home home Find a law or rule home Rule Making Activities home Recent Rule and Interpretive Statements, Adoptions, and Repeals Recent Rule and Interpretive Statements, Adoptions, and Repeals

Below are rule and interpretive statement actions. For information regarding how these rules and interpretive statements may affect you, email us or call 1-800-647-7706. Also, see more information regarding the Department's rule making process, including rule making currently in progress and how to participate.


Pursuant to RCW 34.05.330, you have the right to petition the Department to adopt, amend, or repeal any administrative rule. Obtain a copy of the petition online, or call call 1-800-647-7706. The petition process is governed by the Office of Financial Management (Chapter 82-05 WAC).


NOTE:
> Click on a month below to see what actions took place during that month.

> Click on an action (link) to see details of that action.

Rules:
WAC - Washington Administrative Code

Interpretive Statements:
ETA - Excise Tax Advisory
PTA - Property Tax Advisory
IAG - Interim Audit Guideline

April 2015

March 2015

February 2015

January 2015


April 2015

WAC 458-17-101 Assessment and taxation of ships and vessels explains the application of the personal property tax to ships and vessels. This rule is amended to incorporate legislation from the 2014 legislative session (2SSHB [2SHB] 2457) that imposes a new annual derelict vessel removal fee for commercial vessels subject to state property tax.

WAC 458-20-257 Tangible personal property warranties and service contracts. This rule, previously titled “Warranties & maintenance agreements,” explains the tax reporting responsibilities of persons selling or performing services covered by warranties, service contracts, and mixed agreements.

WAC 458-20-280 General Rule: Tax Avoidance,WAC 458-20-28001 Construction joint ventures and similar arrangements described in RCW 82.32.655 (3) (a), WAC 458-20-28002 Disguised income arrangements described in RCW 82.32.655 (3) (b), WAC 458-20-28003 Sales and use tax avoidance arrangements described in RCW 82.32.655 (3) (c). These four new rules assist in determining whether a transaction or arrangement is designed to unfairly avoid taxes within the scope chapter 82.32.655 RCW. WAC 458-20-280, WAC 458-20-28001, WAC 458-20-28002, and WAC 458-20-28003 is a set of four rules: one general rule and three separate rules for each of the three types of tax avoidance identified in RCW 82.32.655(3). The rules are necessary to explain the implications of the legislation in 82.32.655 RCW.

ETA 3047.2015 Retail Sales Taxes Imposed on Telecommunications Used to Provide Internet Access. This ETA primarily addresses Washington’s taxation of telecommunications used to provide
Internet access under the Internet Tax Freedom Act (“ITFA”), 47 U.S.C. § 151. This ETA is being updated to reflect ITFA’s new extension date ending October 1, 2015.

 

March 2015

ETA 3133.2015 Withdrawal of Published Determinations This ETA announces the withdrawal of certain published determinations, or Washington Tax Decisions (WTDs), that should no longer be followed. The latest WTD to be withdrawn, Det. 11-0227, 31 WTD 57, did not adequately address the application of RCW 82.45.010(3)(j) as it applies to a REET exemption for transfers or conveyance in the context of a receiver appointed during a judicial foreclosure action. The Department has reordered the listing of withdrawals so that the latest withdrawal appears first.

WAC 458-16-165 Conditions under which nonprofit organizations, associations, or corporations may obtain a property tax exemption incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property owned by nonprofit organizations; E2SSB 5078 (2013), which modified the property tax exemption for nonprofit fair associations; E2SHB 1597 (2010), which updated a cross reference to hospitals; and SB 6280 (2006), which removed the irrevocable dedication requirement for nonprofit organizations. Updated rule to reflect existing language in RCW 84.36.805 and clarified due dates.

WAC 458-16-190 Churches, parsonages, and convents incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property owned by nonprofit organizations; SHB 2402 (2010), which allows tax exempt property to be used to conduct a farmers market; and updated rule to reflect existing language in RCW 84.36.020.

WAC 458-16-210 Nonprofit organizations or associations organized and conducted for nonsectarian purposes incorporates SSB 6600 (2012), which extends a property tax exemption to property used exclusively by certain nonprofit organizations that is leased from an entity that acquired the property from a previously exempt nonprofit organization.

WAC 458-16-220 Church camps incorporates SSB 6600 (2012), which extends a property tax exemption to property used exclusively by certain nonprofit organizations that is leased from an entity that acquired the property from a previously exempt nonprofit organization; and updated rule to reflect existing language in RCW 84.36.800.

WAC 458-16-230 Character building organizations incorporates SSB 6600 (2012), which extends a property tax exemption to property used exclusively by
certain nonprofit organizations that is leased from an entity that acquired the property from a previously exempt
nonprofit organization.

WAC 458-16-240 Veterans organizations incorporates SSB 6600 (2012), which extends a property tax exemption to property used exclusively by certain nonprofit organizations that is leased from an entity that acquired the property from a previously exempt nonprofit organization; updated rule to reflect existing language in RCW 84.36.030; and removed duplicative language incorporated into WAC 458-16-165.

WAC 458-16-260 Nonprofit child day care center, libraries, orphanages, homes for sick or infirm, hospitals, outpatient dialysis facilities incorporates E2SHB 1597 (2010), which updates a cross reference to hospitals and day care centers; and removed duplicative language incorporated into WAC 458-16-165.

WAC 458-16-270 Schools and colleges incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property
owned by nonprofit organizations; removed duplicative language incorporated into WAC 458-16-165; and updated
rule to reflect existing language in RCW 84.36.840.

WAC 458-16-280 Art, scientific, and historical collections incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property
owned by nonprofit organizations; and removed duplicative language incorporated into WAC 458-16-165.

WAC 458-16-282 Musical, dance, artistic, dramatic, and literary associations incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property owned by nonprofit organizations; and removed duplicative language incorporated into WAC 458-16-165.

WAC 458-16-290 Nature conservancy lands incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property owned by nonprofit organizations; and updated rule to reflect language in RCW 84.34.250, RCW 84.36.260, and RCW 84.36.264.

WAC 458-16-310 Community celebration facilities incorporates SB 6405 (2014), which standardizes criteria for non-exempt uses of tax exempt property
owned by nonprofit organizations; removed duplicative language incorporated into WAC 458-16-165 and covered by
WAC 458-16-300; and updated rule to reflect existing language in RCW 84.36.037 and RCW 84.36.805.

February 2015

WAC 458-20-126 Sales of motor vehicle fuel, special fuel, and nonpolluting fuel to:

  • Recognize provisions of ESSB 6440, Sec. 301, 304, and 305 (Chapter 216, Laws of 2014) with respect to natural gas, compressed natural gas, or liquefied natural gas used for transportation fuel;
  • Update language on filing and paying retail sales and use tax for motor vehicle fuel, special fuel, and fuels commonly referred to as liquefied natural gas, compressed natural gas, or propane; and
  • Clarify language such as changing “section” to “rule” throughout.

WAC 458-29A-400 Leasehold excise tax - Exemptions to:

  • Recognize provisions of ESSB 5882, Sec. 1701, and 1717 (Chapter 13, Laws of 2013), establishing expiration dates for new tax preferences for the leasehold excise tax; and
  • Clarify language throughout the rule.

ETA 3195.2015 Economic Nexus Minimum Thresholds This ETA provides the “substantial nexus thresholds” (thresholds) as directed by RCW 82.04.067(5). When the cumulative percentage change in the consumer price index for all urban consumers (CPI-U) changes by five percent or more from the measurement date, the Department must adjust the thresholds to reflect that cumulative change in the CPI-U. The measurement date is the date the thresholds were last adjusted.

January 2015

WAC 458-20-179 Public utility tax explains the public utility tax (PUT) imposed by chapter 82.16 RCW. The PUT is a tax for engaging in certain public service and transportation businesses within the state. The Department is amending Rule 179 to include language that explains the PUT exemption for income from sales by a gas distribution business of natural gas, compressed natural gas, and liquefied natural gas used for transportation purposes. This exemption is from legislation ESSB
6440 (chapter 216, Laws of 2014) and is not effective until July 1, 2015.

ETA 3194.2015 Impact of Getty Images Decision  explains that the Washington State Court of Appeals, Division 1, decision in Getty Images (Seattle), Inc. v. City of Seattle, 163 Wn. App. 590, 260 P.3d 926 (2011)does not represent a major departure from established law in the context of affiliate transactions.  Getty Images addresses the taxability of amounts received by a parent company from affiliates to pay costs for providing administrative and management services to those affiliates.

WAC 458-20-19401 Minimum nexus thresholds for apportionable activities, WAC 458-20-19402 Single factor receipts apportionment – Generally, WAC 458-20-19403 Apportionable royalty receipts attribution, WAC 458-20-19404 Financial institutions – Income apportionment and WAC 458-20-19405 CPI-U adjustments to minimum nexus thresholds for apportionable activities
The amendments to these rules:

  • Repeal Rule 19405 and put this language into a new Excise Tax Advisory (ETA);
  • Delete multiple references to Rule 19405 in Rules 19401 through 19404; and
  • Recognize provisions of SSB 6333, Sec. 305 (chapter 97, Laws of 2014) in Rules 19402 and 19403.

