Rule making agenda

RCW 63.30.590 (effective January 1, 2023) requires the Department of Revenue to adopt rules governing standards and procedures for conducting an
examination (i.e., audit) of records under RCW 63.30.580. This proposed rule establishes such standards and procedures, including for examinations that are conducted by third-party auditors on behalf of the Department.

WAC 458-20-13501 explains the application of the business and occupation (B&O), public utility, retail sales, and use taxes to persons performing activities associated with timber harvest operations. This rule explains how the public utility tax deduction provided by RCW 82.16.050 for the transportation of commodities to an export facility applies to the transportation of logs. It also explains how the B&O tax exemption provided by RCW 82.04.333 for small timber harvesters applies.

Exemptions from retail sales and use taxes for qualifying electric generating systems using renewable energy sources.

The purpose of this rulemaking effort is to provide information about the qualifying criteria, application, and documentation requirements for the retail sales and use tax exemptions provided in RCW 82.08.820 and 82.12.820, respectively.

The purpose of this rulemaking effort is to update the definitions for "storage warehouse" and "warehouse" to match the definitions in RCW 82.04.280 and 82.08.820. Additionally, this rulemaking effort adds subsections regarding dry stack storage, portable self-storage containers, prescription drug warehousing, and other rules to reference. Other changes have been made to enhance readability of the rule. 

WAC 458-20-19402 explains the apportionment method for businesses engaged in apportionable activities and that have nexus with Washington for business and occupation (B&O) tax liability incurred after May 31, 2010.

Effective January 1, 2022, Chapter 82.87 RCW imposes an excise tax on sales or exchanges of long-term capital assets. This rulemaking will seek to provide clarifying information, such as definitions, and additional information on exemptions, deductions, and allocation of gains.

The Department intends to modify WAC 458-29A-200 to clarify the amount of contract rent subject to leasehold excise tax when the rent includes payment for both the leasehold interest as well as a concession or other right.

WAC 458-20-13601 explains the retail sales and use tax exemptions provided by RCW 82.08.02565 and 82.12.02565 for sales to or use by manufacturers or processors for hire of machinery and equipment (M&E) used directly in a manufacturing operation or research and development operation. This rule explains the requirements that must be met to substantiate a claim of exemption.

This rule explains the application of the business and occupation (B&O), retail sales, and use taxes to manufacturers. It identifies the special tax classifications and rates that apply to specific manufacturing activities. The law provides a retail sales and use tax exemption for certain machinery and equipment (M&E) used by manufacturers.

WAC 458-19-085 explains the differences between the types of property tax refunds authorized under chapters 84.68 and 84.69, the procedures related to the refunds, and the effect the refunds have on levy limits and the levy setting process in general.

WAC 458-16-266 provides examples to be used as a general guide for applying a property tax exemption for real property with the purpose of low-income household development.

WAC 458-20-27901 is a new rule that will provide information on sales and use tax exemptions and other tax benefits related to alternative fueled vehicles.

WAC 458-14-127 explains the authority by which boards of equalization may reconvene to hear taxpayer requests or appeals concerning property tax assessments in the current assessment year.

WAC 458-19-550 explains how the state property tax levy rate is determined, how the department adjusts the previous year's apportionment because of changes and errors in taxable values reported to the department after October 1 of the preceding year, and how the limit factor set forth in RCW 84.55.010 is applied to the state levy.

WAC 458-20-233 addresses the tax liability of medical and hospital service bureaus and associations and similar health care organizations.

WAC 458-61A-201 concerns gifts and the application of the real estate excise tax.

WAC 458-20-221 describes the procedure for collection of use tax by retailers and selling agents.

WAC 458-20-193 explains the application of the business and occupation (B&O) and retail sales taxes to interstate sales of tangible personal property.