Rules and Ancillary Document Review Checklist

Document Reviewed: WAC 458-20-133, Frozen Food Lockers

Reviewer: Stephen Butter

Date Review Started: 7/9/97 Completed: 7/29/97

Reason for Review: EO 97-02 x DOR review Other

Type an "x" (lowercase) in the column that most correctly answers the question.

Explain the goal(s) and purpose(s) of the document: The goal of Rule 133 is to explain the excise taxation that applies to the frozen food locker business. This rule explains the application of the business and occupation tax upon gross income from rentals, and retail sales tax application to charges for the processing of certain meat products.
Need:

YES	NO
	x	If reviewing a rule are there any other ancillary documents that can be included in a rule revision? (List ancillary documents in the space provided).
	na	If reviewing an ETB or PTB or any other ancillary document can it be easily included in an existing rule?
x		Is the document necessary to comply with the statutes that authorize it?
	x	Is the document ambiguous to a degree that warrants repeal or revision?
x		Have laws or other circumstances changed so that the document should be amended or repealed?
x		Is the document necessary to protect or safeguard the health, welfare, or safety of Washington’s citizens (welfare includes budget levels necessary to provide services to the citizens of the state of Washington)?

Please explain answer(s) and list ancillary documents reviewed in connection with a rule review.

Ancillary documents reviewed:

Definition; RCW 19.32.020. RCW 69.10.005, "Food storage warehouse" as distinguished from rental of frozen food lockers.

E2SSB 5074 "Tax incentives for warehouses, Chapter 450, Laws of 1997".

WAC 458-20-182, "Warehouse Businesses" . Rule 182 also explains the tax liability for renting frozen food lockers, but does not address the issue of curing, smoking, cutting, or wrapping meat for consumers.

Effectiveness:

YES	NO
x		Is the document providing the results that is was originally designed to achieve in a reasonable manner?
	x	Are there regulatory alternatives or new technologies that could more effectively or efficiently achieve the same objectives?

Please explain answer(s):

The document was issued some time ago and does provide the results that it was originally designed to achieve. It is, however, questionable whether the subject matter included in this document continues to justify this rule, especially since much of the tax reporting information is currently contained in Rule 182.

Clarity:

YES	NO
x		Is the document written and organized in a clear and concise manner so that it can be readily understood by those to whom it applies?

Please explain answer(s):

The rule is written in a clear and concise manner.

Intent and Statutory Authority:

YES	NO
x		Is the document consistent with the legislative intent of the statutes that authorize it?
x		Is the document based upon sufficient statutory authority
	x	Is there a need to develop a more specific legislative authorization in order to protect the health, safety, and welfare of Washington’s citizens?
	x	Is there a need to recommend legislative changes to the underlying statutes?

List authorizing statutes, Give cites as required and explain answer(s):

Authorizing statute: RCW 82.32.300

The rule is consistent with the legislative intent of the statutes it implements.

Coordination: Agencies should consult with and coordinate with other jurisdictions that have similar regulatory requirements when it is likely that coordination can reduce duplication and inconsistency.

YES	NO
	x	Could additional consultation and coordination with other governmental jurisdictions and state agencies with similar regulatory authority eliminate or reduce duplication and inconsistency?

Please explain answer:

The Department has the exclusive authority for administrating the business and occupation, and retail sales taxes.

Cost: (Answer yes only when a Cost Benefit Analysis was completed when the rule was last amended).

YES	NO
	x	Have qualitative and quantitative benefits of the document been considered in relation to its costs? (Consider only costs imposed by document not statute.)

Please explain answer:

Rules are permanent documents that are readily available to the public that reduce the burden on taxpayers who would otherwise be required to research multiple statutes and information sources to determine their proper tax liability. This interpretive rule imposes no new or additional administrative burden on businesses that are not imposed by law.

Fairness:

YES	NO
x		Does the document result in equitable treatment of those required to comply with it?
	x	Should it be modified to eliminate or minimize any disproportionate impacts on the regulated community? (Consider only impacts imposed by document not statute).
	x	Should it be strengthened to provide additional protection?

Please explain answer(s):

The rule clearly and briefly describes the taxability of the business of frozen food lockers. This information helps provide for an equitable tax treatment of persons engaged in this business activity.

x The document conforms to the formatting specifications of the Code Reviser.

____x____ The rule, if in outline format, is not taken beyond the fourth level, i.e., (1),(a),(i), and (A)

OTHER: State which statute is implemented. When listing court cases list name and cites only. Answer all statements or questions completely. If more explanation is needed, add it.

Statutes Implemented:

RCW 82.04.290 (service B&O tax imposed);

RCW 82.04.050 (definition of retail sale);

RCW 82.04.250 (retailing B&O tax imposed); and

RCW 82.08.020 (retail sales tax imposed)

Court Cases (names and cites only please): none

Administrative Decisions (WTDs, BTAs, and other ancillary documents):

E2SSB 5074 "Tax incentives for warehouses, Chapter 450, laws of 1997.

no Business Methods have substantially changed to warrant repealing or amending the document.

no Administrative Changes have occurred enough to warrant repealing or amending the document.

Review Recommendation: Check the appropriate space to indicate you are recommending: Amend; Repeal; or Leave the rule or ancillary document as is. If you are reviewing an ancillary document there is space to recommend incorporating ancillary documents into a new or existing rule. Explain your answer in the space provided.

Amend

x Repeal

Leave as is

Incorporate ancillary document into a new or existing rule.

Explanation: (If you chose amend or a new rule, please explain why rule making is being considered and list specific reasons why the rule is necessary. If you choose "leave as is" explain why rule should remain in its present state):

This rule should be repealed. The taxability of charges for the rental of frozen food lockers is currently addressed in Rule 183. The remaining issue addressed in current Rule 133, the taxability of processing meat products for consumers, does not in and of itself warrant retaining this rule.

Manager action: Date: ________________

_____ Reviewed recommendation _____ Accepted recommendation

_____ Returned for further action

Comments: