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WAC 173 Installing, cleaning, repairing or otherwise altering or improving personal property of consumers.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
       
WAC: 458-20-173 02/01/10 These rules all refer to resale certificates. Proposed action is to add standard language to recognize reseller permits for sales made on or after January 1, 2010.
  458-20-173   03/15/1983 Installing, cleaning, repairing or otherwise altering or improving personal property of consumers.
        Jewelry Repair Shops - Refer to Rule 149 prior to 2/7/93
       
RCW: 82.04.050   1993 "Sale at retail", "retail sale"
  82.04.190   1986 "Consumer"
  82.04.250   1993 Tax on Retailers
  82.04.270   1994 Tax on Wholesalers, Distributors
  82.08.020   1992 Retail Sales Tax Imposed
  82.14.030   1989 Sales and Use Taxes Authorized - Additional Taxes Authorized - Maximum Rates
  82.08.0264   2007 Sales to and repair of vehicles for nonresidents
         
       
ETA: 3111.201 06/24/2010 B&O Tax Exemption for Property Managers (RCW 82.04.394)-On-Site Personnel Working at Multiple Properties. RCW 82.04.394 provides a B&O tax exemption for amounts received by a property management company from the owner of a property for gross wages and benefits paid to on-site personnel. 
ETA 3111 explains how this B&O tax exemption provided to property management companies applies when on-site personnel work at multiple properties.

The Department has updated this ETA to recognize provisions of 2ESSB 6143 Part XII (Chapter 23, Laws of 2010 1st Special Session).  This legislation amended RCW 82.04.394 to restrict the exemption to those amounts received by:

A “non-profit property management company” from the owner of a property, or
A property management company from a “housing authority.”
  3128.r109 12/28/09 Repair work on goods damaged in transit as ordered by the shipper, the carrier, or the owner. Effective January 1, 2010, reseller permits will replace resale certificates as the means to substantiate wholesale purchases. Chapter 563, Laws of 2009.
  3018.2009 2/2/09 Dismantling of equipment as retail sales
3045.2009 2/2/09 Materials used in welding process
3128.2009 2/2/09 Repair work on goods damaged in transit as ordered by the shipper, the carrier, or the owner
128.08.173 8/5/66 DISMANTLING OF EQUIPMENT AS RETAIL SALES Revised 2/2/09 See ETA 3018.2009
208.04.173 9/2/66 SALES OF ABRASIVES AND MASKING TAPE FOR USE IN THE PERFORMANCE OF AN AUTOMOBILE PAINTING CONTRACT - Cancelled effective December 29, 2006 This document explains that an automobile paint shop must pay retail sales tax on the purchase of abrasives and masking tape it consumed in performing painting services. The fact that the paint shop separately listed these supplies on bid documents or sales invoices did not change the retail nature of the purchase. This issue is adequately addressed in other documents issued by the Department, including WAC 458-20-173 and Det. 91-128, 11 WTD 327.
213.04.173 9/9/66 DISTINCTION BETWEEN "MANUFACTURING" AND "ALTERING" ACTIVITIES - Cancelled effective December 29, 2006 This document explains that the cutting of an epitaph is the “altering” of tangible personal property, not a manufacturing activity, because it results in merely extending a utility that already existed in the epitaph. The document also explains that producing a key from a blank was manufacturing because the activity resulted in a “new, different, or useful article.” WAC 458-20-136 provides more detailed information about distinguishing between repairing/refurbishing and manufacturing.
215.04.173 9/9/66 REPAIR WORK ON GOODS DAMAGED IN TRANSIT AS ORDERED BY THE SHIPPER AND BY THE CARRIER Revised 2/2/09 See ETA 3128.2009
322.08.113.173 10/2/67 MATERIALS USED IN WELDING PROCESSES Revised 2/2/09 See ETA 3045.2009
         
       
INDUSTRY GUIDES:      
         
         
SPECIAL NOTICES:      
Subject Title Reference:      
Disabled Veterans 06/28/2013 Sales of Automotive Adaptive Equipment to Disabled Veterans
Property Management 07/18/2011 New Law Expands Property Management B&O Tax Exemption
Property Management 05/13/2010 New Law Limits Property Management B&O Tax Exemption
      06/01/2004 Out-of-State Repair Business
Auto Repair Businesses     04/01/2002 Auto Repair Businesses - State Requirements
Manufactured Housing     10/16/1998 Sales Tax Collection Requirement on Sales of Manufactures Housing
      07/29/2002 Use Tax on Out-of-State Repairs
Auto Repair Businesses/ Nonresidents     05/31/2007 Sales of Auto Parts to Nonresidents and Annual Notification for Repair Facilities
         
