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WAC 211 Leases or rentals of tangible personal property, bailments.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-211 02/01/10 These rules all refer to resale certificates. Proposed action is to add standard language to recognize reseller permits for sales made on or after January 1, 2010.
  458-20-211   01/24/1996 Leases or rentals of tangible personal property, bailments.Effective 2/24/96
RCW: 82.04.020   1975 "Tax year," "taxable year."
  82.04.040   2004 "Sale," "casual or isolated sale," "lease or rental."
  82.04.050   2007 "Sale at retail," "retail sale."
  82.04.190   2005 "Consumer."
  82.04.250   2008 Tax on retailers.
  82.04.270   2004 Tax on wholesalers.
  82.04.280   2006 Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, radio and television broadcasting, government contractors -- Cold storage warehouse defined -- Storage warehouse defined -- Periodical or magazine defined.
  82.04.290   2008 Tax on international investment management services or other business or service activities.
  82.08.020   2006 Tax imposed -- Retail sales -- Retail car rental.
  82.08.0261   1980 Exemptions -- Sales of personal property for use connected with private or common carriers in interstate or foreign commerce.
  82.08.0262   1998 Exemptions -- Sales of airplanes, locomotives, railroad cars, or watercraft for use in interstate or foreign commerce or outside the territorial waters of the state or airplanes sold to United States government -- Components thereof and of motor vehicles or trailers used for constructing, repairing, cleaning, etc. -- Labor and services for constructing, repairing, cleaning, etc.
  82.08.0263   1998 Exemptions -- Sales of motor vehicles and trailers for use in transporting persons or property in interstate or foreign commerce.
  82.08.0295     Repealed by 2005
  82.08.090   1975 Installment sales and leases.
  82.12.020   2005 Use tax imposed.
  82.12.0265   1980 Exemptions -- Use by bailee of tangible personal property consumed in research, development, etc., activities.
  82.12.060   2003 Installment sales or leases.
  82.14.030   2008 Sales and use taxes authorized -- Additional taxes authorized -- Maximum rates.
ETA: 3005.r109 12/28/09 Intervening use. Effective January 1, 2010, reseller permits will replace resale certificates as the means to substantiate wholesale purchases. Chapter 563, Laws of 2009.
  3005.2009 2/2/09 Intervening use
  3048.2009 2/2/09 Lease cancellation payment
  3072.2009 2/2/09 Rentals of tangible personal property used both within and without Washington
  3116.2009 2/2/09 Car Sharing Organizations
  3130.2009 2/2/09 Deductibility of repair and maintenance costs of leased property
  54.12.211 7/15/66 FLYING INSTRUCTIONS, AIRPLANE RENTALS, AND USE TAX LIABILITY Revised 2/2/09 See ETA 3005.2009
  135.04.211 8/12/66 DEDUCTIBILITY OF REPAIR AND MAINTENANCE COSTS OF LEASED PROPERTY Revised 2/2/09 See ETA 3130.2009
  158.08.211 8/19/66 DEDUCTION OF FINANCE CHARGES FROM LEASE PAYMENTS Cancelled 1/29/09. This ETA explains that the full charge to a customer under a lease with option to purchase agreement is subject to retail sales tax, and that the finance or interest component factoring into the computation of this charge may not be deducted. While not specifically noted in the document, and notwithstanding the ETA's explanation that the taxpayer entered into the lease as a "method of financing the acquisition of needed equipment," the lease at issue is a "true" (or "operating") lease, as opposed to a "financing" lease. This document is no longer needed as the taxability of both true and financing leases is addressed in WAC 458-20-211.
  283.08.211 9/30/66 SALES TAX LIABILITY ON LEASE-PURCHASE AGREEMENTS  ETA 283 is no longer needed. WAC 458-20-211 (Leases or rentals of tangible personal property, bailments) was revised in 1996 in part to address these issues.  Cancelled by ETA 2003 -4s 09/14/01.
  318.04.106. 211 12/31/92 SALES AND/OR TRADE-INS OF TANGIBLE PERSONAL PROPERTY FROM RENTAL INVENTORY - Cancelled effective December 29, 2006 This document explains that when trading-in rental property towards the purchase of new property, the lessor is making a taxable wholesale sale of the trade-in property to the dealer. This document is no longer needed because this issue is adequately addressed in WAC 458-20-247.
  337.08.211 8/11/69 LEASE CANCELLATION PAYMENT Revised 2/2/09 See ETA 3048.2009
  356.12.211 6/5/70 USE TAX:  RENTALS PUT TO PERSONAL USE Cancelled 1/29/09. This ETA explains that when a taxpayer both leases and personally uses tangible personal property (in this case a boat), the taxpayer is subject to retail sales or use tax on the value of the boat. The definition of "retail sale" in RCW 82.04.050 excludes sales of tangible personal property only if the property is not put to intervening use by the purchaser. There is no need for this document as this issue is a straightforward application of law.
  357.04.211 6/5/70 BAILMENTS:  HANDLING AND CLEANING CHARGES Cancelled 1/29/09. This ETA addresses a situation where a taxpayer charges handling fees while storing films for a customer. As a part of the handling services, the film was inspected and, when needed, cleaned before being returned to storage. The ETA concludes that the handling services were subject to service and other activities B&O tax and were not a retail sale, on the basis that the cleaning was merely incidental to the handling and there was no separate charge for the cleaning. While the explanation that retail sales tax would not apply under this scenario is correct, there are insufficient facts to determine whether or not the handling was part of the warehousing activity, in which case the handling charges would be subject to the warehousing B&O tax as explained in WAC 458-20-182(3).
  447.04.211 3/17/72 RENTALS WITHIN AND WITHOUT WASHINGTON Revised 2/2/09 See ETA 3072.2009
  520.04.211 10/10/80 WATER CONDITIONING SERVICES -This document is no longer needed. WAC 458-20-211 (Leases or rentals of tangible personal property, bailments) adequately addresses the taxability of these types of agreements. Cancelled by ETA 2003 -4s 09/14/01.
  2039.08.211 7/20/07 Car Sharing Organizations. This ETA clarifies the proper tax treatment of "carsharing" organizations. Carsharing is a system in which a fleet of cars (or other vehicles) is made available for use by members of the carshare group in a wide variety of ways. The costs and the administration of vehicle purchases, ownership, and maintenance are the responsibility of a central organizer (the Carshare Operator or CSO). Revised 2/2/09 See ETA 3116.2009
INDUSTRY GUIDES:   11/01/2011 Insurance Industry
      Construction Guide
SPECIAL NOTICES:      
Subject Title Reference:      
Transit Authorities 06/26/2013 Transit Authorities Providing Paratransit Services
Boats        
Motion Picture Companies        
      11/08/1999 "New Buyers" Retail Sales Tax Exemption Certificate
Rental Car Tax     12/27/1999 To Persons Collecting WA State's Car Rental Tax: Car Rental Tax Still Due as of 01/01/2000 Tax on Car Rentals Unaffected by Initiative 695 (I-695)
Energy Efficient Commercial Equipment     06/24/2008 Energy Efficient Commercial Equipment - Sales Tax Incentive for Purchases
DIRECTIVE: 8211.1   08/10/1987 Leased Equipment Purchased Beyond The Statute of Limitation Repealed June 30, 1999. The reporting instructions provided in this directive are incorrect.(See Det. 90-175, 9 WTD 286.69.)
