Below are rule and interpretive statement actions. For information regarding how these rules and interpretive statements may affect you, email us or call 1-800-647-7706.
Also, see more information regarding the Department's rule making process, including rule making currently in progress and how to participate.
Pursuant to
RCW 34.05.330, you have the right to petition the Department to adopt, amend, or repeal any administrative rule. Obtain a
copy of the petition online, or call call 1-800-647-7706. The petition process is governed by the Office of Financial Management (
Chapter 82-05 WAC).
NOTE:
> Click on a month below to see what actions took place during that month.
> Click on an action (link) to see details of that action.
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Rules:
WAC - Washington Administrative Code
Interpretive Statements:
ETA - Excise Tax Advisory
PTA - Property Tax Advisory
IAG - Interim Audit Guideline |
May 2013
March 2013
February 2013
January 2013
December 2012
November 2012
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December 2011
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May 2013
ETA 3174.2013 B&O Tax and Out-of-State Printers
The Department has issued ETA 3174.2013. This ETA explains the Department’s position regarding the business and occupation (B&O) and retail sales tax reporting responsibilities of out-of-state printers selling printed materials in Washington. This ETA does not address publishing activities or the taxability of advertising income.
ETA 3133.2013 Withdrawal of published determinations
The Department of Revenue has re-issued the following Excise Tax Advisory (ETA):
ETA 3133 Withdrawal of published determinations
The Department has re-issued this ETA to announce that it has withdrawn two Determinations:
Det. No. 00-064, 19 WTD 1013. The taxpayer in this determination was a private, for-profit transportation company that provided ride sharing services for persons with special transportation needs (“paratransit services”). It leased paratransit vehicles from a transit authority and requested a refund from PUT under RCW 82.16.047. The determination correctly found that the taxpayer could not claim an exemption from PUT because it was not a qualified paratransit provider. Further, the determination correctly required each provider to separately qualify for the exemption. However, the determination also concluded that the transit authority was not a qualified provider since it was not a public social service agency. This conclusion is in conflict with the findings in Det. No. 97-104R, 17 WTD 59 (1998) and Det. No. 00-064, 19 WTD 1013 (2000) and has caused taxpayers confusion
Det. No., 01-167E, 21 WTD 272. The taxpayer in this determination was a transit authority that provided paratransit services. The determination concluded that a transit authority does not qualify as public social service agency and, therefore, could not claim the PUT exemption under RCW 82.16.047.
These conclusions are in conflict with the findings in Det. No. 97-104R, 17 WTD 59 (1998) and Det. No. 00-064, 19 WTD 1013 (2000) and have caused confusion.
March 2013
WAC 458-18 (3 Rules) Property Tax - Abatements, credits, deferrals and refunds
Rules from Chapter 458-18 WAC amended:
· WAC 458-18-010 Deferral of special assessments and/or property taxes -- Definitions. This section provides definitions of the terms most frequently used to administer the deferral program for special assessments and/or property taxes created by chapter 84.38 RCW.
· WAC 458-18-030 Deferral of special assessments and/or property taxes -- Declarations to defer — Filing — Forms.
This section explains the due date for filing the declaration to defer as well as the contents of the form.
· WAC 458-18-080 Deferral of special assessments and/or property taxes -- Duties of the department of revenue – State treasurer. This section explains the Department and State Treasurer’s responsibilities under the deferral program.
WAC 458-18A (4 Rules) Property Tax - Limited Income Deferral Program
Rules from Chapter 458-18A WAC amended:
· WAC 458-18A-010 Deferral of special assessments and/or property taxes -- Definitions. This section provides definitions of the terms most frequently used to administer the deferral program for special assessments and/or property taxes on residential housing created by chapter 84.37 RCW.
· WAC 458-18A-020 Deferral of special assessments and/or property taxes -- Qualifications for deferral. This section explains the qualification under which a person may defer payment of the second installment portion of special assessments and/or real property taxes included on the annual property tax statement and due on October 31 in any year.
· WAC 458-18A-060 Deferral of special assessments and/or property taxes -- Limitations of deferral – Interest. This section explains the limitation to the deferral program when liens created by the deferrals of special assessments and/or real property taxes equal or exceed forty percent of the claimant's equity value in said property.
· WAC 458-18A-080 Deferral of special assessments and/or property taxes -- Duties of the department of revenue -- State treasurer. This section explains various duties of the Department of Revenue and State Treasurer relating to the administration of the deferral program.
WAC 458-16A (4 Rules) Property Tax - Exemptions-Homes for the aging, Senior citizens and disabled persons
Rules from Chapter 458-16A WAC amended:
· WAC 458-16A-100 Senior citizen, disabled person, and one hundred percent disabled veteran exemption --
Definitions. This section contains definitions of the terms used for the senior citizen, disabled person, and one hundred percent disabled veteran exemption from property taxes contained in sections RCW 84.36.381 through 84.36.389.
· WAC 458-16A-135 Senior citizen, disabled person, and one hundred percent disabled veteran exemption – Application procedures. This section explains when and how a senior citizen, disabled person, or one hundred percent disabled veteran may apply for a property tax exemption on that person's principal residence. RCW 84.36.381 through 84.36.389.
· WAC 458-16A-140 Senior citizen, disabled person, and one hundred percent disabled veteran exemption – Exemption described -- Exemption granted -- Exemption denied -- Freezing property values. This section explains how county assessors process a claimant's application form for the senior citizen, disabled person, or one hundred percent disabled veteran property tax exemption. The rule describes the exemption and what happens when the exemption is granted or denied by the assessor.
· WAC 458-16A-150 Senior citizen, disabled person, and one hundred percent disabled veteran exemption --
Requirements for keeping the exemption. This section explains how and when a senior citizen, disabled person, or one hundred percent disabled veteran must file additional reports with the county assessor to keep the senior citizen, disabled person, or one hundred percent disabled veteran property tax exemption. This section also explains what happens when the claimant or the property no longer qualifies for the full exemption.
February 2013
WAC 458-20-162 Stockbrokers and security houses
WAC 458-20-162 (Rule 162) explains the business and occupation (B&O) tax-reporting responsibilities of stockbrokers and security houses. The Department amended Rule 162 to recognize that stock brokers and security houses engaging in business in multiple states must apportion income for purposes of determining their B&O tax reporting responsibilities. For periods on and after June 1, 2010, the rule refers readers to WAC 458-20-19402 Single factor receipts apportionment – Generally. For periods prior to June 1, 2010, the rule refers readers to WAC 458-20-194 Doing business inside and outside the state.
WAC 458-20-155/15501/15502/15503 Computer Hardware, Software, and Digital Products
The Department engaged in this rule making to amend WAC 458-20-15501, and adopt two new rules (WAC 458-20-15502 and 15503) to explain the impacts of 2009 and 2010 legislation, and to address other tax issues related to computer hardware, computer software, and computer services below. WAC 458-20-155 is being repealed.
- Chapter 535, Laws of 2009 (ESHB 2075), made major changes to the taxation of certain products and services provided or furnished electronically (commonly referred to as "digital products"). This legislation specifically imposed sales and use tax on digital products such as: Digital goods, including digital audio works, digital audio-visual works, and digital books; digital automated services; digital codes used to obtain digital goods or digital automated services; and remote-access software. The legislation also provided a number of sales and use tax exemptions.
- Chapter 111, Laws of 2010 (SHB 2620), clarified ambiguities and corrected unintended consequences related to the 2009 legislation.
January 2013
ETA 3173.2013 Distributor Discounts/Allowances to Grocery Stores
WAC 458-20-108 explains that a bona fide discount may be deducted from gross proceeds of sales for determining tax liability. The Department has issued ETA 3173 to clarify for taxpayers whether a discount is a bona fide discount. The Department’s long standing position has been that a discount is bona fide if it is not in exchange for a service or benefit. The Department has also issued ETA 3173 to provide examples of the types of documentation and activities that would qualify as bona fide discounts.
ETA 3151.2013 Taxable Transactions by Aircraft Dealers
The Department of Revenue has revised Excise Tax Advisory (ETA) 3151. This advisory explains how certain transactions by aircraft dealers are taxable.
Example 4 of the ETA incorrectly stated that the portion of monthly rental charges attributable to out-of-state use by the lessee can be deducted from the measure of tax. This information is out of date and incorrect. RCW 82.32.730 provides that tax is imposed on the entire rental or lease charge, based on the primary property location, and is not altered by intermittent use of the property at different locations.
December 2012
WAC 458-40-540 Forest land values
WAC 458-40-660 Timber excise tax-Stumpage value tables-Stumpage value adjustments
WAC 458-40-540 contains the forest land values, which must be adjusted annually by a statutory formula contained in RCW 84.33.140(3). This rule has been amended to provide county assessors with forest land values for the 2013 assessment year.
WAC 458-40-660 contains the stumpage values used by harvesters of timber to calculate the timber excise tax. This rule is being revised to provide the stumpage values to be used during the first half of 2013.
WAC 458-18-220 Refunds-Rate of interest
WAC 458-30-262 Agricultural land valuation-Interest rate-Property tax component provides
WAC 458-30-590 Rate of inflation-Publication-Interest rate-Calculation
- WAC 458-18-220 Refunds—Rate of interest provides the rate of interest that applies to tax refunds made pursuant to RCW 84.69.010 through 84.69.090 in accordance with RCW 84.69.100, and also to judgments entered in favor of the plaintiff pursuant to RCW 84.68.030. This rule has been amended to provide the rate of interest to be used when refunding property taxes paid in 2013.
- WAC 458-30-262 Agricultural land valuation--Interest rate—Property tax component provides the interest rate and the property tax component used to value farm and agricultural lands classified under chapter 84.34 RCW (Open Space Program). This rule has been amended to provide the interest rate and property tax component to be used when valuing classified farm and agricultural land during the 2013 assessment year.
- WAC 458-30-590 Rate of inflation—Publication--Interest rate—Calculation provides the rate of inflation used to calculate interest on deferred special benefit assessments when farm and agricultural or timber land is removed or withdrawn from classification under chapter 84.34 RCW (Open Space Program). This rule has been amended to provide the rate of inflation used in calculating interest for deferred special benefit assessments of land removed or withdrawn during 2013.
November 2012
WAC 458-20-10003 Brief adjudicative proceedings for matters related to suspension, non-renewal, and non-issuance of licenses to sell spirits
Chapter 39, Laws of 2012, (HB 2758) changed the Department of Revenue's (Department) ability to collect spirits taxes imposed under RCW 82.08.150 by authorizing it to request that the Washington State Liquor Control Board suspend, not renew, or not issue licenses to sell spirits in Washington for delinquency in reporting or remitting spirits taxes after Department notice to a taxpayer.
The Department is now adopting a new rule, WAC 458-20-10003 Brief adjudicative proceedings for matters related to suspension, non-renewal, and non-issuance of licenses to sell spirits, to establish brief adjudicative proceedings for review of the Department’s notice prior to any Department request for suspension, nonrenewal, or non-issuance consistent with HB 2758.
October 2012
ETA 3172.2012 Contests of Chance
RCW 82.04.285 imposes a B&O tax on the gross income from “contests of chance.” The Washington State Gambling Commission regulates the operations of “contests of chance” under chapter 9.46 RCW. The Department has issued ETA 3172 to explain that the Department applies RCW 82.04.285’s definition of “contests of chance” consistent with the Gambling Commission’s regulation of contests of chance.
PTA 1.1.2009 Specific Questions Related to Administration of Property Taxes under I-695
The Department of Revenue has cancelled Property Tax Advisory 1.1.2009 (PTA 1.1). This advisory provides guidance on specific property tax questions the Department received in regards to implications of Initiative 695. This information is no longer needed because I-695 was ruled unconstitutional.
