| WAC 180 |
Motor
transportation, urban transportation. |
| SOURCE |
DOCUMENT |
DETER. NO |
DATE OF ISSUE |
DESCRIPTION |
| WAC: |
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: | |
|
|
| |
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. |
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