BILL REQ. #: S-4571.1
| State of Washington | 60th Legislature | 2008 Regular Session |
Read first time 01/25/08. Referred to Committee on Ways & Means.
AN ACT Relating to the excise taxation of the aerospace industry; amending RCW 82.08.975, 82.12.975, 82.04.250, 82.04.250, 82.04.290, 82.04.4461, 82.04.4463, 82.04.44525, 82.32.545, 82.32.330, and 82.32.550; reenacting and amending RCW 82.04.260, 82.32.590, and 82.32.600; creating new sections; repealing RCW 82.04.4487, 82.08.981, 82.12.981, 82.32.635, and 82.32.640; providing effective dates; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that the aerospace
industry provides good wages and benefits for the thousands of
engineers, mechanics, support staff, and other employees working
directly in the industry throughout the state. The legislature further
finds that suppliers and vendors that support the aerospace industry in
turn provide a range of well-paying jobs. In 2003, and again in 2006,
the legislature determined it was in the public interest to encourage
the continued presence of this industry through the provision of tax
incentives.
However, the legislature recognizes that key elements of
Washington's aerospace industry cluster were afforded few, if any, of
the aerospace tax incentives enacted in 2003 and 2006. The
comprehensive tax incentives in this act are intended to more
comprehensively address the cost of doing business in Washington state
compared to locations in other states for a larger segment of the
aerospace industry cluster.
Sec. 2 RCW 82.08.975 and 2003 2nd sp.s. c 1 s 9 are each amended
to read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of
computer hardware, computer peripherals, or software, not otherwise
eligible for exemption under RCW 82.08.02565, ((to a manufacturer or
processor for hire of commercial airplanes or components of such
airplanes,)) used primarily in the development, design, and engineering
of ((such)) aerospace products or in providing aerospace services, or
to sales of or charges made for labor and services rendered in respect
to installing the computer hardware, computer peripherals, or software.
(2) 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.
(((2))) (3) As used in this section, (("commercial airplane" and
"component" have the meanings given in RCW 82.32.550)) the following
definitions apply:
(a) "Aerospace products" means:
(i) Commercial airplanes and their components;
(ii) Machinery and equipment that is designed and used primarily
for the maintenance, repair, overhaul, or refurbishing of commercial
airplanes or their components by federal aviation regulation part 145
certificated repair stations; and
(iii) Tooling specifically designed for use in manufacturing
commercial airplanes or their components.
(b) "Aerospace services" means the maintenance, repair, overhaul,
or refurbishing of commercial airplanes or their components, but only
when such services are performed by a FAR part 145 certificated repair
station.
(c) "Commercial airplane" and "component" have the same meanings
provided in RCW 82.32.550.
(d) "Peripherals" includes keyboards, monitors, mouse devices, and
other accessories that operate outside of the computer, excluding
cables, conduit, wiring, and other similar property.
(((3))) (4) This section expires July 1, 2024.
Sec. 3 RCW 82.12.975 and 2003 2nd sp.s. c 1 s 10 are each amended
to read as follows:
(1) The provisions of this chapter shall not apply in respect to
the use of computer hardware, computer peripherals, or software, not
otherwise eligible for exemption under RCW 82.12.02565, ((by a
manufacturer or processor for hire of commercial airplanes or
components of such airplanes,)) used primarily in the development,
design, and engineering of ((such)) aerospace products or in providing
aerospace services, or to the use of labor and services rendered in
respect to installing the computer hardware, computer peripherals, or
software.
(2) As used in this section, (("commercial airplane" and
"component")) "peripherals," "aerospace products," and "aerospace
services" have the same meanings ((given in RCW 82.32.550.
"Peripherals" includes keyboards, monitors, mouse devices, and other
accessories that operate outside of the computer, excluding cables,
conduit, wiring, and other similar property)) as provided in RCW
82.08.975.
(3) This section expires July 1, 2024.
