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WAC 208 Exemptions for wholesale sales of new motor vehicles between new car dealers and for accommodation sales.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-208   03/17/2003 Accommodation sales. Exemptions for adjustments of new motor vehicle inventory between new car dealers and accommodations sales.Effective 4/17/03.
    08/09/2004 Accommodation sales. Exemptions for adjustments of new motor vehicle inventory between new car dealers and accommodations sales.
RCW:      
  46.04.660   1961 Used vehicle.
  46.70.011   2006 Definitions.
  82.04.040   2004 "Sale," "casual or isolated sale," "lease or rental."
  82.04.270   1993 Tax on wholesalers.
  82.04.422   2004 Exemptions -- Wholesale sales of motor vehicles.
  82.04.425   1980 Exemptions-Accommodation sales.
ETA: 3158.2009 12/10/09 Eligibility for the B&O Tax Exemption for Wholesale Sales Between New Car Dealers When Making A Purchase Under an Asset Purchase Agreement. This Excise Tax Advisory explains how the B&O tax exemption provided by RCW 82.04.422(2) for wholesale sales of new motor vehicles between new car dealers applies when the sale is made under the terms of an "Asset Purchase Agreement" (APA).
  64.04.208   07/15/1966 INTERCOMPANY LOANS OF GASOLINE, OIL, AND SIMILAR PRODUCTSSee WAC 458-20-208 (Exemptions for adjustments of new motor vehicle inventory between new car dealers and accommodation sales). Cancelled effective 4/21/03.
  428.04.103.208   12/31/1992 EXCHANGE AGREEMENT INVOLVING INVENTORY--This ETA is cancelled effective 4/21/03. See WAC 458-20-208 (Exemptions for adjustments of new motor vehicle inventory between new car dealers and accommodation sales).
INDUSTRY GUIDES:      
         
       
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RPM: None      
         
       
WTD: 5 WTD 179 88-155   B&O TAX -- EXEMPTION -- STATUTORY CONSTRUCTION -- ACCOMMODATION SALES. Exemption will be denied when taxpayer records do not indicate sales were made to fill existing orders, additional costs are not separately invoiced and do not accurately represent those costs actually incurred by the taxpayer, and such "added costs" have never been submitted to the Department for a ruling. Yakima Fruit Growers cited in support of rule of statutory construction that statutes exempting a tax must be strictly construed in favorof the tax.
  5 WTD 179 88-155   B&O TAX -- WHOLESALING -- INTERCOMPANY TRANSACTIONS -- INTERCOMPANY TRANSFERS (LOANS) OF INVENTORY -- CLAIMED NOMINAL OR NO CONSIDERATION -- ACTUAL "REPAYMENT" IN KIND. Business and Occupation Tax under the wholesaling classification held applicable to routine intercompany transfers of inventory for no and/or "nominal consideration" because (1) Business entities do not normally give away (or transfer for only a nominal return) substantial amounts of their inventory without a business purpose, such as the promise of value in return, and (2) The taxpayers' own records reflect that they had a reasonable expectation of regaining substantially what they gave to others in the systematic and routine intercompany exchanges here at issue.The fact that the in-kind transfers may not have been exactly identical in quantity or value, or that there were no written agreements requiring such exchanges, are not dispositive.Time Oil Co. v. State cited.
  12 WTD 147 92-117   B&O TAX -- DEDUCTION -- ACCOMMODATION SALES --COMMISSIONS -- INAPPLICABILITY. The "accommodation sale" deduction applies to B&O retailing or wholesaling tax liability, not the rendition of services. Rule 208 inapplicable to the payment of commission income relative to the sale of securities. THIS DETERMINATION HAS BEEN OVERRULED OR MODIFIED IN WHOLE OR PART BY DET.NO. 01-006,
20 WTD 124 (2001).
  13 WTD 358 93-220   ACCOMMODATION SALE -- OIL EXCHANGE.Crude oil exchanges do not qualify for exemption under RCW 82.04.425 unless the recipient has a bona fide existing order.
  20 WTD 39 00-043   WHOLESALING B&O TAX – ACCOMMODATION SALE: AUTOMOBILE DEALER.Failure of an initiating automobile dealer of an accommodation sale to meet the requirement of keeping in its records a bona fide existing order of a customer prevents the dealer/taxpayer from deducting wholesaling B&O tax for that sale from its gross income.
       
         
       
OTHER: