home home Find a law or rule home Tax Research Index home Research Index Files home Mri194-211_files home Tax Research Index Tax Research Index
WAC 195 Taxes, deductibility.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-195   03/30/1983 Taxes deductibility.
    07/10/1999 Taxes deductibility.
       
RCW: 82.04.070   1961 "Gross proceeds of sales."
  82.04.080   1961 "Gross income of the business."
  82.04.250   1998 Tax on retailers.
  82.04.4285   1980 Deductions -- Motor vehicle fuel and special fuel taxes.
  82.08.010   1985 "Selling Price"
  82.16.010   1996 Definitions.
  82.16.050(1)   1989 Deductions in computing tax.
       
ETA:      
       
INDUSTRY GUIDES:      
       
SPECIAL NOTICES:      
Subject Title Reference:      
    09/05/2000 What You Need to Know about Itemizing the B&O Tax
Enhanced 911/ Telecommunications   11/14/2002 New State Enhanced 911 Tax on Cellular Telephone Service
Enhanced 911 11/21/2013 E911 Taxes Must Be Collected by Sellers of Prepaid Wireless
       
DIRECTIVE: NONE      
       
RPM: NONE      
         
WTD: 1 WTD 99 86-233   B&O TAX -- DEDUCTIONS -- SATELLITE FEES, COPYRIGHT FEES & FRANCHISE/UTILITY TAXES -- CABLE TELEVISION CO. Satellite and copyright fees passed on to Washington subscribers by Washington cable company are fully B&O taxable. Taxpayer's activity is entirely intrastate, thus no commerce clause violation. Franchise tax not deductible because not collected by taxpayer as agent for taxing authority.
  5 WTD 65 88-26   SALESTAX -- SELLING PRICE -- SUPERFUND CHARGE. The superfund charge of $0.002 per gallon of petroleum products is subject to sales tax. It is not a tax on the consumer.
  11 WTD 139 91-103   B&O TAX -- DEDUCTION -- WINE TAX -- REIMBURSEMENT OF. The federal wine tax is a liquor tax for the purpose of applying Rule195. Liquor taxes are not deductible from the measure of the B&O tax even by a party who only stores wine for the maker of the wine and is reimbursed by the maker for the tax.
  15 WTD 26 94-116   RETAIL SALES TAX -- B&O TAX MEASURE -- MUNICIPAL TAXES -- CELLULAR PHONE SERVICE. Receipts attributed to municipal taxes imposed upon cellular phone companies and separately stated on their invoices were properly included in the gross proceeds of sales from providing telephone service in measuring Business & Occupation and retail sales taxes.
  16 WTD 117 96-147   B&O TAX -- MEASURE OF TAX.A taxpayer may not treat collected retail sales tax as a reduction of the selling price for the purpose of the measure of the tax.The B&O tax is imposed on the business and cannot be charged to the buyer.
  18 WTD 327 98-115   DEDUCTIBILITY OF AIRCRAFT FUEL TAX.A fuel distributor may deduct from its gross income, for B&O tax purposes, the amounts it collected from customers for the state aircraft fuel taxes, similar to how retailers deduct collected retail sales taxes.
  19 WTD 332 98-208   PUBLIC UTILITY TAX – MUNICIPAL TAXES – DEDUCTIONS.Public utility taxes imposed by a municipality and received by the municipality’s public utility are part of the gross income of the utility and are included in the measure of the state’s public utility tax.
  19 WTD 817 99-215   RETAILING B&O TAX – GROSS PROCEEDS OF SALES -- DEDUCTION -- FEDERAL AVIATION FUEL AND LEAKING UNDERGROUND STORAGE TANK (“LUST”) TAXES.Taxes received by a taxpayer as collecting agent and paid directly to the federal government are deductible under Rule 195.On the other hand, where the taxes are primarily imposed upon the taxpayer, the taxpayer will not be entitled to deduct the taxes because in such case the taxes are simply a cost of doing business.Federal aviation fuel and LUST taxes are imposed on the taxpayer and, as such, are not deductible for B&O tax purposes.
  19 WTD 834 99-215R   RETAILING B&O TAX – GROSS PROCEEDS OF SALES -- DEDUCTION -- FEDERAL AVIATION FUEL AND LEAKING UNDERGROUND STORAGE TANK (“LUST”) TAXES.Taxes received by a taxpayer as collecting agent and paid directly to the federal government are deductible under Rule 195.On the other hand, where the taxes are primarily imposed upon the taxpayer, the taxpayer will not be entitled to deduct the taxes because in such case the taxes are simply a cost of doing business.Federal aviation fuel and LUST taxes are imposed on the taxpayer and, as such, are not deductible for B&O tax purposes.
  19 WTD 986 00-057   PUBLIC UTILITY TAX ON FUEL TRANSFER FEES CHARGED TO CUSTOMERS - Rule 195 explains the circumstances under which taxes may be deducted from the gross amount reported as the measure of tax under PUT, and lists examples of specific deductible and nondeductible taxes.The rule expressly provides: “License and regulatory fees are not deductible.”
  22 WTD 103 00-124   B&O TAX -- MEASURE OF TAX ON EXCHANGE AGREEMENTS -- GROSS PROCEEDS OF SALE -- COMPARABLE SALES -- PLATTS -- SUPERFUND TAXES.When determining the value of products received the Department uses Platts (an industry price reporting service) that includes in its published prices the Superfund Tax.The Superfund Tax is not deductible from the stated value.
  23 WTD 302 04-0087   REFUSE AND SOLID WASTE COLLECTION TAX – MEASURE OF TAX.A city imposed solid waste tax that a waste disposal business collects from its customers is a cost of doing business that is not excludable from “gross income of the business” and measure of the Refuse and Solid Waste Collection Tax.
  32 WTD 7 11-0006 01/10/2013 RCW 82.08.190 AND .195: RETAIL SALES TAX – RETAILING B&O TAX – BUNDLED TRANSACTION –SALE OF DINNER AND MUSICAL/DRAMA SHOW – NON-ITEMIZED ADMISSION CHARGE. The sale of dinner (generally subject to sales tax) and a musical/drama show (generally not subject to sales tax) for one non-itemized admission charge is a bundled transaction subject to retail sales tax because the meal is not essential or indispensible to the viewing of the performance.
OTHER: