ITA

Tax exemptions are available to qualifying providers of ride sharing for persons with special transportation needs (“paratransit services”). A Transit Authority is a qualifying provider if it provides paratransit services or contracts with a third party that provides paratransit services as defined below.

Under RCW 46.74.010(4), “paratransit services” are arrangements in which people with special transportation needs, and their attendants, are transported:

A kiosk or cart space is an unenclosed area located in the general spaces of a shopping mall. Kiosk or cart owners rent the space from the shopping mall.

A rental of real estate versus a license to use real estate

Since the cart or kiosk operator is not given exclusive dominion and control over the designated space, there is a presumption that the agreement between the mall and the kiosk or cart operator is a license to use real estate rather than an exempt rental of real estate.

The purpose of this Special Notice is to explain the Department’s position on the sales/ use tax exemption for replacement parts for qualifying farm machinery and equipment.

RCW 82.08.855 and RCW 82.12.855 provide sales and use tax exemptions for replacement parts for qualifying farm machinery and equipment (referred to as “equipment” for purposes of this document), and services to install eligible replacement parts.

Policy

The Department has determined that online searchable databases (OSD) are digital automated services (DAS). As such, they do not qualify for the exemption provided for digital goods used solely for a business purpose.

OSDs are subject to retail sales or use tax unless some other exemption applies.

In recognition of prior inconsistent advice, and in order to accommodate taxpayers adjusting to this guidance, the Department will accept prior reporting of exempt or taxable sales. However, as of January 1, 2011, the Department will enforce this policy.

Substitute Senate Bill (SSB) 5566 (chapter 289, Laws of 2009) changes the sourcing rules for direct mail sellers, when the direct mail both originates and is delivered within Washington. The change eliminates the requirement that, in certain circumstances, sales tax must be collected based on the delivery location of direct mail in Washington. In most cases, direct mail sellers have not been required to collect based on the delivery location in Washington. SSB 5566 does not change the sourcing rules for direct mail that is delivered into Washington from outside the state.

Business and Occupation Tax Exemption

Substitute House Bill 1508 provides a business and occupation (B&O) tax exemption for certain sales of natural or manufactured gas. To qualify for the exemption, the total amount of natural or manufactured gas a company sells within the United States cannot exceed 20% of what the seller consumed in the United States, in the same calendar year. SHB 1508 is effective July 22, 2007.

This Special Notice is being distributed to explain the tax application for persons who operate a composting facility.

The business and occupation (B&O) tax applies to every business activity in the state, unless specifically exempt by law. The classifications and tax rates vary depending upon the specific business activity. Composting facilities often receive income from various sources and activities. Generally, the activities of a composting facility include the following.

Motor vehicle manufacturers and dealers are offering a number of incentives and customer satisfaction programs to stimulate new car sales. Some customer satisfaction programs provide customers with an extended period of time within which they can return a purchased vehicle to the dealer if the customer is not satisfied. This Special Notice explains the conditions under which the dealer can claim a refund or credit of taxes previously paid on the sale of a vehicle to a customer.

Beginning July 1, 2008, purchases of trail grooming services by the state of Washington and nonprofit corporations organized under chapter 24.03 RCW are exempt from retail sales tax.

Trail grooming services

“Trail grooming” means the activity of snow compacting, snow redistribution or snow removal on state or privately-owned trails.

Intended audience: Businesses providing services to farmers

Effective July 1, 2022, the business and occupation (B&O) tax and the public utility tax exemptions for certain providers of custom farming and other farming-related services for farmers are restored.

These exemptions were previously available between Aug. 1, 2007, and Dec. 31, 2020.