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.
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 |
- WAC 458-61A-202 Inheritance or devise
- WAC 458-61A-210 Irrevocable trusts
- WAC 458-20-183 Amusement, recreation, and physical fitness services.
June 2017
ETA 3203.2017 – Use of a Tribal Resale Exemption Certificate explains when tribes and tribal businesses may use, and sellers may accept, a tribal resale exemption certificate to document the retail sales tax-exempt nature of a purchase/sale for resale.
ETA 3204.2017 – Credit Card Processors describes how a credit card processor should measure, for B&O tax purposes, its gross income from processing credit card transactions.
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 second half of 2017.
May 2017
ETA 3202.2017 Deductibility of Membership Dues Paid to Chambers of Commerce and Visitor Bureaus explains that membership fees received by visitor bureaus and chambers of commerce are generally “bona fide dues” deductible from the business and occupation (B&O) tax.
WAC 458-20-183 (Rule 183) explains the tax reporting instructions for persons who provide amusement,
recreation, and physical fitness services. RCW 82.04.050 is the statute that explains the taxability of these same activities and
services. The statute was significantly amended in 2015 due to legislation (House Bill 1550) which changed the taxability of
many of these activities and services. The Department will begin the standard rulemaking process in 2017 to reflect these
changes, but until the final rule is adopted the Department wants the public to be aware that many of the tax reporting
instructions in Rule 183 are only valid through December 31, 2015.
There are no changes from the previous emergency rule filed January 19, 2017 under WSR 17-04-006.
ETA 3043.2017 provides the calculations and rates that are required in determining a public utility tax deduction available to certain light and power businesses.
ETA 3047.2017 addresses Washington’s taxation of Internet access and telecommunications used to provide Internet access under the ITFA.
ETA 3152.2017 addresses the business and occupation (B&O) and use tax liabilities of speculative builders who fabricate components offsite for their building projects.
April 2017
WAC 458-20-19404 (Rule 19404) Financial institutions-Income apportionment explains how financial institutions must apportion gross income when they engage in business both within and outside the state. RCW 82.04.460(2) provides that the Department adopt a rule for the
apportionment of income of financial institutions that is consistent with the model adopted by the Multistate Tax Commission
(MTC). Rule 19404 has been amended to remain consistent with the MTC’s change in its model method of apportionment
for financial institutions that becomes effective January 1, 2016.
There are no changes from the previous emergency rule filed December 19, 2016 under WSR 17-01-107.
ETA 3200.2017 addresses how to determine liability for use tax on tangible personal property temporarily
brought into Washington for business purposes on multiple occasions.
ETA 3201.2017 addresses the Department of Revenue’s policy and process with respect to the disclosure of confidential taxpayer information when such disclosure is required by the Board of Tax Appeals or a court in the context of a hearing or trial.
WAC 458-20-193 titled, Interstate sales of tangible personal property, explains the application of the
business and occupation (B&O) tax, and retail sales and use tax to interstate sales of tangible personal property. The
Department is amending Rule 193 to incorporate language from SHB 2938, 2016 Regular Session (Chapter 137, Laws of
2016). This legislation prohibits the department of revenue, for purposes of B&O tax, and retail sales and use tax, from
making a determination of nexus based solely on the attendance of one or more representatives of a business at a single trade
convention per year in this state.
WAC 458-20-265 titled, Sales and use tax exemption – Airplane maintenance repair stations explains the retail sales and use tax exemptions, as described in RCW 82.08.025661 and RCW 82.12.025661, for the construction of airplane maintenance repair stations operated by an eligible maintenance
repair operator. This rule incorporates language from Second Substitute House Bill 2839, 2016 Regular Session (Chapter
191, Laws of 2016) and explains the exemption qualifications, including how to apply for the exemption and when
remittances are provided for sales or use tax paid on prior eligible purchases.
WAC 458-20-267, Annual reports for certain tax adjustments preferences, defines what a tax
preference is, how to determine if a report must be filed, how to file a report, and what information must be included in the
report. WAC 458-20-268, Annual surveys for certain tax preferences, defines what a tax preference is, how to
determine if a survey must be filed, how to file a survey, and what information must be included in the survey.
The Department is amending Rule 267 and Rule 268 to incorporate language regarding the due date and penalty for late filing
for annual reports and annual surveys, from ESHB 2540, 2016 Regular Session (Chapter 175, Laws of 2016). These rules are
further being amended as follows:
• The deletion of the listing of individual tax preferences requiring an annual report and re-directing taxpayers to the Department’s website that lists which tax preferences require an annual report;
• Added/updated definitions for “person” and “tax preference”;
• Deleted past statute information; and
• Updated rule title (Rule 267 only) and examples.
WAC 458-20-269 Waiver of public disclosure of certain new tax preferences. The Department is adopting a new
rule under chapter 458-20 WAC that explains:
• Amounts claimed by taxpayers for any new tax preference are subject to public disclosure, with certain limitations, pursuant to RCW 82.32.808(7);
• Under certain circumstances, the Department may waive this public disclosure requirement;
• What the good cause waiver standard is, including the tax preferences eligible for the good cause waiver; and
• The procedure for applying for a good cause waiver and the appeal process.
WAC 458-20-189 was amended to:
Incorporate legislative changes from HB 1550, 2015 Regular Session, (Chapter 169, Laws of 2015);
Update existing definitions and include a new definition for the term “user fee”;
Add subsection titles for readability purposes;
Remove outdated examples and add a new example of an enterprise activity;
Update statutory and rule references.
March 2017
ETA 3199.2017 explains how to attribute fees from money transfer services for apportionment purposes. The money transfer services addressed here are those made for non-business reasons, such as for personal, family, or household purposes. For information on how to attribute fees from money transfer services between financial institutions refer to WAC 458-20-19404 Financial institutions – Income apportionment. For information on how to attribute fees from money transfer services for business purposes, refer to WAC 458-20-19402(303)(c) Single factor receipts apportionment – Generally.
WAC 458-20-100 (Rule 100) describes the general guidelines the Department of Revenue uses to conduct informal administrative reviews. Rule 100 is being amended to reflect the change in the physical address of the division that conducts the informal administrative reviews.
January 2017
WAC 458-61A-202 Inheritance or devise (Rule 61A-202), and WAC 458-61A-210 Irrevocable trusts (Rule 61A-210), describe the required documentation to substantiate an exemption to real estate excise tax when real property is transferred. Rules 61A-202 and 61A-210 are being amended to reflect legislative changes due to the passage of Substitute House Bill 2539 (2016) which clarified the documentation requirements to qualify for an exemption to real estate excise tax when real property is transferred. The Department is proposing revisions to Rule 61A-202 and Rule 61A-210 that include:
Adding the following definitions:
- Heir
- Lack of probate affidavit
- Nonpro rata distribution
Clarifying the types of documents required when real property transfers through a devise by will or inheritance
Reorganizing subsections and examples for readability purposes
WAC 458-20-183 (Rule 183) explains the tax reporting instructions for persons who provide amusement, recreation, and physical fitness services. RCW 82.04.050 is the statute that explains the taxability of these same activities and services. The statute was significantly amended in 2015 due to legislation (House Bill 1550) which changed the taxability of many of these activities and services. The Department will begin the standard rulemaking process in 2017 to reflect these changes, but until the final rule is adopted the Department wants the public to be aware that many of the tax reporting instructions in Rule 183 are only valid through December 31, 2015.
There are no changes from the previous emergency rule filed September 22, 2016 under WSR 16-20-005.