September 2012
WAC 458-20-19402 Single factor receipts apportionment-generally
Chapter 23, Laws of 2010 1st sp. sess. changed the apportionment requirements for apportionable activities, effective June 1, 2010. The Department had previously adopted emergency rules while it worked with stakeholders to develop permanent rules explaining the implications of this legislation.
The Department is at this time adopting a new permanent rule WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally. This rule provides general guidance on single factor receipts apportionment, how to attribute receipts, how to determine the receipts factor, and computing Washington taxable income.
WAC 458-20-19403 Apportionable royalty receipts attribution
Chapter 23, Laws of 2010 1st sp. sess. changed the apportionment requirements for apportionable activities, effective June 1, 2010. The Department had previously adopted emergency rules while it worked with stakeholders to develop permanent rules explaining the implications of this legislation.
The Department is at this time adopting a new permanent rule WAC 458-20-19403 (Rule 19403) Apportionable royalty receipts attribution. This rule explains how to attribute apportionable royalty receipts.
WAC 458-20-19404 Financial institutions-Income apportionment
Effective June 1, 2010, chapter 23, Laws of 2010 1st sp. sess. changed Washington's method of apportioning certain gross income from engaging in business as a financial institution. RCW 82.04.460 requires to based on the Model regulation for the apportionment of income of financial institutions adopted by the Multistate Tax Commission (MTC).
The Department had previously adopted emergency rules while it worked with stakeholders to develop a permanent WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment to explain the implications of this legislation for financial institutions. The Department is at this time adopting a permanent Rule 19404 to address how such gross income must be apportioned when a financial institution engages in business both within and outside the state.
ETA 3133.2012 Withdrawal of published determinations
The Department has re-issued this ETA to announce that it has withdrawn Det. No. 92-231, 12 WTD 233. The taxpayer in this determination created gift baskets that contained various individually wrapped food items. The determination correctly reached a conclusion that this activity was not manufacturing. However, WAC 458-20-136 (Manufacturing, processing for hire, fabricating.) was subsequently amended to clarify various factors that the Department considers in determining whether an activity such as creating gift baskets is manufacturing. The determination does not address these factors and has caused confusion.
July 2012
WAC 458-20-273 Renewable Energy System Cost Recovery
WAC 458-20-273 (Rule 273) explains the cost recovery incentive program for renewable energy systems. Rule 273 is amended to provide appeal rights to a determination by the Department of Revenue regarding a: (1) revocation or denial of approval to certify a renewable energy system for eligibility in the incentive payment program or (2) revocation or denial of approval to certify a module, inverter, or blade as manufactured in Washington state for purposes of increased factors in calculating the amount of incentive payments. There are no changes from the previous emergency rule filed April 5, 2012 under WRS 12-09-002.
June 2012
WAC 458-20-270 Telephone program excise tax rates
The Department is amending WAC 458-20-270 to recognize the tax rates effective July 1, 2012. The TRS rate is being reduced from 19 cents to 17 cents per switched access line for the upcoming fiscal year. The WTAP rate remains at 14 cents per switched access line for the upcoming fiscal year. These rates were previously announced by the Department in a special notice dated April 5, 2012 and can be found at:
WAC 458-40-660 Timber excise tax -- Stumpage value tables -- Stumpage value adjustments;
WAC 458-40-610 Timber excise tax -- Definitions;
WAC 458-40-640 Timber excise tax -- Stumpage value area (map);
WAC 458-40-650 Timber excise tax -- Timber quality codes defined; and
WAC 458-40-680 Timber excise tax -- Volume harvested -- Approved scaling and grading methods -- Sample scaling -- Conversion
RCW 84.33.091 requires the Department to revise the stumpage value tables every six months. The Department establishes stumpage value tables to apprise timber harvesters of the timber values used to calculate the timber excise tax. The updated values in WAC 458-40-660 apply to the 2nd half of 2012. The updating of stumpage values for this time period required the consolidation of stumpage value areas (SVAs), which will result in the elimination of other SVAs, changes to some log quality codes, and definition changes. As a result, other rules in chapter 458-40 WAC were amended to recognize these changes.
WAC 458-20-19402 Single factor receipts apportionment -- Generally;
WAC 458-20-19403 Single factor receipts apportionment -- Royalties; and
WAC 458-20-19404 Financial institutions -- Income apportionment
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus
requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules
to explain how these requirements apply:
- WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally
- WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties
- WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment
May 2012
WAC 458-20-212 Insurance adjusters; and
WAC 458-20-164 Insurance producers, adjusters - Title insurance agents - Surplus line brokers
The Department has amended WAC AC 458-20-164 (Rule 164) Insurance producers, adjusters – Title insurance agents –
Surplus line brokers to update information currently provided in the rule. The amended Rule 164:
- Recognizes legislation changing terms from “insurance agents, brokers, or solicitors” to “insurance producers,” and the
addition of “title insurance agents” in chapter 82.04 RCW (chapter 217, Laws of 2008);
- Includes language recognizing economic nexus;
- Includes language regarding to “surplus line brokers” (chapter 162, Laws of 2009);
- Includes a new subsection providing tax information for insurance adjusters, which is currently addressed in Rule 212.
Rule 212 is, as a result, being repealed;
- Does not include portions of previous subsection (5) Special classification for certain managing general agents as that
information is no longer needed. These taxpayers report under the “Insurance producers, title insurance agents, or
surplus line broker commissions” B&O tax classification;
- Includes a new subsection covering purchases subject to retail sales or use tax; and
- Includes examples and subsection headings to provide information to readers in a more useful manner.
WAC 458-20-10202 Brief adjudicative proceedings for matters related to reseller permits is to explain the procedure and process pertaining to the brief adjudicative proceedings pursuant to chapter 34.05 RCW, the Administrative Procedure Act, as they relate to reseller permits.
The Department is amending Rule 10202 to adopt the brief adjudicative proceedings for the following:
- A determination of whether a reseller permit should be revoked using the criteria per RCW 82.32.780 and WAC 458-
20-102 (Rule 102) Reseller permits; and
- On the administrative appeal of an initial order revoking a taxpayer’s reseller permit, a determination as to whether
the Department’s order revoking the permit was correctly based on the criteria as set forth in RCW 82.32.780 and
Rule 102.
ETA 3043.2012 Low-Density Light and Power Utility Deduction
The Department of Revenue has revised Excise Tax Advisory 3043 (ETA 3043). This advisory explains the public utility tax deduction provided by RCW 82.16.053 to qualifying power and light businesses.
April 2012
ETA 3171.2012 Taxation of Dark Fiber (unlit fiber optic cable)
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3171.2012 Taxation of Dark Fiber (unlit fiber optic cable)
This ETA provides business and occupation tax and retail sales tax guidance for the taxation of “dark fiber” used in telecommunications services.
WAC 458-20-273 Renewable Energy System Cost Recovery
WAC 458-20-273 (Rule 273) explains the cost recovery incentive program for renewable energy systems. Rule 273 is amended to provide appeal rights to a determination by the Department of Revenue regarding a: (1) revocation or denial of approval to certify a renewable energy system for eligibility in the incentive payment program or (2) revocation or denial of approval to certify a module, inverter, or blade as manufactured in Washington state for purposes of increased factors in calculating the amount of incentive payments. There are no changes from the previous emergency rule filed August 12, 2011 under WRS 11-17-053.
March 2012
PTA 4.3.2012 Specific Question Pertaining to the Administration and Qualification of the Land on which Residence is Sited for Property Classified as Farm and Agricultural Land Under Chapter 84.34 RCW.
This announcement of the adoption of this interpretive statement is being published in the Washington State Register pursuant to the requirements of RCW 34.05.230(4).
The Department of Revenue has revised the Property Tax Advisory (PTA) 4.2.2009 Specific Question Pertaining to the Administration and Qualification of the Land on which Residence is Sited for Property Classified as Farm and Agricultural Land Under Chapter
84.34 RCW.
This advisory was revised to correct statutory references and language which changed in 2009 due to the passage of EHB 1815. All references to RCW 84.34.020(2)(e) were corrected to RCW 84.34.020(2)(f) and language was added to clarify the treatment of parcels at least five acres but less than 20 acres if a homesite is no longer eligible for the farm and agricultural land classification.
WAC 458-30-200 Definitions (Open Space Taxation Act Rules) provides definitions for the terms used in conjunction with land classified under the Open Space Taxation Act, codified as chapter 84.34 RCW.
The Department has amended WAC 458-30-200 to recognize and incorporate legislation from recent years:
- SSB 5359 (2011), which amended the definition of “contiguous” land;
- E2SHB 1597 (2010), which made technical and administrative corrections;
- EHB 1815 (2009), which amended provisions related to the income or investment requirements for parcels of “farm and
agricultural land” between five and twenty acres; and
- SHB 1733 (2009), which amended provisions relating to land used primarily for equestrian related activities for which a
charge is made.
WAC 458-20-119 Sales by caterers and food service contractors; and
WAC 458-20-124 Restaurants, cocktail bars, taverns and similar businesses
The Department amended WAC 458-20-119 (Rule 119) and 124 (Rule 124) to recognize chapter 55, Laws of 2011 (SB
5501), which provides a B&O, retail sales, and use tax exemption for meals provided without specific charge to employees
of restaurants. Amended Rule 124 incorporates this legislation, and amended Rule 119 refers readers to Rule 124 for
guidance on this subject.
Also removed from Rule 119 was other tax-reporting information that is addressed in other documents. For example, Rule
119 provided tax reporting information regarding sales of meals in school, college, and university dining rooms and by
hospitals, nursing homes, and other similar institutions. Tax reporting guidance for these sales can be found in WAC 458-20-
167 Educational institutions, school district, student organizations, and private schools and WAC 458-20-168 Hospitals,
nursing homes, boarding homes, adult family homes and similar health care facilities. The Department has changed the title
for Rule 119 from Sales of meals to Sales by caterers and food service contractors to more accurately reflect the information
retained in the rule.
February 2012
WAC 458-20-10101 Business licensing service - Total fee payable - Handling fees
SHB 2017, Chapter 298, Laws of 2011, transferred responsibility for the master license service (MLS) program from the Department of Licensing to the Department of Revenue, effective July 1, 2011. This program is now referred to as the business licensing service (BLS).
This legislation requires that the application and renewal handling fees be established by rule. The Department adopted a permanent rule providing these rules, WAC 308-300-160 on January 30, 2012 (WSR 12-04-060). This rule becomes effective March 1, 2012, and at that time will be re-codified as WAC 458-20-10101. The Department is at this time adopting the rule as an emergency rule to provide the handling fees during the interim period.
January 2012
WAC 458-20-10101 Business licensing service - Total fee payable - Handling fees
SHB 2017, Chapter 298, Laws of 2011, transferred responsibility for the master license service (MLS) program
from the Department of Licensing to the Department of Revenue, effective July 1, 2011. This program is now referred to as
the business licensing service (BLS).
This legislation requires that the application and renewal handling fees be established by rule. The Department previously
adopted an emergency WAC 308-300-160 to establish these fees. The Department is now adopting a permanent WAC 308-
300-160, and re-codifying the rule as WAC 458-20-10101. The fee amounts are the same as reflected in the emergency
rule.
WAC 458-20-19402 Single factor receipts apportionment -- Generally;
WAC 458-20-19403 Single factor receipts apportionment -- Royalties; and
WAC 458-20-19404 Financial institutions -- Income apportionment
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus
requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules
to explain how these requirements apply:
- WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally
- WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties
- WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment
ETA 3170.2012 Sales Tax Sourcing for Installed Manufactured and Modular Homes
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3170.2012 Sales Tax Sourcing for Installed Manufactured and Modular Homes
This ETA provides guidance regarding the sourcing, for retail sales tax when a dealer/seller is responsible for installation of a manufactured or modular home on a home site.
