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WAC 19301 Multiple activities tax credits.  
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
       
WAC: 458-20-19301   11/06/1987 Multiple activities tax credits.
         
         
RCW:        
  82.04.020   1975 "Tax year," "taxable year."
  82.04.230   2006 Tax upon extractors.
  82.04.240   2004 Tax on manufacturers.
  82.04.260   2008 Tax on manufacturers and processors of various foods and by-products -- Research and development organizations -- Travel agents -- Certain international activities -- Stevedoring and associated activities -- Low-level waste disposers -- Insurance agents, brokers, and solicitors--Hospitals -- Commercial airplane activities -- Timber product activities -- Canned salmon processors.
  82.04.4286   1980 Deductions -- Nontaxable business.
  82.04.440   2006 Credit -- Persons taxable on multiple activities.
  82.04.450   1983 Value of products, how determined.
  82.32.050   2008 Deficient tax or penalty payments -- Notice -- Interest -- Limitations
  82.32.070   1999 Records to be preserved -- Examination -- Estoppel to question assessment -- Unified business identifier account number records.
         
         
         
ETA: 3085.2009 2/2/09 Eligibility of taxes for multiple activities tax credits (MATC)
  537.04.19301 3/11/88 Effective Date for Claiming MATC Credits - This document explains that the State Supreme Court held that the effective date for claiming all MATC credits is June 1, 1987.  This information is no longer needed.  Cancelled by ETA 2003 -23s  6/30/00.
  543.04.19301 9/30/94 ELIGIBILITY OF TAXES FOR MULTIPLE ACTIVITIES TAX CREDIT (MATC) Revised 2/2/09 See ETA 3085.2009
         
