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Legislative sessions 2003 - 2006
Indexed by major tax area
Compiled by the Research Division, Washington State Department of Revenue
Updated - April, 2006
Retail sales/use tax - state tax rate
| 2003 - ESHB 2231 | Additional 0.3% sales/use tax for sales/leases of new/used vehicles. |
RETAIL SALES/USE TAX - Tax Incentive Programs
| 2003 - 2SHB 1240 | Deferral/exemption for biodiesel & alcohol fuel production. |
| 2003 - 2SHB 1241 | Exemption for biodiesel & alcohol fuel distribution & sale. |
| 2003 - EHB 2146 | Deferral/exemption for wood biomass fuel production. |
| 2003 - EHB 2146 | Exemption for wood biomass fuel distribution & sale. |
| 2003 - HB 2294 | Exemption for computers used in design of commercial aircraft. |
| 2003 - HB 2294 | Exemption for facilities to assemble a super-efficient aircraft. |
| 2003 - SB 5725 | Exemption for facilities to manufacture semiconductor materials. |
| 2003 - SB 5725 | Exemption for gasses/chemicals used in semiconductor materials. |
| 2004 - ESHB 2546 | High technology tax deferral/exemption extended until 2015. |
| 2004 - SSB 6240 | Extends exemption for manufacturers locating in rural co. |
| 2004 - 2SSB 6304 | Exemption for purchases by aluminum producers (until 2007). |
| 2005 - ESHB 2221 | Deferral/exemption for fruit/vegetable processing/storing facilities. |
| 2005 - ESHB 2221 | Remittance for warehouses; size of cold storage facilities reduced. |
| 2005 - ESHB 2314 | Deferral/exemption for historic auto museum. |
| 2005 - 2SSB 5916 | Exemption for alternative clean fuel vehicles and hybrids (2009-10). |
| 2006 - SHB 1523 | Rural county deferral expanded to firms that condition vegetable seeds. |
| 2006 - HB 2348 | Exemption for aluminum producers extended through 2011. |
| 2006 - HB 2466 | Exemption for computers/software for firms in the aircraft industry. |
| 2006 - SHB 2640 | Deferral/exemption for biotechnology manuf. facilities & equipment. |
| 2006 - EHB 3159 | Deferral/exemption for dairy and seafood processors through FY 2011. |
| 2006 - EHB 3159 | Warehouse remittance program extended to dairy and seafood processors. |
| 2006 - SHB 3190 | Exemption for gasses/chemicals used in semiconductor materials. |
| 2006 - SSB 6512 | Exemptions for equipment at truck stops to enable use of land-based power. |
RETAIL SALES/USE TAX - Other Tax Base Changes
| 2003 - SHB 1722 | Internet Tax Freedom Act extended. |
| 2003 - EHB 1977 | Use tax exemption for repairs made out-of-state to exempt items. |
| 2003 - SB 5783 | Implementation of Streamlined Sales Tax; uniform tax base. |
| 2004 - ESHB 3116 | Restores exemptions for bone and tissue banks. |
| 2004 - SHB 3158 | Exemption for computer equip. for printers/publishers. |
| 2004 - SSB 6115 | Use tax exemption for donated recreational services. |
| 2004 - SB 6490 | Use tax exemption for fuel cells. |
| 2004 - SB 6515 | Corrections to 2003 Streamlined Sales Tax legislation. |
| 2005 - ESHB 2314 | Tax base extended to extended warranties. |
| 2005 - ESHB 2314 | Exemption for self-service laundries. |
| 2005 - ESHB 2314 | Exemption for delivery charges for direct mail. |
| 2005 - ESHB 2314 | Exemption for medical supplies of cancer centers. |
| 2005 - SSB 5623 | Exemption for maintenance contracts of local transit authorities. |
| 2005 - 2SSB 5663 | Exemption for field burning equipment redefined and extended. |
| 2006 - HB 2364 | Use tax exemption for state credit unions converted from federal status. |
| 2006 - HB 2424 | Exemption for diesel & aircraft fuel used on farms. |
| 2006 - SHB 2457 | Exemption for replacement parts for farm machinery. |
| 2006 - 2SHB 2799 | Exemption for equipment used to heat water via solar energy. |
| 2006 - SHB 2880 | Extends sales tax to telephone & other services for insurance companies. |
| 2006 - ESHB 3222 | Exemption for nutrient mgmt. equipment for livestock feeding facilities. |
RETAIL SALES/USE TAX - Local Taxes
| 2003 - ESHB 1853 | New tax of 0.4% authorized for passenger-only ferry service. |
| 2003 - 2ESSB 5659 | New tax of 0.3% authorized for county public safety programs. |
| 2004 - SSB 6113 | Receipts of 0.08% rural county tax for economic development. |
| 2005 - SSB 5177 | New tax of 0.2% for transportation benefit districts. |
| 2005 - E2SSB 5763 | New tax of 0.1% for counties for mental health/substance abuse. |
| 2006 - SHB 2670 | Tax increment financing; new local sales tax for hospital benefit zones |
| 2006 - E2SHB 2673 | Tax increment financing; new local sales tax for infrastructure financing. |
| 2006 - ESHB 2871 | Regional transportation; reduction in authorized local sales tax rate to 0.1%. |
| 2006 - ESSB 6230 | Deadline for construction of regional centers extended for local sales tax. |
| 2006 - SSB 6686 | New local sales tax to finance municipal services in annexed areas. |
B&O TAX- Tax Rates
| 2003 - 2SHB 1240 | Reduced to 0.138% for production of biodiesel & alcohol fuel. |
| 2003 - HB 1858 | Reduced to 0.484% for treatment of chemical dependency. |
| 2003 - EHB 2146 | Reduced to 0.138% for production of wood biomass fuel. |
| 2003 - HB 2294 | Reduced to 0.4235% & 0.2904% for manufacturing of aircraft. |
| 2003 - ESSB 5071 | Reduced to 0.275% for repair of aircraft. |
| 2003 - SB 5725 | Reduced to 0.275% for manufacturing semiconductor materials. |
| 2004 - SHB 1328 | Reduced to 0.275% for adult boarding homes. |
| 2004 - 2SSB 6304 | Reduced to 0.2904% for aluminum producers through 2006. |
| 2005 - E2SSB 5111 | Reduced to 0.2904% for solar energy systems through 2014. |
| 2006 - HB 2348 | Rate reduction for aluminum producers extended through 2011. |
| 2006 - HB 2466 | Rate reduction for aircraft repair extended through FY 2011. |
| 2006 - EHB 3159 | Rate reduced from 1.5% to 0.484% for services to salmon canners |
| 2006 - SHB 3190 | Reduced to 0.275% for manufacturing semiconductor materials. |
| 2006 - SSB 6874 | Reduced to 0.4235% and then to 0.2904% for timber and wood products. |
B&O TAX - Tax Incentive Programs
| 2003 - 2SHB 1241 | Deduction for biodiesel & alcohol fuel distribution & sale. |
| 2003 - EHB 2146 | Deduction for wood biomass fuel distribution & sale. |
| 2003 - HB 2294 | Tax credit for pre-production costs for commercial aircraft. |
| 2003 - HB 2294 | Tax credit for pre-production computer costs; comm. aircraft. |
| 2003 - HB 2294 | Tax credit for property tax paid on aircraft manufacturing facilities. |
| 2003 - SB 5725 | Tax credit for new employees of semiconductor firms. |
| 2004 - ESHB 2546 | High technology tax credit extended until 2015. |
| 2004 - SSB 6240 | Re-establish tax credit for computer software firms in rural co. |
| 2004 - SSB 6240 | Re-establish tax credit for help-desk services in rural co. |
| 2004 - 2SSB 6304 | Tax credit for property taxes paid by aluminum producers. |
| 2004 - 2SSB 6304 | Credit for aluminum producers for purchases of power. |
| 2005 - ESHB 2221 | Exemption for processing fresh fruit and vegetables. |
| 2005 - ESHB 2314 | Clarification of tax credit for aerospace property taxes. |
| 2005 - ESHB 2314 | B&O credit for contributions to community revitalization programs. |
| 2005 - ESHB 2314 | B&O credit for high tech R&D; revision of ave. tax rate calculation. |
| 2005 - E2SSB 5581 | Exemption for income of life sciences discovery fund authority. |
| 2005 - ESB 6003 | Tax credit for commute trip reduction revised and expanded. |
| 2006 - ESHB 1672 | Tax credit for hospitals that acquire patient lifting devices. |
| 2006 - HB 2348 | Tax credit for aluminum producers extended through 2011. |
| 2006 - HB 2466 | B&O credit for preproduction expenses of firms in the aircraft industry. |
| 2006 - HB 2466 | B&O credit for leasehold taxes on aircraft facilities. |
| 2006 - EHB 3159 | Exemption for manufacturing of dairy & seafood products through FY 2011. |
| 2006 - EHB 3159 | Exemption for processing fresh fruit & vegetables to expire 7/1/2012. |
| 2006 - 2SSB 6326 | B&O credit for 50% of eligible workforce training expenditures |
| 2006 - SSB 6512 | Deduction for income from providing land-based power at truck stops. |
| 2006 - 2SSB 6558 | Tax credit for contributions to motion picture competitiveness program. |
B&O TAX - Other Tax Base Changes
| 2003 - ESHB 2228 | Tax credit for commute trip reduction expenditures reinstituted. |
| 2004 - HB 2453 | Broadening exemption for accommodation sales of vehicles. |
| 2004 - ESHB 2546 | New exemptions for federal grants to small businesses. |
| 2004 - SHB 2929 | Deduction of cattle-related income of meat processors. |
| 2004 - EHB 2968 | Deduction for grants for salmon restoration programs. |
| 2004 - ESHB 3116 | Restores exemptions for bone and tissue banks. |
| 2004 - SB 6259 | Prohibition of local taxes on Internet providers extended. |
| 2005 - HB 1407 | Deduction for cattle-related income of meat processors to expire. |
| 2005 - ESHB 2314 | Exemption for adult boarding homes. |
| 2005 - ESHB 2314 | Exemption for comprehensive cancer centers. |
| 2005 - SB 5175 | International firms that invest in Wash. are eligible for incentives. |
| 2005 - 2SSB 5663 | Tax credit for income related to ag. field burning repealed. |
| 2005 - SB 5857 | Deduction; nonprofit comm. health centers for health care services. |
| 2005 - SSB 5999 | Exemption for income of local parking/business improvement areas. |
| 2006 - SHB 2033 | Local B&O taxes: allocation of income for printers/publishers. |
| 2006 - SHB 2778 | Exemption for income related to promotion of tourism by nonprofits orgs. |
| 2006 - SSB 6533 | Tax credit for increasing portion of carbonated beverage syrup tax paid. |
| 2006 - SSB 6671 | Clarification of the tax liability of professional employer organizations. |
PUBLIC UTILITY TAX
| 2003 - ESHB 2228 | Tax credit for commute trip reduction expenditures reinstituted. |
| 2004 - E2SHB 2518 | Exemption for electricity sold to electrolyte processors. |
| 2004 - ESHB 2675 | Credit for rural development contributions extended until 2011. |
| 2004 - 2SSB 6304 | Exemption for power supplied to aluminum producers. |
| 2005 - ESHB 2314 | PUT credit for contributions to community revitalization programs. |
| 2005 - SSB 5101 | PUT credit for cost recovery relating to customer-generated power. |
| 2005 - ESB 6003 | Tax credit for commute trip reduction revised and expanded. |
| 2006 - HB 2644 | Credit for billing discounts to low-income customers increased for FY 2007 |
| 2006 - SB 6826 | Deduction for income from providing municipal transportation service. |
SELECTIVE SALES TAXES
| 2003 - ESHB 2231 | Gas tax rate increased from 23 to 28 cents per gallon. |
| 2003 - SSB 5051 | Strong beer shifted from liquor sales tax to beer excise tax. |
| 2003 - SSB 5933 | Three additional tribes may enter into cigarette tax agreements. |
| 2005 - HB 1915 | Cigarette tax agreements authorized for four more tribes |
| 2005 - ESHB 2314 | Liquor liter excise tax increased by $1.33. |
| 2005 - ESHB 2314 | Additional $0.60 cigarette tax. |
| 2005 - SB 5794 | Cigarette tax agreement authorized for Puyallup Tribe. |
| 2005 - SB 6097 | Rollback of tobacco products tax rate to from 129.42% to 75%. |
| 2005 - ESSB 6103 | Gas tax increased 28 to 31 cents, July, 2005; future increases to 37.5 cents. |
| 2006 - ESHB 2871 | Surcharge on state rental car tax for local regional transportation. |
| 2006 - ESB 5048 | Prohibition on giving free samples of cigarettes/tobacco products. |
PROPERTY TAX - Levies & Limitations
| 2003 - ESHB 1853 | New levy of $0.75 for a ferry district for passenger-only service. |
| 2003 - 2ESSB 5659 | Voter-approval of regular levy increases > 1%. |
| 2004 - HB 2519 | New $0.50 levy for criminal justice purposes in small counties. |
| 2004 - SSB 5326 | Levies authorized for regional fire protection service authority. |
| 2005 - SHB 1189 | Use of receipts from $0.27 county levy for veterans' assistance. |
| 2005 - HB 1303 | Metropolitan park district special levy for acquired indebtedness. |
| 2005 - ESHB 1631 | County conservation levy; determination relating to econ. growth. |
| 2005 - SB 5136 | New levy of $0.25 for fire districts when other levies are prorated. |
| 2006 - SHB 2345 | Clarification of regional fire protection authority levies. |
| 2006 - SHB 2812 | M&O school levy limit; additions to levy base extended. |
| 2006 - SSB 6141 | Exemption from levy limits for increased value of wind turbines. |
| 2006 - ESSB 6787 | Levy for passenger-ferry service broadened to any ferry service. |
PROPERTY TAX - Current Use Program & Other Assessment Changes
| 2004 - SSB 6216 | Incidental alternative use of current use timber land is allowed. |
| 2005 - HB 1554 | Definition of gross income; excludes food donated to food banks. |
| 2005 - HB 1555 | Special assessments to be applied to the current use value. |
PROPERTY TAX - Senior Citizens/Disabled Persons Exemption Program
| 2004 - SB 5034 | Income and assessed value limits increased. |
| 2005 - HB 1019 | Extension to disabled veterans. |
| 2005 - SHB 1509 | Similar exemption program for widows/widowers of veterans. |
| 2006 - SHB 2569 | Interest rate on deferred taxes reduced to 5%. |
| 2006 - SB 6338 | Senior citizens ex. includes up to 5 acres if required by land use regs. |
PROPERTY TAX - Other Tax Exemptions
| 2003 - 2SHB 1240 | Exemption for biodiesel & alcohol fuel production. |
| 2003 - HB 1905 | Exempt property of nonprofit orgs.; rental of property. |
| 2003 - HB 2001 | Exemption for nonprofit fund-raising for artists. |
| 2003 - EHB 2146 | Exemption for wood biomass fuel production. |
| 2003 - HB 2294 | Exemption for facilities to assemble super-efficient aircraft. |
| 2003 - SB 5725 | Exemption for machinery used to manuf. semiconductor materials. |
| 2004 - SHB 1322 | Exemption for non-trust property owned by Indian tribes. |
| 2004 - ESHB 3116 | Restores exemptions for bone and tissue banks. |
| 2004 - SB 6141 | Clarifies exemption for vehicles with exempt plates. |
| 2005 - HB 1401 | Exemption for sprinkler systems in nightclubs. |
| 2005 - HB 1502 | Exemption for damaged or destroyed property. |
| 2005 - 2SSB 5663 | Exemption for field burning equipment repealed. |
| 2005 - SB 5713 | Exemption for rehabilitation of multiple-unit housing; requirements. |
| 2006 - SHB 1510 | Expanded use of exempt property by nonprofit organizations. |
| 2006 - SHB 2804 | Expanded use of exempt property by nonprofit schools and colleges. |
| 2006 - SHB 3164 | Household exemption increased: $3,000 to $15,000 (if HJR 4223 passes). |
| 2006 - HJR 4223 | Const. amendment increasing household exemption (see SHB 3164). |
| 2006 - SB 6280 | Leased property by nonprofit organizations; irrevocable dedication removed. |
ALL OTHER TAXES
| 2003 - EHB 1037 | Litter tax exemption for food & beverages consumed on-premises. |
| 2003 - SHB 1127 | Licenses for fishers who sell directly to the public. |
| 2003 - ESHB 1462 | Local B&O tax; may not apply to creation of intellectual property. |
| 2003 - EHB 2030 | Local B&O tax; model ordinance and study by DOR. |
| 2003 - ESHB 2088 | Exemption from county storm water charges; forest land. |
| 2003 - ESHB 2192 | Parimutuel tax increased for annual receipts |
| 2003 - 2SSB 5074 | Clarification of harvesting and marketing costs for timber tax. |
| 2004 - ESHB 2693 | Phased-in transfer of timber tax on public lands to counties. |
| 2004 - SSB 6286 | Petroleum products tax exemption for liquefied gas. |
| 2004 - ESB 6598 | Separate accounting for public utility districts; PUD tax. |
| 2005 - SHB 1887 | Litter tax exemption for caterers & nearby food consumption. |
| 2005 - HB 1958 | Fish tax; earmarking of tax on sea urchins/cucumbers continued. |
| 2005 - HB 2170 | REET no longer "dedicated" to funding of public schools. |
| 2005 - ESHB 2314 | Leasehold tax exemption for Clark County amphitheater. |
| 2005 - ESHB 2314 | Phase out of $6.50 per day nursing home fee. |
| 2005 - 2SSB 5154 | Leasehold tax exemption for Ft. Vancouver. |
| 2005 - SSB 5414 | Aircraft fuel tax rate increased from 10 to 11 cents/gallon. |
| 2005 - ESSB 6050 | REET; portion of the tax earmarked for new city/county assistance. |
| 2006 - SHB 2678 | Petroleum products tax extended to 6/1/2013 (tax not currently imposed) |
| 2006 - ESHB 2871 | Local motor vehicle excise tax authorized for regional transportation. |
| 2006 - HB 2879 | $5 fee for filing real estate affidavits repealed. |
| 2006 - SB 6368 | Nursing home fee is repealed, eff. 7/1/2007. |
NEW TAXES & FEES
| 2003 - SHB 2215 | Fee of $35 per vehicle sold for motor vehicle dealers. |
| 2003 - ESSB 5247 | Two new types of local option gasoline taxes established. |
| 2003 - E2SSB 5341 | Fee of $6.50 per patient per day at nursing homes. |
| 2003 - ESSB 6026 | Local fee on lodging; $2 per night. |
| 2005 - ESHB 1031 | B&O tax of 0.1% on gambling activities/parimutuel wagering. |
| 2005 - SHB 2085 | $1 fee on new, replacement vehicle tires. |
| 2005 - ESHB 2314 | Broadened farm deduction for new estate tax. |
| 2005 - ESB 6096 | Stand-alone state estate tax enacted, independent of federal tax. |
| 2006 - SSB 6874 | New B&O tax surcharge of 0.052% for timber and wood products. |
TAX ADMINISTRATION
| 2003 - SHB 1069 | Property tax notice of delinquency; waiver of penalties. |
| 2003 - HB 1073 | Foreclosure proceedings; leased Lake Cushman lots. |
| 2003 - SHB 1075 | Technical corrections; forest land values & open space lands. |
| 2003 - SHB 1213 | Statute authorizing the Tax Structure Study is repealed. |
| 2003 - SHB 1278 | Listing of personal property; electronic distribution. |
| 2003 - ESHB 1564 | Housekeeping changes for County Treasurers. |
| 2003 - HB 1591 | Calculation of interest rate for state excise taxes. |
| 2003 - SHB 1930 | Reporting by manufacturers of tobacco products. |
| 2003 - SHB 1943 | Enforcement provisions for cigarette tax. |
| 2003 - SHB 2027 | Reporting of cigarettes sold by out-of-state vendors. |
| 2003 - HB 2063 | Reporting of data on purchases of private timber to DOR. |
| 2003 - EHB 2269 | Abandonment period for unclaimed property reduced to 3 yrs. |
| 2003 - EHB 2269 | Excise tax due date advanced from 25th to 20th of month. |
| 2003 - EHB 2269 | Definition of successor to include transfers of intangible assets. |
| 2003 - EHB 2269 | Excise tax penalties increased; new 5% "unregistered" penalty. |
| 2003 - EHB 2269 | Verification of vendor registration at fairs & special events. |
| 2003 - ESSB 5247 | DOR to administer any local option gasoline taxes that are levied. |
| 2003 - ESB 5256 | Cost-benefit statement for significant legislative rules. |
| 2003 - ESSB 5404 | Revenue enhancement in biennial budget; new DOR personnel. |
| 2003 - SB 5512 | Impact of agency admin. rules on non-profit organizations. |
| 2003 - SSB 5737 | Reporting of unclaimed property. |
| 2003 - ESSB 5766 | Notification of admin. rules that impact businesses. |
| 2003 - SB 5865 | Public facilities districts; additional types of facilities. |
| 2003 - ESSB 6058 | Delayed transfer of state levy receipts to student achievement fund. |
| 2004 - SHB 2055 | Bundling of charges for telephone services. |
| 2004 - EHB 2318 | DOR to confirm small forest landowner status. |
| 2004 - HB 2683 | Notification of administrative rule adoption. |
| 2004 - SHB 2878 | Clarification of certain duties of County Treasurers. |
| 2004 - EHB 3036 | Gift certificates exempt from reporting as unclaimed property. |
| 2004 - SB 6448 | Telephone taxes (WTAP & TRS) transferred to DOR. |
| 2004 - SB 6485 | Audits of hospitals must be coordinated with other agencies. |
| 2004 - SB 6663 | Registration of vendors at fairs & special events. |
| 2005 - SHB 1158 | Administrative revisions for County Treasurers. |
| 2005 - 2SHB 1240 | Electronic processing of REET affidavits; payment date advanced. |
| 2005 - EHB 1241 | Driver's license required to register a vehicle in Washington. |
| 2005 - SHB 1299 | Repeal of various tax exemptions which are not currently utilized. |
| 2005 - HB 1315 | REET on controlling interests; reporting to Sec. of State. |
| 2005 - ESHB 1397 | Vehicle emission standards; DOR to assist in study. |
| 2005 - ESHB 1703 | Transit fare cards exempted from unclaimed property. |
| 2005 - SSB 5052 | Estate tax; apportionment of value among beneficiaries. |
| 2005 - ESSB 5396 | In-lieu payments by the state for habitat conservation lands. |
| 2005 - SB 5948 | Unclaimed property; requirement to publish names eliminated. |
| 2005 - SSB 6078 | I-601 expenditure limit; temp. simple majority approval of tax increases. |
| 2005 - ESSB 6090 | Revenue enhancement for DOR; funding for 14 new positions. |
| 2006 - EHB 1069 | Performance audits of tax preferences by JLARC. |
| 2006 - HB 2671 | Monthly excise tax due date move from 20th to 25th of following month. |
| 2006 - HB 2671 | Electronic funds transfer; date/time of tax payments received. |
| 2006 - HB 2671 | 5% assessment penalty; applies only if taxes are substantially underpaid. |
| 2006 - ESHB 2871 | Administration of a local gas tax shifted from DOR to Dept. of Licensing |
| 2006 - SSB 6247 | Revised motor vehicle depreciation schedules for local excise taxes. |
| 2006 - ESB 6537 | Allows direct shipment of wine by wineries to Washington consumers. |
