BILL REQ. #: Z-0101.4
| State of Washington | 60th Legislature | 2007 Regular Session |
Read first time 01/24/2007. Referred to Committee on Ways & Means.
AN ACT Relating to making changes of a technical nature to laws relating to taxes or tax programs, administered by the department of revenue; amending RCW 76.09.405, 82.04.250, 82.04.261, 82.04.294, 82.04.4281, 82.04.440, 82.04.4461, 82.04.4462, 82.04.530, 82.08.02745, 82.08.841, 82.12.0284, 82.12.841, 82.14B.020, 82.32.520, 82.32.545, 82.32.550, 82.32.555, 84.33.140, 84.34.108, 84.52.010, and 84.52.054; amending 2006 c 84 s 9 (uncodified); reenacting and amending RCW 82.04.050, 82.04.260, and 82.14B.030; reenacting RCW 82.32.600 and 82.32.600; creating a new section; repealing RCW 84.55.012 and 84.55.0121; repealing 2005 c 514 s 113, 2004 c 153 s 502, 2003 c 168 s 902, and 2002 c 67 s 18 (uncodified); repealing 2005 c 514 s 112 and 2003 c 168 s 503; providing an effective date; providing expiration dates; and providing a contingent expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 In July 2000, congress passed the mobile
telecommunications sourcing act (P.L. 106-252). The act addresses the
problem of determining the situs of a cellular telephone call for tax
purposes. In 2002, the legislature passed Senate Bill No. 6539
(chapter 67, Laws of 2002), which addressed the sourcing of mobile
telecommunications for state business and occupation tax, state and
local retail sales taxes, city utility taxes, and state and county
telephone access line taxes. Section 18, chapter 67, Laws of 2002
provided that the act is null and void if the federal mobile
telecommunications sourcing act is substantially impaired or limited as
a result of a court decision that is no longer subject to appeal. The
legislature finds that the contingent null and void clause in section
18, chapter 67, Laws of 2002 has resulted in the necessity of codifying
two versions of a number of statutes to incorporate contingent
expiration and effective dates. The legislature recognizes that this
adds complexity to the tax code and makes tax administration more
difficult. The legislature further finds that there is little or no
likelihood that the federal mobile telecommunications sourcing act will
be substantially impaired or limited as a result of a court decision.
Therefore, the legislature intends in section 2 of this act to simplify
Washington's tax code and tax administration by eliminating the
contingent null and void clause in section 18, chapter 67, Laws of
2002.
NEW SECTION. Sec. 2 The following acts or parts of acts are each
repealed:
(1) 2005 c 514 s 113, 2004 c 153 s 502, 2003 c 168 s 902, & 2002 c
67 s 18 (uncodified); and
(2) 2005 c 514 s 112 & 2003 c 168 s 503.
Sec. 3 RCW 76.09.405 and 2006 c 300 s 3 are each amended to read
as follows:
The forest and fish support account is hereby created in the state
treasury. Receipts from appropriations, the surcharge imposed under
RCW ((82.04.260(12))) 82.04.261, and other sources must be deposited
into the account. Expenditures from the account shall be used for
activities pursuant to the state's implementation of the forests and
fish report as defined in chapter 76.09 RCW and related activities,
including, but not limited to, adaptive management, monitoring, and
participation grants to tribes, state and local agencies, and not-for-profit public interest organizations. Expenditures from the account
may be made only after appropriation by the legislature.
Sec. 4 RCW 82.04.050 and 2005 c 515 s 2 and 2005 c 514 s 101 are
each reenacted and amended to read as follows:
(1) "Sale at retail" or "retail sale" means every sale of tangible
personal property (including articles produced, fabricated, or
imprinted) to all persons irrespective of the nature of their business
and including, among others, without limiting the scope hereof, persons
who install, repair, clean, alter, improve, construct, or decorate real
or personal property of or for consumers other than a sale to a person
who presents a resale certificate under RCW 82.04.470 and who:
(a) Purchases for the purpose of resale as tangible personal
property in the regular course of business without intervening use by
such person, but a purchase for the purpose of resale by a regional
transit authority under RCW 81.112.300 is not a sale for resale; or
(b) Installs, repairs, cleans, alters, imprints, improves,
constructs, or decorates real or personal property of or for consumers,
if such tangible personal property becomes an ingredient or component
of such real or personal property without intervening use by such
person; or
(c) Purchases for the purpose of consuming the property purchased
in producing for sale a new article of tangible personal property or
substance, of which such property becomes an ingredient or component or
is a chemical used in processing, when the primary purpose of such
chemical is to create a chemical reaction directly through contact with
an ingredient of a new article being produced for sale; or
(d) Purchases for the purpose of consuming the property purchased
in producing ferrosilicon which is subsequently used in producing
magnesium for sale, if the primary purpose of such property is to
create a chemical reaction directly through contact with an ingredient
of ferrosilicon; (([or])) or
(e) Purchases for the purpose of providing the property to
consumers as part of competitive telephone service, as defined in RCW
82.04.065. The term shall include every sale of tangible personal
property which is used or consumed or to be used or consumed in the
performance of any activity classified as a "sale at retail" or "retail
sale" even though such property is resold or utilized as provided in
(a), (b), (c), (d), or (e) of this subsection following such use. The
term also means every sale of tangible personal property to persons
engaged in any business which is taxable under RCW 82.04.280 (2) and
(7), 82.04.290, and 82.04.2908; or
(f) Purchases for the purpose of satisfying the person's
obligations under an extended warranty as defined in subsection (7) of
this section, if such tangible personal property replaces or becomes an
ingredient or component of property covered by the extended warranty
without intervening use by such person.
(2) The term "sale at retail" or "retail sale" shall include the
sale of or charge made for tangible personal property consumed and/or
for labor and services rendered in respect to the following:
(a) The installing, repairing, cleaning, altering, imprinting, or
improving of tangible personal property of or for consumers, including
charges made for the mere use of facilities in respect thereto, but
excluding charges made for the use of self-service laundry facilities,
and also excluding sales of laundry service to nonprofit health care
facilities, and excluding services rendered in respect to live animals,
birds and insects;
(b) The constructing, repairing, decorating, or improving of new or
existing buildings or other structures under, upon, or above real
property of or for consumers, including the installing or attaching of
any article of tangible personal property therein or thereto, whether
or not such personal property becomes a part of the realty by virtue of
installation, and shall also include the sale of services or charges
made for the clearing of land and the moving of earth excepting the
mere leveling of land used in commercial farming or agriculture;
(c) The ((charge for labor and services rendered in respect to))
constructing, repairing, or improving of any structure upon, above, or
under any real property owned by an owner who conveys the property by
title, possession, or any other means to the person performing such
construction, repair, or improvement for the purpose of performing such
construction, repair, or improvement and the property is then
reconveyed by title, possession, or any other means to the original
owner;
(d) The ((sale of or charge made for labor and services rendered in
respect to the)) cleaning, fumigating, razing, or moving of existing
buildings or structures, but shall not include the charge made for
janitorial services; and for purposes of this section the term
"janitorial services" shall mean those cleaning and caretaking services
ordinarily performed by commercial janitor service businesses
including, but not limited to, wall and window washing, floor cleaning
and waxing, and the cleaning in place of rugs, drapes and upholstery.
The term "janitorial services" does not include painting, papering,
repairing, furnace or septic tank cleaning, snow removal or
sandblasting;
(e) ((The sale of or charge made for labor and services rendered in
respect to)) Automobile towing and similar automotive transportation
services, but not in respect to those required to report and pay taxes
under chapter 82.16 RCW;
(f) The ((sale of and charge made for the)) furnishing of lodging
and all other services by a hotel, rooming house, tourist court, motel,
trailer camp, and the granting of any similar license to use real
property, as distinguished from the renting or leasing of real
property, and it shall be presumed that the occupancy of real property
for a continuous period of one month or more constitutes a rental or
lease of real property and not a mere license to use or enjoy the same.
For the purposes of this subsection, it shall be presumed that the sale
of and charge made for the furnishing of lodging for a continuous
period of one month or more to a person is a rental or lease of real
property and not a mere license to enjoy the same;
(g) ((The sale of or charge made for tangible personal property,
labor and services to)) Persons taxable under (a), (b), (c), (d), (e),
and (f) of this subsection when such sales or charges are for property,
labor and services which are used or consumed in whole or in part by
such persons in the performance of any activity defined as a "sale at
retail" or "retail sale" even though such property, labor and services
may be resold after such use or consumption. Nothing contained in this
subsection shall be construed to modify subsection (1) of this section
and nothing contained in subsection (1) of this section shall be
construed to modify this subsection.
(3) The term "sale at retail" or "retail sale" shall include the
sale of or charge made for personal, business, or professional services
including amounts designated as interest, rents, fees, admission, and
other service emoluments however designated, received by persons
engaging in the following business activities:
(a) Amusement and recreation services including but not limited to
golf, pool, billiards, skating, bowling, ski lifts and tows, day trips
for sightseeing purposes, and others, when provided to consumers;
(b) Abstract, title insurance, and escrow services;
(c) Credit bureau services;
(d) Automobile parking and storage garage services;
(e) Landscape maintenance and horticultural services but excluding
(i) horticultural services provided to farmers and (ii) pruning,
trimming, repairing, removing, and clearing of trees and brush near
electric transmission or distribution lines or equipment, if performed
by or at the direction of an electric utility;
(f) Service charges associated with tickets to professional
sporting events; and
(g) The following personal services: Physical fitness services,
tanning salon services, tattoo parlor services, steam bath services,
turkish bath services, escort services, and dating services.
(4)(a) The term shall also include:
(i) The renting or leasing of tangible personal property to
consumers; and
(ii) Providing tangible personal property along with an operator
for a fixed or indeterminate period of time. A consideration of this
is that the operator is necessary for the tangible personal property to
perform as designed. For the purpose of this subsection (4)(a)(ii), an
operator must do more than maintain, inspect, or set up the tangible
personal property.
(b) The term shall not include the renting or leasing of tangible
personal property where the lease or rental is for the purpose of
sublease or subrent.
(5) The term shall also include the providing of telephone service,
as defined in RCW 82.04.065, to consumers.
