SSB 6102 -
By Senator Ericksen
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 (1) This section is the tax preference
performance statement for the tax preference contained in sections 2
and 3 of this act. This performance statement is only intended to be
used for subsequent evaluation of the tax preference. It is not
intended to create a private right of action by any party or be used to
determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as intended to
extend the purchasing power of funds for highway construction,
maintenance, and improvements when such funds are acquired through
indebtedness.
(3) The legislature's specific public policy goal is to reduce the
cost of highway projects when such projects are funded through debt.
(4) The department of transportation must provide the data
necessary to perform a review to the joint legislative audit and review
committee during the year in which the review will be conducted.
NEW SECTION. Sec. 2 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 purchases, or
portions of purchases, for highway construction, maintenance, or
improvement of facilities owned by the state, when the purchase is made
with moneys acquired by the department of transportation from
indebtedness.
(2) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Indebtedness" means all debt incurred by the state for a term
greater than one year and does not include debt to other governments or
governmental funds.
(b) "Portions of purchases" means those portions of a purchase that
were made from indebtedness when the total purchase was made from
multiple fund sources.
(3) The exemption under this section is available only when the
buyer provides the seller with an exemption certificate in a form and
manner prescribed by the department. The seller must retain a copy of
the certificate for the seller's files.
NEW SECTION. Sec. 3 A new section is added to chapter 82.12 RCW
to read as follows:
(1) The provisions of this chapter do not apply with respect to the
use of any items used for highway construction, maintenance, or
improvement of a facility owned by the state, when the items were
purchased with moneys acquired by the state from indebtedness.
(2) When the item used was acquired by purchase through multiple
fund sources, only the amount that was purchased by moneys acquired
from indebtedness qualify for the exemption under this section.
(3) For the purposes of this section, the requirements in section
1 of this act apply.
(4) For the purposes of this section, the definitions in section 2
of this act apply.
NEW SECTION. Sec. 4 This act takes effect July 1, 2014."
SSB 6102 -
By Senator Ericksen
On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "a sales and use tax exemption provided to the state on highway-related construction when the funds used were obtained from indebtedness; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and providing an effective date."
EFFECT: Strikes the entirety of the underlying substitute bill.
Exempts purchases for state highway construction, maintenance, or
improvement of facilities made with money acquired through indebtedness
from the state sales and use tax.
Identifies this exemption as a tax preference, which is intended to
extend the purchasing power of funds for highway construction,
maintenance, and improvements when such funds are acquired through
indebtedness.
Provides an effective date of July 1, 2014.