BILL REQ. #: S-2495.1
| State of Washington | 60th Legislature | 2007 Regular Session |
READ FIRST TIME 03/05/07.
AN ACT Relating to the sales and use taxation of grain elevators; amending RCW 82.08.820, 82.08.820, 82.08.820, 82.12.820, 82.12.820, and 82.12.820; providing effective dates; providing expiration dates; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.08.820 and 2006 c 354 s 10 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses ((or)), grain elevators, or grain exporting facilities, and
retailers who own or operate distribution centers, and who have paid
the tax levied by RCW 82.08.020 on:
(a) Material-handling and racking equipment, grain exporting
facility equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment;
or
(b) Construction of a warehouse ((or)), grain elevator, or grain
exporting facility, including materials, and including service and
labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Construction" means the actual construction of a warehouse
((or)), grain elevator, or grain exporting facility that did not exist
before the construction began. "Construction" includes expansion if
the expansion adds at least two hundred thousand square feet of
additional space to an existing warehouse or additional storage
capacity of at least one million bushels to an existing grain elevator
or grain exporting facility. "Construction" does not include
renovation, remodeling, or repair;
(c) "Department" means the department of revenue;
(d) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(e) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(f) "Grain elevator" means a structure used for storage and
handling of grain in bulk. Grain elevator does not include a grain
exporting facility;
(g) "Grain exporting facility" means one or more contiguous parcels
of real property with one or more grain exporting facility structures
constructed after January 1, 2007, with a total bushel capacity in
excess of three million;
(h) "Grain exporting facility equipment" means equipment located at
a grain exporting facility that is primarily used to handle, store,
organize, convey, package, or repackage grain, oil seeds, and
byproducts thereof in bulk to, from, or within grain exporting facility
structures. The term includes tangible personal property with a useful
life of one year or more that becomes an ingredient or component of the
equipment, including repair and replacement parts. The term does not
include equipment in offices, lunchrooms, restrooms, and other like
space, within a grain exporting facility, or equipment used for
purposes other than handling, storing, organizing, conveying,
packaging, or repackaging grain, oil seeds, and byproducts thereof.
"Grain exporting facility equipment" includes but is not limited to:
Conveyers, carousels, lifts, positioners, pick-up-and-place units,
cranes, hoists, mechanical arms, and robots; mechanized systems,
including containers that are an integral part of the system, whose
purpose is to lift or move tangible personal property; and automated
handling, storage, and retrieval systems, including computers that
control them, whose purpose is to lift or move tangible personal
property; forklifts and other off-the-road vehicles that are used to
lift or move tangible personal property and that cannot be operated
legally on roads and streets; and conveying systems, chutes, shelves,
racks, bins, drawers, pallets, and other containers and storage devices
that form a necessary part of the storage system;
(i) "Grain exporting facility structure" means storage silos,
tanks, conveyers, scale towers, bins, electrical improvements, scales,
foundations and supports, off-load pits, rails and railbeds, and other
buildings primarily used to handle, store, organize, or convey grain,
oil seeds, and byproducts thereof in bulk. Office space, lunchrooms,
restrooms, maintenance buildings, and other space necessary for the
operation of the grain exporting facility are considered part of the
grain exporting facility structures as are loading docks and other such
space or structures attached or adjacent to the conveyers and used for
handling of grain, oil seeds, and byproducts thereof. A structure may
have more than one storage area. Landscaping and parking lots are not
considered part of the grain exporting facility structure. A storage
yard is not a grain exporting facility structure, nor is a structure in
which manufacturing takes place;
(j) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(((h))) (k) "Person" has the meaning given in RCW 82.04.030;
(((i))) (l) "Retailer" means a person who makes "sales at retail"
as defined in chapter 82.04 RCW of tangible personal property;
(((j))) (m) "Square footage" means the product of the two
horizontal dimensions of each floor of a specific warehouse. The
entire footprint of the warehouse shall be measured in calculating the
square footage, including space that juts out from the building profile
such as loading docks. "Square footage" does not mean the aggregate of
the square footage of more than one warehouse at a location or the
aggregate of the square footage of warehouses at more than one
location;
(((k))) (n) "Third-party warehouser" means a person taxable under
RCW 82.04.280(4);
(((l))) (o) "Warehouse" means an enclosed building or structure in
which finished goods are stored. A warehouse building or structure may
have more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(((m))) (p) "Wholesaler" means a person who makes "sales at
wholesale" as defined in chapter 82.04 RCW of tangible personal
property, but "wholesaler" does not include a person who makes sales
exempt under RCW 82.04.330.
