Bill
SB 5383
Provides a sales tax exemption for labor, services, and materials used in qualified salmon recovery projects via a department-issued exemption certificate.
Overview
SB 5383 seeks to provide a sales and use tax exemption for certain labor, services, materials, equipment, and property used in qualified salmon recovery projects. The exemption is administered via a new certificate process and applies only to projects that meet the bill’s definitions and timing requirements. The bill adds new sections to RCW 82.08 and RCW 82.12, and clarifies that RCW 82.32.805/82.32.808 do not apply to this act.
What the bill would do
- Create a targeted sales and use tax exemption for:
- Labor and services related to constructing a qualified salmon recovery project, or installing equipment or tangible property incorporated into the project.
- Building materials, equipment, and tangible personal property incorporated into the project.
- Establish an exemption certificate process to authorize eligibility and enable tax exemption on qualifying transactions.
- Make the exemption effective on the date a department-issued exemption certificate is received (issuance is the effective date) and restrict applicability to transactions after August 1, 2025.
- Exclude any property or services received before August 1, 2025 from the exemption.
- Require project sponsors to notify the department when a project is operationally complete and to pay any remaining tax within 60 days of expiration of the exemption certificate, with a limited penalty window (no penalties if paid within 60 days or an extension).
- Extend a prohibition on the exemption to the use of labor, services, and materials under the project once the exemption certificate is issued, subject to the certificate’s terms.
- Define “operationally complete,” “qualified salmon recovery project,” and “qualified salmon recovery project sponsor.”
- Allow the department to request periodic documentation to track the total exempted amount.
Key provisions and definitions
- Exemption certificate: Required for sponsors to claim exemption; certificate is issued by the department and becomes effective upon receipt.
- Qualified salmon recovery project: Projects intended to increase salmon and steelhead stocks, including habitat work, hatchery facilities, barrier removal/replacement, land acquisition, and easements.
- Qualified salmon recovery project sponsor: Private, public, or tribal entities receiving state funding for construction or rehabilitation of such projects.
- Operationally complete: Project can be used for its intended purpose as described in the exemption certificate.
- Expiration: Certificate expires when the project is operationally complete; sponsor must notify the department.
Who would be affected
- Eligible entities: Private, public, or tribal entities that receive state funding for salmon recovery projects and act as project sponsors.
- Sellers and service providers: Those providing labor, services, equipment, or materials incorporated into qualified projects would interact with the exemption certificate process.
- Department of Revenue: Administers the exemption certificate program and reporting requirements.
Timeline and implementation
- Effective date for exemption eligibility: Transactions after August 1, 2025.
- First reading: January 21, 2025; referred to Ways & Means.
- Ongoing administration: Certificate issuance; periodic documentation; 60-day payment window after exemption expiration.
Note: The bill explicitly states that RCW 82.32.805 and RCW 82.32.808 do not apply to this act.
Compiled from official sources — confirm details with the bill’s official record.
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