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WAC 235 Effect of rate changes on prior contracts and sales agreements.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
       
WAC: 458-20-235 03/01/10 The Department amended WAC 458-20-235 to:

Recognize provisions of RCW 82.08.064(3), which provides specific guidance for the effect of sales tax rate changes for persons performing retail services such as repairing property and constructing buildings.
Remove the last paragraph, which referred cash-basis taxpayers to WAC 458-20-199 for instructions on the taxpayer’s responsibility to make an “accounts receivable adjustment” when there is a change in tax rates.  This adjustment is no longer required in WAC 458-20-199.
Provide contact information for persons with questions on how they might be affected by tax rate changes.
Add subsection titles and numbers to provide the information in a more useful manner.
Editing changes were also made for clarity purposes, and do not involve taxability changes.

  458-20-235   03/15/1983 Effect of rate changes on prior contracts and sales agreements.Effective ---
         
       
RCW: 82.04.220   1961 Business and Occupation tax imposed.
  82.08.020   1992 Tax imposed-Retail sales-Retail car rental.
  82.12.020   1994 Use tax imposed.
  82.14.030   1989 Sales and use taxes authorized-Additional taxes authorized-Maximum rates.
  82.16.020   1982 Public utility tax imposed-Additional tax imposed-Deposit of money.
  82.24.020   1981 Tax imposed-Additional taxes for specific purposes-Absorption of tax-Possession defined.
  82.08.02565   1996 Exemptions--Sales of manufacturing and research and development machinery and equipment--Labor and services for installation--Exemption certificate--Rules.
         
       
ETA: 3150.2009 2/2/09 Payment prior to services - When taxable
  117.08.235 8/5/66 PAYMENT PRIOR TO SERVICES - WHEN TAXABLE Revised 2/2/09 See ETA 3150.2009
       
INDUSTRY GUIDES:      
         
       
SPECIAL NOTICES:      
Subject Title Reference:      
       
       
         
DIRECTIVE: NONE      
         
       
TAX TOPICS:      
         
       
RPM: NONE      
         
       
WTD: 6 WTD 147 88-260   TAX RATE CHANGES -- CASH BASIS TAXPAYER -- ACCOUNTS RECEIVABLE ADJUSTMENT.Taxpayers filing returns on a cash receipts basis per Rule 199's method three must make an accounts receivable adjustment at the time of a change in tax rates.Where a cash receipts taxpayer held a promissory note (deemed an account receivable) and a tax rate change became effective May 1, 1982, the account receivable became subject to taxation in the reporting period April 1982.
  17 WTD 424 98-098   MACHINERY AND EQUIPMENT – EXEMPTION – SALES CONTRACTS – SALES PRIOR TO EFFECTIVE DATE OF EXEMPTION.A taxpayer need not collect and remit retail sales tax to the Department of Revenue, on amounts received for sales of machinery or equipment that otherwise qualify as exempt under RCW 82.08.02565, when the unconditional sales contract was entered into prior to the effective date of that statute and the amounts were received prior to the effective date of that statute, if the machinery or equipment was delivered after the effective date of RCW 82.08.02565.
  19 WTD 177 99-179   MANUFACTURING MACHINERY AND EQUIPMENT EXEMPTION – RECEIPT BEFORE AND AFTER EFFECTIVE DATE OF EXEMPTION.When a taxpayer purchases machinery and/or equipment that qualifies for the manufacturing machinery and equipment exemption from the retail sales and use taxes and receives a portion of the machinery and equipment before the effective date of the exemption (July 1, 1995) and a portion after the effective date, only the portion received after the effective date qualifies for the exemption.
  19 WTD 177 99-179   MANUFACTURING MACHINERY AND EQUIPMENT EXEMPTION – RECEIPT BEFORE AND AFTER EFFECTIVE DATE OF EXEMPTION.When a taxpayer, in addition to purchasing machinery and/or equipment that qualifies for the manufacturing machinery and equipment exemption from the retail sales and use taxes, purchases installation services and the installation services are provided both before and after the effective date of the exemption, the taxpayer is entitled to the exemption for the entire installation costs.However, if the taxpayer is unable to document a separate charge for the installation services, the exemption shall apply based on the percentage of the tangible property received after the effective date of the exemption.
         
       
OTHER: