RCW 82.74.050
Repayment of deferred taxes.(1) Except as
provided in subsection (2) of this section, taxes deferred under
this chapter need not be repaid.
(2) If, on the basis of survey under RCW 82.74.040 or other
information, the department finds that an investment project is
used for purposes other than fresh fruit and vegetable
processing, dairy product manufacturing, seafood product
manufacturing, cold storage warehousing, or research and
development at any time during the calendar year in which the
investment project is certified by the department as having been
operationally completed, or at any time during any of the seven
succeeding calendar years, a portion of deferred taxes shall be
immediately due according to the following schedule:
| Year in which nonqualifying use occurs |
% of deferred taxes due |
| 1 |
100% |
| 2 |
87.5% |
| 3 |
75% |
| 4 |
62.5% |
| 5 |
50% |
| 6 |
37.5% |
| 7 |
25% |
| 8 |
12.5% |
(3) The department shall assess interest, but not penalties,
on the deferred taxes under subsection (2) of this section. The
interest shall be assessed at the rate provided for delinquent
taxes under chapter 82.32 RCW, retroactively to the date of
deferral, and shall accrue until the deferred taxes are repaid.
The debt for deferred taxes will not be extinguished by
insolvency or other failure of the recipient. Transfer of
ownership does not terminate the deferral. The deferral is
transferred, subject to the successor meeting the eligibility
requirements of this chapter, for the remaining periods of the
deferral.
(4) Notwithstanding subsection (2) of this section, deferred
taxes on the following need not be repaid:
(a) Machinery and equipment, and sales of or charges made
for labor and services, which at the time of purchase would have
qualified for exemption under RCW 82.08.02565; and
(b) Machinery and equipment which at the time of first use
would have qualified for exemption under RCW 82.12.02565.[2006
c 354 § 9; 2005 c 513 § 8.]
NOTES:
Effective dates -- 2006 c 354: See note following RCW 82.04.4268.
Effective dates -- 2005 c 513: See note following RCW 82.04.4266.