WAC 458-20-268 Annual surveys for certain tax adjustments is amended to recognize provisions of ESSB 5882
(Chapter 13, Laws of 2013); and SSB 6333 (Chapter 97, Laws of 2014). Please see attachment for a description of the
changes to the existing rule.

WAC 458-20-17902 Brokered natural gas - Use tax to:
 Recognize provisions of ESSB 6440, Sec. 301, 304, and 305 (Chapter 216, Laws of 2014);
 Update language on filing and paying use tax on brokered natural gas electronically either monthly or quarterly; and
 Clarify language changing “section” to “rule” throughout.

WAC 458-30-200 Definitions WAC 458-30-210 Classification of land under chapter 84.34 RCW provide definitions used in the administration of chapter 458-30 WAC. Amending WAC 458-30-200 will clarify and update definitions the Department and county assessor offices use when administering the current use program under chapter 84.34 RCW. Additionally, the Department believes that the definitions found in WAC 458-30-210 can be incorporated into the definitions in WAC 458-30-200 to improve the entire chapter. WAC 458-30-210 can then be repealed.

WAC 458-14-056 Petitions - Time limits - Waiver of filing deadline for good cause incorporates SSB 6333 (2014), which added language to RCW 84.40.038 regarding electronic
transmission of value change notices or other notices; and updated an example.

WAC 458-19-005 Definitions incorporates SSB 6333 (2014), which clarifies the date in September that the implicit price deflator is
published by the federal department of commerce; SHB 1634 (2014), which allows a taxing district’s levy limit to be
increased due to solar, biomass, and geothermal facilities producing electricity; EHB 1969 (2011), which allows a Flood
Control Zone District in certain counties to protect a portion of its levy rate outside of the $5.90 limitation; 2SSB 5433
(2009), which protects the levy rate for county transit-related purposes from prorationing under the $5.90 limitation; SSB
6141 (2006), which allows a taxing district’s levy limit to be increased due to wind turbines that generate electricity;
clarifies which levy rate to use in the levy limit calculation if the rate is reduced due to prorating or if the rate reflects an
error; and incorporates statutory language to various definitions.

WAC 458-19-020 Levy limit - Method of calculation incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; and SSB 6141 (2006), which allows a taxing district’s levy limit
to be increased due to wind turbines that generate electricity.

WAC 458-19-025 Restoration of regular levy incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; and SSB 6141 (2006), which allows a taxing district’s levy limit
to be increased due to wind turbines that generate electricity.

WAC 458-19-030 Levy limit - Consolidation of districts incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; and SSB 6141 (2006), which allows a taxing district’s levy limit
to be increased due to wind turbines that generate electricity.

WAC 458-19-035 Levy limit - Annexation incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; SSB 6141 (2006), which allows a taxing district’s levy limit to be
increased due to wind turbines that generate electricity; clarifies how to calculate the levy rate when an annexation occurs;
updated established boundary date; and updated an example.

WAC 458-19-060 Emergency medical services levy incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; and SSB 6141 (2006), which allows a taxing district’s levy limit
to be increased due to wind turbines that generate electricity.

WAC 458-19-065 Levy limit - Protection of future levy capacity incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; SSB 6141 (2006), which allows a taxing district’s levy limit to be
increased due to wind turbines that generate electricity; and updated an example.

WAC 458-19-085 Refunds - Procedures - Applicable limits incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; and SSB 6141 (2006), which allows a taxing district’s levy limit
to be increased due to wind turbines that generate electricity.

WAC 458-19-550 State levy - Apportionment between counties incorporates SHB 1634 (2014), which allows a taxing district’s levy limit to be increased due to solar,
biomass, and geothermal facilities producing electricity; and SSB 6141 (2006), which allows a taxing district’s levy limit
to be increased due to wind turbines that generate electricity.

WAC 458-30-232 Application for timber land classification incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program. Updated rule by adding statutory language from RCW 84.34.041 and added language from WAC 458-30-240 and WAC 458-30-250.

WAC 458-30-240 Agreement relating to open space and timber land classifications incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program.

WAC 458-30-275 Continuing classification upon sale or transfer of ownership of classified land - Actions of landowner and county officials to be taken prior to recording a conveyance of classified land incorporates 2ESHB 1117 (2014), which allows classified land to be transferred without the signing of a notice of classification continuance if it is a transfer by a transfer on death deed; E2SHB 1597 (2010), which allows classified land to be subject to the same gross income requirements applicable before death if classified farm and agricultural land is transferred to a surviving state registered domestic partner; and EHB 1815 (2009), which allows a minimum investment requirement for land at least five but less than twenty acres that contains a standing crop. Updated rule to reflect existing language in RCW 84.34.020, RCW 84.34.041, RCW 84.34.080, and RCW 84.34.108. Updated examples, deleted outdated references, and clarified various subsections.

WAC 458-30-280 Notice to withdraw from classification incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program. Updated rule by adding statutory language from RCW 84.34.070.

WAC 458-30-285 Withdrawal from classification incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program. Updated rule by adding statutory language from RCW 84.34.070 and RCW 84.34.108, and also updated examples.

WAC 458-30-295 Removal of classification incorporates 2ESHB 1117 (2014), which allows classified land to be transferred without the signing of a notice of classification continuance if it is a transfer by a transfer on death deed; and SSB 6333 (2014), which added language to RCW 84.40.038 regarding electronic transmission of value change notices or other notices. Updated rule by adding language from RCW 84.34.108, WAC 458-30-270, WAC 458-30-275, and WAC 458-30-285; and clarified various subsections.

WAC 458-30-300 Additional tax - Withdrawal or removal from classification incorporates 2ESHB 1117 (2014), which allows classified land to be transferred without the signing of a notice of classification continuance if it is a transfer by a transfer on death deed; SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program; and HB 1277 (2013), which allows Federally recognized Indian tribes to acquire classified land for conservation purposes without payment of additional tax, interest, and penalty. Updated rule using language from RCW 84.34.108, RCW 84.33.145, WAC 458-30-245, WAC 458-30-275, and WAC 458-30-295 to clarify removal process, and added an example.

WAC 458-30-325 Transfer between classifications - Application for reclassification incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program. Deleted outdated language and reference, added an example, and updated an example; and updated rule using language from RCW 84.34.030 and RCW 84.33.145.

WAC 458-30-500 Definitions of terms used in WAC 458-30-500 through 458-30-590 incorporates 2SHB 1416 (2013), which removed irrigation districts from the definition of “local government;” and deleted definitions that are already defined in a prior section.

WAC 458-30-520 Notification of district - Certification by assessor - Estimate by district incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program; added clarifying language from RCW 84.34.030, RCW 84.34.035, and RCW 84.34.041; and deleted language that conflicts with statute.

WAC 458-30-550 Exemption - Removal or withdrawal incorporates SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program.

WAC 458-30-700 Designated forest land - Removal - Change in status - Compensating tax incorporates 2ESHB 1117 (2014), which allows classified land to be transferred without the signing of a notice of classification continuance if it is a transfer by a transfer on death deed; SB 6180 (2014), which allows counties to merge its timber land classification and its designated forest land program; SSB 6333 (2014), which added language to RCW 84.40.038 regarding electronic transmission of value change notices or other notices and also clarified that treasurers mail out the notice of the amount of compensating tax due; HB 1277 (2013), which allows Federally recognized Indian tribes to acquire designated forest land for conservation purposes without payment of compensating tax; 2SSB 5367 (2013), which allows community forest trust lands to be removed from designation without compensating tax if acquired by certain entities; ESHB 2502 (2012), which allows forest land to be removed from designation if transferred to certain entities for conservation purposes in a county with a population of at least 245,000 that borders Puget Sound; SHB 1733 (2009), which allowed forest land to be removed without compensating tax if the assessor discovered the forest land was designated in error through no fault of the owner; updated removal dates, chart, and language to be consistent with RCW 84.33.140, RCW 84.33.220, and existing language in WAC 458-30-700, added an example, and deleted an outdated reference.

WAC 458-20-261 Commute trip reduction incentive amended to recognize provisions of ESSB 6001 (Chapter 222, Laws of 2014); and SSB 6333 (Chapter 97, Laws of 2014). The changes to this rule explain that:

  • Vehicles must be “primarily” used for commuter ride sharing (subsection (3)(b));
  • If the program is not extended after June 30, 2015 that commute trip reduction incentive payments paid by employers and
  • property managers from January 1, 2015 through June 30, 2015 will not accrue commute trip reduction credits (subsection (4)(h));
  • Deleting dated language relating to periods prior to a statutory change effective June 30, 2005; and
  • Clarifying language in an example that there is a maximum credit limit of $60 per employee (subsection ((k)(iii)).