be
granted for credits under this section.
Sec.
14. RCW
82.62.050 and 1986 c 116 s 18 are each amended to read as follows:
(1)
Each recipient shall submit a report to the department on ((December)) January
31st ((of each year)) following the year the application for credit
was allowed. The report shall contain information, as required by the
department, from which the department may determine whether the recipient is
meeting the requirements of this chapter. If the recipient fails to submit a
report or submits an inadequate report, the department may declare the amount
of taxes for which a credit has been used to be immediately assessed and
payable. The recipient must keep records, such as payroll records showing
the date of hire and employment security reports, to verify eligibility under
this section.
(2)
If, on the basis of a report under this section or other information, the
department finds that a business project is not eligible for tax credit under
this chapter for reasons other than failure to create the required number of
qualified employment positions, the amount of taxes for which a credit has been
used for the project shall be immediately due.
(3)
If, on the basis of a report under this section or other information, the
department finds that a business project has failed to create the specified
number of qualified employment positions, the department shall assess interest,
but not penalties, on the credited taxes for which a credit has been used for
the project. The interest shall be assessed at the rate provided for
delinquent excise taxes, shall be assessed retroactively to the date of the tax
credit, and shall accrue until the taxes for which a credit has been used are
repaid.
Sec.
15. RCW
83.100.020 and 1999 c 358 s 19 are each amended to read as follows:
As
used in this chapter:
(1)
"Decedent" means a deceased individual;
(2)
"Department" means the department of revenue, the director of that
department, or any employee of the department exercising authority lawfully
delegated to him by the director;
(3)
"Federal credit" means (a) for a transfer, the maximum amount of the
credit for state taxes allowed by section 2011 of the Internal Revenue Code;
and (b) for a generation-skipping transfer, the maximum amount of the credit
for state taxes allowed by section 2604 of the Internal Revenue Code;
(4)
"Federal return" means any tax return required by chapter 11 or 13 of
the Internal Revenue Code;
(5)
"Federal tax" means (a) for a transfer, a tax under chapter 11 of the
Internal Revenue Code; and (b) for a generation-skipping transfer, the tax
under chapter 13 of the Internal Revenue Code;
(6)
"Generation-skipping transfer" means a "generation-skipping
transfer" as defined and used in section 2611 of the Internal Revenue
Code;
(7)
"Gross estate" means "gross estate" as defined and used in
section 2031 of the Internal Revenue Code;
(8)
"Nonresident" means a decedent who was domiciled outside Washington
at his death;
(9)
"Person" means any individual, estate, trust, receiver, cooperative
association, club, corporation, company, firm, partnership, joint venture, syndicate,
or other entity and, to the extent permitted by law, any federal, state, or
other governmental unit or subdivision or agency, department, or
instrumentality thereof;
(10)
"Person required to file the federal return" means any person
required to file a return required by chapter 11 or 13 of the Internal Revenue
Code, such as the personal representative of an estate; or a transferor,
trustee, or beneficiary of a generation-skipping transfer; or a qualified heir
with respect to qualified real property, as defined and used in section
2032A(c) of the Internal Revenue Code;
(11)
"Property" means (a) for a transfer, property included in the gross
estate; and (b) for a generation-skipping transfer, all real and personal
property subject to the federal tax;
(12)
"Resident" means a decedent who was domiciled in Washington at time
of death;
(13)
"Transfer" means "transfer" as used in section 2001 of the
Internal Revenue Code, or a disposition or cessation of qualified use as
defined and used in section 2032A(c) of the Internal Revenue Code;
(14)
"Trust" means "trust" under Washington law and any
arrangement described in section 2652 of the Internal Revenue Code; and
(15)
"Internal Revenue Code" means, for the purposes of this chapter and
RCW 83.110.010, the United States Internal Revenue Code of 1986, as amended or
renumbered ((on)) as of January 1, ((1999)) 2001.
NEW
SECTION. Sec. 16. A
new section is added to chapter 84.33 RCW to read as follows:
(1)
A purchaser of privately owned timber in an amount in excess of two hundred
thousand board feet in a voluntary sale made in the ordinary course of business
shall, on or before the last day of the month following the purchase of the
timber, report the particulars of the purchase to the department.
(2)
The report required in subsection (1) of this section shall contain all
information relevant to the value of the timber purchased including, but not
limited to, the following, as applicable: Purchaser's name and address, sale
date, termination date in sale agreement, total sale price, total acreage
involved in the sale, net volume of timber purchased, legal description of the
area involved in the sale, road construction or improvements required or
completed, timber cruise data, and timber thinning data. A report may be
submitted in any reasonable form or, at the purchaser's option, by submitting
relevant excerpts of the timber sales contract. A purchaser may comply by
submitting the information in the following form:
Purchaser's
name:................................................
Purchaser's
address:.............................................
Sale date:.......................................................
Termination
date:................................................
Total sale
price:................................................
Total
acreage involved:..........................................
Net volume
of timber purchased:..................................
Legal
description of sale area:..................................
Property
improvements:...........................................
Timber
cruise data:..............................................
Timber
thinning data:............................................
(3) A
purchaser of privately owned timber involved in a purchase described in
subsection (1) of this section who fails to report a purchase as required may
be liable for a penalty of two hundred fifty dollars for each failure to
report, as determined by the department.
(4)
This section expires July 1, 2004.
Sec.
17. RCW
84.33.200 and 1998 c 245 s 170 are each amended to read as follows:
(1)
The legislature shall review the system of distribution and allocation of all
timber excise tax revenues in January 1975 and each year thereafter to provide
a uniform and equitable distribution and allocation of such revenues to the
state and local taxing districts.
(2)
In order to allow legislative review of the rules to be adopted by the
department of revenue establishing the stumpage values provided for in RCW
84.33.091, such rules shall be effective not less than ((sixty)) thirty
days after transmitting to the staffs of the senate and house ways and means
committees (or their successor committees) the same proposed rules as have been
previously filed with the office of the code reviser pursuant to RCW 34.05.320.
(3)
The department of revenue and the department of natural resources shall make
available to the revenue committees of the senate and house of representatives
of the state legislature information and data, as it may be available,
pertaining to the status of forest land grading throughout the state, the
collection of timber excise tax revenues, the distribution and allocation of
timber excise tax revenues to the state and local taxing districts, and any
other information as may be necessary for the proper legislative review and
implementation of the timber excise tax system, and in addition, the
departments shall provide an annual report of such matters in January of each
year to such committees.
NEW
SECTION. Sec. 18. The
legislature finds that the application of the business and occupation tax deduction
provided in RCW 82.04.4281 for investment income of persons other than those
engaging in banking, loan, security, or other financial businesses has been the
subject of disagreement between taxpayers and the state. Decisions of the
supreme court have provided some broad guidelines and principles for
interpretation of the deduction provided in RCW 82.04.4281, but these decisions
have not provided the certainty and clarity that is desired by taxpayers and
the state. Therefore, it is the intent of the legislature to delay change in
the manner or extent of taxation of the investment income until definitions or
standards can be developed and enacted by the legislature.
*NEW
SECTION. Sec. 19.
A new section is added to chapter 82.04 RCW to read as follows:
(1)
The department of revenue shall not assess nor impose business and occupation
tax on investment income of persons engaging in business activities of a
character that have not previously been determined by the department to be an
other financial business under RCW 82.04.4281 through:
(a)
A final decision of a court of record. However, this subsection shall not be
construed to deny the deduction to any person other than the specific taxpayer
covered in the court's decision;
(b)
Excise tax advisories published prior to January 1, 2001; or
(c)
Rulings or determinations issued by the department of revenue to a specific
taxpayer prior to January 1, 2001. However, this subsection shall not be
construed to deny the deduction to any person other than the specific taxpayer
covered in the ruling or determination.
(2)
Nothing in this act shall be construed to prohibit the department of revenue
from granting the deduction by means of revocation of previous determinations
set forth in subsection (1)(a), (b), or (c) of this section.
(3)
This section expires July 1, 2002.
*Sec. 19 was vetoed. See message at end of chapter.
NEW
SECTION. Sec. 20. The
department of revenue shall report to the fiscal committees of the legislature
by November 30, 2001, on the progress made in working with affected businesses
on potential amendments to RCW 82.04.4281 which would clarify the application
of RCW 82.04.4281 to other financial businesses.
NEW
SECTION. Sec. 21. The
code reviser shall place cross-reference sections to RCW 82.14.055 and
82.32.430 in chapters 67.28 and 67.40 RCW.
NEW
SECTION. Sec. 22. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect July 1, 2001.
