APPENDIX ONE

AUTHORIZING STATUTE FOR EXEMPTION STUDY

RCW 43.06.400

RCW 43.06.400
Listing of reduction in revenues from tax exemptions to be submitted to legislature by department of revenue -- Periodic review and submission of recommendations to legislature by governor.

Beginning in January 1984, and in January of every fourth year thereafter, the department of revenue shall submit to the legislature prior to the regular session a listing of the amount of reduction for the current and next biennium in the revenues of the state or the revenues of local government collected by the state as a result of tax exemptions.      The listing shall include an estimate of the revenue lost from the tax exemption, the purpose of the tax exemption, the persons, organizations, or parts of the population which benefit from the tax exemption, and whether or not the tax exemption conflicts with another state program.       The listing shall include but not be limited to the following revenue sources:

(1) Real and personal property tax exemptions under Title 84 RCW;

(2) Business and occupation tax exemptions, deductions, and credits under chapter 82.04 RCW;

(3) Retail sales and use tax exemptions under chapters 82.08, 82.12, and 82.14 RCW;

(4) Public utility tax exemptions and deductions under chapter 82.16 RCW;

(5) Food fish and shellfish tax exemptions under chapter 82.27 RCW;

(6) Leasehold excise tax exemptions under chapter 82.29A RCW;

(7) Motor vehicle and special fuel tax exemptions and refunds under chapters 82.36 and 82.38 RCW;

(8) Aircraft fuel tax exemptions under chapter 82.42 RCW;

(9) Motor vehicle excise tax exclusions under chapter 82.44 RCW; and

(10) Insurance premiums tax exemptions under chapter 48.14 RCW.

The department of revenue shall prepare the listing required by this section with the assistance of any other agencies or departments as may be required.

The department of revenue shall present the listing to the ways and means committees of each house in public hearings.

Beginning in January 1984, and every four years thereafter the governor is requested to review the report from the department of revenue and may submit recommendations to the legislature with respect to the repeal or modification of any tax exemption.       The ways and means committees of each house and the appropriate standing committee of each house shall hold public hearings and take appropriate action on the recommendations submitted by the governor.

As used in this section, "tax exemption" means an exemption, exclusion, or deduction from the base of a tax; a credit against a tax; a deferral of a tax; or a preferential tax rate.

[1999 c 372 5; 1987 c 472 16; 1983 2nd ex.s. c 3 60.]

NOTES:

     Severability -- 1987 c 472: See RCW 79.71.900.

     Construction -- Severability -- Effective dates -- 1983 2nd ex.s. c 3: See notes following RCW 82.04.255.

Review and termination of tax preferences: Chapter 43.136 RCW.