LEGISLATIVE COUNSEL'S DIGEST


SB 699, as amended, Alquist. Sales and use tax: personal
and corporate income tax: manufacturers' credit and exemption.
taxes: exemption: sustainable development:
manufacturing.
(1) The
The Sales and Use Tax Law imposes a tax on retailers
measured by the gross receipts from the sale of tangible personal
property sold at retail in this state, or on the storage, use, or
other consumption in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state, and provides various exemptions from the taxes imposed by
that law.
This bill would exempt from a specified portion of those
taxes, for calendar years beginning on and after January 1, 2011, the
gross receipts from the sale of, and the storage, use, or other
consumption in this state of, sustainable development equipment
investments of tangible personal property purchased for use by a
qualified person, as specified, and tangible personal property used
primarily during the research and development process on qualified
research. The bill would also exempt from a
specified portion of those taxes, for calendar years beginning on
or and after January 1, 2013, the gross
receipts from the sale of, and the storage, use, or other
consumption of, sustainable development equipment
investments of tangible personal property purchased for use by a
qualified person to be used in manufacturing or other processes , as
specified, and tangible personal property purchased by a qualified
person and used primarily during the research and development process
for qualified research, as defined tangible personal
property purchased by a qualified person for use primarily in any
stage of the manufacturing, processing, refining, fabricating, or
recycling of property, as specified, and tangible personal property
purchased for use by a contractor purchasing that property for use in
the performance of a construction contract for the qualified person
who will use the property as an integral part of the manufacturing,
processing, refining, fabrica ting, or recycling process,
or as a storage facility for use in connection with the manufacturing
process .
This bill would specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes.
(2) The Personal Income Tax Law and the Corporation Tax Law
authorizes various credits against the taxes imposed by those laws.

This bill would allow a credit in amount equal to a specified
portion of the amount of sales tax reimbursement paid to a retailer
or use tax paid on a purchase of tangible personal property with
respect to taxes paid on transactions occurring between January 1,
2010, and January 1, 2013, that are imposed under the Sales and Use
Tax Law for the sale of, or the storage, use, or other consumption in
this state of, tangible personal property purchased for use by a
qualified person in manufacturing, processing, refining, fabricating,
or recycling of property, tangible personal property purchased for
use by a contractor for a specified purpose, sustainable development
equipment investments of tangible personal property purchased for
specified use, and tangible personal property used, but not consumed,
primarily during the research and development process for qualified
research, as defined. The credit would be applied in equal amounts
over three successive taxable years beginning with the first taxable
year beginning on or after January 1, 2013.
(3) This
This bill would take effect immediately as a tax levy.

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Comments/questions on SB 699 (Alquist): Sales and use taxes: exemption: sustainable development: manufacturing.