ITA

Intended audience: Stewardship organizations, producers, sellers, and consumers.

Is this a new program?

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.

Buyer information

To qualify for the exemption, you must have:

Intended audience: auto parts retailers and nonresident consumers

Sales of auto parts to nonresidents

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.

Sellers/installers of renewable energy systems

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.

How do taxes apply?

Sales of renewable natural gas to consumers are subject to retailing B&O tax and retail sales tax.

Intended audience: gas distribution businesses, gas manufacturers, consumers that operate private or common carriers by water or interstate or foreign.

Effective July 1, 2015, Engrossed Substitute Senate Bill (ESSB) 6440 made changes to the taxation of compressed natural gas (CNG) and liquefied natural gas (LNG) when manufactured or sold as transportation fuel.

Intended audience: Independent affordable homeownership facilitators, taxpayers (low-income household) and counties.

Effective Oct. 1, 2019, affordable homeownership facilitators who sell self-help housing to low-income households can qualify for a real estate excise tax (REET) exemption.

Documentation

To claim a REET exemption, sellers must submit both of the following forms to their local county treasurer’s office:

Intended audience: financial institutions.

Effective Jan. 1, 2020, there will be an additional 1.2% tax imposed on the income of specified financial institutions subject to service and other activities business and occupation tax. This tax is in addition to any other taxes imposed on these specified financial institutions.

Intended audience: pipeline businesses and end consumers of natural gas delivered through a pipeline.

Effective Nov. 1, 2019, the department clarifies the use tax requirements of pipeline businesses and end consumers of brokered natural gas (BNG) delivered through a pipeline.

The department has withdrawn Det. 14-0219, 35 Washington Tax Decision (WTD) 372 (2016). The determination incorrectly concluded that in-kind payment of lost and unaccounted for gas should be included in an end consumer’s BNG use tax base.