BILL REQ. #:  S-0377.1 

Read first time 01/08/2007.   Referred to Committee on Ways & Means.

     AN ACT Relating to a sales and use tax exemption for recovered wood waste boiler equipment used in steam production; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective date; and declaring an emergency.

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) The tax levied by RCW 82.08.020 shall not apply to:
     (a) Sales of recovered wood waste boiler equipment used primarily in the production or generation of steam for sale to be used in its original state primarily for: (i) Sterilizing tangible personal property; (ii) heating water or other tangible personal property; and (iii) heating structures;
     (b) Sales of repair parts and replacement parts for recovered wood waste boiler equipment described in (a) of this subsection; or
     (c) Sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving recovered wood waste boiler equipment described in (a) of this subsection.
     (2) A person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section. This exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.
     (3) The definitions in this subsection (3) apply throughout this section, unless the context clearly requires otherwise.
     (a) "Recovered wood waste" means discarded wood, such as wood from pallets and crate materials, shredded wood waste from land clearing, saw dust and wood trimmings from cabinet shops, and wood waste from saw mills.
     (b) "Recovered wood waste boiler equipment" means recovered wood waste-fired boilers; recovered wood waste storage silos located on the site of a recovered wood waste-fired boiler plant; indoor covered conveyers to transport recovered wood waste to a recovered wood waste-fired boiler; and recovered wood waste-fired boiler plant emissions control equipment, including multicyclone dust collectors and electrostatic precipitators.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply in respect to the use of:
     (a) Recovered wood waste boiler equipment used primarily in the production or generation of steam for sale to be used in its original state primarily for: (i) Sterilizing tangible personal property; (ii) heating water or other tangible personal property; and (iii) heating structures;
     (b) Repair parts and replacement parts for recovered wood waste boiler equipment described in (a) of this subsection; or
     (c) Labor and services rendered in respect to installing, repairing, cleaning, altering, or improving recovered wood waste boiler equipment described in (a) of this subsection.
     (2) For the purposes of this section, the definitions in section 1 of this act apply.

NEW SECTION.  Sec. 3   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, 2007.