Wash. Admin. Code § 458-29A-400 - Leasehold excise tax-Exemptions
(1)
Introduction.
(a) This rule
explains the exemptions from leasehold excise tax provided by
RCW
82.29A.125,
82.29A.130,
82.29A.132,
82.29A.134,
82.29A.135,
82.29A.136,
82.29A.137,
82.29A.138, and
82.29A.139. To be exempt from the
leasehold excise tax, the property subject to the leasehold interest must be
used exclusively for the purposes for which the exemption is granted.
(b) This rule also explains the expiration
date for new tax preferences for the leasehold excise tax pursuant to the
language found at
RCW
82.32.805.
(c)
Rule examples. This rule
includes a number of examples that identify a set of facts and then states a
conclusion. The examples should be used only as a general guide. The department
of revenue (department) will evaluate each case on its particular facts and
circumstances and apply both this rule and other statutory and common law
authority.
(2)
Definitions. For purposes of this rule, the following definitions
apply:
(a) "New tax preference" means a tax
preference that initially takes effect after August 1, 2013, or a tax
preference in effect as of August 1, 2013, that is expanded or extended after
August 1, 2013, even if the expanding or extending legislative amendment
includes any other changes to the tax preference.
(b) "Tax preference" has the same meaning as
in RCW
43.136.021 with respect to any state tax
administered by the department, except does not include the Washington estate
and transfer tax in chapter 83.100 RCW.
(3)
Operating properties of a public
utility.
(a) All leasehold interests
that are part of the operating properties of a public utility are exempt from
leasehold excise tax if the leasehold interest is assessed and taxed as part of
the operating property of a public utility under chapter 84.12 RCW.
(b)
Example. Assume ABC Railroad
Company is a public utility. Tracks leased to ABC Railroad Company are exempt
from leasehold excise tax because ABC Railroad Company is a public utility
assessed and taxed under chapter 84.12 RCW and the tracks are part of the
railroad's operating properties.
(4)
Student housing at public and
nonprofit schools and colleges.
(a) All
leasehold interests in facilities owned or used by a school, college, or
university which leasehold provides housing to students are exempt from
leasehold excise tax if the student housing is exempt from property tax under
RCW
84.36.010 and
84.36.050.
(b)
Example. Assume State Public
University leases a building to use as a dormitory for its students. The
leasehold interest associated with this building is exempt from the leasehold
excise tax. This is because the dormitory is used to house State Public
University's students.
(5)
Subsidized housing.
(a) All leasehold interests of subsidized
housing are exempt from leasehold excise tax if the property is owned in fee
simple by the United States, the state of Washington or any of its political
subdivisions, and residents of the housing are subject to specific income
qualification requirements.
(b)
Example. Assume an apartment building and the property on which it
is located is:
* Owned in fee simple by the state of Washington; and
* Used as subsidized housing for residents subject to income qualification requirements.
If the United States Department of Housing and Urban Development holds the leasehold interest on the property it is exempt from leasehold excise tax. This is because the property is owned in fee simple by the state of Washington, used for subsidized housing, and the residents are subject to income qualification requirements.
(6)
Affordable housing on public
lands.
(a) All leasehold interests in
public lands are exempt from leasehold excise tax when used for the placement
of affordable housing under the following conditions:
(i) A lessee must commit to renting or
selling 100 percent of the units as permanently affordable for low-income and
moderate-income households; and
(ii) The term of the lease is at least 20
years.
(b) For purposes
of this subsection, the following definitions apply:
(i) "Affordable housing" has the same meaning
as provided in
RCW
84.14.010 and means residential housing that
is rented by a person or household whose monthly housing costs, including
utilities other than telephone, do not exceed 30 percent of the household's
monthly income. For the purposes of housing intended for owner occupancy,
"affordable housing" means residential housing that is within the means of low
or moderate-income households.
(ii)
"Low-income household" has the same meaning as provided in
RCW
84.14.010 and means a single person, family,
or unrelated persons living together whose adjusted income is at or below 80
percent of the median family income adjusted for family size, for the county,
city, or metropolitan statistical area, where the project is located, as
reported by the United States department of housing and affordable
development.
(iii) "Moderate-income
household" has the same meaning as provided in
RCW
84.14.010 and means a single person, family,
or unrelated persons living together whose adjusted income is more than 80
percent but is at or below 115 percent of the median family income adjusted for
family size, for the county, city, or metropolitan statistical area, where the
project is located, as reported by the United States Department of Housing and
Urban Development.
(iv) "Public
lands" has the same meaning as provided in
RCW
79.02.010 and means lands of the state of
Washington administered by the department of natural resources including, but
not limited to, state lands, state forestlands, lands included in a state
forestland pool, and aquatic lands.
(7)
Public employee housing.
(a) All leasehold interests in public
property or property of a community center which is exempt from property tax
used as a residence by an employee of the public owner or the owner of the
community center which is exempt from property tax are exempt from leasehold
excise tax if the employee is required to live on the public property or
community center which is exempt from property tax as a condition of their
employment. The "condition of employment" requirement is met only when the
employee is required to accept the lodging in order to enable the employee to
properly perform the duties of their employment. However, the "condition of
employment" requirement can be met even if the employer does not compel an
employee to reside in a publicly owned residence or residence owned by a
community center which is exempt from property tax.
(b)
Examples.
(i) A park ranger employed by the National
Park Service, an agency of the United States government, resides in a house
furnished by the agency at a national park. The ranger is required to be on
call 24 hours a day to respond to requests for assistance from park visitors
staying at an adjacent overnight campground. The use of the house is exempt
from leasehold excise tax because the lodging enables the ranger to properly
perform her duties.
(ii) An
employee of the Washington department of fish and wildlife resides in a house
furnished by the agency at a fish hatchery although, under the terms of a
collective bargaining agreement, the agency may not compel the employee to live
in the residence as a condition of employment. In exchange for receiving use of
the housing provided by the agency, the employee is required to perform
additional duties, including regularly monitoring certain equipment at the
hatchery during nights and on weekends and escorting public visitors on tours
of the hatchery on weekends. The use of the house is exempt from leasehold
excise tax because the lodging enables the employee to properly perform the
duties of his employment. The use is exempt even though the employee would
continue to be employed by the agency if the additional duties were not
performed and even though state employees of an equal job classification are
not required to perform the additional duties.
(iii) A professor employed by State
University is given the choice of residing in university-owned campus housing
free of charge or of residing elsewhere and receiving a cash allowance in
addition to her regular salary. If she elects to reside in the campus housing
free of charge, the value of the lodging furnished to the professor would be
subject to leasehold excise tax because her residence on campus is not required
for her to perform properly the duties of her employment.
(8)
Military housing.
(a) All leasehold interests in real property
used for the placement of housing that consists of military housing units and
ancillary supporting facilities are exempt from leasehold excise tax if the
property is situated on land owned in fee by the United States, is used for the
housing of military personnel and their families, and is a development project
awarded under the military housing privatization initiative of 1996,
10 U.S.C. Sec.
2885, as existing on June 12, 2008.
(b) For the purposes of this subsection,
"ancillary supporting facilities" means facilities related to military housing
units, including facilities to provide or support elementary or secondary
education, child care centers, day care centers, child development centers, tot
lots, community centers, housing offices, dining facilities, unit offices, and
other similar facilities for the support of military housing.
(9)
Month-to-month leases in
residential units to be demolished or removed.
(a) Leasehold interests in properties rented
for residential purposes on a month-to-month basis pending destruction or
removal for construction of a public highway or public building are exempt from
the leasehold excise tax. Thus, if the state or other public entity has
acquired private property for purposes of building or expanding a highway, or
for the construction of public buildings at an airport, the capitol campus, or
some other public facility, and the public entity rents the property for
residential purposes on a month-to-month basis pending destruction or removal
for construction, these leases do not create taxable leasehold interests. This
exemption does not require evidence of imminent removal of the residential
units; the term "pending" merely means "while awaiting." The exemption is based
upon the purpose for which the public entity holds the units.
(b)
Example. State University
has obtained capital development funding for the construction of new campus
buildings, and has purchased a block of residential property adjacent to campus
for the sole purpose of expansion. Jim leases these houses from State
University pursuant to a month-to-month rental agreement and rents them to
students. Construction of the new buildings is not scheduled to begin for two
years. Jim is not subject to the leasehold excise tax, because State University
is holding the residential properties for the sole purpose of expanding its
facilities, and Jim is leasing them pending their certain, if not imminent,
destruction.
(10)
Interests consisting of 3,000 or more residential and recreational
lots. All leasehold interests consisting of 3,000 or more residential
and recreational lots that are or may be subleased for residential and
recreational purposes are exempt from leasehold excise tax. Any combination of
residential and recreational lots totaling at least 3,000 satisfies the
requirement of this exemption.
RCW
82.29A.136.
(11)
Nonprofit fair
associations.
(a) All leasehold
interests used for fair purposes of a nonprofit fair association are exempt
from leasehold excise tax if the fair association sponsors or conducts a fair
or fairs supported by revenues collected under
RCW
67.16.100 and allocated by the director of
the department of agriculture. The property must be owned in fee simple by the
United States, the state of Washington or any of its political subdivisions.
However, if a nonprofit association subleases exempt property to a third party,
the sublease is a taxable leasehold interest.
(b)
Example. Assume a leasehold
interest held by Local Nonprofit Fair Association is exempt from leasehold
excise tax. Local Nonprofit Fair Association subleases some of the buildings on
the fairgrounds to private parties for storage during the winter. These
subleases are subject to the leasehold excise tax.
(12)
Interests held by enrolled
Indians.
(a) Leasehold interests held
by enrolled Indians are exempt from leasehold excise tax if the lands are owned
or held by any Indian or Indian tribe, and the fee ownership of the land is
vested in or held in trust by the United States, unless the leasehold interests
are subleased to a lessee which would not qualify under chapter 82.29A RCW,
RCW
84.36.451 and
84.40.175 and the tax on the
lessee is not preempted due to the balancing test (see WAC
458-20-192).
(b) Any leasehold interest held by an
enrolled Indian or a tribe, where the leasehold is located within the
boundaries of an Indian reservation, on trust land, on Indian country, or is
associated with the treaty fishery or some other treaty right, is not subject
to leasehold excise tax.
(c)
Example. Assume an enrolled member of the Puyallup Tribe leases
port land at which the member keeps his or her boat, and the boat is used in a
treaty fishery. The leasehold interest is exempt from the leasehold tax. For
more information on excise tax issues related to enrolled Indians, see WAC
458-20-192 (Indians-Indian
country).
(13)
Leases on Indian lands to non-Indians.
(a) Leasehold interests held by non-Indians
(not otherwise exempt from tax due to the application of the balancing test
described in WAC
458-20-192) in any real property
of any Indian or Indian tribe, band, or community that is held in trust by the
United States or subject to a restriction against alienation imposed by the
United States are exempt from leasehold excise tax if the amount of contract
rent paid is greater than or equal to 90 percent of fair market rental value.
In determining whether the contract rent of such lands meets the required level
of 90 percent of market value, the department will use the same criteria used
to establish taxable rent under
RCW
82.29A.020 (2)(g) and WAC
458-29A-200.
(b)
Example. Harry leases land
held in trust by the United States for the Yakama Nation for the sum of $900
per month. The fair market value for similar lands used for similar purposes is
$975 per month. The lease is exempt from the leasehold excise tax because Harry
pays at least 90 percent of the fair market value for the qualified lands. For
more information on the preemption analysis and other tax issues related to
Indians, see WAC
458-20-192.
(14)
Annual taxable rent is less than
$250.
(a) Leasehold interests for
which the taxable rent is less than $250 per year are exempt from leasehold
excise tax. For the purposes of this exemption, if the same lessee has a
leasehold interest in two or more contiguous parcels of property owned by the
same lessor, the taxable rent for each contiguous parcel will be combined and
the combined taxable rent will determine whether the threshold established by
this exemption has been met. To be considered contiguous, the parcels must be
in closer proximity than merely within the boundaries of one piece of property.
When determining the annual leasehold rent, the department will rely upon the
actual substantive agreement between the parties. Rent payable pursuant to
successive leases between the same parties for the same property within a
12-month period will be combined to determine annual rent; however, a single
lease for a period of less than one year will not be projected on an annual
basis.
(b)
Examples.
(i) The yacht club rents property from the
Port of Bay City for its clubhouse and moorage. It also rents a parking stall
for its commodore. The parking stall is separated from the clubhouse only by a
common walkway. The parking stall lease is a part of the clubhouse lease
because it is contiguous to the clubhouse, separated only by a necessary
walkway.
(ii) Ace Flying Club rents
hangars, tie downs, and ramps from the Port of Desert City. It has separate
leases for several parcels. The hangars are separated from the tie down space
by a row of other hangars, each of which is leased to a different party. Common
ramps and roadways also separate the club's hangars from its tie-downs. The
hangars, because they are adjacent to one another, create a single leasehold
interest. The tie downs are a separate taxable leasehold interest because they
are not contiguous with the hangars used by Ace Flying Club.
(iii) Grace leases a lot from the City of
Flora, from which she sells crafts at different times throughout the year. She
pays $50 per month for the lot, and has a separate lease for each season during
which she sells. She has one lease from May through September, and a separate
lease for the time between Thanksgiving and Christmas, which might run 30 to 40
days, depending on the year. The leases will be combined for the purposes of
determining the leasehold excise tax. They relate to the same piece of
property, for the same activity by the same lessee, and occur within the same
year.
(iv) Elizabeth owns a
Christmas tree farm. Every year she rents a small lot from the Port of Capital
City, adjacent to its airport, to sell Christmas trees. She pays $125 to the
port to rent the lot for six weeks. It is the only time during the year that
she rents the lot. Her lease is exempt from the leasehold excise tax, because
it does not exceed $250 per year in taxable rent.
(15)
Leases for a continuous
period of less than 30 days. Leasehold interests that provide use and
possession of public property or property of a community center which is exempt
from property tax for a continuous period of less than 30 days are exempt from
leasehold excise tax. In determining the duration of the lease, the department
will rely upon the actual agreement and/or practice between the parties. If a
single lessee is given successive leases or lease renewals of the same
property, the arrangement is considered a continuous use and possession of the
property by the same lessee. A leasehold interest does not give use and
possession for a period of less than 30 days based solely on the fact that the
lessor has reserved the right to use the property or to allow third parties to
use the property on an occasional, temporary basis.
(16)
Public works contracts.
(a) Leasehold interests in publicly owned
real or personal property held by a contractor solely for the purpose of a
public improvements contract or work to be executed under the public works
statutes of Washington state or the United States are exempt from leasehold
excise tax. To receive this exemption, the contracting parties must be the
public owner of the property and the contractor that performs the work under
the public works statutes.
(b)
Example. Assume Tinker Construction is a contractor performing
work to construct a second deck on the Nisqually Bridge pursuant to a public
works contract between the state of Washington and Tinker Construction. During
construction of the second deck on the Nisqually Bridge any leasehold interest
in real or personal property created for Tinker Construction solely for the
purpose of performing the work necessary under the terms of the contract is
exempt from leasehold excise tax.
(17)
Correctional industries in state
adult correctional facilities.
(a)
Leasehold interests for the use and possession of state adult correctional
facilities for the operation of correctional industries under
RCW
72.09.100 are exempt from leasehold excise
tax.
(b)
Examples.
(i) Assume ABC Retail Company, a for-profit
corporation, operates and manages a business within a state prison under an
agreement between it and the department of corrections. ABC Retail Company is
exempt from leasehold excise tax for its use and possession of state
property.
(ii) Assume ABC
Charitable Society, a nonprofit organization, operates and manages a business
within a state prison under an agreement between it and the department of
corrections. ABC Charitable Society is exempt from leasehold excise tax for its
use and possession of state property.
(18)
Camp facilities for persons with
disabilities.
