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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.


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.

Rules:
WAC - Washington Administrative Code

Interpretive Statements:
ETA - Excise Tax Advisory
PTA - Property Tax Advisory
IAG - Interim Audit Guideline

December 2012

November 2012

October 2012

September 2012

July 2012

June 2012

May 2012

April 2012

March 2012

February 2012

January 2012


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.