RCW 82.08.0311
Exemptions
—
Sales of materials and supplies used in packing horticultural products.
The tax levied by RCW 82.08.020
shall not apply to sales of materials and supplies directly used in the packing of fresh perishable horticultural products by any person entitled to a deduction under RCW 82.04.4287
either as an agent or an independent contractor.
[
1988 c 68 s 1
.]
RCW 82.08.0315
Exemptions
—
Rentals or sales related to motion picture or video productions
—
Exceptions
—
Certificate.
(1) As used in this section:
(a) "Production equipment" means the following when used in motion picture or video production or postproduction: Grip and lighting equipment, cameras, camera mounts including tripods, jib arms, steadicams, and other camera mounts, cranes, dollies, generators, helicopter mounts, helicopters rented for motion picture or video production, walkie talkies, vans, trucks, and other vehicles specifically equipped for motion picture or video production or used solely for production activities, wardrobe and makeup trailers, special effects and stunt equipment, video assists, videotape recorders, cables and connectors, telepromoters [teleprompters], sound recording equipment, and editorial equipment.
(b) "Production services" means motion picture and video processing, printing, editing, duplicating, animation, graphics, special effects, negative cutting, conversions to other formats or media, stock footage, sound mixing, rerecording, sound sweetening, sound looping, sound effects, and automatic dialog replacement.
(c) "Motion picture or video production business" means a person engaged in the production of motion pictures and videotapes for exhibition, sale, or for broadcast by a person other than the person producing the motion picture or videotape.
(2) The tax levied by RCW 82.08.020
does not apply to the rental of production equipment, or the sale of production services, to a motion picture or video production business.
(3) The exemption provided for in this section shall not apply to rental of production equipment, or the sale of production services, to a motion picture or video production business that is engaged, to any degree, in the production of erotic material, as defined in RCW 9.68.050
.
(4) In order to claim an exemption under this section, the purchaser must provide the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.
[
1997 c 61 s 1
;
1995 2nd sp.s. c 5 s 1
.]
NOTES:
Effective date
—
1995 2nd sp.s. c 5:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 5 s 3
.]
RCW 82.08.0316
Exemptions
—
Sales of cigarettes by Indian retailers.
The tax levied by RCW 82.08.020
does not apply to sales of cigarettes by an Indian retailer during the effective period of a cigarette tax contract subject to RCW 43.06.455
or a cigarette tax agreement under RCW 43.06.465
or
43.06.466
.
[
2008 c 228 s 3
;
2005 c 11 s 3
;
2001 c 235 s 4
.]
NOTES:
Authorization for agreement
—
Effective date
—
2008 c 228:
See notes following RCW 43.06.466
.
Findings
—
Intent
—
Explanatory statement
—
Effective date
—
2005 c 11:
See notes following RCW 43.06.465
.
Intent
—
Finding
—
2001 c 235:
See RCW 43.06.450
.
RCW 82.08.0317
Exemptions
—
Sales of motor vehicles to tribes or tribal members.
(1)(a) State sales tax is not imposed on the sale of a motor vehicle: (i) If delivered to a tribe or tribal member in their Indian country, or (ii) if the sale is made to a tribe or tribal member in their Indian country. A tribal member is not required to reside in Indian country for the exemption under this section to apply. However, the tribal member must have tax exempt status as a member of the tribe upon whose Indian country delivery is made.
(b) In order to substantiate the tax exempt status of a tribal member, the seller must require presentation of one of the following:
(i) The buyer's tribal membership or citizenship card;
(ii) The buyer's certificate of tribal enrollment; or
(iii) A letter signed by a tribal official confirming the buyer's tribal membership status.
(c)(i) To establish delivery for purposes of this section, the motor vehicle must be delivered to the tribe or tribal member in their Indian country. The seller must document the delivery by completing a declaration, which must be signed by the seller and the buyer. The declaration must be limited to attestation regarding the location of delivery and the enrollment status of the tribal member. The department may develop a form for the declaration.
(ii) No other proof of delivery may be accepted in place of or required in addition to the requirements in (c)(i) of this subsection.
(2) If the sale is made to the tribe or tribal member in their Indian country, the requirements in subsection (1)(c) of this section do not apply.
(3) The seller must retain copies of the documentation required under subsection (1) of this section for the period required in RCW 82.32.070
.
(4) Nothing in this section may be construed to affect, amend, or modify federal law or Washington state tax law as applied to a tribal member or tribe.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Indian country" has the same meaning as provided in 18 U.S.C. Sec. 1151.
(b) "Tribe" means a federally recognized tribe.
(c) "Tribal member" means an enrolled member of a federally recognized tribe.
[
2016 c 232 s 1
.]
RCW 82.08.0318
Exemptions
—
Sales of vapor products by Indian retailers.
(1) The tax levied by RCW 82.08.020
does not apply to sales of vapor products by an Indian retailer during the effective period of a vapor product tax contract subject to RCW 43.06.510
or a vapor product tax agreement under RCW 43.06.515
.
(2) The definitions in RCW 43.06.505
apply to this section.
[
2019 c 445 s 305
.]
NOTES:
Automatic expiration date and tax preference performance statement exemption
—
2019 c 445:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2019 c 445 s 405
.]
Conflict with federal requirements
—
Effective date
—
2019 c 445:
See RCW 82.25.900
and
82.25.901
.
RCW 82.08.032
Exemption
—
Sales, rental, or lease of used park model trailers.
The tax imposed by RCW 82.08.020
shall not apply to:
(1) Sales of used park model trailers, as defined in RCW 82.45.032
;
(2) The renting or leasing of used park model trailers, as defined in RCW 82.45.032, when the rental agreement or lease exceeds thirty days in duration.
[
2001 c 282 s 3
.]
NOTES:
Intent
—
2001 c 282:
"It is the intent of the legislature to promote fairness in the application of tax. Therefore, for the purposes of excise tax, park model trailers will be taxed in the same manner as mobile homes." [
2001 c 282 s 1
.]
Effective date
—
2001 c 282:
"This act takes effect August 1, 2001." [
2001 c 282 s 5
.]
RCW 82.08.033
Exemptions
—
Sales of used mobile homes or rental or lease of mobile homes.
The tax imposed by RCW 82.08.020
shall not apply to:
(1) Sales of used mobile homes as defined in RCW 82.45.032
.
(2) The renting or leasing of mobile homes if the rental agreement or lease exceeds thirty days in duration and if the rental or lease of such mobile home is not conducted jointly with the provision of short-term lodging for transients.
[
1986 c 211 s 2
;
1979 ex.s. c 266 s 3
.]
RCW 82.08.034
Exemptions
—
Sales of used floating homes or rental or lease of used floating homes.
The tax imposed by RCW 82.08.020
shall not apply to:
(1) Sales of used floating homes, as defined in RCW 82.45.032
;
(2) The renting or leasing of used floating homes, as defined in RCW 82.45.032, when the rental agreement or lease exceeds thirty days in duration.
[
1984 c 192 s 3
.]
RCW 82.08.035
Exemption for pollution control facilities.
See chapter
82.34
RCW.
RCW 82.08.036
Exemptions
—
Vehicle battery core deposits or credits
—
Replacement vehicle tire fees
—
"Core deposits or credits" defined.
The tax levied by RCW 82.08.020
shall not apply to consideration: (1) Received as core deposits or credits in a retail or wholesale sale; or (2) received or collected upon the sale of a new replacement vehicle tire as a fee imposed under RCW 70A.205.405
. For purposes of this section, the term "core deposits or credits" means the amount representing the value of returnable products such as batteries, starters, brakes, and other products with returnable value added for the purpose of recycling or remanufacturing.
[
2020 c 20 s 1475
;
1989 c 431 s 45
.]
RCW 82.08.037
Credits and refunds for bad debts.
(1) A seller is entitled to a credit or refund for sales taxes previously paid on bad debts, as that term is used in 26 U.S.C. Sec. 166, as amended or renumbered as of January 1, 2003.
(2) For purposes of this section, "bad debts" does not include:
(a) Amounts due on property that remains in the possession of the seller until the full purchase price is paid;
(b) Expenses incurred in attempting to collect debt;
(c) Debts sold or assigned by the seller to third parties, where the third party is without recourse against the seller; and
(d) Repossessed property.
(3) If a credit or refund of sales tax is taken for a bad debt and the debt is subsequently collected in whole or in part, the tax on the amount collected must be paid and reported on the return filed for the period in which the collection is made.
(4) Payments on a previously claimed bad debt are applied first proportionally to the taxable price of the property or service and the sales or use tax thereon, and secondly to interest, service charges, and any other charges.
(5) If the seller uses a certified service provider as defined in RCW 82.32.020
to administer its sales tax responsibilities, the certified service provider may claim, on behalf of the seller, the credit or refund allowed by this section. The certified service provider must credit or refund the full amount received to the seller.
(6) The department must allow an allocation of bad debts among member states to the streamlined sales tax agreement, as defined in RCW 82.58.010
(1), if the books and records of the person claiming bad debts support the allocation.
(7) A person's right to claim a credit or refund under this section is not assignable. No person other than the original seller in the transaction that generated the bad debt or, as provided in subsection (5) of this section, a certified service provider, is entitled to claim a credit or refund under this section. If the original seller in the transaction that generated the bad debt has sold or assigned the debt instrument to a third party with recourse, the original seller may claim a credit or refund under this section only after the debt instrument is reassigned by the third party to the original seller.
[
2010 1st sp.s. c 23 s 1502
;
2007 c 6 s 102
;
2004 c 153 s 302
;
2003 c 168 s 212
;
1982 1st ex.s. c 35 s 35
.]
NOTES:
Intent
—
2010 1st sp.s. c 23 ss 1502 and 1503:
"The legislature intends with sections 1502 and 1503 of this act to supersede the holding of the supreme court of the state of Washington in
Puget Sound National Bank v. Department of Revenue
, 123 Wn.2d 284 (1994)." [
2010 1st sp.s. c 23 s 1501
.]
Application
—
2010 1st sp.s. c 23 ss 1502 and 1503:
"Sections 1502 and 1503 of this act apply to claims for credit or refund filed with the department of revenue after June 30, 2010." [
2010 1st sp.s. c 23 s 1719
.]
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.32.655
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Bad debts
—
Intent
—
2004 c 153 ss 302-305:
"For the purposes of sections 302 through 305 of this act, the legislature does not intend by any provision of this act relating to bad debts, and did not intend by any provision of chapter 168, Laws of 2003 relating to bad debts, to affect the holding of the supreme court of the state of Washington in
Puget Sound National Bank v. the Department of Revenue, 123 Wn. 2nd 284 (1994)." [
2004 c 153 s 301
.]
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
RCW 82.08.040
Consignee, factor, bailee, auctioneer deemed seller.
(1) Every consignee, bailee, factor, or auctioneer selling or calling for bids on personal property belonging to another, is deemed the seller of such personal property within the meaning of this chapter. All sales made by such persons are subject to the provisions of this chapter even though the sale would have been exempt from the tax imposed in this chapter had it been made directly by the owner of the property sold.
(2)(a) Except as provided in (b) of this subsection (2), every consignee, bailee, factor, or auctioneer must collect and remit the amount of tax due under this chapter with respect to sales made or called by that seller.
(b) If the owner of the property sold is engaged in the business of making sales at retail in this state, the tax imposed under this chapter may be remitted by such owner under such rules as the department may adopt.
[
2009 c 535 s 1105
;
1975 1st ex.s. c 278 s 46
;
1961 c 15 s 82.08.040
. Prior:
1939 c 225 s 8
;
1935 c 180 s 18
; RRS s 8370-18.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.08.052
Remote seller
—
Nexus.
(1)(a) From October 1, 2018, through December 31, 2019, a seller is obligated to collect and remit to the department the taxes imposed under this chapter, except as otherwise provided in RCW 82.08.0531
(2) and this subsection, if the seller, in the current or immediately preceding calendar year, had:
(i) More than one hundred thousand dollars of cumulative gross receipts from this state;
(ii) Subject to the limitation in (c)(ii) of this subsection (1), two hundred or more separate transactions for the delivery of products into this state; or
(iii) Subject to the limitation in RCW 82.32.531, physical presence in this state under RCW 82.04.067
.
(b) Cumulative gross receipts counting toward the threshold in (a)(i) of this subsection include a person's gross income of the business from all retail sales made by the seller and sourced to this state under RCW 82.32.730
.
(c)(i) Transactions counting toward the threshold in (a)(ii) of this subsection include all retail sales transactions made by the seller and sourced to this state under RCW 82.32.730
.
(ii) From March 14, 2019, a seller is relieved of the obligation to collect the taxes imposed under this chapter and remit those taxes to the department if that obligation arose solely based on the threshold in (a)(ii) of this subsection.
(iii) For purposes of the threshold in (a)(ii) of this subsection "transaction" means an agreement to furnish a product or products for consideration, and includes a sale as defined in RCW 82.04.040
.
(iv) The term "transaction" does not include an agreement if the agreement is canceled or rescinded before any of the products are delivered to the buyer or other recipient designated by the buyer, the seller retains no part of the consideration from the buyer, and the seller did not collect from the buyer any tax imposed or authorized under this title.
(v) With regard to agreements requiring multiple payments by the consumer, such as a lease, rental, or installment sale, such agreements count as a single transaction for purposes of this subsection, regardless of the number of payments required under the agreement. However, any modification of such an agreement that provides for additional payments is counted as an additional transaction.
(d)(i) Subject to (b) and (c) of this subsection (1), for a marketplace facilitator, receipts and transactions counting toward the thresholds in (a)(i) and (ii) of this subsection include, in addition to the cumulative gross receipts and separate transactions of its own sales, the cumulative gross receipts and separate transactions from sales by all marketplace sellers through the marketplace facilitator's marketplace, including marketplace sellers that are not obligated to collect the taxes under this chapter pursuant to the provisions of this section.
(ii) For a purchase made by one consumer through a marketplace facilitator, where the purchase involves sales by multiple marketplace sellers, the purchase is deemed to be one transaction for the marketplace facilitator and one transaction apiece for each marketplace seller.
(2) Beginning January 1, 2020, a seller with a substantial nexus with this state under RCW 82.04.067
is obligated to collect and remit to the department the taxes imposed under this chapter.
(3)(a) For purposes of this section, the following definitions apply:
(i) "Apportionable income" has the same meaning as provided in RCW 82.04.460
.
(ii) "Gross income of the business" has the same meaning as provided in RCW 82.04.080
.
(iii) "Product" has the same meaning as provided in RCW 82.32.023
.
(b) The definitions in RCW 82.13.010
apply to this section through June 30, 2019.
(4)(a) A seller whose obligation to collect the taxes imposed under this chapter arises after October 1, 2018, must begin collecting taxes imposed under this chapter as follows:
(i) For a remote seller, on the first day of the first calendar month that is at least thirty days from the date that the remote seller becomes required under subsection (1) or (2) of this section to collect the taxes imposed under this chapter.
(ii) For a seller that has a physical presence in this state, immediately upon establishing a tax collection obligation under subsection (1)(a)(iii) or (2) of this section.
(b) Nothing in this subsection (4) affects the ongoing tax collection obligation of any seller that was required, or elected, to collect the taxes imposed under this chapter on or before October 1, 2018.
(5) This section is subject to RCW 82.32.762
.
[
2019 c 8 s 106
;
2015 3rd sp.s. c 5 s 202
.]
NOTES:
Effective date
—
2019 c 8 ss 101, 104, 106, 201, 402-405, and 501:
See note following RCW 82.02.250
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Application
—
2017 c 323 s 305:
"Section 305 of this act applies retroactively for the period January 1, 2015, through December 31, 2015." [
2017 c 323 s 306
.]
Construction
—
2017 c 323:
"Nothing in section 204, chapter 5, Laws of 2015 3rd sp. sess. may be construed as affecting the taxable status in calendar year 2015 of any person with a substantial nexus with this state under RCW 82.04.067
any time on or after January 1, 2015, and before September 1, 2015, with respect to business and occupation taxes on apportionable activities as defined in RCW 82.04.460
." [
2017 c 323 s 305
.]
Effective dates
—
2015 3rd sp.s. c 5:
"(1) Except as provided otherwise in this section, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect August 1, 2015.
(2) Part II of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect September 1, 2015." [
2015 3rd sp.s. c 5 s 501
.]
Finding
—
Intent
—
2015 3rd sp.s. c 5:
"(1) The commerce clause of the United States Constitution as currently interpreted by the United States supreme court prohibits states from imposing sales or use tax collection obligations on out-of-state businesses unless the business has a substantial nexus with the taxing state.
(2) The legislature recognizes that under the United States supreme court's decision in
Quill Corp. v. North Dakota
, 504 U.S. 298 (1992), a substantial nexus for sales and use tax collection purposes requires that the taxpayer have a physical presence in the taxing state.
(3) The legislature further recognizes that the requisite physical presence can be established directly through a taxpayer's own activities in the taxing state, or indirectly, through independent contractors, agents, or other representatives who act on behalf of the taxpayer in the taxing state.
(4) However, the legislature finds that because the United States supreme court has not clearly defined the circumstances under which a physical presence is sufficient to establish a substantial nexus for tax purposes, frequent conflicts have arisen throughout the country among state taxing authorities, taxpayers, tax practitioners, and courts.
(5) Therefore, the legislature intends to provide more clarity for out-of-state sellers that compensate Washington residents for referring customers to the out-of-state seller by providing clear statutory guidelines for determining when these out-of-state sellers are required to collect Washington's retail sales tax." [
2015 3rd sp.s. c 5 s 201
.]
RCW 82.08.0531
Marketplace facilitators
—
When deemed seller agents
—
Recordkeeping
—
Liability.
(1) For purposes of this chapter and chapters
82.04
and
82.12
RCW, a marketplace facilitator is deemed to be an agent of any marketplace seller making retail sales through the marketplace facilitator's marketplace.
(2) Beginning October 1, 2018, marketplace facilitators subject to a tax collection obligation under RCW 82.08.052
(1) or (2) must collect and remit to the department retail sales tax on all taxable retail sales made or facilitated by the marketplace facilitator, whether in its own right or as an agent of a marketplace seller, regardless of whether the marketplace seller is subject to a tax collection obligation under RCW 82.08.052
(1) or (2). Beginning January 1, 2020, the collection obligation of a marketplace facilitator under this chapter also applies to any other taxes and fees, as defined under RCW 82.02.260, that are imposed on a retail sale made or facilitated by the marketplace facilitator, whether in its own right or as an agent of a marketplace seller, regardless of whether the marketplace seller has a tax collection obligation under RCW 82.08.052
(1) or (2).
(3) In addition to other applicable recordkeeping requirements, the department may require a marketplace facilitator to provide or make available to the department any information the department determines is reasonably necessary to enforce the provisions of this chapter and *chapter
82.13
RCW. Such information may include documentation of sales made by marketplace sellers through the marketplace facilitator's marketplace. The department may prescribe by rule the form and manner for providing this information.
(4)(a) Beginning July 1, 2019, to ensure that marketplace sellers have the necessary information to timely and accurately file their excise tax returns with the department pursuant to RCW 82.32.045, a marketplace facilitator must, at a minimum, provide each of its marketplace sellers with access, through a written report or other means, to gross sales information for all Washington sales made as an agent of the marketplace seller under this section during the immediately preceding month. Marketplace facilitators must provide such access within fifteen calendar days following the end of each month.
(b) If a marketplace seller does not receive the gross sales information for all Washington sales through a marketplace facilitator, as required under (a) of this subsection (4), the marketplace seller may determine its business and occupation tax liability under chapter
82.04
RCW based on a reasonable method of estimating Washington sales as may be required or approved by the department.
(c) For purposes of this subsection, "Washington sales" means any sale sourced to this state under RCW 82.32.730, regardless of whether the sale is a retail sale.
(5) If a marketplace facilitator has fully complied with the requirements of subsection (4)(a) of this section, the marketplace facilitator is relieved of liability under this chapter and chapter
82.12
RCW for failure to collect the correct amount of tax to the extent that the marketplace facilitator can show to the department's satisfaction that the error was due to incorrect information given to the marketplace facilitator by the marketplace seller, unless the marketplace facilitator and marketplace seller are affiliated persons. Where the marketplace facilitator is relieved of liability under this subsection (5), the marketplace seller is solely liable for the amount of uncollected tax due.
(6)(a) Subject to the limits in (b) and (c) of this subsection (6), a marketplace facilitator that has fully complied with the requirements of subsection (4)(a) of this section is relieved of liability under this chapter and chapter
82.12
RCW for the failure to collect tax on taxable retail sales to the extent that the marketplace facilitator can show to the department's satisfaction that:
(i) The taxable retail sale was made through the marketplace facilitator's marketplace;
(ii) The taxable retail sale was made solely as the agent of a marketplace seller, and the marketplace facilitator and marketplace seller are not affiliated persons; and
(iii) The failure to collect sales tax was not due to an error in sourcing the sale under RCW 82.32.730
.
(b) Liability relief for a marketplace facilitator under (a) of this subsection (6) for a calendar year is limited as follows:
(i) For calendar year 2018, the liability relief may not exceed ten percent of the total tax due under this chapter and chapter
82.12
RCW on taxable retail sales facilitated by the marketplace facilitator as agent of a marketplace seller and sourced to this state under RCW 82.32.730
during the same calendar year.
(ii) For calendar year 2019, the liability relief may not exceed five percent of the total tax due under this chapter and chapter
82.12
RCW on taxable retail sales by the marketplace facilitator as agent of a marketplace seller and sourced to this state under RCW 82.32.730
during the same calendar year.
(iii) The provisions of this subsection (6) do not apply to retail sales made after December 31, 2019.
(c) For purposes of this subsection (6), a retail sale is deemed to be facilitated by a marketplace facilitator when the marketplace facilitator either:
(i) Accepts the order for the product;
(ii) Communicates to the marketplace seller the buyer's offer to purchase the product;
(iii) Accepts the buyer's payment for the product; or
(iv) Delivers or arranges for delivery of the product.
(d) Where the marketplace facilitator is relieved of liability under this subsection (6), the marketplace seller is also relieved of liability for the amount of uncollected tax due, subject to the limitations in subsection (7) of this section.
(e) The department may by rule determine the manner in which a taxpayer may claim the liability relief provided under this subsection.
(7) Except as otherwise provided in this section, a marketplace seller obligated to collect the taxes imposed under this chapter and chapter
82.12
RCW is not required to collect such taxes on all taxable retail sales through a marketplace operated by a marketplace facilitator if the marketplace seller has obtained documentation from the marketplace facilitator indicating that the marketplace facilitator is registered with the department and will collect all applicable taxes due under this chapter and chapter
82.12
RCW on all taxable retail sales made on behalf of the marketplace seller through the marketplace operated by the marketplace facilitator. The documentation required by this subsection (7) must be provided in a form and manner prescribed by or acceptable to the department. This subsection (7) does not relieve a marketplace seller from liability for uncollected taxes due under this chapter or chapter
82.12
RCW resulting from a marketplace facilitator's failure to collect the proper amount of tax due when the error was due to incorrect information given to the marketplace facilitator by the marketplace seller.
(8) No class action may be brought against a marketplace facilitator in any court of this state on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a purchaser's right to seek a refund from the department as provided under chapter
82.32
RCW.
(9) Nothing in this section affects the obligation of any purchaser to remit sales or use tax and any other applicable taxes and fees, as to any applicable taxable transaction in which the seller or the seller's agent does not collect and remit sales tax.
[
2021 c 145 s 10
;
2019 c 8 s 201
;
2017 3rd sp.s. c 28 s 203
.]
NOTES:
*Reviser's note:
Chapter
82.13
RCW was repealed by
2019 c 8 s 301
.
Effective date
—
2019 c 8 ss 101, 104, 106, 201, 402-405, and 501:
See note following RCW 82.02.250
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Findings
—
Intent
—
2017 3rd sp.s. c 28 ss 201-214:
"(1) The legislature finds that states fail to collect more than twenty-three billion dollars annually in sales taxes from remote sales over the internet and through catalogs. The legislature further finds that Washington and its local governments will lose out on an estimated three hundred fifty-three million dollars in sales and use taxes in fiscal year 2018 from remote sales, reducing funds that would otherwise be available for the public education system, health care services, infrastructure, and other vital public services.
(2) The legislature finds that Colorado adopted a law requiring out-of-state retailers that do not collect Colorado's sales tax to report tax-related information to their Colorado customers and the Colorado department of revenue. The legislature further finds that in 2016 the United States court of appeals for the tenth circuit upheld that law.
(3) The legislature intends by this act to address the significant harm and unfairness brought about by the physical presence nexus rule. To achieve this objective, this act adopts a new program. Under the new program, remote sellers meeting a specified threshold of gross receipts from retail sales into this state would have the option to either collect retail sales or use tax on taxable retail sales into this state or comply with certain sales and use tax notice and reporting provisions. This option is also available to other persons such as marketplace facilitators for facilitated sales on behalf of third-party remote sellers. The sales and use tax notice and reporting provisions in this act are similar to the multistate tax commission's draft model sales and use tax notice and reporting statute and Colorado's sales and use tax notice and reporting law." [
2017 3rd sp.s. c 28 s 201
.]
Existing rights and liability
—
2017 3rd sp.s. c 28:
"This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections." [
2017 3rd sp.s. c 28 s 602
.]
Severability
—
2017 3rd sp.s. c 28:
"(1) If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
(2) If the department of revenue is prevented from enforcing chapter
82.08
or
82.12
RCW against persons without a physical presence in this state because any provision of this act or its application to any person or circumstance is held invalid, the department of revenue must impose such provisions to the fullest extent allowed under the Constitution and laws of the United States." [
2017 3rd sp.s. c 28 s 603
.]
Application
—
2017 3rd sp.s. c 28:
"The tax collection, reporting, and payment obligations imposed by this act apply prospectively only." [
2017 3rd sp.s. c 28 s 604
.]
Effective dates
—
2018 c 92; 2017 3rd sp.s. c 28:
"(1) Except as otherwise provided in this section, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.
(2) Sections 101 through 106 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect August 1, 2017.
(3) Section 213 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 23, 2017.
(4) Part III of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2017.
(5) Sections 107 through 109 and 502 of this act take effect January 1, 2018." [
2018 c 92 s 2
;
2017 3rd sp.s. c 28 s 605
.]
RCW 82.08.054
Computation of tax due.
Sellers shall compute the tax due under this chapter and chapters
82.12
and
82.14
RCW by carrying the computation to the third decimal place and rounding to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four. Sellers may elect to compute the tax due on a transaction on an item or an invoice basis. This rounding rule shall be applied to the aggregated state and local taxes.
[
2003 c 168 s 210
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.08.055
Advertisement of price.
A seller may advertise the price as including the tax or that the seller is paying the tax, subject to the following conditions:
(1) Unless the advertised price is one in a listed series, the words "tax included" are stated immediately following the advertised price and in print size at least half as large as the advertised price;
(2) If the advertised prices are listed in a series, the words "tax included in all prices" are placed conspicuously at the head of the list and in the same print size as the advertised prices;
(3) If a price is advertised as "tax included," the price listed on any price tag shall be shown in the same manner; and
(4) All advertised prices and the words "tax included" are stated in the same medium, be it oral or visual, and if oral, in substantially the same inflection and volume.
[
1985 c 38 s 2
.]
RCW 82.08.060
Collection of tax
—
Methods and schedules.
The department of revenue shall have power to adopt rules and regulations prescribing methods and schedules for the collection of the tax required to be collected by the seller from the buyer under this chapter. The methods and schedules prescribed shall be adopted so as to eliminate the collection of fractions of one cent and so as to provide that the aggregate collections of all taxes by the seller shall, insofar as practicable, equal the amount of tax imposed by this chapter. Such schedules may provide that no tax need be collected from the buyer upon sales below a stated sum and may be amended from time to time to accomplish the purposes set forth herein.
[
1975 1st ex.s. c 278 s 47
;
1961 c 15 s 82.08.060
. Prior:
1951 c 44 s 2
;
1941 c 76 s 4
;
1935 c 180 s 22
; Rem. Supp. 1941 s 8370-22.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.08.064
Tax rate changes.
(1) A sales and use tax rate change under this chapter or chapter
82.12
RCW shall be imposed (a) no sooner than seventy-five days after its enactment into law and (b) only on the first day of January, April, July, or October.
(2) Subsection (1) of this section does not apply to the tax rate change in section 301, chapter 361, Laws of 2003.
(3)(a) A sales and use tax rate increase under this chapter or chapter
82.12
RCW imposed on services applies to the first billing period starting on or after the effective date of the increase.
(b) A sales and use tax rate decrease under this chapter or chapter
82.12
RCW imposed on services applies to bills rendered on or after the effective date of the decrease.
(c) For the purposes of this subsection (3), "services" means retail services such as installing and constructing and retail services such as telecommunications, but does not include services such as tattooing.
[
2003 c 361 s 304
;
2003 c 168 s 205
;
2000 c 104 s 3
.]
NOTES:
Reviser's note:
This section was amended by 2003 c 168 s 205 and by 2003 c 361 s 304, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Application
—
Local service ending after August 1, 2013
—
2013 2nd sp.s. c 8:
See note following RCW 82.08.0289
.
Findings
—
2003 c 361:
See note following RCW 82.38.030
.
Effective dates
—
2003 c 361:
See note following RCW 82.08.020
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Findings
—
Intent
—
Effective date
—
2000 c 104:
See notes following RCW 82.14.055
.
RCW 82.08.066
Deemed location for mobile telecommunications services.
For the purposes of this chapter, mobile telecommunications services are deemed to have occurred at the customer's place of primary use, regardless of where the mobile telecommunications services originate, terminate, or pass through, consistent with the mobile telecommunications sourcing act, P.L. 106-252, 4 U.S.C. Secs. 116 through 126. The definitions in RCW 82.04.065
apply to this section.
[
2002 c 67 s 5
.]
NOTES:
Finding
—
Effective date
—
2002 c 67:
See notes following RCW 82.04.530
.
RCW 82.08.080
Vending machine and other sales.
(1) The department of revenue may authorize a seller to pay the tax levied under this chapter upon sales made under conditions of business such as to render impracticable the collection of the tax as a separate item and waive collection of the tax from the customer. Where sales are made by a vending machine that results in delivery of the merchandise in single purchases of smaller value than the minimum sale upon which a one cent tax may be collected from the purchaser, according to the schedule provided by the department under authority of RCW 82.08.060, and where the design of the sales device is such that multiple sales of items are not possible or cannot be detected so as practically to assess a tax, in such a case the selling price for the purposes of the tax imposed under RCW 82.08.020
shall be sixty percent of the gross receipts of the vending machine through which such sales are made.
(2) No such authority shall be granted except upon application to the department and unless the department, after hearing, finds that the conditions of the applicant's business are such as to render impracticable the collection of the tax in the manner otherwise provided. The department, by rule, may provide that the applicant, under this section, furnish a proper bond sufficient to secure the payment of the tax.
(3) "Vending machine" means a machine or other mechanical device that accepts payment and:
(a) Dispenses tangible personal property;
(b) Provides facilities for installing, repairing, cleaning, altering, imprinting, or improving tangible personal property; or
(c) Provides a service to the buyer.
[
2004 c 153 s 409
;
1986 c 36 s 2
;
1975 1st ex.s. c 278 s 48
;
1963 c 244 s 2
;
1961 c 15 s 82.08.080
. Prior:
1937 c 227 s 8
;
1935 c 180 s 24
; RRS s 8370-24.]
NOTES:
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.08.090
Installment sales and leases.
In the case of installment sales and leases of personal property, the department of revenue, by regulation, may provide for the collection of taxes upon the installments of the purchase price, or amount of rental, as of the time the same fall due.
[
1975 1st ex.s. c 278 s 49
;
1961 c 15 s 82.08.090
. Prior:
1959 ex.s. c 3 s 8
;
1959 c 197 s 4
; prior: 1941 c 178 s 9, part; 1939 c 225 s 12, part; 1935 c 180 s 25, part; Rem. Supp. 1941 s 8370-25, part.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.08.100
Cash receipts taxpayers
—
Bad debts.
The department of revenue, by general regulation, shall provide that a taxpayer whose regular books of account are kept on a cash receipts basis may file returns based upon his or her cash receipts for each reporting period and pay the tax herein provided upon such basis in lieu of reporting and paying the tax on all sales made during such period. A taxpayer filing returns on a cash receipts basis is not required to pay such tax on debt subject to credit or refund under RCW 82.08.037
.
[
2013 c 23 s 318
;
2004 c 153 s 303
;
1982 1st ex.s. c 35 s 37
;
1975 1st ex.s. c 278 s 50
;
1961 c 15 s 82.08.100
. Prior:
1959 ex.s. c 3 s 9
;
1959 c 197 s 5
; prior: 1941 c 178 s 9, part; 1939 c 225 s 12, part; 1935 c 180 s 25, part; Rem. Supp. 1941 s 8370-25, part.]
NOTES:
Bad debts
—
Intent
—
2004 c 153:
See note following RCW 82.08.037
.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.08.110
Sales from vehicles.
In the case of a person who has no fixed place of business and sells from one or more vehicles, each such vehicle shall constitute a "place of business" within the meaning of chapter
82.32
RCW.
[
1961 c 15 s 82.08.110
. Prior:
1935 c 180 s 26
; RRS s 8370-26.]
RCW 82.08.120
Refunding or rebating of tax by seller prohibited
—
Penalty.
Whoever, excepting as expressly authorized by this chapter, refunds, remits, or rebates to a buyer, either directly or indirectly and by whatever means, all or any part of the tax levied by this chapter shall be guilty of a misdemeanor. The violation of this section by any person holding a license granted by the state or any political subdivision thereof shall be sufficient grounds for the cancellation of the license of such person upon written notification by the department of revenue to the proper officer of the department granting the license that such person has violated the provisions of this section. Before any license shall be canceled hereunder, the licensee shall be entitled to a hearing before the department granting the license under such regulations as the department may prescribe.
[
1985 c 38 s 4
;
1975 1st ex.s. c 278 s 51
;
1961 c 15 s 82.08.120
. Prior:
1939 c 225 s 13
;
1935 c 180 s 27
; RRS s 8370-27.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.08.130
Reseller's permit
—
Purchase and resale
—
Rules.
(1) If a buyer normally is engaged in both consuming and reselling certain types of personal property, the retail sale of which is taxable under this chapter, and the buyer is not able to determine at the time of purchase whether the particular property acquired will be consumed or resold, the buyer may use a reseller permit or other documentation authorized under RCW 82.04.470
for the entire purchase if the buyer principally resells the property according to the general nature of the buyer's business. The buyer must account for the value of any articles purchased with a reseller permit or other documentation authorized under RCW 82.04.470
that is used by the buyer and remit the deferred sales tax on the property to the department.
(2) A buyer who pays a tax on all purchases and subsequently resells property or services at retail, without intervening use by the buyer, must collect the tax from the purchaser as otherwise provided by law and is entitled to a deduction on the buyer's tax return equal to the cost to the buyer of the property or service resold upon which retail sales tax has been paid. The deduction is allowed only if the taxpayer keeps and preserves records that include the names of the persons from whom the property or services were purchased, the date of the purchase, the type of property or services, the amount of the purchase, and the tax that was paid.
(3) The department must provide by rule for the refund or credit of retail sales tax paid by a buyer for purchases that are later resold without intervening use by the buyer or for purchases that would otherwise have met the definition of wholesale sale if the buyer had provided the seller with a reseller permit or other documentation as authorized in RCW 82.04.470
.
(4) Nothing in this section may be construed to authorize a deduction or credit in respect to the purchase of services if the services are not of a type that can be sold at wholesale under the definition of wholesale sale in RCW 82.04.060
.
[
2010 c 112 s 9
. Prior:
2009 c 563 s 207
;
2009 c 535 s 1106
;
1993 sp.s. c 25 s 702
.]
NOTES:
Retroactive application
—
2010 c 112:
See note following RCW 82.32.780
.
Finding
—
Intent
—
Construction
—
Effective date
—
Reports and recommendations
—
2009 c 563:
See notes following RCW 82.32.780
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Reseller's permit: RCW 82.04.470
and
82.32.291
.
RCW 82.08.140
Administration.
The provisions of RCW 82.04.470
and all of the provisions of chapter
82.32
RCW shall have full force and application with respect to taxes imposed under the provisions of this chapter.
[
1961 c 15 s 82.08.140
. Prior:
1935 c 180 s 30
; RRS s 8370-30.]
RCW 82.08.145
Delivery charges.
When computing the tax levied by RCW 82.08.020, if a shipment consists of taxable tangible personal property and nontaxable tangible personal property, and delivery charges are included in the sales price, the seller must collect and remit tax on the percentage of delivery charges allocated to the taxable tangible personal property, but does not have to collect and remit tax on the percentage allocated to exempt tangible personal property. The seller may use either of the following percentages to determine the taxable portion of the delivery charges:
(1) A percentage based on the total sales price of the taxable tangible personal property compared to the total sales price of all tangible personal property in the shipment; or
(2) A percentage based on the total weight of the taxable tangible personal property compared to the total weight of all tangible personal property in the shipment.
[
2007 c 6 s 801
.]
NOTES:
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
RCW 82.08.150
Tax on certain sales of intoxicating liquors
—
Additional taxes for specific purposes
—
Collection.
(1) There is levied and collected a tax upon each retail sale of spirits in the original package at the rate of fifteen percent of the selling price.
(2) There is levied and collected a tax upon each sale of spirits in the original package at the rate of ten percent of the selling price on sales by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title
66
RCW to restaurant spirits retailers.
(3) There is levied and collected an additional tax upon each sale of spirits in the original package by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title
66
RCW to a restaurant spirits retailer and upon each retail sale of spirits in the original package by a licensee of the board at the rate of one dollar and seventy-two cents per liter.
(4) An additional tax is imposed equal to fourteen percent multiplied by the taxes payable under subsections (1), (2), and (3) of this section.
(5) An additional tax is imposed upon each sale of spirits in the original package by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title
66
RCW to a restaurant spirits retailer and upon each retail sale of spirits in the original package by a licensee of the board at the rate of seven cents per liter. All revenues collected during any month from this additional tax must be deposited in the state general fund by the twenty-fifth day of the following month.
(6)(a) An additional tax is imposed upon retail sale of spirits in the original package at the rate of three and four-tenths percent of the selling price.
(b) An additional tax is imposed upon retail sale of spirits in the original package to a restaurant spirits retailer at the rate of two and three-tenths percent of the selling price.
(c) An additional tax is imposed upon each sale of spirits in the original package by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title
66
RCW to a restaurant spirits retailer and upon each retail sale of spirits in the original package by a licensee of the board at the rate of forty-one cents per liter.
(d) All revenues collected during any month from additional taxes under this subsection must be deposited in the state general fund by the twenty-fifth day of the following month.
(7)(a) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of one dollar and thirty-three cents per liter.
(b) All revenues collected during any month from additional taxes under this subsection must be deposited by the twenty-fifth day of the following month into the general fund.
(8) The tax imposed in RCW 82.08.020
does not apply to sales of spirits in the original package.
(9) The taxes imposed in this section must be paid by the buyer to the seller, and each seller must collect from the buyer the full amount of the tax payable in respect to each taxable sale under this section. The taxes required by this section to be collected by the seller must be stated separately from the selling price, and for purposes of determining the tax due from the buyer to the seller, it is conclusively presumed that the selling price quoted in any price list does not include the taxes imposed by this section. Sellers must report and return all taxes imposed in this section in accordance with rules adopted by the department.
(10)(a) Except as otherwise provided in this subsection, the terms, "spirits" and "package" have the same meaning as provided in chapter
66.04
RCW.
(b) Until July 1, 2023, for the purposes of the taxes imposed under this section, the term "spirits" does not include mini-bottles of spirits sold by a person who possesses a valid endorsement under section 2(6), chapter 48, Laws of 2021 and is licensed as a spirits, beer, and wine restaurant under RCW 66.24.400
.
(c) For the purposes of this subsection, "mini-bottles of spirits" means an original factory-sealed container holding not more than 50 milliliters of spirits.
[
2021 c 48 s 6
;
2012 c 2 s 106
(Initiative Measure No. 1183, approved November 8, 2011);
2009 c 479 s 65
;
2005 c 514 s 201
;
2003 c 167 s 11
;
1998 c 126 s 16
;
1997 c 321 s 55
;
1994 sp.s. c 7 s 903
(Referendum Bill No. 43, approved November 8, 1994);
1993 c 492 s 310
;
1989 c 271 s 503
;
1983 2nd ex.s. c 3 s 12
;
1982 1st ex.s. c 35 s 3
;
1981 1st ex.s. c 5 s 25
;
1973 1st ex.s. c 204 s 1
;
1971 ex.s. c 299 s 9
;
1969 ex.s. c 21 s 11
;
1965 ex.s. c 173 s 16
;
1965 c 42 s 1
;
1961 ex.s. c 24 s 2
;
1961 c 15 s 82.08.150
. Prior:
1959 ex.s. c 5 s 9
;
1957 c 279 s 4
;
1955 c 396 s 1
;
1953 c 91 s 5
;
1951 2nd ex.s. c 28 s 5
.]
NOTES:
Tax preference performance statement and expiration exemption
—
2021 c 48:
"This act is exempt from the provisions of RCW 82.32.808
and
82.32.805
." [
2021 c 48 s 7
.]
Findings
—
Intent
—
Expiration of temporary authorization
—
Customer identification
—
Food requirements
—
Effective date
—
2021 c 48:
See notes following RCW 66.08.071
.
Finding
—
Application
—
Rules
—
Effective date
—
Contingent effective date
—
2012 c 2 (Initiative Measure No. 1183):
See notes following RCW 66.24.620
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Effective date
—
2005 c 514:
See note following RCW 83.100.230
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
Effective date
—
2003 c 167:
See note following RCW 66.24.244
.
Report to legislature
—
2003 c 167:
See note following RCW 66.24.250
.
Effective date
—
1998 c 126:
See note following RCW 66.20.010
.
Effective date
—
1997 c 321:
See note following RCW 66.24.010
.
Contingent partial referendum
—
1994 sp.s. c 7 ss 901-909:
See note following RCW 66.24.210
.
Finding
—
Intent
—
Severability
—
1994 sp.s. c 7:
See notes following RCW 43.70.540
.
Findings
—
Intent
—
1993 c 492:
See notes following RCW 43.20.050
.
Short title
—
Savings
—
Reservation of legislative power
—
Effective dates
—
1993 c 492:
See RCW 43.72.910
through
43.72.915
.
Effective dates
—
1989 c 271:
See note following RCW 66.28.200
.
Severability
—
1989 c 271:
See note following RCW 9.94A.510
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
Effective date
—
1981 1st ex.s. c 5:
See RCW 66.98.100
.
Effective date
—
1973 1st ex.s. c 204:
"This 1973 amendatory act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect the first day of July, 1973." [
1973 1st ex.s. c 204 s 4
.]
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
Effective date
—
1969 ex.s. c 21:
See note following RCW 66.04.010
.
RCW 82.08.155
Spirits tax
—
Delinquent in reporting or remitting
—
Penalties.
(1)(a) If the department determines that a taxpayer is more than thirty days delinquent in reporting or remitting spirits taxes on a tax return or assessed by the department, including any applicable penalties and interest on such taxes, the department may request that the liquor and cannabis board suspend the taxpayer's spirits license or licenses and refuse to renew any existing spirits license held by the taxpayer or issue any new spirits license to the taxpayer. The department must provide written notice to the affected taxpayer of the department's request to the liquor and cannabis board.
(b) Before the department may make a request to the liquor and cannabis board as authorized in (a) of this subsection (1), the department must have provided the taxpayer with at least seven calendar days prior written notice. This notice must inform the taxpayer that the department intends to request that the liquor and cannabis board suspend the taxpayer's spirits license or licenses and refuse to renew any existing license of the taxpayer or issue any new spirits license to the taxpayer unless, within seven calendar days of the date of the notice, the taxpayer submits any unfiled tax returns for reporting spirits taxes and remits full payment of its outstanding spirits tax liability to the department or negotiates payment arrangements for the unpaid spirits taxes. The notice required by this subsection (1)(b) must include information listing any unfiled tax returns; the amount of unpaid spirits taxes, including any applicable penalties and interest; who to contact to inquire about payment arrangements; and that the taxpayer may seek administrative review by the department of the notice, and the deadline for seeking such review. Nothing in this subsection (1)(b) requires the department to enter into any payment arrangement proposed by a taxpayer if the department determines that the taxpayer's proposal is not satisfactory.
(c) The department may not make a request to the liquor and cannabis board under (a) of this subsection relating to any spirits taxes that are the subject of pending administrative review by the department.
(2) A taxpayer's right to administrative review of the notice required in subsection (1)(b) of this section:
(a) May be conducted under any rule adopted pursuant to RCW 82.01.060
(4) or as a brief adjudicative proceeding under RCW 34.05.485
through
34.05.494
; and
(b) Does not include the right to challenge the amount of any spirits taxes assessed by the department if the taxpayer previously sought or could have sought administrative review of the assessment as provided in RCW 82.32.160
.
(3) The notices required by this section may be provided electronically in accordance with RCW 82.32.135
.
(4) For purposes of this section:
(a) "Spirits license" has the same meaning as in RCW 66.24.010
(3)(c); and
(b) "Spirits taxes" means the taxes imposed in RCW 82.08.150
.
[
2020 c 139 s 14
;
2012 c 39 s 1
.]
NOTES:
Construction
—
2012 c 39:
"This act must be liberally construed to effectuate the intent of the legislature to provide for the effective collection of liquor taxes imposed in RCW 82.08.150
." [
2012 c 39 s 9
.]
Effective date
—
2012 c 39:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 15, 2012]." [
2012 c 39 s 11
.]
RCW 82.08.160
Remittance of tax
—
Liquor excise tax fund created.
(1) On or before the twenty-fifth day of each month, all taxes collected under RCW 82.08.150
during the preceding month must be remitted to the state department of revenue, to be deposited with the state treasurer. Except as provided in subsections (2), (3), (4), and (5) of this section, upon receipt of such moneys the state treasurer must credit sixty-five percent of the sums collected and remitted under RCW 82.08.150
(1) and (2) and one hundred percent of the sums collected and remitted under RCW 82.08.150
(3) and (4) to the state general fund and thirty-five percent of the sums collected and remitted under RCW 82.08.150
(1) and (2) to a fund which is hereby created to be known as the "liquor excise tax fund."
(2) During the 2012 fiscal year, 66.19 percent of the sums collected and remitted under RCW 82.08.150
(1) and (2) must be deposited in the state general fund and the remainder collected and remitted under RCW 82.08.150
(1) and (2) must be deposited in the liquor excise tax fund.
(3) During fiscal year 2013, all funds collected under RCW 82.08.150
(1), (2), (3), and (4) must be deposited into the state general fund.
(4) During the 2013-2015 fiscal biennium, seventy-seven and one-half percent of the sums collected and remitted under RCW 82.08.150
(1) and (2) must be deposited in the state general fund, and the remainder collected and remitted under RCW 82.08.150
(1) and (2) must be deposited in the liquor excise tax fund. The amendments in *this section are curative, clarifying, and remedial and apply retroactively to July 1, 2013.
(5) During the 2015-2017 fiscal biennium, the liquor excise tax fund may be appropriated for the local government fiscal note program in the department of commerce. It is the intent of the legislature to continue these policies in the 2017-2019 fiscal biennium.
[
2015 3rd sp.s. c 4 s 975
;
2014 c 221 s 923
;
2013 2nd sp.s. c 4 s 1003
;
2012 2nd sp.s. c 5 s 3
;
2011 1st sp.s. c 50 s 969
;
1982 1st ex.s. c 35 s 4
;
1981 1st ex.s. c 5 s 26
;
1969 ex.s. c 21 s 12
;
1961 c 15 s 82.08.160
. Prior:
1955 c 396 s 2
.]
NOTES:
*Reviser's note:
"This section" means section 923, chapter 221, Laws of 2014.
Effective dates
—
2015 3rd sp.s. c 4:
See note following RCW 28B.15.069
.
Effective date
—
2014 c 221:
See note following RCW 28A.710.260
.
Effective dates
—
2013 2nd sp.s. c 4:
See note following RCW 2.68.020
.
Effective date
—
2012 2nd sp.s. c 5:
"Sections 1 and 3 through 12 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2012." [
2012 2nd sp.s. c 5 s 14
.]
Effective dates
—
2011 1st sp.s. c 50:
See note following RCW 15.76.115
.
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
Effective date
—
1981 1st ex.s. c 5:
See RCW 66.98.100
.
Effective date
—
1969 ex.s. c 21:
See note following RCW 66.04.010
.
RCW 82.08.170
Apportionment and distribution from liquor excise tax fund.
(1) Except as provided in subsections (4) and (5) of this section, during the months of January, April, July, and October of each year, the state treasurer must make the transfers required under subsections (2) and (3) of this section from the liquor excise tax fund and then the apportionment and distribution of all remaining moneys in the liquor excise tax fund to the counties, cities, and towns in the following proportions: (a) Twenty percent of the moneys in the liquor excise tax fund must be divided among and distributed to the counties of the state in accordance with the provisions of RCW 66.08.200
; and (b) eighty percent of the moneys in the liquor excise tax fund must be divided among and distributed to the cities and towns of the state in accordance with the provisions of RCW 66.08.210
.
(2) Each fiscal quarter and prior to making the twenty percent distribution to counties under subsection (1)(a) of this section, the treasurer shall transfer to the liquor revolving fund created in RCW 66.08.170
sufficient moneys to fund the allotments from any legislative appropriations for county research and services as provided under chapter
43.110
RCW.
(3) During the months of January, April, July, and October of each year, the state treasurer must transfer two million five hundred thousand dollars from the liquor excise tax fund to the state general fund.
(4) During calendar year 2012, the October distribution under subsection (1) of this section and the July and October transfers under subsections (2) and (3) of this section must not be made. During calendar year 2013, the January, April, and July distributions under subsection (1) of this section and transfers under subsections (2) and (3) of this section must not be made.
(5) The liquor excise tax fund may be appropriated for the local government fiscal note program in the department of commerce.
[
2022 c 157 s 20
;
2021 c 334 s 998
;
2020 c 357 s 919
;
2015 3rd sp.s. c 4 s 976
;
2012 2nd sp.s. c 5 s 4
;
2002 c 38 s 3
;
1997 c 437 s 4
;
1983 c 3 s 215
;
1961 c 15 s 82.08.170
. Prior:
1955 c 396 s 3
.]
NOTES:
Conflict with federal requirements
—
Effective date
—
2021 c 334:
See notes following RCW 43.79.555
.
Effective date
—
2020 c 357:
See note following RCW 43.79.545
.
Effective dates
—
2015 3rd sp.s. c 4:
See note following RCW 28B.15.069
.
Effective date
—
2012 2nd sp.s. c 5:
See note following RCW 82.08.160
.
Effective date
—
1997 c 437:
See note following RCW 43.110.030
.
RCW 82.08.180
Apportionment and distribution from liquor excise tax fund
—
Withholding for noncompliance.
The governor may notify and direct the state treasurer to withhold the revenues to which the counties, cities, and towns are entitled under RCW 82.08.170
if the counties, cities, or towns are found to be in noncompliance pursuant to RCW 36.70A.340
.
[
1991 sp.s. c 32 s 36
.]
NOTES:
Section headings not law
—
1991 sp.s. c 32:
See RCW 36.70A.902
.
RCW 82.08.190
Bundled transactions
—
Definitions.
The definitions in this section apply throughout this chapter, unless the context clearly requires otherwise.
(1)(a) "Bundled transaction" means the retail sale of two or more products, except real property and services to real property, where:
(i) The products are otherwise distinct and identifiable; and
(ii) The products are sold for one nonitemized price.
(b) A bundled transaction does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
(2) "Distinct and identifiable products" does not include:
(a) Packaging such as containers, boxes, sacks, bags, and bottles, or other materials such as wrapping, labels, tags, and instruction guides, that accompany the retail sale of the products and are incidental or immaterial to the retail sale thereof. Examples of packaging that are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and express delivery envelopes and boxes;
(b) A product provided free of charge with the required purchase of another product. A product is provided free of charge if the sales price of the product purchased does not vary depending on the inclusion of the product provided free of charge; or
(c) Items included in the definition of sales price in RCW 82.08.010
.
(3) "One nonitemized price" does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list.
(4) A transaction that otherwise meets the definition of a bundled transaction is not a bundled transaction if it is:
(a) The retail sale of tangible personal property and a service where the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service; or
(b) The retail sale of services where one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service; or
(c) A transaction that includes taxable products and nontaxable products and the purchase price or sales price of the taxable products is de minimis;
(i) As used in this subsection (4)(c), de minimis means the seller's purchase price or sales price of the taxable products is ten percent or less of the total purchase price or sales price of the bundled products;
(ii) Sellers shall use either the purchase price or the sales price of the products to determine if the taxable products are de minimis;
(iii) Sellers shall use the full term of a service contract to determine if the taxable products are de minimis; or
(d) The retail sale of exempt tangible personal property and taxable tangible personal property where:
(i) The transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, all as defined in this chapter, or medical supplies; and
(ii) Where the seller's purchase price or sales price of the taxable tangible personal property is fifty percent or less of the total purchase price or sales price of the bundled tangible personal property. Sellers may not use a combination of the purchase price and sales price of the tangible personal property when making the fifty percent determination for a transaction.
[
2007 c 6 s 1401
.]
NOTES:
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
RCW 82.08.195
Bundled transactions
—
Tax imposed.
(1) Except as provided in subsection (6) of this section, a bundled transaction is subject to the tax imposed by RCW 82.08.020
if the retail sale of any of its component products would be subject to the tax imposed by RCW 82.08.020
.
(2) The transactions described in RCW 82.08.190
(4) (a) and (b) are subject to the tax imposed by RCW 82.08.020
if the service that is the true object of the transaction is subject to the tax imposed by RCW 82.08.020
. If the service that is the true object of the transaction is not subject to the tax imposed by RCW 82.08.020, the transaction is not subject to the tax imposed by RCW 82.08.020
.
(3) The transaction described in RCW 82.08.190
(4)(c) is not subject to the tax imposed by RCW 82.08.020
.
(4) The transaction described in RCW 82.08.190
(4)(d) is not subject to the tax imposed by RCW 82.08.020
.
(5) In the case of a bundled transaction that includes any of the following: Telecommunications service, ancillary service, internet access, or audio or video programming service:
(a) If the price is attributable to products that are taxable and products that are not taxable, the portion of the price attributable to the nontaxable products are subject to the tax imposed by RCW 82.08.020
unless the seller can identify by reasonable and verifiable standards the portion from its books and records that are kept in the regular course of business for other purposes including, but not limited to, nontax purposes;
(b) If the price is attributable to products that are subject to tax at different tax rates, the total price is attributable to the products subject to the tax at the highest tax rate unless the seller can identify by reasonable and verifiable standards the portion of the price attributable to the products subject to the tax imposed by RCW 82.08.020
at the lower rate from its books and records that are kept in the regular course of business for other purposes including, but not limited to, nontax purposes.
(6) The tax imposed by RCW 82.08.020
does not apply in respect to a bundled transaction consisting entirely of the sale of services or of services and prepared food, if the sale is to a resident, sixty-two years of age or older, of a qualified low-income senior housing facility by the lessor or operator of the facility. A single bundled transaction involving both spouses of a marital community or both domestic partners of a domestic partnership meets the age requirement in this subsection if at least one of the spouses or domestic partners is at least sixty-two years of age. For purposes of this subsection, "qualified low-income senior housing facility" has the same meaning as in RCW 82.08.0293
.
(7) In the case of the sale of a code that provides a purchaser with the right to obtain more than one digital product or one or more digital products and other products or services, and all of the products and services, digital or otherwise, to be obtained through the use of the code do not have the same sales and use tax treatment, for purposes of the tax imposed by RCW 82.08.020
:
(a) The transaction is deemed to be the sale of the products and services to be obtained through the use of the code; and
(b)(i) The tax imposed by RCW 82.08.020
applies to the entire selling price of the code, except as provided in (b)(ii) of this subsection (7).
(ii) If the seller can identify by reasonable and verifiable standards the portion of the selling price attributable to the products and services that are not subject to the tax imposed by RCW 82.08.020
from its books and records that are kept in the regular course of business for other purposes including, but not limited to, nontax purposes, the tax imposed by RCW 82.08.020
does not apply to that portion of the selling price of the code attributable to the products and services that are not subject to the tax imposed by RCW 82.08.020
nor to that portion of the selling price of the code attributable to any digital goods, the sale of which is exempt under RCW 82.08.0208
(3).
[
2020 c 139 s 15
;
2010 c 111 s 601
. Prior:
2009 c 535 s 801
;
2009 c 483 s 3
;
2007 c 6 s 1402
.]
NOTES:
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Finding
—
Intent
—
Effective date
—
2009 c 483:
See notes following RCW 82.08.0293
.
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
RCW 82.08.207
Investment data for investment firms.
(Expires July 1, 2031.)
(1) The tax imposed by RCW 82.08.020
does not apply to sales of standard financial information to qualifying international investment management companies or persons affiliated with a qualifying international investment management company. The exemption provided in this section applies regardless of whether the standard financial information is provided to the buyer in a tangible format or on a tangible storage medium or as a digital product transferred electronically.
(2) Sellers making tax-exempt sales under this section must obtain an exemption certificate from the buyer in a form and manner prescribed by the department. The seller must retain a copy of the exemption certificate for the seller's files. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement. For sellers who electronically file their taxes, the department must provide a separate tax reporting line for exemption amounts claimed under this section.
(3) A buyer may not continue to claim the exemption under this section once the buyer has purchased standard financial information during the current calendar year with an aggregate total selling price in excess of fifteen million dollars and an exemption has been claimed under this section or RCW 82.12.207
for such standard financial information. The fifteen million dollar limitation under this subsection does not apply to any other exemption under this chapter that applies to standard financial information. Sellers are not responsible for ensuring a buyer's compliance with the fifteen million dollar limitation under this subsection. Sellers may not be assessed for uncollected sales tax on a sale to a buyer claiming an exemption under this section after having exceeded the fifteen million dollar limitation under this subsection, except as provided in RCW 82.08.050
(4) and (5).
(4) The definitions in this subsection and RCW 82.04.293
apply throughout this section unless the context clearly requires otherwise.
(a) "Qualifying international investment management company" means a person who is eligible for the tax rate in RCW 82.04.290
(1).
(b)(i) "Standard financial information" means financial data, facts, or information, or financial information services, not generated, compiled, or developed only for a single customer. Standard financial information includes, but is not limited to, financial market data, bond ratings, credit ratings, and deposit, loan, or mortgage reports.
(ii) For purposes of this subsection (4)(b), "financial market data" means market pricing information, such as for securities, commodities, and derivatives; corporate actions for publicly and privately traded companies, such as dividend schedules and reorganizations; corporate attributes, such as domicile, currencies used, and exchanges where shares are traded; and currency information.
(5) This section expires July 1, 2031.
[
2019 c 426 s 6
;
2013 2nd sp.s. c 13 s 702
.]
NOTES:
Findings
—
Intent
—
2019 c 426 ss 6 and 7:
"(1) The legislature finds that a strong financial cluster is critical to the economic health of Washington state. The legislature further finds that anchor institutions are key to growing a strong financial cluster, including international investment management firms. Therefore, the legislature finds that maintaining a competitive tax policy in Washington state enables the state to maintain its anchor investment management firms.
(2) The legislature finds that standard financial information has not historically been subject to sales tax. In 2007 the legislature clarified that sales tax does not apply to electronically delivered standard financial information purchased by investment management companies or financial institutions. In 2013, the legislature provided clarification by passing a sales and use tax exemption for standard financial information purchased by investment management companies.
(3) The legislature further finds that taxation of such standard financial information would be uncompetitive and inconsistent with the fundamental structure of sales tax as a tax on retail transactions. Therefore, it is the legislature's intent to conform with a previously determined policy objective of exempting certain standard financial information purchased by investment management companies from sales and use tax in order to improve industry competitiveness." [
2019 c 426 s 4
.]
Tax preference performance statement
—
2019 c 426 ss 6 and 7:
"(1) This section is the tax preference performance statement for the tax preferences contained in sections 6 and 7, chapter 426, Laws of 2019. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to improve industry competitiveness, as indicated in RCW 82.32.808
(2)(b) and to reduce structural inefficiencies in the tax structure as indicated in RCW 82.32.808
(2)(d).
(3) It is the legislature's specific public policy objective to maintain a viable financial cluster. It is the legislature's intent to exempt sales and use taxes on sales of standard financial information to qualifying international investment management companies, in order to maintain the presence of at least one international investment management services firm headquartered in Washington state with at least two hundred billion dollars of assets under management.
(4) If a review finds that there is at least one international investment management services firm with at least two hundred billion dollars of assets under management headquartered in Washington state, then the legislature intends to extend the expiration date of the tax preferences." [
2019 c 426 s 5
.]
Findings
—
Intent
—
2013 2nd sp.s. c 13:
"(1) The legislature finds that in 2007, Engrossed Substitute House Bill No. 1981 was enacted into law, which provided a sales tax exemption for electronically delivered standard financial information if the sales were to an investment management company or financial institution. The legislature further finds that in 2009 and 2010, Engrossed Substitute House Bill No. 2075 and Substitute House Bill No. 2620 were passed, to address the taxation of electronically delivered products. The legislature further finds that this legislation imposed sales and use tax on most digital services, goods, and prewritten software, but provided a broad business exemption for digital goods. The legislature further finds that the sales tax exemption for standard financial information from the 2007 legislation was eliminated because it was believed that the broader business exemption in Engrossed Substitute House Bill No. 2075 covered these transactions. The legislature further finds that the method of transmission of data by data providers to investment management companies has evolved over time where data providers add search tools to their web-based data, which makes it subject to sales tax.
(2) The legislature's intent under part VII of this act is to conform with a previously determined policy objective of exempting certain standard financial information purchased by international investment management companies from sales and use tax on the understanding that the fiscal impact is minimal. Therefore, it is the legislature's further intent to reevaluate the exemption in three years to ensure that actual fiscal impact on state revenues reasonably conforms with the fiscal estimate in the fiscal note for this legislation." [
2013 2nd sp.s. c 13 s 701
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
RCW 82.08.215
Exemptions
—
Large private airplanes.
(Expires July 1, 2031.)
(1)(a) The tax levied by RCW 82.08.020
does not apply to:
(i) Sales of large private airplanes to nonresidents of this state; and
(ii) Sales of or charges made for labor and services rendered in respect to repairing, cleaning, altering, or improving large private airplanes owned by nonresidents of this state.
(b) The exemption provided by this section applies only when the large private airplane is not required to be registered with the department of transportation, or its successor, under chapter
47.68
RCW. The airplane owner or lessee claiming an exemption under this section must provide the department, upon request, a copy of the written statement required under *RCW 47.68.250
(5)(c)(ii) documenting the airplane's registration exemption and any additional information the department may require.
(2) Sellers making tax-exempt sales under this section must obtain an exemption certificate from the buyer in a form and manner prescribed by the department. The seller must retain a copy of the exemption certificate for the seller's files. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement. For sellers who electronically file their taxes, the department must provide a separate tax reporting line for exemption amounts claimed under this section.
(3) Upon request, the department of transportation must provide to the department of revenue information needed by the department of revenue to verify eligibility under this section.
(4) For purposes of this section "large private airplane" means an airplane not used in interstate commerce, not owned or leased by a government entity, weighing more than forty-one thousand pounds, and assigned a category A, B, C, or D test flow management system aircraft weight class by the federal aviation administration's office of aviation policy and plans.
(5) This section expires July 1, 2031.
[
2020 c 304 s 1
;
2013 2nd sp.s. c 13 s 1103
.]
NOTES:
*Reviser's note:
RCW 47.68.250
was amended by 2021 c 131 s 2, changing subsection (5)(c)(ii) to subsection (6)(c)(ii).
Effective date
—
2013 2nd sp.s. c 13:
"Part XI of this act takes effect January 1, 2014." [
2013 2nd sp.s. c 13 s 1905
.]
Intent
—
Findings
—
Tax preference review
—
2020 c 304 ss 1-5; 2013 2nd sp.s. c 13 ss 1101-1105:
See note following RCW 47.68.250
.
RCW 82.08.225
Taxes on lodging, car rentals, and restaurants
—
Deposit into statewide tourism marketing account.
Beginning July 1, 2025, 0.2 percent of taxes collected pursuant to RCW 82.08.020
(1) on retail sales of lodging, car rentals, and restaurants, up to $3,000,000 per biennium, must be deposited into the statewide tourism marketing account created in RCW 43.384.040
.
[
2024 c 130 s 1
;
2018 c 275 s 9
.]
NOTES:
Effective date
—
2024 c 130:
"This act takes effect July 1, 2025." [
2024 c 130 s 2
.]
RCW 82.08.665
Exemptions
—
Adaptive recreational and rehabilitation facilities.
(Expires January 1, 2035.)
(1) The tax levied by RCW 82.08.020
does not apply to sales made on a federal military reservation by a nonprofit organization under Title 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986, as amended, as of October 1, 2024, that operates an adaptive recreational and rehabilitation facility dedicated to the assistance of disabled veterans and members of the armed forces of the United States of America.
(2) For the purposes of this section, "adaptive recreational and rehabilitation facility" means a facility that provides activity modifications, assistive technologies, or other services to allow people with disabilities to participate in recreational activities, sports, or physical rehabilitation efforts.
(3) This section expires January 1, 2035.
[
2024 c 141 s 3
.]
NOTES:
Tax preference performance statement
—
Effective date
—
2024 c 141 ss 2-4:
See notes following RCW 82.04.665
.
RCW 82.08.700
Exemptions
—
Vessels sold to nonresidents.
(1) The tax levied by RCW 82.08.020
does not apply to sales to nonresident individuals of vessels thirty feet or longer if an individual purchasing a vessel purchases and displays a valid use permit.
(2)(a) An individual claiming exemption from retail sales tax under this section must display proof of his or her current nonresident status at the time of purchase.
(b) Acceptable proof of a nonresident individual's status includes one piece of identification such as a valid driver's license from the jurisdiction in which the out-of-state residency is claimed or a valid identification card that has a photograph of the holder and is issued by the out-of-state jurisdiction. Identification under this subsection (2)(b) must show the holder's residential address and have as one of its legal purposes the establishment of residency in that out-of-state jurisdiction.
(3) Nothing in this section requires the vessel dealer to make tax exempt retail sales to nonresidents. A dealer may choose to make sales to nonresidents, collect the sales tax, and remit the amount of sales tax collected to the state as otherwise provided by law. If the dealer chooses to make a sale to a nonresident without collecting the sales tax, the vendor must examine the proof of nonresidence, determine whether the proof is acceptable under subsection (2)(b) of this section, and maintain records for each nontaxable sale that shows the type of proof accepted, including any identification numbers where appropriate, and the expiration date, if any.
(4) A vessel dealer shall issue a use permit to a buyer if the dealer is satisfied that the buyer is a nonresident. The use permit must be in a form and manner required by the department and must include an affidavit, signed by the purchaser, declaring that the vessel will be used in a manner consistent with this section. The fee for the issuance of a use permit is five hundred dollars for vessels fifty feet in length or less and eight hundred dollars for vessels greater than fifty feet in length. Funds collected under this section and RCW 82.12.700
must be reported on the dealer's excise tax return and remitted to the department in accordance with RCW 82.32.045
. The department must transmit the fees to the state treasurer to be deposited in the state general fund. The use permit must be displayed on the vessel and is valid for twelve consecutive months from the date of issuance. A use permit is not renewable. A purchaser at the time of purchase must make an irrevocable election to take the exemption authorized in this section or the exemption in either RCW 82.08.0266
or
82.08.02665
. A vessel dealer must maintain a copy of the use permit for the dealer's records. Vessel dealers must provide copies of use permits issued by the dealer under this section and RCW 82.12.700
to the department on a quarterly basis.
(5) A nonresident who claims an exemption under this section and who uses a vessel in this state after his or her use permit for that vessel has expired is liable for the tax imposed under RCW 82.08.020
on the original selling price of the vessel and must pay the tax directly to the department. Interest at the rate provided in RCW 82.32.050
applies to amounts due under this subsection, retroactively to the date the vessel was purchased, and accrues until the full amount of tax due is paid to the department.
(6) Any vessel dealer who makes sales without collecting the tax to a person who does not hold valid identification establishing out-of-state residency, and any dealer who fails to maintain records of sales to nonresidents as provided in this section, is personally liable for the amount of tax due.
(7) Chapter
82.32
RCW applies to the administration of the fee imposed in this section and RCW 82.12.700
.
(8) A vessel dealer that issues use permits under this section and RCW 82.12.700
must file with the department all returns in an electronic format as provided or approved by the department. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050
.
(a) Any return required to be filed in an electronic format under this subsection is not filed until received by the department in an electronic format provided or approved by the department.
(b) The electronic filing requirement in this subsection ends when a vessel dealer no longer issues use permits, and the dealer has electronically filed all of its returns reporting the fees collected under this section and RCW 82.12.700
.
(c) The department may waive the electronic filing requirement in this subsection for good cause shown.
[
2010 c 106 s 219
;
2007 c 22 s 1
.]
NOTES:
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Effective date
—
2007 c 22:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007." [
2007 c 22 s 4
.]
RCW 82.08.701
Exemptions
—
Grantee's receipt of salmon recovery grants.
(1) The tax levied by RCW 82.08.020
does not apply to a grantee's receipt of amounts received as grants that are deductible under RCW 82.04.4339
.
(2) Nothing in this section may be construed to:
(a) Imply that the tax levied by RCW 82.08.020
applies to any circumstance not described in subsection (1) of this section; or
(b) Provide an exemption from the tax levied by RCW 82.08.020
for the grantee's use of grant proceeds to acquire products in a transaction meeting the definition of "retail sale" in RCW 82.04.050
.
(3) For purposes of this section, the following definitions apply:
(a) "Grantee" means the recipient of a grant deductible under RCW 82.04.4339
.
(b) "Product" means the same as in RCW 82.32.023
.
[
2021 c 143 s 3
.]
NOTES:
Automatic expiration date and tax preference performance statement exemption
—
Effective date
—
2021 c 143:
See notes following RCW 82.04.4339
.
RCW 82.08.702
Exemptions
—
Sales to a farmer performing custom farming services or farm management services.
(1) Subject to the limitations of this section, the tax levied by RCW 82.08.020
does not apply to sales of goods and services purchased by an eligible farmer. The exemption under this section is in the form of a remittance.
(2) An eligible farmer claiming an exemption from state and local tax in the form of the remittance under this section must pay the tax under RCW 82.08.020
and all applicable local sales taxes. The eligible farmer must specify the amount of exempted tax claimed and the qualifying purchases for which the exemption is claimed. The eligible farmer must retain, in adequate detail, records to enable the department to determine whether the eligible farmer is entitled to an exemption under this section.
(3) An exemption under this section is limited to $10,000 per eligible farmer and must be claimed prior to January 1, 2030.
(4) For the purposes of this section, "eligible farmer" means a farmer performing custom farming services or farm management services, as those terms are defined in RCW 82.04.758
.
[
2024 c 222 s 1
.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2024 c 222:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2024 c 222 s 3
.]
Effective date
—
2024 c 222:
"This act takes effect July 1, 2024." [
2024 c 222 s 4
.]
RCW 82.08.798
Exemptions
—
Sales of feminine hygiene products.
(1) The tax levied by RCW 82.08.020
does not apply to the sales of feminine hygiene products.
(2) "Feminine hygiene products" means sanitary napkins, tampons, menstrual cups, or any other similar products sold at retail designed specifically to catch menstrual flow either internally or externally.
[
2020 c 350 s 3
.]
NOTES:
Tax preference performance statement
—
2020 c 350 ss 3 and 4:
"(1) This section is the tax preference performance statement for the sales and use tax exemptions for feminine hygiene products provided in sections 3 and 4, chapter 350, Laws of 2020. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility to preferential tax treatment.
(2) The legislature categorizes these tax preferences as one[s] intended to provide tax relief for certain individuals as indicated in RCW 82.32.808
(2)(e).
(3) It is the legislature's specific public policy objective to authorize a permanent sales and use tax exemption for feminine hygiene products to reduce the tax burden on females for a product that is fundamental to personal hygiene and health.
(4) The joint legislative audit and review committee is not required to include the tax preferences authorized in sections 3 and 4, chapter 350, Laws of 2020 as part of its normal review process of tax preferences. The tax preferences authorized in sections 3 and 4, chapter 350, Laws of 2020 will be included in the tax exemption report required under RCW 43.06.400
published by the department of revenue." [
2020 c 350 s 2
.]
Findings
—
Intent
—
2020 c 350:
"The legislature finds that feminine hygiene products are a necessity for most females in the state. Taxing a necessary feminine hygiene product unjustly adds an additional tax burden on females that creates a tax gap between genders, requiring females to potentially pay more of their income to state taxes. The legislature further finds that taxing feminine hygiene products adds to the regressive tax burden on low-income families. The legislature further finds that feminine hygiene products are not a discretionary purchase, they are a necessity for which there is no alternative for females to maintain proper health and hygiene. Therefore, the legislature intends to provide a permanent sales and use tax exemption for feminine hygiene products." [
2020 c 350 s 1
.]
Exemption from automatic expiration date of new tax preference
—
2020 c 350:
"The automatic expiration date provisions of RCW 82.32.805
(1)(a) do not apply to this act." [
2020 c 350 s 5
.]
Effective date
—
2020 c 350:
"This act takes effect July 1, 2020." [
2020 c 350 s 6
.]
RCW 82.08.803
Exemptions
—
Nebulizers.
(1) An exemption from the tax imposed by RCW 82.08.020
in the form of a refund is provided for sales of nebulizers, including repair, replacement, and component parts for such nebulizers, for human use pursuant to a prescription. In addition, the tax levied by RCW 82.08.020
shall not apply to charges made for labor and services rendered in respect to the repairing, cleaning, altering, or improving of nebulizers. "Nebulizer" means a device, not a building fixture, that converts a liquid medication into a mist so that it can be inhaled.
(2) Sellers shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department in a form and manner prescribed by the department.
[
2007 c 6 s 1103
;
2004 c 153 s 104
.]
NOTES:
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
RCW 82.08.804
Exemptions
—
Ostomic items.
The tax levied by RCW 82.08.020
shall not apply to sales of ostomic items used by colostomy, ileostomy, or urostomy patients. "Ostomic items" means disposable medical supplies used by colostomy, ileostomy, and urostomy patients, and includes bags, belts to hold up bags, tapes, tubes, adhesives, deodorants, soaps, jellies, creams, germicides, and other like supplies. "Ostomic items" does not include undergarments, pads and shields to protect undergarments, sponges, or rubber sheets.
[
2004 c 153 s 106
.]
NOTES:
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
RCW 82.08.805
Exemptions
—
Personal property used at an aluminum smelter.
(1) A person who has paid tax under RCW 82.08.020
for personal property used at an aluminum smelter, tangible personal property that will be incorporated as an ingredient or component of buildings or other structures at an aluminum smelter, or for labor and services rendered with respect to such buildings, structures, or personal property, is eligible for an exemption from the state share of the tax in the form of a credit, as provided in this section. A person claiming an exemption must pay the tax and may then take a credit equal to the state share of retail sales tax paid under RCW 82.08.020
. The person must submit information, in a form and manner prescribed by the department, specifying the amount of qualifying purchases or acquisitions for which the exemption is claimed and the amount of exempted tax.
(2) For the purposes of this section, "aluminum smelter" has the same meaning as provided in RCW 82.04.217
.
(3) A person claiming the tax preference provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(4) Credits may not be claimed under this section for taxable events occurring on or after January 1, 2027.
[
2017 c 135 s 21
;
2015 3rd sp.s. c 6 s 504
;
2011 c 174 s 303
. Prior:
2010 1st sp.s. c 2 s 3
;
2010 c 114 s 122
;
2009 c 535 s 513
;
2006 c 182 s 3
;
2004 c 24 s 10
.]
NOTES:
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Findings
—
Tax preference performance statement
—
2015 3rd sp.s. c 6 ss 502-506:
See note following RCW 82.04.2909
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Intent
—
Effective date
—
2004 c 24:
See notes following RCW 82.04.2909
.
RCW 82.08.806
Exemptions
—
Sale of computer equipment parts and services to printer or publisher.
(Effective until January 1, 2034.)
(1) The tax levied by RCW 82.08.020
does not apply to sales, to a printer or publisher, of computer equipment, including repair parts and replacement parts for such equipment, when the computer equipment is used primarily in the printing or publishing of any printed material, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the computer equipment. This exemption applies only to computer equipment not otherwise exempt under RCW 82.08.02565
.
(2) A person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section. This exemption is available only when the purchaser provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) The definitions in this subsection (3) apply throughout this section, unless the context clearly requires otherwise.
(a) "Computer" has the same meaning as in RCW 82.04.215
.
(b) "Computer equipment" means a computer and the associated physical components that constitute a computer system, including monitors, keyboards, printers, modems, scanners, pointing devices, and other computer peripheral equipment, cables, servers, and routers. "Computer equipment" also includes digital cameras and computer software.
(c) "Computer software" has the same meaning as in RCW 82.04.215
.
(d) "Primarily" means greater than fifty percent as measured by time.
(e) "Printer or publisher" means a person, as defined in RCW 82.04.030, who is subject to tax under RCW 82.04.280
(1)(a) or is eligible for the exemption under RCW 82.04.759
.
(4) "Computer equipment" does not include computer equipment that is used primarily for administrative purposes including but not limited to payroll processing, accounting, customer service, telemarketing, and collection. If computer equipment is used simultaneously for administrative and nonadministrative purposes, the administrative use must be disregarded during the period of simultaneous use for purposes of determining whether the computer equipment is used primarily for administrative purposes.
[
2023 c 286 s 6
;
2020 c 139 s 16
;
2011 c 174 s 204
;
2010 1st sp.s. c 23 s 516
;
2009 c 461 s 5
;
2004 c 8 s 2
.]
NOTES:
Findings
—
Effective date
—
Expiration date
—
2023 c 286:
See notes following RCW 82.04.759
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
Contingent effective date
—
2009 c 461:
See note following RCW 82.04.280
.
Findings
—
Intent
—
2004 c 8:
"(1) The legislature finds that the manufacturer's machinery and equipment sales and use tax exemption is vital to the continued development of economic opportunity in this state, including the development of new businesses and the expansion or modernization of existing businesses.
(2) The legislature finds that the printing and publishing industries have not been able to realize the benefits of the manufacturer's machinery and equipment sales and use tax exemption to the same extent as other manufacturing industries due to dramatic changes in business methods caused by computer technology not contemplated when the manufacturer's machinery and equipment sales and use tax exemption was adopted. As a result of these changes in business methods, a substantial amount of computer equipment used by printers and publishers is not eligible for the manufacturer's machinery and equipment sales and use tax exemption because the computer equipment is not used within the manufacturing site.
(3) The legislature further finds that additional incentives for printers and publishers need to be adopted to provide these industries with similar benefits as the manufacturer's machinery and equipment sales and use tax exemption provides for other manufacturing industries, and in recognition of the rapid rate of technological advancement in business methods undergone by the printing and publishing industries. The legislature intends to accomplish this by providing a sales and use tax exemption to printers and publishers for computer equipment, not otherwise eligible for the manufacturer's machinery and equipment sales and use tax exemption, used primarily in the printing or publishing of printed material, and for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving such computer equipment." [
2004 c 8 s 1
.]
PDF
RCW 82.08.806
Exemptions
—
Sale of computer equipment parts and services to printer or publisher.
(Effective January 1, 2034.)
(1) The tax levied by RCW 82.08.020
does not apply to sales, to a printer or publisher, of computer equipment, including repair parts and replacement parts for such equipment, when the computer equipment is used primarily in the printing or publishing of any printed material, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the computer equipment. This exemption applies only to computer equipment not otherwise exempt under RCW 82.08.02565
.
(2) A person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section. This exemption is available only when the purchaser provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) The definitions in this subsection (3) apply throughout this section, unless the context clearly requires otherwise.
(a) "Computer" has the same meaning as in RCW 82.04.215
.
(b) "Computer equipment" means a computer and the associated physical components that constitute a computer system, including monitors, keyboards, printers, modems, scanners, pointing devices, and other computer peripheral equipment, cables, servers, and routers. "Computer equipment" also includes digital cameras and computer software.
(c) "Computer software" has the same meaning as in RCW 82.04.215
.
(d) "Primarily" means greater than fifty percent as measured by time.
(e) "Printer or publisher" means a person, as defined in RCW 82.04.030, who is subject to tax under RCW 82.04.260
(14) or
82.04.280
(1)(a).
(4) "Computer equipment" does not include computer equipment that is used primarily for administrative purposes including but not limited to payroll processing, accounting, customer service, telemarketing, and collection. If computer equipment is used simultaneously for administrative and nonadministrative purposes, the administrative use must be disregarded during the period of simultaneous use for purposes of determining whether the computer equipment is used primarily for administrative purposes.
[
2020 c 139 s 16
;
2011 c 174 s 204
;
2010 1st sp.s. c 23 s 516
;
2009 c 461 s 5
;
2004 c 8 s 2
.]
NOTES:
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
Contingent effective date
—
2009 c 461:
See note following RCW 82.04.280
.
Findings
—
Intent
—
2004 c 8:
"(1) The legislature finds that the manufacturer's machinery and equipment sales and use tax exemption is vital to the continued development of economic opportunity in this state, including the development of new businesses and the expansion or modernization of existing businesses.
(2) The legislature finds that the printing and publishing industries have not been able to realize the benefits of the manufacturer's machinery and equipment sales and use tax exemption to the same extent as other manufacturing industries due to dramatic changes in business methods caused by computer technology not contemplated when the manufacturer's machinery and equipment sales and use tax exemption was adopted. As a result of these changes in business methods, a substantial amount of computer equipment used by printers and publishers is not eligible for the manufacturer's machinery and equipment sales and use tax exemption because the computer equipment is not used within the manufacturing site.
(3) The legislature further finds that additional incentives for printers and publishers need to be adopted to provide these industries with similar benefits as the manufacturer's machinery and equipment sales and use tax exemption provides for other manufacturing industries, and in recognition of the rapid rate of technological advancement in business methods undergone by the printing and publishing industries. The legislature intends to accomplish this by providing a sales and use tax exemption to printers and publishers for computer equipment, not otherwise eligible for the manufacturer's machinery and equipment sales and use tax exemption, used primarily in the printing or publishing of printed material, and for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving such computer equipment." [
2004 c 8 s 1
.]
RCW 82.08.807
Exemptions
—
Direct mail delivery charges.
The tax levied by RCW 82.08.020
does not apply to delivery charges made for the delivery of direct mail if the charges are separately stated on an invoice or similar billing document given to the purchaser.
[
2005 c 514 s 115
.]
NOTES:
Effective date
—
2005 c 514:
See note following RCW 82.04.4272
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
RCW 82.08.808
Exemptions
—
Sales of medical supplies, chemicals, or materials to comprehensive cancer centers.
(1) The tax levied by RCW 82.08.020
does not apply to the sale of medical supplies, chemicals, or materials to a comprehensive cancer center. The exemption in this section does not apply to the sale of construction materials, office equipment, building equipment, administrative supplies, or vehicles.
(2) For the purposes of this section, the following definitions apply:
(a) "Comprehensive cancer center" has the meaning provided in RCW 82.04.4265
.
(b) "Chemical" means any catalyst, solvent, water, acid, oil, or other additive that physically or chemically interacts with blood, bone, or tissue.
(c) "Materials" means any item of tangible personal property, including, but not limited to, bags, packs, collecting sets, filtering materials, testing reagents, antisera, and refrigerants used or consumed in performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
(d) "Research" means basic and applied research that has as its objective the design, development, refinement, testing, marketing, or commercialization of a product, service, or process.
(e) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by a comprehensive cancer center for the purpose of performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue. The term includes tangible personal property used to:
(i) Provide preparatory treatment of blood, bone, or tissue;
(ii) Control, guide, measure, tune, verify, align, regulate, test, or physically support blood, bone, or tissue; and
(iii) Protect the health and safety of employees or others present during research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
[
2005 c 514 s 402
.]
NOTES:
Effective date
—
2005 c 514 ss 401-403:
See note following RCW 82.04.4265
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
RCW 82.08.809
Exemptions
—
Vehicles using clean alternative fuels and electric vehicles, exceptions
—
Quarterly transfers.
(1)(a) Except as provided in subsection (4) of this section, the tax levied by RCW 82.08.020
does not apply to sales of new passenger cars, light duty trucks, and medium duty passenger vehicles, which (i) are exclusively powered by a clean alternative fuel or (ii) use at least one method of propulsion that is capable of being reenergized by an external source of electricity and are capable of traveling at least thirty miles using only battery power.
(b) Beginning with sales made or lease agreements signed on or after July 1, 2016, the exemption in this section is only applicable for up to thirty-two thousand dollars of a vehicle's selling price or the total lease payments made plus the selling price of the leased vehicle if the original lessee purchases the leased vehicle before the expiration of the exemption as described in subsection (6) of this section.
(2) The seller must keep records necessary for the department to verify eligibility under this section.
(3) As used in this section, "clean alternative fuel" means natural gas, propane, hydrogen, or electricity, when used as a fuel in a motor vehicle that meets the California motor vehicle emission standards in Title 13 of the California code of regulations, effective January 1, 2005, and the rules of the Washington state department of ecology.
(4)(a) A sale, other than a lease, of a vehicle identified in subsection (1)(a) of this section made on or after July 15, 2015, and before July 1, 2016, is not exempt from sales tax as described under subsection (1) of this section if the selling price of the vehicle plus trade-in property of like kind exceeds thirty-five thousand dollars.
(b) A sale, other than a lease, of a vehicle identified in subsection (1)(a) of this section made on or after July 1, 2016, and before the expiration of the exemption as described in subsection (6) of this section, is not exempt from sales tax as described under subsection (1)(b) of this section if, at the time of sale, the lowest manufacturer's suggested retail price, as determined in rule by the department of licensing pursuant to chapter
34.05
RCW, for the base model is more than forty-two thousand five hundred dollars.
(c) For leased vehicles for which the lease agreement was signed before July 1, 2015, lease payments are exempt from sales tax as described under subsection (1)(a) of this section regardless of the vehicle's fair market value at the inception of the lease.
(d) For leased vehicles identified in subsection (1)(a) of this section for which the lease agreement is signed on or after July 15, 2015, and before July 1, 2016, lease payments are not exempt from sales tax if the fair market value of the vehicle being leased exceeds thirty-five thousand dollars at the inception of the lease. For the purposes of this subsection (4), "fair market value" has the same meaning as "value of the article used" in RCW 82.12.010
.
(e) For leased vehicles identified in subsection (1)(a) of this section for which the lease agreement is signed on or after July 1, 2016, and before the expiration of the exemption as described in subsection (6) of this section, lease payments are not exempt from sales tax as described under subsection (1)(b) of this section if, at the inception of the lease, the lowest manufacturer's suggested retail price, as determined in rule by the department of licensing pursuant to chapter
34.05
RCW, for the base model is more than forty-two thousand five hundred dollars.
(f) The department of licensing must maintain and publish a list of all vehicle models qualifying for the sales tax exemption under this section until the expiration of the exemption as described in subsection (6) of this section.
(5) On the last day of January, April, July, and October of each year, the state treasurer, based upon information provided by the department, must transfer from the multimodal transportation account to the general fund a sum equal to the dollar amount that would otherwise have been deposited into the general fund during the prior calendar quarter but for the exemption provided in this section. Information provided by the department to the state treasurer must be based on the best available data, except that the department may provide estimates of taxes exempted under this section until such time as retailers are able to report such exempted amounts on their tax returns. For purposes of this section, the first transfer for the calendar quarter after July 15, 2015, must be calculated assuming only those revenues that should have been deposited into the general fund beginning July 1, 2015.
(6)(a) The exemption under this section expires, effective with sales of vehicles delivered to the buyer or leased vehicles for which the lease agreement was signed, after the last day of the calendar month immediately following the month the department receives notice from the department of licensing under subsection (7)(b) of this section. All leased vehicles that qualified for the exemption before the expiration of the exemption must continue to receive the exemption as described under subsection (1)(b) of this section on lease payments due through the remainder of the lease.
(b) Upon receiving notice from the department of licensing under subsection (7)(b) of this section, the department must provide notice as soon as is practicable on its website of the expiration date of the exemption under this section.
(c) For purposes of this subsection, even if the department of licensing provides the department with notice under subsection (7)(b) of this section before the end of the fifth working day of the month notice is required, the notice is deemed to have been received by the department at the end of the fifth working day of the month notice is required.
(d) If, by the end of the fifth working day of May 2019, the department has not received notice from the department of licensing under subsection (7)(b) of this section, the exemption under this section expires effective with sales of vehicles delivered to the buyer or leased vehicles for which the lease agreement was signed after June 30, 2019.
(e) Nothing in this subsection (6) may be construed to affect the validity of any exemption properly allowed by a seller under this section before the expiration of the exemption as described in (a) of this subsection and reported to the department on returns filed after the expiration of the exemption.
(f) Nothing in this subsection (6) may be construed to allow an exemption under this section for the purchase of a qualifying vehicle by the original lessee of the vehicle after the expiration of the exemption as provided in (a) of this subsection.
(7)(a) By the end of the fifth working day of each month, until the expiration of the exemption as described in subsection (6) of this section, the department of licensing must determine the cumulative number of qualifying vehicles titled on or after July 15, 2015, and provide notice of the cumulative number of these vehicles to the department.
(b) The department of licensing must notify the department once the cumulative number of qualifying vehicles titled in the state on or after July 15, 2015, equals or exceeds seven thousand five hundred.
(8) By the last day of July 2016, and every six months thereafter until the expiration of the exemption as described in subsection (6) of this section, based on the best available data, the department must report the following information to the transportation committees of the legislature: The cumulative number of qualifying vehicles titled in the state on or after July 15, 2015, as reported to it by the department of licensing; and the dollar amount of all state retail sales and use taxes exempted on or after July 15, 2015, under this section and RCW 82.12.809
.
(9) For purposes of this section, "qualifying vehicle" means a vehicle qualifying for the exemption under this section or RCW 82.12.809
in which the sale was made or the lease agreement was signed on or after July 15, 2015.
[
2016 sp.s. c 32 s 2
;
2015 3rd sp.s. c 44 s 408
;
2010 1st sp.s. c 11 s 2
;
2005 c 296 s 1
.]
NOTES:
Effective date
—
2016 sp.s. c 32:
"This act takes effect July 1, 2016." [
2016 sp.s. c 32 s 4
.]
Tax preference performance statement
—
2016 sp.s. c 32:
"This section is the tax preference performance statement for the tax preferences contained in sections 2 and 3 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes the tax preference as one intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808
(2)(a).
(2) It is the legislature's specific public policy objective to increase the use of clean alternative fuel vehicles in Washington. It is the legislature's intent to extend the existing sales and use tax exemption on certain clean alternative fuel vehicles in order to reduce the price charged to customers for clean alternative fuel vehicles.
(3) To measure the effectiveness of the tax preferences in sections 2 and 3 of this act in achieving the public policy objectives described in subsection (2) of this section, the joint legislative audit and review committee must evaluate the number of clean alternative fuel vehicles titled in the state.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the department of licensing must provide data needed for the joint legislative audit and review committee analysis. In addition to the data source described under this subsection, the joint legislative audit and review committee may use any other data it deems necessary." [
2016 sp.s. c 32 s 1
.]
Tax preference performance statement
—
2015 3rd sp.s. c 44 ss 408 and 409:
"This section is the tax preference performance statement for the tax preferences contained in sections 408 and 409 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes the tax preference as one intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808
(2)(a).
(2) It is the legislature's specific public policy objective to increase the use of clean alternative fuel vehicles in Washington. It is the legislature's intent to extend the existing sales and use tax exemption on certain clean alternative fuel vehicles in order to reduce the price charged to customers for clean alternative fuel vehicles.
(3) To measure the effectiveness of the tax preferences in sections 408 and 409 of this act in achieving the public policy objectives described in subsection (2) of this section, the joint legislative audit and review committee must evaluate the number of clean alternative fuel vehicles registered in the state.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the department of licensing must provide data needed for the joint legislative audit and review committee analysis. In addition to the data source described under this subsection, the joint legislative audit and review committee may use any other data it deems necessary." [
2015 3rd sp.s. c 44 s 407
.]
Effective date
—
2005 c 296:
"This act takes effect January 1, 2009." [
2005 c 296 s 5
.]
RCW 82.08.810
Exemptions
—
Air pollution control facilities at a thermal electric generation facility
—
Exceptions
—
Exemption certificate
—
Payments on cessation of operation.
(1) For the purposes of this section, "air pollution control facilities" mean any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation.
(2) The tax levied by RCW 82.08.020
does not apply to:
(a) Sales of tangible personal property to a light and power business, as defined in RCW 82.16.010, for construction or installation of air pollution control facilities at a thermal electric generation facility; or
(b) Sales of, cost of, or charges made for labor and services performed in respect to the construction or installation of air pollution control facilities.
(3) The exemption provided under this section applies only to sales, costs, or charges:
(a) Incurred for air pollution control facilities constructed or installed after May 15, 1997, and used in a thermal electric generation facility placed in operation after December 31, 1969, and before July 1, 1975;
(b) If the air pollution control facilities are constructed or installed to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter
70A.15
RCW; and
(c) For which the purchaser provides the seller with an exemption certificate, signed by the purchaser or purchaser's agent, that includes a description of items or services for which payment is made, the amount of the payment, and such additional information as the department reasonably may require.
(4) This section does not apply to sales of tangible personal property purchased or to sales of, costs of, or charges made for labor and services used for maintenance or repairs of pollution control equipment.
(5) If production of electricity at a thermal electric generation facility for any calendar year after 2002 and before 2023 falls below a twenty percent annual capacity factor for the generation facility, all or a portion of the tax previously exempted under this section in respect to construction or installation of air pollution control facilities at the generation facility shall be due as follows:
Portion of previously
Year event occurs
exempted tax due
2003
100%
2004
95%
2005
90%
2006
85%
2007
80%
2008
75%
2009
70%
2010
65%
2011
60%
2012
55%
2013
50%
2014
45%
2015
40%
2016
35%
2017
30%
2018
25%
2019
20%
2020
15%
2021
10%
2022
5%
2023
0%
(6) *RCW 82.32.393
applies to this section.
[
2020 c 20 s 1473
;
1997 c 368 s 2
.]
NOTES:
*Reviser's note:
RCW 82.32.393
expired December 31, 2015.
Findings
—
Intent
—
1997 c 368:
"(1) The legislature finds that:
(a) Thermal electric generation facilities play an important role in providing jobs for residents of the communities where such plants are located; and
(b) Taxes paid by thermal electric generation facilities help to support schools and local and state government operations.
(2) It is the intent of the legislature to assist thermal electric generation facilities placed in operation after December 31, 1969, and before July 1, 1975, to update their air pollution control equipment and abate pollution by extending certain tax exemptions and credits so that such plants may continue to play a long-term vital economic role in the communities where they are located." [
1997 c 368 s 1
.]
Rules adoption
—
1997 c 368:
"The department of revenue and the department of ecology may adopt rules to implement this act." [
1997 c 368 s 15
.]
Severability
—
1997 c 368:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1997 c 368 s 16
.]
Effective date
—
1997 c 368:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 15, 1997]." [
1997 c 368 s 17
.]
RCW 82.08.811
Exemptions
—
Coal used at coal-fired thermal electric generation facility
—
Application
—
Demonstration of progress in air pollution control
—
Notice of emissions violations
—
Reapplication
—
Payments on cessation of operation.
(1) For the purposes of this section:
(a) "Air pollution control facilities" means any treatment works, control devices and disposal systems, machinery, equipment, structure, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation; and
(b) "Generation facility" means a coal-fired thermal electric generation facility placed in operation after December 3, 1969, and before July 1, 1975.
(2) Beginning January 1, 1999, the tax levied by RCW 82.08.020
does not apply to sales of coal used to generate electric power at a generation facility operated by a business if the following conditions are met:
(a) The owners must make an application to the department of revenue for a tax exemption;
(b) The owners must make a demonstration to the department of ecology that the owners have made reasonable initial progress to install air pollution control facilities to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter
70A.15
RCW;
(c) Continued progress must be made on the development of air pollution control facilities to meet the requirements of the permit; and
(d) The generation facility must emit no more than ten thousand tons of sulfur dioxide during a previous consecutive twelve-month period.
(3) During a consecutive twelve-month period, if the generation facility is found to be in violation of excessive sulfur dioxide emissions from a regional air pollution control authority or the department of ecology, the department of ecology shall notify the department of revenue and the owners of the generation facility shall lose their tax exemption under this section. The owners of a generation facility may reapply for the tax exemption when they have once again met the conditions of subsection (2)(d) of this section.
(4) *RCW 82.32.393
applies to this section.
[
2020 c 20 s 1474
;
1997 c 368 s 4
.]
NOTES:
*Reviser's note:
RCW 82.32.393
expired December 31, 2015.
Findings
—
Intent
—
Rules adoption
—
Severability
—
Effective date
—
1997 c 368:
See notes following RCW 82.08.810
.
RCW 82.08.814
Exemptions
—
Mobility enhancing equipment.
(1) The tax levied by RCW 82.08.020
does not apply to the sale of mobility enhancing equipment for use by or for a complex needs patient to meet the user's specific and unique medical, physical, and functional needs and capacities for basic activities when medically necessary to prevent hospitalization or institutionalization of the complex needs patient.
(2) In order to claim an exemption under this section, the purchaser must provide the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) For the purposes of this section, "complex needs patient" has the same meaning as in RCW 74.09.557
.
[
2023 c 319 s 1
.]
NOTES:
Application
—
2023 c 319:
"This act applies to mobility enhancing equipment, as described in sections 1 and 2 of this act, sold or used on or after August 1, 2023." [
2023 c 319 s 3
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 319:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2023 c 319 s 4
.]
RCW 82.08.817
Additional tax on sales of certain motor vehicles.
(Effective January 1, 2026.)
(1)(a) Except as provided in subsection (3) of this section, in addition to the taxes imposed under RCW 82.08.020, there is levied and collected an additional tax of eight percent on the sale of a motor vehicle if:
(i) The selling price of the motor vehicle plus trade-in property of like kind for purchased vehicles exceeds $100,000; or
(ii) In the case of a lease requiring periodic payments, the fair market value of the motor vehicle exceeds $100,000 at the inception of the lease.
(b) The additional tax imposed in this subsection (1):
(i) Is equal to the portion of the selling price plus trade-in property of like kind for purchased vehicles in excess of the deduction amount specified in subsection (2) of this section, multiplied by eight percent; or
(ii) In the case of a lease requiring periodic payments, is the fair market value of the motor vehicle in excess of the amount specified in subsection (2) of this subsection, at the inception of the lease, multiplied by eight percent.
(2) The deduction amount is $100,000 for fiscal year 2026. The deduction amount must be annually adjusted on July 1st of each year by increasing the amount by two percent and rounding the result to the nearest whole dollar.
(3) The taxes imposed under this section do not apply to the sale or lease of:
(a) A commercial motor vehicle, as defined in RCW 46.25.010
; or
(b) A motor vehicle that has a gross vehicle weight rating of greater than 10,000 pounds other than motor homes, as defined in RCW 46.04.305
.
(4) The revenue collected under this section must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(5) For the purposes of this section and RCW 82.12.818, the following definitions apply:
(a) "Motor vehicle" has the same meaning as in RCW 46.04.320, but does not include:
(i) Farm tractors or farm vehicles as defined in RCW 46.04.180
and
46.04.181, unless the farm tractor or farm vehicle is for use in the production of cannabis;
(ii) Off-road vehicles as defined in RCW 46.04.365
;
(iii) Nonhighway vehicles as defined in RCW 46.09.310
; and
(iv) Snowmobiles as defined in RCW 46.04.546
.
(b) "Value of the motor vehicle" means the fair market value of the motor vehicle. In the case of a leased motor vehicle in which the consumer is required to make periodic lease payments, "value of the motor vehicle" means the fair market value of the motor vehicle at the inception of the lease.
[
2025 c 417 s 203
.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2025 c 417 ss 203, 204, 207, and 208:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to sections 203, 204, 207, and 208 of this act." [
2025 c 417 s 206
.]
Effective date
—
2025 c 417 ss 104, 105, 107-110, 201-206, 301-303, 604, and 903:
See note following RCW 46.17.355
.
Findings
—
Intent
—
2025 c 417:
See note following RCW 82.38.030
.
RCW 82.08.820
Exemptions
—
Remittance
—
Warehouse and grain elevators and distribution centers
—
Material-handling and racking equipment
—
Construction of warehouse or elevator
—
Information sheet
—
Rules
—
Records
—
Exceptions.
(1) Wholesalers or third-party warehousers who own or operate warehouses or grain elevators and retailers who own or operate distribution centers, and who have paid the tax levied by RCW 82.08.020
on:
(a) Material-handling and racking equipment, and labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the equipment; or
(b) Construction of a warehouse or grain elevator, including materials, and including service and labor costs,
are eligible for an exemption in the form of a remittance. The amount of the remittance is computed under subsection (3) of this section and is based on the state share of sales tax.
(2) For purposes of this section and RCW 82.12.820
:
(a) "Agricultural products" has the meaning given in RCW 82.04.213
;
(b) "Construction" means the actual construction of a warehouse or grain elevator that did not exist before the construction began. "Construction" includes expansion if the expansion adds at least two hundred thousand square feet of additional space to an existing warehouse or additional storage capacity of at least one million bushels to an existing grain elevator. "Construction" does not include renovation, remodeling, or repair;
(c) "Department" means the department of revenue;
(d) "Distribution center" means a warehouse that is used exclusively by a retailer solely for the storage and distribution of finished goods to retail outlets of the retailer. "Distribution center" does not include a warehouse at which retail sales occur;
(e) "Finished goods" means tangible personal property intended for sale by a retailer or wholesaler. "Finished goods" does not include:
(i) Agricultural products stored by wholesalers, third-party warehouses, or retailers if the storage takes place on the land of the person who produced the agricultural product;
(ii) Logs, minerals, petroleum, gas, or other extracted products stored as raw materials or in bulk; or
(iii) Cannabis, useable cannabis, or cannabis-infused products;
(f) "Grain elevator" means a structure used for storage and handling of grain in bulk;
(g) "Material-handling equipment and racking equipment" means equipment in a warehouse or grain elevator that is primarily used to handle, store, organize, convey, package, or repackage finished goods. The term includes tangible personal property with a useful life of one year or more that becomes an ingredient or component of the equipment, including repair and replacement parts. The term does not include equipment in offices, lunchrooms, restrooms, and other like space, within a warehouse or grain elevator, or equipment used for nonwarehousing purposes. "Material-handling equipment" includes but is not limited to: Conveyers, carousels, lifts, positioners, pick-up-and-place units, cranes, hoists, mechanical arms, and robots; mechanized systems, including containers that are an integral part of the system, whose purpose is to lift or move tangible personal property; and automated handling, storage, and retrieval systems, including computers that control them, whose purpose is to lift or move tangible personal property; and forklifts and other off-the-road vehicles that are used to lift or move tangible personal property and that cannot be operated legally on roads and streets. "Racking equipment" includes, but is not limited to, conveying systems, chutes, shelves, racks, bins, drawers, pallets, and other containers and storage devices that form a necessary part of the storage system;
(h) "Person" has the meaning given in RCW 82.04.030
;
(i) "Retailer" means a person who makes "sales at retail" as defined in chapter
82.04
RCW of tangible personal property;
(j) "Square footage" means the product of the two horizontal dimensions of each floor of a specific warehouse. The entire footprint of the warehouse must be measured in calculating the square footage, including space that juts out from the building profile such as loading docks. "Square footage" does not mean the aggregate of the square footage of more than one warehouse at a location or the aggregate of the square footage of warehouses at more than one location;
(k) "Third-party warehouser" means a person taxable under RCW 82.04.280
(1)(d);
(l) "Warehouse" means an enclosed building or structure in which finished goods are stored. A warehouse building or structure may have more than one storage room and more than one floor. Office space, lunchrooms, restrooms, and other space within the warehouse and necessary for the operation of the warehouse are considered part of the warehouse as are loading docks and other such space attached to the building and used for handling of finished goods. Landscaping and parking lots are not considered part of the warehouse. A storage yard is not a warehouse, nor is a building in which manufacturing takes place; and
(m) "Wholesaler" means a person who makes "sales at wholesale" as defined in chapter
82.04
RCW of tangible personal property, but "wholesaler" does not include a person who makes sales exempt under RCW 82.04.330
.
(3)(a) A person claiming an exemption from state tax in the form of a remittance under this section must pay the tax imposed by RCW 82.08.020
. The buyer may then apply to the department for remittance of all or part of the tax paid under RCW 82.08.020
. For grain elevators with bushel capacity of one million but less than two million, the remittance is equal to fifty percent of the amount of tax paid. For warehouses with square footage of two hundred thousand or more and for grain elevators with bushel capacity of two million or more, the remittance is equal to one hundred percent of the amount of tax paid for qualifying construction, materials, service, and labor, and fifty percent of the amount of tax paid for qualifying material-handling equipment and racking equipment, and labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the equipment.
(b) The department must determine eligibility under this section based on information provided by the buyer and through audit and other administrative records. The buyer must on a quarterly basis submit an information sheet, in a form and manner as required by the department by rule, specifying the amount of exempted tax claimed and the qualifying purchases or acquisitions for which the exemption is claimed. The buyer must retain, in adequate detail to enable the department to determine whether the equipment or construction meets the criteria under this section: Invoices; proof of tax paid; documents describing the material-handling equipment and racking equipment; location and size of warehouses and grain elevators; and construction invoices and documents.
(c) The department must on a quarterly basis remit exempted amounts to qualifying persons who submitted applications during the previous quarter.
(4) Warehouses, grain elevators, and material-handling equipment and racking equipment for which an exemption, credit, or deferral has been or is being received under chapter
82.60, 82.62, or
82.63
RCW or RCW 82.08.02565
or
82.12.02565
are not eligible for any remittance under this section. Warehouses and grain elevators upon which construction was initiated before May 20, 1997, are not eligible for a remittance under this section.
(5) The lessor or owner of a warehouse or grain elevator is not eligible for a remittance under this section unless the underlying ownership of the warehouse or grain elevator and the material-handling equipment and racking equipment vests exclusively in the same person, or unless the lessor by written contract agrees to pass the economic benefit of the remittance to the lessee in the form of reduced rent payments.
[
2022 c 16 s 153
;
2014 c 140 s 23
;
2011 c 174 s 206
; (2011 c 174 s 205 expired July 1, 2012);
2006 c 354 s 12
; (2006 c 354 s 11 expired July 1, 2012);
2005 c 513 s 11
;
1997 c 450 s 2
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
2011 c 174 s 206:
"Section 206 of this act takes effect July 1, 2012." [
2011 c 174 s 501
.]
Expiration date
—
2011 c 174 s 205:
"Section 205 of this act expires July 1, 2012." [
2011 c 174 s 502
.]
Expiration date
—
2006 c 354 s 11:
"Section 11 of this act expires July 1, 2012." [
2006 c 354 s 20
.]
Effective dates
—
2006 c 354:
See note following RCW 82.04.4268
.
Effective dates
—
2005 c 513:
See note following RCW 82.04.4266
.
Findings
—
Intent
—
1997 c 450:
"The legislature finds that the state's overall economic health and prosperity is bolstered through tax incentives targeted to specific industries. The warehouse and distribution industry is critical to other businesses. The transportation sector, the retail sector, the ports, and the wholesalers all rely on the warehouse and distribution industry. It is the intent of the legislature to stimulate interstate trade by providing tax incentives to those persons in the warehouse and distribution industry engaged in highly competitive trade." [
1997 c 450 s 1
.]
Report
—
1997 c 450:
"The legislative fiscal committees shall report to the legislature by December 1, 2001, on the economic impacts of this act. This report shall analyze employment and other relevant economic data pertaining to the tax exemptions authorized under this act and shall measure the effect on the creation or retention of family-wage jobs and diversification of the state's economy. The report must include the committee's findings on the tax incentive program's performance in achieving its goals and recommendations on ways to improve its effectiveness. Analytic techniques may include, but not be limited to, comparisons of Washington to other states that did not enact business tax changes, comparisons across Washington counties based on usage of the tax exemptions, and comparisons across similar firms based on their use of the tax exemptions. In performing the analysis, the legislative fiscal committees shall consult with business and labor interests. The department of revenue, the employment security department, and other agencies shall provide to the legislative fiscal committees such data as the legislative fiscal committees may request in performing the analysis required under this section." [
1997 c 450 s 6
.]
Effective date
—
1997 c 450:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 20, 1997]." [
1997 c 450 s 7
.]
RCW 82.08.830
Exemptions
—
Sales at camp or conference center by nonprofit organization.
The tax levied by RCW 82.08.020
shall not apply to a sale made at a camp or conference center if the gross income from the sale is exempt under RCW 82.04.363
.
[
1997 c 388 s 2
.]
NOTES:
Effective date
—
1997 c 388:
See note following RCW 82.04.363
.
RCW 82.08.832
Exemptions
—
Sales of gun safes.
(1) The tax levied by RCW 82.08.020
does not apply to sales of gun safes.
(2) As used in this section and RCW 82.12.832, "gun safe" means an enclosure specifically designed or modified for the purpose of storing a firearm and equipped with a padlock, key lock, combination lock, or similar locking device which, when locked, prevents the unauthorized use of the firearm.
[
1998 c 178 s 1
.]
NOTES:
Effective date
—
1998 c 178:
"This act takes effect July 1, 1998." [
1998 c 178 s 3
.]
RCW 82.08.833
Exemptions
—
Sales or transfers of firearms
—
Unlicensed persons
—
Background check requirements.
The tax imposed by RCW 82.08.020
does not apply to the sale or transfer of any firearms between two unlicensed persons if the unlicensed persons have complied with all background check requirements of chapter
9.41
RCW.
[
2015 c 1 s 10
(Initiative Measure No. 594, approved November 4, 2014).]
NOTES:
Finding
—
2015 c 1 (Initiative Measure No. 594):
See note following RCW 9.41.010
.
RCW 82.08.834
Exemptions
—
Sales/leasebacks by regional transit authorities.
The tax levied by RCW 82.08.020
does not apply to lease amounts paid by a seller/lessee to a lessor under a sale/leaseback agreement under RCW 81.112.300
in respect to tangible personal property, used by the seller/lessee, or to the purchase amount paid by the lessee pursuant to an option to purchase at the end of the lease term, but only if the seller/lessee previously paid any tax otherwise due under this chapter or chapter
82.12
RCW at the time of acquisition of the tangible personal property.
[
2000 2nd sp.s. c 4 s 21
.]
NOTES:
Findings
—
Construction
—
2000 2nd sp.s. c 4 ss 18-30:
See notes following RCW 81.112.300
.
RCW 82.08.850
Exemptions
—
Conifer seed.
(1) The tax levied by RCW 82.08.020
does not apply to the sale of conifer seed that is immediately placed into freezer storage operated by the seller and is: (a) Used for growing timber outside Washington; or (b) sold to an Indian tribe or member and is to be used for growing timber in Indian country. This section applies only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files. For the purposes of this section, "Indian country" has the meaning given in RCW 82.24.010
.
(2) If a buyer of conifer seed is normally engaged in growing timber both within and outside Washington and is not able to determine at the time of purchase whether the seed acquired, or the seedlings germinated from the seed acquired, will be used for growing timber within or outside Washington, the buyer may defer payment of the sales tax until it is determined that the seed, or seedlings germinated from the seed, will be planted for growing timber in Washington. A buyer that does not pay sales tax on the purchase of conifer seed and subsequently determines that the sale did not qualify for the tax exemption must remit to the department the amount of sales tax that would have been paid at the time of purchase.
(3) A buyer who pays retail sales tax on the purchase of conifer seed and subsequently determines that the sale qualifies for the tax exemption provided in this section is entitled to a deduction on the buyer's tax return equal to the cost to the buyer of the purchased seed. The deduction is allowed only if the buyer keeps and preserves records that show from whom the seed was purchased, the date of the purchase, the amount of the purchase, and the tax that was paid.
[
2001 c 129 s 2
.]
NOTES:
Finding
—
Intent
—
2001 c 129:
"The legislature finds that in-state sellers of conifer seed and persons growing customer-owned conifer seed into seedlings are placed at a marketplace disadvantage compared to persons doing the same activity out of state because of the unique storage and growing requirements of conifer seed. It is the intent of the legislature to eliminate this disadvantage by providing a limited sales tax exemption for the sale of conifer seed to be used to grow timber outside Washington, or sold to an Indian tribe or member to grow timber in Indian country, if upon sale the seed is immediately placed into freezer storage operated by the seller." [
2001 c 129 s 1
.]
Retroactive application
—
2001 c 129:
"This act applies retroactively." [
2001 c 129 s 4
.]
RCW 82.08.855
Exemptions
—
Replacement parts for qualifying farm machinery and equipment.
(1) The tax levied by RCW 82.08.020
does not apply to the sale to an eligible farmer of:
(a) Replacement parts for qualifying farm machinery and equipment;
(b) Labor and services rendered in respect to the installing of replacement parts; and
(c) Labor and services rendered in respect to the repairing of qualifying farm machinery and equipment, provided that during the course of repairing no tangible personal property is installed, incorporated, or placed in, or becomes an ingredient or component of, the qualifying farm machinery and equipment other than replacement parts.
(2)(a) Notwithstanding anything to the contrary in this chapter, if a single transaction involves services that are not exempt under this section and services that would be exempt under this section if provided separately, the exemptions provided in subsection (1)(b) and (c) of this section apply if: (i) The seller makes a separately itemized charge for labor and services described in subsection (1)(b) or (c) of this section; and (ii) the separately itemized charge does not exceed the seller's usual and customary charge for such services.
(b) If the requirements in (a)(i) and (ii) of this subsection (2) are met, the exemption provided in subsection (1)(b) or (c) of this section applies to the separately itemized charge for labor and services described in subsection (1)(b) or (c) of this section.
(3)(a) A purchaser claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. Sellers making tax-exempt sales under this section must obtain an exemption certificate from the purchaser in a form and manner prescribed by the department. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement. The seller must retain a copy of the certificate or the data elements for the seller's files.
(b)(i) For a person who is an eligible farmer as defined in subsection (4)(b)(iv) of this section, the exemption is conditioned upon:
(A) The eligible farmer having gross sales or a harvested value of agricultural products grown, raised, or produced by that person or gross sales of bee pollination services of at least ten thousand dollars in the first full tax year in which the person engages in business as a farmer; or
(B) The eligible farmer, during the first full tax year in which that person engages in business as a farmer, growing, raising, or producing agricultural products or bee pollination services having an estimated value at any time during that year of at least ten thousand dollars, if the person will not sell or harvest an agricultural product or bee pollination service during the first full tax year in which the person engages in business as a farmer.
(ii) If a person fails to meet the condition provided in (b)(i)(A) or (B) of this subsection, the person must repay any taxes exempted under this section. Any taxes for which an exemption under this section was claimed are due and payable to the department within thirty days of the end of the first full tax year in which the person engages in business as a farmer. The department must assess interest on the taxes for which the exemption was claimed as provided in chapter
82.32
RCW, retroactively to the date the exemption was claimed, and accrues until the taxes for which the exemption was claimed are paid. Penalties may not be imposed on any tax required to be paid under this subsection (3) (b)(ii) if full payment is received by the due date.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Agricultural products" has the meaning provided in RCW 82.04.213
.
(b) "Eligible farmer" means:
(i) A farmer as defined in RCW 82.04.213
whose gross sales or harvested value of agricultural products grown, raised, or produced by that person or gross sales of bee pollination services was at least ten thousand dollars for the immediately preceding tax year;
(ii) A farmer as defined in RCW 82.04.213
whose agricultural products had an estimated value of at least ten thousand dollars for the immediately preceding tax year, if the person did not sell or harvest an agricultural product or bee pollination service during that year;
(iii) A farmer as defined in RCW 82.04.213
who has merely changed identity or the form of ownership of an entity that was an eligible farmer, where there was no change in beneficial ownership, and the combined gross sales, harvested value, or estimated value of agricultural products or bee pollination services by both entities met the requirements of (b)(i) or (ii) of this subsection for the immediately preceding tax year;
(iv) A farmer as defined in RCW 82.04.213
who does not meet the definition of "eligible farmer" in (b)(i), (ii), or (iii) of this subsection, and who did not engage in farming for the entire immediately preceding tax year, because the farmer is either new to farming or newly returned to farming; or
(v) Anyone who otherwise meets the definition of "eligible farmer" in this subsection except that they are not a "person" as defined in RCW 82.04.030
.
(c) "Farm vehicle" has the same meaning as in RCW 46.04.181
.
(d) "Harvested value" means the number of units of the agricultural product that were grown, raised, or produced, multiplied by the average sales price of the agricultural product. For purposes of this subsection (4)(d), "average sales price" means the average price per unit of agricultural product received by farmers in this state as reported by the United States department of agriculture's national agricultural statistics service for the twelve-month period that coincides with, or that ends closest to, the end of the relevant tax year, regardless of whether the prices are subject to revision. If the price per unit of an agricultural product received by farmers in this state is not available from the national agricultural statistics service, average sales price may be determined by using the average price per unit of agricultural product received by farmers in this state as reported by a recognized authority for the agricultural product.
(e) "Qualifying farm machinery and equipment" means machinery and equipment used primarily by an eligible farmer for growing, raising, or producing agricultural products, providing bee pollination services, or both. "Qualifying farm machinery and equipment" does not include:
(i) Vehicles as defined in RCW 46.04.670, other than farm tractors as defined in RCW 46.04.180, farm vehicles, and other farm implements. For purposes of this subsection (4)(e)(i), "farm implement" means machinery or equipment manufactured, designed, or reconstructed for agricultural purposes and used primarily by an eligible farmer to grow, raise, or produce agricultural products, but does not include lawn tractors and all-terrain vehicles;
(ii) Aircraft;
(iii) Hand tools and hand-powered tools; and
(iv) Property with a useful life of less than one year.
(f)(i) "Replacement parts" means those parts that replace an existing part, or which are essential to maintain the working condition, of a piece of qualifying farm machinery or equipment.
(ii) Paint, fuel, oil, hydraulic fluids, antifreeze, and similar items are not replacement parts except when installed, incorporated, or placed in qualifying farm machinery and equipment during the course of installing replacement parts as defined in (f)(i) of this subsection or making repairs as described in subsection (1)(c) of this section.
(g) "Tax year" means the period for which a person files its federal income tax return, irrespective of whether the period represents a calendar year, fiscal year, or some other consecutive twelve-month period. If a person is not required to file a federal income tax return, "tax year" means a calendar year.
[
2015 3rd sp.s. c 6 s 1106
;
2014 c 97 s 601
;
2007 c 332 s 1
;
2006 c 172 s 1
.]
NOTES:
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
Tax preference intended to be permanent
—
2015 3rd sp.s. c 6 ss 1102-1106:
See notes following RCW 82.04.330
.
Effective date
—
2006 c 172:
"This act takes effect July 1, 2006." [
2006 c 172 s 3
.]
RCW 82.08.865
Exemptions
—
Diesel, biodiesel, and aircraft fuel for farm fuel users.
(1) The tax levied by RCW 82.08.020
does not apply to sales of diesel fuel, biodiesel fuel, or aircraft fuel, to a farm fuel user for agricultural purposes. This exemption applies to a fuel blend if all of the component fuels of the blend would otherwise be exempt under this subsection if the component fuels were sold as separate products. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.
(2) The definitions in RCW 82.04.213
and this subsection apply to this section.
(a)(i) "Agricultural purposes" means the performance of activities directly related to the growing, raising, or producing of agricultural products.
(ii) "Agricultural purposes" does not include: (A) Heating space for human habitation or water for human consumption; or (B) transporting on public roads individuals, agricultural products, farm machinery or equipment, or other tangible personal property, except when the transportation is incidental to transportation on private property and the fuel used for such transportation is not subject to tax under chapter
82.38
RCW.
(b) "Aircraft fuel" is defined as provided in RCW 82.42.010
.
(c) "Biodiesel fuel" is defined as provided in RCW 19.112.010
.
(d) "Diesel fuel" is defined as provided in 26 U.S.C. 4083, as amended or renumbered as of January 1, 2006.
(e) "Farm fuel user" means: (i) A farmer; or (ii) a person who provides horticultural services for farmers, such as soil preparation services, crop cultivation services, and crop harvesting services.
[
2010 c 106 s 218
;
2007 c 443 s 1
;
2006 c 7 s 1
.]
NOTES:
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Effective date
—
2007 c 443:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 11, 2007]." [
2007 c 443 s 3
.]
Effective date
—
2006 c 7:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 6, 2006]." [
2006 c 7 s 3
.]
Additional sales tax exemption for motor vehicle and special fuel: RCW 82.08.0255
.
RCW 82.08.870
Exemptions
—
Motorcycles for training programs.
The tax levied by RCW 82.08.020
does not apply to sales of motorcycles purchased for use in a motorcycle operator training and education program created under RCW 46.20.520
.
[
2001 c 285 s 2
.]
RCW 82.08.875
Exemptions
—
Automotive adaptive equipment.
(Expires July 1, 2028.)
(1) The tax imposed by RCW 82.08.020
does not apply to sales to eligible purchasers of prescribed add-on automotive adaptive equipment, including charges incurred for labor and services rendered in respect to the installation and repairing of such equipment. The exemption provided in this section only applies if the eligible purchaser is reimbursed in whole or part for the purchase by the United States department of veterans affairs or other federal agency, and the reimbursement is paid directly by that federal agency to the seller.
(2) Sellers making tax-exempt sales under this section must:
(a) Obtain an exemption certificate from the eligible purchaser in a form and manner prescribed by the department. The seller must retain a copy of the exemption certificate for the seller's files. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement;
(b) File their tax return with the department electronically; and
(c) Report their total gross sales on their return and deduct the exempt sales under subsection (1) of this section from their reported gross sales.
(3) For purposes of this section, the following definitions apply unless the context clearly requires otherwise:
(a) "Add-on automotive adaptive equipment" means equipment installed in, and modifications made to, a motor vehicle that are necessary to assist physically challenged persons to enter, exit, or safely operate a motor vehicle. The term includes but is not limited to wheelchair lifts, wheelchair restraints, ramps, under vehicle lifts, power door openers, power seats, lowered floors, raised roofs, raised doors, hand controls, left foot gas pedals, chest and shoulder harnesses, parking brake extensions, dual battery systems, steering devices, reduced and zero effort steering and braking, voice-activated controls, and digital driving systems. The term does not include motor vehicles and equipment installed in a motor vehicle by the manufacturer of the motor vehicle.
(b) "Eligible purchaser" means a veteran, or member of the armed forces serving on active duty, who is disabled, regardless of whether the disability is service connected as that term is defined by federal statute 38 U.S.C. Sec. 101, as amended, as of January 1, 2018.
(c) "Prescribed add-on automotive adaptive equipment" means add-on automotive adaptive equipment prescribed by a physician.
(4) This section expires July 1, 2028.
[
2018 c 130 s 3
;
2013 c 211 s 2
.]
NOTES:
Findings
—
Intent
—
2018 c 130:
"(1) The legislature finds that it is important to recognize the service of active duty military and veterans and to acknowledge the continued sacrifice of those veterans who have been catastrophically injured. The legislature further finds that:
(a) Many disabled veterans often need customized, accessible transportation to be self-sufficient and to maintain a high quality of life;
(b) Individuals with a severe disability are twice as likely to be at or below the national poverty level;
(c) The federal government pays for the cost of add-on automotive adaptive equipment for severely injured veterans; however, it does not cover the cost of sales or use tax owed on this equipment and that this cost is then shifted onto the veterans, who often times cannot afford the tax due to the substantial amount of adaptive equipment required in such customized vehicles; and
(d) This added financial burden has the unintended effect of causing some veterans to acquire their adaptive equipment in neighboring states that do not impose a sales tax, thereby negatively impacting Washington businesses providing mobility enhancing equipment and services to Washington veterans.
(2) It is the legislature's intent to provide specific financial relief for severely injured veterans and to ameliorate a negative consequence of Washington's tax structure by providing a sales and use tax exemption for adaptive equipment required to customize vehicles for disabled veterans." [
2018 c 130 s 1
.]
Tax preference performance statement
—
2018 c 130:
"(1) This section is the tax preference performance statement for the tax preferences contained in chapter 130, Laws of 2018. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes the tax preferences in chapter 130, Laws of 2018 as ones intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(3) To measure the effectiveness of chapter 130, Laws of 2018 in achieving the specific public policy objective described in section 1, chapter 130, Laws of 2018, the joint legislative audit and review committee must, at minimum, review the following:
(a) The dollar amount of qualifying add-on automotive adaptive equipment purchases, as reported to the department of revenue; and
(b) The number of approved applications for add-on automotive adaptive equipment, as reported by the United States department of veterans affairs.
(4) In addition to the data sources described under this section, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under this section.
(5) The joint legislative audit and review committee must review the tax preferences provided in chapter 130, Laws of 2018 as part of its normal review process of tax preferences." [
2018 c 130 s 2
.]
Findings
—
Intent
—
2013 c 211:
"(1) The legislature finds that it is important to recognize the service of active duty military and veterans and to acknowledge the continued sacrifice of those veterans who have been catastrophically injured. The legislature further finds that many disabled veterans often need customized, accessible transportation to be self-sufficient and to maintain a high quality of life. The legislature further finds that individuals with a severe disability are three times more likely to be at or below the national poverty level. The legislature further finds that the federal government pays for the cost of mobility adaptive equipment for severely injured veterans; however, it does not cover the cost of sales or use tax owed on this equipment. The legislature further finds that this cost is then shifted onto the veterans, who oftentimes cannot afford the tax due to the substantial amount of adaptive equipment required in such customized vehicles. The legislature further finds that this added financial burden has the unintended effect of causing some veterans to acquire their mobility adaptive equipment in neighboring states that do not impose a sales tax, thereby negatively impacting Washington businesses providing mobility enhancing equipment and services to Washington veterans.
(2) It is the legislature's intent to provide specific financial relief for severely injured veterans and to ameliorate a negative consequence of Washington's tax structure by providing a sales and use tax exemption for mobility adaptive equipment required to customize vehicles for disabled veterans. It is the further intent of the legislature to reexamine this exemption in five years to determine whether it has mitigated the competitive disadvantage stemming from Washington's tax structure on mobility businesses and to assess whether the cost of the exemption in terms of forgone state revenue is beyond what was reasonably assumed in the fiscal estimate for the legislation." [
2013 c 211 s 1
.]
Effective date
—
2013 c 211:
"This act takes effect August 1, 2013." [
2013 c 211 s 4
.]
RCW 82.08.880
Exemptions
—
Animal pharmaceuticals.
(1) The tax levied by RCW 82.08.020
does not apply to sales to farmers or to veterinarians of animal pharmaceuticals approved by the United States department of agriculture or by the United States food and drug administration, if the pharmaceutical is to be administered to an animal that is raised by a farmer for the purpose of producing for sale an agricultural product.
(2) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) For the purposes of this section and RCW 82.12.880, the following definitions apply:
(a) "Farmer" and "agricultural product" mean the same as in RCW 82.04.213
.
(b) "Veterinarian" means a person who is licensed to practice veterinary medicine, surgery, or dentistry under chapter
18.92
RCW.
[
2001 2nd sp.s. c 17 s 1
.]
NOTES:
Effective date
—
2001 2nd sp.s. c 17:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect August 1, 2001." [
2001 2nd sp.s. c 17 s 3
.]
RCW 82.08.890
Exemptions
—
Qualifying livestock nutrient management equipment and facilities.
(1) The tax levied by RCW 82.08.020
does not apply to sales to eligible persons of:
(a) Qualifying livestock nutrient management equipment;
(b) Labor and services rendered in respect to installing, repairing, cleaning, altering, or improving qualifying livestock nutrient management equipment; and
(c)(i) Labor and services rendered in respect to repairing, cleaning, altering, or improving of qualifying livestock nutrient management facilities, or to tangible personal property that becomes an ingredient or component of qualifying livestock nutrient management facilities in the course of repairing, cleaning, altering, or improving of such facilities.
(ii) The exemption provided in this subsection (1)(c) does not apply to the sale of or charge made for: (A) Labor and services rendered in respect to the constructing of new, or replacing previously existing, qualifying livestock nutrient management facilities; or (B) tangible personal property that becomes an ingredient or component of qualifying livestock nutrient management facilities during the course of constructing new, or replacing previously existing, qualifying livestock nutrient management facilities.
(2) The exemption provided in subsection (1) of this section applies to sales made after the livestock nutrient management plan is: (a) Certified under chapter
90.64
RCW; (b) approved as part of the permit issued under chapter
90.48
RCW; or (c) approved as required under subsection (4)(c)(iii) of this section.
(3)(a) The department of agriculture must provide a list of eligible persons, as defined in subsection (4)(c)(i) and (ii) of this section, to the department of revenue upon request. Conservation districts must maintain lists of eligible persons as defined in subsection (4)(c)(iii) of this section to allow the department of revenue to verify eligibility.
(b) A purchaser claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. Sellers making tax-exempt sales under this section must obtain an exemption certificate from the purchaser in a form and manner prescribed by the department. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement. The seller must retain a copy of the certificate or the data elements for the seller's files.
(4) The definitions in this subsection apply to this section and RCW 82.12.890
unless the context clearly requires otherwise:
(a) "Animal feeding operation" means a lot or facility, other than an aquatic animal production facility, where the following conditions are met:
(i) Animals, other than aquatic animals, have been, are, or will be stabled or confined and fed or maintained for a total of forty-five days or more in any twelve-month period; and
(ii) Crops, vegetation, forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility.
(b) "Conservation district" means a subdivision of state government organized under chapter
89.08
RCW.
(c) "Eligible person" means a person: (i) Licensed to produce milk under chapter
15.36
RCW who has a certified dairy nutrient management plan, as required by chapter
90.64
RCW; (ii) who owns an animal feeding operation and has a permit issued under chapter
90.48
RCW; or (iii) who owns an animal feeding operation and has a nutrient management plan approved by a conservation district as meeting natural resource conservation service field office technical guide standards and who qualifies for the exemption provided under RCW 82.08.855
.
(d) "Handling and treatment of livestock manure" means the activities of collecting, storing, moving, or transporting livestock manure, separating livestock manure solids from liquids, or applying livestock manure to the agricultural lands of an eligible person other than through the use of pivot or linear type traveling irrigation systems.
(e) "Permit" means either a state waste discharge permit or a national pollutant discharge elimination system permit, or both.
(f) "Qualifying livestock nutrient management equipment" means the following tangible personal property for exclusive use in the handling and treatment of livestock manure, including repair and replacement parts for such equipment: (i) Aerators; (ii) agitators; (iii) augers; (iv) conveyers; (v) gutter cleaners; (vi) hard-hose reel traveler irrigation systems; (vii) lagoon and pond liners and floating covers; (viii) loaders; (ix) manure composting devices; (x) manure spreaders; (xi) manure tank wagons; (xii) manure vacuum tanks; (xiii) poultry house cleaners; (xiv) poultry house flame sterilizers; (xv) poultry house washers; (xvi) poultry litter saver machines; (xvii) pipes; (xviii) pumps; (xix) scrapers; (xx) separators; (xxi) slurry injectors and hoses; and (xxii) wheelbarrows, shovels, and pitchforks.
(g) "Qualifying livestock nutrient management facilities" means the following structures and facilities for exclusive use in the handling and treatment of livestock manure: (i) Flush systems; (ii) lagoons; (iii) liquid livestock manure storage structures, such as concrete tanks or glass-lined steel tanks; and (iv) structures used solely for the dry storage of manure, including roofed stacking facilities.
(5) The exemption under this section does not apply to sales made from July 1, 2010, through June 30, 2013.
[
2014 c 97 s 602
;
2010 1st sp.s. c 23 s 601
;
2009 c 469 s 601
;
2006 c 151 s 2
;
2001 2nd sp.s. c 18 s 2
.]
NOTES:
Effective date
—
2010 1st sp.s. c 23 ss 107, 601, 602, 702, 902, 1202, and 1401-1405:
See note following RCW 82.04.2907
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2009 c 469:
See note following RCW 82.08.962
.
Effective date
—
2006 c 151:
"This act takes effect July 1, 2006." [
2006 c 151 s 7
.]
Intent
—
2001 2nd sp.s. c 18:
"It is the intent of the legislature to provide tax exemptions to assist dairy farmers to comply with the dairy nutrient management act, chapter
90.64
RCW, to encourage owners of nondairy animal feeding operations to develop and implement approved nutrient management plans, and to assist public or private entities to establish and operate anaerobic digesters to treat livestock nutrients on a regional or on-farm basis." [
2006 c 151 s 1
;
2001 2nd sp.s. c 18 s 1
.]
Effective date
—
2001 2nd sp.s. c 18:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [July 13, 2001]." [
2001 2nd sp.s. c 18 s 6
.]
RCW 82.08.900
Exemptions
—
Anaerobic digesters.
(1) The tax levied by RCW 82.08.020
does not apply to sales to an eligible person:
(a) In respect to equipment necessary to process biogas from a landfill into marketable coproducts, including but not limited to biogas conditioning, compression, and electrical generation equipment, or to services rendered in respect to installing, constructing, repairing, cleaning, altering, or improving equipment necessary to process biogas from a landfill into marketable coproducts; and
(b) Establishing or operating an anaerobic digester or to services rendered in respect to installing, constructing, repairing, cleaning, altering, or improving an anaerobic digester, or to sales of tangible personal property that becomes an ingredient or component of the anaerobic digester.
(2) A person claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. Sellers may make tax exempt sales under this section only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) The definitions in this subsection apply to this section and RCW 82.12.900
unless the context clearly requires otherwise:
(a) "Anaerobic digester" means a facility that processes organic material into biogas and digestate using microorganisms in a decomposition process within a closed, oxygen-free container as well as the equipment necessary to process biogas or digestate produced by an anaerobic digester into marketable coproducts, including but not limited to biogas conditioning, compression, nutrient recovery, and electrical generation equipment.
(b) "Eligible person" means any person establishing or operating an anaerobic digester or landfill or processing biogas from an anaerobic digester or landfill into marketable coproducts.
[
2018 c 164 s 4
;
2015 c 86 s 202
;
2006 c 151 s 4
;
2001 2nd sp.s. c 18 s 4
.]
NOTES:
Reviser's note:
The tax preference enacted in section 4, chapter 164, Laws of 2018 expires January 1, 2029, pursuant to the automatic expiration date established in RCW 82.32.805
(1)(a).
Tax preference performance statement
—
2018 c 164:
"This section is the tax preference performance statement for the tax preferences contained in sections [3,] 4, 6, 8, and 9, chapter 164, Laws of 2018. The performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes the tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808
(2)(a).
(2) It is the legislature's specific public policy objective to increase the production of renewable natural gas in Washington state. It is the legislature's intent to reinstate and expand tax incentives for certain landfills and anaerobic digesters in order to stimulate investment in biogas capture and conditioning, compression, nutrient recovery, and use of renewable natural gas for heating, electricity generation, and transportation fuel.
(3) To measure the effectiveness of the tax preferences in sections [3,] 4, 6, 8, and 9, chapter 164, Laws of 2018 in achieving the public policy objectives described in subsection (2) of this section, the joint legislative audit and review committee must evaluate the number of public and private landfills and anaerobic digesters producing renewable natural gas in the state and the extent to which they are utilizing these incentives.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the department of revenue must provide data needed for the joint legislative audit and review committee analysis. In addition to the data source described under this subsection, the joint legislative audit and review committee may use any other data it deems necessary." [
2018 c 164 s 1
.]
Effective date
—
2018 c 164:
"This act takes effect July 1, 2018." [
2018 c 164 s 10
.]
Effective date
—
Conservation commission
—
Report to legislature
—
2006 c 151:
See notes following RCW 82.08.890
.
Intent
—
Effective date
—
2001 2nd sp.s. c 18:
See notes following RCW 82.08.890
.
RCW 82.08.910
Exemptions
—
Propane or natural gas to heat chicken structures.
(1) The tax levied by RCW 82.08.020
does not apply to sales to farmers of propane or natural gas used to heat structures used to house chickens. The propane or natural gas must be used exclusively to heat the structures. The structures must be used exclusively to house chickens that are sold as agricultural products.
(2) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) The definitions in this subsection apply to this section and RCW 82.12.910
.
(a) "Structures" means barns, sheds, and other similar buildings in which chickens are housed.
(b) "Farmer" has the same meaning as provided in RCW 82.04.213
.
(c) "Agricultural product" has the same meaning as provided in RCW 82.04.213
.
[
2001 2nd sp.s. c 25 s 3
.]
NOTES:
Purpose
—
Intent
—
Part headings not law
—
2001 2nd sp.s. c 25:
See notes following RCW 82.04.260
.
RCW 82.08.920
Exemptions
—
Chicken bedding materials.
(1) The tax levied by RCW 82.08.020
does not apply to sales to a farmer of bedding materials used to accumulate and facilitate the removal of chicken manure. The farmer must be raising chickens that are sold as agricultural products.
(2) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) The definitions in this subsection apply to this section and RCW 82.12.920
.
(a) "Bedding materials" means wood shavings, straw, sawdust, shredded paper, and other similar materials.
(b) "Farmer" has the same meaning as provided in RCW 82.04.213
.
(c) "Agricultural product" has the same meaning as provided in RCW 82.04.213
.
[
2001 2nd sp.s. c 25 s 5
.]
NOTES:
Purpose
—
Intent
—
Part headings not law
—
2001 2nd sp.s. c 25:
See notes following RCW 82.04.260
.
RCW 82.08.925
Exemptions
—
Dietary supplements.
The tax levied by RCW 82.08.020
shall not apply to sales of dietary supplements for human use dispensed or to be dispensed to patients, pursuant to a prescription. "Dietary supplement" has the same meaning as in RCW 82.08.0293
.
[
2003 c 168 s 302
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.08.935
Exemptions
—
Disposable devices used to deliver prescription drugs for human use.
The tax levied by RCW 82.08.020
shall not apply to sales of disposable devices used or to be used to deliver drugs for human use, pursuant to a prescription. "Disposable devices used to deliver drugs" means single use items such as syringes, tubing, or catheters.
[
2003 c 168 s 404
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.08.940
Exemptions
—
Over-the-counter drugs for human use.
The tax levied by RCW 82.08.020
shall not apply to sales of over-the-counter drugs for human use dispensed or to be dispensed to patients, pursuant to a prescription. "Over-the-counter drug" has the same meaning as in RCW 82.08.0281
.
[
2003 c 168 s 405
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.08.945
Exemptions
—
Kidney dialysis devices.
The tax levied by RCW 82.08.020
shall not apply to sales of kidney dialysis devices, including repair and replacement parts, for human use pursuant to a prescription. In addition, the tax levied by RCW 82.08.020
shall not apply to charges made for labor and services rendered in respect to the repairing, cleaning, altering, or improving of kidney dialysis devices.
[
2004 c 153 s 110
;
2003 c 168 s 410
.]
NOTES:
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.08.950
Exemptions
—
Steam, electricity, electrical energy.
The tax levied by RCW 82.08.020
shall not apply to sales of steam, electricity, or electrical energy.
[
2003 c 168 s 703
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.08.956
Exemptions
—
Hog fuel used to generate electricity, steam, heat, or biofuel.
(Expires June 30, 2034.)
(1) The tax levied by RCW 82.08.020
does not apply to sales of hog fuel used to produce electricity, steam, heat, or biofuel. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(2) For the purposes of this section the following definitions apply:
(a) "Hog fuel" means wood waste and other wood residuals including forest derived biomass. "Hog fuel" does not include firewood or wood pellets; and
(b) "Biofuel" means a liquid or gaseous fuel derived from organic matter intended for use as a transportation fuel including, but not limited to, biodiesel, renewable diesel, ethanol, renewable natural gas, and renewable propane.
(3) If a taxpayer who claimed an exemption under this section closes a facility in Washington for which employment positions were reported under RCW 82.32.605, resulting in a loss of jobs located within the state, the department must declare the amount of the tax exemption claimed under this section for the previous two calendar years to be immediately due.
(4) This section expires June 30, 2034.
[
2023 c 341 s 2
;
2021 c 145 s 11
;
2013 2nd sp.s. c 13 s 1002
;
2009 c 469 s 301
.]
NOTES:
Tax preference performance statement
—
2023 c 341 ss 2 and 3:
"(1) This section is the tax preference performance statement for the tax preferences contained in sections 2 and 3, chapter 341, Laws of 2023. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808
(2)(a).
(3) It is the legislature's specific public policy objective to extend the expiration date of these tax preferences in order to increase the ability of beneficiary facilities to provide at least 75 percent of their employees with medical and dental insurance and a retirement plan. For the purposes of this tax preference performance statement, retirement plans may include defined benefit plans, defined contribution plans, or an employee investment plan whereby the employer offers a contribution to the employee plan.
(4) In order to obtain the data necessary to measure the effectiveness of these tax preferences in achieving the public policy objective described in subsection (3) of this section, the joint legislative audit and review committee may refer to:
(a) The annual tax performance report that a taxpayer is required to file with the department of revenue per RCW 82.32.605
; and
(b) Employment data available from the employment security department." [
2023 c 341 s 5
.]
Intent
—
2023 c 341:
"It is the intent of the legislature to retain and grow family wage jobs in rural, economically distressed areas; to promote healthy forests; and to utilize Washington's abundant natural resources to promote diversified renewable energy use in the state." [
2023 c 341 s 1
.]
Intent
—
2013 2nd sp.s. c 13:
"It is the intent of the legislature to retain and grow family-wage jobs in rural, economically distressed areas; to promote healthy forests; and to utilize Washington's abundant natural resources to promote diversified renewable energy use in the state." [
2013 2nd sp.s. c 13 s 1001
.]
Effective date
—
2013 2nd sp.s. c 13:
"Parts III, X, XV, and XVI of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2013." [
2013 2nd sp.s. c 13 s 1903
.]
Effective date
—
2009 c 469:
See note following RCW 82.08.962
.