(6) The term shall also include the sale of prewritten computer
software other than a sale to a person who presents a resale
certificate under RCW 82.04.470, regardless of the method of delivery
to the end user, but shall not include custom software or the
customization of prewritten computer software.
(7) The term shall also include the sale of or charge made for an
extended warranty to a consumer. For purposes of this subsection,
"extended warranty" means an agreement for a specified duration to
perform the replacement or repair of tangible personal property at no
additional charge or a reduced charge for tangible personal property,
labor, or both, or to provide indemnification for the replacement or
repair of tangible personal property, based on the occurrence of
specified events. The term "extended warranty" does not include an
agreement, otherwise meeting the definition of extended warranty in
this subsection, if no separate charge is made for the agreement and
the value of the agreement is included in the sales price of the
tangible personal property covered by the agreement. For purposes of
this subsection, "sales price" has the same meaning as in RCW
82.08.010.
(8) The term shall not include the sale of or charge made for labor
and services rendered in respect to the building, repairing, or
improving of any street, place, road, highway, easement, right of way,
mass public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state or by the United States and which is
used or to be used primarily for foot or vehicular traffic including
mass transportation vehicles of any kind.
(9) The term shall also not include sales of chemical sprays or
washes to persons for the purpose of postharvest treatment of fruit for
the prevention of scald, fungus, mold, or decay, nor shall it include
sales of feed, seed, seedlings, fertilizer, agents for enhanced
pollination including insects such as bees, and spray materials to:
(a) Persons who participate in the federal conservation reserve
program, the environmental quality incentives program, the wetlands
reserve program, and the wildlife habitat incentives program, or their
successors administered by the United States department of agriculture;
(b) farmers for the purpose of producing for sale any agricultural
product; and (c) farmers acting under cooperative habitat development
or access contracts with an organization exempt from federal income tax
under 26 U.S.C. Sec. 501(c)(3) or the Washington state department of
fish and wildlife to produce or improve wildlife habitat on land that
the farmer owns or leases.
(10) The term shall not include the sale of or charge made for
labor and services rendered in respect to the constructing, repairing,
decorating, or improving of new or existing buildings or other
structures under, upon, or above real property of or for the United
States, any instrumentality thereof, or a county or city housing
authority created pursuant to chapter 35.82 RCW, including the
installing, or attaching of any article of tangible personal property
therein or thereto, whether or not such personal property becomes a
part of the realty by virtue of installation. Nor shall the term
include the sale of services or charges made for the clearing of land
and the moving of earth of or for the United States, any
instrumentality thereof, or a county or city housing authority. Nor
shall the term include the sale of services or charges made for
cleaning up for the United States, or its instrumentalities,
radioactive waste and other byproducts of weapons production and
nuclear research and development.
(11) The term shall not include the sale of or charge made for
labor, services, or tangible personal property pursuant to agreements
providing maintenance services for bus, rail, or rail fixed guideway
equipment when a regional transit authority is the recipient of the
labor, services, or tangible personal property, and a transit agency,
as defined in RCW 81.104.015, performs the labor or services.
Sec. 5 RCW 82.04.250 and 2003 2nd sp.s. c 1 s 2 are each amended
to read as follows:
(1) Upon every person ((except persons taxable under RCW 82.04.260
(5) or (13), 82.04.272, or subsection (2) of this section)) engaging
within this state in the business of making sales at retail, except
persons taxable as retailers under other provisions of this chapter, as
to such persons, the amount of tax with respect to such business shall
be equal to the gross proceeds of sales of the business, multiplied by
the rate of 0.471 percent.
(2) Upon every person engaging within this state in the business of
making sales at retail that are exempt from the tax imposed under
chapter 82.08 RCW by reason of RCW 82.08.0261, 82.08.0262, or
82.08.0263, except persons taxable under RCW 82.04.260(((13))) (11), as
to such persons, the amount of tax with respect to such business shall
be equal to the gross proceeds of sales of the business, multiplied by
the rate of 0.484 percent.
Sec. 6 RCW 82.04.260 and 2006 c 354 s 4 and 2006 c 300 s 1 are
each reenacted and amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola byproducts,
or sunflower seeds into sunflower oil; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
flour, pearl barley, oil, canola meal, or canola byproduct
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2012, seafood products ((which)) that remain
in a raw, raw frozen, or raw salted state at the completion of the
manufacturing by that person; or selling manufactured seafood products
that remain in a raw, raw frozen, or raw salted state at the completion
of the manufacturing, to purchasers who transport in the ordinary
course of business the goods out of this state; as to such persons the
amount of tax with respect to such business shall be equal to the value
of the products manufactured or the gross proceeds derived from such
sales, multiplied by the rate of 0.138 percent. Sellers must keep and
preserve records for the period required by RCW 82.32.070 establishing
that the goods were transported by the purchaser in the ordinary course
of business out of this state;
(c) Beginning July 1, 2012, dairy products that as of September 20,
2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135,
including byproducts from the manufacturing of the dairy products such
as whey and casein; or selling the same to purchasers who transport in
the ordinary course of business the goods out of state; as to such
persons the tax imposed shall be equal to the value of the products
manufactured or the gross proceeds derived from such sales multiplied
by the rate of 0.138 percent. Sellers must keep and preserve records
for the period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of business
out of this state;
(d) Beginning July 1, 2012, fruits or vegetables by canning,
preserving, freezing, processing, or dehydrating fresh fruits or
vegetables, or selling at wholesale fruits or vegetables manufactured
by the seller by canning, preserving, freezing, processing, or
dehydrating fresh fruits or vegetables and sold to purchasers who
transport in the ordinary course of business the goods out of this
state; as to such persons the amount of tax with respect to such
business shall be equal to the value of the products manufactured or
the gross proceeds derived from such sales multiplied by the rate of
0.138 percent. Sellers must keep and preserve records for the period
required by RCW 82.32.070 establishing that the goods were transported
by the purchaser in the ordinary course of business out of this state;
(e) Until July 1, 2009, alcohol fuel, biodiesel fuel, or biodiesel
feedstock, as those terms are defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business shall be equal
to the value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Alcohol fuel or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of alcohol fuel or wood
biomass fuel manufactured, multiplied by the rate of 0.138 percent.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed shall be equal to the gross proceeds derived
from such sales multiplied by the rate of 0.138 percent.
(5) Upon every person engaging within this state in the business of
acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities shall be equal to the
gross income derived from such activities multiplied by the rate of
0.275 percent.
(6) Upon every person engaging within this state in business as an
international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of
stevedoring and associated activities pertinent to the movement of
goods and commodities in waterborne interstate or foreign commerce; as
to such persons the amount of tax with respect to such business shall
be equal to the gross proceeds derived from such activities multiplied
by the rate of 0.275 percent. Persons subject to taxation under this
subsection shall be exempt from payment of taxes imposed by chapter
82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to
the conduct of goods and commodities in waterborne interstate or
foreign commerce are defined as all activities of a labor, service or
transportation nature whereby cargo may be loaded or unloaded to or
from vessels or barges, passing over, onto or under a wharf, pier, or
similar structure; cargo may be moved to a warehouse or similar holding
or storage yard or area to await further movement in import or export
or may move to a consolidation freight station and be stuffed,
unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for
delivery to its consignee. Specific activities included in this
definition are: Wharfage, handling, loading, unloading, moving of
cargo to a convenient place of delivery to the consignee or a
convenient place for further movement to export mode; documentation
services in connection with the receipt, delivery, checking, care,
custody and control of cargo required in the transfer of cargo;
imported automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not limited
to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(8) Upon every person engaging within this state in the business of
disposing of low-level waste, as defined in RCW 43.145.010; as to such
persons the amount of the tax with respect to such business shall be
equal to the gross income of the business, excluding any fees imposed
under chapter 43.200 RCW, multiplied by the rate of 3.3 percent.
If the gross income of the taxpayer is attributable to activities
both within and without this state, the gross income attributable to
this state shall be determined in accordance with the methods of
apportionment required under RCW 82.04.460.
(9) Upon every person engaging within this state as an insurance
agent, insurance broker, or insurance solicitor licensed under chapter
48.17 RCW; as to such persons, the amount of the tax with respect to
such licensed activities shall be equal to the gross income of such
business multiplied by the rate of 0.484 percent.
(10) Upon every person engaging within this state in business as a
hospital, as defined in chapter 70.41 RCW, that is operated as a
nonprofit corporation or by the state or any of its political
subdivisions, as to such persons, the amount of tax with respect to
such activities shall be equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5
percent thereafter. The moneys collected under this subsection shall
be deposited in the health services account created under RCW
43.72.900.
(11)(a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, as to such persons the
amount of tax with respect to such business shall, in the case of
manufacturers, be equal to the value of the product manufactured, or in
the case of processors for hire, be equal to the gross income of the
business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(b) Beginning October 1, 2005, upon every person engaging within
this state in the business of making sales, at retail or wholesale, of
commercial airplanes, or components of such airplanes, manufactured by
that person, as to such persons the amount of tax with respect to such
business shall be equal to the gross proceeds of sales of the airplanes
or components multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(c) For the purposes of this subsection (11), "commercial
airplane," "component," and "final assembly of a superefficient
airplane" have the meanings given in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person eligible for the tax rate under this subsection (11) must report
as required under RCW 82.32.545.
(e) This subsection (11) does not apply after the earlier of: July
1, 2024; or December 31, 2007, if assembly of a superefficient airplane
does not begin by December 31, 2007, as determined under RCW 82.32.550.
(12)(a) Until July 1, 2024, upon every person engaging within this
state in the business of extracting timber or extracting for hire
timber; as to such persons the amount of tax with respect to the
business shall, in the case of extractors, be equal to the value of
products, including byproducts, extracted, or in the case of extractors
for hire, be equal to the gross income of the business, multiplied by
the rate of 0.4235 percent from July 1, 2006, through June 30, 2007,
and 0.2904 percent from July 1, 2007, through June 30, 2024.
(b) Until July 1, 2024, upon every person engaging within this
state in the business of manufacturing or processing for hire: (i)
Timber into timber products or wood products; or (ii) timber products
into other timber products or wood products; as to such persons the
amount of the tax with respect to the business shall, in the case of
manufacturers, be equal to the value of products, including byproducts,
manufactured, or in the case of processors for hire, be equal to the
gross income of the business, multiplied by the rate of 0.4235 percent
from July 1, 2006, through June 30, 2007, and 0.2904 percent from July
1, 2007, through June 30, 2024.
(c) Until July 1, 2024, upon every person engaging within this
state in the business of selling at wholesale: (i) Timber extracted by
that person; (ii) timber products manufactured by that person from
timber or other timber products; or (iii) wood products manufactured by
that person from timber or timber products; as to such persons the
amount of the tax with respect to the business shall be equal to the
gross proceeds of sales of the timber, timber products, or wood
products multiplied by the rate of 0.4235 percent from July 1, 2006,
through June 30, 2007, and 0.2904 percent from July 1, 2007, through
June 30, 2024.
(d) For purposes of this subsection, the following definitions
apply:
(i) "Timber products" means logs, wood chips, sawdust, wood waste,
and similar products obtained wholly from the processing of timber;
pulp; and recycled paper products.
(ii) "Wood products" means paper and paper products; dimensional
lumber; engineered wood products such as particleboard, oriented strand
board, medium density fiberboard, and plywood; wood doors; and wood
windows.
(13) Upon every person engaging within this state in inspecting,
testing, labeling, and storing canned salmon owned by another person,
as to such persons, the amount of tax with respect to such activities
shall be equal to the gross income derived from such activities
multiplied by the rate of 0.484 percent.
Sec. 7 RCW 82.04.261 and 2006 c 300 s 2 are each amended to read
as follows:
(1) In addition to the taxes imposed under RCW 82.04.260(12), a
surcharge is imposed on those persons who are subject to any of the
taxes imposed under RCW 82.04.260(12). Except as otherwise provided in
this section, the surcharge is equal to 0.052 percent. The surcharge
is added to the rates provided in RCW 82.04.260(12) (a), (b), and (c).
(2) All receipts from the surcharge imposed under this section
shall be deposited into the forest and fish support account created in
RCW 76.09.405.
(3)(a) The surcharge imposed under this section shall be suspended
if:
(i) Receipts from the surcharge total at least eight million
dollars during any fiscal biennium; or
(ii) The office of financial management certifies to the department
that the federal government has appropriated at least two million
dollars for participation in forest and fish report-related activities
by federally recognized Indian tribes located within the geographical
boundaries of the state of Washington for any federal fiscal year.
(b)(i) The suspension of the surcharge under (a)(i) of this
subsection (3) shall take effect on the first day of the calendar month
that is at least thirty days after the end of the month during which
the department determines that receipts from the surcharge total at
least eight million dollars during the fiscal biennium. The surcharge
shall be imposed again at the beginning of the following fiscal
biennium.
(ii) The suspension of the surcharge under (a)(ii) of this
subsection (3) shall take effect on the later of the first day of
October of any federal fiscal year for which the federal government
appropriates at least two million dollars for participation in forest
and fish report-related activities by federally recognized Indian
tribes located within the geographical boundaries of the state of
Washington, or the first day of a calendar month that is at least
thirty days following the date that the office of financial management
makes a certification to the department under subsection (5) of this
section. The surcharge shall be imposed again on the first day of the
following July.
(4)(a) If, by October 1st of any federal fiscal year, the office of
financial management certifies to the department that the federal
government has appropriated funds for participation in forest and fish
report-related activities by federally recognized Indian tribes located
within the geographical boundaries of the state of Washington but the
amount of the appropriation is less than two million dollars, the
department shall adjust the surcharge in accordance with this
subsection.
(b) The department shall adjust the surcharge by an amount that the
department estimates will cause the amount of funds deposited into the
forest and fish support account for the state fiscal year that begins
July 1st and that includes the beginning of the federal fiscal year for
which the federal appropriation is made, to be reduced by twice the
amount of the federal appropriation for participation in forest and
fish report-related activities by federally recognized Indian tribes
located within the geographical boundaries of the state of Washington.
(c) Any adjustment in the surcharge shall take effect at the
beginning of a calendar month that is at least thirty days after the
date that the office of financial management makes the certification
under subsection (5) of this section.
(d) The surcharge shall be imposed again at the rate provided in
subsection (1) of this section on the first day of the following state
fiscal year unless the surcharge is suspended under subsection (3) of
this section or adjusted for that fiscal year under this subsection.
(e) Adjustments of the amount of the surcharge by the department
are final and shall not be used to challenge the validity of the
surcharge imposed under this section.
(f) The department shall provide timely notice to affected
taxpayers of the suspension of the surcharge or an adjustment of the
surcharge.
(5) The office of financial management shall make the certification
to the department as to the status of federal appropriations for tribal
participation in forest and fish report-related activities.
Sec. 8 RCW 82.04.294 and 2005 c 301 s 2 are each amended to read
as follows:
(1) Beginning October 1, 2005, upon every person engaging within
this state in the business of manufacturing solar energy systems using
photovoltaic modules, or ((silicon)) of manufacturing solar grade
silicon to be used exclusively in components of such systems; as to
such persons the amount of tax with respect to such business shall, in
the case of manufacturers, be equal to the value of the product
manufactured, or in the case of processors for hire, be equal to the
gross income of the business, multiplied by the rate of 0.2904 percent.
(2) Beginning October 1, 2005, upon every person engaging within
this state in the business of making sales at wholesale of solar energy
systems using photovoltaic modules, or ((silicon)) of solar grade
silicon to be used exclusively in components of such systems,
manufactured by that person; as to such persons the amount of tax with
respect to such business shall be equal to the gross proceeds of sales
of the solar energy systems using photovoltaic modules, or of the solar
grade silicon to be used exclusively in components of such systems,
multiplied by the rate of 0.2904 percent.
(3) The definitions in this subsection apply throughout this
section.
(a) "Module" means the smallest nondivisible self-contained
physical structure housing interconnected photovoltaic cells and
providing a single direct current electrical output.
(b) "Photovoltaic cell" means a device that converts light directly
into electricity without moving parts.
(c) "Solar energy system" means any device or combination of
devices or elements that rely upon direct sunlight as an energy source
for use in the generation of electricity.
(d) "Solar grade silicon" means high-purity silicon used
exclusively in components of solar energy systems using photovoltaic
modules to capture direct sunlight. "Solar grade silicon" does not
include silicon used in semiconductors.
(4) This section expires June 30, 2014.
Sec. 9 RCW 82.04.4281 and 2002 c 150 s 2 are each amended to read
as follows:
(1) In computing tax there may be deducted from the measure of tax:
(a) Amounts derived from investments;
(b) Amounts derived as dividends or distributions from (([the]))
the capital account by a parent from its subsidiary entities; and
(c) Amounts derived from interest on loans between subsidiary
entities and a parent entity or between subsidiaries of a common parent
entity, but only if the total investment and loan income is less than
five percent of gross receipts of the business annually.
(2) The following are not deductible under subsection (1)(a) of
this section:
(a) Amounts received from loans, except as provided in subsection
(1)(c) of this section, or the extension of credit to another,
revolving credit arrangements, installment sales, the acceptance of
payment over time for goods or services, or any of the foregoing that
have been transferred by the originator of the same to an affiliate of
the transferor; or
(b) Amounts received by a banking, lending, or security business.
(3) The definitions in this subsection apply only to this section.
(a) "Banking business" means a person engaging in business as a
national or state-chartered bank, a mutual savings bank, a savings and
loan association, a trust company, an alien bank, a foreign bank, a
credit union, a stock savings bank, or a similar entity that is
chartered under Title 30, 31, 32, or 33 RCW, or organized under Title
12 U.S.C.
(b) "Lending business" means a person engaged in the business of
making secured or unsecured loans of money, or extending credit, and
(i) more than one-half of the person's gross income is earned from such
activities and (ii) more than one-half of the person's total
expenditures are incurred in support of such activities.
(c) The terms "loan" and "extension of credit" do not include
ownership of or trading in publicly traded debt instruments, or
substantially equivalent instruments offered in a private placement.
(d) "Security business" means a person, other than an issuer, who
is engaged in the business of effecting transactions in securities as
a broker, dealer, or broker-dealer, as those terms are defined in the
securities act of Washington, chapter 21.20 RCW, or the federal
securities act of 1933. "Security business" does not include any
company excluded from the definition of broker or dealer under the
federal investment company act of 1940 or any entity that is not an
investment company by reason of sections 3(c)(1) and 3(c)(3) through
3(c)(14) thereof.
Sec. 10 RCW 82.04.440 and 2006 c 300 s 8 are each amended to read
as follows:
(1) Every person engaged in activities ((which)) that are ((within
the purview of the provisions of two or more of sections)) subject to
tax under two or more provisions of RCW 82.04.230 ((to)) through
82.04.298, inclusive, shall be taxable under each ((paragraph))
provision applicable to ((the)) those activities ((engaged in)).
(2) Persons taxable under RCW 82.04.2909(2), 82.04.250, 82.04.270,
82.04.294(2), or 82.04.260 (4), (11), or (12) with respect to selling
products in this state, including those persons who are also taxable
under RCW 82.04.261, shall be allowed a credit against those taxes for
any (a) manufacturing taxes paid with respect to the manufacturing of
products so sold in this state, and/or (b) extracting taxes paid with
respect to the extracting of products so sold in this state or
ingredients of products so sold in this state. Extracting taxes taken
as credit under subsection (3) of this section may also be taken under
this subsection, if otherwise allowable under this subsection. The
amount of the credit shall not exceed the tax liability arising under
this chapter with respect to the sale of those products.
(3) Persons taxable as manufacturers under RCW 82.04.240 or
82.04.260 (1)(b) or (12), including those persons who are also taxable
under RCW 82.04.261, shall be allowed a credit against those taxes for
any extracting taxes paid with respect to extracting the ingredients of
the products so manufactured in this state. The amount of the credit
shall not exceed the tax liability arising under this chapter with
respect to the manufacturing of those products.
