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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:
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Rules:
WAC - Washington Administrative Code

Interpretive Statements:
ETA - Excise Tax Advisory
PTA - Property Tax Advisory

February 2016

January 2016

February 2016

WAC 458-20-183 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 2016 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.

WAC 458-20-15503 Proposal incorporates changes from SSB 5275, Sec. 310 (Chapter 86, Laws of 2015) concerning recordkeeping and examination requirements. Clarifying language was also added throughout by changing “section” to “rule.”

January 2016

WAC 458-20-261 This rule discusses the various commute trip reduction incentives available. Rule 261 is being revised to recognize passage of Second Engrossed Substitute Senate Bill 5987, chapter 44 , Laws of 2015, which extends the commute trip reduction credit expiration date from June 30, 2017 to July 1, 2024. Other changes include:
Allowing carryover credits to be used for tax reporting periods through December 31, 2016;

  • Requiring all credits approved after June 30, 2015 be used for tax reporting periods within the calendar year they are approved by Department of Revenue;
  • Lowering the maximum credit a taxpayer can receive per year to $100,000;
  • Providing a maximum 15 day extension to apply for the credit for circumstances beyond the control of the taxpayer; and
  • Requiring taxpayers to apply for the credit electronically, and claim the credit on their return electronically.

 

ETA 3187.2016 clarifies what “operationally complete” means when used in the following Chapters of the Revised Code of Washington (RCW): 82.60 RCW; 82.63 RCW; 82.74 RCW; and 82.75 RCW.  The ETA explains the importance of identifying the “operationally complete” date, and provides information pertaining to filing annual surveys, when an investment project has more than one manufacturing line, and the use of an investment project for a non-qualifying use.

ETA 3198.2016 This ETA addresses the taxation of income from sales of home service contracts and mixed service contracts, and the use of parts and repair services covered under such contracts.

WAC 458-20-210 Sales of tangible personal property for farming-Sales of agricultural products by
farmers
explains the application of business and occupation, retail sales, and use taxes to the sale and/or use of
feed, seed, fertilizer, spray materials, and other tangible personal property for farming. The rule also explains the application
of the same taxes to the sales of products by farmers. Revisions are supported by chapter 6, Laws of 2015 (ESSB 6057 Part
XI) and chapter 86, Laws of 2015 (SSB 5275 Section 202).

WAC 458-20-210 (Rule 210) has been revised to include:

  • Eligible apiarists in the definition of farmer;
  • Honey bee products as an agricultural product;
  • Definition of who is an eligible apiarist;
  • Definition of what are honey bee products;
  • Expanded B&O tax exemption on wholesale sales to include bee pollination services to
  • farmers;
  • Language pertaining to the requirements of new tax preferences (RCW 82.32.808);
  • Updated expiration date for RCW 82.04.4266 and RCW 82.04.4268 to July 1, 2025; and
  • An exemption certificate for RCW 82.08.900 and 82.12.900 (Anaerobic digesters) will no
    longer be issued by the Department. Persons claiming exemptions may complete a Farmers’
    Certificate for Wholesale Purchases and Sales Tax Exemptions found on the Department’s
    web site.
    The following has been removed from Rule 210:
  • The subsection “Machinery, equipment, and structures used to reduce emissions from field
    burning” as exemptions provided by RCW 82.08.840 and 82.12.840 expired in 2011; and
  • The Department issues an exemption certificate for RCW 82.08.890 and 82.12.890 upon
    receipt of application. (Effective June 12, 2014, persons claiming exemptions may complete
    and use a Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions in lieu of
    the Department issued certificate.)

 

Updates WAC 458-19-070 and WAC 458-19-075 to incorporate 2015 legislation:
ESHB 2263 (Chapter 24, Laws of 2015), creating, funding, and imposing tax for Cultural Access Program; and
2ESSB 5987 (Chapter 44, Laws of 2015), creating, funding, and imposing tax for Regional Transit Authority.
WAC 458-19-070 Five dollars and ninety cents statutory aggregate limit calculation explains the prorationing process used
to establish a consolidated levy rate when the assessor finds the statutory aggregate levy rate exceeds five dollars and
ninety cents per thousand dollars of assessed value.
WAC 458-19-075 Constitutional one percent limit calculation explains how to determine if the constitutional
one percent limit is being exceeded and the sequence in which levy rates will be reduced or eliminated if exceeded.

 

WAC 458-20-13501 Timber harvest operations The Department is proposing revision to WAC 458-20-13501 to:

  • Define log transportation businesses and indicate that effective August 1, 2015, a reduced PUT rate is available to
    most log transportation businesses (RCW 82.16.020, Chapter 6, 2015 Laws 3rd Special Session);
  • Update and add statute references;
  • Update definition for “small harvester” to match RCW 84.33.035;
  • Update reporting requirements on timber purchases including the extended expiration date of July 1, 2018, as
    provided by RCW 84.33.088; and
  • Revise language pertaining to “services furnished jointly” to correspond with the statute and Puget Sound v Dep’t of
    Revenue, 158 Wash. App. 616 (2010).

 

WAC 458-20-176 Commercial deep sea fishing - Commercial passenger fishing - Diesel Fuel explains the business and occupation (B&O) tax, sales tax and use tax
responsibilities of those engaged in commercial deep sea fishing and suppliers selling to those persons. Rule 176 has been
revised to:
 Include information pertaining to RCW 82.04.4269 that allows a B&O tax exemption for value of product or
proceeds of sales for manufactured seafood products that remain in a raw, raw frozen or raw salted state at the
completion of the manufacturing by that person or when the same is sold to buyers that transport the seafood
products out of the state of Washington. This exemption, not previously discussed in the rule, has been extended to
July 1, 2025. Chapter 6, 2015 Laws 3rd Special Session (ESSB 6057).
 Add an introduction and references to other rules that may be helpful to readers.
 Remove verbiage pertaining to and the example of the “Diesel Fuel Exemption Certificate” as no longer needed.
Qualified buyers should use the Buyers’ Retail Sales Tax Exemption Certificate found on the Department’s website.