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more and for grain elevators with bushel capacity of two million or
more, the remittance is equal to one hundred percent of the amount of
tax paid for qualifying construction, materials, service, and labor,
and fifty percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment. For grain exporting facilities, the
remittance is equal to one hundred percent of the amount of tax paid
for qualifying construction, materials, service, and labor, and fifty
percent of the amount of tax paid for qualifying grain exporting
facility equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment and
grain exporting facility equipment; location and size of warehouses
((and)), grain elevators, and grain exporting facilities; and
construction invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, ((and)) grain exporting
facilities, material-handling equipment and racking equipment, and
grain exporting facility equipment for which an exemption, credit, or
deferral has been or is being received under chapter 82.60, 82.62, or
82.63 RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. ((Warehouses and grain elevators upon
which construction was initiated before May 20, 1997, are not eligible
for a remittance under this section.))
(5) The lessor or owner of a warehouse ((or)), grain elevator, or
grain exporting facility is not eligible for a remittance under this
section unless the underlying ownership of the warehouse ((or)), grain
elevator, or grain exporting facility, and the material-handling
equipment and racking equipment and grain exporting facility equipment
vests exclusively in the same person, or unless the lessor by written
contract agrees to pass the economic benefit of the remittance to the
lessee in the form of reduced rent payments.
Sec. 2 RCW 82.08.820 and 2006 c 354 s 11 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses ((or)), grain elevators, or grain exporting facilities and
retailers who own or operate distribution centers, and who have paid
the tax levied by RCW 82.08.020 on:
(a) Material-handling and racking equipment, grain exporting
facility equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment;
or
(b) Construction of a warehouse ((or)), grain elevator, or grain
exporting facility, including materials, and including service and
labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Cold storage warehouse" has the meaning provided in RCW
82.74.010;
(c) "Construction" means the actual construction of a warehouse
((or)), grain elevator, or grain exporting facility that did not exist
before the construction began. "Construction" includes expansion if
the expansion adds at least twenty-five thousand square feet of
additional space to an existing cold storage warehouse, at least two
hundred thousand square feet of additional space to an existing
warehouse other than a cold storage warehouse, or additional storage
capacity of at least one million bushels to an existing grain elevator
or grain exporting facility. "Construction" does not include
renovation, remodeling, or repair;
(d) "Department" means the department of revenue;
(e) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(f) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(g) "Grain elevator" means a structure used for storage and
handling of grain in bulk. Grain elevator does not include a grain
exporting facility;
(h) "Grain exporting facility" means one or more contiguous parcels
of real property with one or more grain exporting facility structures
constructed after January 1, 2007, with a total bushel capacity in
excess of three million;
(i) "Grain exporting facility equipment" means equipment located at
a grain exporting facility that is primarily used to handle, store,
organize, convey, package, or repackage grain, oil seeds, and
byproducts thereof in bulk to, from, or within grain exporting facility
structures. The term includes tangible personal property with a useful
life of one year or more that becomes an ingredient or component of the
equipment, including repair and replacement parts. The term does not
include equipment in offices, lunchrooms, restrooms, and other like
space, within a grain exporting facility, or equipment used for
purposes other than handling, storing, organizing, conveying,
packaging, or repackaging grain, oil seeds, and byproducts thereof.
"Grain exporting facility equipment" includes but is not limited to:
Conveyers, carousels, lifts, positioners, pick-up-and-place units,
cranes, hoists, mechanical arms, and robots; mechanized systems,
including containers that are an integral part of the system, whose
purpose is to lift or move tangible personal property; and automated
handling, storage, and retrieval systems, including computers that
control them, whose purpose is to lift or move tangible personal
property; forklifts and other off-the-road vehicles that are used to
lift or move tangible personal property and that cannot be operated
legally on roads and streets; and conveying systems, chutes, shelves,
racks, bins, drawers, pallets, and other containers and storage devices
that form a necessary part of the storage system;
(j) "Grain exporting facility structure" means storage silos,
tanks, conveyers, scale towers, bins, electrical improvements, scales,
foundations and supports, off-load pits, rails and railbeds, and other
buildings primarily used to handle, store, organize, or convey grain,
oil seeds, and byproducts thereof in bulk. Office space, lunchrooms,
restrooms, maintenance buildings, and other space necessary for the
operation of the grain exporting facility are considered part of the
grain exporting facility structures as are loading docks and other such
space or structures attached or adjacent to the conveyers and used for
handling of grain, oil seeds, and byproducts thereof. A structure may
have more than one storage area. Landscaping and parking lots are not
considered part of the grain exporting facility structure. A storage
yard is not a grain exporting facility structure, nor is a structure in
which manufacturing takes place;
(k) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(((i))) (l) "Person" has the meaning given in RCW 82.04.030;
(((j))) (m) "Retailer" means a person who makes "sales at retail"
as defined in chapter 82.04 RCW of tangible personal property;
(((k))) (n) "Square footage" means the product of the two
horizontal dimensions of each floor of a specific warehouse. The
entire footprint of the warehouse shall be measured in calculating the
square footage, including space that juts out from the building profile
such as loading docks. "Square footage" does not mean the aggregate of
the square footage of more than one warehouse at a location or the
aggregate of the square footage of warehouses at more than one
location;
(((l))) (o) "Third-party warehouser" means a person taxable under
RCW 82.04.280(4);
(((m))) (p) "Warehouse" means an enclosed building or structure in
which finished goods are stored. A warehouse building or structure may
have more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(((n))) (q) "Wholesaler" means a person who makes "sales at
wholesale" as defined in chapter 82.04 RCW of tangible personal
property, but "wholesaler" does not include a person who makes sales
exempt under RCW 82.04.330.
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more, other than cold storage warehouses, and for grain elevators with
bushel capacity of two million or more, the remittance is equal to one
hundred percent of the amount of tax paid for qualifying construction,
materials, service, and labor, and fifty percent of the amount of tax
paid for qualifying material-handling equipment and racking equipment,
and labor and services rendered in respect to installing, repairing,
cleaning, altering, or improving the equipment. For cold storage
warehouses with square footage of twenty-five thousand or more, the
remittance is equal to one hundred percent of the amount of tax paid
for qualifying construction, materials, service, and labor, and one
hundred percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment. For grain exporting facilities, the
remittance is equal to one hundred percent of the amount of tax paid
for qualifying construction, materials, service, and labor, and fifty
percent of the amount of tax paid for qualifying grain exporting
facility equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment and
grain exporting facility equipment; location and size of warehouses
((and)), grain elevators, and grain exporting facilities; and
construction invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, ((and)) grain exporting
facilities, material-handling equipment and racking equipment, and
grain exporting facility equipment for which an exemption, credit, or
deferral has been or is being received under chapter 82.60, 82.62, or
82.63 RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. ((Warehouses and grain elevators upon
which construction was initiated before May 20, 1997, are not eligible
for a remittance under this section.))
(5) The lessor or owner of a warehouse ((or)), grain elevator, or
grain exporting facility is not eligible for a remittance under this
section unless the underlying ownership of the warehouse ((or)), grain
elevator, or grain exporting facility, and the material-handling
equipment and racking equipment and grain exporting facility equipment
vests exclusively in the same person, or unless the lessor by written
contract agrees to pass the economic benefit of the remittance to the
lessee in the form of reduced rent payments.
