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WAC 144 Printing industry    
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-144 01/21/11 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.  
  458-20-144   01/26/2006 Printing industry. Effective 3/2/06.
    07/01/2005 Printing industry
RCW: 82.04.070   1961 "Gross proceeds of sales"
  82.04.280   1994 Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, radio and television broadcasting, consumer as defined in RCW 82.04.190(6)--Cold storage warehouse defined--Storage warehouse defined--Periodical or magazine defined.
  82.04.395   1979 Exemptions - Certain materials printed in school district and educational service district printing facilities.
  82.04.397   1979 Exemptions - Certain materials printed in county, city, or town printing facilities.
  82.04.600   1979 Exemptions - Materials printed in county, city, town, school district, educational service district, library or library district.
  82.08.010   2005 Definitions
  82.08.020   1992 Tax imposed--Retail sales--Retail car rental.
  82.08.02565   1998 Exemptions--Sales of manufacturing and research and development machinery and equipment--Labor and services for installation--Exemption certificate--Rules.
  82.08.806   2004 Sale of computer equipment parts and services to printer or publisher.
  82.12.02565   1998 Exemptions--Use of manufacturing and research and development machinery and equipment--Exemption certificate prescribed by department--Annual summary.
  82.14.030   1989 Sales and use taxes authorized--Additional taxes authorized--Maximum rates.
ETA: 3058.2009 2/2/09 Electroplates manufactured and used by a printer
  3063.2009 2/2/09 Printing industry- use tax on consumable materials and supplies
  20.08.103 7/1/66 CATALOGS PURCHASED WITHIN THE STATE PURCHASED FOR DISTRIBUTION WITHOUT (Cancelled 9/14/01)
  392.08.144 7/3/70 ELECTROPLATES MANUFACTURED AND USED OUTSIDE THE STATE Revised 2/2/09 See ETA 3058.2009
  417.12.144 3/1/84 PRINTING INDUSTRY --- Use tax on Consumable Materials and Supplies Revised 2/2/09 See ETA 3063.2009
INDUSTRY GUIDES:   Fall 2004 School District Guide
SPECIAL NOTICES:      
Subject Title Reference:      
Printing & Publishing 06/08/2012 Printers and Publishers of Newspapers: B&O Tax Changes and Definitions
Printing & Publishing 08/30/2011 B&O Tax Rate Lowered Printing and/or Publishing of Newspapers
Economic Nexus 05/28/2010 New "Economic Nexus" in Washington State May Impact "Foreign Corporations"
Economic Nexus 05/28/2010 New Apportionment Method
Economic Nexus 05/28/2010 Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients
Economic Nexus 05/28/2010 Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income
Economic Nexus 09/10/2010 B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)
Printing & Publishing   6/19/09 B&O Tax Rate Lowered Printing and/or Publishing of Newspapers
Computers Used in Printing & Publishing/ Printing & Publishing     04/16/2004 Computers Used in Printing & Publishing-Sales & Use Tax Exemption
Printing & Publishing     06/09/2008 Advertising Income from Electronic Version of Printed Newspaper Now Taxed under Printing and Publishing Classification
DIRECTIVE: 8144.1   02/10/1984 Printing Plates - ETB's 417 and 456
  8144.2   10/13/1988 Silk Screen Printing ProcessCancelled 07/17/02 Silk Screen Printing Process This directive explains that the intermediate steps in a silk-screen printing process are similar to those used in other more conventional printing processes, and subject to the tax-reporting instructions provided in ETA 417.12.144 (Printing industry - Use tax on consumable materials and supplies) and 456.08.143 (Tax liability of print shops - Plate production and printing charges).It also explains that persons producing silk-screen products and selling the same outside the state incur a manufacturing B&O tax liability.This directive is no longer needed.Det. 92-352, 12 WTD 509 (1992), and Det. 88-351, 6 WTD 371 (1988), sufficiently address these issues.
RPM: None      
WTD: 4 WTD 437 88-10   RETAIL SALES TAX -- PRINTED MATTER -- ADVERTISING SERVICES. Sales of printedmatter to an advertising servicebusiness for their own use or for the use of their clients are sales for consumption and subject to the retail sales tax.
  7 WTD 188-1 89-97   USE AND/OR DEFERRED SALES TAX -- PERIODICAL --REAL ESTATE GUIDES -- PRINTING CHARGES. Printing charges for real estate guides given away free by the publisher to its readers found to be subject to use and/or deferred sales tax.
  7 WTD 305 89-227   B&O TAX -- PRINTING AND PUBLISHING -- IN-HOUSE PRINTING.Persons acting for business purposes as their own printers are subject tax under the manufacturing B&O tax classification upon that activity.Group Health v. Department of Rev., 106 Wn. 2d 391 (1986); Det. No. 88-186, 5 WTD 319 (1988).
  8 WTD 445 89-546   USE TAX -- MEASURE OF -- PRINTED MATERIALS. A county government which makes and uses printed materials is liable for use tax on the total value of such materials which value includes labor and overhead costs expended in the printing thereof.
  12 WTD 369 92-141   USE TAX -- CATALOGS -- WASHINGTON CUSTOMERS --OUT-OF-STATE PRINTERS. Taxpayer is not liable for use tax on catalogs which its printer sends from out-of-state directly to customers in Washington. There is no use by the taxpayer in Washington.Sears v Dept. of Revenue, 97 Wn. 2d 260, 643 P. 2d 884 (1982).
  12 WTD 425 92-260   RETAIL SALES TAX -- GROSS PROCEEDS OF SALE --PRINTED PRODUCT -- DESIGN SERVICES. Graphic design services or other intermediate steps performed by the actual printer of the product are services rendered "in respect to" imprinting tangible personal property if those services are directly related to the imprinting services and performed under one or more concurrently executed contracts or invoices.
  12 WTD 509 92-352   MFG TAX -- USE AND/OR DEFERRED SALES TAX --MANUFACTURING FOR OWN USE -- INTERMEDIATE STEPS -- SILK SCREENING. The creation of silk-screens by a sign maker was found to be an intermediate step in the printing process. Therefore, manufacturing B&O tax was not due on the value of the screens and use and/or deferred sales tax was due only on the materials consumed.
  13 WTD 183 93-261   PHOTOGRAPHIC SERVICES -- SALES TO PRINTERS AND PUBLISHERS -- WHOLESALING B&O TAX.Until modified or withdrawn, Excise Tax Bulletins issued by the Department of Revenue allow a photographer who sells prints with reproduction rights to printers and publishers of magazines, newspapers, and periodicals to take a resale certificate and to charge no retail sales tax. If the photographer takes resale certificates, he or she should report the income from the sale under the Wholesaling B&O tax classification.
  19 WTD 289 99-225R   MANUFACTURING EQUIPMENT AND MACHINERY EXEMPTION - PRINTING.Blank printing plates, purchased for use in an intermediate step in the printing process, are exempt from retail sales/use tax as machinery and equipment used directly in a manufacturing if they meet the one-year useful life requirement.Blank printing plates purchased for a one-time use are not exempt.Other supplies including film, tape, and developer, are not exempt from retail sales/use tax as machinery and equipment.
  24 WTD 464 05-0075   USE TAX -- EXEMPTION FOR DONATED ITEMS.Printing charges for coupons used to track and quantify a subsequent donation to a non-profit organization were properly subject to retail sales tax.The use tax exemption for donated items does not provide a basis for refund of retail sales tax properly paid when purchasing items.
  26 WTD 91 05-0217E   RCW 82.04.280:B&O TAX - PRINTING AND PUBLISHING - ADVERTISING MATERIALS AND COUPONS. An assortment of separately printed advertisements and coupons printed on separate pieces of paper and inserted into an envelope cannot properly be described as a work or issue, and is therefore not a "publication."Because the collection of separate pieces of paper is not a "publication," it does not qualify as a "periodical or a magazine" for purposes of the printing and publishing B&O tax classification.
  26 WTD 256 05-0142   RCW 82.04.080, RCW 82.04.090: SERVICE B&O TAX -- ADVERTISING DISPLAY SERVICE -- BONA FIDE DISCOUNT -- NET CHARGE.Service B&O tax on advertising display service charges billed on a net basis is measured by the amount billed and legally due.
OTHER: