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WAC 180 Motor transportation, urban transportation.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-180 07/03/13 WAC 458-20-179 Public utility tax; 458-20-17901 Public utility tax-Energy conservation and cogeneration deductions; 458-20-180 Motor carriers 
The Department is amending WAC 458-20-179 and 180 for general updating and reorganization of the information in the rules.  WAC 458-20-17901 is being repealed as no longer needed, as relevant deduction information has been incorporated into Rule 179.  Information pertaining to legislation SSB 6614 (chapter 295, Laws of 2010) has been added to Rule 179.  Log hauling examples have been removed from Rule 179, as they are now included in WAC 458-20-13501.  Deduction information specific to motor carriers has been moved from Rule 179 to Rule 180.  
  458-20-180   03/15/1983 Motor transportation, urban transportation.
RCW:        
  82.16.010   1996 Definitions
  82.16.020   1996 Public utility tax imposed--Additional tax imposed--Deposit of Moneys.
  82.16.050   2007 Deductions in computing tax
ETA:      
  3139.2009 08/03/2013 Urban Transportation--The Five Mile Standard.
ETA 3139.2009 addresses the proper interpretation of the phrase "operating entirely within five miles of the corporate limits thereof" in the definition of "urban transportation business" under RCW 82.16.010. This ETA is being cancelled because the matter it addresses is now covered by amended WAC 458-20-180 (Motor carriers), which became effective August 3, 2013. This cancellation is effective on the date the rule became effective. 
  3050.2013 05/24/2013 Dump Truck Operators
The Department has issued ETA 3050.2013. This Excise Tax Advisory (ETA) explains the public utility (PUT), business and occupation (B&O), and retail sales tax reporting responsibilities for various services commonly provided by dump truck operators.
  3050.2009 2/2/09 Dump truck operators
  3139.2009 2/2/09 Urban transportation - the five-mile standard
  254.04.180 9/23/66 LIVERY SERVICE BUSINESSES Cancelled 1/29/09 This ETA addresses a situation where a taxpayer provides limousine and ambulance services and also occasionally rents the vehicles without drivers. The document explains that the taxpayer is responsible for paying retail sales tax on its purchase or lease of the vehicles used in providing the limousine and ambulance services. It also explains that retail sales tax must be collected on the charge for the occasional bare rental of the vehicles. This document does not provide any information that is not otherwise available in other documents published by the Department.
  345.16.180 5/29/70 AGRICULTURAL COMMODITIES HAULING CLASSIFIED WITHIN MOTOR TRANSPORTATION BUSINESS Cancelled effective 02/28/07 This document explains that a person transporting agricultural commodities by motor vehicle is subject to the public utility tax (in this case the motor transportation classification). This document is not needed.
  346.16.180 5/29/70 URBAN TRANSPORTATION--THE FIVE MILE STANDARD Revised 2/2/09 See ETA 3139.2009
  347.16.180 5/29/70 FEDERAL GOVERNMENT CONTRACTORS HAULING OUT-OF-STATE GOODS Cancelled effective 02/28/07 This document explains that income received by persons hauling U.S. Mail between points within the state is subject to the public utility, while income for hauling mail across Washington’s state lines is exempt. This information is both not needed and incomplete. There is nothing unique about the taxation of for-hire motor carriers hauling mail vs. any other property. WAC 458-20-179 (Public utility tax) and ETA 2006.16.179 (Taxability of air transportation and other activities performed with aircraft) both explain that federal law exempts from state taxation the transportation of mail by air.
  365.04.172 1/30/74 DUMP TRUCK OPERATORS Revised 2/2/09 See ETA 3050.2009
INDUSTRY GUIDES:   08/01/2011 Taxicabs and Limousines 
    04/01/2007 Washington State Tax Guide - Trucking
SPECIAL NOTICES:      
Subject Title Reference:      
    06/23/2003 Environmental Remedial Action Sunsets
DIRECTIVE: None      
RPM: None      
WTD: 2 WTD 269 87-53   PUBLIC UTILITY TAX -- TRANSPORTATION --COMMERCE -- EXPORTS -- LOGS. The taxation of local transportation services does not violate the Commerce Clause or the Import and Export Clause even if the transportation services are used in getting exports to a port.(Canton Railroad Co. v. Rogan, cited)
  2 WTD 269 87-53   PUBLIC UTILITY TAX -- MOTOR TRANSPORTATION and URBAN TRANSPORTATION DISTINGUISHED.Income from transporting logs within the area defined as "urban transportation business" in RCW 82.16.010(8) is subject to the urban transportation tax rather than the motor transportation tax.
