BILL REQ. #:  H-0512.1 

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; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 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 publicly owned zoological facilities in Washington, which are operated by a nonprofit organization, 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 publicly owned zoological facilities. The legislature intends to provide certain excise tax relief to such publicly owned zoological facilities that are operated by nonprofit organizations 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 publicly owned facility operated by a nonprofit organization, exclusively for the purpose of providing zoological exhibitions, presentations, performances, or education programs. The facility must be operated by a not-for-profit corporation under chapter 24.03 RCW.
     (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 publicly owned zoological facility operated by a nonprofit organization 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.

NEW SECTION.  Sec. 3   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 sales to zoological facilities of objects that are acquired for the purpose of exhibition or presentation if the objects are to be used in displaying or presenting zoological exhibitions, presentations, performances, or education programs. For the purposes of this section, a "zoological facility" is defined as provided in section 2 of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.12 RCW to read as follows:
     The provisions of this chapter do not apply in respect to the use by zoological facilities of objects that are acquired for the purpose of zoological exhibitions, presentations, or performances, if the objects are to be used in displaying zoological exhibitions, presentations, or performances, or in education programs. For the purposes of this section, a "zoological facility" is defined as provided in section 2 of this act.