WAC 268

Tax on retailers.

Tax on manufacturers and processors of various foods and by-products -- Research and development organizations -- Travel agents -- Certain international activities -- Stevedoring and associated activities -- Low-level waste disposers -- Insurance agents, brokers, and solicitors--Hospitals -- Commercial airplane activities -- Timber product activities -- Canned salmon processors.

Exemptions -- Fruit and vegetable businesses.

Exemptions -- Dairy product businesses.

Exemptions -- Seafood product businesses.

Credit -- Research and development spending.

Credit -- Commercial aircraft -- Qualified preproduction development expenditures.

Credit -- Washington customized employment training program.

Tax deferrals for investment projects in rural counties.

Tax deferrals- High technology businesses

Tax deferrals - Fruit and vegetable businesses

Tax deferrals -Biotechnology and medical device manufacturing businesses

Annual surveys for certain tax adjustments. Effective 01/29/07.

In order to take certain tax credits, deferrals, and exemptions ("tax adjustments"), taxpayers must file an annual survey with the Department of Revenue (the "Department") containing information about their business activities and employment. WAC 458-20-268 explains these survey requirements. This rule also explains who is required to file an annual survey, how to file a survey, and what information must be included in the survey. The Department amended the rule to recognize SSB 6828 (chapter 81, Laws of 2008).

Annual Surveys for certain tax adjustments In order to take certain tax exemptions, credits, and rates (“tax adjustments”), taxpayers must file either an annual report or annual survey depending on the tax adjustments being taken. The annual report or survey must be filed with the Department of Revenue detailing employment, wages, and employer-provided health and retirement benefits. These rules explain who is required to and how to file an annual report or annual survey, and what information must be included.

Annual surveys for certain tax adjustments This amendment adds language to WAC 458-20-268 relating to ESSB 5882, chapter 13, section 1503, Laws of 2013, 2013 2nd Special Session requiring an annual survey for the tax exemption for sales and use of machinery and equipment used directly in generating electricity from a qualifying renewable energy source. Further, section (3) of the rule is amended to update the filing requirements.

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.

Annual surveys for certain tax adjustments.Adopted on an emergency basis effective May 10, 2005. It may be used to determine tax liability until September 7, 2005, unless the Department adopts a permanent rule prior to this date.

Semiconductor Materials Manufacturers Filing Requirements Amended for Annual Tax Incentive Survey and Report

Fresh Fruit or Vegetable Manufacturers B&O Tax Exemptions Extended – Change in Filing Requirements

Semiconductor Materials Manufacturers Filing Requirements Amended for Annual Tax Incentive Survey and Report

Annual Survey Special Notice

Dairy Product Manufacturer's B&O tax exemption and preferential B&O tax rate expanded

Seafood product manufacturers B&O tax exemptions extended – Change in filing requirements

Dairy Product Manufacturers B&O Tax Deductions

Dairy product manufacturers’ B&O tax deductions extended – Update on tax reporting requirements

Fresh Fruit or Vegetable Manufacturers B&O Tax Exemptions

Sales and use tax deferral for manufacturers

Seafood Product Manufacturers B&O Tax Exemptions

RCW 82.63.045:SALES TAX DEFERRAL – ANNUAL SURVEY – DELINQUENT FILING – EXTENSION OF DUE DATE.The legislature has conferred to the Department no authority to extend the due date for filing an annual survey required by the high technology retail sales and use tax deferral program under Chapter 82.63. RCW.

RCW 82.63.045:SALES TAX DEFERRAL – ANNUAL SURVEY – REPAYMENT ASSESSMENT – COMPUTATION – CONSUMED EQUIPMENT.If a tax deferral recipient fails to timely file a survey, a repayment assessment is issued on 12.5% of the total taxes deferred under the certificate, including those imposed on property already consumed.

RCW 82.63.045, RCW 82.32.090:SALES TAX DEFERRAL – ANNUAL SURVEY – REPAYMENT ASSESSMENT – ASSESSMENT PENALTY.If a tax deferral recipient fails to timely file a survey, a repayment assessment is issued on 12.5% of the total taxes deferred under the certificate plus interest.However, the assessment penalty does not apply.

RULE 268; RCW 82.32.630, RCW 82.32.590: - ANNUAL SURVEY FOR TIMBER TAX INCENTIVES – DUE DATE EXTENSION. The Department has the statutory authority to extend the timber products annual survey due date provided the taxpayer’s failure to timely file was due to circumstances beyond its control. A good faith lack of knowledge of a taxpayer’s tax obligation and responsibilities, however, is not a circumstance beyond a taxpayer’s control that warrants a due date extension.

RULE 268, RCW 82.04.4452: HIGH TECH R&D CREDIT – SURVEY – TIMELY FILED -- SURREAL. Corporations were not entitled to claim the high technology R&D tax credit when they failed to file surveys for the year in which the credits were claimed.

RULE 268; RCW 82.04.4452, RCW 82.32.585, RCW 82.32.590: BUSINESS AND OCCUPATION TAX – TAX CREDIT FOR QUALIFIED RESEARCH AND DEVELOPMENT SPENDING – ANNUAL SURVEY REQUIREMENT – CRITERIA FOR EXTENSION OF THE FILING DEADLINE. Taxpayer failed to timely file with the Department the annual survey required to qualify for a research and development (R&D) spending business and occupation (B&O) tax credit. In addition, Taxpayer’s circumstances did not meet the criteria for extension of the filing deadline.