  3 WTD 73 87-138   PUBLIC UTILITY TAX -- EXEMPTION -- MOTOR TRANSPORTATION --INTERSTATE COMMERCE. A trucker who is hired and paid by a broker to haul goods from shipside in one city in Washington, to another city here, is not entitled to a deduction for interstate hauling, where there is no through bill of lading.
  4 WTD 11 87-267   PUBLIC UTILITY TAX -- URBAN TRANSPORTATION BUSINESS -- CONSTRUCTION OF STATUTES. Where statute defines urban transportation business as operation "between" cities and towns less thanfive miles apart or within five miles of "either" thereof, only two cities or towns are contemplated. Otherwise, the legislature would have specified "among" and "any".
  8 WTD 59 89-337   USE AND/OR DEFERRED SALES TAX -- AUTOMOBILE TOWING AND SIMILAR AUTOMOTIVE TRANSPORTATION SERVICES -- TOWING OF AN OFFICE TRAILER. The towing of an office trailer from jobsite to jobsite is not "automobile towing or similar automotive transportation services" within the meaning of RCW 82.04.050 and therefore not subject to use and/or deferred sales tax.
  8 WTD 341 89-503   PUBLIC UTILITY TAX -- MOTOR TRANSPORTATION -- PLACE OF SERVICE -- INTERSTATE COMMERCE INTERSTATE BILL OF LADING -- ABSENCE THEREOF. When a motor carrier is paid for hauling which takes place entirely outside of Washington or for hauling across Washington's boundaries, it is not taxable. When it is paid for hauling entirely within Washington absent an interstate bill of lading, it is subject to Motor Transportation (or Urban Transportation) public utility tax.It may, however, deduct amounts paid to other motor carriers subject to tax.
  9 WTD 231 90-108   PUBLIC UTILITY TAX -- MOTOR TRANSPORTATION -- HAULING LOGS -- EXTRACTOR FOR HIRE. Persons performing logging activities for others under a logging contract are extractors for hire.A portion of the income of an extractor for hire from logging contracts attributable to hauling logs is subject to the Motor Transportation Public Utility Tax.
  9 WTD 277 90-126   PUBLIC UTILITY TAX -- MOTOR TRANSPORTATION -- VAN TRANSPORTATION OF PASSENGERS TO/FROM AIRPORT -- INTRASTATE -- INTERSTATE AIRLINE TRAVELERS.Any transportation of passengers, in this case by van, performed within the state prior to the point of origin of the interstate movement by airline or subsequent to the point of arrival in this state after interstate travel by airline are wholly intrastate and within the taxing jurisdiction of this state.
  10 WTD 29 90-234   B&O TAXES -- CONSTRUCTION OF LOGGING ROAD -- EXTRACTING VS. MOTOR TRANSPORTATION -- BILLED ON PER YARD BASIS.The tax consequences of a contract to construct a logging road in connection with a timber harvesting operation do not change solely because the taxpayer computes and bills the contract on a per yard of rock transported basis and/or stockpiles the rock at an intermediate location prior to the actual road construction.
  10 WTD 79 90-280   PUBLIC UTILITY TAX -- URBAN TRANSPORTATION -- B&O TAX -- WAREHOUSING -- SERVICES INCIDENTAL TO OR AS A PART OF THE TAXABLE ACTIVITY.Where taxpayer hauls freight for hire, additional services performed which are incidental to completion of the haul are taxable at the Urban Transportation rate.Where taxpayer additionally offers warehouse space for compensation, services performed as a part of that operation are taxable at the warehousing B&O tax rate.Only where services are not incidental to a haul or are not part of warehousing activities are they taxable at the higher service B&O tax rate.
  10 WTD 332 90-385   PUBLIC UTILITY TAX -- TAXICABS -- URBAN TRANSPORTATION.Cab operator's income from contracting with local public transportation agencies to provide transportation services to segments of public is taxable.
  10 WTD 332 90-385   PUBLIC UTILITY TAX -- TAXICABS -- URBAN TRANSPORTATION.The taxpayer's gross receipts from the taxi business are subject to the public utility tax with no deductions for compensation paid to drivers, who were under taxpayer's direction and control.
  10 WTD 332 90-385   PUBLIC UTILITY TAX -- TAXICABS -- URBAN TRANSPORTATION.Income received by taxi cab business from transporting elderly and physically challenged passengers is subject to public utility tax, just like income from other passengers is taxed.
  11 WTD 87 90-370   PUBLIC UTILITY TAX -- URBAN TRANSPORTATION-- MOTOR TRANSPORTATION-- CABULANCES.Merely because cabulances are equipped with wheelchair lifts to transport physically challenged persons does not convert the vehicles into ambulances or their operations into ambulance services.State and local governments strictly regulate ambulances and ambulance operations regarding their medical equipment/supplies, drug contents and personnel with paramedic training. In contrast, cabulances provide only a taxi service for physically challenged persons.Cabulances and their drivers do not offer medical services.
  11 WTD 163 91-110   EXTRACTING B&O TAX -- MOTOR TRANSPORTATION PUT TAX -- LOG HAULING ACTIVITY -- LOG LOADING ACTIVITY -- DELIVERY CONTRACT WITH BOTH ACTIVITIES.Where the taxpayer has a delivery contract to transport logs and the contract necessitates that the taxpayer perform logging and loading activities, the income from the contract is proportionately subject to Extracting B&O tax and Motor Transportation Public Utility Tax.
  11 WTD 337 91-164   CABULANCES -- URBAN OR MOTOR TRANSPORTATION BUSINESS.Cabulances which are not equipped or staffed to perform medical services should be classified as either Urban or Motor Transportation Business and not under Service B&O.
  11 WTD 337 91-164   TAXI CABS -- FOR PROFIT CORPORATION -- ELDERLY OR PHYSICALLY-CHALLENGED PASSENGERS.The taxpayer/taxi cab company is a for profit corporation.Its income from fares paid by or for elderly or physically-challenged passengers is not exempt from the public utility tax.Taxpayer must be a public social agency or a private, nonprofit entity providing ride sharing for the elderly or handicapped to qualify for such an exemption.
  11 WTD 337 91-164   TAXI CAB RENTALS/LEASES -- INDEPENDENT DRIVERS/LESSEES.Income received by taxpayer taxi cab company for leasing/renting cabs to independent drivers is subject to retailing B& O and retail sales tax.
  11 WTD 337 91-164   TAXI CABS -- INDEPENDENT DRIVERS/LESSEES -- ADMINISTRATIVE AND DISPATCH SERVICES -- SERVICE B&O -- RETAILING B&O-- SALES TAX.Dispatching and administrative services provided to independent taxi drivers/lessees for a fee are not incidental to urban transportation business because the taxi company/dispatcher itself is not hauling for hire in these instances.Rather, income from dispatching when it is an optional service to the drivers and separately charged is taxable under Service B&O. By contrast, when dispatching is required as part of the car rental, such income is taxable under Retailing B&O and retail sales tax.Similarly, income is taxable under Service B&O when administrative services are separately charged and not related to the car rentals/leases.When administrative services are related to the car rentals, the income is taxable under Retailing B&O and retail sales tax.
  11 WTD 361 91-175   PUBLIC UTILITY TAX -- URBAN TRANSPORTATION -- NO DEDUCTIONS.Where the taxpayer, a taxi cab company, does not jointly furnish urban transportation services with another person taxable under the same chapter and report gross income, it is liable for the public utility tax on the gross income without any deduction for labor costs or any other expense whatsoever paid or accrued.
  13 WTD 133 92-246R   TRANSPORTATION -- PUBLIC UTILITY TAX -- COMMERCE EXPORTS -- LOGS.The taxation of local transportation services does not violate the Commerce Clause or the Import and Export Clause even if the transportation services are used in getting exports to a port.
  13 WTD 369 93-240   PUBLIC UTILITY TAX -- MOTOR TRANSPORTATION -- PLACE OF SERVICE -- INTERSTATE COMMERCE INTERSTATE BILL OF LADING -- ABSENCE THEREOF.When a taxpayer is paid for hauling entirely within Washington absent an interstate bill of lading, it is subject to Motor Transportation (or Urban Transportation) public utility tax. Proof that the property itself is the subject of an interstate or foreign transaction, absent a through bill of lading across state lines, does not qualify for deduction.
  16 WTD 102 96-134   PUBLIC UTILITY TAX -- URBAN TRANSPORTATION BUSINESS -- MOTOR TRANSPORTATION BUSINESS -- ORIGINS AND DESTINATIONS.When determining whether a for-hire haul is subject to the urban transportation rate or the motor transportation rate, the trip is measured from the point of origin to the point of destination without regard to the actual route taken.