(4) Persons taxable under RCW 82.04.230, 82.04.240, 82.04.2909(1),
82.04.294(1), or 82.04.260 (1), (2), (4), (11), or (12), including
those persons who are also taxable under RCW 82.04.261, with respect to
extracting or manufacturing products in this state shall be allowed a
credit against those taxes for any (i) gross receipts taxes paid to
another state with respect to the sales of the products so extracted or
manufactured in this state, (ii) manufacturing taxes paid with respect
to the manufacturing of products using ingredients so extracted in this
state, or (iii) manufacturing taxes paid with respect to manufacturing
activities completed in another state for products so manufactured in
this state. The amount of the credit shall not exceed the tax
liability arising under this chapter with respect to the extraction or
manufacturing of those products.
(5) For the purpose of this section:
(a) "Gross receipts tax" means a tax:
(i) Which is imposed on or measured by the gross volume of
business, in terms of gross receipts or in other terms, and in the
determination of which the deductions allowed would not constitute the
tax an income tax or value added tax; and
(ii) Which is also not, pursuant to law or custom, separately
stated from the sales price.
(b) "State" means (i) the state of Washington, (ii) a state of the
United States other than Washington, or any political subdivision of
such other state, (iii) the District of Columbia, and (iv) any foreign
country or political subdivision thereof.
(c) "Manufacturing tax" means a gross receipts tax imposed on the
act or privilege of engaging in business as a manufacturer, and
includes (i) the taxes imposed in RCW 82.04.240, 82.04.2909(1),
82.04.260 (1), (2), (4), (11), and (12), and 82.04.294(1); (ii) the tax
imposed under RCW 82.04.261 on persons who are engaged in business as
a manufacturer; and (iii) similar gross receipts taxes paid to other
states.
(d) "Extracting tax" means a gross receipts tax imposed on the act
or privilege of engaging in business as an extractor, and includes (i)
the tax imposed on extractors in RCW 82.04.230 and 82.04.260(12); (ii)
the tax imposed under RCW 82.04.261 on persons who are engaged in
business as an extractor; and (iii) similar gross receipts taxes paid
to other states.
(e) "Business", "manufacturer", "extractor", and other terms used
in this section have the meanings given in RCW 82.04.020 through
82.04.212, notwithstanding the use of those terms in the context of
describing taxes imposed by other states.
Sec. 11 RCW 82.04.4461 and 2003 2nd sp.s. c 1 s 7 are each
amended to read as follows:
(1)(a) In computing the tax imposed under this chapter, a credit is
allowed for each person for qualified preproduction development
((spending)) expenditures occurring after December 1, 2003.
(b) Before July 1, 2005, any credits earned under this section must
be accrued and carried forward and may not be used until July 1, 2005.
These carryover credits may be used at any time thereafter, and may be
carried over until used. Refunds may not be granted in the place of a
credit.
(2) The credit is equal to the amount of qualified preproduction
development expenditures of a person, multiplied by the rate of 1.5
percent.
(3) Except as provided in subsection (1)(b) of this section the
credit shall be taken against taxes due for the same calendar year in
which the qualified preproduction development expenditures are
incurred. Credit earned on or after July 1, 2005, may not be carried
over. The credit for each calendar year shall not exceed the amount of
tax otherwise due under this chapter for the calendar year. Refunds
may not be granted in the place of a credit.
(4) Any person claiming the credit shall file an affidavit form
prescribed by the department that shall include the amount of the
credit claimed, an estimate of the anticipated preproduction
development expenditures during the calendar year for which the credit
is claimed, an estimate of the taxable amount during the calendar year
for which the credit is claimed, and such additional information as the
department may prescribe.
(5) The definitions in this subsection apply throughout this
section.
(a) "Aeronautics" means the study of flight and the science of
building and operating commercial aircraft.
(b) "Person" means a person as defined in RCW 82.04.030, who is a
manufacturer or processor for hire of commercial airplanes, or
components of such airplanes, as those terms are defined in RCW
82.32.550.
(c) "Preproduction development" means research, design, and
engineering activities performed in relation to the development of a
product, product line, model, or model derivative, including prototype
development, testing, and certification. The term includes the
discovery of technological information, the translating of
technological information into new or improved products, processes,
techniques, formulas, or inventions, and the adaptation of existing
products and models into new products or new models, or derivatives of
products or models. The term does not include manufacturing activities
or other production-oriented activities, however the term does include
tool design and engineering design for the manufacturing process. The
term does not include surveys and studies, social science and
humanities research, market research or testing, quality control, sale
promotion and service, computer software developed for internal use,
and research in areas such as improved style, taste, and seasonal
design.
(d) (("Preproduction development spending" means qualified
preproduction development expenditures plus eighty percent of amounts
paid to a person other than a public educational or research
institution to conduct qualified preproduction development.)) "Qualified preproduction development" means preproduction
development performed within this state in the field of aeronautics.
(e)
(((f))) (e) "Qualified preproduction development expenditures"
means operating expenses, including wages, compensation of a proprietor
or a partner in a partnership as determined by the department,
benefits, supplies, and computer expenses, directly incurred in
qualified preproduction development by a person claiming the credit
provided in this section. The term does not include amounts paid to a
person other than a public educational or research institution to
conduct qualified preproduction development. The term does not include
capital costs and overhead, such as expenses for land, structures, or
depreciable property.
(((g))) (f) "Taxable amount" means the taxable amount subject to
the tax imposed in this chapter required to be reported on the person's
tax returns during the year in which the credit is claimed, less any
taxable amount for which a credit is allowed under RCW 82.04.440.
(6) In addition to all other requirements under this title, a
person taking the credit under this section must report as required
under RCW 82.32.545.
(7) Credit may not be claimed for expenditures for which a credit
is claimed under RCW 82.04.4452.
(8) This section expires July 1, 2024.
Sec. 12 RCW 82.04.4462 and 2003 2nd sp.s. c 1 s 8 are each
amended to read as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed for the investment related to design and preproduction
development computer software and hardware acquired between July 1,
1995, and December 1, 2003, and used by an eligible person primarily
for the digital design and development of commercial airplanes. The
credit shall be equal to the purchase price of such property,
multiplied by 8.44 percent. Credit taken in any one calendar year may
not exceed ten million dollars, and total lifetime credit taken under
this section by any one person may not exceed twenty million dollars.
Credit may be carried over until used.
(2) The definitions in this subsection apply throughout this
section.
(a) "Commercial airplane" has the meaning given in RCW 82.32.550.
(b) "Design and preproduction development computer software and
hardware" means computer-aided three-dimensional interactive
applications and other solid modeling computer technology that allow
for electronic design and testing during product development.
(c) "Eligible person" means a person as defined in RCW 82.04.030,
who is a manufacturer of commercial airplanes.
(3) An application must be made to the department before taking the
credit under this section. The application shall be made to the
department in a form and manner prescribed by the department. The
application shall contain information regarding the uses of the
computer software and hardware, purchase price, dates of acquisition,
and other information required by the department. The department shall
rule on the application within sixty days. All applications must be
received by the department within one year of December 1, 2003.
(4) This section expires ((July 1, 2024)) on the effective date of
this section.
Sec. 13 RCW 82.04.530 and 2004 c 153 s 410 are each amended to
read as follows:
For purposes of this chapter, a telephone business other than a
mobile telecommunications service provider must calculate gross
proceeds of ((retail)) sales in a manner consistent with the sourcing
rules provided in RCW 82.32.520. The department may adopt rules to
implement this section, including rules that provide a formulary method
of determining gross proceeds that reasonably approximates the taxable
activity of a telephone business.
Sec. 14 RCW 82.08.02745 and 1997 c 438 s 1 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to charges made
for labor and services rendered by any person in respect to the
constructing, repairing, decorating, or improving of new or existing
buildings or other structures used as agricultural employee housing, or
to sales of tangible personal property that becomes an ingredient or
component of the buildings or other structures during the course of the
constructing, repairing, decorating, or improving the buildings or
other structures((, but)). The exemption is available only if the
buyer provides the seller with an exemption certificate in a form and
manner prescribed by the department by rule.
(2) The exemption provided in this section for agricultural
employee housing provided to year-round employees of the agricultural
employer, only applies if that housing is built to the current building
code for single-family or multifamily dwellings according to the state
building code, chapter 19.27 RCW.
(3) Any agricultural employee housing built under this section
shall be used according to this section for at least five consecutive
years from the date the housing is approved for occupancy, or the full
amount of tax otherwise due shall be immediately due and payable
together with interest, but not penalties, from the date the housing is
approved for occupancy until the date of payment. If at any time
agricultural employee housing that is not located on agricultural land
ceases to be used in the manner specified in subsection (2) of this
section, the full amount of tax otherwise due shall be immediately due
and payable with interest, but not penalties, from the date the housing
ceases to be used as agricultural employee housing until the date of
payment.
(4) The exemption provided in this section shall not apply to
housing built for the occupancy of an employer, family members of an
employer, or persons owning stock or shares in a farm partnership or
corporation business.
(5) For purposes of this section and RCW 82.12.02685:
(a) "Agricultural employee" or "employee" has the same meaning as
given in RCW 19.30.010;
(b) "Agricultural employer" or "employer" has the same meaning as
given in RCW 19.30.010; and
(c) "Agricultural employee housing" means all facilities provided
by an agricultural employer, housing authority, local government, state
or federal agency, nonprofit community or neighborhood-based
organization that is exempt from income tax under section 501(c) of the
internal revenue code of 1986 (26 U.S.C. Sec. 501(c)), or for-profit
provider of housing for housing agricultural employees on a year-round
or seasonal basis, including bathing, food handling, hand washing,
laundry, and toilet facilities, single-family and multifamily dwelling
units and dormitories, and includes labor camps under RCW ((70.54.110))
70.114A.110. "Agricultural employee housing" does not include housing
regularly provided on a commercial basis to the general public.
"Agricultural employee housing" does not include housing provided by a
housing authority unless at least eighty percent of the occupants are
agricultural employees whose adjusted income is less than fifty percent
of median family income, adjusted for household size, for the county
where the housing is provided.
Sec. 15 RCW 82.08.841 and 2005 c 420 s 2 are each amended to read
as follows:
(1) The definitions in this subsection apply throughout this
section.
(a) "Cereal grain" means and includes only wheat, oats, barley, and
corn.
(b) "Fiscal year" means a year that begins July 1st and ends June
30th of the following year.
(c) "Qualified farmer" means a farmer as defined in RCW 82.04.213
who has more than fifty percent of his or her tillable acres in cereal
grains and/or field and turf grass grown for seed in qualified
counties.
(d) "Qualified counties" means those counties in Washington state
where cereal grain harvested within the county is estimated to have
exceeded fifteen thousand acres for the calendar year that ends six
months before the beginning of the fiscal year during which an
exemption is claimed, as determined by the department in accordance
with subsection (4) of this section.
For the purposes of this subsection (1)(d), "the fiscal year during
which an exemption is claimed" means: (i) For an exemption under this
section, the fiscal year during which the sale took place for which an
exemption under this section is claimed; or (ii) for an exemption under
RCW 82.12.841, the fiscal year during which the person claiming the
exemption makes first taxable use of the tangible personal property in
this state.
(2) The tax levied by RCW 82.08.020 does not apply to:
(a) Sales of the following machinery and equipment to qualified
farmers: No-till drills, minimum-till drills, chisels, plows,
sprayers, discs, cultivators, harrows, mowers, swathers, power rakes,
balers, bale handlers, shredders, transplanters, tractors two hundred
fifty horsepower and over designed to pull conservation equipment on
steep hills and highly erodible lands, and combine components limited
to straw choppers, chaff spreaders, and stripper headers; and
(b) Labor and services rendered in respect to constructing hay
sheds for qualified farmers or to sales of tangible personal property
to qualified farmers that becomes an ingredient or component of hay
sheds during the course of the constructing.
(((2))) (3)(a) No application is necessary for the tax exemption in
this section. A person taking the exemption under this section must
keep records necessary for the department to verify eligibility. The
department may request from a qualified farmer, copies of farm service
agency or crop insurance records for verification purposes, however
information obtained from farm service agency or crop insurance records
is deemed taxpayer information under RCW 82.32.330 and is not
disclosable.
(b) The 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 apply to this section.))
(a) "Qualified farmer" means a farmer as defined in RCW 82.04.213
who has more than fifty percent of his or her tillable acres in cereal
grains and/or field and turf grass grown for seed in qualified
counties.
(b) "Qualified counties" means those counties in Washington state
where cereal grain production within the county exceeds fifteen
thousand acres.
(4)(a) The determination of whether a county is a qualified county
shall be done annually on a fiscal year basis. The determination shall
be based solely on the most current statistics available to the public
from the United States department of agriculture's national
agricultural statistics service as of April 1st of the fiscal year
immediately preceding the beginning of the fiscal year for which the
determination is made. If statistics for any cereal grains are not
available for the calendar year that ends six months before the
beginning of the fiscal year for which a determination is made, the
most current statistics that are available from the national
agricultural statistics service shall be deemed to be statistics for
the calendar year that ends six months before the beginning of the
fiscal year for which a determination is made. If the national
agricultural statistics service does not provide statistics for any
particular cereal grain for a county, that particular cereal grain
shall not be included in the determination of whether the county is a
qualified county.
(b) For the purposes of this section and RCW 82.12.841, the
department shall make a list of qualified counties available to the
public on its web site and shall add or remove counties from the list
as necessary on an annual basis.
(5) The removal of a county from the list of qualified counties
shall not result in the imposition of the tax under this chapter or
chapter 82.12 RCW against a farmer with respect to tangible personal
property or a service for which the farmer validly claimed an exemption
under this section before the county was removed from the list of
qualified counties.
(6) The exemption in this section expires January 1, 2011. The
expiration of the exemption in this section shall not result in the
imposition of the tax under this chapter or chapter 82.12 RCW against
a farmer with respect to tangible personal property or a service for
which the farmer validly claimed an exemption under this section before
January 1, 2011.
(7) Neither the removal of a county from the list of qualified
counties nor the expiration of this section affects any existing right
acquired or liability or obligation incurred under this section or
under any rule or order adopted under this section, nor do they affect
any proceeding instituted under it.
(8) This section expires January 1, 2011.
Sec. 16 RCW 82.12.0284 and 2003 c 168 s 603 are each amended to
read as follows:
The provisions of this chapter shall not apply in respect to the
use of computers, computer components, computer accessories, or
computer software irrevocably donated to any public or private
nonprofit school or college, as defined under chapter 84.36 RCW, in
this state. For purposes of this section, "computer" ((has)) and
"computer software" have the same meaning as in RCW 82.04.215.
Sec. 17 RCW 82.12.841 and 2005 c 420 s 3 are each amended to read
as follows:
(1) The tax levied by RCW 82.12.020 does not apply in respect to:
(a) The use of the following machinery and equipment by qualified
farmers: No-till drills, minimum-till drills, chisels, plows,
sprayers, discs, cultivators, harrows, mowers, swathers, power rakes,
balers, bale handlers, shredders, transplanters, tractors two hundred
fifty horsepower and over designed to pull conservation equipment on
steep hills and highly erodible lands, and combine components limited
to straw choppers, chaff spreaders, and stripper headers; and
(b) The use of tangible personal property that will be incorporated
as an ingredient or component of hay sheds by a qualified farmer,
during the course of constructing such hay sheds.
(2) The eligibility requirements, conditions, and definitions in
RCW 82.08.841 apply to this section.
(3) Neither the removal of a county from the list of qualified
counties nor the expiration of this section affects any existing right
acquired or liability or obligation incurred under this section or
under any rule or order adopted under this section, nor do they affect
any proceeding instituted under it.
(4) This section expires January 1, 2011.
Sec. 18 RCW 82.14B.020 and 2002 c 341 s 7 are each amended to
read as follows:
As used in this chapter:
(1) "Emergency services communication system" means a multicounty,
countywide, or districtwide radio or landline communications network,
including an enhanced 911 telephone system, which provides rapid public
access for coordinated dispatching of services, personnel, equipment,
and facilities for police, fire, medical, or other emergency services.
(2) "Enhanced 911 telephone system" means a public telephone system
consisting of a network, data base, and on-premises equipment that is
accessed by dialing 911 and that enables reporting police, fire,
medical, or other emergency situations to a public safety answering
point. The system includes the capability to selectively route
incoming 911 calls to the appropriate public safety answering point
that operates in a defined 911 service area and the capability to
automatically display the name, address, and telephone number of
incoming 911 calls at the appropriate public safety answering point.
(3) "Switched access line" means the telephone service line which
connects a subscriber's main telephone(s) or equivalent main
telephone(s) to the local exchange company's switching office.
(4) "Local exchange company" has the meaning ascribed to it in RCW
80.04.010.
(5) "Radio access line" means the telephone number assigned to or
used by a subscriber for two-way local wireless voice service available
to the public for hire from a radio communications service company.
Radio access lines include, but are not limited to, radio-telephone
communications lines used in cellular telephone service, personal
communications services, and network radio access lines, or their
functional and competitive equivalent. Radio access lines do not
include lines that provide access to one-way signaling service, such as
paging service, or to communications channels suitable only for data
transmission, or to nonlocal radio access line service, such as
wireless roaming service, or to a private telecommunications system.
(6) "Radio communications service company" has the meaning ascribed
to it in RCW 80.04.010, except that it does not include radio paging
providers. It does include those persons or entities that provide
commercial mobile radio services, as defined by 47 U.S.C. Sec.
332(d)(1), and both facilities-based and nonfacilities-based resellers.
(7) "Private telecommunications system" has the meaning ascribed to
it in RCW 80.04.010.
(8) "Subscriber" means the retail purchaser of telephone service as
telephone service is defined in RCW 82.04.065(3).
(9) "Place of primary use" has the meaning ascribed to it in ((the
federal mobile telecommunications sourcing act, P.L. 106-252)) RCW
82.04.065.
Sec. 19 RCW 82.14B.030 and 2002 c 341 s 8 and 2002 c 67 s 8 are
each reenacted and amended to read as follows:
(1) The legislative authority of a county may impose a county
enhanced 911 excise tax on the use of switched access lines in an
amount not exceeding fifty cents per month for each switched access
line. The amount of tax shall be uniform for each switched access
line. Each county shall provide notice of such tax to all local
exchange companies serving in the county at least sixty days in advance
of the date on which the first payment is due.
(2) The legislative authority of a county may also impose a county
enhanced 911 excise tax on the use of radio access lines whose place of
primary use is located within the county in an amount not exceeding
fifty cents per month for each radio access line. The amount of tax
shall be uniform for each radio access line. ((The location of a radio
access line is the customer's place of primary use as defined in RCW
82.04.065.)) The county shall provide notice of such tax to all radio
communications service companies serving in the county at least sixty
days in advance of the date on which the first payment is due. Any
county imposing this tax shall include in its ordinance a refund
mechanism whereby the amount of any tax ordered to be refunded by the
judgment of a court of record, or as a result of the resolution of any
appeal therefrom, shall be refunded to the radio communications service
company or local exchange company that collected the tax, and those
companies shall reimburse the subscribers who paid the tax. The
ordinance shall further provide that to the extent the subscribers who
paid the tax cannot be identified or located, the tax paid by those
subscribers shall be returned to the county.
(3) A state enhanced 911 excise tax is imposed on all switched
access lines in the state. The amount of tax shall not exceed twenty
cents per month for each switched access line. The tax shall be
uniform for each switched access line. The tax imposed under this
subsection shall be remitted to the department of revenue by local
exchange companies on a tax return provided by the department. Tax
proceeds shall be deposited by the treasurer in the enhanced 911
account created in RCW 38.52.540.
(4) A state enhanced 911 excise tax is imposed on all radio access
lines whose place of primary use is located within the state in an
amount of twenty cents per month for each radio access line. The tax
shall be uniform for each radio access line. The tax imposed under
this section shall be remitted to the department of revenue by radio
communications service companies, including those companies that resell
radio access lines, on a tax return provided by the department. Tax
proceeds shall be deposited by the treasurer in the enhanced 911
account created in RCW 38.52.540. The tax imposed under this section
is not subject to the state sales and use tax or any local tax.
(5) By August 31st of each year the state enhanced 911 coordinator
shall recommend the level for the next year of the state enhanced 911
excise tax imposed by subsection (3) of this section, based on a
systematic cost and revenue analysis, to the utilities and
transportation commission. The commission shall by the following
October 31st determine the level of the state enhanced 911 excise tax
for the following year.
Sec. 20 RCW 82.32.520 and 2004 c 153 s 403 are each amended to
read as follows:
(1) Except for the defined telecommunications services listed in
this section, the sale of telephone service as defined in RCW 82.04.065
sold on a call-by-call basis shall be sourced to (a) each level of
taxing jurisdiction where the call originates and terminates in that
jurisdiction or (b) each level of taxing jurisdiction where the call
either originates or terminates and in which the service address is
also located.
(2) Except for the defined telecommunications services listed in
this section, a sale of telephone service as defined in RCW 82.04.065
sold on a basis other than a call-by-call basis, is sourced to the
customer's place of primary use.
(3) The sales of telephone service as defined in RCW 82.04.065 that
are listed in this section shall be sourced to each level of taxing
jurisdiction as follows:
(a) A sale of mobile telecommunications services, other than air-ground radiotelephone service and prepaid calling service, is sourced
to the customer's place of primary use as required by RCW 82.08.066.
(b) A sale of postpaid calling service is sourced to the
origination point of the telecommunications signal as first identified
by either (i) the seller's telecommunications system, or (ii)
information received by the seller from its service provider, where the
system used to transport such signals is not that of the seller.
(c) A sale of prepaid calling service is sourced as follows:
(i) When a prepaid calling service is received by the purchaser at
a business location of the seller, the sale is sourced to that business
location;
(ii) When a prepaid calling service is not received by the
purchaser at a business location of the seller, the sale is sourced to
the location where receipt by the purchaser or the purchaser's donee,
designated as such by the purchaser, occurs, including the location
indicated by instructions for delivery to the purchaser or donee, known
to the seller;
(iii) When (c)(i) and (ii) of this subsection do not apply, the
sale is sourced to the location indicated by an address for the
purchaser that is available from the business records of the seller
that are maintained in the ordinary course of the seller's business
when use of this address does not constitute bad faith;
(iv) When (c)(i), (ii), and (iii) of this subsection do not apply,
the sale is sourced to the location indicated by an address for the
purchaser obtained during the consummation of the sale, including the
address of a purchaser's payment instrument, if no other address is
available, when use of this address does not constitute bad faith;
(v) When (c)(i), (ii), (iii), and (iv) of this subsection do not
apply, including the circumstance where the seller is without
sufficient information to apply those provisions, then the location
shall be determined by the address from which tangible personal
property was shipped, from which the digital good or the computer
software delivered electronically was first available for transmission
by the seller, or from which the service defined as a retail sale under
RCW 82.04.050 was provided, disregarding for these purposes any
location that merely provided the digital transfer of the product sold;
(vi) In the case of a sale of mobile telecommunications service
that is a prepaid telecommunications service, (c)(v) of this subsection
shall include as an option the location associated with the mobile
telephone number.
(d) A sale of a private communication service is sourced as
follows:
(i) Service for a separate charge related to a customer channel
termination point is sourced to each level of jurisdiction in which
such customer channel termination point is located.
(ii) Service where all customer termination points are located
entirely within one jurisdiction or levels of jurisdiction is sourced
in such jurisdiction in which the customer channel termination points
are located.
(iii) Service for segments of a channel between two customer
channel termination points located in different jurisdictions and which
segment of channel are separately charged is sourced fifty percent in
each level of jurisdiction in which the customer channel termination
points are located.
(iv) Service for segments of a channel located in more than one
jurisdiction or levels of jurisdiction and which segments are not
separately billed is sourced in each jurisdiction based on the
percentage determined by dividing the number of customer channel
termination points in the jurisdiction by the total number of customer
channel termination points.
(4) The definitions in this subsection apply throughout this
chapter.
(a) "Air-ground radiotelephone service" means air-ground radio
service, as defined in 47 C.F.R. Sec. 22.99, as amended or renumbered
as of January 1, 2003, in which common carriers are authorized to offer
and provide radio telecommunications service for hire to subscribers in
aircraft.
(b) "Call-by-call basis" means any method of charging for
telecommunications services where the price is measured by individual
calls.
(c) "Communications channel" means a physical or virtual path of
communications over which signals are transmitted between or among
customer channel termination points.
(d) "Customer" means the person or entity that contracts with the
seller of telecommunications services. If the end user of
telecommunications services is not the contracting party, the end user
of the telecommunications service is the customer of the
telecommunications service. "Customer" does not include a reseller of
telecommunications service or for mobile telecommunications service of
a serving carrier under an agreement to serve the customer outside the
home service provider's licensed service area.
(e) "Customer channel termination point" means the location where
the customer either inputs or receives the communications.
(f) "End user" means the person who uses the telecommunications
service. In the case of an entity, the term end user means the
individual who uses the service on behalf of the entity.
(g) "Home service provider" means the same as that term is defined
in RCW 82.04.065.
(h) "Mobile telecommunications service" means the same as that term
is defined in RCW 82.04.065.
(i) "Place of primary use" means the street address representative
of where the customer's use of the telecommunications service primarily
occurs, which must be the residential street address or the primary
business street address of the customer. In the case of mobile
telecommunications services, "place of primary use" must be within the
licensed service area of the home service provider.
(j) "Postpaid calling service" means the telecommunications service
obtained by making a payment on a call-by-call basis either through the
use of a credit card or payment mechanism such as a bank card, travel
card, credit card, or debit card, or by charge made to ((which)) a
telephone number that is not associated with the origination or
termination of the telecommunications service. A postpaid calling
service includes a telecommunications service that would be a prepaid
calling service except it is not exclusively a telecommunications
service.
(k) "Prepaid calling service" means the right to access exclusively
telecommunications services, which must be paid for in advance and
which enables the origination of calls using an access number and/or
authorization code, whether manually or electronically dialed, and that
is sold in predetermined units or dollars of which the number declines
with use in a known amount.
(l) "Private communication service" means a telecommunications
service that entitles the customer to exclusive or priority use of a
communications channel or group of channels between or among
termination points, regardless of the manner in which such channel or
channels are connected, and includes switching capacity, extension
lines, stations, and any other associated services that are provided in
connection with the use of such channel or channels.
(m) "Service address" means:
(i) The location of the telecommunications equipment to which a
customer's call is charged and from which the call originates or
terminates, regardless of where the call is billed or paid;
(ii) If the location in (m)(i) of this subsection is not known, the
origination point of the signal of the telecommunications services
first identified by either the seller's telecommunications system or in
information received by the seller from its service provider, where the
system used to transport such signals is not that of the seller;
(iii) If the locations in (m)(i) and (ii) of this subsection are
not known, the location of the customer's place of primary use.
Sec. 21 RCW 82.32.545 and 2003 2nd sp.s. c 1 s 16 are each
amended to read as follows:
(1) The legislature finds that accountability and effectiveness are
important aspects of setting tax policy. In order to make policy
choices regarding the best use of limited state resources the
legislature needs information on how a tax incentive is used.
(2)(a) A person who reports taxes under RCW 82.04.260(((13))) (11)
or who claims an exemption or credit under RCW 82.04.4461, 82.08.980,
82.12.980, 82.29A.137, 84.36.655, and 82.04.4463 shall make an annual
report to the department detailing employment, wages, and employer-provided health and retirement benefits per job at the manufacturing
site. The report shall not include names of employees. The report
shall also detail employment by the total number of full-time, part-time, and temporary positions. The first report filed under this
subsection shall include employment, wage, and benefit information for
the twelve-month period immediately before first use of a preferential
tax rate under RCW 82.04.260(((13))) (11), or tax exemption or credit
under RCW 82.04.4461, 82.08.980, 82.12.980, 82.29A.137, 84.36.655, and
82.04.4463. The report is due by March 31st following any year in
which a preferential tax rate under RCW 82.04.260(((13))) (11) is used,
or tax exemption or credit under RCW 82.04.4461, 82.08.980, 82.12.980,
82.29A.137, 84.36.655, and 82.04.4463 is taken. This information is
not subject to the confidentiality provisions of RCW 82.32.330 and may
be disclosed to the public upon request.
(b) If a person fails to submit an annual report under (a) of this
subsection by the due date of the report, the department shall declare
the amount of taxes exempted or credited, or reduced in the case of the
preferential business and occupation tax rate, for that year to be
immediately due and payable. Excise taxes payable under this
subsection are subject to interest but not penalties, as provided under
this chapter. This information is not subject to the confidentiality
provisions of RCW 82.32.330 and may be disclosed to the public upon
request.
(3) By November 1, 2010, and by November 1, 2023, the fiscal
committees of the house of representatives and the senate, in
consultation with the department, shall report to the legislature on
the effectiveness of chapter 1, Laws of 2003 2nd sp. sess. in regard to
keeping Washington competitive. The report shall measure the effect of
chapter 1, Laws of 2003 2nd sp. sess. on job retention, net jobs
created for Washington residents, company growth, diversification of
the state's economy, cluster dynamics, and other factors as the
committees select. The reports shall include a discussion of
principles to apply in evaluating whether the legislature should
reenact any or all of the tax preferences in chapter 1, Laws of 2003
2nd sp. sess.
Sec. 22 RCW 82.32.550 and 2003 2nd sp.s. c 1 s 17 are each
amended to read as follows:
(1)(a) Chapter 1, Laws of 2003 2nd sp. sess. takes effect on the
first day of the month in which the governor and a manufacturer of
commercial airplanes sign a memorandum of agreement regarding an
affirmative final decision to site a significant commercial airplane
final assembly facility in Washington state. The department shall
provide notice of the effective date of chapter 1, Laws of 2003 2nd sp.
sess. to affected taxpayers, the legislature, and others as deemed
appropriate by the department.
(b) Chapter 1, Laws of 2003 2nd sp. sess. is contingent upon the
siting of a significant commercial airplane final assembly facility in
the state of Washington. If a memorandum of agreement under subsection
(1) of this section is not signed by June 30, 2005, chapter 1, Laws of
2003 2nd sp. sess. is null and void.
(c)(i) The department shall make a determination regarding the date
final assembly of a superefficient airplane begins in Washington state.
The rates in RCW 82.04.260(((13))) (11) (a)(ii) and (b)(ii) take effect
the first day of the month such assembly begins, or July 1, 2007,
whichever is later. The department shall provide notice of the
effective date of such rates to affected taxpayers, the legislature,
and others as deemed appropriate by the department.
(ii) If on December 31, 2007, final assembly of a superefficient
airplane has not begun in Washington state, the department shall
provide notice of such to affected taxpayers, the legislature, and
others as deemed appropriate by the department.
(2) The definitions in this subsection apply throughout this
section.
(a) "Commercial airplane" has its ordinary meaning, which is an
airplane certified by the federal aviation administration for
transporting persons or property, and any military derivative of such
an airplane.
(b) "Component" means a part or system certified by the federal
aviation administration for installation or assembly into a commercial
airplane.
(c) "Final assembly of a superefficient airplane" means the
activity of assembling an airplane from components parts necessary for
its mechanical operation such that the finished commercial airplane is
ready to deliver to the ultimate consumer.
(d) "Significant commercial airplane final assembly facility" means
a location with the capacity to produce at least thirty-six
superefficient airplanes a year.
(e) "Siting" means a final decision by a manufacturer to locate a
significant commercial airplane final assembly facility in Washington
state.
(f) "Superefficient airplane" means a twin aisle airplane that
carries between two hundred and three hundred fifty passengers, with a
range of more than seven thousand two hundred nautical miles, a
cruising speed of approximately mach .85, and that uses fifteen to
twenty percent less fuel than other similar airplanes on the market.
Sec. 23 RCW 82.32.555 and 2004 c 76 s 1 are each amended to read
as follows:
If a taxing jurisdiction does not subject some charges for
telephone services to taxation, but these charges are aggregated with
and not separately stated from charges that are subject to taxation,
then the charges for nontaxable telephone services may be subject to
taxation unless the telephone service ((or)) provider can reasonably
identify charges not subject to the tax, charge, or fee from its books
and records that are kept in the regular course of business and for
purposes other than merely allocating the sales price of an aggregated
charge to the individually aggregated items.
Sec. 24 RCW 82.32.600 and 2006 c 354 s 16, 2006 c 300 s 11, 2006
c 178 s 9, 2006 c 177 s 9, and 2006 c 84 s 8 are each reenacted to read
as follows:
(1) Persons required to file annual surveys or annual reports under
RCW 82.04.4452 or 82.32.5351, 82.32.610, 82.32.630, 82.32.635,
82.32.640, or 82.74.040 must electronically file with the department
all surveys, reports, returns, and any other forms or information the
department requires in an electronic format as provided or approved by
the department. As used in this section, "returns" has the same
meaning as "return" in RCW 82.32.050.
(2) Any survey, report, return, or any other form or information
required to be filed in an electronic format under subsection (1) of
this section is not filed until received by the department in an
electronic format.
(3) The department may waive the electronic filing requirement in
subsection (1) of this section for good cause shown.
Sec. 25 RCW 82.32.600 and 2006 c 354 s 16, 2006 c 300 s 11, 2006
c 178 s 9, and 2006 c 177 s 9 are each reenacted to read as follows:
(1) Persons required to file surveys under RCW 82.04.4452,
82.32.610, 82.32.630, 82.32.635, or 82.32.640, or 82.74.040 must
electronically file with the department all surveys, returns, and any
other forms or information the department requires in an electronic
format as provided or approved by the department. As used in this
section, "returns" has the same meaning as "return" in RCW 82.32.050.
(2) Any survey, return, or any other form or information required
to be filed in an electronic format under subsection (1) of this
section is not filed until received by the department in an electronic
format.
(3) The department may waive the electronic filing requirement in
subsection (1) of this section for good cause shown.
Sec. 26 RCW 84.33.140 and 2005 c 303 s 13 are each amended to
read as follows:
(1) When land has been designated as forest land under RCW
84.33.130, a notation of the designation shall be made each year upon
the assessment and tax rolls. A copy of the notice of approval
together with the legal description or assessor's parcel numbers for
the land shall, at the expense of the applicant, be filed by the
assessor in the same manner as deeds are recorded.
(2) In preparing the assessment roll as of January 1, 2002, for
taxes payable in 2003 and each January 1st thereafter, the assessor
shall list each parcel of designated forest land at a value with
respect to the grade and class provided in this subsection and adjusted
as provided in subsection (3) of this section. The assessor shall
compute the assessed value of the land using the same assessment ratio
applied generally in computing the assessed value of other property in
the county. Values for the several grades of bare forest land shall be
as follows:
| LAND GRADE | OPERABILITY CLASS | VALUES PER ACRE |
| 1 | $234 | |
| 1 | 2 | 229 |
| 3 | 217 | |
| 4 | 157 | |
| 1 | 198 | |
| 2 | 2 | 190 |
| 3 | 183 | |
| 4 | 132 | |
| 1 | 154 | |
| 3 | 2 | 149 |
| 3 | 148 | |
| 4 | 113 | |
| 1 | 117 | |
| 4 | 2 | 114 |
| 3 | 113 | |
| 4 | 86 | |
| 1 | 85 | |
| 5 | 2 | 78 |
| 3 | 77 | |
| 4 | 52 | |
| 1 | 43 | |
| 6 | 2 | 39 |
| 3 | 39 | |
| 4 | 37 | |
| 1 | 21 | |
| 7 | 2 | 21 |
| 3 | 20 | |
| 4 | 20 | |
| 8 | 1 |
Sec. 27 RCW 84.34.108 and 2003 c 170 s 6 are each amended to read
as follows:
(1) When land has once been classified under this chapter, a
notation of the classification shall be made each year upon the
assessment and tax rolls and the land shall be valued pursuant to RCW
84.34.060 or 84.34.065 until removal of all or a portion of the
classification by the assessor upon occurrence of any of the following:
(a) Receipt of notice from the owner to remove all or a portion of
the classification;
(b) Sale or transfer to an ownership, except a transfer that
resulted from a default in loan payments made to or secured by a
governmental agency that intends to or is required by law or regulation
to resell the property for the same use as before, making all or a
portion of the land exempt from ad valorem taxation;
(c) Sale or transfer of all or a portion of the land to a new
owner, unless the new owner has signed a notice of classification
continuance, except transfer to an owner who is an heir or devisee of
a deceased owner shall not, by itself, result in removal of
classification. The notice of continuance shall be on a form prepared
by the department. If the notice of continuance is not signed by the
new owner and attached to the real estate excise tax affidavit, all
additional taxes calculated pursuant to subsection (4) of this section
shall become due and payable by the seller or transferor at time of
sale. The auditor shall not accept an instrument of conveyance
regarding classified land for filing or recording unless the new owner
has signed the notice of continuance or the additional tax has been
paid, as evidenced by the real estate excise tax stamp affixed thereto
by the treasurer. The seller, transferor, or new owner may appeal the
new assessed valuation calculated under subsection (4) of this section
to the county board of equalization in accordance with the provisions
of RCW 84.40.038. Jurisdiction is hereby conferred on the county board
of equalization to hear these appeals;
(d) Determination by the assessor, after giving the owner written
notice and an opportunity to be heard, that all or a portion of the
land no longer meets the criteria for classification under this
chapter. The criteria for classification pursuant to this chapter
continue to apply after classification has been granted.
The granting authority, upon request of an assessor, shall provide
reasonable assistance to the assessor in making a determination whether
the land continues to meet the qualifications of RCW 84.34.020 (1) or
(3). The assistance shall be provided within thirty days of receipt of
the request.
(2) Land may not be removed from classification because of:
(a) The creation, sale, or transfer of forestry riparian easements
under RCW 76.13.120; or
(b) The creation, sale, or transfer of a fee interest or a
conservation easement for the riparian open space program under RCW
76.09.040.
(3) Within thirty days after such removal of all or a portion of
the land from current use classification, the assessor shall notify the
owner in writing, setting forth the reasons for the removal. The
seller, transferor, or owner may appeal the removal to the county board
of equalization in accordance with the provisions of RCW 84.40.038.
(4) Unless the removal is reversed on appeal, the assessor shall
revalue the affected land with reference to its true and fair value on
January 1st of the year of removal from classification. Both the
assessed valuation before and after the removal of classification shall
be listed and taxes shall be allocated according to that part of the
year to which each assessed valuation applies. Except as provided in
subsection (6) of this section, an additional tax, applicable interest,
and penalty shall be imposed which shall be due and payable to the
treasurer thirty days after the owner is notified of the amount of the
additional tax. As soon as possible, the assessor shall compute the
amount of additional tax, applicable interest, and penalty and the
treasurer shall mail notice to the owner of the amount thereof and the
date on which payment is due. The amount of the additional tax,
applicable interest, and penalty shall be determined as follows:
(a) The amount of additional tax shall be equal to the difference
between the property tax paid as "open space land(("))," "farm and
agricultural land(("))," or "timber land" and the amount of property
tax otherwise due and payable for the seven years last past had the
land not been so classified;
(b) The amount of applicable interest shall be equal to the
interest upon the amounts of the additional tax paid at the same
statutory rate charged on delinquent property taxes from the dates on
which the additional tax could have been paid without penalty if the
land had been assessed at a value without regard to this chapter;
(c) The amount of the penalty shall be as provided in RCW
84.34.080. The penalty shall not be imposed if the removal satisfies
the conditions of RCW 84.34.070.
(5) Additional tax, applicable interest, and penalty, shall become
a lien on the land which shall attach at the time the land is removed
from classification under this chapter and shall have priority to and
shall be fully paid and satisfied before any recognizance, mortgage,
judgment, debt, obligation or responsibility to or with which the land
may become charged or liable. This lien may be foreclosed upon
expiration of the same period after delinquency and in the same manner
provided by law for foreclosure of liens for delinquent real property
taxes as provided in RCW 84.64.050 ((now or as hereafter amended)).
Any additional tax unpaid on its due date shall thereupon become
delinquent. From the date of delinquency until paid, interest shall be
charged at the same rate applied by law to delinquent ad valorem
property taxes.
(6) The additional tax, applicable interest, and penalty specified
in subsection (4) of this section shall not be imposed if the removal
of classification pursuant to subsection (1) of this section resulted
solely from:
(a) Transfer to a government entity in exchange for other land
located within the state of Washington;
(b)(i) A taking through the exercise of the power of eminent
domain, or (ii) sale or transfer to an entity having the power of
eminent domain in anticipation of the exercise of such power, said
entity having manifested its intent in writing or by other official
action;
(c) A natural disaster such as a flood, windstorm, earthquake, or
other such calamity rather than by virtue of the act of the landowner
changing the use of the property;
(d) Official action by an agency of the state of Washington or by
the county or city within which the land is located which disallows the
present use of the land;
(e) Transfer of land to a church when the land would qualify for
exemption pursuant to RCW 84.36.020;
(f) Acquisition of property interests by state agencies or agencies
or organizations qualified under RCW 84.34.210 and 64.04.130 for the
purposes enumerated in those sections. At such time as these property
interests are not used for the purposes enumerated in RCW 84.34.210 and
64.04.130 the additional tax specified in subsection (4) of this
section shall be imposed;
(g) Removal of land classified as farm and agricultural land under
RCW 84.34.020(2)(e);
(h) Removal of land from classification after enactment of a
statutory exemption that qualifies the land for exemption and receipt
of notice from the owner to remove the land from classification;
(i) The creation, sale, or transfer of forestry riparian easements
under RCW 76.13.120;
(j) The creation, sale, or transfer of a fee interest or a
conservation easement for the riparian open space program under RCW
76.09.040; or
(k) The sale or transfer of land within two years after the death
of the owner of at least a fifty percent interest in the land if the
land has been assessed and valued as classified forest land, designated
as forest land under chapter 84.33 RCW, or classified under this
chapter continuously since 1993. The date of death shown on a death
certificate is the date used for the purposes of this subsection
(6)(k)((; or)).
(l) The sale or transfer of land after the death of the owner of at
least a fifty percent interest in the land if the land has been
assessed and valued as classified forest land, designated as forest
land under chapter 84.33 RCW, or classified under this chapter
continuously since 1993 and the sale or transfer takes place after July
22, 2001, and on or before July 22, 2003, and the death of the owner
occurred after January 1, 1991. The date of death shown on a death
certificate is the date used for the purpose of this subsection
(6)(l)
Sec. 28 RCW 84.52.010 and 2005 c 122 s 2 are each amended to read
as follows:
Except as is permitted under RCW 84.55.050, all taxes shall be
levied or voted in specific amounts.
The rate percent of all taxes for state and county purposes, and
purposes of taxing districts coextensive with the county, shall be
determined, calculated and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the county, as shown by the
completed tax rolls of the county, and the rate percent of all taxes
levied for purposes of taxing districts within any county shall be
determined, calculated and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the taxing districts
respectively.
When a county assessor finds that the aggregate rate of tax levy on
any property, that is subject to the limitations set forth in RCW
84.52.043 or 84.52.050, exceeds the limitations provided in either of
these sections, the assessor shall recompute and establish a
consolidated levy in the following manner:
(1) The full certified rates of tax levy for state, county, county
road district, and city or town purposes shall be extended on the tax
rolls in amounts not exceeding the limitations established by law;
however any state levy shall take precedence over all other levies and
shall not be reduced for any purpose other than that required by RCW
84.55.010. If, as a result of the levies imposed under RCW
((84.52.125, 84.52.135, 36.54.130, 84.52.069, 84.34.230, the portion of
the levy by a metropolitan park district that was protected under RCW
84.52.120, and 84.52.105)) 36.54.130, 84.34.230, 84.52.069, 84.52.105,
the portion of the levy by a metropolitan park district that was
protected under RCW 84.52.120, 84.52.125, and 84.52.135, the combined
rate of regular property tax levies that are subject to the one percent
limitation exceeds one percent of the true and fair value of any
property, then these levies shall be reduced as follows:
(a) The portion of the levy by a fire protection district that is
protected under RCW 84.52.125 shall be reduced until the combined rate
no longer exceeds one percent of the true and fair value of any
property or shall be eliminated;
(b) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, the levy imposed by a county under
RCW 84.52.135 must be reduced until the combined rate no longer exceeds
one percent of the true and fair value of any property or must be
eliminated;
(c) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, the levy imposed by a ferry
district under RCW 36.54.130 must be reduced until the combined rate no
longer exceeds one percent of the true and fair value of any property
or must be eliminated;
(d) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, the portion of the levy by a
metropolitan park district that is protected under RCW 84.52.120 shall
be reduced until the combined rate no longer exceeds one percent of the
true and fair value of any property or shall be eliminated;
(e) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, then the levies imposed under RCW
84.34.230, 84.52.105, and any portion of the levy imposed under RCW
84.52.069 that is in excess of thirty cents per thousand dollars of
assessed value, shall be reduced on a pro rata basis until the combined
rate no longer exceeds one percent of the true and fair value of any
property or shall be eliminated; and
(f) If the combined rate of regular property tax levies that are
subject to the one percent limitation still exceeds one percent of the
true and fair value of any property, then the thirty cents per thousand
dollars of assessed value of tax levy imposed under RCW 84.52.069 shall
be reduced until the combined rate no longer exceeds one percent of the
true and fair value of any property or eliminated.
(2) The certified rates of tax levy subject to these limitations by
all junior taxing districts imposing taxes on such property shall be
reduced or eliminated as follows to bring the consolidated levy of
taxes on such property within the provisions of these limitations:
(a) First, the certified property tax levy rates of those junior
taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100,
and 67.38.130 shall be reduced on a pro rata basis or eliminated;
(b) Second, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of flood control
zone districts shall be reduced on a pro rata basis or eliminated;
(c) Third, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of all other junior
taxing districts, other than fire protection districts, regional fire
protection service authorities, library districts, the first fifty cent
per thousand dollars of assessed valuation levies for metropolitan park
districts, and the first fifty cent per thousand dollars of assessed
valuation levies for public hospital districts, shall be reduced on a
pro rata basis or eliminated;
(d) Fourth, if the consolidated tax levy rate still exceeds these
limitations, the first fifty cent per thousand dollars of assessed
valuation levies for metropolitan park districts created on or after
January 1, 2002, shall be reduced on a pro rata basis or eliminated;
(e) Fifth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized to
((regional fire protection service authorities under RCW 52.26.140(1)
(b) and (c) and)) fire protection districts under RCW 52.16.140 and
52.16.160 and regional fire protection service authorities under RCW
52.26.140(1) (b) and (c) shall be reduced on a pro rata basis or
eliminated; and
(f) Sixth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized for fire
protection districts under RCW 52.16.130, regional fire protection
service authorities under RCW 52.26.140(1)(a), ((fire protection
districts under RCW 52.16.130,)) library districts, metropolitan park
districts created before January 1, 2002, under their first fifty cent
per thousand dollars of assessed valuation levy, and public hospital
districts under their first fifty cent per thousand dollars of assessed
valuation levy, shall be reduced on a pro rata basis or eliminated.
Sec. 29 RCW 84.52.054 and 1986 c 133 s 2 are each amended to read
as follows:
The additional tax provided for in ((subparagraph (a) of the
seventeenth amendment to)) Article VII, section 2 of the state
Constitution ((as amended by Amendment 59 and as thereafter amended)),
and specifically authorized by RCW 84.52.052, ((as now or hereafter
amended, and RCW)) 84.52.053 ((and)), 84.52.0531, and 84.52.130, shall
be set forth in terms of dollars on the ballot of the proposition to be
submitted to the voters, together with an estimate of the dollar rate
of tax levy that will be required to produce the dollar amount; and the
county assessor, in spreading this tax upon the rolls, shall determine
the eventual dollar rate required to produce the amount of dollars so
voted upon, regardless of the estimate of dollar rate of tax levy
carried in said proposition. In the case of a school district or fire
protection district proposition for a particular period, the dollar
amount and the corresponding estimate of the dollar rate of tax levy
shall be set forth for each of the years in that period. The dollar
amount for each annual levy in the particular period may be equal or in
different amounts.
NEW SECTION. Sec. 30 The following acts or parts of acts are
each repealed:
(1) RCW 84.55.012 (Reduction of property tax levy -- Setting amount
of future levies) and 1997 c 2 s 1 & 1995 2nd sp.s. c 13 s 2; and
(2) RCW 84.55.0121 (Reduction of property tax levy for collection
in 1998) and 1997 c 3 s 301.
Sec. 31 2006 c 84 s 9 (uncodified) is amended to read as follows:
(1)(a) Sections 2 through 8, chapter 84, Laws of 2006 and section
24, chapter ..., Laws of 2007 (section 24 of this act) are contingent
upon the siting, expansion, or renovation, and commercial operation of
a significant semiconductor materials fabrication facility or
facilities in the state of Washington.
(b) For the purposes of this section:
(i) "Commercial operation" means the equipment and process
qualifications in the new, expanded, or renovated building are
completed and production for sale has begun.
(ii) "Semiconductor materials fabrication" means the manufacturing
of silicon crystals, silicon ingots that are at least three hundred
millimeters in diameter, raw polished semiconductor wafers that are at
least three hundred millimeters in diameter, and compound semiconductor
wafers that are at least three hundred millimeters in diameter.
(iii) "Significant" means that the combined investment or
investments by a single person, occurring at any time before the
effective date of ((this act)) sections 2 through 8, chapter 84, Laws
of 2006, of new buildings, expansion or renovation of existing
buildings, tenant improvements to buildings, and machinery and
equipment in the buildings, at the commencement of commercial
production, is at least three hundred fifty million dollars based on
actual expenditures by the person.
(2) Except for section 1 of this act and this section, this act
takes effect the first day of the month immediately following the
department's determination that the contingency in subsection (1) of
this section has occurred. The department shall make its determination
regarding the contingency in subsection (1) of this section based on
information provided to the department by affected taxpayers or
representatives of affected taxpayers.
(3) The department of revenue shall provide notice of the effective
date of ((this act)) sections 2 through 8, chapter 84, Laws of 2006 to
affected taxpayers, the legislature, the office of the code reviser,
and others as deemed appropriate by the department.
NEW SECTION. Sec. 32 Section 5 of this act takes effect July 1,
2011.
NEW SECTION. Sec. 33 Section 10 of this act expires if the
contingency in section 31 of this act occurs.
NEW SECTION. Sec. 34 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.