         
INDUSTRY GUIDES:      
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WTD: 4 WTD 141 87-312   B&O TAX -- MULTIPLE ACTIVITIES TAX CREDIT -- NATIONAL CAN.Effective June 1, 1987, Washington manufacturers selling outside this state may take a credit against their manufacturing B&O tax for "gross receipts taxes" paid to another state on the same products being taxed in Washington.
  4 WTD 229 87-342   B&O TAX -- MULTIPLE ACTIVITIES EXEMPTION -- TYLER PIPE.The multiple activities exemption, RCW 82.04.440, which the Court declared unconstitutional in Tyler Pipe Industries, Inc. v. Department of Revenue, is not at issue when an out-of-state seller's only business activity is making wholesale sales.
  5 WTD 93 88-40   B&O -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDITY -- REFUND. For periods beginning before June 23, 1987, no refunds are granted. Tyler Pipe Indus. v. Washington Dep't of Rev., 483 U.S. ___, 97 L.Ed.2d 199, 107 S.Ct. 2810 (1987) (National Can). F.I.D.
  5 WTD 93 88-40   B&O -- CREDITS -- MULTIPLE ACTIVITIES. For periods beginning on or after June 23, 1987, taxpayers who are engaged in multiple business activities are entitled to take credits for similar taxes paid. F.I.D.
  5 WTD 179 88-155   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDATION. The RCW 82.04.440 multiple activities exemption was ruled unconstitutional in Tyler Pipe Industries, Inc. v. Washington Department of Revenue, 483 U.S.___, 97 L.Ed.2d 199, 107 S. Ct. 2810 (1987).The issue of remedy was remanded to the Washington Supreme Court.
  5 WTD 179 88-155   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- REFUNDS -- RETROACTIVITY. The Washington Supreme Court in National Can Corporation v. Department of Revenue, and Tyler Pipe Industries, Inc. v. Department ofRevenue, 109 Wn.2d 878 (1988) held that the U.S. Supreme Court decision in Tyler Pipe, which invalidated the multiple activities exemption of the B&O tax, applied prospectively only, and that RCW 82.04.4286 and 82.32.060 did not require the State to refund taxes paid or excuse taxes owed before the court decision.Taxes are therefore lawfully due for periods prior to June 23, 1987 in accordance with the multiple activities exemption.
  5 WTD 225 88-138   B&O TAX -- CREDIT -- MULTIPLE ACTIVITIES -- OUT-OF-STATE MANUFACTURING -- IN-STATE SALES. Credit amount claimed must be based on manufacturing gross receipts taxes paid in another jurisdiction on those products actually sold in Washington.The amount of the credit shall not exceed the Washington B&O tax liability with respect to the sale of those products, and the credit cannot be applied against the use tax due.
  5 WTD 241 88-167   B&O TAX -- CREDIT -- MULTIPLE ACTIVITIES -- NATIONAL CAN.Effective June 1, 1987, Washington manufacturers selling outside this state may take a credit against their manufacturing B&O tax for "gross receipts taxes" paid to another state on the same products being taxed in Washington.
  6 WTD 55 88-232   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDATION -- PROSPECTIVE APPLICATION -- POST-DECISION ASSESSMENTS. Taxes for earlier reporting periods which were not assessed until after the multiple activities exemption was determined to be unconstitutional by the U.S. Supreme Court on June 23, 1987 still fall within the prospective application of Tyler Pipe and can be collected by the state.
  6 WTD 83 87-214A   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDATION. The RCW 82.04.440 multiple activities exemption was ruled unconstitutional in Tyler Pipe Industries, Inc. v. Washington Department of Revenue, 483 U.S.___, 97 L.Ed.2d 199, 107 S.Ct.2810 (1987). The issue of remedy was remanded to the Washington Supreme Court.
  6 WTD 83 87-214A   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- REFUNDS -- RETROACTIVITY. The Washington Supreme Court in Tyler Pipe Industries, Inc. v. Department of Revenue, 109 Wn.2d878, cert. denied, 56 U.S.L.W. 3828 (1988) held that the U.S. Supreme Court decision in Tyler Pipe, which invalidated the multiple activities exemption of the B&O tax, applied prospectively only, and that RCW 82.04.4286 and 82.32.060 did not require the State to refund taxes paid before the filing of a court decision invalidating a tax statute if the decision applies prospectively only.
  6 WTD 213 88-116A   B&O TAX -- CREDITS (MATC) -- MULTIPLE ACTIVITIES -- GROSS RECEIPT TAXES -- DEFINITION -- EXCLUSION OF INCOME TAX -- CONSTITUTIONALITY -- ADMINISTRATIVE POWER. The Department of Revenue is without power to declare a statute unconstitutional.Bare v. Gorton, 84 Wn.2d 380, 526 P.2d 379 (1974).
  6 WTD 213 88-116A   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- CONSTITUTIONALITY --TAXES DUE.The U.S. Supreme Court did not strike down the manufacturing tax or the selling tax; rather, it struck down the multiple activities exemption. Thus, after the decision on June 23, 1987, all taxes remained due and the remedy is to use the multiple activities tax credits (MATC).Tyler Pipe Indust., Inc. v. Washington Dept of Revenue, 483 U.S. ___, 97 L.Ed.2d 199, 107 S. Ct. 2810 (1987).
  6 WTD 247 88-296   B&O TAX -- CREDIT -- MULTIPLE ACTIVITIES (MATC) -- CANADIAN TAX -- "SALES" -- DETERMINATION. The Department will look to the substance of the foreign activity involved which is subjected to a foreign tax--and not merely the name given it by that jurisdiction's taxing authority - to determine whether the activity taxed was a "sale" under Washington law.If the activity giving rise to the foreign tax is a "sale" as defined by the Washington Revenue Act, the foreign tax paid by the taxpayer will be considered to be one on "sales" albeit tat its name may differ under another taxing jurisdiction.
  6 WTD 255 88-303   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDATION. The RCW 82.04.440 multiple activities exemption was ruled unconstitutional in Tyler Pipe Industries, Inc. v. Washington Department of Revenue, 483 U.S. ___, 97 L.Ed.2d 199, 107 S.Ct. 2810 (1987). The issue of remedy was remanded to the Washington Supreme Court.
  6 WTD 255 88-303   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDATION -- POST-DECISION ASSESSMENTS.Assessments issued after the U.S.Supreme Court decision in Tyler Pipe on June 23, 1987 for taxes attributable to reporting periods prior to that time, are lawfully collectible by the state.National Can and Ashland cited.
  6 WTD 349 88-339   B&O TAX -- EXEMPTION MULTIPLE ACTIVITIES -- NATIONAL CAN -- REFUNDS.Refunds of business and occupation tax paid prior to June 23, 1987 will not be granted if the basis for the refund request is Tyler Pipe v. Washington,483 U.S. ___, 97 L. Ed 2d 199, 107 S. Ct. 2810 (1987).
  6 WTD 357 88-232A   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- INVALIDATION -- PROSPECTIVE APPLICATION -- POST-NATIONAL CAN/TYLER PIPE ASSESSMENTS.Taxes for earlier reporting periods which were not assessed until after the multiple activities exemption was determined to be unconstitutional by the U.S. Supreme Court on June 23, 1987 still fall within the prospective application of Tyler Pipe and can be collected by the state. Affirming Det. No. 88-232.
  7 WTD 79 88-459   B&O TAX -- EXEMPTION -- MULTIPLE ACTIVITIES -- UNCONSTITUTIONAL TAX -- PROSPECTIVE APPLICATION -- ASSESSMENTS ISSUED BUT NOT COLLECTED.The Washington Supreme Court in National Can Corporation v. Department of Revenue, and Tyler PipeIndustries, Inc. v. Department of Revenue, 109 Wn. 2d 878, cert. denied, 56 U.S. L. W. 3828, (1988), held that the U.S. Supreme Court decision in Tyler Pipe, which invalidated the multiple activities exemption of the B&O tax, applied to prospective taxes only.
  7 WTD 289 89-188   MULTIPLE ACTIVITIES EXEMPTION -- INVALIDATION -- PROSPECTIVE APPLICATION -- POST-DECISION ASSESSMENTS. Assessments issued after the United States Supreme Court decision in Tyler Pipe on June 23, 1987, for taxes attributable to reporting periods prior to that time, are lawfully collectible by the state.Armco Steel v. Department of Treasury, Corporation Franchise Fee Division, 358 N.W.2d 839 (Mich. 1984);Snow's Mobile Homes, Inc. v. Morgan 80 Wn.2d 283 (1972); State ex.rel.Matteson v. Luecke, 260 N.W. 206 (Minn 1935); Perk v. City of Euclid, 244 N.E. 2d 475 (Ohio, 1969).
  9 WTD 149 90-83   MATC -- GROSS RECEIPTS TAX -- DEFINITION -- TAX SEPARATELY STATED.Because as a matter of custom, the New Mexico gross receipts tax is separately stated from the sales price, it does not meet the definition of a "Gross receipts tax" under the RCW 82.04.440. [Accord:ETB 543.04.19301]
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Commerce Clause -- Test.A state tax on interstate business is valid under the commerce clause of the United States Constitution when it meets the 4-part test of Complete Auto Transit, v. Brady, U.S. 274:(1) it must tax only those interstate activities having a sufficient connection to the state; (2) it must be fairly apportioned to the taxpayer's activities within the state; (3) it must not discriminate against interstate commerce; and (4) it must be fairly related to the services provided by the state.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Commerce Clause -- Discrimination -- Facial Discrimination.A taxing statute is facially discriminatory only if intrastate businesses benefit from a credit not available to interstate businesses.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Commerce Clause -- Discrimination -- Internal Consistency.For purposes of analyzing the impact of a local tax on interstate commerce, a taxing scheme is internally consistent when imposition of an identical tax by every jurisdiction would not impermissibly burden interstate commerce.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Offsetting Credits.The Constitution does not require states to grant credits for dissimilar taxes.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Wholesalers -- Inter- and Intrastate Manufacturers -- Unequal Privileges. The privilege of wholesaling a product in this jurisdiction cannot be taxed by another jurisdiction and, under RCW 82.04, a business pays only one tax for that privilege.Whether the same business pays an additional tax for the privilege of manufacturing its product is irrelevant to the constitutionality of the wholesale tax.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Commerce Clause -- Legislative Intent -- Effect.The legislature's motive in enacting a tax statute is irrelevant to a determination of whether the statute is unconstitutional under the commerce clause of the United States Constitution.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Commerce Clause -- Apportionment -- Burden of Taxation.The increased cost of doing business attributable to state taxation of interstate business is not a violation of the commerce clause unless the tax fails to meet the 4-part Complete Auto Transit (430 U.S. 274) test.
