BILL REQ. #:  H-5603.1 

READ FIRST TIME 02/12/08.   

     AN ACT Relating to providing tax relief for property damaged as a result of a natural disaster; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; providing expiration dates; and declaring an emergency.

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

NEW SECTION.  Sec. 1   It is the intent of the legislature to determine how to best provide a temporary sales and use tax exemption on all purchases by individuals who suffered property damage in the flood, but who have already paid for the repair, replacement, or reconstruction of the property.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of tangible personal property and labor and services used for constructing, repairing, decorating, or rebuilding a residence or associated structures that was owned and occupied by an eligible person as a principal place of residence during calendar year 2007, when the construction, repair, decorating, or rebuilding is as a result of flood damage occurring during December 2007.
     (2) For the purposes of this section, the following definitions and restrictions apply:
     (a) "Associated structures" includes, but is not limited to, outbuildings, barns, storage sheds, or other structures that serve the principal place of residence.
     (b) "Eligible person" means a person residing in a county designated by the president of the United States as a disaster area and is eligible to receive individual assistance from the federal emergency management agency.
     (c) The terms "residence," "owned," and "occupied" have meanings consistent with their meanings in RCW 84.36.379 through 84.36.389.
     (d) The exemption under this section is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The department must immediately issue an exemption certificate to all eligible persons that have already applied for and received individual assistance from the federal emergency management agency.
     (e) The total amount of the exemption for an eligible person may not exceed two hundred thousand dollars of tangible personal property and labor and services.
     (3) This section expires June 30, 2009.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of tangible personal property and labor and services for constructing, repairing, decorating, or rebuilding a residence that was owned and occupied by an eligible person as a principal place of residence during calendar year 2007, when the construction, repair, decorating, or rebuilding is as a result of flood damage occurring during December 2007.
     (2) The definitions and restrictions in section 2 of this act apply to this section.
     (3) This section expires June 30, 2009.

NEW SECTION.  Sec. 4   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 immediately.