BILL REQ. #:  H-1732.1 

Read first time 02/18/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to providing tax exemptions for storm water mitigation projects; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of materials used for storm water mitigation projects. The tax also does not apply to labor and services rendered for the installation or construction of storm water mitigation projects. The exemption is available for a person that contracts with a local government or department of transportation for storm water mitigation projects, and for storm water mitigation projects on private property designed or provided for a person.
     (2) For the purposes of this section, the following definitions apply:
     (a) "Local government" means a political subdivision covered by national pollutant discharge elimination system municipal phase I or phase II permits.
     (b) "Low-impact development" means a storm water management and land use strategy applied at the parcel, subdivision, or drainage area level, that emphasizes conservation and use of on-site natural features integrated with engineered, small scale hydrologic controls to more closely mimic predevelopment hydrologic functions.
     (c) "Person" has the same meaning as in RCW 82.04.030.
     (d) "Retrofit" means renovation or improvements associated with and constructed adjacent to or near an existing site, subdivision, or development in order to reduce or eliminate municipal storm water runoff to receiving water bodies.
     (e) "Storm water facility" includes, but is not limited to, ponds, biofiltration swales, storm water treatment tanks, detention vaults, oil water separators, dry wells, catch basins, filters, pervious asphalt, and rain gardens.
     (f) "Storm water mitigation projects" means construction or retrofit of a storm water facility, including projects that utilize low-impact development retrofit strategies, or projects that mitigate or prevent storm water pollutants in receiving waters previously remediated under federal or state-approved activities.
     (3) A person claiming the exemption under this section must claim the exemption in a form and manner prescribed by the department.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     The provisions of this chapter do not apply with respect to the use of materials for storm water mitigation projects on storm water facilities. The provisions of this chapter also do not apply to the use of labor and services rendered for the installation or construction of storm water mitigation projects on storm water facilities. The definitions and requirements in section 1 of this act apply to this section.

NEW SECTION.  Sec. 3   This act takes effect August 1, 2011.