BILL REQ. #:  H-0411.1 

Read first time 01/15/2007.   Referred to Committee on Finance.

     AN ACT Relating to a sales tax remittance for certain qualifying individuals; amending RCW 82.03.190 and 82.32.160; adding a new section to chapter 82.08 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) An eligible person shall receive an annual sales tax exemption from the state sales tax in the form of a remittance in accordance with the terms of this section.
     (2) A claim for exemption under this section shall be made and filed at any time during the year upon forms prescribed and furnished by the department. The exemption under this section may not be granted more than once every calendar year. An applicant must file an application every year to receive the exemption. If the department finds that the applicant meets the requirements of this section the department shall issue a check or warrant payable to the eligible person. The department must determine eligibility under this section within four weeks from the time an applicant files a claim for exemption under this section. The remittance shall equal four hundred fifty dollars. If the department finds that the applicant does not meet the requirements of this section, the exemption shall be denied, but is subject to appeal as follows:
     (a) The person must first petition for a conference with the department as provided in RCW 82.32.160.
     (b) If the person receives a denial of a petition or unfavorable notice of determination under (a) of this subsection, the person may appeal to the board of tax appeals as provided under RCW 82.03.190.
     (3) The exemption authorized under this section is not available to an eligible person if another person residing at the same residence of the eligible person has received an exemption under this section for the same calendar year.
     (4) The department shall adjust the amount of the exemption under this section by inflation beginning on January 1, 2009, and every January 1st thereafter. "Inflation" means the percentage change in the consumer price index for the United States, western region, for each fiscal year as published by the federal bureau of labor statistics.
     (5) The department may adopt any rules necessary to properly administer this section.
     (6) For the purposes of this section, "eligible person" means a person who: (a) Is a resident of this state; (b) has a combined disposable income, as defined in RCW 84.36.383 that is less than thirty-five thousand dollars; and (c) is at least sixty-five years old in the year in which a claim for exemption is first filed under this section.

Sec. 2   RCW 82.03.190 and 1998 c 54 s 2 are each amended to read as follows:
     Any person having received notice of a denial of a petition or a notice of determination made under RCW 82.32.160, 82.32.170, 82.34.110, ((or)) 82.49.060, or section 1 of this act may appeal by filing in accordance with RCW 1.12.070 a notice of appeal with the board of tax appeals within thirty days after the mailing of the notice of such denial or determination. In the notice of appeal the taxpayer shall set forth the amount of the tax which the taxpayer contends should be reduced or refunded and the reasons for such reduction or refund, in accordance with rules of practice and procedure prescribed by the board. However, if the notice of appeal relates to an application made to the department under chapter 82.34 RCW, the taxpayer shall set forth the amount to which the taxpayer claims the credit or exemption should apply, and the grounds for such contention, in accordance with rules of practice and procedure prescribed by the board. The board shall transmit a copy of the notice of appeal to the department and all other named parties within thirty days of its receipt by the board. If the taxpayer intends that the hearing before the board be held pursuant to the administrative procedure act (chapter 34.05 RCW), the notice of appeal shall also so state. In the event that the notice of appeal does not so state, the department may, within thirty days from the date of its receipt of the notice of appeal, file with the board notice of its intention that the hearing be held pursuant to the administrative procedure act.

Sec. 3   RCW 82.32.160 and 1989 c 378 s 22 are each amended to read as follows:
     (1) Any person having been issued a notice of additional taxes, delinquent taxes, interest, or penalties assessed by the department, may within thirty days after the issuance of the original notice of the amount thereof or within the period covered by any extension of the due date thereof granted by the department petition the department in writing for a correction of the amount of the assessment, and a conference for examination and review of the assessment. The petition shall set forth the reasons why the correction should be granted and the amount of the tax, interest, or penalties, which the petitioner believes to be due. The department shall promptly consider the petition and may grant or deny it. If denied, the petitioner shall be notified by mail thereof forthwith. If a conference is granted, the department shall fix the time and place therefor and notify the petitioner thereof by mail. After the conference the department may make such determination as may appear to it to be just and lawful and shall mail a copy of its determination to the petitioner. If no such petition is filed within the thirty-day period the assessment covered by the notice shall become final.
     (2) The procedures provided for ((herein)) in subsection (1) of this section shall apply also to:
     (a) A notice denying, in whole or in part, an application for a pollution control tax exemption and credit certificate, with such modifications to such procedures established by departmental rules and regulations as may be necessary to accommodate a claim for exemption or credit;
     (b) A determination that an applicant is not eligible for the remittance under section 1 of this act.

NEW SECTION.  Sec. 4   This act takes effect January 1, 2008.