BILL REQ. #: H-4088.1
State of Washington | 63rd Legislature | 2014 Regular Session |
READ FIRST TIME 02/05/14.
AN ACT Relating to extending specific aerospace tax preferences to include other types of commercial aircraft to encourage the migration of good wage jobs in the state; amending RCW 82.32.550, 82.04.260, 82.04.260, 82.04.260, 82.04.260, 82.04.290, and 82.04.290; adding new sections to chapter 82.04 RCW; adding new sections to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating new sections; providing effective dates; providing contingent effective dates; providing expiration dates; and providing contingent expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature finds that the people of
Washington have benefited from the presence of the aerospace industry
in Washington state. The legislature further finds that the industry
continues to provide good wage jobs and benefits for employees
throughout the state. The legislature further finds that expansion of
the aerospace industry to other types of aircraft manufacturing would
provide additional good wage jobs for the citizens of Washington,
increasing the economic activity of manufacturing in the state. The
legislature further finds that expansion of the current aerospace
industry to all types of aerospace products will establish Washington
as the leading aerospace industry state. Therefore, the legislature
intends to extend preferential tax rates, credits, and sales and use
tax deferrals for the aerospace industry to other types of aircraft
manufacturing. Specifically, the legislature intends to provide tax
relief to manufacturers of all types of aircraft and manufacturers and
suppliers of aircraft components to encourage the migration of these
businesses to Washington, in turn creating and retaining good wage jobs
and new tax revenue for the state.
(2) It is the specific public policy objective of the legislature
to provide a preferential business and occupation tax rate, business
and occupation tax credit, and sales and use tax deferral for the
manufacturing of rotorcraft, including the components used in the
manufacturing process. This tax preference is intended to promote
economic growth and jobs for Washington. The legislature categorizes
this tax preference as one intended to create and retain jobs, as
described in RCW 82.32.808(2)(c).
(3)(a) In order to obtain the necessary data to perform a review of
this tax preference, persons using any of the preferences created under
this act must file a tax preference annual report under RCW 82.32.534.
(b) The joint legislative audit and review committee must review
the tax preference provided in this act as part of its normal review
process of tax preferences. The committee must assess employment
changes and tax revenue changes in the commercial rotorcraft industry
in Washington in comparison to employment and tax revenues prior to the
extension of tax preferences in this act. The committee must assess
the number of jobs created in the rotorcraft industry in Washington
during the term of the tax preferences provided in this act. If the
committee finds that the number of jobs in the rotorcraft industry have
increased by an average of fifty jobs during the term of the tax
preferences provided in this act, then the legislature intends for the
legislative auditor to recommend extending the expiration date of the
tax preference.
(c) To the extent practicable, the joint legislative audit and
review committee must use data provided by state agencies responsible
for administering unemployment insurance and collecting tax revenue and
data statistics provided by the bureau of labor statistics.
Sec. 2 RCW 82.32.550 and 2010 1st sp.s. c 23 s 517 are each
amended to read as follows:
(1) "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.
(2) "Commercial rotorcraft" means an aircraft supported in flight
by one or more rotors to provide lift, which may also include
rotorcrafts with additional thrust engines or propellers, certified by
the federal aviation administration for transporting persons or
property, and any military derivative of such an aircraft.
(3) "Commercial rotorcraft component" means a part or system
certified by the federal aviation administration for installation or
assembly into a commercial rotorcraft.
(4) "Commercial rotorcraft mission equipment" means equipment which
is intended to be attached to a rotorcraft to engage in certain
applications or tasks, including, but not limited to, firefighting,
agricultural spraying, maintaining power lines, or maintaining
windmills.
(5) "Component" means a part or system certified by the federal
aviation administration for installation or assembly into a commercial
airplane.
(((3))) (6) "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. 3 RCW 82.04.260 and 2013 2nd sp.s. c 13 s 202 are each
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 by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2015, 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 is 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)(i) Beginning July 1, 2015, dairy products; or selling dairy
products that the person has manufactured to purchasers who either
transport in the ordinary course of business the goods out of state or
purchasers who use such dairy products as an ingredient or component in
the manufacturing of a dairy product; as to such persons the tax
imposed is 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
or sold to a manufacturer for use as an ingredient or component in the
manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products"
means:
(A) Products that as of September 20, 2001, are identified in 21
C.F.R., chapter 1, parts 131, 133, and 135, including by-products from
the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than seventy percent dairy
products that qualify under (c)(ii)(A) of this subsection, measured by
weight or volume.
(iii) The preferential tax rate provided to taxpayers under this
subsection (1)(c) does not apply to sales of dairy products on or after
July 1, 2023, where a dairy product is used by the purchaser as an
ingredient or component in the manufacturing in Washington of a dairy
product;
(d) Beginning July 1, 2015, 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 is 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 is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of 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 is 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 is 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 is 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 is 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 is 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 is
equal to the gross proceeds derived from such activities multiplied by
the rate of 0.275 percent. Persons subject to taxation under this
subsection are 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)(a) 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 is
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.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must 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
producer or title insurance agent licensed under chapter 48.17 RCW or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
is 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 is 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.
(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 is, in the case of manufacturers, 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, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning 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 such tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business is, in the case of
manufacturers, 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 0.2904 percent.
(c) For the purposes of this subsection (11), "commercial airplane"
and "component" have the same meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (11)
must file a complete annual report with the department under RCW
82.32.534.
(e) This subsection (11) does not apply on and after July 1, 2024.
(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 is, in the case of extractors, equal to the value of products,
including by-products, extracted, or in the case of extractors for
hire, 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 is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, 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 is 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 is 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) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "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.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (12)(e)(iii), "postconsumer
waste" means a finished material that would normally be disposed of as
solid waste, having completed its life cycle as a consumer item.
(iv) "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.
(v) "Timber products" means:
(A) 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;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "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; wood
windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection (12)
must file a complete annual survey with the department under RCW
82.32.585.
(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
is equal to the gross income derived from such activities multiplied by
the rate of 0.484 percent.
(14)(a) Upon every person engaging within this state in the
business of printing a newspaper, publishing a newspaper, or both, the
amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.365 percent through June 30, 2013,
and beginning July 1, 2013, multiplied by the rate of 0.35 percent.
(b) A person reporting under the tax rate provided in this
subsection (14) must file a complete annual report with the department
under RCW 82.32.534.
(15)(a) Beginning July 1, 2014, upon every person engaging within
this state in the business of manufacturing commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, or tooling specifically designed for use in manufacturing
commercial rotorcrafts or commercial rotorcraft components, or making
sales, at retail or wholesale, of such commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, manufactured by the seller, or such tooling manufactured by
the seller, as to such persons the amount of tax with respect to such
business is, in the case of manufacturers, 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, equal to the gross
income of the business, multiplied by the rate of 0.2904 percent.
(b) For the purposes of this subsection (15), "commercial
rotorcraft," "commercial rotorcraft component," and "commercial
rotorcraft mission equipment" have the same meanings as provided in RCW
82.32.550.
(c) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (15)
must file a complete annual report with the department under RCW
82.32.534.
(d) This subsection (15) does not apply on and after July 1, 2024.
Sec. 4 RCW 82.04.260 and 2013 2nd sp.s. c 13 s 203 are each
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 by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2015, 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 is 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)(i) Beginning July 1, 2015, dairy products; or selling dairy
products that the person has manufactured to purchasers who either
transport in the ordinary course of business the goods out of state or
purchasers who use such dairy products as an ingredient or component in
the manufacturing of a dairy product; as to such persons the tax
imposed is 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
or sold to a manufacturer for use as an ingredient or component in the
manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products"
means:
(A) Products that as of September 20, 2001, are identified in 21
C.F.R., chapter 1, parts 131, 133, and 135, including by-products from
the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than seventy percent dairy
products that qualify under (c)(ii)(A) of this subsection, measured by
weight or volume.
(iii) The preferential tax rate provided to taxpayers under this
subsection (1)(c) does not apply to sales of dairy products on or after
July 1, 2023, where a dairy product is used by the purchaser as an
ingredient or component in the manufacturing in Washington of a dairy
product;
(d) Beginning July 1, 2015, 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 is 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 is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of 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 is 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 is 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 is 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 is 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 is 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 is
equal to the gross proceeds derived from such activities multiplied by
the rate of 0.275 percent. Persons subject to taxation under this
subsection are 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)(a) 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 is
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.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must 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
producer or title insurance agent licensed under chapter 48.17 RCW or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
is 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 is 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.
(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 is, in the case of manufacturers, 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, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning 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 such tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business is, in the case of
manufacturers, 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 0.2904 percent.
(c) For the purposes of this subsection (11), "commercial airplane"
and "component" have the same meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (11)
must file a complete annual report with the department under RCW
82.32.534.
(e) This subsection (11) does not apply on and after July 1, 2024.
(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 is, in the case of extractors, equal to the value of products,
including by-products, extracted, or in the case of extractors for
hire, 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 is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, 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 is 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 is 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) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "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.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (12)(e)(iii), "postconsumer
waste" means a finished material that would normally be disposed of as
solid waste, having completed its life cycle as a consumer item.
(iv) "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.
(v) "Timber products" means:
(A) 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;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "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; wood
windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection (12)
must file a complete annual survey with the department under RCW
82.32.585.
(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
is equal to the gross income derived from such activities multiplied by
the rate of 0.484 percent.
(14)(a) Upon every person engaging within this state in the
business of printing a newspaper, publishing a newspaper, or both, the
amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.2904 percent.
(b) A person reporting under the tax rate provided in this
subsection (14) must file a complete annual report with the department
under RCW 82.32.534.
(15)(a) Beginning July 1, 2014, upon every person engaging within
this state in the business of manufacturing commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, or tooling specifically designed for use in manufacturing
commercial rotorcrafts or commercial rotorcraft components, or making
sales, at retail or wholesale, of such commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, manufactured by the seller, or such tooling manufactured by
the seller, as to such persons the amount of tax with respect to such
business is, in the case of manufacturers, 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, equal to the gross
income of the business, multiplied by the rate of 0.2904 percent.
(b) For the purposes of this subsection (15), "commercial
rotorcraft," "commercial rotorcraft component," and "commercial
rotorcraft mission equipment" have the same meanings as provided in RCW
82.32.550.
(c) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (15)
must file a complete annual report with the department under RCW
82.32.534.
(d) This subsection (15) does not apply on and after July 1, 2024,
unless no tax preference created in this act has been used by July 1,
2017, then this subsection (15) does not apply on or after July 1,
2017.
Sec. 5 RCW 82.04.260 and 2013 3rd sp.s. c 2 s 5 are each 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 by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2015, 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 is 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)(i) Beginning July 1, 2015, dairy products; or selling dairy
products that the person has manufactured to purchasers who either
transport in the ordinary course of business the goods out of state or
purchasers who use such dairy products as an ingredient or component in
the manufacturing of a dairy product; as to such persons the tax
imposed is 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
or sold to a manufacturer for use as an ingredient or component in the
manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products"
means:
(A) Products that as of September 20, 2001, are identified in 21
C.F.R., chapter 1, parts 131, 133, and 135, including by-products from
the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than seventy percent dairy
products that qualify under (c)(ii)(A) of this subsection, measured by
weight or volume.
(iii) The preferential tax rate provided to taxpayers under this
subsection (1)(c) does not apply to sales of dairy products on or after
July 1, 2023, where a dairy product is used by the purchaser as an
ingredient or component in the manufacturing in Washington of a dairy
product;
(d) Beginning July 1, 2015, 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 is 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 is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of 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 is 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 is 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 is 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 is 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 is 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 is
equal to the gross proceeds derived from such activities multiplied by
the rate of 0.275 percent. Persons subject to taxation under this
subsection are 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)(a) 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 is
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.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must 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
producer or title insurance agent licensed under chapter 48.17 RCW or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
is 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 is 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.
(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 is, in the case of manufacturers, 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, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning 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 such tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business is, in the case of
manufacturers, 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 0.2904 percent.
(c) For the purposes of this subsection (11), "commercial airplane"
and "component" have the same meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (11)
must file a complete annual report with the department under RCW
82.32.534.
(e)(i) Except as provided in (e)(ii) of this subsection (11), this
subsection (11) does not apply on and after July 1, 2040.
(ii) With respect to the manufacturing of commercial airplanes or
making sales, at retail or wholesale, of commercial airplanes, this
subsection (11) does not apply on and after July 1st of the year in
which the department makes a determination that any final assembly or
wing assembly of any version or variant of a commercial airplane that
is the basis of a siting of a significant commercial airplane
manufacturing program in the state under RCW 82.32.850 has been sited
outside the state of Washington. This subsection (11)(e)(ii) only
applies to the manufacturing or sale of commercial airplanes that are
the basis of a siting of a significant commercial airplane
manufacturing program in the state under RCW 82.32.850.