Sec. 4 RCW 82.04.260 and 2007 c 54 s 6 and 2007 c 48 s 2 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 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, or making sales, at retail
or wholesale, of commercial airplanes or components of such airplanes,
manufactured by the seller, 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 and the gross proceeds of
sales 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)) July 1, 2008, upon every person
who is not eligible to report under the provisions of (a) of this
subsection (11) and is engaging within this state in the business of
manufacturing tooling specifically designed for use in manufacturing
commercial airplanes or components of such airplanes, or making sales,
at retail or wholesale, of ((commercial airplanes, or components of
such airplanes, manufactured by that person)) such tooling manufactured
by the seller, 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 and the gross proceeds of sales of
the ((airplanes or components)) 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 ((
(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)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((,))" and "component((,))" ((and "final assembly of a
superefficient airplane")) have the same meanings ((given)) as provided
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 on and 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) Until July 1, 2024, upon every person engaging within this
state in the business of selling standing timber; as to such persons
the amount of the tax with respect to the business shall be equal to
the gross income of the business multiplied by the rate of 0.2904
percent. For purposes of this subsection (12)(d), "selling standing
timber" means the sale of timber apart from the land, where the buyer
is required to sever the timber within thirty months from the date of
the original contract, regardless of the method of payment for the
timber and whether title to the timber transfers before, upon, or after
severance.
(e) For purposes of this subsection, the following definitions
apply:
(i) "Paper and paper products" means products made of interwoven
cellulosic fibers held together largely by hydrogen bonding. "Paper
and paper products" includes newsprint; office, printing, fine, and
pressure-sensitive papers; paper napkins, towels, and toilet tissue;
kraft bag, construction, and other kraft industrial papers; paperboard,
liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and
related types of cellulosic products containing primarily, by weight or
volume, cellulosic materials. "Paper and paper products" does not
include books, newspapers, magazines, periodicals, and other printed
publications, advertising materials, calendars, and similar types of
printed materials.
(ii) "Timber" means forest trees, standing or down, on privately or
publicly owned land. "Timber" does not include Christmas trees that
are cultivated by agricultural methods or short-rotation hardwoods as
defined in RCW 84.33.035.
(iii) "Timber products" means logs, wood chips, sawdust, wood
waste, and similar products obtained wholly from the processing of
timber, short-rotation hardwoods as defined in RCW 84.33.035, or both;
and pulp, including market pulp and pulp derived from recovered paper
or paper products.
(iv) "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. 5 RCW 82.04.250 and 2006 c 177 s 5 are each amended to read
as follows:
(1) Upon every person 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(11) or
subsection (3) of this section, 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.
(3) Upon every person classified by the federal aviation
administration as a federal aviation regulation part 145 certificated
repair station and that is 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, ((that is classified by the federal aviation administration
as a FAR part 145 certificated repair station with airframe and
instrument ratings and limited ratings for nondestructive testing,
radio, Class 3 Accessory, and specialized services,)) 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 .2904 percent.
Sec. 6 RCW 82.04.250 and 2007 c 54 s 5 are each amended to read
as follows:
(1) Upon every person 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(11) or
subsection (3) of this section, 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.
(3) Upon every person classified by the federal aviation
administration as a federal aviation regulation part 145 certificated
repair station and that is 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, 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 .2904 percent.
Sec. 7 RCW 82.04.290 and 2005 c 369 s 8 are each amended to read
as follows:
(1) Upon every person engaging within this state in the business of
providing international investment management services, as to such
persons, the amount of tax with respect to such business shall be equal
to the gross income or gross proceeds of sales of the business
multiplied by a rate of 0.275 percent.
(2)(a) Upon every person engaging within this state in any business
activity other than or in addition to an activity taxed explicitly
under another section in this chapter or subsection (((1))) (3) of this
section; as to such persons the amount of tax on account of such
activities shall be equal to the gross income of the business
multiplied by the rate of 1.5 percent.
(((3))) (b) This subsection (2) ((of this section)) includes, among
others, and without limiting the scope hereof (whether or not title to
materials used in the performance of such business passes to another by
accession, confusion or other than by outright sale), persons engaged
in the business of rendering any type of service which does not
constitute a "sale at retail" or a "sale at wholesale." The value of
advertising, demonstration, and promotional supplies and materials
furnished to an agent by his principal or supplier to be used for
informational, educational and promotional purposes shall not be
considered a part of the agent's remuneration or commission and shall
not be subject to taxation under this section.
(3)(a) Upon every person engaging within this state in the business
of performing aerospace product development for others, as to such
persons, the amount of tax with respect to such business shall be equal
to the gross income of the business multiplied by a rate of 0.9
percent.
(b) "Aerospace product development" has the meaning as provided in
RCW 82.04.4461.
Sec. 8 RCW 82.04.4461 and 2007 c 54 s 11 are each amended to read
as follows:
(1)(a)(i) In computing the tax imposed under this chapter, a credit
is allowed for each person for qualified ((preproduction)) aerospace
product development. For a person who is a manufacturer or processor
for hire of commercial airplanes or components of such airplanes,
credit may be earned for expenditures occurring after December 1, 2003.
