HB 2018 — Creating a three-day shop local and save sales and use tax holiday to benefit all Washington families for certain items $1,000 or less during the month of September.

ENGROSSEDH-2137.3 SUBSTITUTE HOUSE BILL 2018 State of Washington 67th Legislature 2022 Regular Session By House Appropriations (originally sponsored by Representatives Paul, Rule, Bergquist, Bronoske, Chapman, Leavitt, Ramel, Ryu, Sutherland, Berg, Callan, Frame, Riccelli, and Lekanoff)Lekanoff READRead FIRSTfirst TIMEtime 02/28/22.01/17/22.

Referred to Committee on Finance.

creating a new sections;section;

1 ESHBHB 2018 international resources were able to pivot to online sales or other strategies to weather the economic crisis, many main street businesses were unable to do the same and are now struggling.

(1) Subject to the limitations and conditions provided in this section, the provisionstax oflevied thisby chapterRCW do82.08.020 does not apply to sales of qualified items with a purchase price of $1,000, or less, purchased by an individual between 12:00 a.m.

(2) TheRules departmentadopted mayby adoptthe rulesdepartment for the administration of this section,section includingmust emergencybe rules.substantially consistent with the streamlined sales and use tax agreement, as used in chapter 82.58 RCW.

These rules must be consistent with the streamlined sales and use tax agreement, to the extent the department considers advisable, so long as the rules are consistent with this section.

(a) "Individual""Clothing" means ahuman naturalwearing personapparel purchasingsuitable the qualified item for personalgeneral useuse. or consumption.

An(b) "individual""Computers doesand notrelated includeproducts" means a naturalcomputer, personas purchasingdefined thein qualifiedRCW item82.04.215, forcomputer usesoftware, oras consumptiondefined byin aRCW business82.04.215, orand incomputer aaccessories. business capacity.

(b)"Computer "Nonqualifiedaccessory" items"means means:an item relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

Motor(c) vehicles;"Energy star qualified appliances" means appliances to be used in a home environment that meet the United States environmental protection agency energy star program requirements.

watercraft;(d) "Health care equipment" means durable medical equipment purchased at a retail establishment without a physician's written prescription.

alcoholic"Durable beverages;medical equipment" has the same meaning as in RCW 82.08.0283.

soft(e) drinks;"Individual" means a natural person purchasing the qualified item for personal use and consumption.

preparedAn food;"individual" does not include persons purchasing qualified items for use and consumption by a business or in a business capacity.

tobacco;(f) "Over-the-counter drug" has the same meaning as in RCW 82.08.0281.

marijuanap. products, or its successor term, as defined in RCW 69.50.101;

vapor2 productsHB as2018 defined(g)(i) in"Qualified RCWitems" 70.345.010;means clothing, certain computers and related products, school supplies, energy star qualified appliances, over-the-counter drugs, and certain health care equipment purchased by an individual.

andEach anyitem product,must thebe retailpriced saleat of$1,000 whichor isless. unlawful.

For(ii) purposes"Qualified ofitems" thisdoes subsectionnot (3)(b),include themotor definitionsvehicles, inboats, RCWservices, 82.08.0293construction, apply.tobacco or marijuana products, alcoholic beverages, utilities, travel, or meals.

(c)(h) "Qualified"School items"supply item" means anyan articleitem ofcommonly tangible personal property, digital good, or digital code used solelyby toa obtainstudent onein ora morecourse digitalof goods,study. excluding nonqualified items.

p.(1) Subject to the limitations and conditions provided in this section, the provisions of this chapter do not apply to sales of qualified items purchased by an individual between 12:00 a.m.

2 ESHB 2018 (1) Subject to the limitations and conditions provided in this section, the provisions of this chapter do not apply to sales of qualified items with a purchase price of $1,000, or less, purchased by an individual between 12:00 a.m.

(2) TheRules departmentadopted mayby adoptthe rulesdepartment for the administration of this section,section includingmust emergencybe rules.substantially consistent with the streamlined sales and use tax agreement, as used in chapter 82.58 RCW.

These(3) rulesThe mustfollowing bedefinitions consistentapply with the streamlined sales and use tax agreement, to the extent the department considers advisable, so long as the rules are consistent with this section.section:

(3)(a) The"Clothing" definitionsmeans inhuman sectionwearing 2apparel ofsuitable thisfor actgeneral applyuse. to this section.

(b) "Computers and related products" means a computer, as defined in RCW 82.04.215, computer software, as defined in RCW 82.04.215, and computer accessories.

"Computer accessory" means an item relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(c) "Energy star qualified appliances" means appliances to be used in a home environment that meet the United States environmental protection agency energy star program requirements.

(d) "Health care equipment" means durable medical equipment purchased at a retail establishment without a physician's written prescription.

"Durable medical equipment" has the same meaning as in RCW 82.08.0283.

(e) "Individual" means a natural person purchasing the qualified item for personal use and consumption.

An "individual" does not include persons purchasing qualified items for use and consumption by a business or in a business capacity.

(f) "Over-the-counter drug" has the same meaning as in RCW 82.08.0281.

p.

3 HB 2018 (g)(i) "Qualified items" means clothing, certain computers and related products, school supplies, energy star qualified appliances, over-the-counter drugs, and certain health care equipment purchased by an individual.

Each item must be priced at $1,000 or less.

(ii) "Qualified items" does not include motor vehicles, boats, services, construction, tobacco or marijuana products, alcoholic beverages, utilities, travel, or meals.

(h) "School supply item" means an item commonly used by a student in a course of study.

Expenditures from the account may only be made pursuant to section 5 of this act as mitigation payments to local taxing districts impacted by the sales and use tax suspension on certain items pursuant to sections 2 and 3 of this act and based on the estimates in section 5 of this act.