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WAC 214 Cooperative marketing associations and independent dealers
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-214   09/27/1988 Cooperative marketing associations and independent dealers acting as agents of others with respect to the sale of fruit and produce.
RCW: 82.04.030   1995 "Persons," "company."
  82.04.050   1995 "Sale at retail," "retail sale."
  82.04.060   1983 "Sale at wholesale," "wholesale sale."
  82.04.250   1993 Tax on retailers.
  82.04.270   1993 Tax on wholesalers, distributors.
  82.04.290   1995 Tax on selected business services, financial businesses, or other business or service activities.
  82.04.330   1993 Exemptions--Farmers--Agriculture.
  82.04.4287   1980 Deductions--Compensation for receiving, washing, etc., horticultural products for person exempt under RCW 82.04.330--Materials and supplies used.
  82.08.020   1992 Tax imposed-Retail sales-Retail car rental.
  82.12.020   1994 Use tax imposed.
  82.14.030   1983 Definitions-Where retail sale occurs.
       
ETA: 3112.2011 04/29/2011 Processing Perishable Meat Products. The Department issued Excise Tax Advisory (ETA) 3122.2011 Processing Perishable Meat Products. This ETA was originally issued as ETA 2035 in March 2007 to explain who is entitled to the preferential business and occupation (“B&O”) tax rate based on the Washington State Supreme Court decision, Agrilink Foods, Inc. v. Washington State Department of Revenue, 153 Wn.2d 392 (2005).
The following header has been added to this ETA to explain that it does not apply during the period of June 1, 2010 through December 1, 2010.
This ETA applies to periods prior to June 1, 2010 and after December 1, 2010. For the period of June 1, 2010 through December 1, 2010, 2ESSB 6143, Part V, limited the preferential B&O tax rate for processors of perishable meat to specific activities and products. Refer to 2ESSB 6143, Part V, for additional information about these limitations. 
  3160.2009 12/29/09 Packers of Horticultural Products and the Taxability of Storage Income  Many packers of horticultural products are organized as agricultural cooperative marketing associations that pack, market, and sell horticultural products for the growers.  These packers typically perform a variety of activities for growers, including the storage of the horticultural products in cold storage.  This ETA discusses how the business and occupation (B&O) tax deduction available to persons receiving, washing, sorting, and packing horticultural products applies in these cases.  

  58.04.214   07/15/1966 MARKETING ASSOCIATION:SELLER OR AGENT - Cancelled effective December 29, 2006 This document addresses the B&O tax classification of an in-state marketing association for association members. The document states that based on the associations activities and circumstances, and its bylaws, the association was operating as an agent of its members. The result being that the association was subject to service B&O tax on the gross receipts from services rendered and not the gross receipts from the sale of fresh fruit. This document is not needed as the issues are adequately addressed in WAC 458-20-214, 458-20-159, and Det. 87-355, 4 WTD 383.
  559.08.214   12/31/1992 SALES AND RENTALS OF FRUIT BINS-Cancelled effective -0/30/2003.See WAC 210.
         
       
INDUSTRY GUIDES:      
         
       
SPECIAL NOTICES:      
Subject Title Reference:      
Fruit & Vegetable Processors 11/10/2011 Fruit and Vegetable Processors May Qualify for B&O Tax Refund
Food & Food Ingredients 10/26/2010 B&O Tax Preferences for Perishable Meat Products and Fruit or Vegetable Products 
Food & Food Ingredients 11/17/2010 B&O Tax Preferences for Perishable Meat Products and Fruit or Vegetable Products Updated 11/17/10
Food & Food Ingredients 11/18/2010 Processors of Perishable Meat Entitled to Lower B&O Tax Rate Effective December 2, 2010
Food & Food Ingredients 06/03/2010 Changes to the B&O Tax Preferences for Perishable Meat Products and Fruit or Vegetable Products
Fruit & Vegetable Processors   05/31/2006 Fruit and Vegetable Processors Tax Exemption - New E-file Requirement
Cold Storage Warehouse/ Incentives/ Warehouse   07/02/2007 "Cold Storage Warehouse" Added to Warehouse Sales Tax Remittance Program
Cold Storage Warehouse/ Incentives/ Warehouse   07/03/2007 Processing Plants and Cold Storage Warehouses
       
         
       
DIRECTIVE: 8214.1   04/01/1987 Boxes and Packaging Materials Repealed 6/30/2000 - This information is provided in WAC 458-20-214 (Cooperative marketing associations and independent dealers acting as agents of others with respect to the sale of fruit and produce) and WAC 458-20-115 (Sales of packing materials and containers).
         
       
RPM: None      
         
       
WTD: 4 WTD 383 87-355   B&O TAX -- SERVICE -- AGRICULTURAL COOPERATIVE ASSOCIATIONS -- TAXABILITY -- AGENTS. Agricultural marketing associations organized under chapter 24.32 RCW are selling agents for their principal/grower members by operation of law.Such organizations are subject to Service business tax measured by commissions, fees, and their own, retained gross receipts.
  4 WTD 383 87-355   B&O TAX -- AGRICULTURAL COOPERATIVE ASSOCIATIONS -- SERVICE VIS-A-VIS WHOLESALE --SUBSTANCE OVER FORM. The substance of the operating relationship between an agricultural marketing association and its grower-members is that of an agent selling on behalf of its disclosed or undisclosed principals. Such an association is not a "wholesaler" outright, in any independent capacity.
  19 WTD 542 99-022   B&O TAX EXEMPTION - PACKAGING OF FRESH HORTICULTURAL PRODUCTS - PALLETIZATION INCOME.Income received by a fruit packer from the buyer for the palletization of fruit boxes does not qualify for the B&O tax exemption allowed for fruit packaging activities.Palletization assists the shipper in the movement of the fruit boxes, but is not part of or even an extension of the packaging process.Furthermore, the B&O tax exemption is only available for charges incurred by the grower and not the buyer.
  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 98 00-107   B&O TAX -- INSURANCE CHARGES FRUIT WAREHOUSE.Receipts derived from separately stated insurance charges to growers, who own fruit stored in a warehouse, to cover the fruit packers premiums for losses to the contents of the warehouse, are not reimbursements, but taxable under the same classification as the receipts designated as warehouse charges.
  20 WTD 98 00-107   B&O TAX FRUIT GRADING.Payments from a cannery to a fruit packer, which authorized the fruit packer to grade and accept fruit on behalf of the cannery, were subject to B&O tax because the taxpayer was paid to accept the fruit for the cannery, not for the growers.
  30 WTD 28  09-0209 10/12/11 Rule 214; RCW 82.04.4287:  B&O TAX --  EXEMPTION –– COMPENSATION FOR RECEIVING, WASHING, ETC., HORTICULTURAL PRODUCTS FOR PERSON EXEMPT UNDER RCW 8.04.330.  Only income derived from washing, sorting, packing for growers directly is exempt from B&O tax under RCW 82.04.4287.  Income from sorting and packing of apples for a fruit packing house is not exempt from B&O tax under RCW 82.04.4287 where the fruit packing house and the grower of the fruits were affiliated entities.
         
       
       
OTHER: