Read first time 01/11/2007.   Referred to Committee on Finance.

     AN ACT Relating to the excise taxation of zoos; adding a new section to chapter 82.04 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that zoological facilities in Washington serve a public purpose by providing educational and recreational opportunities for Washington citizens and spurring economic development in the state. The legislature also finds that private funds are critical to the survival of zoological facilities. The legislature intends to provide certain excise tax relief to such zoological facilities in order to further their public purpose and stimulate economic development.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.04 RCW to read as follows:
     (1) For the purposes of this section, the term "zoological facility" means a facility accredited by the association of zoos and aquariums or a nonprofit facility operating for the purpose of conserving endangered or threatened species and operated exclusively for the purpose of providing zoological exhibitions, presentations, performances, or education programs.
     (2) In computing tax there may be deducted from the measure of tax by persons subject to payment of the tax on manufacturing under RCW 82.04.240 the value of articles to the extent manufacturing activities are undertaken by a zoological facility accredited by the association of zoos and aquariums or a nonprofit facility operating for the purpose of conserving endangered or threatened species solely for the purpose of manufacturing articles for use by the zoological facility in displaying or presenting zoological exhibitions, presentations, performances, or education programs.
     (3) In computing tax there may be deducted from the measure of tax those amounts received:
     (a) By a zoological facility, which represents income derived from business activities conducted by the facility; or
     (b) From the United States or any instrumentality thereof or from the state of Washington or any municipal corporation or subdivision thereof as compensation for, or to support zoological exhibitions, presentations, performances, or education programs provided by a zoological facility.