BILL REQ. #:  H-1085.1 

Read first time 01/22/2007.   Referred to Committee on Agriculture & Natural Resources.

     AN ACT Relating to excise tax relief for log hauling businesses; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; 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 levied by RCW 82.08.020 does not apply to sales of, or services rendered in respect to, vehicle safety equipment purchased by a log hauler for use in the log hauling business. A person taking an exemption under this section must keep records necessary for the department to verify eligibility under this section. The exemption is available only when 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 in the seller's files.
     (2) The definitions in this subsection apply to this section.
     (a) "Log hauler" means a person engaged in the log hauling business.
     (b) "Log hauling business" means the activity of hauling harvested trees from forest land by truck.
     (c) "Services" means labor for repairs, maintenance, or the replacement of parts, for vehicle safety equipment.
     (d) "Vehicle safety equipment" means tangible personal property that:
     (i) Is used with or becomes a component of a log hauling truck; and
     (ii) Promotes the safe operation of the truck.
     The definition in this subsection (2)(d) includes, but is not limited to: Safety chains, wrappers, binders, tires, parts used in brake repair, bunk straps, weight scale parts, hands-free cellular telephone, citizens' band radio parts, and cab guard fabrication.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use by a log hauling truck driver of:
     (a) Vehicle safety equipment; or
     (b) Services rendered in respect to vehicle safety equipment.
     (2) The definitions and recordkeeping requirements in section 1 of this act apply to this section.

NEW SECTION.  Sec. 3   This act takes effect August 1, 2007.