  8211.2   12/03/1987 Finance Leases Repealed 6/30/2000 - This document explains the differences between finance and true leases, and provides a list of elements that generally exist in a finance lease.This issue is addressed in WAC 458-20-211 (Leases or rentals of tangible personal property, bailments).
  8211.3   02/19/1988 Boomstick Rentals Repealed effective 07/16/01.
  8211.4   06/16/1986 Lease or Sale of Irrigation Circles Repealed 6/30/2000 - This document explains that the Washington Court of Appeals held that center pivot irrigation systems and appurtenances are realty when sold with the land.It also explains that the 1983 Legislature provided a retail sales tax exemption under certain circumstances for the lease of irrigation equipment.There is no longer any need for this document.The courts decision in Western Ag. vs. Department of Revenue, 43 Wn. App. 167, 716 P.2d 310, regarding the taxation of center pivot irrigation systems is uniformly understood and applied by the Department and agricultural industry.WAC 458-20-122 (Sales of feed, seed, fertilizer, spray materials, and other tangible personal property for farm use) currently addresses the retail sales tax exemption provided to leased irrigation equipment.
RPM: None      
WTD:        
  1 WTD 183 86-252   RETAIL SALES TAX -- USE -- POSSESSION -- POOL TABLE -- CONSUMER. Retail sales tax is due on lease or rental of pool table even though lessee allows its customers to use the pool table for a consideration. The lessee is not re-leasing the pool table to its customers where it grants the use but not possession thereof.
  1 WTD 395 44 WN APP684   USE TAX - REGULATIONS - ULTRA VIRES ACTION. Provisions of WAC 458-20-178 and 458-20-211 were ultra vires, where they attempted to change the plain meaning of RCW 82.04.050, exempting leased equipment purchased for resale from the use tax.
  2 WTD 127 87-4   RETAIL SALES TAX -- SALE/LEASEBACK. Retail sales tax is due on initial purchase and on lease payments if purchaser uses equipment between time of initial purchase and subsequent sale/leaseback.
  2 WTD 131 87-5   RETAIL SALES TAX--USE TAX--LEASE PAYMENTS. Persons who rent or lease tangible personal property are required to collect from their lessees the retail sales tax (RST) measured by the gross income from rentals as each rental payment falls due. If RST is not collected, the lessee is liable for use tax on the amount of the rental payments.
  2 WTD 135 87-6   RETAIL SALES TAX -- USE TAX -- LEASE PAYMENTS. Persons who rent or lease tangible personal property are required to collect from their lessees the retail sales tax (RST) measured by the gross income from rentals as each rental payment falls due.If RST is not collected, the lessee is liable for use tax on the amount of the rental payments.
  2 WTD 183 87-36   B&O TAX -- DEDUCTION -- LEASE -- OUT OF STATE. Washington chooses not to assert B&O tax on amounts derived from leases of tangible personal property where leased property is used exclusively outside this state.
  2 WTD 183 87-36   RETAIL SALES TAX -- EXEMPTION -- LEASE OUT OF STATE. Washington chooses not to assert retail sales tax on amounts derived from leases of tangible personal property where leased property is used exclusively outside this state.
  2 WTD 385 87-75   LEASE OF TANGIBLE PERSONAL PROPERTY --SUCCESSIVE SALES. A lessee of personal property is liable for retail sales tax when it does not pay the tax to its lessor.
  2 WTD 435 87-99   SALES/USE TAX -- HELICOPTER -- LESSOR'S LIABILITY AT ACQUISITION -- INTERVENING USE --CLOSELY HELD COOPERATION. Tangible personal property acquired exclusively for rental is not subject to retail sales tax. A helicopter leased by a sole proprietor to his closely-held corporation was found to be so acquired notwithstanding a gap in term of a written lease agreement.
  3 WTD 91 87-143   B&O TAX -- SERVICE V. WHOLESALING -- CRANE SERVICES -- CONSTRUCTION PROJECT. Persons who rent or lease equipment with an operator for construction purposes to prime or subcontractors are deemed themselves to be subcontractors. A provider of a crane with an operator for construction projects is B&O taxable under Wholesaling. Use of the crane must be reasonably related to construction, but the actual installation/attachment requirement of previous determinations is rejected.
  3 WTD 153 87-171   B&O TAX -- LEASE PAYMENTS -- OUT-OF-STATE LESSOR -- ETBs 384 and 447. Persons who lease tangible personal property for use in this state are subject to the state's B&O tax upon the gross proceeds from such rentals, even if the lease agreement was consummated outside this state, and the lessor maintains no place of business, employees, or other business establishment in the state.
  3 WTD 153 87-171   B&O TAX -- LEASE PAYMENTS -- OUT OF STATE LESSOR -- DUE PROCESS NEXUS. The presence of leased property in this state, used by the lessees in their business, constitutes sufficient nexus to support imposition of this state's B&O tax on the lessor. The connection between the taxing state and the out-of -state taxpayer necessary to establish nexus is an economic rather than a physical relationship.
  3 WTD 153 87-171   RETAIL SALES TAX/USE TAX -- OUT-OF-STATE LESSOR. Out-of-state lessors are required to collect and remit Washington's retail sales tax or use tax if they regularly engage in the leasing of property located within this state.
  3 WTD 153 87-171   RETAIL SALE -- LEASE -- TIME AND PLACE OF SALE. When property is leased, the taxable sale does not occur where the lease agreement is consummated or where the property is transferred, but where the property is used.
  3 WTD 231 87-192   RETAIL SALES TAX -- LEASE -- LESSORS -- LIABILITY FOR FAILURE TO COLLECT. Persons who rent or lease tangible personal property to consumers are required to collect retail sales tax from their lessees on the gross income from the rentals. A lessor who fails to collect the tax is personally liable to the state for the amount of tax.
  3 WTD 431 87-254   B&O TAX -- RETAILING -- RETAIL SALES TAX --LEASE OR RENTAL -- PARTNER -- JOINT VENTURE --DIVISION OF PROFITS. Reimbursement to a partner in a joint venture for equipment provided to the joint venture constitutes a nontaxable division of profits rather than taxable rent where payments are not absolute.
  4 WTD 87 87-298   RETAIL SALE -- USE TAX -- LEASES -- INTERVENING USE -- YACHT -- STORAGE. The taxpayers purchased a yacht, without sales tax. They then stored it and eventually used it for both bare-boat charter leasing and pleasure. Use tax found to be due, because each lease payment represented a separate retail sale and personal use by the taxpayers between lease periods was intervening use; and because the storage preparatory to use was also intervening use.
  4 WTD 87 87-298   RETAIL SALES -- USE TAX -- EXEMPTION.One who purchases tangible personal property for the purpose of reselling it, without intervening use, is exempt from sales or use tax. An exemption in a tax statute must be strictly construed in favor of taxation.
  4 WTD 87 87-298   USE TAX -- INTEREST -- ESTOPPEL --MISINFORMATION FROM OTHER STATE AGENCIES. The Department of Revenue is not estopped from collecting taxes when the failure of a taxpayer to pay was due to misinformation supplied to the taxpayer by another state agency.
  4 WTD 87 87-298   USE TAX -- LEASE -- APPORTIONMENT. Use tax is measured by the value of the article used. The use tax statute does not allow apportionment when a yacht is used partly for business (leasing) and partly for pleasure.
  4 WTD 127 87-305   USE TAX -- DEFERRED SALES TAX -- LEASE --SELLING PRICE -- VALUE OF ARTICLE USED. A lease of tangible personal property, wherein monthly payments are made, is not a single transaction, but a contract for a series of 'transactions. Each transaction (each monthly lease payment) represents a separate retail sale. Gandy v. State, 57 Wn.2d690 (1961). (Courtright Cattle Company Seal v. Dolson Co., 94 Wn.2d 645 (1980) also discussed).
  4 WTD 165 87-319   RETAIL SALES TAX AND RETAILING B&O --ENGAGING IN BUSINESS -- EQUIPMENT LEASE --PARTNERSHIP/LESSOR. Where three individual professionals established a lease between themselves as individuals and their three professional corporations, the three were engaging in business and liable for Retailing B&O. Retail sales tax was due on the lease payments.
  4 WTD 289 87-352   RETAIL SALES TAX -- SELLING PRICE --INSTALLMENT SALE AND LEASE DISTINGUISHED. Used car dealer found to be making sales and financing the sales where the documents used included a bill of sale and promissory note and the purchasers owned the cars after all payments were made. The fact that the dealer wrote "lessor" by its name and "lessee" by the purchaser's name on the documents and that the dealer intended the transaction to be a lease did not make the transaction a lease.
  4 WTD 289 87-352   B&O TAX--RETAIL SALES TAX--INSTALLMENT SALE--LEASE--IMPROPER FORMS. Where taxpayer intended to lease vehicles but used forms which indicated it was making sales and financing the sales, it cannot re-document the transactions on lease agreements and have the transactions treated as leases for purpose of retailing and retail sales tax.
  4 WTD 293 87-354   RETAIL SALES TAX -- SALE/LEASEBACK. If a taxpayer sells and immediately leases back tangible personal property, retail sales tax is due on each monthly lease payment.
  4 WTD 293 87-354   RETAIL SALES TAX -- SALE/LEASEBACK -- FEDERAL TAX RETURNS. A taxpayer may not treat a transaction one way (a sale/leaseback) for federal tax purposes, but another way (a loan) for state tax purposes.
  5 WTD 1 88-12   RETAIL SALES TAX -- USE TAX -- LEASES --CHARTER-BOAT -- INTERVENING USE: The taxpayer, a limited partnership, used a boat which was held out to the public for bare-boat charter leasing. Thetaxpayer also allowed the limited partners to use the boat without paying rental fees or sales tax. Use tax found to be due, because the partnership's and partners' use of the boat constitute intervening use.
  5 WTD 83 88-33   B&O TAX -- RETAIL SALES TAX -- PURCHASE OF A LESSOR'S RIGHT, TITLE, AND INTEREST IN ENCUMBERED LEASE PAYMENTS -- TAX LIABILITY OF PURCHASER. A surety insurer which acquired a lessor's right, title and interest in lease payments in order to protect its interest by servicing the leases is liable for collecting and remitting the retail sales tax on the rentals, and is liablefor Retailing B&O on the gross income from the rentals when the payments fall due.The fact that the previous lessor received the beneficial interest from the lease payments and the payments were fully encumbered is not controlling.
  5 WTD 157 88-150   STORAGE TANK -- LEASE OF -- FACTORS DETERMINING. An agreement for the short term storage of oil was not found to be an agreement for the rental of the storage tanks where the owner of the oil did not receive sole continuous possession of the storage tanks. Chemical Processors v. State, Board of Tax Appeals, Docket Nos. 23223 and 23594, distinguished.
  5 WTD 343 88-191   B&O TAX -- RETAIL SALES TAX -- USE TAX -- LEASE -- EQUIPMENT WITH OPERATOR. The providing of equipment with operator will be considered a lease only if the specific requirements of subsections (4), (5) and (6) of WAC 458-20-211 are satisfied.
  6 WTD 85 87-305A   USE TAX -- DEFERRED SALES TAX -- LEASE --SELLING PRICE -- VALUE OF ARTICLE USED. A lease of tangible personal property, wherein monthly payments are made, is not a single transaction, but a contract for a series of transactions. Each transaction (each monthly lease payment) represents a separate sale.
  6 WTD 85 87-305A   USE TAX -- LEASES -- VALUATION. The statute provides for a determination of value in leases when the consideration paid does not represent a reasonable rent. This determination is made at the commencement of the lease.
  6 WTD 141 88-258   B&O TAX -- RETAILING -- SALES TAX -- LEASE WITH OPTION TO PURCHASE -- SALE -- DISGUISED SECURITY AGREEMENT. A lease is a contract whereby one party gives to another the right to the use and possession of property for a specified time and, ordinarily, for fixed payments. A lease is not a single transaction or sale, but a contract for series of transactions--the exchange of rental payments for continued enjoyment of possession. Gandy v. State of Washington. Lease with option to purchase auto held not to be a "disguised security agreement" financing the purchase under criteria set forth in Courtright and Rainier cases.
  6 WTD 141 88-258   B&O TAX -- RETAILING -- SALES TAX -- LEASE --PREPAYMENT OF RENTAL CHARGES -- REPORTING OF PREPAYMENT ON TAX RETURN. Where taxpayer is to receive a prepayment of all rental charges due per arrangement at the inception of the lease, the amount received is reported on the tax return for the period in which such prepayment falls due. The arrangement is for a credit union to prepay entirely the rental charges due on behalf of the lessee and for the lessee to make periodic payments to the credit union on a promissory note.
  6 WTD 279 88-312   SALES TAX -- LEASE -- SELLING PRICE -- VALUATION USED.Sales tax due is measured by amount of lease payment, which will not be lowered merely because parties are related and because payment amounts do not reflect true value.4 WTD 127 (1987).A taxpayer may not treat a transaction one way for federal tax purposes and another way for state purposes. 4 WTD 293 (1987).
  6 WTD 279 88-312   RETAIL SALES TAX -- LEASE -- SELLER LIABLE FOR SALES TAX COLLECTION. A lease of tangible personal property wherein monthly payments are made is a contract for a series of transactions in which each monthly lease payment represents a retail sale.Lessor is obligated to collect retail sales tax from lessees as rental payments fall due. Where tax is not separately stated, there is a conclusive presumption that it was not collected. Presumption is not overcome by agreement between the parties. Department of Revenue is not obligated to look to the buyer/lessee for payment of the tax due.
  6 WTD 317 87-192A,85-125A   RETAIL SALES TAX -- CLASSIFICATION -- RETAIL LEASES -- RENTAL CONSIDERATION -- AMOUNTS PAID FROM PROFITS -- CLOSE CORPORATION. Amounts actually paid by one closely held corporation to another for the use of construction equipment, whether paid as periodic rents reserved or from contract profits at the end of the contract, constitutes sales taxable rental income.
  7 WTD 1 88-352   RETAIL SALES TAX -- CRANE -- RENTAL OF -- WITH OPERATOR. A purchase of tangible personal property to be held exclusively for rental is exempt of sales tax. The definition of leasing and renting in the previous edition of this rule is invalid in that it excluded those rentals of cranes and similar equipment with which the lessor provided an operator. Duncan Crane Service, Inc. v. The Department of Revenue, 44 Wa. App. 684 (1986).
  7 WTD 1 88-352   RETAIL SALES TAX -- LEASE OF CRANE WITH OPERATOR -- RENTAL PAYMENTS. Inasmuch as the Court of Appeals has found that the rental of a crane or similar equipment with operator can be a lease just as is the rental of such equipment without an operator,the former situation, if established, like the latter, is a retail sale and the rental payments are subject to sales tax.
  7 WTD 75 88-458   RETAIL SALES TAX -- LEASES -- CONDITIONAL SALES DISTINGUISHED. A contract designated as a lease will be regarded as a sale and controlled by WAC 458-20-198 where the lessee has the option at the end of the term to purchase the property for a nominal amount. Courtright Cattle Co. v. Dolson Co. followed.
  7 WTD 75 88-458   RETAIL SALES TAX -- LEASES -- OPTIONS GRANTED THIRD PARTY. A lease granting one other than the lessee an option to purchase for a nominal amount will be treated as a lease and controlled by WAC 458-20-211. Retail sales tax will be due on the lease payments. If the third party exercises the option to purchase, sales tax will be due on the total consideration paid.
  8 WTD 45 89-328   RENTAL SALES TAX -- CRANE -- RENTAL OF -- WITH OPERATOR. A purchase of tangible person property to be held exclusively for rental is exempt of sale tax. The definition of leasing and renting in the previous edition of Rule 211 is invalid in that it excluded those rentals of cranes and similar equipment with which the lessor provided an operator. Duncan Crane Service, Inc. v. Dept. of Rev, 44 Wash. App. 684 (1986).
  8 WTD 45 89-328   RETAIL SALES TAX -- LEASE OF CRANE WITH OPERATOR -- RENTAL PAYMENTS. Inasmuch as the Court of Appeals has found that the rentals of a crane or similar equipment with operator can be a lease just as is the rental of such equipment without an operator, the former situation, if established, like latter, is a retail sale and the rental payments are subject to sales tax.
  8 WTD 45 89-328   DUNCAN CRANE AMENDMENT. The amendment to Rule 211, which incorporated the Wa. Court of Appeals' ruling in Duncan Crane Service, Inc. v. Dept. of Rev., supra, became effective July 1, 1987 as a result of the Department's emergency adoption of the rule as amended.
  8 WTD 45 89-328   SALES/USE TAX -- CRANE -- RENTAL OF -- WITH OPERATOR -- "TRUE LEASE" -- DATE OF APPLICATION -- LOANED SERVANT. Leases with operator must be evaluated in terms of whether or not they are "true leases" starting July 1, 1987. There are eight factors, including that of loaned servant , to be considered in determining whether the lessor or the lessee has dominion and control of the equipment. Here, those factors preponderated in favor of control by the lessee. The result is a "true lease" and no sales or use tax owed by the lessor except as a collection agent for sales tax on the rental payments.
  8 WTD 53 89-331   B&O TAX -- RETAILSALES TAX -- CORPORATE REORGANIZATION -- DISREGARD OF INTERCOMPANY LEASE -- SUBSTANCE OVER FORM. The doctrine of substance over form is not generally available to a taxpayer to eliminate the tax consequences of the taxpayer's chosen form of the transaction.
  8 WTD 103 89-363   RETAILING ANDSERVICE B&O -- LEASE --ASSIGNMENT. Assignment of a lease by a lessor results in Service B&O to the assignor measured by the amount received under the assignment agreement and retailing B&O to the assignee measured by the rental payments it receives.
  8 WTD 129 89-375   USE AND/OR DEFERRED SALES TAX -- BAILMENT --POSSESSION -- LACK OF USE. Equipment stored on taxpayer's premises which the taxpayer was temporarily prevented from using, because of a dispute with one of the owner/partners, was found to be not subject to use tax on a bailment theory.
  8 WTD 293 89-482   B&O TAX -- SALES TAX -- LANDFILL -- MAINTENANCE OF-- CLASSIFICATION OF. The maintenance of a landfill wherein a person uses his own equipment to clear land and move earth is a retail sale.
  8 WTD 439 89-541   RETAILING B&O TAX -- SALES TAX -- RENTAL OF PERSONAL PROPERTY -- KILN -- ANNEXED TO REAL ESTATE -- INTENT OF PARTIES TO RENTAL AGREEMENT -- CHARACTERIZATION OF KILN AS PERSONAL PROPERTY. Where parties to rental agreement involving a kiln affixed to real estate characterized the kiln as personal property and to remain so even if affixed to the real estate, the parties intended that the kiln be treated as personal property. The rental payments are payments are subject to Retailing B&O tax and sales tax. Lipsett v. King County, 67 Wn.2nd 650 (1965) discussed. ACCORD: Det. 88-342, 6 WTD 361 (1988).
  9 WTD 99 BTA 36932   RETAILSALES TAX - LEASING OF TANGIBLE PERSONAL PROPERTY. The leasing of tangible personal property is defined as a retail sale and is therefore subject to the retail sale sales tax. RCW 82.04.050.
  9 WTD 99 BTA 36932   RETAIL SALES TAX - CONTROL OVER LEASED EQUIPMENT - TRUE LEASES.If a lessor/owner retains control over leased equipment, a true lease or taxable lease is not created. WAC 258-20-211.
  9 WTD 99 BTA 36932   RETAIL SALES TAX - TRUE LEASES - OPERATION OF EQUIPMENT - POSSESSION, DOMINION and CONTROL. A lease between a businessman as owner/lessor of equipment and vehicles and his incorporated contract logging business was a true lease and was subject to the retail sales tax.Since the evidence clearly showed that the equipment and vehicles were operated by the corporations, and not bythe owner/lessor, the corporation acquired the right of possession, dominion possession, dominion and control over the equipment and vehicles. RCW 82.04.050; WAC 458-20-211.
  9 WTD 179 90-93   USE TAX -- TOOLING -- USE AS BAILEE. The use of tooling as a bailee is subject to use tax in situations where the bailor has not paid the use or sales tax on the items. When the items are used by the bailee before the sales tax is billed or paid by the owner, or where the bailor is not subject to such taxes, the use taxis due from the bailee on the reasonable rental value of the tooling.
  9 WTD 286-61 90-170   RETAIL SALES TAX -- LEASE -- RENTAL PRICE INCLUSIVE OF SALES TAX -- SEPARATE STATEMENT OF SALES TAX -- CONCLUSIVE PRESUMPTION. The statement in a written lease that the rental price for tangible personal property includes sales tax does not mean for tax purposes that the lessee has paid sales tax to the lessor. Unless the sales tax is separately stated from the rental amount due in the lease, in monthly billings, or in monthly statements, there is a conclusive presumption by law that the rent paid did not include the sales tax.
  10 WTD 143 90-365   TAXICAB LEASES -- DRIVERS AS INDEPENDENT CONTRACTORS.Taxicab drivers were not employees or agents of taxpayer/owner where the owner did not control or have the right to control the drivers.The drivers, not the taxpayer, determined whether, when and where they worked during their shifts.A driver's income was the difference between the fares and the fixed lease payments made to the owner at the end of each shift, which is not a typical employer-employee relationship. Other factors in Rule 105 support finding the drivers were not employees or agents of the taxpayer.
  10 WTD 143 90-365   RETAILING B&O TAX - RETAIL SALES TAX - TAXICABS - LEASES.A lease is a contract whereby one party gives to another the right to use and possess property for a specified time, and ordinarily, for fixed payments. Here, drivers paid a fixed amount to use taxicabs for specified shifts.Amounts received by the taxpayer from drivers for the taxicab leases are subject to retail sales and retailing B&O taxes. Accord: Duncan Crane v. Dept. of Revenue, 44 Wn. App. 684, 689, 723 P. 2.d 480 (1986).
  10 WTD 341 90-397   LEASEBACK -- INTERVENING USE --ORGANIZATIONAL & PROCEDURAL STRUCTURE --PREFERENTIAL TREATMENT TO OWNER. Where the lessor/owner attempted to execute a lease and leaseback agreement with a leasing company but paid a substantially lower rate than the general public for the use of the airplane, intervening use had occurred and the use tax applied.
  10 WTD 341 90-397   LEASEBACK -- SUBSTANCE OVER FORM 93% USAGE BY THE OWNER. Where the lessor/owner executed a lease and leaseback agreement with a leasing company which allowed the leasing company to pay an unreasonably low rental rate for the use of the airplane, and the lessor/owner eventually subleased the airplane for 93% of the plane's total usage, the substance of the transaction was found to be a purchase of the airplane for consumption by the lessor/owner.
  11 WTD 39 89-505   RETAIL SALES TAX -- LEASES -- EARLY TERMINATION PAYOFFS. Where an automobile lease is prematurely terminated, the taxability of the proceeds derived from a subsequent transaction involving that automobile is determined by the nature of the subsequent transaction.An automobile lease which is terminated and subsequently paid off by a consumer is a retail sale.A lease paid off by a dealer is a wholesale sale. A lease paid off by an insurance company is a wholesale sale to the extent that the amount paid represents the salvage value of the destroyed vehicle. Any amounts in excess of the salvage value of the destroyed vehicle are liquidated damages and taxable under the Service and Other Activities Tax classification.
  11 WTD 193 91-151   RETAIL SALES TAX -- USE TAX -- WATER VESSEL --CHARTER WITH CREW. The purchase of a vessel to be used as charter with crew is not a purchase for resale that is exempt from the retail sales tax. When no sales tax was paid on purchase, the use tax is due at the time of first use, which was either the storage or when the first repairs were made, since both were preparatory to actual use.
  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   INSURANCE CHARGES -- TAXI CAB RENTALS --RETAILING B&O -- RETAIL SALES TAX.Where taxi cab company/lessor is the insured on automobile liability policies and is obligated to pay premiums to the insurer, the money received from independent drivers/lessees for such insurance coverage is taxable under Retailing B&O and retail sales tax as a recovery of taxpayer's own costs. The payments are not exempt advances and reimbursements. Accord: Det. No. 86-305, 2 WTD 65 (1986), Det. No. 88-377, 6 WTD 439 (1988).
  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 413 91-243   RENTS -- RETAIL SALE. The total amount charged to an affiliate for the rental of forklifts is taxable rent. This amount includes charges for repairs, depreciation, and property taxes.
  11 WTD 521 91-322   USE AND/OR DEFERRED SALES TAX -- USED BAILED EQUIPMENT -- VALUE. Use tax on used bailed equipment is to be computed based on the reasonable rental value of comparable used equipment. In the absence of comparable rentals, the reasonable rental value will be computed by prorating the retail selling price of similar used equipment over the period of possession by the bailee.
  12 WTD 29 91-313   LEASE OF EQUIPMENT WITH OPERATOR -- TRUE LEASE. When an out-of-state taxpayer agrees to provide equipment with a crew to a customer, that agreement will only be considered a true lease when the agreement meets the criteria listed in Rule 211. Where the "lessor" retains control over the repair, maintenance, insurance, and risk of loss and shares responsibility for the safety of the equipment, it has not relinquished sufficient control for the agreement to constitute a true lease. Det. No. 88-352, 7 WTD 001 (1988) cited.
  12 WTD 221 92-186   RETAIL SALES TAX -- LEASE -- SCAFFOLDING --CUSTODY AND CONTROL. Where a company charged a single lump sum fee for assembling and dismantling scaffolding at the job site and rental during the term of the lease, the entire charge was found to be a retail sale where the owner conveyed sole possession, custody and control of the scaffolding during the term of the lease to the contractor.
  12 WTD 253 92-393   USE TAX -- LIABILITY FOR PAYMENT. The fact that the taxpayer was not actually making its scheduled lease payments does not relieve the taxpayer from the corresponding tax liability in relation to the leased property.
  12 WTD 253 92-393   USE TAX -- EXEMPTION. The exemption is only applicable to situations where a sale or use has previously been taxed. No exemption is granted in the statute to cover the case of a lessee who is no longer making payments on the lease.
  12 WTD 291 90-162   RETAIL SALES TAX -- B&O TAX -- PURCHASE OF LEASE PAYMENTS -- TAX LIABILITY OF LESSOR. In the unique factual situation, when a purchaser acquires a lessor's right to receive payments on a lease and sufficient "right, title and interest" in the lease, the purchaser becomesa "sublessor" of the lessor's interest, and stands in the shoes of the lessor, and is liable for retailing B&O tax and retail sales tax on the leases. Lessor is liable for wholesaling B&O tax on the amount receivedfrom the purchaser. Partial accord: Det. 88-33, 5 WTD 83 (1988).
  12 WTD 451 92-277   TRADE-IN--LIKE-KIND EXCHANGE--LEASE. User of chassis qualifies as lessee where user's right to use the chassis is conditioned on user's promise to permit the chassis owner to use users'chassis under similar circumstances. User's promise to permit reciprocal use constitutes "consideration," which, coupled with user's dominion and control over the property, creates a lease under Rule 211. Owner's reciprocal use of user's property constitutes a trade-in of like kind property.
  12 WTD 451 92-277   BAILMENTS -- CONSIDERATION -- DEFINITION --RECIPROCAL PROMISES. User of chassis does not qualify as bailee where user's right to use the chassis is conditioned on user's promise to permit the chassis owner to use chassis owned by user under similar circumstances. User's promise to permit reciprocal use constitutes "consideration," which precludes the arrangement from qualifying as a bailment under Rule 211. Accord: Cook v. Johnson, 37 Wn.2d 19,23 (1950); Higgins v. Egbert, 28 Wn.2d 313 (1947); Ebling v. Gove's Cove, Inc., 34 Wn. App. 495, 499 (1983); Det. No. 91-44, 10 WTD 395 (1991); Det. No. 87-110, 3 WTD 21 (1987).
  12 WTD 615 93-100   USE TAX -- BAILMENT -- WHEN TAX LIABILITY ARISES -- TAX PAID BY PREVIOUS BAILEE. The tax liability of a bailee first arises when the person/bailee himself first uses the property even though an other person or previous bailee has used the property. However, if the property has been used by a previous bailee who has paid use tax upon the full original value of the article used, the present user/bailee is exempt from use tax.
  13 WTD 344 93-191   RETAIL SALES TAX -- SALE/LEASEBACK. Absent any other exclusion provision in the Revenue Act, the successive purchases at retail of computer equipment, and then leasing of that same equipment in a sale/leaseback situation, are successive sales on which retail sales tax is properly due. Since the taxpayer in this case used the computer equipment after its purchase and before resale to the leasing company, there was intervening use and the taxpayer cannot be construed to have been making a wholesale purchase.
  14 WTD 29 93-259   SALE AT RETAIL -- LEASE -- INTERVENING USE. A person who purchases or leases an article of tangible personal property for resale or lease in the regular course of business without intervening use need not pay sales or use tax.
  14 WTD 29 93-259   LEASE, RENTAL, OR BAILMENT -- DOMINION AND CONTROL -- CATERERS. In order to find a true lease, rental, or bailment, there must be a change in actual or potential dominion and control over the property. When a caterer supplies linens, tableware, and glassware to its customers as part of its services, there is no change in actual or potential dominion and control over such items.
  14 WTD 29 93-259   INTERVENING USE -- DEFERRED SALES OR USE TAX -- CATERERS. When a caterer supplies linens, tableware, and glassware as part of its services, it is using such items in its business and deferred sales or use tax is due. Invoices showing a "rental" of such items only demonstrate a method of calculating the cost of catering a unique event and not a true lease, rental, or bailment of such items.
  14 WTD 145 92-218   USE TAX -- GOVERNMENT PROPERTY -- BAILMENT. Bailment arises where taxpayer's employees have possession and exercise dominion and control over government-owned items in performing contract tasks. Use tax applies even if the government retains control over the taxpayer's conduct with regard to the use of such items after delivery and the taxpayer does not have exclusive possession.
  14 WTD 145 92-218   USE TAX -- BAILMENT -- ITEMS ANNEXED TO REAL ESTATE -- FIXTURES. Use tax is levied only on the use or bailment of tangible personal property, not real property. The Department follows the common law rules for determining whether an item is realty or personalty. When anowner attaches an article to land, it is rebuttably presumed to have annexed it with the intent to enrich the freehold. Without evidence to the contrary, the presumption stands.
  14 WTD 145 92-218   USE TAX -- BAILMENT -- MEASURE OF TAX. The measure of use tax for bailed articles is their reasonable rental.The reasonable rental is determined as nearly as possible by the rental price at the place of use of similar products of like quality and character. The tax is not measured by the full replacement cost of the items.During the contract period when the taxpayer has possession of the items only for one-third of the time, the measure of the tax is reduced or prorated by two-thirds. The total tax assessed shall not exceed the full original value (likely to be original purchase prices) of the articles.
  15 WTD 10 94-108   DEFINITION OF RETAIL SALE -- APPLICATION TO EXISTING CONTRACTS. Where a taxpayer enters into a fixed price contract which requires it to rent equipment with an operator prior to the passage of legislation including the rental within the definition of a retail sale, the application of the retail sales tax to the rental is not an unconstitutional impairment of contract.
  15 WTD 65 94-226   RETAIL SALES TAX -- USE TAX -- AIRCRAFT PURCHASED FOR LEASE -- FLIGHT INSTRUCTION: In general, aircraft purchased by a taxpayer for providing flight instruction services are subject to use tax.However, a different result may occur where a taxpayer separately charges student pilots retail sales tax for lease of aircraft pursuant to lease agreements under which the student pilots assume possession and control of the aircraft.Under such circumstances, the aircraft was purchased for resale, and it is not subject to use tax so long as the aircraft is not put to intervening, non-exempt use.
  15 WTD 78 94-272   RETAIL SALES TAX -- USE TAX -- LEASES OF PERSONAL PROPERTY -- ADDITIONAL RENT. When a lessee under an equipment lease agrees to assume the lessor's obligation to pay the personal property tax, such payments are additional consideration for the lease and are subject to retail sales or use tax.
  15 WTD 123 95-038   INTERVENING USE -- DEFERRED SALES OR USE TAX -- CATERERS. When a caterer supplies plates, silverware, glasses, cooking equipment, linens and tents as part of his services, he is using such items in his business and deferred sales or use tax is due.Invoices showing a "rental" of such items only demonstrate a method of calculating the cost of catering a unique event and not a true lease, rental, or bailment of such items.
  15 WTD 123 95-038E   LEASE, RENTAL, OR BAILMENT -- DOMINION AND CONTROL -- CATERERS. In order to find a true lease, rental, or bailment, there must be a change in dominion and control over the property. When a caterer supplies plates, glasses, silverware, cooking equipment, linens and tents to his customers as part of his services, there is no change in actual or potential dominion and control over such items.
  17 WTD 69 97-157   RETAIL SALES TAX -- PURCHASE FOR RESALE -- DOMINION & CONTROL -- FIBER-OPTIC CABLE -- BAND WIDTHS.An owner of fiber-optic cable may not purchase the cable without payment of retail sales tax even though it rebills its customers for use of the cable in separately identifiable band widths and on a monthly basis.Under these circumstances, the owner does not relinquish possession and dominion and control of the cable to its customers.
  17 WTD 69 97-157   RETAIL SALES TAX -- PURCHASE FOR RESALE -- DOMINION & CONTROL -- FIBER-OPTIC CABLE -- FIBER PAIRS.An owner of fiber-optic cable may not purchase the cable without payment of retail sales tax even though it rebills its customers for use of the cable in fiber pairs on a monthly basis.Under these circumstances, the owner does not relinquish possession and dominion and control of the cable to its customers.
  17 WTD 179 98-043   RETAIL SALES TAX -- CONSUMER, FINANCING LEASE, AND TRUE LEASE.Where a contractor enters into an agreement with the owner of real property and that agreement is later assigned to a leasing company, the contractor may not accept a resale certificate from the leasing company.This is because either (1) the agreement between the leasing and the owner is a financing lease and the owner is still the consumer of the improvements or (2) the agreement is a true lease and the leasing company is the consumer.
  18 WTD 120 98-061   USE TAX TRUCKS INTERVENING USE.A taxpayer who purchased a tanker truck and used it in business prior to leasing the vehicle to a lessee is not entitled to a refund of the use tax it paid upon initially registering the truck in Washington because of its intervening use of the vehicle before the lease.
  18 WTD 183 97-208   RETAIL SALES TAX -- SELLING PRICE EARLY LEASE TERMINATION NEGOTIATED SETTLEMENT. The retail sales tax imposed on lease payments can be adjusted when the lease agreement provides for a negotiated settlement upon early termination of the lease.
