Revised Code of Washington
Chapter 82.04 - Business and Occupation Tax.
82.04.261 - Surcharge on timber and wood product manufacturers, extractors, and wholesalers.

RCW 82.04.261
Surcharge on timber and wood product manufacturers, extractors, and wholesalers. (Expires July 1, 2045.)

(1) In addition to the taxes imposed under RCW 82.04.260(12), a surcharge is imposed on those persons who are subject to any of the taxes imposed under RCW 82.04.260(12). Except as otherwise provided in this section, the surcharge is equal to 0.052 percent. The surcharge is added to the rates provided in RCW 82.04.260(12) (a), (b), (c), and (d).
(2) All receipts from the surcharge imposed under this section must be deposited into the forest and fish support account created in RCW 76.09.405, with any receipts above eight million dollars per biennium specifically used as additional funding for tribal participation grants.
(3)(a) The surcharge imposed under this section is suspended if:
(i) Before July 1, 2024, receipts from the surcharge total at least eight million five hundred thousand dollars during any fiscal biennium;
(ii) Between July 1, 2024, through June 30, 2029, receipts from the surcharge total at least nine million dollars during any fiscal biennium; and
(iii) After June 30, 2029, the receipts from the surcharge total at least nine million five hundred thousand dollars during any fiscal biennium.
(b) The suspension of the surcharge under this subsection (3) takes effect on the first day of the calendar month that is at least thirty days after the end of the month during which the department determines that receipts from the surcharge total the values specified in this subsection (3) during the fiscal biennium. The surcharge is imposed again at the beginning of the following fiscal biennium.
(4) This section expires July 1, 2045.

[ 2021 c 145 § 8; 2019 c 336 § 5; 2017 c 323 § 501; 2010 1st sp.s. c 23 § 510. Prior: 2007 c 54 § 7; 2007 c 48 § 4; 2006 c 300 § 2.]
NOTES:

Finding—Intent—2019 c 336: "The legislature finds that while many parts of the state are thriving economically, some rural and distressed communities have struggled to keep pace. These communities represent significant opportunity for economic growth and innovation. However, businesses and entrepreneurs often find it difficult to obtain the capital they need to expand and grow in these areas. Therefore, it is the intent of the legislature to study the creation of a program to incentivize private investments and job creation in rural and distressed communities while ensuring no loss of revenue to the state." [ 2019 c 336 § 1.]


Findings—2019 c 336: "(1) The legislature finds that the Washington state forest practices habitat conservation plan was approved in 2006 by the United States fish and wildlife service and the national oceanic and atmospheric administration's marine fisheries service. The legislature further finds that the conservation plan protects habitat of aquatic species, supports economically viable and healthy forests, and creates regulatory stability for landowners. The legislature further finds that funding for the adaptive management program and participation grants are required to implement the forest and fish agreement and meet the goals of the conservation plan. The legislature further finds that the surcharge on the timber products business and occupation tax rate was agreed to by the forest products industry, tribal leaders, and stakeholders as a way to provide funding and safeguard the future of the conservation plan. The legislature further finds that the forestry industry assumed significant financial obligation with the enactment of this conservation plan, in exchange for operational certainty under the endangered species act. Therefore, the legislature concludes that the timber products business and occupation tax rate and the surcharge should continue until the expiration date of the forest and fish agreement, in 2056.
(2) The legislature finds that Washington has one of the strongest economies in the country. However, the local economies in some rural counties continue to struggle. The legislature further finds that the economic prosperity of our state must be shared by all of our communities. The legislature further finds that forest product sectors provide family-wage jobs in economically struggling areas of the state. The legislature further finds that in 2017 the Washington forest products industry, directly and indirectly, employed one hundred one thousand workers, earning 5.5 billion dollars in wages. Therefore, the legislature concludes that the forest products industries support our local rural economies and contribute towards the effort to lower unemployment rates across the state, especially in rural areas." [ 2019 c 336 § 3.]


Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.


Effective date—2010 1st sp.s. c 23: See note following RCW 82.04.4292.


Findings—Intent—2010 1st sp.s. c 23: See notes following RCW 82.04.220.


Severability—2007 c 54: See note following RCW 82.04.050.


Savings—2007 c 48: "The expiration of RCW 82.04.261 does not affect any existing right acquired or liability or obligation incurred under that section or under any rule or order adopted under that section, nor does it affect any proceeding instituted under that section." [ 2007 c 48 § 8.]


Effective date—2007 c 48: See note following RCW 82.04.260.


Effective dates—Contingent effective date—2006 c 300: "(1) Sections 1, 3, 4 through 6, and 8 through 12 of this act take effect July 1, 2006.
(2) Section 2 of this act takes effect July 1, 2007.
(3) Section 7 of this act takes effect if the contingency in *section 12 of this act occurs." [ 2006 c 300 § 13.]


*Reviser's note: See RCW 82.32.790.

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