ITA

You may be able to take an exemption from the Hazardous Substance Tax if you have possession of agricultural crop protection products that are warehoused, but not used or sold, in Washington. (Engrossed Substitute Senate Bill (ESSB) 6057 Part XIX; Chapter 6, Laws of 2015).

Exemption explained

The law provides an exemption from the hazardous substance tax for possession of any substance that is:

Starting July 1, 2016, a new law gives an exception to Washington’s nexus law by stating that attendance and/or participation by one or more representatives of a person at one “trade convention” per calendar year does not establish a physical presence in Washington and does not create nexus for retail sales. (Substitute House Bill 2938, Chapter 137, Laws of 2016).

If you sell goods on behalf of others through a consignment arrangement, you need to know what your tax collection obligations are and how to correctly report consignment sales to the Department of Revenue. A consignment arrangement occurs when the owner of the goods contracts with another party to sell items on their behalf.

There are new requirements for vessel moorage providers in Chapter 195, Laws of 2014, Second Substitute House Bill (SSHB) 2457.

Audience:

Private and public moorage facilities including:

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.