Sec. 3 RCW 82.08.820 and 2006 c 354 s 12 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses ((or)), grain elevators, or grain exporting facilities and
retailers who own or operate distribution centers, and who have paid
the tax levied by RCW 82.08.020 on:
(a) Material-handling and racking equipment, grain exporting
facility equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment;
or
(b) Construction of a warehouse ((or)), grain elevator, or grain
exporting facility, including materials, and including service and
labor costs,
are eligible for an exemption in the form of a remittance. The amount
of the remittance is computed under subsection (3) of this section and
is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820:
(a) "Agricultural products" has the meaning given in RCW 82.04.213;
(b) "Construction" means the actual construction of a warehouse
((or)), grain elevator, or grain exporting facility that did not exist
before the construction began. "Construction" includes expansion if
the expansion adds at least two hundred thousand square feet of
additional space to an existing warehouse or additional storage
capacity of at least one million bushels to an existing grain elevator
or grain exporting facility. "Construction" does not include
renovation, remodeling, or repair;
(c) "Department" means the department of revenue;
(d) "Distribution center" means a warehouse that is used
exclusively by a retailer solely for the storage and distribution of
finished goods to retail outlets of the retailer. "Distribution
center" does not include a warehouse at which retail sales occur;
(e) "Finished goods" means tangible personal property intended for
sale by a retailer or wholesaler. "Finished goods" does not include
agricultural products stored by wholesalers, third-party warehouses, or
retailers if the storage takes place on the land of the person who
produced the agricultural product. "Finished goods" does not include
logs, minerals, petroleum, gas, or other extracted products stored as
raw materials or in bulk;
(f) "Grain elevator" means a structure used for storage and
handling of grain in bulk. Grain elevator does not include a grain
exporting facility;
(g) "Grain exporting facility" means one or more contiguous parcels
of real property with one or more grain exporting facility structures
constructed after January 1, 2007, with a total bushel capacity in
excess of three million;
(h) "Grain exporting facility equipment" means equipment located at
a grain exporting facility that is primarily used to handle, store,
organize, convey, package, or repackage grain, oil seeds, and
byproducts thereof in bulk to, from, or within grain exporting facility
structures. The term includes tangible personal property with a useful
life of one year or more that becomes an ingredient or component of the
equipment, including repair and replacement parts. The term does not
include equipment in offices, lunchrooms, restrooms, and other like
space, within a grain exporting facility, or equipment used for
purposes other than handling, storing, organizing, conveying,
packaging, or repackaging grain, oil seeds, and byproducts thereof.
"Grain exporting facility equipment" includes but is not limited to:
Conveyers, carousels, lifts, positioners, pick-up-and-place units,
cranes, hoists, mechanical arms, and robots; mechanized systems,
including containers that are an integral part of the system, whose
purpose is to lift or move tangible personal property; and automated
handling, storage, and retrieval systems, including computers that
control them, whose purpose is to lift or move tangible personal
property; forklifts and other off-the-road vehicles that are used to
lift or move tangible personal property and that cannot be operated
legally on roads and streets; and conveying systems, chutes, shelves,
racks, bins, drawers, pallets, and other containers and storage devices
that form a necessary part of the storage system;
(i) "Grain exporting facility structure" means storage silos,
tanks, conveyers, scale towers, bins, electrical improvements, scales,
foundations and supports, off-load pits, rails and railbeds, and other
buildings primarily used to handle, store, organize, or convey grain,
oil seeds, and byproducts thereof in bulk. Office space, lunchrooms,
restrooms, maintenance buildings, and other space necessary for the
operation of the grain exporting facility are considered part of the
grain exporting facility structures as are loading docks and other such
space or structures attached or adjacent to the conveyers and used for
handling of grain, oil seeds, and byproducts thereof. A structure may
have more than one storage area. Landscaping and parking lots are not
considered part of the grain exporting facility structure. A storage
yard is not a grain exporting facility structure, nor is a structure in
which manufacturing takes place;
(j) "Material-handling equipment and racking equipment" means
equipment in a warehouse or grain elevator that is primarily used to
handle, store, organize, convey, package, or repackage finished goods.
The term includes tangible personal property with a useful life of one
year or more that becomes an ingredient or component of the equipment,
including repair and replacement parts. The term does not include
equipment in offices, lunchrooms, restrooms, and other like space,
within a warehouse or grain elevator, or equipment used for
nonwarehousing purposes. "Material-handling equipment" includes but is
not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized
systems, including containers that are an integral part of the system,
whose purpose is to lift or move tangible personal property; and
automated handling, storage, and retrieval systems, including computers
that control them, whose purpose is to lift or move tangible personal
property; and forklifts and other off-the-road vehicles that are used
to lift or move tangible personal property and that cannot be operated
legally on roads and streets. "Racking equipment" includes, but is not
limited to, conveying systems, chutes, shelves, racks, bins, drawers,
pallets, and other containers and storage devices that form a necessary
part of the storage system;
(((h))) (k) "Person" has the meaning given in RCW 82.04.030;
(((i))) (l) "Retailer" means a person who makes "sales at retail"
as defined in chapter 82.04 RCW of tangible personal property;
(((j))) (m) "Square footage" means the product of the two
horizontal dimensions of each floor of a specific warehouse. The
entire footprint of the warehouse shall be measured in calculating the
square footage, including space that juts out from the building profile
such as loading docks. "Square footage" does not mean the aggregate of
the square footage of more than one warehouse at a location or the
aggregate of the square footage of warehouses at more than one
location;
(((k))) (n) "Third-party warehouser" means a person taxable under
RCW 82.04.280(4);
(((l))) (o) "Warehouse" means an enclosed building or structure in
which finished goods are stored. A warehouse building or structure may
have more than one storage room and more than one floor. Office space,
lunchrooms, restrooms, and other space within the warehouse and
necessary for the operation of the warehouse are considered part of the
warehouse as are loading docks and other such space attached to the
building and used for handling of finished goods. Landscaping and
parking lots are not considered part of the warehouse. A storage yard
is not a warehouse, nor is a building in which manufacturing takes
place; and
(((m))) (p) "Wholesaler" means a person who makes "sales at
wholesale" as defined in chapter 82.04 RCW of tangible personal
property, but "wholesaler" does not include a person who makes sales
exempt under RCW 82.04.330.
(3)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.08.020. The buyer may then apply to the department for remittance
of all or part of the tax paid under RCW 82.08.020. For grain
elevators with bushel capacity of one million but less than two
million, the remittance is equal to fifty percent of the amount of tax
paid. For warehouses with square footage of two hundred thousand or
more and for grain elevators with bushel capacity of two million or
more, the remittance is equal to one hundred percent of the amount of
tax paid for qualifying construction, materials, service, and labor,
and fifty percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment. For grain exporting facilities, the
remittance is equal to one hundred percent of the amount of tax paid
for qualifying construction, materials, service, and labor, and fifty
percent of the amount of tax paid for qualifying grain exporting
facility equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment and
grain exporting facility equipment; location and size of warehouses
((and)), grain elevators, and grain exporting facilities; and
construction invoices and documents.
(c) The department shall on a quarterly basis remit exempted
amounts to qualifying persons who submitted applications during the
previous quarter.
(4) Warehouses, grain elevators, ((and)) grain exporting
facilities, material-handling equipment and racking equipment, and
grain exporting facility equipment for which an exemption, credit, or
deferral has been or is being received under chapter 82.60, 82.62, or
82.63 RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. ((Warehouses and grain elevators upon
which construction was initiated before May 20, 1997, are not eligible
for a remittance under this section.))
(5) The lessor or owner of a warehouse ((or)), grain elevator, or
grain exporting facility is not eligible for a remittance under this
section unless the underlying ownership of the warehouse ((or)), grain
elevator, or grain exporting facility and the material-handling
equipment and racking equipment and grain exporting facility equipment
vests exclusively in the same person, or unless the lessor by written
contract agrees to pass the economic benefit of the remittance to the
lessee in the form of reduced rent payments.
Sec. 4 RCW 82.12.820 and 2003 c 5 s 13 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses ((or)), grain elevators, or grain exporting facilities and
retailers who own or operate distribution centers, and who have paid
the tax levied under RCW 82.12.020 on:
(a) Material-handling equipment and racking equipment, grain
exporting facility equipment, and labor and services rendered in
respect to installing, repairing, cleaning, altering, or improving the
equipment; or
(b) Materials incorporated in the construction of a warehouse
((or)), grain elevator, or grain exporting facility are eligible for an
exemption on tax paid in the form of a remittance or credit against tax
owed. The amount of the remittance or credit is computed under
subsection (2) of this section and is based on the state share of use
tax.
(2)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.12.020 to the department. The person may then apply to the
department for remittance of all or part of the tax paid under RCW
82.12.020. For grain elevators with bushel capacity of one million but
less than two million, the remittance is equal to fifty percent of the
amount of tax paid. For warehouses with square footage of two hundred
thousand and for grain elevators with bushel capacity of two million or
more, the remittance is equal to one hundred percent of the amount of
tax paid for qualifying construction materials, and fifty percent of
the amount of tax paid for qualifying material-handling equipment and
racking equipment, and labor and services rendered in respect to
installing, repairing, cleaning, altering, or improving the equipment.
For grain exporting facilities, the remittance is equal to one hundred
percent of the amount of tax paid for qualifying construction
materials, and fifty percent of the amount of tax paid for qualifying
grain exporting facility equipment, and labor and services rendered in
respect to installing, repairing, cleaning, altering, or improving the
equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment and
grain exporting facility equipment; location and size of warehouses, if
applicable; and construction invoices and documents.
(c) The department shall on a quarterly basis remit or credit
exempted amounts to qualifying persons who submitted applications
during the previous quarter.
(3) Warehouse, grain elevators, ((and)) grain exporting facilities,
material-handling equipment and racking equipment, and grain exporting
facility equipment for which an exemption, credit, or deferral has been
or is being received under chapter 82.60, ((82.61,)) 82.62, or 82.63
RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. ((Materials incorporated in warehouses
and grain elevators upon which construction was initiated prior to May
20, 1997, are not eligible for a remittance under this section.))
(4) The lessor or owner of the warehouse ((or)), grain elevator, or
grain exporting facility is not eligible for a remittance or credit
under this section unless the underlying ownership of the warehouse
((or)), grain elevator, or grain exporting facility and material-handling equipment and racking equipment and grain exporting facility
equipment vests exclusively in the same person, or unless the lessor by
written contract agrees to pass the economic benefit of the exemption
to the lessee in the form of reduced rent payments.
(5) The definitions in RCW 82.08.820 apply to this section.
Sec. 5 RCW 82.12.820 and 2005 c 513 s 12 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses ((or)), grain elevators, or grain exporting facilities, and
retailers who own or operate distribution centers, and who have paid
the tax levied under RCW 82.12.020 on:
(a) Material-handling equipment and racking equipment, grain
exporting facility equipment, and labor and services rendered in
respect to installing, repairing, cleaning, altering, or improving the
equipment; or
(b) Materials incorporated in the construction of a warehouse
((or)), grain elevator, or grain exporting facility are eligible for an
exemption on tax paid in the form of a remittance or credit against tax
owed. The amount of the remittance or credit is computed under
subsection (2) of this section and is based on the state share of use
tax.
(2)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.12.020 to the department. The person may then apply to the
department for remittance of all or part of the tax paid under RCW
82.12.020. For grain elevators with bushel capacity of one million but
less than two million, the remittance is equal to fifty percent of the
amount of tax paid. For warehouses with square footage of two hundred
thousand or more, other than cold storage warehouses, and for grain
elevators with bushel capacity of two million or more, the remittance
is equal to one hundred percent of the amount of tax paid for
qualifying construction materials, and fifty percent of the amount of
tax paid for qualifying material-handling equipment and racking
equipment, and labor and services rendered in respect to installing,
repairing, cleaning, altering, or improving the equipment. For cold
storage warehouses with square footage of twenty-five thousand or more,
the remittance is equal to one hundred percent of the amount of tax
paid for qualifying construction, materials, ((service, and labor,))
and one hundred percent of the amount of tax paid for qualifying
material-handling equipment and racking equipment, and labor and
services rendered in respect to installing, repairing, cleaning,
altering, or improving the equipment. For grain exporting facilities,
the remittance is equal to one hundred percent of the amount of tax
paid for qualifying construction materials, and fifty percent of the
amount of tax paid for qualifying grain exporting facility equipment,
and labor and services rendered in respect to installing, repairing,
cleaning, altering, or improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment and
grain exporting facility equipment; location and size of warehouses, if
applicable; and construction invoices and documents.
(c) The department shall on a quarterly basis remit or credit
exempted amounts to qualifying persons who submitted applications
during the previous quarter.
(3) Warehouse, grain elevators, ((and)) grain exporting facilities,
material-handling equipment and racking equipment, and grain exporting
facility equipment for which an exemption, credit, or deferral has been
or is being received under chapter 82.60, ((82.61,)) 82.62, or 82.63
RCW or RCW 82.08.02565 or 82.12.02565 are not eligible for any
remittance under this section. ((Materials incorporated in warehouses
and grain elevators upon which construction was initiated prior to May
20, 1997, are not eligible for a remittance under this section.))
(4) The lessor or owner of the warehouse ((or)), grain elevator, or
grain exporting facility is not eligible for a remittance or credit
under this section unless the underlying ownership of the warehouse
((or)), grain elevator, or grain exporting facility and material-handling equipment and racking equipment and grain exporting facility
equipment vests exclusively in the same person, or unless the lessor by
written contract agrees to pass the economic benefit of the exemption
to the lessee in the form of reduced rent payments.
(5) The definitions in RCW 82.08.820 apply to this section.
Sec. 6 RCW 82.12.820 and 2006 c 354 s 13 are each amended to read
as follows:
(1) Wholesalers or third-party warehousers who own or operate
warehouses ((or)), grain elevators, or grain exporting facilities, and
retailers who own or operate distribution centers, and who have paid
the tax levied under RCW 82.12.020 on:
(a) Material-handling equipment and racking equipment, grain
exporting facility equipment, and labor and services rendered in
respect to installing, repairing, cleaning, altering, or improving the
equipment; or
(b) Materials incorporated in the construction of a warehouse
((or)), grain elevator, or grain exporting facility are eligible for an
exemption on tax paid in the form of a remittance or credit against tax
owed. The amount of the remittance or credit is computed under
subsection (2) of this section and is based on the state share of use
tax.
(2)(a) A person claiming an exemption from state tax in the form of
a remittance under this section must pay the tax imposed by RCW
82.12.020 to the department. The person may then apply to the
department for remittance of all or part of the tax paid under RCW
82.12.020. For grain elevators with bushel capacity of one million but
less than two million, the remittance is equal to fifty percent of the
amount of tax paid. For warehouses with square footage of two hundred
thousand or more and for grain elevators with bushel capacity of two
million or more, the remittance is equal to one hundred percent of the
amount of tax paid for qualifying construction materials, and fifty
percent of the amount of tax paid for qualifying material-handling
equipment and racking equipment, and labor and services rendered in
respect to installing, repairing, cleaning, altering, or improving the
equipment. For grain exporting facilities, the remittance is equal to
one hundred percent of the amount of tax paid for qualifying
construction materials, and fifty percent of the amount of tax paid for
qualifying grain exporting facility equipment, and labor and services
rendered in respect to installing, repairing, cleaning, altering, or
improving the equipment.
(b) The department shall determine eligibility under this section
based on information provided by the buyer and through audit and other
administrative records. The buyer shall on a quarterly basis submit an
information sheet, in a form and manner as required by the department
by rule, specifying the amount of exempted tax claimed and the
qualifying purchases or acquisitions for which the exemption is
claimed. The buyer shall retain, in adequate detail to enable the
department to determine whether the equipment or construction meets the
criteria under this section: Invoices; proof of tax paid; documents
describing the material-handling equipment and racking equipment and
grain exporting facility equipment; location and size of warehouses, if
applicable; and construction invoices and documents.
(c) The department shall on a quarterly basis remit or credit
exempted amounts to qualifying persons who submitted applications
during the previous quarter.
(3) Warehouse, grain elevators, ((and)) grain exporting facilities,
material-handling equipment and racking equipment, and grain exporting
facility equipment for which an exemption, credit, or deferral has been
or is being received under chapter 82.60, 82.62, or 82.63 RCW or RCW
82.08.02565 or 82.12.02565 are not eligible for any remittance under
this section. ((Materials incorporated in warehouses and grain
elevators upon which construction was initiated prior to May 20, 1997,
are not eligible for a remittance under this section.))
(4) The lessor or owner of the warehouse ((or)), grain elevator, or
grain exporting facility is not eligible for a remittance or credit
under this section unless the underlying ownership of the warehouse
((or)), grain elevator, or grain exporting facility and material-handling equipment and racking equipment and grain exporting facility
equipment vests exclusively in the same person, or unless the lessor by
written contract agrees to pass the economic benefit of the exemption
to the lessee in the form of reduced rent payments.
(5) The definitions in RCW 82.08.820 apply to this section.
NEW SECTION. Sec. 7 Sections 1 and 4 of this act are necessary
for the immediate preservation of the public peace, health, or safety,
or support of the state government and its existing public
institutions, and take effect immediately.
NEW SECTION. Sec. 8 Sections 2 and 5 of this act are necessary
for the immediate preservation of the public peace, health, or safety,
or support of the state government and its existing public
institutions, and take effect July 1, 2007.
NEW SECTION. Sec. 9 Sections 3 and 6 of this act take effect
July 1, 2012.
NEW SECTION. Sec. 10 Sections 1 and 4 of this act expire July 1,
2007.
NEW SECTION. Sec. 11 Sections 2 and 5 of this act expire July 1,
2012.