Recently, questions have been raised regarding the tax treatment of removing fruit or nut-bearing trees and/ or stumps from orchards, which is often performed using bulldozers or other equipment not generally associated with farming activities. This Special Notice clarifies the tax treatment for these removal charges when performed for farmers.
In 1996, the Legislature enacted RCW 82.08.02745 and RCW 82.12.02685 that provides a sales and use tax exemption for agricultural employers making purchases of materials and labor for use in constructing, repairing, decorating, or improving new or existing buildings or other structures that will be used to provide housing to the employer’s agricultural employees.
Does your business rent motorized RVs or motor homes to consumers? If so, you should be aware that rentals of these vehicles are subject to either the rental car tax or the 0.3 percent motor vehicle tax. One tax or the other applies to the rental of motorized RVs and motor homes, but not both.
Intended audience: manufacturers who apply to this deferral program.
Starting January 1, 2018, the Washington State Department of Revenue will accept two manufacturers for this deferral program each year instead of five. One manufacturer must be located in Eastern Washington. The other manufacturer must be located in Western Washington.
Manufacturers can get a sales and use tax deferral up to the first $10 million in costs for eligible buildings, machinery and equipment on each investment project.
Intended audience: Stewardship organizations, producers, sellers, and consumers.
No. Producers and retailers of certain mercury-containing lights are required to add an environmental handling charge (EHC) to the selling price. Currently, the fee is 95 cents for each mercury-containing light sold at retail in or into Washington state until December 31, 2028.
The 95 cent EHC goes towards a recycling program.
Intended audience: new car dealers and consumers.
The sales and use tax exemption for clean alternative fuel, electric, and plug-in hybrid vehicles expires June 1, 2018. The last day to use this exemption is May 31, 2018. This means you must take delivery of the vehicle by May 31, 2018 to claim the exemption.
If you’re already using the exemption, you will continue to receive it based on the date range that applies to your situation (see our website link below for date range information).
Intended audience: People who buy, sell, or install solar systems.
If you buy or sell qualified solar energy systems capable of generating 500 kilowatts, or less, the exemptions and refund program you can use ended Sept. 30, 2017.
The exemptions and refund program also expired on your payments for labor and installation of qualified machinery and equipment.
To qualify for the exemption, you must have:
Intended audience: auto parts retailers and nonresident consumers
Starting July 1, 2019, the retail sales tax exemption for qualified nonresident consumers will no longer be available at the point of sale. Qualified nonresident consumers may request a refund from the Department of Revenue for the state portion of the sales tax paid on purchases of parts for:
Intended audience: sellers and installers of solar energy systems, consumers.
A sales and use tax exemption for purchases and installation of solar energy systems that produce at least one kilowatt (kW), but no more than 100 kW AC of electricity is available July 1, 2019, through Dec. 31, 2029.
A new bill (E2SSB 5116) provides a 100% sales and use tax exemption on purchases of machinery and equipment used directly in a solar energy system if:
Intended audience: producers and sellers of renewable natural gas
Effective July 28, 2019, the production and sale of renewable natural gas is no longer taxable under the public utility tax. The production and sale of all renewable natural gas, regardless of use, is subject to business and occupation (B&O) tax.
Sales of renewable natural gas to consumers are subject to retailing B&O tax and retail sales tax.
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