For all other persons, credit may be earned only for expenditures
occurring after June 30, 2008.
(ii) For purposes of this subsection, "commercial airplane" and
"component" have the same meanings as provided in RCW 82.32.550.
(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)) aerospace product 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)) aerospace product 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)) a
form prescribed by the department that shall include the amount of the
credit claimed, an estimate of the anticipated ((preproduction))
aerospace product 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.)) "Aerospace product" has the meaning given in
RCW 82.08.975.
(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
(b) "Aerospace product development" means research, design, and
engineering activities performed in relation to the development of
((a)) an aerospace product((,)) or of a product line, model, or model
derivative of an aerospace product, 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))) (c) "Qualified ((preproduction)) aerospace product
development" means ((preproduction)) aerospace product development
performed within this state ((in the field of aeronautics)).
(((e))) (d) "Qualified ((preproduction)) aerospace product
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)) aerospace
product development by a person claiming the credit provided in this
section. The term does not include amounts paid to a person or to the
state and any of its departments and institutions, other than a public
educational or research institution to conduct qualified
((preproduction)) aerospace product development. The term does not
include capital costs and overhead, such as expenses for land,
structures, or depreciable property.
(((f))) (e) "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. 9 RCW 82.04.4463 and 2006 c 177 s 10 are each amended to
read as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed for property taxes and leasehold excise taxes paid during the
calendar year.
(2) The credit is equal to:
(a)(i)(A) Property taxes paid on ((new)) buildings, and land upon
which ((this property is)) the buildings are located, ((built))
constructed after December 1, 2003, and used exclusively in
manufacturing commercial airplanes or components of such airplanes; and
(B) Leasehold excise taxes paid with respect to ((a)) buildings
((built)) constructed after January 1, 2006, the land upon which the
buildings ((is)) are located, or both, if the buildings ((is)) are used
exclusively in manufacturing commercial airplanes or components of such
airplanes; and
(C) Property taxes or leasehold excise taxes paid on, or with
respect to, buildings constructed after June 30, 2008, the land upon
which the buildings are located, or both, and used exclusively for
aerospace product development or in providing aerospace services, by
persons not within the scope of (a)(i)(A) and (B) of this subsection
(2) and are: (I) Engaged in manufacturing tooling specifically
designed for use in manufacturing commercial airplanes or their
components; or (II) taxable under RCW 82.04.290(3) or 82.04.250(3); or
(ii) Property taxes attributable to an increase in assessed value
due to the renovation or expansion, after: (A) December 1, 2003, of a
building used exclusively in manufacturing commercial airplanes or
components of such airplanes; and (B) June 30, 2008, of buildings used
exclusively for aerospace product development or in providing aerospace
services, by persons not within the scope of (a)(ii)(A) of this
subsection (2) and are: (I) Engaged in manufacturing tooling
specifically designed for use in manufacturing commercial airplanes or
their components; or (II) taxable under RCW 82.04.290(3) or
82.04.250(3); and
(b) An amount equal to:
(i)(A) Property taxes paid, by persons taxable under RCW
82.04.260(11)(a), on machinery and equipment exempt under RCW
82.08.02565 or 82.12.02565 and acquired after December 1, 2003((,));
(B) Property taxes paid, by persons taxable under RCW
82.04.260(11)(b), on machinery and equipment exempt under RCW
82.08.02565 or 82.12.02565 and acquired after June 30, 2008; or
(C) Property taxes paid, by persons taxable under RCW 82.04.0250(3)
or 82.04.290(3), on computer hardware, computer peripherals, and
software exempt under RCW 82.08.975 or 82.12.975 and acquired after
June 30, 2008.
(ii) For purposes of determining the amount eligible for credit
under (i)(A) and (B) of this subsection (2)(b), the amount of property
taxes paid is multiplied by a fraction.
(I) The numerator of the fraction is the total taxable amount
subject to the tax imposed under RCW 82.04.260(11) ((and)) (a) or (b)
on the applicable business activities of manufacturing commercial
airplanes, components of such airplanes, or tooling specifically
designed for use in the manufacturing of commercial airplanes or
components of such airplanes.
(II) The denominator of the fraction is the total taxable amount
subject to the tax imposed under all manufacturing classifications in
chapter 82.04 RCW((,)).
(III) For purposes of both the numerator and denominator of the
fraction, the total taxable amount refers to the total taxable amount
required to be reported on the person's returns for the calendar year
before the calendar year in which the credit under this section is
earned. The department may provide for an alternative method for
calculating the numerator in cases where the tax rate provided in RCW
82.04.260(11) for manufacturing was not in effect during the full
calendar year before the calendar year in which the credit under this
section is earned.
(IV) No credit is available under (b)(i)(A) or (B) of this
subsection (2)(((b))) if either the numerator or the denominator of the
fraction is zero. If the fraction is greater than or equal to nine-tenths, then the fraction is rounded to one. ((For purposes of this
subsection,))
(V) As used in (III) of this subsection (2)(b)(ii)(C), "returns"
means the ((combined excise)) tax returns for ((the calendar year))
which the tax imposed under this chapter is reported to the department.
(3) ((For the purposes of this section,)) The definitions in this
subsection apply throughout this section, unless the context clearly
indicates otherwise.
(a) "Aerospace product development" has the same meaning as
provided in RCW 82.04.4461.
(b) "Aerospace services" has the same meaning given in RCW
82.08.975.
(c) "Commercial ((passenger)) airplane" and "component" have the
same meanings ((given)) as provided in RCW 82.32.550.
(4) ((A person taking the credit under this section is subject to
all the requirements of chapter 82.32 RCW. In addition, the person
must report as required under RCW 82.32.545.)) A credit earned during
one calendar year may be carried over to be credited against taxes
incurred in a subsequent calendar year, but may not be carried over a
second year. No refunds may be granted for credits under this section.
(5) 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.
(6) This section expires July 1, 2024.
Sec. 10 RCW 82.04.44525 and 1998 c 313 s 2 are each amended to
read as follows:
(1) Subject to the limits in this section, an eligible person is
allowed a credit against the tax due under this chapter. The credit is
based on qualified employment positions in eligible areas. The credit
is available to persons who are engaged in international services as
defined in this section. In order to receive the credit, the
international service activities must take place at a business within
the eligible area.
(2)(a) The credit shall equal three thousand dollars for each
qualified employment position created after July 1, 1998, in an
eligible area. A credit is earned for the calendar year the person is
hired to fill the position, plus the four subsequent consecutive years,
if the position is maintained for those four years.
(b) Credit may not be taken for hiring of persons into positions
that exist on July 1, 1998. Credit is authorized for new employees
hired for new positions created after July 1, 1998. New positions
filled by existing employees are eligible for the credit under this
section only if the position vacated by the existing employee is filled
by a new hire.
(c) When a position is newly created, if it is filled before July
1st, this position is eligible for the full yearly credit. If it is
filled after June 30th, this position is eligible for half of the
credit.
(d) Credit may be accrued and carried over until it is used. No
refunds may be granted for credits under this section.
(3) For the purposes of this section:
(a) "Eligible area" means: (i) A community empowerment zone under
RCW ((43.63A.700)) 43.31C.020; or (ii) a contiguous group of census
tracts that meets the unemployment and poverty criteria of RCW
((43.63A.710)) 43.31C.030 and is designated under subsection (4) of
this section;
(b) "Eligible person" means a person, as defined in RCW 82.04.030,
who in an eligible area at a specific location is engaged in the
business of providing international services;
(c)(i) "International services" means the provision of a service,
as defined under (c)(iii) of this subsection, that is subject to tax
under RCW 82.04.290 (2) or (3), and either:
(A) Is for a person domiciled outside the United States; or
(B) The service itself is for use primarily outside of the United
States.
(ii) "International services" excludes any service taxable under
RCW 82.04.290(1).
