BILL REQ. #:  H-3383.1 

Read first time 01/23/14.   Referred to Committee on Higher Education.

     AN ACT Relating to creating a sales tax holiday for school instructional material for higher education students; adding new sections to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an expiration 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 legislature finds that many Washington students pursuing higher education face a growing financial burden. The recent rise in tuition rates and downturn in the economy make attending higher education even more financially difficult for students. The legislature further finds that Washington has gone from subsidizing two-thirds of a student's tuition to subsidizing just over one-third. The difference has caused many students to rely heavily on educational debt. Giving Washington higher education students a sales tax holiday on instructional materials would help relieve some of the financial burden of today's higher education costs. Therefore, it is the legislature's intention to create a sales tax holiday for school instructional material.
     (2) It is the intent of this legislation to provide a sales tax holiday on school instructional material for the purpose described under RCW 82.32.808(2)(e). The legislature further intends to review the tax exemption and its actual fiscal impact on state revenues to determine if the fiscal impact to state revenues reasonably conforms to the fiscal estimate in the fiscal note for this legislation.
     (3) The provisions of this sales tax holiday are to be administered consistent with section 322 of the streamlined sales and use tax agreement, as amended on October 30, 2013.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     (1) Subject to the conditions and limitations provided in this section, the tax levied by RCW 82.08.020 does not apply to sales of school instructional material for personal or nonbusiness use.
     (2) The exemption authorized in this section only applies to purchases made on the second adjacent Friday, Saturday, and Sunday in August and the third adjacent Friday, Saturday, and Sunday in September.
     (3) For sellers who electronically file their taxes, the department must provide a separate tax reporting line for exemption amounts claimed under this section.
     (4) For the purposes of this section, "school instructional material" means any written material commonly used by a student in a course of study as a reference and to learn the subject being taught, including reference books, reference maps and globes, textbooks, and workbooks.
     (5) Nothing in this section requires the seller to make tax exempt retail sales of school instructional material during the time periods provided in subsection (2) of this section. A seller may choose to make sales of school instructional material during these time periods, collect the sales tax, and remit the amount of sales tax collected to the state as otherwise provided by law.

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 to the personal or nonbusiness use of school instructional material.
     (2) The definitions, conditions, and limitations in section 2 of this act apply to this section.

NEW SECTION.  Sec. 4   This act expires July 1, 2019.