(1) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources the legislature needs information on how a tax incentive is used.

     (2) Each person claiming a tax exemption under RCW 82.04.4266, 82.04.4268, or 82.04.4269 shall report information to the department by filing a complete annual survey. The survey is due by March 31st of the year following any calendar year in which a tax exemption under RCW 82.04.4266, 82.04.4268, or 82.04.4269 is taken. The department may extend the due date for timely filing of annual surveys under this section as provided in RCW 82.32.590. The survey shall include the amount of tax exemption taken. The survey shall also include the following information for employment positions in Washington:

     (a) The number of total employment positions;

     (b) Full-time, part-time, and temporary employment positions as a percent of total employment;

     (c) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and

     (d) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.

     The first survey filed under this subsection shall also include information for the twelve-month period immediately before first use of a tax incentive.

     (3) The department may request additional information necessary to measure the results of the exemption program, to be submitted at the same time as the survey.

     (4) All information collected under this section, except the amount of the tax exemption taken, is deemed taxpayer information under RCW 82.32.330. Information on the amount of tax exemption taken is not subject to the confidentiality provisions of RCW 82.32.330.

     (5) If a person fails to submit an annual survey under subsection (2) of this section by the due date of the survey or any extension under RCW 82.32.590, the department shall declare the amount of taxes exempted for the previous calendar year to be immediately due and payable. The department shall assess interest, but not penalties, on the amounts due under this section. The amount due shall be calculated using a rate of 0.138 percent. The interest shall be assessed at the rate provided for delinquent taxes under this chapter, retroactively to the date the exemption was claimed, and shall accrue until the taxes for which the exemption was claimed are repaid. This information is not subject to the confidentiality provisions of RCW 82.32.330.

     (6) The department shall use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers shall be included in any category. The department shall report these statistics to the legislature each year by September 1st.

     (7) The department shall study the tax exemption authorized in RCW 82.04.4266, 82.04.4268, and 82.04.4269. The department shall submit a report to the finance committee of the house of representatives and the ways and means committee of the senate by December 1, 2011. The report shall measure the effect of the exemption on job creation, job retention, company growth, the movement of firms or the consolidation of firms' operations into the state, and such other factors as the department selects.

[2006 c 354 § 5; 2005 c 513 § 3.]

NOTES:

     Effective dates -- 2006 c 354: See note following RCW 82.04.4268.

     Effective dates -- 2005 c 513: See note following RCW 82.04.4266.