(iii) Eligible services are: Computer; data processing;
information; legal; accounting and tax preparation; engineering;
architectural; business consulting; business management; public
relations and advertising; surveying; geological consulting; real
estate appraisal; or financial services. For the purposes of this
section these services mean the following:
(A) "Computer services" are services such as computer programming,
custom software modification, customization of canned software, custom
software installation, custom software maintenance, custom software
repair, training in the use of software, computer systems design, and
custom software update services;
(B) "Data processing services" are services such as word
processing, data entry, data retrieval, data search, information
compilation, payroll processing, business accounts processing, data
production, and other computerized data and information storage or
manipulation. "Data processing services" also includes the use of a
computer or computer time for data processing whether the processing is
performed by the provider of the computer or by the purchaser or other
beneficiary of the service;
(C) "Information services" are services such as electronic data
retrieval or research that entails furnishing financial or legal
information, data or research, internet service as defined in RCW
82.04.297, general or specialized news, or current information;
(D) "Legal services" are services such as representation by an
attorney, or other person when permitted, in an administrative or legal
proceeding, legal drafting, paralegal services, legal research
services, and court reporting services, arbitration, and mediation
services;
(E) "Accounting and tax preparation services" are services such as
accounting, auditing, actuarial, bookkeeping, or tax preparation
services;
(F) "Engineering services" are services such as civil, electrical,
mechanical, petroleum, marine, nuclear, and design engineering, machine
designing, machine tool designing, and sewage disposal system designing
services;
(G) "Architectural services" are services such as structural or
landscape design or architecture, interior design, building design,
building program management, and space planning services;
(H) "Business consulting services" are services such as primarily
providing operating counsel, advice, or assistance to the management or
owner of any business, private, nonprofit, or public organization,
including but not limited to those in the following areas:
Administrative management consulting; general management consulting;
human resource consulting or training; management engineering
consulting; management information systems consulting; manufacturing
management consulting; marketing consulting; operations research
consulting; personnel management consulting; physical distribution
consulting; site location consulting; economic consulting; motel,
hotel, and resort consulting; restaurant consulting; government affairs
consulting; and lobbying;
(I) "Business management services" are services such as
administrative management, business management, and office management.
"Business management services" does not include property management or
property leasing, motel, hotel, and resort management, or automobile
parking management;
(J) "Public relations and advertising services" are services such
as layout, art direction, graphic design, copy writing, mechanical
preparation, opinion research, marketing research, marketing, or
production supervision;
(K) "Surveying services" are services such as land surveying;
(L) "Geological consulting services" are services rendered for the
oil, gas, and mining industry and other earth resource industries, and
other services such as soil testing;
(M) "Real estate appraisal services" are services such as market
appraisal and other real estate valuation; and
(N) "Financial services" are services such as banking, loan,
security, investment management, investment advisory, mortgage
servicing, contract collection, and finance leasing services, engaged
in by financial businesses, or businesses similar to or in competition
with financial businesses; and
(d) "Qualified employment position" means a permanent full-time
position to provide international services. If an employee is either
voluntarily or involuntarily separated from employment, the employment
position is considered filled on a full-time basis if the employer is
either training or actively recruiting a replacement employee.
(4) By ordinance, the legislative authority of a city, or
legislative authorities of contiguous cities by ordinance of each
city's legislative authority, with population greater than eighty
thousand, located in a county containing no community empowerment zones
as designated under RCW ((43.63A.700)) 43.31C.020, may designate a
contiguous group of census tracts within the city or cities as an
eligible area under this section. Each of the census tracts must meet
the unemployment and poverty criteria of RCW ((43.63A.710)) 43.31C.030.
Upon making the designation, the city or cities shall transmit to the
department of revenue a certification letter and a map, each explicitly
describing the boundaries of the census tract. This designation must
be made by December 31, 1998.
(5) No application is necessary for the tax credit. The person
must keep records necessary for the department to verify eligibility
under this section. This information includes:
(a) Employment records for the previous six years;
(b) Information relating to description of international service
activity engaged in at the eligible location by the person; and
(c) Information relating to customers of international service
activity engaged in at that location by the person.
(6) If at any time the department finds that a person is not
eligible for tax credit under this section, the amount of taxes for
which a credit has been used shall be immediately due. The department
shall assess interest, but not penalties, on the credited taxes for
which the person is not eligible. The interest shall be assessed at
the rate provided for delinquent excise taxes under chapter 82.32 RCW,
shall be assessed retroactively to the date the tax credit was taken,
and shall accrue until the taxes for which a credit has been used are
repaid.
(7) The employment security department shall provide to the
department of revenue such information needed by the department of
revenue to verify eligibility under this section.
Sec. 11 RCW 82.32.545 and 2007 c 54 s 19 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(11),
82.04.250(3), or 82.04.290(3), 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
for employment positions in Washington. However, persons engaged in
manufacturing commercial airplanes or components of such airplanes may
report employment, wage, and benefit information 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(11), 82.04.250(3), or
82.04.290(3), 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, unless a
survey covering this twelve-month period was filed as required by a
statute repealed by chapter . . . ., Laws of 2008 (this act). The
report is due by March 31st following any year in which a preferential
tax rate under RCW 82.04.260(11), 82.04.250(3), or 82.04.290(3), 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., chapter
177, Laws of 2006, and chapter . . . ., Laws of 2008 (this act) in
regard to keeping Washington competitive. The report shall measure the
effect of ((chapter 1, Laws of 2003 2nd sp. sess.)) these laws 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., chapter 177, Laws of 2006, and chapter . . . .,
Laws of 2008 (this act).
Sec. 12 RCW 82.32.330 and 2007 c 6 s 1502 are each amended to
read as follows:
(1) For purposes of this section:
(a) "Disclose" means to make known to any person in any manner
whatever a return or tax information;
(b) "Return" means a tax or information return or claim for refund
required by, or provided for or permitted under, the laws of this state
which is filed with the department of revenue by, on behalf of, or with
respect to a person, and any amendment or supplement thereto, including
supporting schedules, attachments, or lists that are supplemental to,
or part of, the return so filed;
(c) "Tax information" means (i) a taxpayer's identity, (ii) the
nature, source, or amount of the taxpayer's income, payments, receipts,
deductions, exemptions, credits, assets, liabilities, net worth, tax
liability deficiencies, overassessments, or tax payments, whether taken
from the taxpayer's books and records or any other source, (iii)
whether the taxpayer's return was, is being, or will be examined or
subject to other investigation or processing, (iv) a part of a written
determination that is not designated as a precedent and disclosed
pursuant to RCW 82.32.410, or a background file document relating to a
written determination, and (v) other data received by, recorded by,
prepared by, furnished to, or collected by the department of revenue
with respect to the determination of the existence, or possible
existence, of liability, or the amount thereof, of a person under the
laws of this state for a tax, penalty, interest, fine, forfeiture, or
other imposition, or offense: PROVIDED, That data, material, or
documents that do not disclose information related to a specific or
identifiable taxpayer do not constitute tax information under this
section. Except as provided by RCW 82.32.410, nothing in this chapter
shall require any person possessing data, material, or documents made
confidential and privileged by this section to delete information from
such data, material, or documents so as to permit its disclosure;
(d) "State agency" means every Washington state office, department,
division, bureau, board, commission, or other state agency;
(e) "Taxpayer identity" means the taxpayer's name, address,
telephone number, registration number, or any combination thereof, or
any other information disclosing the identity of the taxpayer; and
(f) "Department" means the department of revenue or its officer,
agent, employee, or representative.
(2) Returns and tax information shall be confidential and
privileged, and except as authorized by this section, neither the
department of revenue nor any other person may disclose any return or
tax information.
(3) This section does not prohibit the department of revenue from:
(a) Disclosing such return or tax information in a civil or
criminal judicial proceeding or an administrative proceeding:
(i) In respect of any tax imposed under the laws of this state if
the taxpayer or its officer or other person liable under Title 82 RCW
is a party in the proceeding; or
(ii) In which the taxpayer about whom such return or tax
information is sought and another state agency are adverse parties in
the proceeding;
(b) Disclosing, subject to such requirements and conditions as the
director shall prescribe by rules adopted pursuant to chapter 34.05
RCW, such return or tax information regarding a taxpayer to such
taxpayer or to such person or persons as that taxpayer may designate in
a request for, or consent to, such disclosure, or to any other person,
at the taxpayer's request, to the extent necessary to comply with a
request for information or assistance made by the taxpayer to such
other person: PROVIDED, That tax information not received from the
taxpayer shall not be so disclosed if the director determines that such
disclosure would compromise any investigation or litigation by any
federal, state, or local government agency in connection with the civil
or criminal liability of the taxpayer or another person, or that such
disclosure would identify a confidential informant, or that such
disclosure is contrary to any agreement entered into by the department
that provides for the reciprocal exchange of information with other
government agencies which agreement requires confidentiality with
respect to such information unless such information is required to be
disclosed to the taxpayer by the order of any court;
(c) Disclosing the name of a taxpayer with a deficiency greater
than five thousand dollars and against whom a warrant under RCW
82.32.210 has been either issued or filed and remains outstanding for
a period of at least ten working days. The department shall not be
required to disclose any information under this subsection if a
taxpayer: (i) Has been issued a tax assessment; (ii) has been issued
a warrant that has not been filed; and (iii) has entered a deferred
payment arrangement with the department of revenue and is making
payments upon such deficiency that will fully satisfy the indebtedness
within twelve months;
(d) Disclosing the name of a taxpayer with a deficiency greater
than five thousand dollars and against whom a warrant under RCW
82.32.210 has been filed with a court of record and remains
outstanding;
(e) Publishing statistics so classified as to prevent the
identification of particular returns or reports or items thereof;
(f) Disclosing such return or tax information, for official
purposes only, to the governor or attorney general, or to any state
agency, or to any committee or subcommittee of the legislature dealing
with matters of taxation, revenue, trade, commerce, the control of
industry or the professions;
(g) Permitting the department of revenue's records to be audited
and examined by the proper state officer, his or her agents and
employees;
(h) Disclosing any such return or tax information to a peace
officer as defined in RCW 9A.04.110 or county prosecuting attorney, for
official purposes. The disclosure may be made only in response to a
search warrant, subpoena, or other court order, unless the disclosure
is for the purpose of criminal tax enforcement. A peace officer or
county prosecuting attorney who receives the return or tax information
may disclose that return or tax information only for use in the
investigation and a related court proceeding, or in the court
proceeding for which the return or tax information originally was
sought;
(i) Disclosing any such return or tax information to the proper
officer of the internal revenue service of the United States, the
Canadian government or provincial governments of Canada, or to the
proper officer of the tax department of any state or city or town or
county, for official purposes, but only if the statutes of the United
States, Canada or its provincial governments, or of such other state or
city or town or county, as the case may be, grants substantially
similar privileges to the proper officers of this state;
(j) Disclosing any such return or tax information to the Department
of Justice, including the Bureau of Alcohol, Tobacco, Firearms and
Explosives within the Department of Justice, the Department of Defense,
the Immigration and Customs Enforcement and the Customs and Border
Protection agencies of the United States Department of Homeland
Security, the Coast Guard of the United States, and the United States
Department of Transportation, or any authorized representative thereof,
for official purposes;
(k) Publishing or otherwise disclosing the text of a written
determination designated by the director as a precedent pursuant to RCW
82.32.410;
(l) Disclosing, in a manner that is not associated with other tax
information, the taxpayer name, entity type, business address, mailing
address, revenue tax registration numbers, North American industry
classification system or standard industrial classification code of a
taxpayer, and the dates of opening and closing of business. This
subsection shall not be construed as giving authority to the department
to give, sell, or provide access to any list of taxpayers for any
commercial purpose;
(m) Disclosing such return or tax information that is also
maintained by another Washington state or local governmental agency as
a public record available for inspection and copying under the
provisions of chapter 42.56 RCW or is a document maintained by a court
of record not otherwise prohibited from disclosure;
(n) Disclosing such return or tax information to the United States
department of agriculture for the limited purpose of investigating food
stamp fraud by retailers;
(o) Disclosing to a financial institution, escrow company, or title
company, in connection with specific real property that is the subject
of a real estate transaction, current amounts due the department for a
filed tax warrant, judgment, or lien against the real property;
(p) Disclosing to a person against whom the department has asserted
liability as a successor under RCW 82.32.140 return or tax information
pertaining to the specific business of the taxpayer to which the person
has succeeded;
(q) Disclosing such return or tax information in the possession of
the department relating to the administration or enforcement of the
real estate excise tax imposed under chapter 82.45 RCW, including
information regarding transactions exempt or otherwise not subject to
tax; or
(r) ((Disclosing the least amount of return or tax information
necessary for the reports required in RCW 82.32.640 (4) and (5) when
the number of taxpayers included in the reports or any part of the
reports cannot be classified to prevent the identification of taxpayers
or particular returns, reports, tax information, or items in the
possession of the department; or)) Disclosing to local taxing jurisdictions the identity of
sellers granted relief under RCW 82.32.430(5)(b)(i) and the period for
which relief is granted.
(s)
(4)(a) The department may disclose return or taxpayer information
to a person under investigation or during any court or administrative
proceeding against a person under investigation as provided in this
subsection (4). The disclosure must be in connection with the
department's official duties relating to an audit, collection activity,
or a civil or criminal investigation. The disclosure may occur only
when the person under investigation and the person in possession of
data, materials, or documents are parties to the return or tax
information to be disclosed. The department may disclose return or tax
information such as invoices, contracts, bills, statements, resale or
exemption certificates, or checks. However, the department may not
disclose general ledgers, sales or cash receipt journals, check
registers, accounts receivable/payable ledgers, general journals,
financial statements, expert's workpapers, income tax returns, state
tax returns, tax return workpapers, or other similar data, materials,
or documents.
(b) Before disclosure of any tax return or tax information under
this subsection (4), the department shall, through written
correspondence, inform the person in possession of the data, materials,
or documents to be disclosed. The correspondence shall clearly
identify the data, materials, or documents to be disclosed. The
department may not disclose any tax return or tax information under
this subsection (4) until the time period allowed in (c) of this
subsection has expired or until the court has ruled on any challenge
brought under (c) of this subsection.
(c) The person in possession of the data, materials, or documents
to be disclosed by the department has twenty days from the receipt of
the written request required under (b) of this subsection to petition
the superior court of the county in which the petitioner resides for
injunctive relief. The court shall limit or deny the request of the
department if the court determines that:
(i) The data, materials, or documents sought for disclosure are
cumulative or duplicative, or are obtainable from some other source
that is more convenient, less burdensome, or less expensive;
(ii) The production of the data, materials, or documents sought
would be unduly burdensome or expensive, taking into account the needs
of the department, the amount in controversy, limitations on the
petitioner's resources, and the importance of the issues at stake; or
(iii) The data, materials, or documents sought for disclosure
contain trade secret information that, if disclosed, could harm the
petitioner.
(d) The department shall reimburse reasonable expenses for the
production of data, materials, or documents incurred by the person in
possession of the data, materials, or documents to be disclosed.
(e) Requesting information under (b) of this subsection that may
indicate that a taxpayer is under investigation does not constitute a
disclosure of tax return or tax information under this section.
(5) Any person acquiring knowledge of any return or tax information
in the course of his or her employment with the department of revenue
and any person acquiring knowledge of any return or tax information as
provided under subsection (3)(f), (g), (h), (i), (j), or (n) of this
section, who discloses any such return or tax information to another
person not entitled to knowledge of such return or tax information
under the provisions of this section, is guilty of a misdemeanor. If
the person guilty of such violation is an officer or employee of the
state, such person shall forfeit such office or employment and shall be
incapable of holding any public office or employment in this state for
a period of two years thereafter.
Sec. 13 RCW 82.32.550 and 2007 c 54 s 20 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 rate((s)) in RCW 82.04.260(11)(a)(ii) ((and (b)(ii)))
takes 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. 14 RCW 82.32.590 and 2006 c 354 s 17, 2006 c 300 s 10, 2006
c 177 s 8, 2006 c 112 s 7, and 2006 c 84 s 7 are each reenacted and
amended to read as follows:
(1) If the department finds that the failure of a taxpayer to file
an annual survey or annual report under RCW 82.04.4452, 82.32.5351,
82.32.650, ((82.32.635, 82.32.640,)) 82.32.630, 82.32.610, or 82.74.040
by the due date was the result of circumstances beyond the control of
the taxpayer, the department shall extend the time for filing the
survey or report. Such extension shall be for a period of thirty days
from the date the department issues its written notification to the
taxpayer that it qualifies for an extension under this section. The
department may grant additional extensions as it deems proper.
(2) In making a determination whether the failure of a taxpayer to
file an annual survey or annual report by the due date was the result
of circumstances beyond the control of the taxpayer, the department
shall be guided by rules adopted by the department for the waiver or
cancellation of penalties when the underpayment or untimely payment of
any tax was due to circumstances beyond the control of the taxpayer.
Sec. 15 RCW 82.32.600 and 2007 c 54 s 23 and 2007 c 54 s 22 are
each reenacted and amended to read as follows:
(1) Persons required to file annual surveys or annual reports under
RCW 82.04.4452 ((or)), 82.32.5351, 82.32.545, 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.
NEW SECTION. Sec. 16 The following acts or parts of acts are
each repealed:
(1) RCW 82.04.4487 (Credit -- Commercial aircraft -- Qualified
preproduction development expenditures) and 2006 c 177 s 3;
(2) RCW 82.08.981 (Exemptions -- Development, design, and engineering
of commercial airplanes) and 2006 c 177 s 1;
(3) RCW 82.12.981 (Exemptions -- Development, design, and engineering
of commercial airplanes) and 2006 c 177 s 2;
(4) RCW 82.32.635 (Annual survey for tax incentive under RCW
82.04.4487) and 2006 c 177 s 4; and
(5) RCW 82.32.640 (Annual survey for tax incentive under RCW
82.04.250(3)) and 2006 c 177 s 6.
NEW SECTION. Sec. 17 This act does not affect any existing right
acquired or liability or obligation incurred under the sections amended
or repealed in this act or under any rule or order adopted under those
sections, nor does it affect any proceeding instituted under those
sections.
NEW SECTION. Sec. 18 This act takes effect July 1, 2008, except
for section 6 of this act which takes effect July 1, 2011.
NEW SECTION. Sec. 19 Section 5 of this act expires July 1, 2011.