(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 is, in the case of extractors, equal to the value of products,
including by-products, extracted, or in the case of extractors for
hire, 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 is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, 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 is 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 is 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) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "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.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (12)(e)(iii), "postconsumer
waste" means a finished material that would normally be disposed of as
solid waste, having completed its life cycle as a consumer item.
(iv) "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.
(v) "Timber products" means:
(A) 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;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "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; wood
windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection (12)
must file a complete annual survey with the department under RCW
82.32.585.
(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
is equal to the gross income derived from such activities multiplied by
the rate of 0.484 percent.
(14)(a) Upon every person engaging within this state in the
business of printing a newspaper, publishing a newspaper, or both, the
amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.365 percent through June 30, 2013,
and beginning July 1, 2013, multiplied by the rate of 0.35 percent.
(b) A person reporting under the tax rate provided in this
subsection (14) must file a complete annual report with the department
under RCW 82.32.534.
(15)(a) Beginning July 1, 2014, upon every person engaging within
this state in the business of manufacturing commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, or tooling specifically designed for use in manufacturing
commercial rotorcrafts or commercial rotorcraft components, or making
sales, at retail or wholesale, of such commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, manufactured by the seller, or such tooling manufactured by
the seller, as to such persons the amount of tax with respect to such
business is, in the case of manufacturers, 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, equal to the gross
income of the business, multiplied by the rate of 0.2904 percent.
(b) For the purposes of this subsection (15), "commercial
rotorcraft," "commercial rotorcraft component," and "commercial
rotorcraft mission equipment" have the same meanings as provided in RCW
82.32.550.
(c) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (15)
must file a complete annual report with the department under RCW
82.32.534.
(d) This subsection (15) does not apply on and after July 1, 2024.
Sec. 6 RCW 82.04.260 and 2013 3rd sp.s. c 2 s 6 are each 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 by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2015, 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 is 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)(i) Beginning July 1, 2015, dairy products; or selling dairy
products that the person has manufactured to purchasers who either
transport in the ordinary course of business the goods out of state or
purchasers who use such dairy products as an ingredient or component in
the manufacturing of a dairy product; as to such persons the tax
imposed is 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
or sold to a manufacturer for use as an ingredient or component in the
manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products"
means:
(A) Products that as of September 20, 2001, are identified in 21
C.F.R., chapter 1, parts 131, 133, and 135, including by-products from
the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than seventy percent dairy
products that qualify under (c)(ii)(A) of this subsection, measured by
weight or volume.
(iii) The preferential tax rate provided to taxpayers under this
subsection (1)(c) does not apply to sales of dairy products on or after
July 1, 2023, where a dairy product is used by the purchaser as an
ingredient or component in the manufacturing in Washington of a dairy
product;
(d) Beginning July 1, 2015, 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 is 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 is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of 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 is 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 is 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 is 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 is 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 is 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 is
equal to the gross proceeds derived from such activities multiplied by
the rate of 0.275 percent. Persons subject to taxation under this
subsection are 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)(a) 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 is
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.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must 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
producer or title insurance agent licensed under chapter 48.17 RCW or
a surplus line broker licensed under chapter 48.15 RCW; as to such
persons, the amount of the tax with respect to such licensed activities
is 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 is 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.
(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 is, in the case of manufacturers, 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, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning 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 such tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business is, in the case of
manufacturers, 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 0.2904 percent.
(c) For the purposes of this subsection (11), "commercial airplane"
and "component" have the same meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (11)
must file a complete annual report with the department under RCW
82.32.534.
(e)(i) Except as provided in (e)(ii) of this subsection (11), this
subsection (11) does not apply on and after July 1, 2040.
(ii) With respect to the manufacturing of commercial airplanes or
making sales, at retail or wholesale, of commercial airplanes, this
subsection (11) does not apply on and after July 1st of the year in
which the department makes a determination that any final assembly or
wing assembly of any version or variant of a commercial airplane that
is the basis of a siting of a significant commercial airplane
manufacturing program in the state under RCW 82.32.850 has been sited
outside the state of Washington. This subsection (11)(e)(ii) only
applies to the manufacturing or sale of commercial airplanes that are
the basis of a siting of a significant commercial airplane
manufacturing program in the state under RCW 82.32.850.
(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 is, in the case of extractors, equal to the value of products,
including by-products, extracted, or in the case of extractors for
hire, 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 is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, 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 is 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 is 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) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "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.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (12)(e)(iii), "postconsumer
waste" means a finished material that would normally be disposed of as
solid waste, having completed its life cycle as a consumer item.
(iv) "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.
(v) "Timber products" means:
(A) 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;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "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; wood
windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection (12)
must file a complete annual survey with the department under RCW
82.32.585.
(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
is equal to the gross income derived from such activities multiplied by
the rate of 0.484 percent.
(14)(a) Upon every person engaging within this state in the
business of printing a newspaper, publishing a newspaper, or both, the
amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.2904 percent.
(b) A person reporting under the tax rate provided in this
subsection (14) must file a complete annual report with the department
under RCW 82.32.534.
(15)(a) Beginning July 1, 2014, upon every person engaging within
this state in the business of manufacturing commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, or tooling specifically designed for use in manufacturing
commercial rotorcrafts or commercial rotorcraft components, or making
sales, at retail or wholesale, of such commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, manufactured by the seller, or such tooling manufactured by
the seller, as to such persons the amount of tax with respect to such
business is, in the case of manufacturers, 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, equal to the gross
income of the business, multiplied by the rate of 0.2904 percent.
(b) For the purposes of this subsection (15), "commercial
rotorcraft," "commercial rotorcraft component," and "commercial
rotorcraft mission equipment" have the same meanings as provided in RCW
82.32.550.
(c) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection (15)
must file a complete annual report with the department under RCW
82.32.534.
(d) This subsection (15) does not apply on and after July 1, 2024,
unless no tax preference created in this act has been used by July 1,
2017, then this subsection (15) does not apply on or after July 1,
2017.
NEW SECTION. Sec. 7 A new section is added to chapter 82.04 RCW
to read as follows:
(1) Beginning July 1, 2014, 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) Property taxes or leasehold excise taxes paid on, or with
respect to, buildings constructed after July 1, 2014, the land upon
which the buildings are located, or both, and used exclusively for
manufacturing commercial rotorcrafts, commercial rotorcraft components,
or commercial rotorcraft mission equipment, for manufacturing of
tooling specifically designed for use in commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment, for rotorcraft product development, or for providing
rotorcraft services; or
(ii) Property taxes attributable to an increase in assessed value
due to the renovation or expansion after July 1, 2014, of a building
used exclusively for manufacturing commercial rotorcrafts, commercial
rotorcraft components, or commercial rotorcraft mission equipment, for
manufacturing of tooling specifically designed for use in commercial
rotorcrafts, commercial rotorcraft components, or commercial rotorcraft
mission equipment, for rotorcraft product development, or for providing
rotorcraft services; and
(b) An amount equal to:
(i)(A) Property taxes paid, by persons taxable under RCW
82.04.260(15) on machinery and equipment exempt under RCW 82.08.02565
or 82.12.02565 and acquired after July 1, 2014; or
(B) Property taxes paid, by persons taxable under RCW 82.04.250(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
July 1, 2014.
(ii) For purposes of determining the amount eligible for credit
under (b)(i)(A) and (B) of this subsection (2), the amount of property
taxes paid is multiplied by a fraction.
(A) The numerator of the fraction is the total taxable amount
subject to the tax imposed under RCW 82.04.260(15) on the applicable
business activities of manufacturing commercial rotorcrafts, commercial
rotorcraft components, or commercial rotorcraft mission equipment or
tooling specifically designed for use in the manufacturing of
commercial rotorcrafts, commercial rotorcraft components, or commercial
rotorcraft mission equipment.
(B) The denominator of the fraction is the total taxable amount
subject to the tax imposed under all manufacturing classifications in
this chapter.
(C) 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(15) for manufacturing was not in effect during the full
calendar year before the calendar year in which the credit under this
section is earned.
(D) No credit is available under (b)(i)(A) or (B) of this
subsection (2) 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.
(E) As used in (b)(ii)(C) of this subsection (2), "returns" means
the tax returns for which the tax imposed under this chapter is
reported to the department.
(3) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Rotorcraft product development" means research, design, and
engineering activities performed in relation to the development of a
rotorcraft product or of a product line, model, or model derivative of
a rotorcraft 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.
(b) "Rotorcraft products" means:
(i) Commercial rotorcrafts, commercial rotorcraft components, and
commercial rotorcraft mission equipment;
(ii) Machinery and equipment that is designed and used primarily
for the maintenance, repair, overhaul, or refurbishing of commercial
rotorcrafts, commercial rotorcraft components, and commercial
rotorcraft mission equipment by federal aviation regulation part 145
certificated repair stations; and
(iii) Tooling specifically designed for use in manufacturing
commercial rotorcrafts, commercial rotorcraft components, and
commercial rotorcraft mission equipment.
(c) "Rotorcraft services" means the maintenance, repair, overhaul,
or refurbishing of commercial rotorcrafts, commercial rotorcraft
components, and commercial rotorcraft mission equipment, but only when
such services are performed by a federal aviation regulation part 145
certificated repair station.
(d) "Commercial rotorcraft," "commercial rotorcraft component," and
"commercial rotorcraft mission equipment" have the same meanings as
provided in RCW 82.32.550.
(4) 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 claiming the credit under this section must file a complete
annual report with the department under RCW 82.32.534.
(6) This section expires July 1, 2024, unless no tax preference
created in this act has been used by July 1, 2017, then this section
expires July 1, 2017.
NEW SECTION. Sec. 8 A new section is added to chapter 82.04 RCW
to read as follows:
(1) Beginning July 1, 2014, in computing the tax imposed under this
chapter, a credit is allowed for each person for qualified rotorcraft
product development.
(2) The credit is equal to the amount of qualified rotorcraft
product development expenditures of a person, multiplied by the rate of
1.5 percent.
(3) The credit must be claimed against taxes due for the same
calendar year in which the qualified rotorcraft product development
expenditures are incurred. The credit for each calendar year may 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 must file a form prescribed by
the department that must include the amount of the credit claimed, an
estimate of the anticipated rotorcraft 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) "Rotorcraft product" has the same meaning as provided in
section 7 of this act.
(b) "Rotorcraft product development" has the same meaning as
provided in section 7 of this act.
(c) "Qualified rotorcraft product development" means rotorcraft
product development performed within this state.
(d) "Qualified rotorcraft 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
rotorcraft 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
rotorcraft product development. The term does not include capital
costs and overhead, such as expenses for land, structures, or
depreciable property.
(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 claiming the credit under this section must file a complete
annual report with the department under RCW 82.32.534.
(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, unless no tax preference
created in this act has been used by July 1, 2017, then this section
expires July 1, 2017.
NEW SECTION. Sec. 9 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
computer hardware, computer peripherals, or software, not otherwise
eligible for exemption under RCW 82.08.02565, used primarily in the
development, design, and engineering of rotorcraft products or in
providing rotorcraft 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 must retain a copy of the certificate for
the seller's files.
(3) As used in this section, the following definitions apply:
(a) "Rotorcraft products" has the same meaning as provided in
section 7 of this act.
(b) "Rotorcraft services" has the same meaning as provided in
section 7 of this act.
(c) "Peripherals" includes keyboards, monitors, mouse devices, and
other accessories that operate outside of the computer, excluding
cables, conduit, wiring, and other similar property.
(4) This section expires July 1, 2024, unless no tax preference
created in this act has been used by July 1, 2017, then this section
expires July 1, 2017.
NEW SECTION. Sec. 10 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:
(a) Charges, for labor and services rendered in respect to the
constructing of new buildings, made to: (i) A manufacturer engaged in
the manufacturing of commercial rotorcrafts, commercial rotorcraft
components, or commercial rotorcraft mission equipment; or (ii) a port
district, political subdivision, or municipal corporation, to be leased
to a manufacturer engaged in the manufacturing of commercial
rotorcrafts or commercial rotorcraft components;
(b) Sales of tangible personal property that will be incorporated
as an ingredient or component of such buildings during the course of
the constructing; or
(c) Charges made for labor and services rendered in respect to
installing, during the course of constructing such buildings, building
fixtures not otherwise eligible for the exemption under RCW
82.08.02565(2)(b).
(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 must retain a copy of the certificate for
the seller's files.
(3) No application is necessary for the tax exemption in this
section. However, in order to qualify under this section before
starting construction, the port district, political subdivision, or
municipal corporation must have entered into an agreement with the
manufacturer to build such a facility. A person claiming the exemption
under this section is subject to all the requirements of chapter 82.32
RCW. In addition, the person must file a complete annual report with
the department under RCW 82.32.534.
(4) The exemption in this section applies to buildings or parts of
buildings, including buildings or parts of buildings used for the
storage of raw materials or finished products, that are used primarily
in the manufacturing of commercial rotorcrafts.
(5) For the purposes of this section, "commercial rotorcraft,"
"commercial rotorcraft component," and "commercial rotorcraft mission
equipment" have the same meanings given in RCW 82.32.550.
(6) This section expires July 1, 2024, unless no tax preference
created in this act has been used by July 1, 2017, then this section
expires July 1, 2017.
NEW SECTION. Sec. 11 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:
(a) Tangible personal property that will be incorporated as an
ingredient or component in constructing new buildings for: (i) A
manufacturer engaged in the manufacturing of commercial rotorcrafts,
commercial rotorcraft components, or commercial rotorcraft mission
equipment; or (ii) a port district, political subdivision, or municipal
corporation, to be leased to a manufacturer engaged in the
manufacturing of commercial rotorcrafts; or
(b) Labor and services rendered in respect to installing, during
the course of constructing such buildings, building fixtures not
otherwise eligible for the exemption under RCW 82.08.02565(2)(b).
(2) The eligibility requirements, conditions, and definitions in
section 10 of this act apply to this section, including the filing of
a complete annual report with the department under RCW 82.32.534.
(3) For the purposes of this section, "commercial rotorcraft,"
"commercial rotorcraft component," and "commercial rotorcraft mission
equipment" have the same meanings as provided in RCW 82.32.550.
(4) This section expires July 1, 2024, unless no tax preference
created in this act has been used by July 1, 2017, then this section
expires July 1, 2017.
Sec. 12 RCW 82.04.290 and 2013 c 23 s 314 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) or (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.
(b) This subsection (2) 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 or her 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) Until July 1, 2024, 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.
(4)(a) Until July 1, 2024, unless provided otherwise in this
subsection (4), upon every person engaging within this state in the
business of performing rotorcraft product development for others, as to
such persons, the amount of tax with respect to such business is equal
to the gross income of the business multiplied by a rate of 0.9
percent.
(b) "Rotorcraft product development" has the same meaning as
provided in section 7 of this act.
(c) This subsection (4) does not apply on or after July 1, 2017, if
no tax preference created in this act has been used by July 1, 2017.
Sec. 13 RCW 82.04.290 and 2013 3rd sp.s. c 2 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 is 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) or (3) of this
section; as to such persons the amount of tax on account of such
activities is equal to the gross income of the business multiplied by
the rate of 1.5 percent.
(b) This subsection (2) 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 or her principal or supplier to be used for informational,
educational, and promotional purposes is not considered a part of the
agent's remuneration or commission and is not subject to taxation under
this section.
(3)(a) Until July 1, 2040, 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 is 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.
(4)(a) Until July 1, 2024, unless provided otherwise in this
subsection (4), upon every person engaging within this state in the
business of performing rotorcraft product development for others, as to
such persons, the amount of tax with respect to such business is equal
to the gross income of the business multiplied by a rate of 0.9
percent.
(b) "Rotorcraft product development" has the same meaning as
provided in section 7 of this act.
(c) This subsection (4) does not apply on or after July 1, 2017, if
no tax preference created in this act has been used by July 1, 2017.
NEW SECTION. Sec. 14 This act takes effect July 1, 2014, except
as provided otherwise in this section:
(1) Section 4 of this act takes effect July 1, 2015;
(2) Section 5 of this act takes effect, subject to the contingency
in section 2, chapter 2, Laws of 2013 3rd sp. sess.; and
(3) Sections 6 and 13 of this act take effect July 1, 2015, subject
to the contingency in section 2, chapter 2, Laws of 2013 3rd sp. sess.
NEW SECTION. Sec. 15 Section 3 of this act expires July 1, 2015.
NEW SECTION. Sec. 16 Section 5 of this act expires July 1, 2015,
subject to the contingency stated in section 2, chapter 2, Laws of 2013
3rd sp. sess.
NEW SECTION. Sec. 17 Section 12 of this act expires on the date
that section 13 of this act takes effect.
NEW SECTION. Sec. 18 (1) The department of revenue must make a
determination regarding whether the condition in sections 4(15)(d),
6(15)(d), 7(6), 8(8), 9(4), 10(6), 11(4), 12(4)(c), and 13(4)(c) of
this act has occurred.
(2) If the department of revenue determines that the condition
specified in subsection (1) of this section has not occurred by July 1,
2017, the department of revenue must provide written notice stating
that on July 1, 2017, the sections and subsections listed in subsection
(1) of this section expire or no longer apply. Written notice under
this subsection (2) must be provided to the chief clerk of the house of
representatives, the secretary of the senate, the office of the code
reviser, and others as deemed appropriate by the department of revenue.