HB 1830 — Clarifying that certain reusable packing materials are exempt from sales and use tax.

H-2236.1H-1966.1 SUBSTITUTE HOUSE BILL 1830 State of Washington 67th Legislature 2022 Regular Session By House Finance (originally sponsored by Representatives Springer, Vick, and Shewmake)Shewmake READPrefiled FIRST01/07/22. TIME 01/31/22.

Read first time 01/10/22.

Referred to Committee on Finance.

and reenacting and amending RCW 82.04.050;82.04.050.

adding a new section to chapter 82.12 RCW;

and providing an effective date.

1 SHBHB 1830 or component of such real or personal property without intervening use by such person;

2 SHBHB 1830 (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and also includes the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;

3 SHBHB 1830 that the sale of and charge made for the furnishing of lodging offered regularly for public occupancy for periods of less than a month constitutes a license to use or enjoy the property subject to sales and use tax and not a rental or lease of property;

4 SHBHB 1830 (A) Separately stated charges for the use of an athletic or fitness facility where such use is primarily for a purpose other than engaging in or receiving instruction in a physical fitness activity;

5 SHBHB 1830 (H) Yoga, chi gong, or martial arts classes, training, or events held at a community center, park, school gymnasium, college or university, hospital or other medical facility, private residence, or any other facility that is not operated within and as part of an athletic or fitness facility.

(c) The term does not include the salerenting of reusable packing materials, including the rental or leaseleasing of suchpacking materials,materials under a packing material sharing and reuse program.

This exclusion applies regardless of the person that retains title to or ends up in p.possession of the packing materials.

6 SHB 1830 possession of the packing materials.

(i)p. "Packing material sharing and reuse program" means a system for sharing reusable packing materials involving more than one person.

(ii)6 "ReusableHB packing1830 materials"(i) means"Packing allmaterial reusablesharing boxes,and crates,reuse pallets,program" bottles,means cans,an bags,agreement drums,with cartons,an andadministrator allor otheroperator reusablethat materialspools usedpacking tomaterials packageamong ormultiple containpersons personalfor property.reuse.

(ii) "Packing materials" means all boxes, crates, pallets, bottles, cans, bags, drums, cartons, wrapping papers, cellophane, twines, gummed tapes, wire, bands, excelsior, wastepaper, and all other materials in which personal property may be contained or protected within a container.

7 SHBHB 1830 "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events.

8 SHBHB 1830 (10) The term does not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of- way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.

9 SHBHB 1830 radioactive waste and other by-products of weapons production and nuclear research and development.

10 SHBHB 1830 (iii) Air hockey, billiards, pool, foosball, darts, shuffleboard, ping pong, and similar games;

11 SHBHB 1830 swimming, and special events like kids night out and pool parties during open swim time, and (B) pool parties for private events, such as birthdays, family gatherings, and employee outings.

12 SHBHB 1830 subsection (15)(a)(xix):

13 SHBHB 1830 by a recipient of either a qualifying grant exempt from tax under RCW 82.04.767 or a grant deductible under RCW 82.04.4339, or by any other person.

NEW SECTION.

Sec.

2.

A new section is added to chapter 82.12 RCW to read as follows:

(1) This chapter does not apply to the use of reusable packing materials that are part of a packing material sharing and reuse program.

(2) For purposes of this section, "packing material sharing and reuse program" and "reusable packing materials" have the same meanings as in RCW 82.04.050(4)(c).

NEW SECTION.

Sec.

3.

This act takes effect July 1, 2022.

14 SHBHB 1830