(1) The tax levied by RCW 82.08.020 shall not apply to
charges made for labor and services rendered in respect to the
constructing of new buildings used for the manufacturing of
semiconductor materials, to sales of tangible personal property
that will be incorporated as an ingredient or component of such
buildings during the course of the constructing, or to labor and
services rendered in respect to installing, during the course of
constructing, building fixtures not otherwise eligible for the
exemption under RCW 82.08.02565(2)(b). 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 shall retain a copy of the certificate
for the seller's files.
(2) To be eligible under this section the manufacturer or
processor for hire must meet the following requirements for an
eight-year period, such period beginning the day the new building
commences commercial production, or a portion of tax otherwise
due shall be immediately due and payable pursuant to subsection
(3) of this section:
(a) The manufacturer or processor for hire must maintain at
least seventy-five percent of full employment at the new building
for which the exemption under this section is claimed.
(b) Before commencing commercial production at a new
facility the manufacturer or processor for hire must meet with
the department to review projected employment levels in the new
buildings. The department, using information provided by the
taxpayer, shall make a determination of the number of positions
that would be filled at full employment. This number shall be
used throughout the eight-year period to determine whether any
tax is to be repaid. This information is not subject to the
confidentiality provisions of RCW 82.32.330 and may be disclosed
to the public upon request.
(c) In those situations where a production building in
existence on *the effective date of this section will be phased
out of operation during which time employment at the new building
at the same site is increased, the manufacturer or processor for
hire shall maintain seventy-five percent of full employment at
the manufacturing site overall.
(d) No application is necessary for the tax exemption. The
person is subject to all the requirements of chapter 82.32 RCW.
A person taking the exemption under this section must report as
required under RCW 82.32.535.
(3) If the employment requirement is not met for any one
calendar year, one-eighth of the exempt sales and use taxes shall
be due and payable by April 1st of the following year. The
department shall assess interest to the date the tax was imposed,
but not penalties, on the taxes for which the person is not
eligible.
(4) The exemption applies to new buildings, or parts of
buildings, that are used exclusively in the manufacturing of
semiconductor materials, including the storage of raw materials
and finished product.
(5) For the purposes of this section:
(a) "Commencement of commercial production" is deemed to
have occurred when the equipment and process qualifications in
the new building are completed and production for sale has begun;
and
(b) "Full employment" is the number of positions required
for full capacity production at the new building, for positions
such as line workers, engineers, and technicians.
(c) "Semiconductor materials" has the same meaning as
provided in RCW 82.04.240(2).
(6) No exemption may be taken after twelve years after *the
effective date of this act, however all of the eligibility
criteria and limitations are applicable to any exemptions claimed
before that date.
(7) This section expires twelve years after *the effective
date of this act.
[2003 c 149 § 5.]
NOTES:
*Contingent effective date -- Findings -- Intent -- 2003 c 149: See notes following RCW 82.04.426.