(a) Leasehold interests
in a camp facility are exempt from leasehold excise tax if the property is used
to provide organized and supervised recreational activities for persons with
disabilities of all ages, and for public recreational purposes, by a nonprofit
organization, association, or corporation which would be exempt from property
tax under RCW 84.36.030(1)
if it owned the property.
(b)
Example. Assume a county park with camping facilities is leased to
Charity Campgrounds, a nonprofit charitable organization that allows the
property to be used by the general public for recreational activities
throughout the year and as a camp for disabled persons for two weeks during the
summer. Charity Campgrounds is exempt from leasehold excise tax because the
nonprofit allows the property to be used by the general public for recreational
activities throughout the year, and to be used as a camp for disabled persons
for two weeks during the summer.
(19)
Public or entertainment areas of
certain baseball stadiums.
(a)
Leasehold interests in public or entertainment areas of a baseball stadium with
natural turf and a retractable roof or canopy, located in a county with a
population of over 1,000,000 people, with a seating capacity of over 40,000,
and constructed on or after January 1, 1995, are exempt from leasehold excise
tax.
(b) "Public or entertainment
areas" for the purposes of this subsection include ticket sales areas, ramps
and stairs, lobbies and concourses, parking areas, concession areas,
restaurants, hospitality and stadium club areas, kitchens or other work areas
primarily servicing other public areas, public rest rooms, press and media
areas, control booths, broadcast and production areas, retail sales areas,
museum and exhibit areas, scoreboards or other public displays, storage areas,
loading, staging, and servicing areas, seating areas and suites, the playing
field, and any other areas to which the public has access or that are used for
the production of the entertainment event or other public usage, and any other
personal property used for such purposes. "Public or entertainment areas" does
not include locker rooms or private offices used exclusively by the
lessee.
(20)
Public or entertainment areas of certain football stadiums and exhibition
centers. Leasehold interests in the public or entertainment areas of an
open-air stadium suitable for national football league football and for Olympic
and world cup soccer, with adjacent exhibition facilities, parking facilities,
and other ancillary facilities constructed on or after January 1, 1998, are
exempt from leasehold excise tax. For the purpose of this subsection, the term
"public and entertainment areas" has the same meaning as set forth in
subsection (19) of this rule.
(21)
Public facilities districts. All leasehold interests in public
facilities districts, as provided in chapter 36.100 or 35.57 RCW are exempt
from leasehold excise tax.
(22)
State route 16 corridor transportation systems. All leasehold
interests in the state route number 16 corridor transportation systems and
facilities constructed and operated under chapter 47.46 RCW are exempt from
leasehold excise tax.
RCW
82.29A.132.
(23)
Sales/leasebacks by regional
transit authorities. All leasehold interests in property of a regional
transit authority or public corporation created under
RCW
81.112.320 under an agreement under
RCW
81.112.300 are exempt from leasehold excise
tax. RCW
82.29A.134.
(24)
Historic sites owned by the United
States government or municipal corporations. All leasehold interests in
property listed on any federal or state register of historical sites are exempt
from leasehold excise tax if the property is:
(a) Owned by the United States government or
a municipal corporation; and
(b)
Wholly contained within a designated national historic reserve under
16 U.S.C. Sec.
461.
(25)
Amphitheaters.
(a) All leasehold interests in the public or
entertainment areas of an amphitheater are exempt from leasehold excise tax if
a private entity is responsible for 100 percent of the cost of constructing the
amphitheater which is not reimbursed by the public owner, both the public owner
and the private lessee sponsor events at the facility on a regular basis, the
lessee is responsible under the lease or agreement to operate and maintain the
facility, and the amphitheater has a seating capacity of over 17,000 reserved
and general admission seats and is in a county that had a population of over
350,000, but less than 425,000 when the amphitheater first opened to the
public.
(b) For the purposes of
this subsection, "public or entertainment areas" include box offices or other
ticket sales areas, entrance gates, ramps and stairs, lobbies and concourses,
parking areas, concession areas, restaurants, hospitality areas, kitchens or
other work areas primarily servicing other public or entertainment areas,
public rest room areas, press and media areas, control booths, broadcast and
production areas, retail sales areas, museum and exhibit areas, scoreboards or
other public displays, storage areas, loading, staging, and servicing areas,
seating areas including lawn seating areas and suites, stages, and any other
areas to which the public has access or which are used for the production of
the entertainment event or other public usage, and any other personal property
used for these purposes. "Public or entertainment areas" do not include office
areas used predominately by the lessee.
(26)
Community colleges and technical
colleges.
(a) All leasehold interests
in facilities owned or used by a community college or technical college are
exempt from leasehold excise tax if the leasehold interest provides:
(i) Food services for students, faculty, and
staff;
(ii) The operation of a
bookstore on campus; or
(iii)
Maintenance, operational, or administrative services to the community college
or technical college.
(b) Provisions of
RCW
82.32.805 and
82.32.808 do not apply to the
exemption specified in this subsection.
(27)
Anaerobic digesters.
(a) Beginning July 1, 2018, all leasehold
interests in buildings, machinery, equipment, and other personal property which
are used primarily for the operation of an anaerobic digester, the land upon
which this property is located, and land that is reasonably necessary in the
operation of an anaerobic digester are exempt from leasehold taxes for a period
of six years from the date on which the facility or the addition to the
existing facility becomes operational.
(b) Claims for the exemption described in (a)
of this subsection must be filed with the department on the form
Leasehold excise tax exemption to operate an anaerobic
digester available at https://dor.wa.gov. Once filed, the exemption
is valid for six assessment years following the date on which the facility or
the addition to the existing facility becomes operational and may not be
renewed. The department must verify and approve claims as it determines to be
justified and in accordance with this subsection. No claims may be filed after
December 31, 2024.
(c) For the
purposes of this subsection, "anaerobic digester" means a facility that
processes organic material into biogas and digestate using microorganisms in a
decomposition process within a closed, oxygen-free container as well as the
equipment necessary to process biogas or digestate produced by an anaerobic
digester into marketable coproducts including, but not limited to, biogas
conditioning, compression, nutrient recovery, and electrical generation
equipment. See
RCW
82.08.900.
(28)
Exemptions for public or
entertainment areas of certain arenas. Leasehold interests in the public
or entertainment areas of the following two types of arenas are exempt from the
leasehold excise tax:
(a) An arena with a
seating capacity of more than 2,000; located on land owned by a city with a
population over 200,000; and within a county with a population of less than
1,500,000. For the purposes of this paragraph, the term "public or
entertainment areas" has the same meaning as set forth in subsection (25) of
this rule.
(b) Beginning October 1,
2023, an arena with a seating capacity of more than 4,000; located on land
owned by, and within, a city with a population over 100,000; and private
entities were responsible for 100 percent of the cost of constructing
improvements to the arena which were not reimbursed by the public owner. For
the purposes of this paragraph, "public or entertainment areas" has the same
meaning as set forth in subsection (25) of this rule, except that it also
includes office areas used predominately by the lessee.
(i) A taxpayer claiming an exemption for this
type of arena must file a complete tax performance report as provided in
RCW
82.32.534.
(ii) This exemption does not apply to
leasehold interests on or after October 1, 2033.
(29)
Certain facilities
owned by the state parks and recreation commission. Beginning January 1,
2023, leasehold interests in facilities owned by the state parks and recreation
commission that are listed on the national register of historic places or the
Washington heritage register are exempt from leasehold excise tax. This
exemption expires January 1, 2034.
(30)
Electric vehicle
infrastructure.
(a) Until July 1, 2025,
leasehold interests in public lands for the purpose of installing, maintaining,
and operating electric vehicle infrastructure are exempt from leasehold excise
tax.
(b) For purposes of this
subsection, the following definitions apply:
(i) "Battery charging station" means an
electrical component assembly or cluster of component assemblies designed
specifically to charge batteries within electric vehicles, which meet or exceed
any standards, codes, and regulations set forth by chapter 19.28 RCW and
consistent with rules adopted under
RCW
19.27.540.
(ii) "Battery exchange station" means a fully
automated facility that will enable an electric vehicle with a swappable
battery to enter a drive lane and exchange the depleted battery with a fully
charged battery through a fully automated process, which meets or exceeds any
standards, codes, and regulations set forth by chapter 19.28 RCW and consistent
with rules adopted under
RCW
19.27.540.
(iii) "Electric vehicle infrastructure" means
structures, machinery, and equipment necessary and integral to support an
electric vehicle, including battery charging stations, rapid charging stations,
battery exchange stations, fueling stations that provide hydrogen for fuel cell
electric vehicles, green electrolytic hydrogen production facilities, and
renewable hydrogen production facilities. See
RCW
82.29A.125.
(iv) "Green electrolytic hydrogen" means
hydrogen produced through electrolysis, and does not include hydrogen
manufactured using steam reforming or any other conversion technology that
produces hydrogen from a fossil fuel feedstock.
(v) "Rapid charging station" means an
industrial grade electrical outlet that allows for faster recharging of
electric vehicle batteries through higher power levels, which meets or exceeds
any standards, codes, and regulations set forth by chapter 19.28 RCW and
consistent with rules adopted under
RCW
19.27.540.
(vi) "Renewable hydrogen" means hydrogen
produced using renewable resources both as the source for hydrogen and the
source for energy input into the production process.
(vii) "Renewable resource" means: Water,
wind, solar energy; geo-thermal energy; renewable natural gas; renewable
hydrogen; wave, ocean, or tidal power; biodiesel fuel not derived from crops
raised on land cleared from old growth or first growth forests; or biomass
energy.
(31)
Manufacture of superefficient airplanes.
(a) Until July 1, 2040, leasehold interests
in port district facilities that are exempt from retail sales tax under
RCW
82.08.980, or use tax under
RCW
82.12.980, and used by a manufacturer engaged
in the manufacturing of superefficient airplanes, are exempt from leasehold
excise tax. A person claiming the business and occupation (B&O) credit
under RCW
82.04.4463, for property taxes and leasehold
excise taxes paid on property used for the manufacture of commercial airplanes
is not eligible for this exemption. See
RCW
82.29A.137.
(b) "Superefficient airplanes" has the same
meaning as provided by
RCW
82.32.550 and means twin aisle airplanes that
carry between 200 and 350 passengers, with a range of more than 7,200 nautical
miles, a cruising speed of approximately mach 0.85, and that use 15 to 20
percent less fuel than other similar airplanes on the market.
(c) A taxpayer claiming this exemption must
annually file a complete tax performance report as provided in
RCW
82.32.534.
(32)
Certain amateur radio
repeaters.
(a) Leasehold interests in
property used for the placement of amateur radio repeaters that are made
available for use by, or are used in support of, a public agency in the event
of an emergency or potential emergency to which the agency is, or may be, a
qualified responder, are exempt from leasehold excise tax. See
RCW
82.29A.138.
(b) "Amateur radio repeater" means an
electronic device that receives a weak or low-level amateur radio signal and
retransmits it at a higher level or higher power, so that the signal can cover
longer distances without degradation, and is used by amateur radio operators
possessing a valid license issued by the federal communications
commission.
(33)
Expiration date for new tax preferences.
(a)
RCW
82.29A.025 incorporates the language found at
RCW
82.32.805 establishing the expiration date of
new tax preferences for the leasehold excise tax.
(i) Generally, every new tax preference
expires on the first day of the calendar year that is subsequent to the
calendar year that is 10 years from the effective date of the tax
preference.
(ii) A future
legislative amendment that expands a tax preference does not extend the tax
preference beyond the period provided in this subsection unless an extension is
expressly and unambiguously stated in the legislative amendment.
(b) This subsection does not apply
if legislation creating a new tax preference includes an expiration date for
the new tax preference.
(c) This
subsection does not apply to an existing tax preference that is amended to
clarify an ambiguity or correct a technical inconsistency. Future enacted
legislation intended to make such clarifications or corrections must explicitly
indicate that intent.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.