  19 WTD 37 99-021   USE TAX FINANCING LEASE.In light of the factors in Rule 211(2)(g), the taxpayer, as lessee, had a financing lease rather than a true lease of tangible personal property.Thus, sales tax is due on the total selling price at the time a sale of tangible personal property is made on an installment basis.If sales taxes are not collected and remitted, the Department may pursue the buyer/lessee for use tax on the total selling price.
  19 WTD 44 99-027   RETAIL SALES TAX RENTAL OF EQUIPMENT TRUE LEASE.True leases existed where surgeons and hospitals rented tangible personal property from the taxpayer by taking possession of medical equipment and exercising dominion and control over the equipment when performing surgeries.The surgeons were in total charge of how and when to use the equipment to perform the surgeries.
  19 WTD 76 99-104   DEFERRED SALES TAX -- USE TAX -- SALE/LEASEBACK.A taxpayer does not incur retail sales tax on the purchase of equipment it purchases with the intent to execute a sale/leaseback, when it has presented a resale certificate and, prior to the purchase, the lender has executed a commitment to purchase and lease back such equipment.
  19 WTD 122 98-165   RETAIL SALES TAX -- WHOLESALING -- SERVICES RENDERED IN RESPECT TO CONSTRUCTION -- PUBLIC ROAD CONSTRUCTION -- GOVERNMENT CONTRACTING. A person hired for his skill, knowledge, and expertise in operating a water truck to compact soils at construction sites is rendering services in respect to construction.The person is not merely renting equipment with an operator to perform work under the specific direction of a lessee.The proper tax classification for such activities depends on whether the person is a prime contractor or a subcontractor, and/or whether the construction project is normal retail sale, or public road construction, or government contracting.
  19 WTD 440 99-100   B&O & RETAIL SALES TAX TANGIBLE OBJECT & RIGHT TO REPRODUCETRUE OBJECT TEST -- END USER.Where a taxpayer sends a single copy of training material to a client with the right to reproduce a specified number of additional copies for use in conducting training classes, the true object of the transaction is the acquisition of tangible teaching materials.
  19 WTD 710 00-024   BARE BOAT CHARTER -- LEASE WITH OPERATOR -- USE TAX -- INTERVENING USE.If a taxpayer purchases and uses a boat solely for the purpose of chartering it to consumers under bare boar charters, no retail or use tax is due.Retail or use tax is due when the boat is chartered with the owner as the operator, because the owner has not relinquished dominion and control over the vessel.Under such circumstances the owner uses the boat in operating the business and use tax is due measured by the full purchase price.
  19 WTD 1023 00-072   RETAIL SALES TAX -- FINANCING LEASE.Financing leases are treated as installment sales.The Department considers all the factors set out in WAC 458-20-211(2)(g), and other critical portions of the lease documents, to determine whether an arrangement is a financing lease rather than a true lease.
  19 WTD 1023 00-072   RCW 82.04.050: RETAIL SALES TAX -- SALE/LEASEBACK -- INTERVENING USE.The Department may determine there was no intervening use for purposes of RCW 82.04.050, and therefore no retail sales tax was due on the initial purchase of equipment that was subsequently sold and leased back under a financing lease, when the documentary evidence and the parties course of dealing establish that the taxpayer and the buyer/lessor agreed to the terms of a sale and leaseback before the taxpayer purchased the equipment, and the purchases were handled in accordance with that agreement.
  19 WTD 1032 00-073   RETAIL SALES TAX RENTAL OF EQUIPMENT WITH OPERATOR TRUE OBJECT TEST LIGHTING AND SOUND AMPLIFICATION.Because the true object of charges for lighting and sound at events is the rental of equipment with an operator, the charges are subject to retail sales tax.
  19 WTD 986 00-057   RETAIL SALES TAX AND USE TAX -- WATERCRAFT EXEMPTIONS -- DELIVERING BUNKER FUEL -- TRANSPORTING THEREIN OR THEREWITH -- INTERSTATE OR FOREIGN COMMERCE.Delivering marine bunker fuel, for consumption, to other vessels carrying and moving cargo in interstate or foreign commerce, does not constitute transporting the cargo that is aboard the other vessels.It is not a use that qualifies for the exemptions in RCW 82.08.0262 and RCW 82.12.0254.
  19 WTD 986 00-057   PUBLIC UTILITY TAX -- DEDUCTIONS -- EXPORTS -- COMMODITIES -- FORWARD -- FOREIGN DESTINATIONS.Revenue from transportation of bunker fuel, for consumption, to ship side on Washington tidewater or navigable tributaries, is not deductible under RCW 82.16.050(8).There is no forwarding of commodities to interstate or foreign destinations required by the statute.
  20 WTD 7 99-272R   RETAIL SALES TAX -- USE TAX BAREBOAT CHARTER -- TIME CHARTER.In general, a bareboat charter is considered the rental of personal property and is subject to retail sales tax.In contrast, the service of transporting property for hire by the lease of a vessel with a crew is not considered a retail sale.A bare boat charter is a maritime lease or rental agreement that, as opposed to a "time" or "voyage" charter, has the effect of shifting the possession and control of the vessel from the owner to the charterer.In determining whether a given rental agreement, or charter party, as it is termed in admiralty, is a bare boat charter, the crucial test is one of control.
  20 WTD 7 99-272R   RETAIL SALES TAX -- USE TAX BAREBOAT CHARTER -- TIME CHARTER.The taxpayer had exclusive control of the barge for purposes of transporting, navigating, repairing, and unloading the barge, and the charterer only exercised control over the barges itinerary and the times and dates of departures and arrivals within a specified geographic area.As such the charter party is considered a time charter, not a bareboat charter, and it is not subject to retail sales tax.
  20 WTD 98 00-107   B&O TAX RENT FRUIT BINS.A fruit packer who receives and temporarily stores fruit in its bins is taxable under the service and other activities B&O classification on receipts designated as bin rental.
  20 WTD 261 97-032R   B&O TAX -- RENTAL -- EQUIPMENT WITH OPERATOR -- FIREFIGHTING.Receipts from emergency equipment rental agreement with national forest are taxable under the retailing classification.The national forests fire boss controls the equipment and operators clearing federal land for fire lanes and other tasks during and after fire emergencies.
  21 WTD 231 01-147   RCW 82.12.020: USE TAX -- MULTIPLE TRANSACTIONS -- RELATIVES -- BAILMENT.Neither use tax paid by parents when they acquired a vehicle, nor use tax paid by their son when he purchased the vehicle could be refunded.The transactions could not be retroactively restructured.
  21 WTD 240 01-178   RCW 82.04.050, RCW 82.04.190, RCW 82.04.270: RETAIL SALES TAX RENTAL OF EQUIPMENT WITH OPERATOR -- PUBLIC ROAD CONSTRUCTION.A person hired by a county for his skill, knowledge, and expertise in bridge construction is not merely renting equipment with an operator to perform work under the specific direction of a lessee, but was acting as a subcontractor whose work was subject to contract specifications.The proper tax classification for such activities is public road construction.
  21 WTD 251 01-102   RCW 82.08.02565:RETAIL SALES TAX--M&E EXEMPTION CONCRETE MIXER TRUCKS LEASES.Lessees of concrete mixer trucks must provide taxpayer/lessor with exemption certificates as prescribed in RCW 82.08.02565(1) and Rule 13601(4)(a) in order for the taxpayer not to collect tax on the leases.
  22 WTD 193 01-072   USE TAX DUNNAGE PACKING MATERIALS STEVEDORING COMPANY BAILMENT TO.Where water-borne interstate carriers bail dunnage and packing materials to a stevedoring company that applies the items to secure outbound cargo, the stevedoring company is liable for use tax on the bailed items, based on their reasonable rental value, which will be pro-rated if the items are also used by others.
  23 WTD 307 04-0087   USE TAX CORPORATE OFFICERS USE OF YACHT LEASED TO CORPORATION PERSONAL LIABILITY FOR PERSONAL USE POSSESSION AND CONTROL TRUE LEASE ULTRA VIRES ACT INTERVENING USE.Officer of corporation is liable for use tax on a yacht purchased outside Washington where officer did not relinquish possession and control of yacht so as to create a true lease to the corporation.To impose personal liability for use tax against the officer, the Department need not prove that officers action in using yacht was ultra vires.
  24 WTD 247 04-0120   USE TAX SHAREHOLDERS USE OF PLANE OWNED BY CORPORATION.Use tax was due when plane purchased for resale was put to intervening use.
  25 WTD 148 05-0196   USE TAX BOOM GEAR BAILMENT REASONABLE RENTAL VALUE.The measure of use tax on boom gear obtained through bailment is the reasonable rental value of the boom gear to be determined as nearly as possible according to the rental price at the place of use of similar products of like quality and character.
  25 WTD 148 05-0196   USE TAX BOOMSTICKS -- VALUATION.For boomsticks that the taxpayer owned and used in Washington it owes use tax on their reasonable rental value for the ones that were used here for less than 180 days in a 365 consecutive days period.For boomsticks it owned that remained in Washington for more than 180 days in a 365 consecutive days period, use tax is due on their full value.
  26 WTD 21 05-0304   USE TAX EXEMPTION -- FERTILIZER & SPRAY MATERIALS -- BAILOR OF SEED -- FARMER PRESENT RIGHT OF POSSESSION PERMISSION TO ENTER LAND.A bailor of seed did not have the required possessory interest in land to be considered a farmer eligible for the RCW 82.04.050(8)(b) fertilizer and spray material exemption, even though the grower gave the bailor permission to enter the land in order to help grow the crop.
  26 WTD 125 06-0232   RCW 82.12.020:USE TAX LEASE DOMINION AND CONTROL RENTAL OF EQUIPMENT WITH OPERATOR.Sound and lighting company did not relinquish dominion and control over its equipment when it leased the equipment to its customers with an operator.As such, because the taxpayer did not pay retail sales tax on the equipment, taxpayer was liable for use tax on the equipment.
  27 WTD 11 05-0190ER   RCW 82.08.020:RETAIL RENTAL CAR TAX RENTAL OF MOTOR HOMES.Imposition of the retail rental car tax requires fulfillment of three requirements: (1) The rental of a passenger car, (2) used solely by a rental car business, and (3) a rental without driver for a period greater than 30 consecutive days.As a finding of law we conclude motor homes are a subset of passenger cars and fulfill the statutes first requirement. The statutes second and third requirements are fact driven and are determined by the circumstances of the rental.
  27 WTD 11 05-0190ER   RCW 82.08.020, RCW 82.08.050:RETAIL RENTAL CAR TAX TRUSTFUNDS.The retail rental car tax is a sales tax on the retail rental of cars.Retail sales taxes are trust funds, collected by the seller from the buyer, held in trust and then remitted to the Department.The retail rental car tax collected by a seller belongs to the customer or the State and not to the seller. Thus, the tax cannot be refunded to the seller.
  27 WTD 41 07-0247   RCW 82.04.050: RETAIL SALES TAX RETAILING B&O TAX FINANCING LEASE TRUE LEASE TELEPHONE EQUIPMENT.In determining whether a lessor of telephone equipment was leasing the equipment under true/operating lease or financing lease we considered a nine factor test, plus additional evidence.Where some of the nine factors were present for a financing lease, but where these factors were either not strong indicators of a financing lease or there were mitigating circumstances, and the majority of the factors strongly indicated a true lease, we conclude that the transaction was a true lease.
  27 WTD 70 06-0120R   Rule 211; RCW 82.04.050:RETAIL SALES TAX -- USE TAX -- RENTAL OF EQUIPMENT WITH OPERATOR -- WATER TREATMENT SYSTEMS.A taxpayer who engages in subcontract work or otherwise is responsible for performing the work to contract specification and determines how the work is to be performed, is the consumer of the components it purchased to build water treatment systems, and therefore does not qualify for the exemption from retail sales tax in RCW 82.04.050(1)(c).
  28 WTD 81 08-0356 6/30/09 RULE 224, RULE 211(2)(e); RCW 82.04.290(2), RCW 82.04.050(4), RCW 82.08.020(1):  B&O TAX – WEDDING DJ – MUSIC SERVICE -- TRUE OBJECT.  Taxpayer who provides wedding DJ services is taxable under the Service & Other B&O tax classification.  Under the true object test, the Taxpayer’s wedding DJ services are a music service, rather being subject to the retail sales tax as the rental of sound equipment with an operator.
  30 WTD 15  06-0048R 10/12/11 Rule 211; RCW 82.04.050(4)(a)(ii):  RENTAL OF AMUSEMENT AND RECREATION EQUIPMENT WITH OPERATOR.  Where an operator of amusement and recreation equipment is hired by a taxpayer for its knowledge, skill, and expertise in providing amusement and recreation services, rather than simply to operate rented equipment, then the true object of the rental is amusement and recreation services for resale, and is not retail-taxable.
  30 WTD 70 10-0231 11/30/2011 RCW 82.08.020; 82.04.050: RETAIL SALES TAX – TRUE OBJECT TEST. 
A seller of youth sports program materials and support services to third parties who use the materials and services to provide youth sports leagues makes a “retail sale” under the true object test for periods prior to July 1, 2008.

  32 WTD 117 11-0345 06/27/2013 RULE 211; RCW 82.04.050: RETAIL SALES TAX – RENTAL OF
EQUIPMENT WITH OPERATOR – CRANE RENTALS. A taxpayer is subject to retail sales tax on the rental of cranes with operators when the taxpayer directs the lifts, the taxpayer is charged on the basis of the amount of time the cranes are used, and the crane operator does not perform work to contract specifications or use skills beyond those needed to operate the equipment.
  32 WTD 117 11-0345 06/27/2013 RCW 82.08.010: RETAIL SALES TAX – SALES PRICE. Amounts charged by a renter of cranes with operators for permit fees and subsistence are seller expenses included in the measure of retail sales tax.
  32 WTD 297 11-0009 12/31/2013 Rule 211:  USE TAX – BAILMENTS – MEASURE OF TAX.  The value
of tangible personal property held or used under bailment is subject to use tax if the property was purchased or acquired under conditions whereby the retail sales tax was not paid by the bailor. The measure of the tax to the bailor is the fair market value of the article at the time the article was first put to use in Washington.
OTHER: