WAC 144

Printing Plates - ETB's 417 and 456

Silk Screen Printing ProcessCancelled 07/17/02 Silk Screen Printing Process This directive explains that the intermediate steps in a silk-screen printing process are similar to those used in other more conventional printing processes, and subject to the tax-reporting instructions provided in ETA 417.12.144 (Printing industry - Use tax on consumable materials and supplies) and 456.08.143 (Tax liability of print shops - Plate production and printing charges).It also explains that persons producing silk-screen products and selling the same outside the state incur a manufacturing B&O tax li

Private Mailing Business Tax Guide

School District Guide

"Gross proceeds of sales"

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, consumer as defined in RCW 82.04.190(6)--Cold storage warehouse defined--Storage warehouse defined--Periodical or magazine defined.

Exemptions - Certain materials printed in school district and educational service district printing facilities.

Exemptions - Certain materials printed in county, city, or town printing facilities.

Exemptions - Materials printed in county, city, town, school district, educational service district, library or library district.

Definitions

Tax imposed--Retail sales--Retail car rental.

Exemptions--Sales of manufacturing and research and development machinery and equipment--Labor and services for installation--Exemption certificate--Rules.

Sale of computer equipment parts and services to printer or publisher.

Exemptions--Use of manufacturing and research and development machinery and equipment--Exemption certificate prescribed by department--Annual summary.

Sales and use taxes authorized--Additional taxes authorized--Maximum rates.

Printing industry

Printing industry. Effective 3/2/06.

Printing Industry. The Department has amended WAC 458-20-144 (Rule 144) to reflect the following recent legislative changes: SB 6173 (chapter 563, Laws of 2009) which replaced the resale certificate with a resellers permit as a means to document a wholesale sale; and 2ESSB 6143 (chapter 23 Laws of 2010) which provides that advertising revenues earned by printers are to be apportioned to this state for tax purposes.

CATALOGS PURCHASED WITHIN THE STATE PURCHASED FOR DISTRIBUTION WITHOUT (Cancelled 9/14/01)

Electroplates manufactured and used by a printer

Printing industry- use tax on consumable materials and supplies

ELECTROPLATES MANUFACTURED AND USED OUTSIDE THE STATE Revised 2/2/09 See ETA 3058.2009

PRINTING INDUSTRY --- Use tax on Consumable Materials and Supplies Revised 2/2/09 See ETA 3063.2009

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income

B&O Tax Rate Lowered Printing and/or Publishing of Newspapers

Advertising Income from Electronic Version of Printed Newspaper Now Taxed under Printing and Publishing Classification

Printers and Publishers of Newspapers: B&O Tax Changes and Definitions

Computers Used in Printing & Publishing-Sales & Use Tax Exemption

Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients

New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

New Apportionment Method

USE TAX -- CATALOGS -- WASHINGTON CUSTOMERS --OUT-OF-STATE PRINTERS. Taxpayer is not liable for use tax on catalogs which its printer sends from out-of-state directly to customers in Washington. There is no use by the taxpayer in Washington.Sears v Dept. of Revenue, 97 Wn. 2d 260, 643 P. 2d 884 (1982).

RETAIL SALES TAX -- GROSS PROCEEDS OF SALE --PRINTED PRODUCT -- DESIGN SERVICES. Graphic design services or other intermediate steps performed by the actual printer of the product are services rendered "in respect to" imprinting tangible personal property if those services are directly related to the imprinting services and performed under one or more concurrently executed contracts or invoices.

MFG TAX -- USE AND/OR DEFERRED SALES TAX --MANUFACTURING FOR OWN USE -- INTERMEDIATE STEPS -- SILK SCREENING. The creation of silk-screens by a sign maker was found to be an intermediate step in the printing process. Therefore, manufacturing B&O tax was not due on the value of the screens and use and/or deferred sales tax was due only on the materials consumed.

PHOTOGRAPHIC SERVICES -- SALES TO PRINTERS AND PUBLISHERS -- WHOLESALING B&O TAX.Until modified or withdrawn, Excise Tax Bulletins issued by the Department of Revenue allow a photographer who sells prints with reproduction rights to printers and publishers of magazines, newspapers, and periodicals to take a resale certificate and to charge no retail sales tax. If the photographer takes resale certificates, he or she should report the income from the sale under the Wholesaling B&O tax classification.

MANUFACTURING EQUIPMENT AND MACHINERY EXEMPTION - PRINTING.Blank printing plates, purchased for use in an intermediate step in the printing process, are exempt from retail sales/use tax as machinery and equipment used directly in a manufacturing if they meet the one-year useful life requirement.Blank printing plates purchased for a one-time use are not exempt.Other supplies including film, tape, and developer, are not exempt from retail sales/use tax as machinery and equipment.

USE TAX -- EXEMPTION FOR DONATED ITEMS.Printing charges for coupons used to track and quantify a subsequent donation to a non-profit organization were properly subject to retail sales tax.The use tax exemption for donated items does not provide a basis for refund of retail sales tax properly paid when purchasing items.

RCW 82.04.080, RCW 82.04.090: SERVICE B&O TAX -- ADVERTISING DISPLAY SERVICE -- BONA FIDE DISCOUNT -- NET CHARGE.Service B&O tax on advertising display service charges billed on a net basis is measured by the amount billed and legally due.

RCW 82.04.280:B&O TAX - PRINTING AND PUBLISHING - ADVERTISING MATERIALS AND COUPONS. An assortment of separately printed advertisements and coupons printed on separate pieces of paper and inserted into an envelope cannot properly be described as a work or issue, and is therefore not a "publication."Because the collection of separate pieces of paper is not a "publication," it does not qualify as a "periodical or a magazine" for purposes of the printing and publishing B&O tax classification.

RETAIL SALES TAX -- PRINTED MATTER -- ADVERTISING SERVICES. Sales of printedmatter to an advertising servicebusiness for their own use or for the use of their clients are sales for consumption and subject to the retail sales tax.

USE AND/OR DEFERRED SALES TAX -- PERIODICAL --REAL ESTATE GUIDES -- PRINTING CHARGES. Printing charges for real estate guides given away free by the publisher to its readers found to be subject to use and/or deferred sales tax.

B&O TAX -- PRINTING AND PUBLISHING -- IN-HOUSE PRINTING.Persons acting for business purposes as their own printers are subject tax under the manufacturing B&O tax classification upon that activity.Group Health v. Department of Rev., 106 Wn. 2d 391 (1986); Det. No. 88-186, 5 WTD 319 (1988).

USE TAX -- MEASURE OF -- PRINTED MATERIALS. A county government which makes and uses printed materials is liable for use tax on the total value of such materials which value includes labor and overhead costs expended in the printing thereof.