  16 WTD 102 96-134   PUBLIC UTILITY TAX -- URBAN TRANSPORTATION BUSINESS -- STATUTORY CONSTRUCTION:Urban transportation business pertains to operating a motor vehicle carrying persons or property for-hire within the corporate limits of a city, or within five miles of the corporate limits thereof, or operating entirely within and between two cities whose corporate limits are not more than five miles apart or within five miles of the corporate limits of either city.Three or more neighboring cities may not be linked together to create an urban commercial zone for purposes of applying the urban transportation tax classification.
  16 WTD 102 96-134   USE TAX -- EXEMPTION -- MOTOR CARRIER TRAILER -- RENTAL OR LEASE.Persons buyingtrailers solely for the purpose of renting or leasing the same without an operator are making purchases for resale and are not required to pay retail sales tax to their vendors, and use tax is not applicable against the purchasers unless there is evidence of intervening use of the trailers by them.Cf. Det. Nos. 85-308A and 86-20A, 1 WTD 415, 436 (1986) (a vessel was exempt from use tax because there was no evidence of actual intrastate use within Washington, although it was moored here for interstate commerce purposes.)
  17 WTD 48 97-074   PUBLIC UTILITY TAX -- B&O TAX -- HOUSEHOLD GOODS -- INTERSTATE TRANSPORTATION OF -- STORAGE AND ACCESSORIAL SERVICES.A common carrier that transports household goods for at least part of distance between an in-state and an out-of-state military base, pursuant to a through bill of lading, and who also temporarily stores such goods and/or provides other "accessorial" services related to such transportation, is exempt of public utility and B&O tax.The accessorial services are considered part of the exempt interstate transportation services.
  19 WTD 519 99-330   PUBLIC UTILITY TAXDETENTION OR DEMURRAGE CHARGESINCIDENTAL SERVICES.Detention or demurrage charges have a double purpose; one is to secure compensation for use of containers beyond the expected transportation period and the other is to provide a penalty or deterrent against undue detention.Rather than being a rental charge, a demurrage or detention charge is an incidental part of the transportation service.
  19 WTD 977 00-048   USE TAX TRUCKERS PALLETS USED IN TRANSPORTING CARGO OR EXCHANGE.Where a trucker purchases pallets in order to carry cargo owned by others, it is purchasing the pallets for its own use and fully subject to retail sales tax.Where a trucker purchases pallets for immediate exchange to manufacturers without intervening use, it is purchasing the pallets for resale.
  21 WTD 272 01-167E   RCW 82.16.047, RCW 82.04.355: PUBLIC UTILITY TAX B&O TAX -- EXEMPTIONS RIDE SHARING SPECIAL TRANSPORTATION NEEDS.Income from operating a transit agencys paratransit service is not exempt from PUT or B&O tax, because the exemption for companies transporting persons with special transportation needs applies only to public social service agencies or private nonprofit transporters.
  21 WTD 272 01-167E   RCW 82.16.050: PUBLIC UTILITY TAX DEDUCTIONS JOINTLY PROVIDED SERVICES.A taxpayer can not deduct from its gross income amounts paid to another service provider for jointly provided services when the taxpayer reports no income from the jointly provided services.
  25 WTD 138 05-0172   WAREHOUSING B&O TAX PUBLIC UTILITY TAX STORAGE MOTOR TRANSPORTATION.Gross income from the taxpayers primary activity of operating a storage warehouse holding documents is subject to warehousing B&O tax, but separate charges to deliver those documents to and from the warehouse is subject to motor transportation PUT because motor transportation services are not incidental to the storage warehouse business.
  26 WTD 143 05-0288   RULE 180; RCW 82.16.020; 49 U.S.C. 14505:MOTOR TRANSPORTATION PUT -- URBAN TRANSPORTATION PUT -- INTERSTATE COMMERCE COMMISSION TERMINATION ACT OF 1995 - TRANSPORTING RAILROAD CREWS WITHIN WASHINGTON BY MOTOR VEHICLES.The Department of Revenue is not preempted by federal law (49 U.S.C. 14505) from assessing public utility tax on the taxpayers gross receipts earned from transporting railroad crews by motor vehicles between points within the state of Washington.
  32 WTD 16 11-0298 01/10/2013 RULE 180; RCW 82.16.020(1)(f): PUBLIC UTILITY TAX – MOTOR CONTRACT CARRIER – INTRASTATE HAULS: Gross income earned by a motor contract carrier for the intrastate hauling of recyclable materials for an affiliated, but separately registered LLC is subject to motor transportation business PUT.
       
OTHER: