Salmon recovery projects/tax

AN ACT Relating to providing a sales and use tax exemption for 1
inputs required for salmon recovery projects; adding a new section to 2
chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and 3
creating a new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 82.08 6
RCW to read as follows: 7
(1) Subject to the requirements of this section, the tax levied 8
by RCW 82.08.020 does not apply to the sales of or charges made for:9
(a) Labor and services rendered in respect to the construction of 10
a qualified salmon recovery project, or the installation of any 11
equipment or tangible personal property incorporated into a qualified 12
salmon recovery project; and 13
(b) Building materials, equipment, and tangible personal property 14
incorporated into a qualified salmon recovery project.15
(2)(a) In order to obtain an exemption certificate under this 16
section, a qualified salmon recovery project sponsor must submit an 17
application to the department for an exemption certificate. The 18
application must include the information necessary, as required by 19
the department, to determine that the qualified salmon recovery 20
project sponsor qualifies for the exemption under this section. The 21
S-0550.1
SENATE BILL 5383
State of Washington 69th Legislature 2025 Regular Session
By Senators Dozier, Boehnke, and J. Wilson
Read first time 01/21/25. Referred to Committee on Ways & Means.
p. 1 SB 5383
department must issue an exemption certificate to a qualified salmon 1
recovery project sponsor. 2
(b) In order to claim an exemption under this section, a 3
qualified salmon recovery project sponsor must provide the seller 4
with an exemption certificate in a form and manner prescribed by the 5
department. The seller must retain a copy of the certificate for the 6
seller's files. 7
(c) The exemption certificate is effective on the date the 8
application is received by the department, which is the date of 9
issuance. The exemption provided in this section does not apply to 10
any property or services that are received by the qualified salmon 11
recovery project sponsor, or its agent, before August 1, 2025. For 12
the purposes of this subsection (2)(c), "received" means:13
(i) Taking physical possession of, or having dominion and control 14
over, the tangible personal property eligible for the exemption in 15
subsection (1)(b) of this section; and 16
(ii) The labor and services in subsection (1)(a) of this section 17
have been performed. 18
(d) The exemption certificate expires on the date the project is 19
certified as operationally complete by the qualified salmon recovery 20
project. The qualified salmon recovery project sponsor must notify 21
the department, in a form and manner as required by the department, 22
when the project is certified as operationally complete.23
(3) The definitions in this subsection apply throughout this 24
section unless the context clearly requires otherwise.25
(a) "Operationally complete" means the qualified salmon recovery 26
project is capable of being used for its intended purpose as 27
described in the exemption certificate application.28
(b) "Qualified salmon recovery project" means a project outlined 29
with the goal of increasing salmon and steelhead stocks, including 30
the construction, restoration, or improvement of habitat, hatchery 31
facilities, and fish barrier removal or replacement, and including 32
land acquisition and easements. 33
(c) "Qualified salmon recovery project sponsor" means any 34
private, public, or tribal entity engaging in the construction or 35
rehabilitation of a qualified salmon recovery project for which it 36
has received state funding to do so. 37
(4) A qualified salmon recovery project sponsor within 60 days of 38
the expiration of the exemption certificate under subsection (2)(d) 39
of this section must pay any tax due under this subsection. The 40
p. 2 SB 5383
department may not assess penalties and interest as provided in 1
chapter 82.32 RCW on the amount due if the amount due is paid within 2
the 60-day period, or any extension thereof. The department may 3
require a qualified salmon recovery project sponsor to periodically 4
submit documentation, as specified by the department, prior to the 5
expiration of the exemption certificate to allow the department to 6
track the total amount of sales and use tax exempted under this 7
section. 8
NEW SECTION. Sec. 2. A new section is added to chapter 82.12 9
RCW to read as follows: 10
(1) Provided an exemption certificate has been issued pursuant to 11
section 1 of this act, this chapter does not apply with respect to 12
the use of: 13
(a) Labor and services rendered in respect to the construction of 14
a qualified salmon recovery project, or the installation of any 15
equipment or tangible personal property incorporated into a qualified 16
salmon recovery project; and 17
(b) Building materials, equipment, and tangible personal property 18
incorporated into a qualified salmon recovery project.19
(2) All of the eligibility requirements, conditions, limitations, 20
and definitions in section 1 of this act apply to this section.21
NEW SECTION. Sec. 3. RCW 82.32.805 and 82.32.808 do not apply 22
to this act.23
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