(1) For the purposes of this section, "biotechnology product and medical device business tax incentive" or "tax incentive" means the sales and use tax deferrals under chapter 82.75 RCW.

     (2) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources, the legislature needs information to evaluate whether the stated goals of legislation were achieved.

     (3) The goals of the biotechnology product and medical device business tax incentives are to:

     (a) Encourage the creation, expansion, and retention of commercial biotechnology product and medical device manufacturing operations and related job opportunities; and

     (b) Fully mature the life sciences industry by creating a sustainable commercial sector.

     (4)(a) A person who receives the benefit of a biotechnology product and medical device business tax incentive shall provide an annual survey to the department. The survey is due by March 31st following any year in which a tax incentive is claimed or used. The survey shall not include names of employees. The survey shall include the amount of the tax incentives claimed or used for the reporting year. The survey shall also include the following information for employment positions in Washington:

     (i) The number of total employment positions;

     (ii) Full-time, part-time, and temporary employment positions as a percent of total employment;

     (iii) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and

     (iv) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.

     (b) The department may request additional information necessary to measure the results of the tax incentive, to be submitted at the same time as the survey.

     (c) All information collected under this subsection, except the amount of the tax incentive claimed or used, is deemed taxpayer information under RCW 82.32.330 and is not disclosable. Information on the amount of tax incentive claimed or used is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

     (5) The department shall use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers shall be included in any category. The department shall report these statistics to the legislature each year by September 1st.

     (6) If a person fails to submit an annual survey under subsection (4)(a) of this section by the due date of the survey, the department shall declare 12.5 percent of the deferred tax from the date of deferral to be immediately due and payable. Excise taxes payable under this subsection are subject to interest but not penalties, as provided under this chapter. This information is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

     (7) The department shall use the information to study the tax incentive specified in subsection (1) of this section. The department shall report to the legislature by December 1, 2009, and December 1, 2015. The reports shall measure the number of new biotechnology product and medical device manufacturing facilities established in Washington, the amount of investment in biotechnology product and medical device manufacturing facilities, the number of facilities and investment by firms that utilized the biotechnology product and medical device business tax incentive, the number of biotechnology product and medical device manufacturing jobs in these facilities, the wages and benefits paid for biotechnology product and medical device manufacturing jobs, and the wages and benefits of biotechnology product and medical device manufacturing jobs compared to wages and benefits of other manufacturing jobs and jobs in other economic sectors.

[2006 c 178 § 8.]

NOTES:

     Effective date -- Severability -- 2006 c 178: See notes following RCW 82.75.010.