December 2011
WAC 458-20-273 Renewable Energy System Cost Recovery
WAC 458-20-273 (Rule 273) explains the cost recovery incentive program for renewable energy systems. Rule 273 is amended to provide appeal rights to a determination by the Department of Revenue regarding a: (1) revocation or denial of approval to certify a renewable energy system for eligibility in the incentive payment program or (2) revocation or denial of approval to certify a module, inverter, or blade as manufactured in Washington state for purposes of increased factors in calculating the amount of incentive payments. There are no changes from the previous emergency rule filed August 12, 2011 under WRS 11-17-053.
WAC 458-20-12401 Special stadium sales and use tax
WAC 458-20-12401 (Rule 12401) Special stadium sales and use tax explains the special stadium sales and use tax. It explains the tax applies to retail sales of food and beverages by restaurants, taverns, and bars in counties with a population of one million or more.
The Department amended Rule 12401 to recognize that the special stadium sales and use tax does not apply to sales of food and beverages by restaurants, taverns, and bars located in King County after September 30, 2011. The purpose of this tax was to pay off the debt service on bonds issued to support the construction of Safeco Field.
WAC 458-20-244 Food and Food ingredients
WAC 458-20-244 (Rule 244) Food and food ingredients provides guidelines for determining if food or food ingredients qualify for retail sales tax and use tax exemptions provided by RCW 82.08.0293 and 82.12.0293.
The Department amended Rule 244 to recognize Initiative 1107, passed by the voters in November 2010 and codified as chapter 2, Laws of 2011. Initiative 1107, in part, repealed the retail sales tax imposed on sales of bottled water and candy by chapter 23, Laws of 2010, 1st Special Session. Additionally, the subsection explaining the Supplemental Nutrition Assistance Program was updated to remove references to the Food Stamp Act of 1977, stamps, and coupons. The term “benefits” is now used in lieu of “stamps” or “coupons.”
WAC 458-18-220 Refunds-Rate of interest
WAC 458-30-262 Agricultural land valuation-Interest rate-Property tax component
WAC 458-30-590 Rate of inflation-Publication-Interest rate-Calculation
- WAC 458-18-220 Refunds—Rate of interest provides the rate of interest that applies to tax refunds made pursuant to RCW 84.69.010 through 84.69.090 in accordance with RCW 84.69.100, and also to judgments entered in favor of the plaintiff pursuant to RCW 84.68.030. This rule has been amended to provide the rate of interest to be used when refunding property taxes paid in 2012.
- WAC 458-30-262 Agricultural land valuation--Interest rate—Property tax component provides the interest rate and the property tax component used to value farm and agricultural lands classified under chapter 84.34 RCW (Open Space Program). This rule has been amended to provide the interest rate and property tax component to be used when valuing classified farm and agricultural land during the 2012 assessment year.
- WAC 458-30-590 Rate of inflation—Publication--Interest rate—Calculation provides the rate of inflation used to calculate interest on deferred special benefit assessments when farm and agricultural or timber land is removed or withdrawn from classification under chapter 84.34 RCW (Open Space Program). This rule has been amended to provide the rate of inflation used in calculating interest for deferred special benefit assessments of land removed or withdrawn during 2012.
WAC 458-40-540 Forestland values-2012
WAC 458-40-660 Timber excise tax-Stumpage value tables-Stumpage value adjustments
WAC 458-40-540 contains the forest land values, which must be adjusted annually by a statutory formula contained in RCW 84.33.140(3). This rule has been amended to provide county assessors with forest land values for the 2012 assessment year.
WAC 458-40-660 contains the stumpage values used by harvesters of timber to calculate the timber excise tax. This rule is being revised to provide the stumpage values to be used during the first half of 2012.
ETA 3169.2011 Sourcing Wholesale Sales of Non-Mobile Telecommunications Services
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3169.2011 Sourcing Wholesale Sales of Non-Mobile Telecommunications Services
This ETA provides guidance regarding the sourcing, for B&O tax purposes, of gross proceeds received for wholesale telecommunications services (other than mobile telecommunications services).
October 2011
WAC 308-300-160 Total fee payable--Handling of fees
WAC 308-300-160 Total fee payable—Handling of fees establishes the amount of application and renewal handling fees charged by the Master License Service (often referred to as the “Business License Service”).
SB 2017, Chapter 298, Laws of 2011, transferred responsibility for Master Licensing Service rules from the Department of Licensing to the Department of Revenue, effective July 1, 2011. This legislation requires that the application and renewal handling fees be established by rule.
This is the 2nd adoption of an emergency WAC 308-300-160. The fee amounts are the same as reflected in the first emergency rule, filed on June 15, 2011. The Department is in the rule making process to adopt a permanent rule, which will be recodified in chapter 458-20 WAC.
ETA 3024.2011 Public Works Contracts
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3024.2011 Public Works Contracts
This ETA provides guidance regarding retail sales tax and retainages for public works. The Department has updated the ETA to recognize provisions of HB 1384. This legislation excludes from retainage requirements those public road improvement contracts funded in whole or in part by federal transportation funds.
WAC 458-20-19402 Single factor receipts apportionment -- Generally;
WAC 458-20-19403 Single factor receipts apportionment -- Royalties; and
WAC 458-20-19404 Financial institutions -- Income apportionment
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus
requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules
to explain how these requirements apply:
- WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally
- WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties
- WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment
WAC 458-20-244 Food and food ingredients
The Department is proposing to amend WAC 458-20-244 to recognize Initiative 1107, passed by the voters in November
2010 and codified as chapter 2 Laws of 2011. This initiative, in part, repeals the retail sales tax imposed on sales of
bottled water and candy by chapter 23, Laws of 2010, 1st Special Session. Effective December 2, 2010, bottled water and
candy are again exempt from retail sales and use taxes.
WAC 458-20-12401 Special stadium sales and use tax
The Department is proposing to amend WAC 458-20-12401 to recognize that the special stadium sales and use does not
apply to sales of food and beverages by restaurants, taverns, and bars located in King County after September 30, 2011.
The purpose of this tax was to pay off the debt service on bonds issued to support the construction of Safeco Field.
September 2011
WAC 458-20-19401 Minimum nexus thresholds for apportionable activities
Part I of Chapter 23, 2010 Laws, 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted emergency rules to explain how this legislation applies while it engaged in rule making for permanent rules.
The Department is at this time adopting WAC 458-20-19401 (Rule 19401) Minimum nexus thresholds for apportionable activities. Rule making continues for the following rules:
- WAC 458-20-19402 – Single factor sales receipts apportionment – Generally
- WAC 458-20-19403 – Single factor sales receipts apportionment - Royalties
- WAC 458-20-19404 – Financial institutions – Income apportionment
August 2011
WAC 458-61A-100 Real estate excise tax-Overeview;
WAC 458-61A-101 Taxability of the transfer or acquisition of the controlling interest of an entity with an interest in real property located in this state;
WAC 458-61A-102 Definitions;
WAC 458-61A-107 Option to purchase; and
WAC 458-61A-301 Payment of tax, collection responsiblity, audit responsibility, and tax rulings
The Department has amended these rules to recognize provisions of 2ESSB 6143, Part II Tax Avoidance Transactions, sections 207-213. The rule amendments include the following legislative changes and clarifications:
- the date on which an option agreement is executed is the date on which the transfer or acquisition of a controlling interest pursuant to the option is deemed to occur, for the purpose of determining whether a controlling interest was transferred or acquired within a 12-month period;
- the Department may collect REET on the transfer or acquisition of a controlling interest in a corporation from either the corporation or the buyer, or, if the corporation is not publicly traded, from the seller;
- a parent corporation of a wholly-owned subsidiary is responsible for REET if the subsidiary transfers real property to a third party and then dissolves before payment of the tax;
- providing notice to the Department within 30 days of a sale no longer exempts a buyer from liability for REET that has not been paid by the seller; and
- a lien for any unpaid REET attaches to each parcel of property in this state owned by an entity in which a controlling interest has been transferred.
WAC 458-61A-102 has also been amended to direct readers to chapter 26.60 RCW for the definition of “domestic partner” to recognize the change made by chapter HB 1649 (chapter 9, Laws of 2011).
WAC 458-20-273 Renewable Energy System Cost Recovery
WAC 458-20-273 (Rule 273) explains the cost recovery incentive program for renewable energy systems. Rule 273 is amended to provide appeal rights to a determination by the Department of Revenue regarding a: (1) revocation or denial of approval to certify a renewable energy system for eligibility in the incentive payment program or (2) revocation or denial of approval to certify a module, inverter, or blade as manufactured in Washington state for purposes of increased factors in calculating the amount of incentive payments.
WAC 458-20-10001 Adjudicative proceedings-Brief adjudicative proceedings-Certificate of registration (tax registration endorsement) revocation
WAC 458-20-10001 (Rule 10001) explains the Department’s adjudicative proceedings pursuant to chapter 34.05 RCW, the Administrative Procedure Act, for actions involving revocation of a certificate of registration (tax registration endorsement).
The Department has updated the telephone phone and fax numbers provided in this rule as the means by which a person may file a petition for review of an initial order. This petition must be made within 21 days after service of the initial order is received by the person.
ETA 3168.2011 Meal Assembly Kitchens
This ETA provides guidance regarding the B&O and retail sales tax reporting responsibilities of businesses that provide menu options, purchase ingredients, and prepare the ingredients for assembly. It addresses “meal assembly kitchens” that allow customers to assemble their own entrées, and those that assemble entrées selected by the customer.
ETA 3054.2011 Sales to residents of states or possessions of the U.S., and territories or provinces of Canada, that do not impose a tax of at least three percent
RCW 82.08.0273 provides an exemption from the retail sales tax to certain nonresidents of Washington for purchases of tangible personal property, digital goods, and digital codes, for use outside this state. This ETA has been updated to explain that the exemption is available only to residents of states other than Washington, United States possessions, or Canadian territories or provinces that do not impose or have imposed on its behalf, a generally applicable retail sales tax, use tax, value added tax, gross receipts tax on retailing activities, or similar generally applicable tax of three percent or more. See SB5763 (chapter 7, Laws of 2011).
PTA 6.2.2011 Property Taxability of Motor Vehicles
This announcement of the adoption of this interpretive statement is being published in the Washington State Register pursuant to the requirements of RCW 34.05.230(4).
The Department of Revenue has revised Property Tax Advisory (PTA) 6.1.2009 Property Taxability of Motor Vehicles
This advisory has been revised to recognize chapter 161, Laws of 2010 (SB 6379), which took effect on July 1, 2011. Most notably, the legislation includes a new definition for “fixed load vehicle” that is now provided in RCW 46.04.186.
PTA 12.2.2011 Classification of Land Used for Christmas Tree Production
This announcement of the adoption of this interpretive statement is being published in the Washington State Register pursuant to the requirements of RCW 34.05.230(4).
The Department of Revenue has revised the Property Tax Advisory (PTA) 12.1.2009 Classification of Land Used for Christmas Tree Production.
This advisory has been revised to remove the definition of “contiguous” because it is no longer accurate as a result of chapter 101, Laws of 2011 (SSB 5359).
July 2011
ETA 3167.2011 Taxability of Fees Charged for Amusement and Recreation Services
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3167.2011 Taxability of Fees Charged for Amusement and Recreation Services
Charges for amusement and recreation services provided to a consumer are subject to retail sales tax under RCW 82.04.050. This Excise Tax Advisory (ETA) clarifies the distinction between nontaxable charges and taxable charges often associated with sport activities and sporting events, such as:
- Basketball, football, hockey, and soccer leagues;
- Cycling, running, swimming, and triathlon events; and
- Baseball, golf, softball, and tennis tournaments
June 2011
ETA 3043.2011 Low-density light and power utility deduction
The Department of Revenue has revised Excise Tax Advisory 3043 (ETA 3043). This advisory explains the public utility tax deduction provided by RCW 82.16.053 to qualifying power and light businesses.
RCW 82.16.053 requires that the Department determine the state average electric power rate each year and inform taxpayers of this rate. This rate is used by the power and light business to compute the amount of the deduction. The revised ETA 3043 updates the information to provide the rate to be used for the period of July 2011 through June 2012.
ETA 3166.2011 5% Substantial Underpayment Penalty May Apply to Non-Qualifying Purchaes under the Deferral Program
The Department issued the Excise Tax Advisory (ETA) 3166.2011 5% Substantial Underpayment Penalty May Apply to Non-Qualifying Purchases under the Deferral Programs. This ETA clarifies when the 5% substantial underpayment penalty imposed by RCW 82.32.090(2) applies to tax assessed on purchases made under the following Washington retail sales and use tax deferral programs:
- High Technology under chapter 82.63 RCW;
- Fruit and Vegetable Processors under chapter 82.74 RCW;
- Biotech Manufacturing under chapter 82.75 RCW; and
- Corporate Headquarter under chapter 82.82 RCW.
WAC 458-20-270 Telephone program excise tax rates
Under RCW 43.20A.725 and 80.36.430, the Department is required to annually determine the tax rates imposed on switched access lines to fund the telephone relay service program and the Washington telephone assistance program. The Telecommunications Relay Services (TRS) and Washington Telephone Assistance Program (WTAP) tax rates are determined by dividing the respective program budgets by the number of switched access lines reported to the Department in the prior calendar year. The Department retains no discretion in the determination of these tax rates, the amount of which is explicitly dictated by the statutory formulas and inputs provided to the Department.
The Department is amending WAC 458-20-270 to recognize the tax rates effective July 1, 2011. The TRS rate remains at 19 cents per switched access line for the upcoming fiscal year. The WTAP rate remains at 14 cents per switched access line for the upcoming fiscal year. These rates were previously announced by the Department in a special notice dated March 24, 2011 and can be found at http://dor.wa.gov/Docs/Pubs/SpecialNotices/2011/sn_TelephoneTax.pdf.
WAC 458-40-660 Timber excise tax-Stumpage values
RCW 84.33.091 requires the Department to revise the stumpage value tables every six months. The Department establishes stumpage value tables to apprise timber harvesters of the timber values used to calculate the timber excise tax. WAC 458-40-660 is being amended to provide the stumpage values to be used during the 2nd half of 2011.
ETA 9001.2011 Digital Products-General Implementation
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 9001.2011 Digital Products – General Implementation
ETA 9001.2009 was issued on July 24, 2009, to explain the Department’s initial phased process for implementing chapter 535, Laws of 2009 (ESHB 2075). The Department has reissued ETA 9001 to explain that the phased implementation process ends June 30, 2011. This ETA also explains how to submit a “digital products” letter ruling request to the Department.
May 2011
ETA 3161.2011 Apportionment of Income by Stockbrokers and Security Houses
The Department issued the following Excise Tax Advisory:
ETA 3161.2011 Apportionment of Income by Stockbrokers and Security Houses. This Excise Tax Advisory (ETA) explains how stockbrokers and security houses should apportion their income for B&O tax purposes. It discusses when and under what circumstances single factor receipts formula, cost apportionment, and the “60/40 convention” methods of apportionment apply.
ETA 3159.2011 Internet Protocol (IP) enabled telecommunications service taxability, sourcing, and allocation
The Department of Revenue has issued the following Excise Tax Advisory (ETA):
ETA 3159.2011 Internet Protocol (IP) enabled telecommunications service taxability, sourcing, and allocation.
This ETA addresses the taxability, sourcing, and apportionment of telecommunications services using Voice over Internet Protocol (“VoIP”) and Fax over Internet Protocol (“FoIP”) technologies under Washington’s retail sales tax and retailing B&O tax. It also clarifies that these types of telecommunications services are not currently exempt as local services under RCW 82.08.0289.
With respect to sourcing and allocation, the ETA is limited to those telecommunications services sold on either a call-by-call basis or on an other than call-by-call basis.
458-20-102 Reseller permits
458-20-102A Resale certificates
The Department is amending WAC 458-20-102 (Rule 102) to explain the reseller permit program. SB 6173 (Chapter 563, Laws of 2009) replaced the “resale certificate” with a “reseller permit” as the primary means by which to document a wholesale purchase. SHB 2458 (Chapter 112, Laws of 2010) clarified and made changes to the reseller permit program. The reseller permit is issued by the Department, whereas the resale certificate was a form that any buyer could download and complete.
Information explaining the use of resale certificates was removed from Rule 102 and incorporated it into the new WAC 458-20-102A (Rule 102A). This information will be needed until the normal limitation periods for assessment and refunds expire.
458-20-19401 Minimum nexus thresholds for apportionable activities
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rule to explain how these requirements apply:
- WAC 458-20-19401 (Rule 19401) Minimum nexus thresholds for apportionable activities
Changes from the previous emergency rule filed January 28, 2011 under WSR 11-04-068 were made as follows:
- Rule 19401 – Changes to same language as proposed final rule. These changes include formatting, adding examples, clarifying language, and additional details.
458-20-19402 Single factor receipts apportionment - Generally
458-20-19403 Single factor receipts apportionment - Royalties
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules to explain how these requirements apply:
- WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally
- WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties
Changes from the previous emergency rule filed January 28, 2011 under WSR 11-04-068 were made as follows:
- Rule 19402 –No changes
- Rule 19403 – No changes
458-20-19404 Financial institutions - Income apportionment
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rule to explain how these requirements apply:
- WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment
Changes from the previous emergency rule filed January 28, 2011 under WSR 11-04-068 were made as follows:
- Rule 19404 – Changes to same language as proposed final rule. These changes include formatting, clarifying language, and additional details.
April 2011
ETA 3112.2011 Processing Perishable Meat Products
The Department issued Excise Tax Advisory (ETA) 3122.2011 Processing Perishable Meat Products. This ETA was originally issued as ETA 2035 in March 2007 to explain who is entitled to the preferential business and occupation (“B&O”) tax rate based on the Washington State Supreme Court decision, Agrilink Foods, Inc. v. Washington State Department of Revenue, 153 Wn.2d 392 (2005).
The following header has been added to this ETA to explain that it does not apply during the period of June 1, 2010 through December 1, 2010.
This ETA applies to periods prior to June 1, 2010 and after December 1, 2010. For the period of June 1, 2010 through December 1, 2010, 2ESSB 6143, Part V, limited the preferential B&O tax rate for processors of perishable meat to specific activities and products. Refer to 2ESSB 6143, Part V, for additional information about these limitations.
March 2011
ETA 3163.2011 Qualifying Equipment under the Data Center Exemption
The Department issued the Excise Tax Advisory (ETA) 3163.2011 Qualifying Equipment under the Data Center Exemption. This (ETA) clarifies what equipment qualifies as eligible server equipment for purposes of the data center exemption under RCW 82.08.986 and 82.12.986. The data center exemption provides retail and use tax exemptions to qualifying businesses of eligible server equipment to be installed, without intervening use, in an eligible computer data center, and to charges made for labor and services rendered in respect to installing eligible server equipment.
February 2011
ETA 3165.2011 Dry Stack Boat Storage
The Department issued ETA 3165.2011 Dry Stack Boat Storage. This ETA explains the business and occupation (B&O) tax responsibilities of businesses that offer land based boat storage in the form of stacking berths (“dry stack storage”).
ETA 3016.2011 Automobile Towing and Roadside Assistance Services
ETA 3016.2011 Automobile Towing and Roadside Assistance Services. This Excise Tax Advisory (ETA) provides information about the meaning and taxability of "automobile towing and similar automotive transportation services." It also provides information about the taxability of roadside assistance services that may be performed by towing companies. The information in this ETA has been updated and reformatted
ETA 3084.2011 Retail Sales Tax-Charges for Towing Damaged or Inoperable Vehicles for Repair
ETA 3084.2011 Retail Sales Tax – Charges for Towing Damaged or Inoperable Vehicles for Repair. This Excise Tax Advisory (ETA) explains the limited circumstances under which the Department allowed towing companies to accept resale certificates or reseller permits from service stations or repair shops. A header was added to this ETA to explain that it applies to periods prior to July 1, 2010. Effective July 1, 2010, service stations or automotive repair shops may provide a towing company with a reseller permit when purchasing a towing service for resale.
January 2011
ETA 3164.2011 Public Utility Pole Attachment Contracts
The Department issued ETA 3164.2011 Public Utility Pole Attachment Contracts. This ETA explains when the leasehold excise tax applies to utility pole attachment contracts allowing a private lessee access to a publicly-owned utility pole for the purpose of attaching wires or cables.
ETA 3076.2011 Deductibility of Interest Received on Investments or Loans Primarily Secured by First Mortgages or Trust Deeds on Nontransient Residential Properties
The Department issued ETA 3076.2011 Deductibility of Interest Received on Investments or Loans Primarily Secured by First Mortgages or Trust Deeds on Nontransient Residential Properties. ETA 3076 previously cited to Lacey Nursing v. Department of Revenue, 128 Wn.2d 40, 53, 905 P.2d 338 (2000). The Department updated the ETA to correct this citation to Lacey Nursing v. Department of Revenue, 103 Wn.App. 169, 11 P.3d 839 (2000).
WAC 458-20-144 Printing Industry
The Department has amended WAC 458-20-144 (Rule 144) to reflect the following recent legislative changes:
- SB 6173 (chapter 563, Laws of 2009) which replaced the resale certificate with a resellers permit as a means to document a wholesale sale; and
- 2ESSB 6143 (chapter 23 Laws of 2010) which provides that advertising revenues earned by printers are to be apportioned to this state for tax purposes.
Rule 144 was also amended to recognize the retail sales tax and use tax exemptions for computer equipment used in printing or publishing of printed material as provided in RCW 82.08.806 and RCW 82.12.806.
WAC 458-20-19401 Minimum nexus thresholds for apportionable activities
WAC 458-20-19402 Single factor receipts apportionment-Generally
WAC 458-20-19403 Single factor receipts apportionment-Royalties
WAC 458-20-19404 Financial institutions-Income apportionment
Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules to explain how these requirements apply:
- WAC 458-20-19401 (Rule 19401) Minimum nexus thresholds for apportionable activities
- WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally
- WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties
- WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment
Changes from the previous emergency rules filed October 1, 2010 under WSR 10-20-104 were made in the following subsections:
- Rule 19401 – No changes
- Rule 19402 –Subsection (5) Attribution of income
- Rule 19403 - Subsection (5) How are royalty receipts attributed to Washington
- Rule 19404 – No changes
WAC 458-20-10001 Adjudicative proceedings-Brief adjudicative proceedings-Certificate of registration (tax registration endoresment) revocation
Rule 10001 explains the Department’s adjudicative proceedings pursuant to chapter 34.05 RCW, the Administrative Procedure Act. The Department amended Rule 10001 to:
- Update the information in the rule to more accurately reflect current adjudicative procedures for certificate of registration revocations.
- Eliminate the discussion of proceedings regarding wholesale and retail cigarette license revocation or suspension. Chapter 154, Laws of 2009 (SHB 1435), provides the Washington State Liquor Control Board with the authority to approve, deny, suspend, or revoke retailer and wholesaler cigarette licenses.