       
DIRECTIVE: None      
         
       
RPM: None      
         
       
WTD: 3 WTD 1 87-105   SALES TAX -- EXEMPTION -- USE OUTSIDE THIS STATE -- REPAIR WORK -- COMPONENT PART. There is a sales tax exemption for sales of component parts sold to nonresidents for use outside this state, and on repair work done for nonresidents where the seller delivers the property to a purchaser outside this state. The exemption was not available to the taxpayer because the property sold was not for use outside this state and the repaired property was not delivered outside this state.
  3 WTD 59 87-130   CLEANING SERVICE -- JANITORIAL -- UNCOLLECTED RETAIL SALES TAX. Charges for cleaning beer taps, lines, and heads are retail sales. This type of activity is not a service ordinarily performed by a commercial janitorial business. A "seller" of such services is liable for uncollected retail sales tax, even if he did not know of the obligation to collect the tax.
  3 WTD 135 87-157   SERVICE -- RETAIL SALE -- PIANO TUNING. Piano tuning is not a retail sale. Any alteration or improvement to tangible personal property is minor. The primary nature of the activity is service.
  4 WTD 393 87-375   RETAIL SALES TAX--MAINTENANCE AGREEMENT -- WARRANTIES -- RETAIL SALE. A sale of a maintenance contract calling for periodic inspection, servicing, and repair of tangible personal property is a retail sale.
  6 WTD 33 88-221   B&O/SALES TAX -- CLASSIFICATION -- MACHINERY -- REPAIR -- ENGINEERING -- SEPARATION. Where engineering services are readily separable from the repair of portable machinery, the two activities will be judged independently for purposes of the B&O and retail sales tax. Here, the basis for such separation is found in two different contracts.
  6 WTD 267 88-306   RETAIL SALE -- REPAIR TO PERSONAL PROPERTY FOR CONSUMERS. Repair to tangible personal property for a consumer is taxable as a retail sale. Even though the repairs are performed by the owner of the property, they are done for the lessee, or consumer, of the property.
  7 WTD 79 88-459   B&O TAX--REPAIRS--PERFORMED OUT OF STATE. Charges made for repairs of property performed entirely out-of-state, when all parties knew that the repairs were to be done outside of Washington, are not subject to Washington's taxing authority. Accord: ETB 421.04.103
  10 WTD 400 91-050   SALES TAX -- REPAIRS -- LACK OF KNOWLEDGE. Taxpayer's lack of knowledge about collecting sales tax for repair work to machinery does not relieve it of its tax obligation. Accord: Det. 86-226, 1 WTD 67 (1986), Det. 86-278, 1 WTD 287 (1986).
  11 WTD 327 91-128   REPAIRS -- SUPPLIES CONSUMED -- INVOICE. Materials consumed in the repair process which were purchased by the taxpayer performing repairs were subject deferred sales tax even though they were separately charged to customers.
  12 WTD 609 93-090   RPM 89-1 -- ETB 553 -- RETAILING OR SERVICE B&O TAX -- HAZARDOUS WASTE CLEANUP. Cleaning equipment or structures is a retail activity unless at a designated hazardous waste site. Removing hazardous wastes from bare land or water is taxable as a service. When a contract involves a combination of these activities, the receipts are taxed under the classification of the predominant activity.
  13 WTD 18 91-020   B&O TAX - WHOLESALING - INSTALLATION IN WASHINGTON - FOR OUT-OF-STATE MANUFACTURER. A Washington taxpayer is taxable as a wholesaler when it is hired and paid by a foreign manufacturer to assist in installing galleys in customers' aircraft.
  14 WTD 199 94-035   USE TAX -- REPAIRS -- OUT-OF-STATE. Use tax is due on the value of new parts installed into equipment repaired out-of-state and returned to Washington. Det. No. 90-298, 11 WTD 067 (1990) and ETB 421.
  23 WTD 166 03-0294   RETAIL SALES TAX -- EXEMPTION -- VESSEL -- REPAIRS MADE IN WASHINGTON -- OUT OF STATE DELIVERY. Taxpayer failed to submit sufficient evidence to sustain its argument that its vessel had been delivered to an out-of-state port after its repair in Washington.
  23 WTD 229 03-0350   B&O TAX -- EXCLUSION -- ON-SITE PERSONNEL HIRED BY PROPERTY MANAGEMENT COMPANIES. The RCW 82.04.394 exclusion from the B&O tax for amounts received by property management companies and used to pay on-site personnel is not ambiguous and applies only when the on-site personnel primarily perform services at a single owner's property.
       
       
OTHER: