WAC 189

Definitions.

"Person," "company."

Sale at Retail" "Retail Sale"

Tax upon extractors

Tax on manufacturers

Tax on Retailers

Tax on wholesalers, distributors

Tax on international investment management services or other business or service activities.

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

Exemptions -- Grants by United States government to municipal corporations or political subdivisions.

Exemptions -- County, city, town, school district, or fire district activity.

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

Exemptions -- Sale of copied public records by state and local agencies.

Exemptions -- Sale of the operating property of a public utility to the state or a political subdivision.

Exemptions -- Sales to municipal corporations, the state, and political subdivisions of tangible personal property, labor and services on watershed protection and flood prevention contracts.

Exemptions -- Sales of and labor and service charges for mining, sorting, crushing, etc., of sand, gravel, and rock from county or city quarry for public road purposes.

Exemptions -- Sales between political subdivisions resulting from annexation or incorporation.

Exemptions -- Sales of ferry vessels to the state or local governmental units -- Components thereof -- Labor and service charges.

Exemptions -- Sales of amusement and recreation services or personal services by nonprofit youth organization -- Local government physical fitness classes.

Use Tax Imposed

Exemptions -- Use of sand, gravel, or rock to extent of labor and service charges for mining, sorting, crushing, etc., thereof from county or city quarry for public road purposes.

Credit for retail sales or use taxes paid to other jurisdictions with respect to property used.

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

Public utility tax imposed--Additional tax imposed--Deposit of moneys.

Sales to and by the state of Washington, counties, cities, towns, school districts and fire districts. Effective 1/6/96

These rules all refer to resale certificates. Proposed action is to add standard language to recognize reseller permits for sales made on or after January 1, 2010.

AGRICULTURAL ORGANIZATIONS WORKING WITH GOVERNMENTAL UNITS SUBJECT TO TAX - This document explains that nonprofit agricultural organizations composed of farmers working closely with governmental units are not entitled to the B&O tax exemption provided to state and federal entities. While this result is generally correct, this document fails to recognize chapter 200, Laws of 1998 (codified as RCW 82.04.338). This legislation provides a B&O tax exemption under certain circumstances to nonprofit organizations working with a hop commodity commission or hop commodity board.

How are Port Charges for Dockage, Berthage, and Moorage of Ocean Vessels Taxed This ETA explains the application of the Stevedoring Business and Occupation Tax to dockage, berthage, or moorage of ocean going vessels that is a part of a port’s functions, and alternatively, the application of the Public Utility Tax to ocean vessels docked for other purposes. This ETA was previously issued on February 2, 2009, has been reissued to address stevedoring; to include “dockage;” and to direct businesses to WAC 458-20-118 for reporting instructions for recreational moorage.

MUNICIPAL INCOME FROM METERS IN A FERRY TERMINAL PARKING LOT Cancelled 1/29/09. This ETA explains that off street parking provided by cities is subject to retailing B&O tax and retail sales tax. This subject is adequately addressed in WAC 458-20-189, with subsection (3)(c) explaining that on-street parking is exempt and subsection (4)(a) (v) explaining that income from off-street parking is a retail sale.

Retail Sales by Colleges and Universities

Brokered Sales of Vessels – Determining the Place of Sale

Washington Government Entities Tax Obligations

Tax Incentives for the Production of Solar, Methane and Wind Power

Excise Tax Exemption for Small Water Districts and Small Irrigation Districts

Public Transportation Agencies May Deduct Fare Revenue

Requirements for Long Term Moorage Providers

Tax Reporting for Nonprofit Water Associations

Requirements for Long Term Moorage Providers

Small Water-Sewer and Irrigation Districts/Systems Exemptions Expire

Vessel Deconstruction – Sales & Use Tax Exemption

Parking and Business Improvement Areas

Important Changes for Non-Profit Org & Local Governments

Renewable Energy Cost Recovery Incentive Program, Modifications to Program

PUBLIC UTILITY TAX -- TAXICABS -- URBAN TRANSPORTATION.Cab operator's income from contracting with local public transportation agencies to provide transportation services to segments of public is taxable.

PUBLIC UTILITY TAX -- TAXICABS -- URBAN TRANSPORTATION. The taxpayer's gross receipts from the taxi business are subject to the public utility tax with no deductions for compensation paid to drivers, who were under taxpayer's direction and control.

PUBLIC UTILITY TAX -- TAXICABS -- URBAN TRANSPORTATION. Income received by taxi cab business from transporting elderly and physically challenged passengers is subject to public utility tax, just like income from other passengers is taxed.

PUBLIC ROAD CONSTRUCTION -- “MASS PUBLIC TRANSPORTATION TERMINALS AND PARKING FACILITIES” -- PORT DISTRICT -- AIRPORT. Because a port district is not a “municipality” as defined by RCW 35.95.020, or an RTA, and because a port district is generally not authorized to engage in a transportation business, Taxpayer, as a port district, does not qualify for “public road construction” tax treatment when it builds, repairs, or improves an airport passenger terminal which does not serve an urban public transportation system.

REFUSE OR SOLID WASTE COLLECTION BUSINESS -- POLITICAL SUBDIVISIONS -- COMPENSATION FOR SERVICES. Amounts received by a municipal corporation from a county health department are deductible under RCW 82.04.4291.

B&O TAX -- PERSONS SUBJECT TO TAX -- STATE AGENCIES -- BOARDS. A non-corporate state board is treated for B&O tax purposes as other non-corporate state agencies, such as departments and institutions of higher learning. Accordingly, B&O tax is not imposed on the fees a board may charge for the services it provides in accordance with its legislative mandate.

USE TAX – BUSINESS AND OCCUPATION TAX – PUBLIC UTILITY TAX – EXEMPTION – COST OF CAPITAL FACILITIES. The exemption to the public utility tax, provided by the former RCW 82.16.417, does not extend to amounts paid to a municipal corporation’s water department from a water district, organized under ch. 57.04 RCW, when the municipal corporation’s water department uses a portion of those payments to pay for its capital facilities.

B&O TAX – SEWERAGE COLLECTION BUSINESS – ENTERPRISE ACTIVITIES. A municipality’s sewerage and surface water management services are not exclusively governmental in nature, and revenues from those activities are subject to the business and occupation tax.

B&O TAX -- PERSONS SUBJECT TO TAX -- STATE AGENCIES -- BOARDS. A non-corporate state board is treated for B&O tax purposes as other non-corporate state agencies, such as departments and institutions of higher learning. Accordingly, B&O tax is not imposed on the fees a board may charge for the services it provides in accordance with its legislative mandate.

USE TAX – PRINTED MATERIALS PRODUCED BY A COUNTY FOR ITS OWN USE -- MEASURE OF VALUE TAXED. The correct measure of tax includes every item of cost attributable to the production of the particular item.Such costs include labor, materials and both direct and indirect overhead.

RCW 82.04.260(7) – ETA 3019.2014 – B&O TAX – STEVEDORING AND ASSOCIATED ACTIVITIES – VESSEL BERTHING. Dockage charges for vessel berthing for the purpose of moving goods and commodities in waterborne interstate or foreign commerce is subject to tax under the stevedoring business and occupation (B&O) tax classification, pursuant to RCW 82.04.260(7)

HOUSING AUTHORITIES -- STATE TAXES -- REFUSE COLLECTION TAX -- EXEMPTION. City and County Housing Authorities created under chapter 35.82 RCW are exempt of all state taxes, including refuse collection tax.

DEFINITIONS -- STATE DEPARTMENT OR INSTITUTION -- POLITICAL SUBDIVISION. Under the Washington tax laws and other references in state law (see chapter 4.96, 35.31, 36.45, 39.19, and 28B.10 RCW), a state regional university is adepartment or institution of the state of Washington; it is not a political subdivision of the state.

B&O TAX -- DEDUCTION -- POLITICAL SUBDIVISION. A B&O tax deduction is allowed for amounts derived by a political subdivision of the state of Washington from another political subdivision of the state for amounts taxable under the Service B&O tax classification.

B&O TAX - PARKS AND RECREATION DEPARTMENT - PAYMENT FROM CITY IN LIEU OF TAXES. Payments from a city budget to a county parks and recreation department, which are in lieu of a special property tax on city residents and which allow city residents to use county parks and recreation facilities at the same rates as county residents, are not taxable under the business and occupation tax.

RCW 82.12.010 (1) -- RCW 82.12.020 -- 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.

RETAIL SALES TAX -- GOVERNMENTAL ACTIVITY -- ANIMAL CONTROL -- ADOPTION FEES -- LICENSE FEES. Pet adoption fees or license fees are not subject to the retail sales tax.The adoption fee is not charged to purchase the animal, but for the cost of paperwork, licensing, and counseling. This is not a purchase of tangible personal property but a governmental fee.

ENTERPRISE ACTIVITY -- GOVERNMENTAL ACTIVITY -- ANIMAL CONTROL. Animal control activities, which include allowing people to adopt pets and charging a fee, are not enterprise activities but are instead a governmental activity, authorized by RCW 35.24.290. The adoption and/or pet license fees received are not subject to B&O tax.

B&O TAXES -- EXEMPTION -- FIRE DISTRICT-- ENTERPRISE ACTIVITY -- AMBULANCE SERVICE. An ambulance service operated in conjunction with a volunteer fire department is not an exclusively-governmental activity where it is essentially in competition with private business and is funded primarily by user fees.ETB 533.04.189.