title: RCW 82.16.183

text:
(1) Beginning July 1, 2022, through June 30, 2033, an administrator of a community solar project meeting the eligibility requirements described in this section and RCW 82.16.170(3) may submit an application to the Washington State University extension energy program to receive a precertification for a community solar project. Projects with precertification applications approved by the Washington State University extension energy program have two years to complete their projects and apply for certification. Projects that have not completed certification within two years may apply to the Washington State University extension energy program for an extension of their precertification status for an additional 180 days if they can demonstrate significant progress during the time they were in precertification status. By certifying qualified projects pursuant to the requirements of this section and RCW 82.16.170(3), the Washington State University extension energy program authorizes the utility serving the site of a community solar project in the state of Washington to remit a one-time low-income community solar incentive payment to the community solar project administrator, who accepts the payment on behalf of, and for the purpose of providing direct benefits to, the project's qualifying subscribers.
(2) A one-time low-income community solar incentive payment remitted to a community solar project administrator for a project certified under this section equals the sum of the following:
(a) An amount, not to exceed $20,000 per community solar project, equal to the community solar project's administrative costs related to the administrative start-up of the project for qualifying subscribers; and
(b) An amount that does not exceed 100 percent of the proportional cost of the installed cost of the share of the community solar project that provides direct benefits to qualifying subscribers, taking into account any federal tax credits or other federal or nonfederal grants or incentives that the program is benefiting from.
(3) No new certification may be issued under this section for a community solar project that was certified under RCW 82.16.120 or 82.16.165, or for a community solar project served by a utility that has elected not to participate in the incentive program provided in this section.
(4) Community solar projects that are under precertification status under RCW 82.16.165 as of June 30, 2020, may not apply for precertification of that same project for the one-time low-income community solar incentive payment provided in this section.
(5)(a) In addition to the one-time low-income community solar incentive payment under subsection (2) of this section, a participating utility must also provide the following compensation for the generation of electricity from the certified project:
(i) For a community solar project that has an alternating current nameplate capacity no greater than 100 kilowatts, and that is connected behind the electric service meter, compensation must be determined in accordance with RCW 80.60.020 and provided to the retail electric customer receiving service at the situs of the meter.
(ii) For all other community solar projects for which the administrator is not a utility, compensation paid to the interconnection customer must be determined in a written agreement between the interconnection customer and the utility.
(iii) For all other community solar projects for which the administrator is a utility, compensation must be provided directly to subscribers in accordance with subsection (8)(a)(i) of this section.
(iv)(A) When the administrator of a community solar project receives compensation for the generation of electricity from a participating utility, interconnection customer, or from the retail electric customer that is the host for the community solar project, the administrator must provide all of that compensation as a direct benefit to the project subscribers, except as described in (iv)(B) of this subsection.
(B) An administrator may deduct ongoing administrative and maintenance costs from compensation they provide to subscribers from power generation, provided those costs are identified in the subscription agreement or justified to the Washington State University extension energy program. The Washington State University extension energy program shall review any such administrative and maintenance costs justifications for reasonableness and approve, reject, or negotiate changes to the proposal. An administrator may request a change in the deduction for administrative and maintenance costs to the Washington State University extension energy program only if the subscription agreement includes language notifying the subscriber that administrative and maintenance fees are subject to change.
(b) For 10 years after certification, and by March 1st of each year following certification, the administrator must provide the Washington State University extension energy program with signed statements of the following for the preceding year:
(i) The energy production for the period for which compensation is to be provided;
(ii) Each subscriber's units of the project;
(iii) The amount disbursed to each subscriber for the period; and
(iv) The date and amount disbursed to each subscriber.
(6) A utility's participation in the incentive program provided in this section is voluntary.
(a) The utility may terminate its voluntary participation in the program by providing notice in writing to the Washington State University extension energy program to cease accepting new applications for precertification for community solar projects that would be served by that utility. Such notice of termination of participation is effective after 15 days, at which point the Washington State University extension energy program may not accept new applications for precertification for community solar projects that would be served by that utility.
(b) Upon receiving a utility's notice of termination of participation in the incentive program, the Washington State University extension energy program must report on its website that community solar project customers of that utility are no longer eligible to receive new certifications under the program.
(c) A utility that has terminated participation in the program may resume participation upon filing a notice with the Washington State University extension energy program.
(7)(a) The Washington State University extension energy program may issue certifications authorizing incentive payments under this section in a total statewide amount not to exceed $100,000,000, and subject to the following biennial dollar limits:
(i) For fiscal year 2023, $300,000; and
(ii) For each biennium beginning on or after July 1, 2023, $25,000,000.
(b) The Washington State University extension energy program must attempt to equitably distribute incentive funds throughout the state. Considerations for equitable fund distribution, based on precertification applications received from administrators served by utilities voluntarily participating in the program, may include measures to reserve or allocate available funds based on the proportion of public utility taxes collected, the proportion of the state's low-income customers served by each utility based on low-income home energy assistance program data at the department of commerce, measures to achieve an equitable geographic distribution of community solar installations and a diversity of administrative models for community solar projects, and the amount of energy burden reduction for qualifying subscribers relative to the project's cost. If an equitable distribution of funds is not feasible due to a lack of precertification applications, the Washington State University extension energy program may allocate funds based on (a) of this subsection on a first-come, first-served basis.
(c) The Washington State University extension energy program must ensure that at least $2,000,000 of the statewide total for the entire program is used to support nonprofit organizations' innovative approaches to allocating benefits to subscribers, defining and valuing benefits to be provided to subscribers or other aspects of the subscriber, administrator, system host, and utility relationship.
(d) The Washington State University extension energy program must also ensure that at least $2,000,000 of the statewide total for the entire program is available to tribal governments and their designated subdivisions and agencies.
(e) The Washington State University extension energy program shall regularly publish and update guidelines for how it manages the allocation of available funding, based on the evaluation of applications and the factors specified in (b) of this subsection.
(f) Beginning in fiscal year 2026, the Washington State University extension energy program may waive the requirements in (c) or (d) of this subsection if it fails to receive applications that meet the criteria of (c) or (d) of this subsection sufficient to result in the full allocation of incentives.
(8)(a) Prior to obtaining certification under this section, the administrator of a community solar project must apply for precertification against the funds available for incentive payments under subsection (7) of this section in order to be guaranteed an incentive payment under this section. The application for precertification must include, at a minimum:
(i) A demonstration of how the project will deliver continuing direct benefits to low-income subscribers. A direct benefit can include credit for the power generation for the community solar project or other mechanisms that lower the energy burden of a low-income subscriber; and
(ii) Any other information the Washington State University extension energy program deems necessary in determining eligibility for precertification.
(b) The administrator of a community solar project must complete an application for certification in accordance with the requirements of subsection (9) of this section within less than two years of being approved for precertification status. The administrator must submit a project update to the Washington State University extension energy program after one year in precertification status.
(9) To obtain certification for the one-time community solar incentive payment provided under this section, a project administrator must submit to the Washington State University extension energy program an application, including, at a minimum:
(a) A signed statement that the applicant has not previously received a notice of eligibility from the department under RCW 82.16.120 or the Washington State University extension energy program under RCW 82.16.165 entitling the applicant to receive annual incentive payments for electricity generated by the community solar project at the same meter location;
(b) A signed statement of the costs paid by the administrator related to administering the project for qualifying subscribers;
(c) A signed statement of the total project costs, including the proportional cost of the share of the community solar project that provides direct benefits to qualifying subscribers;
(d) A signed statement describing the amount of the upfront incentive and the timing, method, and distribution of estimated benefits to qualifying subscribers. The statement must describe any estimated energy burden reduction associated with the direct benefits;
(e) Available system operation data, such as global positioning system coordinates, tilt, estimated shading, and azimuth;
(f) Any other information the Washington State University extension energy program deems necessary in determining eligibility and incentive levels or administering the program;
(g)(i) Except as provided in (g)(ii) of this subsection (9), the date that the community solar project received its final electrical inspection from the applicable local jurisdiction, as well as a copy of the permit or, if the permit is available online, the permit number or other documentation deemed acceptable by the Washington State University extension energy program;
(ii) The Washington State University extension energy program may waive the requirement in (g)(i) of this subsection (9), accepting an application and granting provisional certification prior to proof of final electrical inspection. Provisional certification expires 180 days after issuance, unless the applicant submits proof of the final electrical inspection from the applicable local jurisdiction or the Washington State University extension energy program extends certification, for a term or terms of 30 days, due to extenuating circumstances;
(h) Confirmation of the number of qualifying subscribers;
(i) A copy of the executed agreement describing how benefits will be determined and distributed from the retail electric customer or interconnection customer to the administrator if the administrator and the retail electric customer or interconnection customer are not the same. The Washington State University extension energy program must review the executed agreement to determine that benefits are being fairly determined and that there is an adequate plan for distributing the benefits; and
(j) Any other information the Washington State University extension energy program deems necessary in determining eligibility and incentive levels or administering the program.
(10) No incentive payments may be authorized or accrued until the final electrical inspection and executed interconnection agreement are submitted to the Washington State University extension energy program.
(11)(a) The Washington State University extension energy program must review each project for which an application for certification is submitted in accordance with subsection (8) of this section for reasonable cost and financial structure, with a targeted installed cost for the solar energy system of $2 per watt direct current for systems over 200 kilowatts and $2.25 per watt direct current for systems equal to or under 200 kilowatts. For solar energy systems that include storage systems, the targeted installed cost of the storage system is $600 per kilowatt-hour of storage capacity.
(b) The Washington State University extension energy program may approve an application for a project that costs more or less than the targeted installed costs under (a) of this subsection based on a review of the project, documents submitted by the project applicant, and available data. Project cost evaluations may include costs associated with energy storage systems and electrical system improvements to permit grid-independent operation. Applicants may petition the Washington State University extension energy program to approve a higher cost per watt or per kilowatt-hour for unusual circumstances.
(c) The Washington State University extension energy program may review the cost per watt target under (a) of this subsection prior to each fiscal biennium and is authorized to determine a new cost per watt target.
(12)(a) Within 30 days of receipt of an application for certification, the Washington State University extension energy program must notify the applicant and, except when a utility is the applicant, the utility serving the site of the community solar project, by mail or electronically, whether certification has been granted. The certification notice must state the total dollar amount of the low-income community solar incentive payment for which the applicant is eligible under this section.
(b) Within 60 days of receipt of a notification under (a) of this subsection, the utility serving the site of the community solar project must remit the applicable one-time low-income community solar incentive payment to the project administrator, who accepts the payment on behalf of, and for the purpose of providing direct benefits to, the project's qualifying subscribers.
(13)(a) Certification follows the community solar project if the following conditions are met using procedures established by the Washington State University extension energy program:
(i) The community solar project is transferred to a new owner who notifies the Washington State University extension energy program of the transfer;
(ii) The new owner provides an executed interconnection agreement with the utility serving the site of the community solar project; and
(iii) The new owner agrees to provide equivalent ongoing benefits to qualifying subscribers as the current owner.
(b) In the event that a qualifying subscriber terminates their participation in a community solar project during the first 120 months after project certification, the system certification follows the project and participation must be transferred to a new qualifying subscriber.
(14) Beginning January 1, 2023, the Washington State University extension energy program must post on its website and update at least monthly a report, by utility, of:
(a) The number of certifications issued for community solar projects; and
(b) An estimate of the amount of credit that has not yet been allocated for low-income community solar incentive payments and that remains available for new community solar project certifications in the state.
(15) Persons receiving incentive payments under this section must keep and preserve, for a period of five years for the duration of the consumer contract, suitable records as may be necessary to determine the amount of incentive payments applied for and received.
(16) The nonpower attributes of the community solar project must be retired on behalf of the subscribers unless, in the case of a utility-owned community solar project, a contract between the subscriber that benefits the subscriber clearly states that the attributes will be retained and retired by the utility.
(17) All lists, technical specifications, determinations, and guidelines developed under this section must be made publicly available online by the Washington State University extension energy program.
(18) The Washington State University extension energy program may, through a public process, develop program requirements, policies, and processes necessary for the administration or implementation of this section.
(19) Applications, certifications, requests for incentive payments under this section, and the information contained therein are not deemed tax information under RCW 82.32.330 and are subject to disclosure.
(20) No certification may be issued under this section by the Washington State University extension energy program for a community solar project after June 30, 2035.
(21) Community solar projects certified under this section must be sited on preferred sites to protect natural and working lands as determined by the Washington State University extension energy program.
(22) This section expires June 30, 2038.
[ 2022 c 212 s 5.]
Notes:
Findings—Intent—2022 c 212: "The legislature finds and declares that stimulating local investment in community solar projects continues to be an important part of a state energy strategy by helping to increase energy independence from fossil fuels, promote economic development, hedge against the effects of climate change, and attain environmental benefits. The legislature finds that although previous community solar programs were successful in stimulating these benefits, the programs failed to provide an adequate framework for low-income participation and long-term market certainty. The legislature finds that the vast majority of Washingtonians still do not have access to the benefits of solar energy. The legislature intends to stimulate the deployment of community solar projects for the benefit of all Washingtonians by funding the renewable energy production incentive program for community solar projects and by creating opportunities for broader participation, especially by low-income households and low-income service providers. As of December 2021, the state is 10.3 megawatts short of the 115 megawatts of solar photovoltaic capacity established as a goal under RCW 82.16.155. The legislature therefore intends to provide an incentive sufficient to promote installation of community solar projects through June 30, 2033, at which point the legislature expects to review the effectiveness of enhancing access to community solar projects." [ 2022 c 212 s 1.]
Tax preference performance statement exemption—2022 c 212: "RCW 82.32.808 does not apply to this act." [ 2022 c 212 s 7.]
Effective date—2022 c 212: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 30, 2022]." [ 2022 c 212 s 8.]

catchline: Community solar projects. (Expires June 30, 2038.)


doc_type: statute

jurisdiction: wa

title: RCW 82.16.184

text:
(1) Beginning July 1, 2022, a light and power business is allowed a credit against taxes due under this chapter in an amount equal to incentive payments made in any fiscal year under RCW 82.16.183.
(2) The credits must be taken in a form and manner as required by the department. The credit taken under this section for the fiscal year may not exceed 1.5 percent of the business's taxable Washington power sales generated in calendar year 2014 and due under RCW 82.16.020(1)(b) or $250,000, whichever is greater, for incentive payments made for community solar projects that submit an application for precertification under RCW 82.16.183 on or after July 1, 2022, and that are certified for an incentive payment in accordance with the terms of that precertification by June 30, 2033.
(3) The credit may not exceed the tax that would otherwise be due under this chapter. Refunds may not be granted in the place of credits.
(4) For any business that has claimed credit for amounts that exceed the correct amount of the incentive payable under RCW 82.16.183, the amount of tax against which credit was claimed for the excess payments is immediately due and payable. The department may deduct amounts from future credits claimed by the business.
(a) Except as provided in (b) of this subsection, the department must assess interest but not penalties on the taxes against which the credit was claimed. Interest may be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, retroactively to the date the credit was claimed, and accrues until the taxes against which the credit was claimed are repaid.
(b) A business is not liable for excess payments made in reliance on amounts reported by the Washington State University extension energy program as due and payable as provided under RCW 82.16.183, if such amounts are later found to be abnormal or inaccurate due to no fault of the business.
(5) The amount of credit taken under this section is not confidential taxpayer information under RCW 82.32.330 and is subject to disclosure.
(6) The right to earn tax credits for incentive payments made under RCW 82.16.183 expires June 30, 2036. Credits may not be claimed under this section after June 30, 2037.
(7) This section expires June 30, 2038.
[ 2022 c 212 s 3.]
Notes:
Findings—Intent—Tax preference performance statement exemption—Effective date—2022 c 212: See notes following RCW 82.16.183.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Credit—Community solar projects. (Expires June 30, 2038.)

code: rcw

unit: section

court: Washington State Legislature


title: RCW 82.16.185

text:
(1) Subject to the requirements of this section, a light and power business or a gas distribution business is allowed a credit against taxes due under this chapter in an amount equal to:
(a) Incentive payments made in any calendar year under RCW 19.27A.220; and
(b) Documented administrative cost not to exceed eight percent of the incentive payments.
(2) The credit must be taken in a form and manner as required by the department.
(3) Credit must be claimed against taxes due under this chapter for the incentive payments made and administrative expenses incurred. Credit earned in one calendar year may not be carried backward but may be claimed against taxes due under this chapter during the same calendar year and for the following two calendar years. The credit may not exceed the tax that would otherwise be due under this chapter. Refunds may not be granted in the place of a credit.
(4)(a) Except as provided in (c) of this subsection, any business that has claimed credit in excess of the amount of credit the business earned under subsection (1) of this section must repay the amount of tax against which the excess credit was claimed.
(b) The department must assess interest on the taxes due under this subsection. Interest must be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, retroactively to the date the credit was claimed, and accrues until the taxes against which the credit was claimed are repaid. The department must provide written notice of the amount due under this subsection and that the amount due must be paid within thirty days of the date of the notice. The department may not impose penalties as provided in chapter 82.32 RCW on taxes due under this subsection unless the amount due is not paid in full by the due date in the notice.
(c) A business is not liable for excess credits claimed in reliance on amounts reported to the business by the department of commerce as due and payable as provided under RCW 19.27A.220, if such amounts are later found to be abnormal or inaccurate due to no fault of the business.
(5) The amount of credit taken under this section and the identity of a business that takes the credit is not confidential taxpayer information under RCW 82.32.330 and is subject to disclosure.
(6) This section expires June 30, 2032.
[ 2019 c 285 s 8.]
Notes:
Tax preference performance statement—2019 c 285 s 8: "This section is the tax preference performance statement for the tax preference contained in section 8, chapter 285, Laws of 2019. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes this tax preference as one intended to induce implementation of building energy efficiency measures, as indicated in RCW 19.27A.220.
(2) It is the legislature's specific public policy objective to increase energy efficiency and the use of renewable fuels that reduce the amount of greenhouse gas emissions in Washington. It is the legislature's intent to provide a credit against the taxes owing by utilities under chapter 82.16 RCW for the incentives provided for the implementation by eligible building owners of energy efficiency and renewable energy measures.
(3) If a review finds that measurable energy savings have increased in covered commercial buildings for which building owners are receiving an incentive payment from a qualifying utility, then the legislature intends to extend the expiration date of the tax preference.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee may refer to the number of building owners receiving an incentive payment from qualifying utilities taking the public utility tax preference under RCW 82.16.185, the amount of the incentive payment, and the energy use intensity reduction of the buildings as a result of the incentive program, as reported by the department of commerce." [ 2019 c 285 s 7.]

catchline: Credit—State energy performance standard—Early adoption incentive program. (Expires June 30, 2032.)


title: RCW 82.16.187

text:
(1)(a) Subject to the limits and provisions of this section, a credit is allowed against the tax otherwise due under this chapter for persons engaged in the use of alternative jet fuel.
(b) Except as provided in (c) of this subsection, the credit under this section is equal to $1 for each gallon of alternative jet fuel that has at least 50 percent less carbon dioxide equivalent emissions than conventional petroleum jet fuel and is purchased during the prior calendar year by a business for use as alternative jet fuel for flights departing in this state.
(c) The credit amount under (b) of this subsection must increase by 2 cents for each additional one percent reduction in carbon dioxide equivalent emissions beyond 50 percent, not to exceed $2 for each gallon of alternative jet fuel.
(d) The credit under this section is calculated only on the portion of jet fuel that is considered alternative jet fuel and does not include conventional petroleum jet fuel when such fuels are blended or otherwise used in a jet fuel mixture.
(e) A credit under this section may not be claimed until the department of ecology verifies that there are one or more facilities operating in this state with cumulative production capacity of at least 20,000,000 gallons of alternative jet fuel each year and has provided such notice to the department.
(2) A person may not receive credit under this section for amounts claimed as credits under chapter 82.04 RCW.
(3) To claim a credit under this section a person must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department.
(4) To claim a credit under this section, the person applying must:
(a) Complete an application for the credit which must include:
(i) The name, business address, and tax identification number of the applicant;
(ii) Documentation of the amount of alternative jet fuel purchased by the business in the prior calendar year;
(iii) Documentation sufficient for the department to verify that the alternative jet fuel for which the credit is being claimed meets the definition in RCW 82.04.287(3) and the carbon intensity reduction benchmarks under subsection (1)(b) and (c) of this section, as certified by the department of ecology under chapter 70A.535 RCW; and
(iv) Any other information deemed necessary by the department to support administration or reporting of the program.
(b) Obtain a carbon intensity score from the department of ecology prior to submitting an application to the department.
(5) The department must notify applicants of credit approval or denial within 60 days of receipt of a final application and documentation.
(6) If a person fails to supply the information as required in subsection (4) of this section, the department must deny the application.
(7)(a) The credit under this section may be used against any tax due under this chapter.
(b) A credit earned during one calendar year may be carried over and claimed against taxes incurred for the next subsequent calendar year but may not be carried over for any calendar year thereafter.
(c) No refunds may be granted for credits under this section.
(8) The definitions in RCW 82.04.4361 apply to this section.
(9)(a) Credits may be earned beginning on the first day of the first calendar quarter following the month in which notice under subsection (1)(e) of this section was received by the department.
(b) Credits may not be earned beginning nine calendar years after the close of the calendar year in which the credit may be earned, as provided in (a) of this subsection.
(10) A person claiming the credit provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534.
[ 2023 c 232 s 12.]
Notes:
Tax preference performance statement—Effective date—2023 c 232 ss 9-12: See notes following RCW 82.04.287.
Intent—2023 c 232: See note following RCW 70A.535.010.
Automatic expiration date exemption—2023 c 232: See note following RCW 82.04.287.

catchline: Credit—Alternative jet fuel.


title: RCW 82.16.305

text:
This chapter does not apply to any payments between, or any transfer of assets to or from, a joint municipal utility services authority created under chapter 39.106 RCW and any of its members.
[ 2011 c 258 s 14.]
Notes:
Short title—Purpose—Intent—2011 c 258: See RCW 39.106.010.

catchline: Exemptions—Joint municipal utility services authorities.


title: RCW 82.16.310

text:
(1) The provisions of this chapter do not apply to sales by a gas distribution business of:
(a) Compressed natural gas or liquefied natural gas, where the compressed natural gas or liquefied natural gas is to be sold or used as transportation fuel;
(b) Natural gas from which the buyer manufactures compressed natural gas or liquefied natural gas, where the compressed natural gas or liquefied natural gas is to be sold or used as transportation fuel; or
(c) Renewable natural gas.
(2) 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 must retain a copy of the certificate for the seller's files.
(3) For the purposes of this section, "transportation fuel" means fuel for the generation of power to propel a motor vehicle as defined in RCW 46.04.320, a vessel as defined in RCW 88.02.310, or a locomotive or railroad car.
(4) For the purpose of this section, "renewable natural gas" has the same meaning as provided in RCW 54.04.190.
[ 2019 c 202 s 1; 2014 c 216 s 301.]
Notes:
Automatic expiration date and tax preference performance statement exemption—2019 c 202: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2019 c 202 s 4.]
Effective date—Findings—Tax preference performance statement—2014 c 216: See notes following RCW 82.38.030.

catchline: Exemptions—Sales by a gas distribution business.


title: RCW 82.16.315

text:
(1) A person who is subject to tax under this chapter on gross income from sales of electricity, natural gas, or manufactured gas made to a silicon smelter is eligible for an exemption from the tax in the form of a credit, if the contract for sale of electricity or gas to the silicon smelter specifies that the price charged for the electricity or gas will be reduced by an amount equal to the credit.
(2) The credit is equal to the gross income from the sale of the electricity or gas to a silicon smelter multiplied by the corresponding rate in effect at the time of the sale for the public utility tax under RCW 82.16.020.
(3) The exemption provided for in this section does not apply to amounts received from the remarketing or resale of electricity originally obtained by contract for the smelting process.
(4) The department must provide a separate tax reporting line for reporting credits under this section by sellers of electricity, natural gas, or manufactured gas.
(5) For purposes of the annual tax performance report required by RCW 82.32.534:
(a) The silicon smelter receiving the benefit of the credit under this section is deemed to be the taxpayer claiming the credit and is required to file the annual tax performance report; and
(b) The person selling the electricity, natural gas, or manufactured gas to the silicon smelter is not required to file the annual tax performance report.
(6) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Silicon smelter" means a manufacturing facility that processes silica into solar grade silicon.
(b) "Solar grade silicon" means high-purity silicon used exclusively in components of solar energy systems using photovoltaic modules to capture direct sunlight. "Solar grade silicon" does not include silicon used in semiconductors.
[ 2017 3rd sp.s. c 37 s 703; 2017 3rd sp.s. c 37 s 702.]
Notes:
Findings—Intent—Tax preference performance statement—2017 3rd sp.s. c 37 ss 701-708: "(1) The legislature finds that an opportunity exists through a smelting process to produce silicon metal, which can be used in the production of photovoltaic cells for solar energy systems. The legislature further finds that energy is one of the largest costs for the smelting process and therefore ensuring the lowest possible energy cost is one of the key drivers of business location decisions. The legislature further finds that the silicon smelting process creates an opportunity to reduce carbon dioxide emissions used in the manufacturing of materials for solar energy systems. The legislature further finds that if the silicon smelting process occurs in Washington, the carbon footprint of the end product solar energy systems is likely to be less than if the silicon smelting occurred elsewhere. It is the legislature's specific public policy objective to promote the manufacturing of silicon for use in production of photovoltaic cells for solar energy systems. The legislature intends to provide a public utility tax credit, a business and occupation tax credit, and an exemption from the brokered natural gas use tax for silicon smelters thereby promoting the manufacture of silicon for solar energy systems, thereby reducing the cost of energy in the smelting process, and thereby stimulating economic growth and job creation in Washington's rural counties, as defined in RCW 82.14.370(5).
(2)(a) This section is the tax preference performance statement for the tax preferences contained in this part. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(b) The legislature categorizes the tax preferences in sections 702 through 707, chapter 37, Laws of 2017 3rd sp. sess. as ones intended to create jobs, as indicated in RCW 82.32.808(2)(c) and to provide tax relief for certain businesses or individuals as indicated in RCW 82.32.808(2)(e).
(c) To measure the effectiveness of this part in achieving the specific public policy objective described in (b) of this subsection, the joint legislative audit and review committee must, at minimum, evaluate the following:
(i) The number of businesses who are claiming the tax preferences in sections 702 through 707, chapter 37, Laws of 2017 3rd sp. sess., and the total relief provided to them, as reported to the department of revenue on an annual basis;
(ii) The volume of solar grade silicon made in Washington compared to years prior to October 19, 2017;
(iii) Specifically assess the number of employment positions for each silicon smelter claiming or receiving the benefit of the preferences in sections 702 through 707, chapter 37, Laws of 2017 3rd sp. sess., using data provided by the department of revenue;
(iv) Estimate the cost per job based on the amount of tax preferences taken by each silicon smelter;
(v) Estimate the number of solar energy systems, and the power output of those systems, that were likely produced using Washington state solar grade silicon based on the volume of silicon smelted in Washington at each silicon smelter utilizing the incentive; and
(vi) Determine, utilizing the finalized 2015 county wage data from the census of employment and wages as reported by the employment security department:
(A) The number of jobs at each eligible silicon smelter paying above the county average annual wage in the county in which the facility is located; and
(B) The proportion of jobs paying above the county average annual wage represented by the jobs provided by each eligible silicon smelter utilizing the incentive.
(d) In addition to the data sources described under this section, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (c) of this subsection." [ 2017 3rd sp.s. c 37 s 701.]
Contingent expiration date—2017 3rd sp.s. c 37 ss 701-708: See note following RCW 82.32.537.
Effective date—2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803: See note following RCW 82.04.2404.

catchline: Exemptions—Sales of electricity or gas to silicon smelters. (Contingent expiration date.)


title: RCW 82.16.320

text:
(1) This chapter does not apply to any person with respect to the value proceeding or accruing from a qualifying grant received on or after February 29, 2020.
(2) For purposes of this section, "qualifying grant" means an amount received, or relief from debt or other legal obligation received, that:
(a) Is received under a government-funded program either directly from a government entity, or through a nongovernmental third-party entity authorized by a government entity to distribute the program funds, or, in the case of relief from debt or other legal obligation, is received from a private entity under circumstances where, in exchange for providing the relief, the private entity receives some form of direct financial benefit from a government entity;
(b) Is provided to address the impacts of conditions giving rise to an official proclamation of a national emergency by the president of the United States or an official proclamation of a state of emergency by the governor of this state; and
(c) Is not an amount received:
(i) Under a contract, including a sole source contract, for the acquisition of specific goods or services, or both, by purchase, lease, or barter, that was solicited and established in accordance with procurement laws or regulations; or
(ii) When the amount received or accrued during a tax reporting period is determined based on the amount of business actually conducted during that tax reporting period, such as the quantity, volume, or weight of products sold or transported, or the number of passengers transported. For purposes of this subsection (2)(c)(ii), "products" has the same meaning as in RCW 82.32.023 and includes electrical energy, water, natural gas, manufactured gas, and transporting persons or property.
(3) For purposes of a grant awarded to address the impacts of conditions giving rise to a national emergency or state of emergency, the exemption under this section applies only if the legislation authorizing the grant or the associated legislative history, public records created by the grantor, or the terms of the underlying grant agreement between the grantor and grantee, clearly indicate that the grant was established to address the impacts of conditions giving rise to a national emergency or state of emergency.
(4) For purposes of this section, "government" means any national, tribal, state, or local government.
[ 2021 c 4 s 2.]
Notes:
Retroactive application—Automatic expiration date and tax preference performance statement exemption—Effective date—2021 c 4: See notes following RCW 82.04.767.

catchline: Exemptions—Qualifying grants—National emergency or state of emergency.


title: RCW 82.16.325

text:
(1) This chapter shall not apply to any person hauling agricultural products or farm machinery or equipment for a farmer or for a person performing custom farming services, when the person providing the hauling and the farmer or person performing custom farming services are related.
(2) The exemption provided by this section shall not apply to the hauling of any substances or articles manufactured from agricultural products. For the purposes of this subsection, "manufactured" has the same meaning as "to manufacture" in RCW 82.04.120.
(3) The definitions in RCW 82.04.213 and 82.04.758 apply to this section.
[ 2022 c 119 s 2.]
Notes:
Tax preference performance statement—Tax preference automatic expiration date exemption—Tax preference metrics exemption—Effective date—2022 c 119: See notes following RCW 82.04.758.

catchline: Exemptions—Services for farms.


title: RCW 82.16.330

text:
(1) This chapter does not apply to amounts received by a covered entity, opt-in entity, or entity that receives no-cost allowances, as defined in chapter 70A.65 RCW, from the receipt, generation, purchase, sale, transfer, or retirement of allowances, offset credits, or price ceiling units under chapter 70A.65 RCW.
(2) The provisions of RCW 82.32.805 and 82.32.808 do not apply to subsection (1) of this section.
[ 2024 c 115 s 2.]
Notes:
Retroactive application—Effective date—2024 c 115: See notes following RCW 82.04.769.

catchline: Exemptions—Allowances, offset credits, and price ceiling units under chapter 70A.65 RCW.


title: RCW 82.17.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Banked" means a ZEV credit that a manufacturer has carried over for use in future model years in which a manufacturer has a shortfall or for use to offset a manufacturer's deficit carried over from a previous model year.
(2) "Manufacturer" has the same meaning as in WAC 173-423-040, as it existed as of January 1, 2025.
(3) "Model year" has the same meaning as in WAC 173-423-040, as it existed as of January 1, 2025.
(4) "Pooled" means a ZEV credit that has been earned in Washington and transferred to another state that implements a program for zero-emission vehicles that is consistent with California motor vehicle emissions standards and 42 U.S.C. Sec. 7507 (section 177 of the federal clean air act).
(5) "Surplus" means when a manufacturer's zero-emission vehicle requirement performance is above the applicable annual zero-emission vehicle requirement, as calculated under the zero-emission vehicle program rules adopted by the department of ecology.
(6)(a) "Zero-emission vehicle program" means a rule adopted by the department of ecology under chapter 70A.30 RCW that requires manufacturers to deliver a minimum percentage of zero-emission vehicles in or into Washington that is applicable to passenger cars, light duty trucks, and medium duty vehicles. "Zero-emission vehicle program" includes the rule adopted by the department of ecology codified in chapter 173-423 WAC, as it existed as of May 20, 2025, and any successor rules adopted by the department of ecology applicable to passenger cars, light duty trucks, and medium duty vehicles.
(b) "Zero-emission vehicle program" does not include the advanced clean trucks rule adopted by the department of ecology under chapter 70A.30 RCW or other successor rules adopted by the department under chapter 70A.30 RCW applicable to heavy duty vehicles.
(7) "Zero-emission vehicle requirement" means a manufacturer's zero-emission vehicle production required, expressed in whole vehicles, for the applicable model year under the zero-emission vehicle program.
(8) "ZEV credit" means a unit of measure generated when a manufacturer delivers a zero-emission vehicle or qualifying plug-in hybrid vehicle for sale in Washington or undertakes other activities specified in rules adopted by the department of ecology to implement chapter 70A.30 RCW.
[ 2025 c 419 s 2.]
Notes:
Findings—Intent—Tax preference performance statement exemption—Automatic expiration date exemption—Application—Effective date—2025 c 419: See notes following RCW 82.17.030.

catchline: Definitions.


title: RCW 82.17.020

text:
(1) By October 31st of each year, the department of ecology must transmit to the department the following information related to each manufacturer's zero-emission vehicle program activities during the preceding model year, using information reported to the department of ecology under chapter 70A.30 RCW:
(a) Beginning with implementation of the zero-emission vehicle program for purposes of model year 2024, the number of surplus ZEV credits banked by each manufacturer for use in complying with the requirements of the zero-emission vehicle program during a future model year, and the model year of each banked credit. The information reported under this subsection (1)(a) must include any banked ZEV credits that were generated prior to model year 2024 that continued to be banked during implementation of the program in model year 2024 and in subsequent model years; and
(b) Beginning with implementation of the zero-emission vehicle program for purposes of model year 2024, for each purchase or sale of zero-emission vehicle credits by the manufacturer:
(i) The date of the purchase or sale;
(ii) The identity of the other manufacturer involved in the purchase or sale transaction;
(iii) The volume of zero-emission vehicle credits included in the purchase or sale; and
(iv) The model year of the credits purchased or sold.
(2) Beginning with implementation of the zero-emission vehicle program for purposes of model year 2024, each manufacturer must record and report to the department, in a form and manner prescribed by the department, the price, per credit and in total, of the zero-emission vehicle credits included in transactions specified in subsection (1)(b) of this section and in such a way that it identifies the specific transaction reported by the department of ecology to the department. A manufacturer that sold credits associated with model year 2023 vehicles prior to May 20, 2025, must report to the department the price per credit, and number of such credits sold, at the same time that it is required to report any sales of model year 2024 credits. Manufacturers must report the information required under this subsection by October 31st for the previous model year of the zero-emission vehicle program.
(3) Unaggregated information pertaining to the price of zero-emission vehicle credits in an individual zero-emission vehicle credit transaction is financial, commercial, and proprietary information exempt from public disclosure under chapter 42.56 RCW. Information related to the price of zero-emission vehicle credits in an individual zero-emission vehicle credit transaction under subsection (2) of this section must be aggregated by a time period no more frequent than the calendar quarter in which the transaction occurred, and in a manner that does not disclose the price of a ZEV credit in a specific transaction.
[ 2025 c 419 s 3.]
Notes:
Findings—Intent—Tax preference performance statement exemption—Automatic expiration date exemption—Application—Effective date—2025 c 419: See notes following RCW 82.17.030.

catchline: Information related to manufacturer's zero-emission vehicle program activities—Transmission to department.


title: RCW 82.17.030

text:
(1) Beginning May 20, 2025, for purposes of model year 2024 program implementation, an excise tax is imposed on the banking and sale of surplus ZEV credits as verified by the department of ecology for each model year. The excise tax imposed under this section does not apply to pooled surplus ZEV credits.
(a) For a ZEV credit sold to another manufacturer, the amount of the tax with respect to such sale is equal to the credit sales price reported under RCW 82.17.020 multiplied by a rate of two percent.
(b) For a ZEV credit banked by a manufacturer, and thus considered sold under this chapter, the amount of tax with respect to the privilege of holding a banked ZEV credit for use in a future model year is equal to the average ZEV credit price calculated by the department under subsection (3) of this section, multiplied by the rate of 10 percent. For purposes of the tax imposed under this chapter, a banked ZEV credit held at the start of the next model year is considered sold.
(2) For each year of zero-emission vehicle program implementation that a ZEV credit is banked or continues to be banked, the manufacturer must pay the tax specified in subsection (1)(b) of this section. The tax in subsection (1)(b) of this section applies to banked credits that were generated prior to model year 2024 that continue to be banked during implementation of the program for purposes of model year 2024 or subsequent model years.
(3) Based on the ZEV credit sales prices reported to the department under RCW 82.17.020:
(a) For each model year, the department must calculate the average ZEV credit price and share this information with the department of ecology for publication. The average ZEV credit price for a model year must be calculated by aggregating the reported sales prices of ZEV credits under RCW 82.17.020 by all manufacturers that reported transactions for the model year. If there were no transactions of ZEV credits reported to the department for a specific model year, the department must apply the average ZEV credit price for the most recent model year for which such data are available for purposes of that specific model year.
(b) Beginning November 1, 2026, and each year thereafter, the department must calculate the amount of the tax by each manufacturer due under this section. The department must notify the manufacturer of their tax liability for the most recent reporting year no later than January 31st of the immediately following calendar year, except that the department may notify the manufacturer of their tax liability for both model year 2024 and model year 2025 no later than January 31, 2027.
(c) Once the average ZEV credit price has been calculated and is published to the department of ecology's website, the amount is considered final and cannot be altered based on amended information received by the department from the department of ecology or a participating manufacturer.
(4) Penalties and interest under chapter 82.32 RCW will apply to any tax liability not paid by the due date of the notice of tax liability under subsection (3) of this section.
(5) The proceeds from the tax imposed under this chapter must be deposited as follows:
(a) 30 percent to the electric vehicle incentive account created in RCW 43.330.365;
(b)(i) Until June 30, 2027, 70 percent to the state general fund; and
(ii) Beginning July 1, 2027, 70 percent to the carbon emissions reduction account created in RCW 70A.65.240.
[ 2025 c 419 s 4.]
Notes:
Findings—Intent—2025 c 419: "The legislature finds that the zero-emission vehicle program is a key policy supporting state efforts to achieve greenhouse gas emissions reductions required in RCW 70A.45.020. The advanced clean cars and advanced clean cars II components of the zero-emission vehicle program require manufacturers of passenger cars and light duty trucks to achieve an escalating minimum percentage of zero-emission vehicles for sale or lease in Washington, or to obtain surplus credits from an auto manufacturer that has exceeded this minimum compliance obligation. By providing for the creation of these tradeable and bankable credits, the program creates an incentive for vehicle manufacturers to maximize their investments in developing and selling cleaner cars. The legislature also finds that the creation of these tradeable and bankable credits creates the opportunity for a financial windfall accruing to firms that are not burdened by the legacy production of internal combustion engine vehicles that make a compliance obligation more difficult under the program. Therefore, it is the intent of the legislature to address this unintended outcome by taxing the windfall profits from the generation of surplus zero-emission vehicle credits and reinvesting those funds in other programs and incentives that promote cleaner vehicles that further state climate goals." [ 2025 c 419 s 1.]
Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 419: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2025 c 419 s 7.]
Application—2025 c 419: "This act applies to ZEV credits banked or sold after May 20, 2025, and thereafter." [ 2025 c 419 s 10.]
Effective date—2025 c 419: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 20, 2025]." [ 2025 c 419 s 12.]
PDF
RCW 82.17.030
Tax on the banking and sale of surplus ZEV credits—Penalties and interest. (Effective July 1, 2027.)
(1) Beginning May 20, 2025, for purposes of model year 2024 program implementation, an excise tax is imposed on the banking and sale of surplus ZEV credits as verified by the department of ecology for each model year. The excise tax imposed under this section does not apply to pooled surplus ZEV credits.
(a) For a ZEV credit sold to another manufacturer, the amount of the tax with respect to such sale is equal to the credit sales price reported under RCW 82.17.020 multiplied by a rate of two percent.
(b) For a ZEV credit banked by a manufacturer, and thus considered sold under this chapter, the amount of tax with respect to the privilege of holding a banked ZEV credit for use in a future model year is equal to the average ZEV credit price calculated by the department under subsection (3) of this section, multiplied by the rate of 10 percent. For purposes of the tax imposed under this chapter, a banked ZEV credit held at the start of the next model year is considered sold.
(2) For each year of zero-emission vehicle program implementation that a ZEV credit is banked or continues to be banked, the manufacturer must pay the tax specified in subsection (1)(b) of this section. The tax in subsection (1)(b) of this section applies to banked credits that were generated prior to model year 2024 that continue to be banked during implementation of the program for purposes of model year 2024 or subsequent model years.
(3) Based on the ZEV credit sales prices reported to the department under RCW 82.17.020:
(a) For each model year, the department must calculate the average ZEV credit price and share this information with the department of ecology for publication. The average ZEV credit price for a model year must be calculated by aggregating the reported sales prices of ZEV credits under RCW 82.17.020 by all manufacturers that reported transactions for the model year. If there were no transactions of ZEV credits reported to the department for a specific model year, the department must apply the average ZEV credit price for the most recent model year for which such data are available for purposes of that specific model year.
(b) Beginning November 1, 2026, and each year thereafter, the department must calculate the amount of the tax by each manufacturer due under this section. The department must notify the manufacturer of their tax liability for the most recent reporting year no later than January 31st of the immediately following calendar year, except that the department may notify the manufacturer of their tax liability for both model year 2024 and model year 2025 no later than January 31, 2027.
(c) Once the average ZEV credit price has been calculated and is published to the department of ecology's website, the amount is considered final and cannot be altered based on amended information received by the department from the department of ecology or a participating manufacturer.
(4) Penalties and interest under chapter 82.32 RCW will apply to any tax liability not paid by the due date of the notice of tax liability under subsection (3) of this section.
(5) The proceeds from the tax imposed under this chapter must be deposited as follows:
(a) 30 percent to the electric vehicle incentive account created in RCW 43.330.365;
(b)(i) Until June 30, 2027, 70 percent to the state general fund; and
(ii) Beginning July 1, 2027, 70 percent to the climate commitment act transportation account created in RCW 70A.65.240.
[ 2026 c 219 s 20; 2025 c 419 s 4.]
Notes:
Effective date—2026 c 219: See note following RCW 70A.65.410.
Findings—Intent—2025 c 419: "The legislature finds that the zero-emission vehicle program is a key policy supporting state efforts to achieve greenhouse gas emissions reductions required in RCW 70A.45.020. The advanced clean cars and advanced clean cars II components of the zero-emission vehicle program require manufacturers of passenger cars and light duty trucks to achieve an escalating minimum percentage of zero-emission vehicles for sale or lease in Washington, or to obtain surplus credits from an auto manufacturer that has exceeded this minimum compliance obligation. By providing for the creation of these tradeable and bankable credits, the program creates an incentive for vehicle manufacturers to maximize their investments in developing and selling cleaner cars. The legislature also finds that the creation of these tradeable and bankable credits creates the opportunity for a financial windfall accruing to firms that are not burdened by the legacy production of internal combustion engine vehicles that make a compliance obligation more difficult under the program. Therefore, it is the intent of the legislature to address this unintended outcome by taxing the windfall profits from the generation of surplus zero-emission vehicle credits and reinvesting those funds in other programs and incentives that promote cleaner vehicles that further state climate goals." [ 2025 c 419 s 1.]
Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 419: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2025 c 419 s 7.]
Application—2025 c 419: "This act applies to ZEV credits banked or sold after May 20, 2025, and thereafter." [ 2025 c 419 s 10.]
Effective date—2025 c 419: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 20, 2025]." [ 2025 c 419 s 12.]

catchline: Tax on the banking and sale of surplus ZEV credits—Penalties and interest. (Effective until July 1, 2027.)


title: RCW 82.17.040

text:
(1) Except as otherwise provided by law and to the extent not inconsistent with the provisions of this chapter, chapter 82.32 RCW applies to the administration of taxes imposed under this chapter.
(2) The department may adopt any rules it considers useful in administering the tax under this chapter.
[ 2025 c 419 s 5.]
Notes:
Findings—Intent—Tax preference performance statement exemption—Automatic expiration date exemption—Application—Effective date—2025 c 419: See notes following RCW 82.17.030.

catchline: Applicability of general administrative provisions—Rules.


title: RCW 82.17.050

text:
The tax imposed under RCW 82.17.030 does not apply to a manufacturer that banks or sells credits associated with zero-emission vehicles or qualifying plug-in hybrid zero-emission vehicles in an amount below a total of 25,000 zero-emission vehicles or plug-in hybrid zero-emission vehicles that are banked or sold for a model year by the manufacturer. A manufacturer that banks or sells ZEV credits, in total, for a model year of zero-emission vehicle program implementation in an amount equal to or exceeding the ZEV credits associated with 25,000 zero-emission vehicles or plug-in hybrid zero-emission vehicles must pay the tax imposed under this chapter on each credit banked or sold by the manufacturer for that model year.
[ 2025 c 419 s 6.]
Notes:
Findings—Intent—Tax preference performance statement exemption—Automatic expiration date exemption—Application—Effective date—2025 c 419: See notes following RCW 82.17.030.

catchline: Application of tax to manufacturers that sell fewer than 25,000 vehicles.


title: RCW 82.18.010

text:
For purposes of this chapter:
(1) "Solid waste collection business" means every person who receives solid waste for transfer, storage, or disposal including but not limited to all collection services, public or private dumps, transfer stations, and similar operations.
(2) "Person" shall have the meaning given in RCW 82.04.030 or any later, superseding section.
(3) "Solid waste" means garbage, trash, rubbish, or other material discarded as worthless or not economically viable for further use. The term does not include hazardous or toxic waste nor does it include material collected primarily for recycling or salvage.
(4) "Taxpayer" means that person upon whom the solid waste collection tax is imposed.
[ 1989 c 431 s 78; 1986 c 282 s 6.]


title: RCW 82.18.020

text:
There is imposed on each person using the solid waste services of a solid waste collection business a solid waste collection tax equal to three and six-tenths percent of the consideration charged for the services.
[ 1989 c 431 s 79; 1986 c 282 s 7.]

catchline: Solid waste collection tax—Revenue to public works assistance account per RCW 82.18.040.


title: RCW 82.18.025

text:
See RCW 82.32.805 for the expiration date of new tax preferences for the tax imposed under this chapter.
[ 2013 2nd sp.s. c 13 s 1709.]
Notes:
Effective date—2013 2nd sp.s. c 13: See note following RCW 82.04.43393.

catchline: Tax preferences—Expiration dates.


title: RCW 82.18.030

text:
The person collecting the charges made for using the solid waste collection business shall collect the tax imposed in this chapter. If any person charged with collecting the tax fails to bill the taxpayer for the tax, or in the alternative has not notified the taxpayer in writing of the imposition of the tax, or having collected the tax, fails to pay it to the department in the manner prescribed by this chapter, whether such failure is the result of the person's own acts or the result of acts or conditions beyond the person's control, he or she shall, nevertheless, be personally liable to the state for the amount of the tax.
[ 1989 c 431 s 84; 1986 c 282 s 8.]

catchline: Collection of tax.


title: RCW 82.18.040

text:
(1) Taxes collected under this chapter must be held in trust until paid to the state. Except as otherwise provided in this subsection (1), taxes received by the state must be deposited in the public works assistance account created in RCW 43.155.050. For the period beginning July 1, 2011, and ending June 30, 2015, taxes received by the state under this chapter must be deposited in the general fund for general purpose expenditures. For fiscal years 2016, 2017, and 2018, one-half of the taxes received by the state under this chapter must be deposited in the general fund for general purpose expenditures and the remainder deposited in the education legacy trust account created in RCW 83.100.230. For fiscal years 2019 through 2023, taxes received by the state under this chapter must be deposited in the education legacy trust account created in RCW 83.100.230. Any person collecting the tax who appropriates or converts the tax collected is guilty of a gross misdemeanor if the money required to be collected is not available for payment on the date payment is due. If a taxpayer fails to pay the tax imposed by this chapter to the person charged with collection of the tax and the person charged with collection fails to pay the tax to the department, the department may, in its discretion, proceed directly against the taxpayer for collection of the tax.
(2) The tax is due from the taxpayer within twenty-five days from the date the taxpayer is billed by the person collecting the tax.
(3) The tax is due from the person collecting the tax at the end of the tax period in which the tax is received from the taxpayer. If the taxpayer remits only a portion of the total amount billed for taxes, consideration, and related charges, the amount remitted must be applied first to payment of the solid waste collection tax and this tax has priority over all other claims to the amount remitted.
[ 2017 3rd sp.s. c 10 s 15; 2013 2nd sp.s. c 9 s 8; 2012 2nd sp.s. c 5 s 2; 2011 1st sp.s. c 48 s 7034; 2000 c 103 s 11; 1989 c 431 s 85; 1986 c 282 s 9.]
Notes:
Intent—Effective dates—2013 2nd sp.s. c 9: See notes following RCW 28A.150.220.
Effective date—2012 2nd sp.s. c 5 s 2: "Section 2 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 2, 2012]." [ 2012 2nd sp.s. c 5 s 13.]
Effective date—2011 1st sp.s. c 48: See note following RCW 39.35B.050.

catchline: Collection of tax—Payment to state.


title: RCW 82.18.050

text:
The solid waste collection taxes imposed in this chapter shall not apply to any agency, division, or branch of the federal government or to services rendered under a contract therewith.
[ 1989 c 431 s 86; 1986 c 282 s 10.]

catchline: Federal government exempt from tax.


title: RCW 82.18.060

text:
To prevent pyramiding and multiple taxation of a single transaction, the solid waste collection taxes imposed in this chapter shall not apply to any solid waste collection business using the services of another solid waste collection business for the transfer, storage, processing, or disposal of the waste collected during the transaction.
To be eligible for this exemption, a person first must be certified by the department of revenue as a solid waste collection business.
[ 1989 c 431 s 87; 1986 c 282 s 11.]

catchline: No multiple taxation of single transaction.


title: RCW 82.18.070

text:
Chapter 82.32 RCW applies to the taxes imposed under this chapter.
[ 1989 c 431 s 88; 1986 c 282 s 12.]

catchline: Applicability of general administrative provisions.


title: RCW 82.18.080

text:
The department of revenue shall have the power to enforce the taxes imposed in this chapter through appropriate rules.
[ 1989 c 431 s 89; 1986 c 282 s 13.]

catchline: Enforcement.


title: RCW 82.19.010

text:
(1) In addition to any other taxes, there is hereby levied and there shall be collected by the department of revenue from every person for the privilege of engaging within this state in business as a manufacturer, as a wholesaler, or as a retailer, a litter tax equal to the value of products listed in RCW 82.19.020, including by-products, manufactured within this state, multiplied by fifteen one-thousandths of one percent in the case of manufacturers, and equal to the gross proceeds of sales of the products listed in RCW 82.19.020 that are sold within this state multiplied by fifteen one-thousandths of one percent in the case of wholesalers and retailers.
(2) The frequency and time of collection of the tax will coincide with the reporting periods by payers of their business and occupation tax.
[ 2008 c 86 s 201; 1998 c 257 s 7; 1992 c 175 s 3; 1971 ex.s. c 307 s 12. Formerly RCW 70.93.120.]
Notes:
Severability—Savings—Part headings not law—2008 c 86: See notes following RCW 82.14.030.

catchline: Litter tax imposed—Report to the legislature—Time of collection.


title: RCW 82.19.020

text:
To accomplish effective litter control within the state and to allocate a portion of the cost of administering this chapter to those industries whose products, including the packages, wrappings, and containers thereof, are reasonably related to the litter problem, the tax imposed in this chapter shall only apply to the value of products or the gross proceeds of sales of products falling into the following categories:
(1) Food for human or pet consumption.
(2) Groceries.
(3) Cigarettes and tobacco products.
(4) Soft drinks and carbonated waters.
(5) Beer and other malt beverages.
(6) Wine.
(7) Newspapers and magazines.
(8) Household paper and paper products.
(9) Glass containers.
(10) Metal containers.
(11) Plastic or fiber containers made of synthetic material.
(12) Cleaning agents and toiletries.
(13) Nondrug drugstore sundry products.
[ 1992 c 175 s 4; 1971 ex.s. c 307 s 13. Formerly RCW 70.93.130.]

catchline: Application to certain products.


title: RCW 82.19.030

text:
(1) The department of revenue, by rule, may, if such is required, define those items subject to tax under RCW 82.19.020. In making any such definitions, the department of revenue shall be guided by the following standards:
(a) It is the purpose of this chapter to accomplish effective control of litter within this state;
(b) It is the purpose of this chapter to allocate a portion of the cost of administration of this chapter to those industries manufacturing and/or selling products and the packages, wrappings, or containers thereof which are reasonably related to the litter problem within this state.
(2) Instead of requiring each business to separately account for taxable and nontaxable products under this chapter, the department may provide, by rule, that the tax imposed in this chapter be reported and paid based on a percentage of total sales for a particular type of business if the department determines that the percentage reasonably approximates the taxable activity of the particular type of business.
[ 1992 c 175 s 5; 1971 ex.s. c 307 s 14. Formerly RCW 70.93.140.]

catchline: Rule-making authority tax—Items subject to—Reporting and accounting.


title: RCW 82.19.040

text:
(1) To the extent applicable, all of the definitions of chapter 82.04 RCW and all of the provisions of chapter 82.32 RCW apply to the tax imposed in this chapter.
(2) Beginning June 30, 2019, taxes collected under this chapter shall be deposited in the waste reduction, recycling, and litter control account under RCW 70A.200.140, except that until June 30, 2020, one million two hundred fifty thousand dollars must be deposited in equal monthly amounts in the state parks renewal and stewardship account, with the remainder deposited in the waste reduction, recycling, and litter control account.
[ 2020 c 357 s 920; 2020 c 20 s 1482; 2019 c 415 s 989; (2018 c 299 s 915 expired June 30, 2019); 2017 3rd sp.s. c 1 s 990; (2017 3rd sp.s. c 1 s 989 expired June 30, 2019); 2015 c 15 s 6; (2015 c 15 s 5 expired June 30, 2019); (2013 2nd sp.s. c 15 s 5 expired June 30, 2019); 2001 c 118 s 6; 1992 c 175 s 6; 1971 ex.s. c 307 s 16. Formerly RCW 70.93.160.]
Notes:
Reviser's note: This section was amended by 2020 c 20 s 1482 and by 2020 c 357 s 920, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Effective date—2020 c 357: See note following RCW 43.79.545.
Effective date—2019 c 415 s 989: "Section 989 of this act takes effect June 30, 2019." [ 2019 c 415 s 1801.]
Expiration date—2018 c 299 s 915: "Section 916 [915] of this act expires June 30, 2019." [ 2018 c 299 s 916.]
Effective date—2018 c 299: See note following RCW 43.41.433.
Expiration date—2017 3rd sp.s. c 1 s 989: "Section 989 (RCW 82.19.040) of this act expires June 30, 2019." [ 2017 3rd sp.s. c 1 s 999.]
Effective date—2017 3rd sp.s. c 1 s 990: "Section 990 (RCW 82.19.040) of this act takes effect June 30, 2019." [ 2017 3rd sp.s. c 1 s 998.]
Expiration date—2017 3rd sp.s. c 1; 2013 2nd sp.s. c 15 ss 5-7: "Sections 5 and 6 of this act expire June 30, 2019. Section 7 of this act expires June 30, 2017." [ 2017 3rd sp.s. c 1 s 992; 2013 2nd sp.s. c 15 s 8.]
Effective date—2017 3rd sp.s. c 1: See note following RCW 43.41.455.
Expiration date—2015 c 15 ss 2 and 5: See note following RCW 70A.200.140.
Effective date—2015 c 15 ss 3 and 6: See note following RCW 70A.200.140.
Effective date—2013 2nd sp.s. c 15 ss 5-7: "Sections 5 through 7 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2013." [ 2013 2nd sp.s. c 15 s 9.]

catchline: Application of chapters 82.04 and 82.32 RCW—Disposition of revenue.


title: RCW 82.19.050

text:
The litter tax imposed in this chapter does not apply to:
(1) The manufacture or sale of products for use and consumption outside the state;
(2) The value of products or gross proceeds of the sales exempt from tax under RCW 82.04.330;
(3) The sale of products for resale by a qualified grocery distribution cooperative to customer-owners of the grocery distribution cooperative. For the purposes of this section, "qualified grocery distribution cooperative" and "customer-owner" have the meanings given in RCW 82.04.298;
(4) The sale of food or beverages by retailers that are sold solely for immediate consumption indoors at the seller's place of business or at a deck or patio at the seller's place of business, or indoors at an eating area that is contiguous to the seller's place of business; or
(5)(a) The sale of prepared food or beverages by caterers where the food or beverages are to be served for immediate consumption in or on individual nonsingle use containers at premises occupied or controlled by the customer.
(b) For the purposes of this subsection, the following definitions apply:
(i) "Prepared food" has the same meaning as provided in RCW 82.08.0293.
(ii) "Nonsingle use container" means a receptacle for holding a single individual's food or beverage that is designed to be used more than once. Nonsingle use containers do not include pizza delivery bags and similar insulated containers that do not directly contact the food. Nonsingle use containers do not include plastic or paper plates or other containers that are disposable.
(iii) "Caterer" means a person contracted to prepare food where the final cooking or serving occurs at a location selected by the customer.
[ 2005 c 289 s 1; 2003 c 120 s 1; 2001 1st sp.s. c 9 s 7; (2001 1st sp.s. c 9 s 8 expired July 22, 2001); 2001 c 118 s 7; 1992 c 175 s 7; 1971 ex.s. c 307 s 17. Formerly RCW 70.93.170.]
Notes:
Effective date—2003 c 120: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 7, 2003]." [ 2003 c 120 s 2.]
Effective dates—2001 1st sp.s. c 9: See note following RCW 82.04.298.
Expiration dates—2001 1st sp.s. c 9: See note following RCW 82.04.290.

catchline: Exemptions.


title: RCW 82.19.055

text:
See RCW 82.32.805 for the expiration date of new tax preferences for the tax imposed under this chapter.
[ 2013 2nd sp.s. c 13 s 1710.]
Notes:
Effective date—2013 2nd sp.s. c 13: See note following RCW 82.04.43393.


title: RCW 82.19.900

text:
This act shall take effect July 1, 1992.
[ 1992 c 175 s 11.]

catchline: Effective date—1992 c 175.


title: RCW 82.21.010

text:
(1) It is the intent of this chapter to impose a tax only once for each hazardous substance possessed in this state and to tax the first possession of all hazardous substances, including substances and products that the department of ecology determines to present a threat to human health or the environment. However, it is not intended to impose a tax on the first possession of small amounts of any hazardous substance (other than petroleum and pesticide products) that is first possessed by a retailer for the purpose of sale to ultimate consumers. This chapter is not intended to exempt any person from tax liability under any other law.
(2) It is the specific purpose of the model toxics control reform act (chapter 422, Laws of 2019) to update the model toxics control program and its primary funding mechanism. These reforms are intended to achieve the financial stability, transparency, and long-term protection of revenues. Specifically, this reform act makes the following changes:
(a) Increases funding for programs and projects related to clean air, clean water, toxic cleanup, and prevention, with specific focus on stormwater pollution;
(b) Provides distinct and transparent financial separation of capital and operating budget funding under the model toxics control program;
(c) Improves the transparency and visibility of operating and capital project expenditures under the model toxics control program; and
(d) Eliminates the year-to-year volatility of hazardous substance tax revenues by moving to a volumetric rate for petroleum products.
[ 2019 c 422 s 101; 1989 c 2 s 8 (Initiative Measure No. 97, approved November 8, 1988).]
Notes:
Effective date—2019 c 422: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2019." [ 2019 c 422 s 419.]
Intent—2019 c 422: "It is the intent of the legislature that during the 2019-2021 biennium no transfers to the state general fund, education legacy trust account, or opportunities pathway account must be made from the state toxics control account, local toxics control account, environmental legacy stewardship account, model toxics control operating account, model toxics control capital account, or model toxics control stormwater account." [ 2019 c 422 s 1.]

catchline: Intent of pollution tax—Intent of model toxics control reform act.


title: RCW 82.21.020

text:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Hazardous substance" means:
(a) Any substance that, on March 1, 2002, is a hazardous substance under section 101(14) of the federal comprehensive environmental response, compensation, and liability act of 1980, 42 U.S.C. Sec. 9601(14), as amended by Public Law 99-499 on October 17, 1986, except that hazardous substance does not include the following noncompound metals when in solid form in a particle larger than one hundred micrometers (0.004 inches) in diameter: Antimony, arsenic, beryllium, cadmium, chromium, copper, lead, nickel, selenium, silver, thallium, or zinc;
(b) Petroleum products;
(c) Any pesticide product required to be registered under section 136a of the federal insecticide, fungicide and rodenticide act, 7 U.S.C. Sec. 136 et seq., as amended by Public Law 104-170 on August 3, 1996; and
(d) Any other substance, category of substance, and any product or category of product determined by the director of ecology by rule to present a threat to human health or the environment if released into the environment. The director of ecology shall not add or delete substances from this definition more often than twice during each calendar year. For tax purposes, changes in this definition shall take effect on the first day of the next month that is at least thirty days after the effective date of the rule. The word "product" or "products" as used in this paragraph (d) means an item or items containing both: (i) One or more substances that are hazardous substances under (a), (b), or (c) of this subsection or that are substances or categories of substances determined under this paragraph (d) to present a threat to human health or the environment if released into the environment; and (ii) one or more substances that are not hazardous substances.
(2) "Petroleum product" means plant condensate, lubricating oil, gasoline, aviation fuel, kerosene, diesel motor fuel, benzol, fuel oil, residual oil, liquefied or liquefiable gases such as butane, ethane, and propane, and every other product derived from the refining of crude oil, but the term does not include crude oil.
(3) "Possession" means the control of a hazardous substance located within this state and includes both actual and constructive possession. "Actual possession" occurs when the person with control has physical possession. "Constructive possession" occurs when the person with control does not have physical possession. "Control" means the power to sell or use a hazardous substance or to authorize the sale or use by another.
(4) "Previously taxed hazardous substance" means a hazardous substance in respect to which a tax has been paid under this chapter and which has not been remanufactured or reprocessed in any manner (other than mere repackaging or recycling for beneficial reuse) since the tax was paid.
(5) "Wholesale value" means fair market wholesale value, determined as nearly as possible according to the wholesale selling price at the place of use of similar substances of like quality and character, in accordance with rules of the department.
(6) Except for terms defined in this section, the definitions in chapters 82.04, 82.08, and 82.12 RCW apply to this chapter.
[ 2002 c 105 s 1; 1989 c 2 s 9 (Initiative Measure No. 97, approved November 8, 1988).]
Notes:
Effective date—2002 c 105: "This act takes effect July 1, 2002." [ 2002 c 105 s 2.]

catchline: Definitions.


title: RCW 82.21.030

text:
(1)(a) A tax is imposed on the privilege of possession of hazardous substances in this state. Except as provided in (b) of this subsection, the rate of the tax is seven-tenths of one percent multiplied by the wholesale value of the substance. Moneys collected under this subsection (1)(a) must be deposited in the model toxics control capital account.
(b) For the fiscal year beginning July 1, 2019, the rate of the tax on petroleum products is $1.09 per barrel. For subsequent fiscal years, the rate of tax on petroleum products is determined pursuant to subsection (3) of this section. The tax collected under this subsection (1)(b) on petroleum products must be deposited as follows, after first depositing the tax as provided in (c) of this subsection, except that during the 2021-2023 biennium the deposit as provided in (c) of this subsection may be prorated equally across each month of the biennium:
(i) Sixty percent to the model toxics control operating account created under RCW 70A.305.180;
(ii) Twenty-five percent to the model toxics control capital account created under RCW 70A.305.190; and
(iii) Fifteen percent to the model toxics control stormwater account created under RCW 70A.305.200.
(c) Until the beginning of the ensuing biennium after the enactment of an additive transportation funding act, $50,000,000 per biennium to the motor vehicle fund to be used exclusively for transportation stormwater activities and projects. For purposes of this subsection, "additive transportation funding act" means an act enacted after June 30, 2023, in which the combined total of new revenues deposited into the motor vehicle fund and the multimodal transportation account exceed $2,000,000,000 per biennium attributable solely to an increase in revenue from the enactment of the act.
(d) The department must compile a list of petroleum products that are not easily measured on a per barrel basis. Petroleum products identified on the list are subject to the rate under (a) of this subsection in lieu of the volumetric rate under (b) of this subsection. The list will be made in a form and manner prescribed by the department and must be made available on the department's internet website. In compiling the list, the department may accept technical assistance from persons that sell, market, or distribute petroleum products and consider any other resource the department finds useful in compiling the list.
(2) Chapter 82.32 RCW applies to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.
(3) For fiscal years beginning on or after July 1, 2020, the rate of tax on petroleum products for the previous fiscal year must be adjusted to reflect the percentage change in the implicit price deflator for nonresidential structures as published by the United States department of commerce, bureau of economic analysis for the most recent 12-month period ending December 31st of the prior year.
[ 2023 c 68 s 3; 2022 c 182 s 313; 2021 c 333 s 705; 2020 c 20 s 1483; 2019 c 422 s 201; 1989 c 2 s 10 (Initiative Measure No. 97, approved November 8, 1988).]
Notes:
Effective date—2022 c 182 ss 313, 408-414, and 421: "Sections 313, 408 through 414, and 421 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [March 25, 2022]." [ 2022 c 182 s 508.]
Intent—2022 c 182: See note following RCW 70A.65.240.
Effective date—2021 c 333: See note following RCW 43.19.642.
Effective date—Intent—2019 c 422: See notes following RCW 82.21.010.

catchline: Pollution tax.


title: RCW 82.21.040

text:
The following are exempt from the tax imposed in this chapter:
(1) Any successive possession of a previously taxed hazardous substance. If tax due under this chapter has not been paid with respect to a hazardous substance, the department may collect the tax from any person who has had possession of the hazardous substance. If the tax is paid by any person other than the first person having taxable possession of a hazardous substance, the amount of tax paid shall constitute a debt owed by the first person having taxable possession to the person who paid the tax.
(2) Any possession of a hazardous substance by a natural person under circumstances where the substance is used, or is to be used, for a personal or domestic purpose (and not for any business purpose) by that person or a relative of, or person residing in the same dwelling as, that person.
(3) Any possession of a hazardous substance amount which is determined as minimal by the department of ecology and which is possessed by a retailer for the purpose of making sales to ultimate consumers. This exemption does not apply to pesticide or petroleum products.
(4) Any possession of alumina or natural gas.
(5)(a) Until January 1, 2038, any possession of a hazardous substance as defined in RCW 82.21.020(1)(c) that is solely for use by a farmer or certified applicator as an agricultural crop protection product and warehoused in this state or transported to or from this state, provided that the person possessing the substance does not otherwise use, manufacture, package for sale, or sell the substance in this state.
(b) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(i) "Agricultural crop protection product" means a chemical regulated under the federal insecticide, fungicide, and rodenticide act, 7 U.S.C. Sec. 136 as amended as of September 1, 2015, when used to prevent, destroy, repel, mitigate, or control predators, diseases, weeds, or other pests.
(ii) "Certified applicator" has the same meaning as provided in RCW 17.21.020.
(iii) "Farmer" has the same meaning as in RCW 82.04.213.
(iv) "Manufacturing" includes mixing or combining agricultural crop protection products with other chemicals or other agricultural crop protection products.
(v) "Package for sale" includes transferring agricultural crop protection products from one container to another, including the transfer of fumigants and other liquid or gaseous chemicals from one tank to another.
(vi) "Use" has the same meaning as in RCW 82.12.010.
(6) Persons or activities which the state is prohibited from taxing under the United States Constitution.
[ 2026 c 164 s 1; 2024 c 241 s 1; 2015 3rd sp.s. c 6 s 1902; 1989 c 2 s 11 (Initiative Measure No. 97, approved November 8, 1988).]
Notes:
Tax preference performance statement—2026 c 164; 2024 c 241 s 1; 2015 3rd sp.s. c 6 s 1902: "(1) The legislature categorizes the tax preference in section 1902, chapter 6, Laws of 2015 3rd sp.s., section 1, chapter 241, Laws of 2024, and section 1, chapter 164, Laws of 2026 as one intended to improve industry competitiveness, as indicated in RCW 82.32.808(2)(b).
(2) The legislature's specific public policy objective is to clarify an existing exemption from the hazardous substance tax for agricultural crop protection products to incentivize storing products in Washington state as they are engaged in interstate commerce. The legislature finds that the agricultural industry is a vital component of Washington's economy, providing thousands of jobs throughout the state. The legislature further finds that Washington state is the ideal location for distribution centers for agricultural crop protection products because Washington is an efficient transportation hub for Pacific Northwest farmers, and encourages crop protection products to be managed in the most protective facilities, and transported using the most sound environmental means. However, products being warehoused in the state are diminishing because agricultural crop protection products are being redirected to out-of-state distribution centers as a direct result of Washington's tax burden. Relocation of this economic activity is detrimental to Washington's economy through the direct loss of jobs and hazardous substance tax revenue, thereby negatively impacting the supply chain for Washington farmers, thereby causing increased transportation usage and risk of spillage, thereby failing to encourage the most environmentally protective measures. Therefore, it is the intent of the legislature to encourage the regional competitiveness of agricultural distribution by clarifying an exemption from the hazardous substance tax for agricultural crop protection products that are manufactured out-of-state, warehoused or transported into the state, but ultimately shipped and sold out of Washington state.
(3) If a review finds an average increase in revenue of the hazardous substance tax, then the legislature intends to extend the expiration date of the tax preference.(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee may refer to data available from the department of revenue." [ 2026 c 164 s 2; 2024 c 241 s 2; 2015 3rd sp.s. c 6 s 1901.]
Effective dates—2015 3rd sp.s. c 6: See note following RCW 82.04.4266.


title: RCW 82.21.045

text:
See RCW 82.32.805 for the expiration date of new tax preferences for the tax imposed under this chapter.
[ 2013 2nd sp.s. c 13 s 1711.]
Notes:
Effective date—2013 2nd sp.s. c 13: See note following RCW 82.04.43393.


title: RCW 82.21.050

text:
(1) Credit shall be allowed in accordance with rules of the department of revenue for taxes paid under this chapter with respect to fuel carried from this state in the fuel tank of any airplane, ship, truck, or other vehicle.
(2) Credit shall be allowed, in accordance with rules of the department, against the taxes imposed in this chapter for any hazardous substance tax paid to another state with respect to the same hazardous substance. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to that hazardous substance. For the purpose of this subsection:
(a) "Hazardous substance tax" means a tax:
(i) Which is imposed on the act or privilege of possessing hazardous substances, and which is not generally imposed on other activities or privileges; and
(ii) Which is measured by the value of the hazardous substance, in terms of wholesale value or other terms, and in the determination of which the deductions allowed would not constitute the tax an income tax or value added tax.
(b) "State" means (i) the state of Washington, (ii) a state of the United States other than Washington, or any political subdivision of such other state, (iii) the District of Columbia, and (iv) any foreign country or political subdivision thereof.
[ 1989 c 2 s 12 (Initiative Measure No. 97, approved November 8, 1988).]

catchline: Credits.


title: RCW 82.21.900

text: See RCW 70A.305.900.

catchline: Short title—1989 c 2.


title: RCW 82.21.905

text: See RCW 70A.305.901.

catchline: Captions—1989 c 2.


title: RCW 82.21.910

text: See RCW 70A.305.902.

catchline: Construction—1989 c 2.


title: RCW 82.21.915

text: See RCW 70A.305.903.

catchline: Existing agreements—1989 c 2.


title: RCW 82.21.920

text: See RCW 70A.305.904.

catchline: Effective date—1989 c 2.


title: RCW 82.23A.005

text:
It is the intent of this chapter to impose a tax only once for each petroleum product possessed in this state and to tax the first possession of all petroleum products. This chapter is not intended to exempt any person from tax liability under any other law.
[ 1989 c 383 s 14.]

catchline: Intent. (Expires July 1, 2030.)


title: RCW 82.23A.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Petroleum product" means plant condensate, lubricating oil, gasoline, aviation fuel, kerosene, diesel motor fuel, benzol, fuel oil, residual oil, and every other product derived from the refining of crude oil, but the term does not include crude oil or liquefiable gases.
(2) "Possession" means the control of a petroleum product located within this state and includes both actual and constructive possession. "Actual possession" occurs when the person with control has physical possession. "Constructive possession" occurs when the person with control does not have physical possession. "Control" means the power to sell or use a petroleum product or to authorize the sale or use by another.
(3) "Previously taxed petroleum product" means a petroleum product in respect to which a tax has been paid under this chapter and that has not been remanufactured or reprocessed in any manner (other than mere repackaging or recycling for beneficial reuse) since the tax was paid.
(4) "Rack" means a mechanism for delivering petroleum products from a refinery or terminal into a truck, trailer, railcar, or other means of nonbulk transfer. For the purposes of this definition:
(a) "Terminal" has the same meaning as provided in RCW 82.38.020; and
(b) "Nonbulk transfer" means a transfer that does not meet the definition of "bulk transfer" as defined in RCW 82.38.020.
(5) "Wholesale value" means fair market wholesale value, determined as nearly as possible according to the wholesale selling price at the place of use of similar products of like quality and character, in accordance with rules of the department.
(6) Except for terms defined in this section, the definitions in chapters 82.04, 82.08, and 82.12 RCW apply to this chapter.
[ 2020 c 139 s 28; 2012 1st sp.s. c 3 s 4; 2004 c 203 s 4; 1989 c 383 s 15.]

catchline: Definitions. (Expires July 1, 2030.)


title: RCW 82.23A.020

text:
(1) A tax is imposed on the privilege of possession of petroleum products in this state. The rate of the tax shall be thirty one-hundredths of one percent multiplied by the wholesale value of the petroleum product. For purposes of determining the tax imposed under this section for petroleum products introduced at the rack, the wholesale value is determined when the petroleum product is removed at the rack unless the removal is to an exporter licensed under chapter 82.38 RCW for direct delivery to a destination outside of the state. For all other cases, the wholesale value is determined upon the first nonbulk possession in the state.
(2) Except as identified in RCW 70A.345.130, moneys collected under this chapter shall be deposited in the pollution liability insurance program trust account under RCW 70A.325.020.
(3) Chapter 82.32 RCW applies to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.
(4) Within 30 days after the end of each calendar quarter the department shall determine the "quarterly balance," which shall be the cash balance in the pollution liability insurance program trust account as of the last day of that calendar quarter, after excluding the reserves determined for that quarter under RCW 70A.325.020(2) and chapter 70A.545 RCW. Balance determinations by the department under this section are final and shall not be used to challenge the validity of any tax imposed under this section. For each subsequent calendar quarter, tax shall be imposed under this section during the entire calendar quarter unless:
(a) Tax was imposed under this section during the immediately preceding calendar quarter, and the most recent quarterly balance is more than $30,000,000; or
(b) Tax was not imposed under this section during the immediately preceding calendar quarter, and the most recent quarterly balance is more than $15,000,000.
[ 2023 c 170 s 17; 2020 c 20 s 1484; 2016 c 161 s 18; 2012 1st sp.s. c 3 s 5; 1991 c 4 s 8; 1990 c 64 s 12; 1989 c 383 s 16.]
Notes:
Effective date—2023 c 170 s 17: "Section 17 of this act takes effect October 1, 2023." [ 2023 c 170 s 20.]

catchline: Tax imposed—Revenues to be deposited in the pollution liability insurance program trust account. (Expires July 1, 2030.)