AN ACT Relating to providing a sales and use tax exemption for materials and labor purchased by veterans' organizations in the construction of memorials; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and providing an effective date.

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

NEW SECTION.  Sec. 1. A new section is added to chapter 82.08 RCW to read as follows:

(1) The tax imposed by RCW 82.08.020 does not apply to:

(a) The sale of granite or any other tangible personal property to a veterans' organization if the property is used in the construction of, or incorporated into, a veterans' memorial; and

(b) The sale of or charge made to a veterans' organization for labor and services rendered in respect to constructing, installing, repairing, altering, cleaning, or improving a veterans' memorial.

(2) A person claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. Sellers may make tax exempt sales under this section only if 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) For the purposes of this section and section 2 of this act, "veterans' organization" means an organization formed and operated for the primary purpose of benefiting veterans of the United States armed forces that is exempt from taxation under Title 26 U.S.C. Sec. 501(c)(19) of the federal internal revenue code of 1986, as amended, as of the effective date of this section.

NEW SECTION.  Sec. 2. A new section is added to chapter 82.12 RCW to read as follows:

(1) The tax imposed by RCW 82.12.020 does not apply to the use of:

(a) Granite or any other tangible personal property by a veterans' organization if the property is used in the construction of, or incorporated into, a veterans' memorial; and

(b) Labor and services by a veterans' organization in respect to constructing, installing, repairing, altering, cleaning, or improving a veterans' memorial.

(2) The definitions, conditions, and requirements in section 1 of this act apply to this section.

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