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WAC 15503 Digital Products
WAC: 458-20-15503 02/25/13 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  WAC 458-20-155 is being repealed.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. 
ETA: 3177.2013 09/03/2013 Digital Products-General Analysis of Tax Liability.
The Department initially issued ETA 9003.2010 Digital Products – General Analysis of Tax Liability on November 30, 2010. This ETA is readopted as ETA 3177.2013 so that it is renumbered in a manner consistent with other existing ETAs. This ETA explains the overall process of digital products tax analysis; highlights key considerations in the analysis process; and directs taxpayers to other ETAs and rules for more information. This ETA has been amended to eliminate the table of analytic steps taxpayers use in determining the tax treatment of digital products, which represents subject matter that has been subsequently addressed in WAC 458-20-15503.
Subject Title Reference:      
  32 WTD 46 11-0081 02/27/2013 RCW 82.04.192, RCW 82.04.050: RETAIL SALE – DIGITAL AUTOMATED
SERVICES. Domain name registration services purchased from a domain name registrar are “digital automated services” under RCW 82.04.192(3)(a).
  32 WTD 46 11-0081 02/27/2013 RCW 82.04.050, RCW 82.04.190: RETAIL VS. WHOLESALE SALE –
CONSUMER – END USER. Computer data center’s purchase of digital automated services from a domain name registrar for resale to its own customers is a wholesale sale.
  32 WTD 46 11-0081 02/27/2013 RCW 82.04.050, RCW 82.04.190: RETAIL VS. WHOLESALE SALE –
CONSUMER – END USER. Computer data center’s sales of digital automated services to its customers are “retail sales” under RCW 82.04.050(8)(a).