  9 WTD 199 114 Wn.2d 236   Constitutional Law -- Equal Protection Classes of Taxpayers.A tax classification having a legitimate purpose to which the tax is rationally related meets equal protection standards.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Due Process -- Test.Due process requires that a local tax on interstate business have a minimal connection between the businesses and the state and that there be a rational relationship between the income taxed and the intrastate values of the businesses.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Two-way Credits -- Validity. The scheme of 2-way credits available for interstate businesses under the 1987 amendment to the business and occupation tax (RCW 82.04.440) meets the requirements of the commerce, equal protection, and due process clauses.
  9 WTD 199 114 Wn.2d 236   Business and Occupation Tax -- Interstate Business -- Two-Way Credits -- Retroactivity.The scheme of 2-way credits established in the 1987 amendment to the business and occupation tax (RCW 82.04.440) applies retroactively. Such application does not violatethe separation of powers doctrine and does not convert the amendment into unconstitutional special legislation.
  10 WTD 278 89-188A   RCW 82.04.440 -- MULTIPLE ACTIVITIES EXEMPTION -- INVALIDATION -- TYLER PIPE -- PROSPECTIVE APPLICATION.Tyler Pipe Indus., Inc. v. Department of Rev., 483 U.S. 232, 107 S.Ct. 2810, 97 L.Ed. 2d 199 (1987), which invalidated the multiple activities exemption of Washington's B&O tax, applies prospectively only.No distinction exists between taxpayers who paid their taxes before the decision and sought refunds, taxpayers who had outstanding but unpaid assessments before the decision, and taxpayers who had outstanding tax liabilities but had not yet been assessed.
  10 WTD 278 89-188A   RCW 82.04.440 -- B&O TAX -- INTERSTATE BUSINESSES -- TWO-WAY CREDITS -- INTERIM PERIOD -- RETROACTIVITY.The 1987 credit law applies retroactively to the period between June 23, 1987, the date Tyler Pipe was issued, and August 11th, 1987, the date the Legislature passed the credit law.American National Can Corp. v. Department of Rev., 114 Wn.2d 236 (1990), cert. den. 59 U.S.L.W. 3250 ( 1990).
  11 WTD 177 91-142   LANDOWNER -- SALES OF LOGS -- B&O TAX -- EXTRACTOR -- AMOUNT SUBJECT TO TAX.When a landowner retains ownership of timber until it is scaled, the landowner is the extractor and the wholesaler of the timber, and subject to B&O tax on its gross proceeds for the timber.It is allowed a credit for the lesser of the wholesaling or extracting tax under Rule 19301.Accord:ETB 541.
  11 WTD 453 91-264   MATC -- B&O TAX -- TYLER PIPE -- CONSTITUTIONALITY.Taxpayers may not get a refund or a reduction of an assessment resulting from the Tyler Pipe decision.
  12 WTD 237 92-270   B&O TAX -- MULTIPLE ACTIVITIES TAX CREDITS -- QUALIFYING TAXES -- ALASKA FISHERIES BUSINESS TAX.The Alaska Fisheries Business Tax qualifies for the Multiple Activities Tax Credits provided in RCW 82.04.440.
  12 WTD 315 91-030ER   B&O TAXES -- INVALIDATION -- TYLER PIPE -- RETROACTIVITY -- POST DECISION ASSESSMENTS.Tyler Pipe Indus., Inc. v. Department of Rev., 483 U.S. 232, 107 S.Ct. 2810, 97 L.Ed. 2d 199 ( 1987), which invalidated the multiple activities exemption of Washington's B&O tax, applies prospectively only.No distinction exists between taxpayers who paid their taxes before the decision and sought refunds, taxpayers who had outstanding but unpaid assessments before the decision, and taxpayers who had outstanding tax liabilities but had not yet been assessed.Accord:Martin Nygaard Logging Company and Nygaard Logging Inc, v. Department of Revenue, BTA Docket No. 91-10, (1991).
  12 WTD 355 92-110   B&O TAX -- MATC -- ALASKA OIL PRODUCTION TAX -- GROSS RECEIPTS TAX.MATC granted for amounts paid to the state of Alaska for oil production taxes to the extent the amounts due were computed and paid through the percentage-of-value method.
  12 WTD 365 92-110R   B&O TAX -- MATC -- ALASKA OIL PRODUCTION TAX -- GROSS RECEIPTS TAX.MATC granted for amounts paid to the state of Alaska for oil production taxes to the extent the amounts due were computed and paid through the percentage-of-value method even though the applicable tax rate was computed using an economic limit factor.
  13 WTD 1 86-31ER   B&O TAXES -- TYLER PIPE -- RELIEF AVAILABLE -- NATIONAL CAN II.The holding by the Washington State Supreme Court in "National Can II" has not been effectively overruled by the United States Supreme Court in its recent line of cases.The relief available for Tyler Pipe-type litigants remains limited to prospective application and the credit fix.
  13 WTD 18 91-020   B&O TAX -- MANUFACTURING AND SELLING IN WASHINGTON -- MATC.A Washington taxpayer manufacturing and selling the same in Washington will be liable for both the manufacturing and appropriate selling tax (retailing or wholesaling), with an entitlement for the Multiple Activities Tax Credit (MATC).
  13 WTD 18 91-020   THIS DETERMINATION HAS BEEN OVERRULED OR MODIFIED IN WHOLE OR PART BY DET.NO. 01-006,
20 WTD 124 (1999)
  13 WTD 51 92-044   MATC -- DEMONSTRATORS -- INTERVENING USE BETWEEN MANUFACTURE AND SALE.When a taxpayer manufactures a product for ultimate sale with intervening use as a sales demonstrator, it may avail itself of the RCW 82.04.440 multiple activities tax exemption/credit (as applicable).
  15 WTD 1 94-095   MULTIPLE ACTIVITIES. The B&O tax is imposed on the privilege of engaging in virtually all business activities in Washington.
  15 WTD 1 94-095   RCW 82.04.440:MULTIPLE ACTIVITIES TAX CREDIT -- EXTRACTING -- WHOLESALING.A taxpayer may take a credit against his wholesaling tax obligations to the extent that he has paid extracting taxes with respect to the extracting of products sold in this state.A taxpayer may not take a credit against his wholesaling tax obligations to the extent that he has paid extracting for hire taxes with respect to the extracting of products sold in this state.
         
         
         
OTHER: