Revised Code of Washington - RCW Title 82 Excise Taxes - Section 82.63.045 Repayment not required -- Repayment schedule for unqualified investment project -- Exceptions
§ 82.63.045. Repayment not required -- Repayment schedule for unqualified investment project -- Exceptions
(1) Except as provided in subsection (2) of this section, taxes deferred under this chapter need not be repaid.
(2)(a) If, on the basis of survey under RCW 82.63.020 or other information, the department finds that an investment project is used for purposes other than qualified research and development or pilot scale manufacturing 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 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% |
(b) If a recipient of the deferral fails to complete the annual survey required under RCW 82.63.020 by the date due, 12.5 percent of the deferred tax shall be immediately due. If the economic benefits of the deferral are passed to a lessee as provided in RCW 82.63.010(7), the lessee shall be responsible for payment to the extent the lessee has received the economic benefit.
(c) If an investment project is used for purposes other than qualified research and development or pilot scale manufacturing at any time during the calendar year in which the investment project is certified as having been operationally complete and the recipient of the deferral fails to complete the annual survey due under RCW 82.63.020, the portion of deferred taxes immediately due is the amount on the schedule in (a) of this subsection. If the economic benefits of the deferral are passed to a lessee as provided in RCW 82.63.010(7), the lessee shall be responsible for payment to the extent the lessee has received the economic benefit.
(3) The department shall assess interest at the rate provided for delinquent taxes, but not penalties, retroactively to the date of deferral. 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.
[2004 c 2 § 6; 2000 c 106 § 10; 1995 1st sp.s. c 3 § 13.]
Notes:
Effective date -- 2000 c 106: See note following RCW 82.32.330.
Findings -- Effective date -- 1995 1st sp.s. c 3: See notes following RCW 82.08.02565.
Sections: 82.63.005 82.63.010 82.63.020 82.63.030 82.63.045 82.63.060 82.63.070 82.63.900
Last modified: April 7, 2009