The bill introduces a tax exemption for broadband communications services providers on the purchase of machinery and equipment used in communication networks, effective from January 1, 2024, until January 1, 2035. Specifically, it amends RCW 82.08.02565 and RCW 82.12.02565 to state that the sales tax does not apply to these purchases, with a cap of $40 million per calendar year for each provider. The legislation aims to reduce tax pyramiding during the manufacturing of broadband networks, thereby enhancing industry competitiveness and addressing structural inefficiencies in the tax code.

Additionally, the bill establishes a performance statement to evaluate the effectiveness of these tax exemptions in achieving the intended public policy objectives. The Joint Legislative Audit and Review Committee is tasked with assessing the number of businesses claiming these exemptions and may access relevant data to perform this evaluation. The bill also clarifies definitions related to broadband communications services and the machinery and equipment used in communication networks, ensuring that the exemptions do not apply to certain ineligible persons or specific types of machinery and equipment related to cannabis.

Statutes affected:
Original Bill: 82.08.02565, 82.12.02565