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WAC 185 Tax on tobacco products.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-185 04/26/10 WAC 458-20-185explains the tax liabilities of persons engaged in business as retailers or distributors of tobacco products other than cigarettes. 
 
The Department amended this rule to recognize SHB 1435 (chapter 154, Laws of 2009); which provides authority for the Washington State Liquor Control Board to issue and enforce the licensing requirements under RCW 82.26.060, 82.26.150, 82.26.180, 82.26.190, 82.26.210, and 82.26.220.   This rule action does not include changes from the recently concluded 2010 legislative session, to be incorporated into the rule in a future rulemaking.
  458-20-185   01/26/2006 Tax on tobacco products. Emergency rule effective 1/26/06.
    05/03/1994 Tax on tobacco products.Effective 6/3/94.Updated 7/3/03.
    02/07/2007 Tax on tobacco products. Effective 03/10/07.
RCW:      
  82.04.120   1997 To manufacture
  82.26   7/1/71 Tax on Tobacco Products
  82.26.020 (2)   2005 Tax imposed -- Deposit of tax revenue.
  82.26.030   07/01/05 Legislative intent -- Purpose. Imposition of tax
  82.26.060   2005 Books and records to be preserved -- Entry and inspection by department.
  82.26.070   2005 Preservation of invoices of sales to other than ultimate consumer.
  82.26.080   2005 Retailer invoices -- Requirements -- Inspection.
  82.26.110   2007 When credit may be obtained for tax paid.
  82.26.121   1997 Enforcement -- Appointment of officers of liquor control board.
  82.32.300   1997 Department of revenue to administer -- Chapters enforced by liquor control board.
ETA: None      
INDUSTRY GUIDES:      
SPECIAL NOTICES:      
Subject Title Reference:      
Tobacco 05/25/2012 Commercial Cigarette-Making Machines Operated at Retail Establishments
and the Taxation of Roll-Your-Own Cigarettes
Tobacco   09/07/2010 Moist Snuff Tax Rate and Classification Changes
Tobacco   04/15/10 Tobacco Tax Rate Increase & Definition Changes
Cigarette   04/13/10 Cigarette Tax Rate Increase
Tobacco   04/13/10 Cigarette Tax Rate Increase
Tobacco   07/01/2008 Cigarettes Sold in Washington Required to be Reduced Ignition Propensity Certified
Tobacco   08/08/2008 Cigarettes Sold in Washington Required to be Certified as Reduced Ignition Propensity Revised
Tobacco   05/24/2005 Cigarette and Tobacco Products Tax Changes
DIRECTIVE:      
RPM: None      
WTD: 28 WTD 64 08-0214 4/30/09 RCW 82.26.020:  OTHER TOBACCO PRODUCTS TAX – BLUNT WRAPS.  Blunt wraps are a tobacco product defined in RCW 82.26.010 and Rule 185 and distribution of the same is thus subject to “Other Tobacco Products” tax.
  28 WTD 64 08-0214 4/30/09 RCW 82.26.020:  OTHER TOBACCO PRODUCTS TAX – BLUNT WRAPS.  Blunt wraps are a tobacco product defined in RCW 82.26.010 and Rule 185 and distribution of the same is thus subject to “Other Tobacco Products” tax.
  17 WTD 1 98-006E   TOBACCO TAX -- “CLASS (A)” DISTRIBUTORS -- OUT-OF-STATE SELLERS -- SALES TO WASHINGTON WHOLESALERS.Out-of-state companies selling tobacco products to Washington wholesalers are not taxable as class (a) distributors when selling from a stock of goods located outside this state, even though they may engage in nexus-producing sales activities in this state.
  17 WTD 1 98-006E   TOBACCO TAX -- “CLASS (A)” DISTRIBUTORS -- OUT-OF-STATE SELLERS -- SAMPLES DISTRIBUTED IN WASHINGTON.Out-of-state companies distributing samples from a stock of goods located in this state are taxable as (a) distributors liable for the tobacco products tax on samples brought into the sate for distribution.
  17 WTD 1 98-006E   TOBACCO TAX -- “CLASS (C)” DISTRIBUTORS -- OUT-OF-STATE SELLERS --SALES TO WASHINGTON RETAILERS.Out-of-state companies selling and shipping to Washington retailers from out-of-state stock of goods are class (c) distributors.If an out-of-state call (c) distributor maintains nexus-producing activities in this state, such as a sales force, it will be required to register with the Department and pay the tobacco products tax on its interstate sales to Washington retailers.If an out-of state class (c) distributor does not maintain a sales force or otherwise engage in nexus-forming activities within this state, it cannot be forced to register and pay the tobacco products tax on its interstate sales to Washington retailers.Such class (c) distributors may elect to register and pay the tax.If a class (c) distributor elects not to register and the pay the tax, the Washington retailers to whom it sells will be liable for the tax as class (a) distributors.
  17 WTD 1 98-006E   TOBACCO TAX -- “CLASS (C)” DISTRIBUTORS -- OUT-OF-STATE SELLERS --SALES TO WASHINGTON DUAL RETAILERS/WHOLESALERS.A registered out-of-state seller whose Washington buyer is both a retailer and a wholesaler is a class (c) distributor to the extent the buyer sells the product at retail.If the products to be sold by the buyer at retail cannot be identified by the class (c) distributor, the Department will permit the class (c) distributor to shift its tax burden by written agreement as to these sales to the buyer as a class a) distributor.
  24 WTD 309 05-0006E   TOBACCO PRODUCTS TAX – OUT-OF-STATE SALES – CREDIT FOR.A Washington-based internet tobacco products seller does not qualify for a credit against its tobacco products tax when its out-of-state sales are to consumers, as opposed to retailers.
  24 WTD 309 05-0006E   TOBACCO PRODUCTS TAX -- INTERNET TAX FREEDOM ACT (ITFA) – APPLICABILITY OF.The tobacco products tax does not violate the ITFA because it is not a tax on internet access, nor does it impose a discriminatory burden on electronic commerce.
  24 WTD 413 05-0045   B&O TAX – AGENT -- TOBACCO PRODUCTS.A person who claims to be acting merely as agent in making purchases of tobacco products will have such claim recognized, for B&O tax purposes, only when the contract or agreement clearly establishes the relationship of principle and agent and the person’s books and records comply with requirements of WAC 458-20-159.
  24 WTD 413 05-0045   TOBACCO PRODUCTS TAX – DISTRIBUTOR.The Tobacco Products Tax is imposed only once, upon the “distributor,” as defined in RCW 82.26.010.A person was liable for tax as the distributor of the tobacco products when the person was engaged in the business of selling tobacco products in this state, was the first person who handled for sale tobacco products that were within this state but upon which tax had not been imposed, and was not acting merely as an agent in purchasing and receiving payment for the tobacco products.
  24 WTD 413 05-0045   TOBACCO PRODUCTS TAX – CLAIM OF AGENCY.It would be incompatible with the recordkeeping requirements of Chapter 82.26 RCW to recognize a claim that a person was acting merely as an agent in purchasing and receiving payment for tobacco products, when the person did not maintain any records documenting the name and address of the alleged principal or the dates and quantities of purchases allegedly made for the principal.
  24 WTD 413 05-0045   TOBACCO PRODUCTS TAX – CLAIM OF AGENCY.The burden is on the taxpayer to establish the existence of an agency relationship.The Department will not recognize a claim that a person was acting merely as the agent of another in purchasing and receiving payment for tobacco products when the taxpayer provides no evidence that he or she was acting under the control of the purported principal.
OTHER: