RCW 82.08.010
Definitions.
For the purposes of this chapter:
(1)(a)(i) "Selling price" includes "sales price." "Sales price" means the total amount of consideration, except separately stated trade-in property of like kind, including cash, credit, property, and services, for which tangible personal property, extended warranties, digital goods, digital codes, digital automated services, or other services or anything else defined as a "retail sale" under RCW 82.04.050
are sold, leased, or rented, valued in money, whether received in money or otherwise. Except as otherwise provided in this subsection (1), no deduction from the total amount of consideration is allowed for the following: (A) The seller's cost of the property sold; (B) the cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller; (C) charges by the seller for any services necessary to complete the sale, other than delivery and installation charges; (D) delivery charges; and (E) installation charges.
(ii) When tangible personal property is rented or leased under circumstances that the consideration paid does not represent a reasonable rental for the use of the articles so rented or leased, the "selling price" must be determined as nearly as possible according to the value of such use at the places of use of similar products of like quality and character under such rules as the department may prescribe;
(b) "Selling price" or "sales price" does not include: Discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale; interest, financing, and carrying charges from credit extended on the sale of tangible personal property, extended warranties, digital goods, digital codes, digital automated services, or other services or anything else defined as a retail sale in RCW 82.04.050, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser; and any taxes legally imposed directly on the consumer, or collected from the consumer pursuant to RCW 35.87A.010
(2)(b), that are separately stated on the invoice, bill of sale, or similar document given to the purchaser;
(c) "Selling price" or "sales price" includes consideration received by the seller from a third party if:
(i) The seller actually receives consideration from a party other than the purchaser, and the consideration is directly related to a price reduction or discount on the sale;
(ii) The seller has an obligation to pass the price reduction or discount through to the purchaser;
(iii) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and
(iv) One of the criteria in this subsection (1)(c)(iv) is met:
(A) The purchaser presents a coupon, certificate, or other documentation to the seller to claim a price reduction or discount where the coupon, certificate, or documentation is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate, or documentation is presented;
(B) The purchaser identifies himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount, however a "preferred customer" card that is available to any patron does not constitute membership in such a group; or
(C) The price reduction or discount is identified as a third party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate, or other documentation presented by the purchaser;
(2)(a)(i) "Seller" means every person, including the state and its departments and institutions, making sales at retail or retail sales to a buyer, purchaser, or consumer, whether as agent, broker, or principal, except as otherwise provided in this subsection (2).
(ii) "Seller" includes marketplace facilitators, whether making sales in their own right or facilitating sales on behalf of marketplace sellers.
(b)(i) "Seller" does not include:
(A) The state and its departments and institutions when making sales to the state and its departments and institutions; or
(B) A professional employer organization when a covered employee coemployed with the client under the terms of a professional employer agreement engages in activities that constitute a sale at retail that is subject to the tax imposed by this chapter. In such cases, the client, and not the professional employer organization, is deemed to be the seller and is responsible for collecting and remitting the tax imposed by this chapter.
(ii) For the purposes of this subsection (2)(b), the terms "client," "covered employee," "professional employer agreement," and "professional employer organization" have the same meanings as in RCW 82.04.540
;
(3) "Buyer," "purchaser," and "consumer" include, without limiting the scope hereof, every individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, municipal corporation, quasi municipal corporation, and also the state, its departments and institutions and all political subdivisions thereof, irrespective of the nature of the activities engaged in or functions performed, and also the United States or any instrumentality thereof;
(4) "Delivery charges" means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating, and packing;
(5) "Direct mail" means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items are not billed directly to the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. "Direct mail" does not include multiple items of printed material delivered to a single address;
(6) The meaning attributed in chapter
82.04
RCW to the terms "tax year," "taxable year," "person," "company," "sale," "sale at wholesale," "wholesale," "business," "engaging in business," "cash discount," "successor," "consumer," "in this state," "within this state," "cannabis," "useable cannabis," and "cannabis-infused products" applies equally to the provisions of this chapter;
(7) For the purposes of the taxes imposed under this chapter and under chapter
82.12
RCW, "tangible personal property" means personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. Tangible personal property includes electricity, water, gas, steam, and prewritten computer software;
(8) "Extended warranty" has the same meaning as in RCW 82.04.050
(7);
(9) The definitions in RCW 82.04.192
apply to this chapter;
(10) For the purposes of the taxes imposed under this chapter and chapter
82.12
RCW, whenever the terms "property" or "personal property" are used, those terms must be construed to include digital goods and digital codes unless:
(a) It is clear from the context that the term "personal property" is intended only to refer to tangible personal property;
(b) It is clear from the context that the term "property" is intended only to refer to tangible personal property, real property, or both; or
(c) To construe the term "property" or "personal property" as including digital goods and digital codes would yield unlikely, absurd, or strained consequences; and
(11) "Retail sale" or "sale at retail" means any sale, lease, or rental for any purpose other than for resale, sublease, or subrent.
(12) The terms "agriculture," "farming," "horticulture," "horticultural," and "horticultural product" may not be construed to include or relate to cannabis, useable cannabis, or cannabis-infused products unless the applicable term is explicitly defined to include cannabis, useable cannabis, or cannabis-infused products.
(13)(a) "Affiliated person" means a person that, with respect to another person:
(i) Has an ownership interest of more than five percent, whether direct or indirect, in the other person; or
(ii) Is related to the other person because a third person, or group of third persons who are affiliated persons with respect to each other, holds an ownership interest of more than five percent, whether direct or indirect, in the related persons.
(b) For purposes of this subsection (13):
(i) "Ownership interest" means the possession of equity in the capital, the stock, or the profits of the other person; and
(ii) An indirect ownership interest in a person is an ownership interest in an entity that has an ownership interest in the person or in an entity that has an indirect ownership interest in the person.
(14) "Marketplace" means a physical or electronic place, including, but not limited to, a store, a booth, an internet website, a catalog or a dedicated sales software application, where tangible personal property, digital codes and digital products, or services are offered for sale.
(15)(a) "Marketplace facilitator" means a person that:
(i) Contracts with sellers to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the seller's products through a marketplace owned or operated by the person;
(ii) Engages directly or indirectly, through one or more affiliated persons, in transmitting or otherwise communicating the offer or acceptance between the buyer and seller. For purposes of this subsection, mere advertising does not constitute transmitting or otherwise communicating the offer or acceptance between the buyer and seller; and
(iii) Engages directly or indirectly, through one or more affiliated persons, in any of the following activities with respect to the seller's products:
(A) Payment processing services;
(B) Fulfillment or storage services;
(C) Listing products for sale;
(D) Setting prices;
(E) Branding sales as those of the marketplace facilitator;
(F) Taking orders; or
(G) Providing customer service or accepting or assisting with returns or exchanges.
(b)(i) "Marketplace facilitator" does not include:
(A) A person who provides internet advertising services, including listing products for sale, so long as the person does not also engage in the activity described in (a)(ii) of this subsection (15) in addition to any of the activities described in (a)(iii) of this subsection (15); or
(B) A person with respect to the provision of travel agency services or the operation of a marketplace or that portion of a marketplace that enables consumers to purchase transient lodging accommodations in a hotel or other commercial transient lodging facility.
(ii) The exclusion in this subsection (15)(b) does not apply to a marketplace or that portion of a marketplace that facilitates the retail sale of transient lodging accommodations in homes, apartments, cabins, or other residential dwelling units.
(iii) For purposes of this subsection (15)(b), the following definitions apply:
(A) "Hotel" has the same meaning as in RCW 19.48.010
.
(B) "Travel agency services" means arranging or booking, for a commission, fee or other consideration, vacation or travel packages, rental car or other travel reservations or accommodations, tickets for domestic or foreign travel by air, rail, ship, bus, or other medium of transportation, or hotel or other lodging accommodations.
(16) "Marketplace seller" means a seller that makes retail sales through any marketplace operated by a marketplace facilitator, regardless of whether the seller is required to be registered with the department under RCW 82.32.030
.
(17) "Remote seller" means any seller, including a marketplace facilitator, who does not have a physical presence in this state and makes retail sales to purchasers or facilitates retail sales on behalf of marketplace sellers.
[
2022 c 16 s 144
;
2021 c 225 s 3
;
2019 c 8 s 105
;
2014 c 140 s 11
;
2010 c 106 s 210
;
2009 c 535 s 303
;
2007 c 6 s 1302
; (2007 c 6 s 1301 expired July 1, 2008);
2006 c 301 s 2
;
2005 c 514 s 110
;
2004 c 153 s 406
;
2003 c 168 s 101
;
1985 c 38 s 3
;
1985 c 2 s 2
(Initiative Measure No. 464, approved November 6, 1984);
1983 1st ex.s. c 55 s 1
;
1967 ex.s. c 149 s 18
;
1963 c 244 s 1
;
1961 c 15 s 82.08.010
. Prior: (i)
1945 c 249 s 4
;
1943 c 156 s 6
;
1941 c 178 s 8
;
1939 c 225 s 7
;
1935 c 180 s 17
; Rem. Supp. 1945 s 8370-17. (ii)
1935 c 180 s 20
; RRS s 8370-20.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Retroactive application
—
Effective date
—
2021 c 225:
See notes following RCW 35.87A.010
.
Effective date
—
2019 c 8 ss 105, 301, 302, 401, and 704:
"Sections 105, 301, 302, 401, and 704 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, 2019." [
2019 c 8 s 805
.]
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
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
.
Expiration date
—
2007 c 6 s 1301:
"Section 1301 of this act expires July 1, 2008." [
2007 c 6 s 1706
.]
Effective date
—
Act does not affect application of Title
50
or
51
RCW
—
2006 c 301:
See notes following RCW 82.32.710
.
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
.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
2003 c 168:
"Sections 101 through 104, 201 through 216, 401 through 412, 501, 502, 601 through 604, 701 through 704, 801, 901, and 902 of this act take effect July 1, 2004. Sections 301 through 305 of this act take effect January 1, 2004." [
2003 c 168 s 903
.]
Part headings not law
—
2003 c 168:
"Part headings used in this act are not any part of the law." [
2003 c 168 s 901
.]
Purpose
—
1985 c 2:
"The purpose of this initiative is to reduce the amount on which sales tax is paid by excluding the trade-in value of certain property from the amount taxable." [
1985 c 2 s 1
(Initiative Measure No. 464, approved November 6, 1984).]
Effective dates
—
1983 1st ex.s. c 55:
"This 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 July 1, 1983, except that section 12 of this act shall take effect January 1, 1984, and shall be effective for property taxes levied in 1983, and due in 1984, and thereafter." [
1983 1st ex.s. c 55 s 13
.]
RCW 82.08.011
Retail car rental
—
Definition.
For purposes of this chapter, "retail car rental" means renting a rental car, as defined in RCW 46.04.465, to a consumer.
[
1992 c 194 s 2
.]
NOTES:
Effective dates
—
1992 c 194:
See note following RCW 46.04.466
.
RCW 82.08.015
Construction
—
Chapter applicable to state registered domestic partnerships
—
2009 c 521.
For the purposes of this chapter, the terms spouse, marriage, marital, husband, wife, widow, widower, next of kin, and family shall be interpreted as applying equally to state registered domestic partnerships or individuals in state registered domestic partnerships as well as to marital relationships and married persons, and references to dissolution of marriage shall apply equally to state registered domestic partnerships that have been terminated, dissolved, or invalidated, to the extent that such interpretation does not conflict with federal law. Where necessary to implement chapter 521, Laws of 2009, gender-specific terms such as husband and wife used in any statute, rule, or other law shall be construed to be gender neutral, and applicable to individuals in state registered domestic partnerships.
[
2009 c 521 s 189
.]
RCW 82.08.020
Tax imposed
—
Retail sales
—
Retail car rental.
(Effective until January 1, 2026.)
(1) There is levied and collected a tax equal to six and five-tenths percent of the selling price on each retail sale in this state of:
(a) Tangible personal property, unless the sale is specifically excluded from the RCW 82.04.050
definition of retail sale;
(b) Digital goods, digital codes, and digital automated services, if the sale is included within the RCW 82.04.050
definition of retail sale;
(c) Services, other than digital automated services, included within the RCW 82.04.050
definition of retail sale;
(d) Extended warranties to consumers; and
(e) Anything else, the sale of which is included within the RCW 82.04.050
definition of retail sale.
(2) There is levied and collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(4) For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include:
(a) 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;
(b) Off-road vehicles as defined in RCW 46.04.365
;
(c) Nonhighway vehicles as defined in RCW 46.09.310
; and
(d) Snowmobiles as defined in RCW 46.04.546
.
(5) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section must be dedicated to funding comprehensive performance audits required under RCW 43.09.470
. The revenue identified in this subsection must be deposited in the performance audits of government account created in RCW 43.09.475
.
(6) Beginning July 1, 2027, the portion of taxes collected by the state under subsection (1) of this section equal to 0.1 percent of the selling price on each retail sale in this state must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(7) The taxes imposed under this chapter apply to successive retail sales of the same property.
(8) The rates provided in this section apply to taxes imposed under chapter
82.12
RCW as provided in RCW 82.12.020
.
[
2025 c 418 s 3
;
2022 c 16 s 145
; (2020 c 1 s 7 repealed by 2024 c 232 s 7);
2016 c 1 s 2
(Initiative Measure No. 1366, approved November 3, 2015);
2014 c 140 s 12
;
2011 c 171 s 120
;
2010 c 106 s 212
; (2010 c 106 s 211 expired January 1, 2011); (2009 c 469 s 802 expired January 1, 2011);
2006 c 1 s 3
(Initiative Measure No. 900, approved November 8, 2005);
2003 c 361 s 301
;
2000 2nd sp.s. c 4 s 1
;
1998 c 321 s 36
(Referendum Bill No. 49, approved November 3, 1998);
1992 c 194 s 9
;
1985 c 32 s 1
. Prior:
1983 2nd ex.s. c 3 s 62
;
1983 2nd ex.s. c 3 s 41
;
1983 c 7 s 6
;
1982 1st ex.s. c 35 s 1
;
1981 2nd ex.s. c 8 s 1
;
1977 ex.s. c 324 s 2
; 1975-'76 2nd ex.s. c 130 s 1;
1971 ex.s. c 281 s 9
;
1969 ex.s. c 262 s 31
;
1967 ex.s. c 149 s 19
;
1965 ex.s. c 173 s 13
;
1961 c 293 s 6
;
1961 c 15 s 82.08.020
; prior:
1959 ex.s. c 3 s 5
;
1955 ex.s. c 10 s 2
;
1949 c 228 s 4
;
1943 c 156 s 5
;
1941 c 76 s 2
;
1939 c 225 s 10
;
1935 c 180 s 16
; Rem. Supp. 1949 s 8370-16.]
NOTES:
Reviser's note:
The Washington state supreme court ruled in
Lee v. State
, 185 Wn.2d 608, 374 P.3d 157 (2016) that Initiative Measure No. 1366 (chapter 1, Laws of 2016) is in violation of the single-subject rule of Article II, section 19 of the state Constitution and is therefore void in its entirety. This section is published without the amendment contained in Initiative Measure No. 1366.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Contingent effective date
—
2016 c 1 s 2
(Initiative Measure No. 1366):
"(1) Section 2 of this act takes effect April 15, 2016, unless the contingency in subsection (2) of this section occurs.
(2) If the legislature, prior to April 15, 2016, refers to the ballot for a vote a constitutional amendment requiring two-thirds legislative approval or voter approval to raise taxes as defined by voter-approved Initiatives 960, 1053, and 1185 and section 6 of this act and majority legislative approval for fee increases as required by voter-approved Initiatives 960, 1053, and 1185 and codified in RCW 43.135.055
and further defined by subsection (a) of this section, section 2 of this act expires on April 14, 2016.
(a) [(3)] "Majority legislative approval for fee increases" means only the legislature may set a fee increase's amount and must list it in a bill so it can be subject to the ten-year cost projection and other accountability procedures required by RCW 43.135.031
." [2016 c 1 s 3 (Initiative Measure No. 1366, approved November 3, 2015).]
Intent
—
Effective date
—
2011 c 171:
See notes following RCW 4.24.210
.
Effective date
—
2010 c 106 s 212:
"Section 212 of this act takes effect January 1, 2011." [
2010 c 106 s 409
.]
Expiration date
—
2010 c 106 s 211:
"Section 211 of this act expires January 1, 2011." [
2010 c 106 s 408
.]
Expiration date
—
2009 c 469 s 802:
"Section 802 of this act expires January 1, 2011." [
2009 c 469 s 904
.]
Effective date
—
2009 c 469 ss 801 and 802:
"Sections 801 and 802 of this act take effect August 1, 2009." [
2009 c 469 s 903
.]
Short title
—
Effective date
—
2006 c 1 (Initiative Measure No. 900):
See RCW 43.09.471
.
Policies and purposes
—
Construction
—
Severability
—
Part headings not law
—
2006 c 1 (Initiative Measure No. 900):
See notes following RCW 43.09.470
.
Effective dates
—
2003 c 361:
"Sections 301 through 602 of this act take effect July 1, 2003, and sections 201 and 202 of this act take effect August 1, 2003." [
2003 c 361 s 703
.]
Findings
—
2003 c 361:
See note following RCW 82.38.030
.
Application
—
2000 2nd sp.s. c 4 s 1:
"Section 1 of this act applies to taxes collected on and after December 31, 1999." [
2000 2nd sp.s. c 4 s 34
.]
Effective date
—
2000 2nd sp.s. c 4 ss 1-3, 20:
"Sections 1 through 3 and 20 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 immediately [May 2, 2000]." [
2000 2nd sp.s. c 4 s 35
.]
Purpose
—
Severability
—
1998 c 321:
See notes following RCW 82.14.045
.
Contingent effective dates
—
1998 c 321 ss 23-42:
See note following RCW 35.58.410
.
Legislative intent
—
1992 c 194:
"The legislature intends to exempt rental cars from state and local motor vehicle excise taxes, and to impose additional sales and use taxes in lieu thereof. These additional sales and use taxes are intended to provide as much revenue to the funds currently receiving motor vehicle excise tax revenue, including the transportation funds and the general fund, as each fund would have received if the motor vehicle excise tax exemptions had not been enacted. Revenues from these additional sales and use taxes are intended to be distributed in the same manner as the motor vehicle excise tax revenues they replace." [
1992 c 194 s 4
.]
Effective dates
—
1992 c 194:
See note following RCW 46.04.466
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Construction
—
1983 c 7:
"This act shall not be construed as affecting any existing right acquired, or liability or obligation incurred under the sections amended in this act, nor any rule, regulation, or order adopted, nor any proceeding instituted, under those sections." [
1983 c 7 s 34
.]
Severability
—
1983 c 7:
"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." [
1983 c 7 s 35
.]
Effective dates
—
1983 c 7:
"This 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 March 1, 1983, except as follows:
(1) Sections 9 through 22, and 25 through 31 of this act shall take effect June 30, 1983.
(2) Sections 23 and 24 of this act shall take effect January 1, 1984, for taxes first due in 1984 and thereafter.
The department of revenue and the department of licensing shall immediately take necessary steps to ensure that all sections of this act are properly implemented on their effective dates. The additional taxes and tax rate changes imposed under this act shall take effect on the dates designated in this act notwithstanding the date this act becomes law under Article III, section 12 of the state Constitution." [
1983 c 7 s 37
.]
Severability
—
1982 1st ex.s. c 35:
"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." [
1982 1st ex.s. c 35 s 47
.]
Effective dates
—
Expiration date
—
1982 1st ex.s. c 35:
"This 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 immediately, except that sections 28, 29, and 30 of this act shall take effect on May 1, 1982, sections 33 and 34 of this act shall take effect on July 1, 1983, and sections 35 through 38 of this act shall take effect on January 1, 1983.
Sections 28 and 29 of this act shall expire on July 1, 1983. The additional taxes imposed under this act shall take effect on the dates designated in this act notwithstanding the date this act becomes law under Article III, section 12 of the state Constitution." [
1982 1st ex.s. c 35 s 48
.]
Effective date
—
1975-'76 2nd ex.s. c 130:
"This 1976 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 immediately: PROVIDED, That the provisions of this 1976 amendatory act shall be null and void in the event chapter . . . (*Substitute Senate Bill No. 2778), Laws of 1975-'76 2nd ex. sess. is approved and becomes law." [1975-'76 2nd ex.s. c 130 s 4.]
*Reviser's note:
"Substitute Senate Bill No. 2778" failed to become law.
High capacity transportation systems
—
Sales and use tax: RCW 81.104.170
.
Manufacturers, study: 1994 c 66.
PDF
RCW 82.08.020
Tax imposed
—
Retail sales
—
Retail car rental
—
Recreational vessels.
(Effective January 1, 2026.)
(1) There is levied and collected a tax equal to six and five-tenths percent of the selling price on each retail sale in this state of:
(a) Tangible personal property, unless the sale is specifically excluded from the RCW 82.04.050
definition of retail sale;
(b) Digital goods, digital codes, and digital automated services, if the sale is included within the RCW 82.04.050
definition of retail sale;
(c) Services, other than digital automated services, included within the RCW 82.04.050
definition of retail sale;
(d) Extended warranties to consumers; and
(e) Anything else, the sale of which is included within the RCW 82.04.050
definition of retail sale.
(2)(a) There is levied and collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to:
(i) Eleven and nine-tenths percent of the selling price from January 1, 2026, through December 31, 2026; and
(ii)(A) Nine and nine-tenths percent of the selling price beginning January 1, 2027.
(B) The revenue collected under (a) of this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(b)(i) Beginning January 1, 2027, there is levied and collected an additional tax on peer-to-peer car sharing transactions equal to the selling price multiplied by the rate of tax imposed under (a) of this subsection. This subsection (2)(b) applies only to peer-to-peer car sharing transactions where the vehicle owner obtained the shared vehicle as a vehicle for resale using a reseller permit or an approved exemption certificate under RCW 82.04.470
. The revenue collected under this subsection (2)(b) must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(ii) For purposes of this subsection (2)(b), "peer-to-peer car sharing" has the same meaning as in RCW 46.74A.010
. "Peer-to-peer car sharing" does not mean:
(A) "Retail car rental" as defined in RCW 82.08.011
; or
(B) "Rental car" as defined in RCW 46.04.465
or
48.115.005
.
(3) There is levied and collected an additional tax of five-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(4)(a) Beginning July 1, 2026, in addition to taxes required under this chapter and chapters
82.12
and
82.49
RCW, there is levied and collected an additional tax of five-tenths of one percent on the selling price, plus trade-in property of like kind, for purchased recreational vessels.
(b) In the case of a lease requiring periodic payments, the tax is imposed on the fair market value of the recreational vessel at the inception of the lease.
(c) The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(d) For purposes of this subsection, "recreational vessel" means a vessel as defined in RCW 88.02.310
that is subject to watercraft excise tax under chapter
82.49
RCW.
(5) For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include:
(a) 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;
(b) Off-road vehicles as defined in RCW 46.04.365
;
(c) Nonhighway vehicles as defined in RCW 46.09.310
; and
(d) Snowmobiles as defined in RCW 46.04.546
.
(6) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section must be dedicated to funding comprehensive performance audits required under RCW 43.09.470
. The revenue identified in this subsection must be deposited in the performance audits of government account created in RCW 43.09.475
.
(7) Beginning July 1, 2027, the portion of taxes collected by the state under subsection (1) of this section equal to 0.1 percent of the selling price on each retail sale in this state must be deposited in the multimodal transportation account created in RCW 47.66.070
.
(8) The taxes imposed under this chapter apply to successive retail sales of the same property.
(9) The rates provided in this section apply to taxes imposed under chapter
82.12
RCW as provided in RCW 82.12.020
.
[
2025 c 418 s 3
;
2025 c 417 s 201
;
2022 c 16 s 145
; (2020 c 1 s 7 repealed by 2024 c 232 s 7);
2016 c 1 s 2
(Initiative Measure No. 1366, approved November 3, 2015);
2014 c 140 s 12
;
2011 c 171 s 120
;
2010 c 106 s 212
; (2010 c 106 s 211 expired January 1, 2011); (2009 c 469 s 802 expired January 1, 2011);
2006 c 1 s 3
(Initiative Measure No. 900, approved November 8, 2005);
2003 c 361 s 301
;
2000 2nd sp.s. c 4 s 1
;
1998 c 321 s 36
(Referendum Bill No. 49, approved November 3, 1998);
1992 c 194 s 9
;
1985 c 32 s 1
. Prior:
1983 2nd ex.s. c 3 s 62
;
1983 2nd ex.s. c 3 s 41
;
1983 c 7 s 6
;
1982 1st ex.s. c 35 s 1
;
1981 2nd ex.s. c 8 s 1
;
1977 ex.s. c 324 s 2
; 1975-'76 2nd ex.s. c 130 s 1;
1971 ex.s. c 281 s 9
;
1969 ex.s. c 262 s 31
;
1967 ex.s. c 149 s 19
;
1965 ex.s. c 173 s 13
;
1961 c 293 s 6
;
1961 c 15 s 82.08.020
; prior:
1959 ex.s. c 3 s 5
;
1955 ex.s. c 10 s 2
;
1949 c 228 s 4
;
1943 c 156 s 5
;
1941 c 76 s 2
;
1939 c 225 s 10
;
1935 c 180 s 16
; Rem. Supp. 1949 s 8370-16.]
NOTES:
Reviser's note:
(1) The Washington state supreme court ruled in
Lee v. State
, 185 Wn.2d 608, 374 P.3d 157 (2016) that Initiative Measure No. 1366 (chapter 1, Laws of 2016) is in violation of the single-subject rule of Article II, section 19 of the state Constitution and is therefore void in its entirety. This section is published without the amendment contained in Initiative Measure No. 1366.
(2) This section was amended by 2025 c 417 s 201 and by 2025 c 418 s 3, 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).
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
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Contingent effective date
—
2016 c 1 s 2
(Initiative Measure No. 1366):
"(1) Section 2 of this act takes effect April 15, 2016, unless the contingency in subsection (2) of this section occurs.
(2) If the legislature, prior to April 15, 2016, refers to the ballot for a vote a constitutional amendment requiring two-thirds legislative approval or voter approval to raise taxes as defined by voter-approved Initiatives 960, 1053, and 1185 and section 6 of this act and majority legislative approval for fee increases as required by voter-approved Initiatives 960, 1053, and 1185 and codified in RCW 43.135.055
and further defined by subsection (a) of this section, section 2 of this act expires on April 14, 2016.
(a) [(3)] "Majority legislative approval for fee increases" means only the legislature may set a fee increase's amount and must list it in a bill so it can be subject to the ten-year cost projection and other accountability procedures required by RCW 43.135.031
." [2016 c 1 s 3 (Initiative Measure No. 1366, approved November 3, 2015).]
Intent
—
Effective date
—
2011 c 171:
See notes following RCW 4.24.210
.
Effective date
—
2010 c 106 s 212:
"Section 212 of this act takes effect January 1, 2011." [
2010 c 106 s 409
.]
Expiration date
—
2010 c 106 s 211:
"Section 211 of this act expires January 1, 2011." [
2010 c 106 s 408
.]
Expiration date
—
2009 c 469 s 802:
"Section 802 of this act expires January 1, 2011." [
2009 c 469 s 904
.]
Effective date
—
2009 c 469 ss 801 and 802:
"Sections 801 and 802 of this act take effect August 1, 2009." [
2009 c 469 s 903
.]
Short title
—
Effective date
—
2006 c 1 (Initiative Measure No. 900):
See RCW 43.09.471
.
Policies and purposes
—
Construction
—
Severability
—
Part headings not law
—
2006 c 1 (Initiative Measure No. 900):
See notes following RCW 43.09.470
.
Effective dates
—
2003 c 361:
"Sections 301 through 602 of this act take effect July 1, 2003, and sections 201 and 202 of this act take effect August 1, 2003." [
2003 c 361 s 703
.]
Findings
—
2003 c 361:
See note following RCW 82.38.030
.
Application
—
2000 2nd sp.s. c 4 s 1:
"Section 1 of this act applies to taxes collected on and after December 31, 1999." [
2000 2nd sp.s. c 4 s 34
.]
Effective date
—
2000 2nd sp.s. c 4 ss 1-3, 20:
"Sections 1 through 3 and 20 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 immediately [May 2, 2000]." [
2000 2nd sp.s. c 4 s 35
.]
Purpose
—
Severability
—
1998 c 321:
See notes following RCW 82.14.045
.
Contingent effective dates
—
1998 c 321 ss 23-42:
See note following RCW 35.58.410
.
Legislative intent
—
1992 c 194:
"The legislature intends to exempt rental cars from state and local motor vehicle excise taxes, and to impose additional sales and use taxes in lieu thereof. These additional sales and use taxes are intended to provide as much revenue to the funds currently receiving motor vehicle excise tax revenue, including the transportation funds and the general fund, as each fund would have received if the motor vehicle excise tax exemptions had not been enacted. Revenues from these additional sales and use taxes are intended to be distributed in the same manner as the motor vehicle excise tax revenues they replace." [
1992 c 194 s 4
.]
Effective dates
—
1992 c 194:
See note following RCW 46.04.466
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Construction
—
1983 c 7:
"This act shall not be construed as affecting any existing right acquired, or liability or obligation incurred under the sections amended in this act, nor any rule, regulation, or order adopted, nor any proceeding instituted, under those sections." [
1983 c 7 s 34
.]
Severability
—
1983 c 7:
"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." [
1983 c 7 s 35
.]
Effective dates
—
1983 c 7:
"This 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 March 1, 1983, except as follows:
(1) Sections 9 through 22, and 25 through 31 of this act shall take effect June 30, 1983.
(2) Sections 23 and 24 of this act shall take effect January 1, 1984, for taxes first due in 1984 and thereafter.
The department of revenue and the department of licensing shall immediately take necessary steps to ensure that all sections of this act are properly implemented on their effective dates. The additional taxes and tax rate changes imposed under this act shall take effect on the dates designated in this act notwithstanding the date this act becomes law under Article III, section 12 of the state Constitution." [
1983 c 7 s 37
.]
Severability
—
1982 1st ex.s. c 35:
"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." [
1982 1st ex.s. c 35 s 47
.]
Effective dates
—
Expiration date
—
1982 1st ex.s. c 35:
"This 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 immediately, except that sections 28, 29, and 30 of this act shall take effect on May 1, 1982, sections 33 and 34 of this act shall take effect on July 1, 1983, and sections 35 through 38 of this act shall take effect on January 1, 1983.
Sections 28 and 29 of this act shall expire on July 1, 1983. The additional taxes imposed under this act shall take effect on the dates designated in this act notwithstanding the date this act becomes law under Article III, section 12 of the state Constitution." [
1982 1st ex.s. c 35 s 48
.]
Effective date
—
1975-'76 2nd ex.s. c 130:
"This 1976 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 immediately: PROVIDED, That the provisions of this 1976 amendatory act shall be null and void in the event chapter . . . (*Substitute Senate Bill No. 2778), Laws of 1975-'76 2nd ex. sess. is approved and becomes law." [1975-'76 2nd ex.s. c 130 s 4.]
*Reviser's note:
"Substitute Senate Bill No. 2778" failed to become law.
High capacity transportation systems
—
Sales and use tax: RCW 81.104.170
.
Manufacturers, study: 1994 c 66.
RCW 82.08.0201
Rental cars
—
Estimate of tax revenue.
Before January 1, 1994, and January 1st of each odd-numbered year thereafter:
The department of licensing, with the assistance of the department of revenue, must provide the office of financial management and the fiscal committees of the legislature with an updated estimate of the amount of revenue attributable to the taxes imposed in RCW 82.08.020
(2).
[
2020 c 139 s 10
;
1992 c 194 s 10
.]
NOTES:
Effective dates
—
1992 c 194:
See note following RCW 46.04.466
.
RCW 82.08.0202
Retail sales of linen and uniform supply services.
For purposes of this chapter, a retail sale of linen and uniform supply services is deemed to occur at the place of delivery to the customer. "Linen and uniform supply services" means the activity of providing customers with a supply of clean linen, towels, uniforms, gowns, protective apparel, clean room apparel, mats, rugs, and similar items, whether ownership of the item is in the person operating the linen and uniform supply service or in the customer. The term includes supply services operating their own cleaning establishments as well as those contracting with other laundry or dry cleaning businesses.
[
2001 c 186 s 2
.]
NOTES:
Finding
—
Purpose
—
2001 c 186:
"The legislature finds that because of the mixed retailing nature of linen and uniform supply services, they have been incorrectly sited for tax purposes. As a result, some companies that perform some activities related to this activity outside the state of Washington have not been required to collect retail sales taxes upon linen and uniform supply services provided to Washington customers. The activity has aspects of both the rental of tangible personal property and retail services related to tangible personal property. This error in tax treatment provides an incentive for businesses to locate some of their functions out of state. In-state businesses cannot compete if their out-of-state competitors are not required to collect sales tax for services provided to the same customers.
The purpose of this act is to clarify the taxable situs and nature of linen and uniform supply services." [
2001 c 186 s 1
.]
Effective date
—
2001 c 186:
"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, 2001." [
2001 c 186 s 4
.]
RCW 82.08.0203
Exemptions
—
Trail grooming services.
The tax levied by RCW 82.08.020
does not apply to sales of trail grooming services to the state of Washington or nonprofit corporations organized under chapter
24.03A
RCW. For the purposes of this section, "trail grooming" means the activity of snow compacting, snow redistribution, or snow removal on state-owned or privately owned trails.
[
2021 c 176 s 5248
;
2008 c 260 s 1
.]
NOTES:
Effective date
—
2021 c 176:
See note following RCW 24.03A.005
.
RCW 82.08.0205
Exemptions
—
Waste vegetable oil.
(1) The tax levied by RCW 82.08.020
does not apply to sales of waste vegetable oil that is used by a person in the production of biodiesel for personal use.
(2) This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.
(3) For the purposes of this section, the following definitions apply:
(a) "Waste vegetable oil" means used cooking oil gathered from restaurants or commercial food processors; and
(b) "Personal use" means the person does not engage in the business of selling biodiesel at wholesale or retail.
[
2008 c 237 s 2
.]
NOTES:
Effective date
—
2008 c 237:
"This act takes effect July 1, 2008." [
2008 c 237 s 4
.]
RCW 82.08.0206
Credits
—
Working families
—
Eligible low-income persons
—
Penalties.
(Contingent expiration date.)
(1) A working families' tax credit, funded by sales and use tax imposed, is provided to eligible low-income persons for calendar years beginning on or after January 1, 2022. The credit is refundable and is calculated as provided in this section.
(2) For purposes of the credit in this section, the following definitions apply:
(a)(i) "Eligible low-income person" means an individual who:
(A) Is eligible for the credit provided in Title 26 U.S.C. Sec. 32 of the internal revenue code;
(B) Properly files a federal income tax return for the prior federal tax year, and was a Washington resident during the year for which the credit is claimed; and
(C) Has paid either retail sales tax under this chapter or use tax under chapter
82.12
RCW, or both. There is a rebuttable presumption that a person paid either retail sales tax under this chapter or use tax under chapter
82.12
RCW, or both, if they were a Washington resident during the year for which the credit is claimed.
(ii) "Eligible low-income person" also means an individual who meets the requirements provided in (a)(i)(B) of this subsection and would otherwise qualify for the credit provided in Title 26 U.S.C. Sec. 32 of the internal revenue code except that one or any combination of the following conditions apply:
(A) The individual filed a federal income tax return for the prior federal tax year using a valid individual taxpayer identification number in lieu of a social security number, and the individual's spouse, if any, and all qualifying children, if any, have a valid individual taxpayer identification number or a social security number; or
(B) The individual filed their federal income tax return for the prior federal tax year under the married filing separately status. For purposes of the refund provided in this section, the special rule for separated spouse under Title 26 U.S.C. Sec. 32(d)(2)(B) of the internal revenue code does not apply.
(b) "Income" means earned income as defined by Title 26 U.S.C. Sec. 32 of the internal revenue code.
(c) "Individual" means an individual or an individual and that individual's spouse if they file a federal joint income tax return.
(d) "Internal revenue code" means the United States internal revenue code of 1986, as amended, as of June 9, 2022, or such subsequent date as the department may provide by rule consistent with the purpose of this section.
(e) "Maximum qualifying income" means the maximum federally adjusted gross income for the prior federal tax year.
(f) "Qualifying child" means a qualifying child as defined by Title 26 U.S.C. Sec. 32 of the internal revenue code, except the child may have a valid individual taxpayer identification number in lieu of a social security number.
(g) "Washington resident" means an individual who is physically present and residing in this state for at least 183 days. "Washington resident" also includes an individual who is not physically present and residing in this state for at least 183 days but is the spouse of a Washington resident. For purposes of this subsection, "day" means a calendar day or any portion of a calendar day.
(3)(a) Except as provided in (b) and (c) of this subsection, for calendar year 2023 and thereafter, the working families' tax credit refund amount for the prior calendar year is:
(i) $300 for eligible persons with no qualifying children;
(ii) $600 for eligible persons with one qualifying child;
(iii) $900 for eligible persons with two qualifying children; or
(iv) $1,200 for eligible persons with three or more qualifying children.
(b) Except as provided in (f) of this subsection, the refund amounts provided in (a) of this subsection will be reduced, rounded to the nearest dollar, as follows:
(i) For eligible persons with no qualifying children, beginning at $2,500 of income below the federal phase-out income for the prior federal tax year, by 18 percent per additional dollar of income until the minimum credit amount as specified in (c) of this subsection is reached.
(ii) For eligible persons with one qualifying child, beginning at $5,000 of income below the federal phase-out income for the prior federal tax year, by 12 percent per additional dollar of income until the minimum credit amount as specified in (c) of this subsection is reached.
(iii) For eligible persons with two qualifying children, beginning at $5,000 of income below the federal phase-out income for the prior federal tax year, by 15 percent per additional dollar of income until the minimum credit amount as specified in (c) of this subsection is reached.
(iv) For eligible persons with three or more qualifying children, beginning at $5,000 of income below the federal phase-out income for the prior federal tax year, by 18 percent per additional dollar of income until the minimum credit amount as specified in (c) of this subsection is reached.
(c) If the refund for an eligible person as calculated in this section is greater than zero cents, but less than $50, the refund amount is $50.
(d) The refund amounts in this section shall be adjusted for inflation every year beginning January 1, 2024, based upon changes in the consumer price index that are published by November 15th of the previous year for the most recent 12-month period. The adjusted refund amounts must be rounded to the nearest $5.
(e) For purposes of this section, "consumer price index" means, for any 12-month period, the average consumer price index for that 12-month period for the Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.
(f) The percentage rate of remittance reductions in (b) of this subsection must be adjusted every year beginning January 1, 2023, based on calculations by the department that result in the minimum credit being received at the maximum qualifying income level.
(4) The working families' tax credit shall be administered as provided in this subsection.
(a) The refund paid under this section will be paid to eligible filers who apply pursuant to this subsection.
(i) Application must be made to the department in a form and manner determined by the department. If the application process is initially done electronically, the department must provide a paper application upon request. The application must include any information and documentation as required by the department. The department may use the information provided by the individual to calculate the refund amount. Income reported on the application may be rounded to the nearest dollar.
(ii) An individual applying for the credit under this section must keep records necessary for the department to verify eligibility under this section. Any information provided by the individual is subject to audit verification by the department.
(iii) In addition to information provided on the application, the department may verify that an individual qualifies as a Washington resident through the use of automated verification tools or other reasonable means.
(iv)(A) Except as provided in (a)(iv)(B) of this subsection (4), application for a refund under this section must be made in the year following the year for which the federal tax return was filed, but in no case may any refund be provided for any period before January 1, 2022.
(B)(I) A person may apply for any refund for which they were eligible but did not claim under (a)(iv)(A) of this subsection (4) for up to three additional years. A person must complete an application to claim this refund within the three calendar years after the end of the calendar year in which the federal income tax return for that tax year was legally due for federal income tax purposes, without regard to any federal extension.
(II) If a person seeks to increase the amount of a refund that has been made under this subsection (4), the person must apply for the amended refund within the nonclaims period established under RCW 82.32.060
(1).
(v) A person may not claim a credit on behalf of a deceased individual. No individual may claim a credit under this section for any year in a disallowance period under Title 26 U.S.C. Sec. 32(k)(1) of the internal revenue code or for any year for which the individual is ineligible to claim the credit in Title 26 U.S.C. Sec. 32 of the internal revenue code by reason of Title 26 U.S.C. Sec. 32(k)(2) of the internal revenue code.
(b) The department shall protect the privacy and confidentiality of personal data of refund recipients in accordance with chapter
82.32
RCW.
(c) The department shall, in conjunction with other agencies or organizations, design and implement a public information campaign to inform potentially eligible persons of the existence of, and requirements for, the credit provided in this section.
(d) The department must work with the internal revenue service of the United States to administer the credit on an automatic basis as soon as practicable.
(5) Receipt of a refund under this section may not be used in eligibility determinations for any state income support programs or in making public charge determinations.
(6) The department may adopt rules necessary to implement this section. This includes establishing a date by which applications will be accepted, with the aim of accepting applications as soon as possible.
(7) The department must review the application and determine eligibility for the working families' tax credit based on information provided by the applicant and through audit and other administrative records, including, when it deems it necessary, verification through information from the internal revenue service of the United States, other federal agencies, Washington state agencies, third-party entities, or other persons. The department may accept a signed attestation in a form and manner determined by the department from an individual to presumptively validate that an individual meets all the eligibility requirements as provided in this section. The signed attestation is subject to audit verification by the department to validate an individual's eligibility for the working families' tax credit.
(8) If, upon review of internal revenue service data or other information obtained by the department, it appears that an individual received a refund that the individual was not entitled to, or received a larger refund than the individual was entitled to, the department may assess against the individual the overpaid amount. The department may also assess such overpaid amount against the individual's spouse if the refund in question was based on both spouses filing a joint federal income tax return for the year for which the refund was claimed.
(a) Interest as provided under RCW 82.32.050
applies to assessments authorized under this subsection (8) starting six months after the date the department issued the assessment until the amount due under this subsection (8) is paid in full to the department. Except as otherwise provided in this subsection, penalties may not be assessed on amounts due under this subsection.
(b) If an amount due under this subsection is not paid in full by the date due, or the department issues a warrant for the collection of amounts due under this subsection, the department may assess the applicable penalties under RCW 82.32.090
. Penalties under this subsection (8)(b) may not be made due until six months after the department's issuance of the assessment.
(c) If the department finds by clear, cogent, and convincing evidence that an individual knowingly submitted, caused to be submitted, or consented to the submission of, a fraudulent claim for refund under this section, the department must assess a penalty of 50 percent of the overpaid amount. This penalty is in addition to any other applicable penalties assessed in accordance with (b) of this subsection (8).
(9) If, within the period allowed for refunds under RCW 82.32.060, the department finds that an individual received a lesser refund than the individual was entitled to, the department must remit the additional amount due under this section to the individual.
(10) Interest does not apply to refunds provided under this section.
(11) Chapter
82.32
RCW applies to the administration of this section.
[
2024 c 3 s 1
. Prior:
2023 c 456 s 1
;
2023 c 374 s 10
; prior:
2022 c 41 s 1
;
2022 c 33 s 1
;
2021 c 195 s 2
;
2008 c 325 s 2
.]
NOTES:
Retroactive application
—
2024 c 3:
"This act applies both prospectively and retroactively to January 1, 2023." [
2024 c 3 s 2
.]
Automatic expiration date exemption
—
2023 c 456:
"RCW 82.32.805
does not apply to this act." [
2023 c 456 s 4
.]
Effective date
—
2023 c 456:
"This act takes effect January 1, 2024." [
2023 c 456 s 5
.]
Findings
—
Intent
—
2021 c 195:
"(1) Many Washington families do not earn enough annually to keep pace with increasing health care, child care, housing, and other essential expenses.
(2) Amidst rising cost of living across the state, the regressive nature of Washington's tax code puts an additional strain on households already struggling to meet their basic needs. Washington's tax system is the most upside down and regressive in the nation, allowing those who earn the most to pay the least percentage of their income in taxes. As a percentage of household income, low-income Washingtonians, who are disproportionately Black, American Indian and Alaska Native, Latinx, Native Hawaiian and Pacific Islander, and multiracial Washingtonians, pay six times more in taxes than our wealthiest residents.
(3) Eligibility for the working families' tax exemption is based on eligibility for the federal earned income tax credit, a refundable tax credit for working individuals and families whose earnings are below an income threshold. Since its establishment in 1975, the earned income tax credit has increased family income, reduced child poverty, and improved health, educational, and career outcomes for children in low-income families. Taxpayers filing with an individual tax identification number and their families, however, are excluded from receiving the federal credit and its corollary benefits to health and well-being, despite paying local, state, and federal taxes.
(4) Since its establishment in 1975, the earned income tax credit has also had a positive impact on local businesses because it puts more money in the hands of low-income working people who spend the money on immediate needs, such as groceries, transportation, rent, and health care. The credit has been shown to have a multiplier effect to support local businesses, generating an estimated $1.50 to $2.00 in local economic activity for every dollar received by beneficiaries.
(5) Therefore, it is the public policy objective of the legislature to stimulate local economic activity, advance racial equity, and promote economic stability and well-being for lower-income working people, including individual tax identification number filers, by updating and simplifying the structure of the working families' tax exemption." [
2021 c 195 s 1
.]
Automatic expiration date exemption
—
2021 c 195:
"The provisions of RCW 82.32.805
do not apply to this act." [
2021 c 195 s 3
.]
Contingent expiration date
—
Tax preference performance statement
—
2023 c 456 s 1
; 2021 c 195 s 2:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 195, Laws of 2021 and section 1, chapter 456, 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 the preferential tax treatment.
(2) The legislature categorizes this tax preference as one 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 allow low-income and middle-income workers to recover some or all of the sales tax they pay to support state and local government as a way to increase their economic security and to decrease the regressivity of our state tax code. It is the legislature's intent to provide a sales and use tax credit, in the form of a remittance, to low-income and middle-income working families.
(4) The joint legislative audit and review committee shall review this preference in 2028 and every 10 years thereafter. If a review finds that the working families' tax credit does not provide meaningful financial relief to low-income and middle-income households, RCW 82.08.0206
expires at the end of the calendar year two years after the adoption of the final report containing that finding. The joint legislative audit and review committee shall provide written notice of the expiration date of RCW 82.08.0206
to the department of revenue, the chief clerk of the house of representatives, the secretary of the senate, the office of the code reviser, and others as deemed appropriate by the joint legislative audit and review committee. In its review of the program, the joint legislative audit and review committee should use at least the following metrics: Size of the benefit per household, number of household beneficiaries statewide, and demographic information of beneficiaries to include family size, income level, race and ethnicity, and geographic location.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to the remittance data prepared by the department of revenue." [
2023 c 456 s 3
;
2021 c 195 s 4
.]
Findings
—
Intent
—
2008 c 325:
"The legislature finds that many Washington families do not earn enough annually to keep pace with increasing health care, child care, and work-related expenses. Because the state relies so heavily on sales tax revenue, families in Washington with the lowest incomes pay proportionately four or five times as much in state taxes as the most affluent households. The legislature finds that higher-income families are able to recover some of the sales and use taxes that they pay to support state and local government through the federal income tax deduction for sales and use taxes, but that lower-income people, who are not able to itemize, receive no benefit. Therefore, it is the intent of the legislature to provide a sales and use tax exemption, in the form of a remittance, to lower-income working families in Washington, and to use the federal earned income tax credit as a proxy for the amount of sales tax paid." [
2008 c 325 s 1
.]
RCW 82.08.02061
Exemptions
—
Working families
—
Reports to legislature.
(1) The department must assess the implementation of the working families' tax credit in a report to the legislature to identify administrative or resource issues that require legislative action. The department must submit the report to the finance committee of the house of representatives and the ways and means committee of the senate within 18 months of the implementation of the program. The report must also be made available on the public website of the department.
(2) The department must submit a report to the finance committee of the house of representatives and the ways and means committee of the senate on a biennial basis. The report must include relevant data collected from administration of the working families' tax credit, including demographic data. The report must also be made available on the public website of the department. The first report under this subsection is due December 31, 2025, and every two years thereafter.
[
2023 c 456 s 2
;
2014 c 97 s 317
;
2008 c 325 s 3
.]
NOTES:
Automatic expiration date exemption
—
Effective date
—
2023 c 456:
See notes following RCW 82.08.0206
.
Findings
—
Intent
—
2008 c 325:
See note following RCW 82.08.0206
.
RCW 82.08.0207
Exemptions
—
Adapted housing
—
Disabled veterans
—
Construction.
(1) An eligible purchaser who has paid the tax levied by RCW 82.08.020
on materials incorporated into, and labor and services rendered in respect to, adapted housing is eligible for an exemption from all or a portion of those taxes in the form of a remittance. The total amount of a remittance that an eligible purchaser may receive under this section and/or RCW 82.12.0207
is limited to two thousand five hundred dollars for each adapted housing project. The remittance under this section is for the state portion of the sales tax only.
(2)(a) An eligible purchaser claiming an exemption from tax in the form of a remittance under this section must pay the tax imposed by RCW 82.08.020
on such purchases eligible for the remittance. The eligible purchaser may then apply to the department for remittance of all or part of the tax paid under RCW 82.08.020
on such purchases, subject to the limits in subsections (1) and (3) of this section. As part of the application, the eligible purchaser must provide proof of eligibility for the remittance in the form of a copy of the grant award letter from the United States department of veterans affairs, construction contracts for adapted housing, and invoices for purchases qualifying for a remittance under this section.
(b) An eligible purchaser may not apply for more than one remittance under this section per calendar quarter.
(c) The department must on a quarterly basis remit exempted amounts to eligible purchasers whose applications were approved by the department during the previous quarter.
(3)(a) The remittance under this section is only available on a first-in-time basis. The department must keep a running total of all approved remittances under this section and/or RCW 82.12.0207
during each fiscal year. The department may not allow any remittance that would cause the total amount of remittances allowed under this section and/or RCW 82.12.0207
to exceed one hundred twenty-five thousand dollars in any fiscal year, unless additional amounts are appropriated for this specific purpose.
(b) The department must provide notification on its website monthly of the amount remaining before the statewide annual limit in this subsection is reached.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Adapted housing" means a construction project that has been approved by the United States department of veterans affairs as part of the specially adapted housing grant program or the special housing adaptation grant program to modify or construct a home so that it can accommodate the needs of a disabled or severely disabled veteran.
(b) "Eligible purchaser" means a disabled or severely disabled veteran who has received either a specially adapted housing grant or a special housing adaptation grant from the United States department of veterans affairs.
(c) "Special housing adaptation" has the same meaning, eligibility requirements, and restrictions as "special home adaptation grant" in 38 C.F.R. 3.809a, as of July 1, 2016.
(d) "Specially adapted housing" has the same meaning, eligibility requirements, and restrictions as in 38 C.F.R. 3.809, as of July 1, 2016.
[
2017 c 176 s 2
.]
NOTES:
Reviser's note:
The tax preference enacted in section 2, chapter 176, Laws of 2017 expires January 1, 2028, pursuant to the automatic expiration date in RCW 82.32.805
(1)(a).
Findings
—
Intent
—
2017 c 176:
"(1)(a) The legislature finds that it is important to recognize the service of veterans and to acknowledge the continued sacrifice of those veterans who have service-connected physical disabilities. The legislature further finds that many disabled veterans often need customized, accessible housing in order to be self-sufficient and to maintain a high quality of life. The legislature further finds that disabled veterans have higher poverty rates than disabled nonveterans. The legislature further finds that the federal government provides a grant to assist disabled veterans with the costs of constructing, modifying, or adapting their homes, but that thousands of these dollars end up covering the sales or use tax owed on these construction projects. The legislature further finds that this results in a shift of cost to the same population of disabled veterans whose burden the federal grant program is intended to ease.
(b) It is the legislature's intent to provide specific financial relief for disabled veterans by providing a sales and use tax exemption in the form of a remittance for the construction of adapted housing for disabled veterans who have been awarded a federal grant to modify their homes.
(2)(a) This section is the tax preference performance statement for the tax preferences contained in this act. 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.
(b) The legislature categorizes the tax preference in section 2 of this act as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(c) To measure the effectiveness of this act in achieving the specific public policy objective described in subsection (1) of this section, the joint legislative audit and review committee must, at minimum, evaluate the following:
(i) The number of qualifying adapted housing projects, as reported to the department of revenue through the remittance application process on an annual basis; and
(ii) The total amount of adapted housing grants awarded to veterans, as reported by the United States department of veterans affairs.
(d) 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 subsection.
(e) The joint legislative audit and review committee must review the tax preferences provided in this act as part of its normal review process of tax preferences." [
2017 c 176 s 1
.]
Application
—
2017 c 176:
"This act applies to sales or uses that occur on or after August 1, 2017." [
2017 c 176 s 5
.]
RCW 82.08.0208
Exemptions
—
Digital codes.
(1) The tax imposed by RCW 82.08.020
does not apply to the sale of a digital code for one or more digital products if the sale of the digital products to which the digital code relates is exempt from the tax levied by RCW 82.08.020
.
(2)(a) The tax imposed by RCW 82.08.020
does not apply to a business or other organization for the purpose of making the digital good or digital automated service, including a digital good or digital automated service acquired through the use of a digital code, or service defined as a retail sale in *RCW 82.04.050
(6)(c), available free of charge for the use or enjoyment of the general public. The exemption provided in this subsection (2) does not apply unless the purchaser has the legal right to broadcast, rebroadcast, transmit, retransmit, license, relicense, distribute, redistribute, or exhibit the product, in whole or in part, to the general public.
(b) For purposes of this subsection (2), "general public" means all persons and not limited or restricted to a particular class of persons, except that the general public includes:
(i) A class of persons that is defined as all persons residing or owning property within the boundaries of a state, political subdivision of a state, or a municipal corporation; and
(ii) With respect to libraries, authorized library patrons.
(3)(a) The tax imposed by RCW 82.08.020
does not apply to the sale to a business of digital goods, and services rendered in respect to digital goods, if the digital goods and services rendered in respect to digital goods are purchased solely for business purposes. The exemption provided by this subsection (3) also applies to the sale to a business of a digital code if all of the digital goods to be obtained through the use of the code will be used solely for business purposes.
(b) For purposes of this subsection (3), the following definitions apply:
(i) "Business purposes" means any purpose relevant to the business needs of the taxpayer claiming an exemption under this subsection (3). Business purposes do not include any personal, family, or household purpose. The term also does not include any activity conducted by a government entity as that term is defined in RCW 7.25.005
; and
(ii) "Services rendered in respect to digital goods" means those services defined as a retail sale in RCW 82.04.050
(2)(g).
(4)(a) The tax imposed by RCW 82.08.020
does not apply to the sale of digital goods, digital codes, digital automated services, prewritten computer software, or services defined as a retail sale in *RCW 82.04.050
(6)(c) to a buyer that provides the seller with an exemption certificate claiming multiple points of use. An exemption certificate claiming multiple points of use must be in a form and contain such information as required by the department.
(b) A buyer is entitled to use an exemption certificate claiming multiple points of use only if the buyer is a business or other organization and the digital goods or digital automated services purchased, or the digital goods or digital automated services to be obtained by the digital code purchased, or the prewritten computer software or services defined as a retail sale in *RCW 82.04.050
(6)(c) purchased will be concurrently available for use within and outside this state. A buyer is not entitled to use an exemption certificate claiming multiple points of use for digital goods, digital codes, digital automated services, prewritten computer software, or services defined as a retail sale in *RCW 82.04.050
(6)(c) purchased for personal use.
(c) A buyer claiming an exemption under this subsection (4) must report and pay the tax imposed in RCW 82.12.020
and any local use taxes imposed under the authority of chapter
82.14
RCW and RCW 81.104.170
directly to the department in accordance with RCW 82.12.0208
and
82.14.457
.
(d) For purposes of this subsection (4), "concurrently available for use within and outside this state" means that employees or other agents of the buyer may use the digital goods, digital automated services, prewritten computer software, or services defined as a retail sale in *RCW 82.04.050
(6)(c) simultaneously from one or more locations within this state and one or more locations outside this state. A digital code is concurrently available for use within and outside this state if employees or other agents of the buyer may use the digital goods or digital automated services to be obtained by the code simultaneously at one or more locations within this state and one or more locations outside this state.
(5)(a) Except as provided in (b) of this subsection (5), the tax imposed by RCW 82.08.020
does not apply to sales of audio or video programming by a radio or television broadcaster.
(b)(i) Except as provided in (b)(ii) of this subsection (5), the exemption provided in this subsection (5) does not apply in respect to programming that is sold on a pay-per-program basis or that allows the buyer to access a library of programs at any time for a specific charge for that service.
(ii) The exemption provided in this subsection (5) applies to the sale of programming described in (b)(i) of this subsection (5) if the seller is subject to a franchise fee in this state under the authority of Title 47 U.S.C. Sec. 542(a) on the gross revenue derived from the sale.
(c) For purposes of this subsection (5), "radio or television broadcaster" includes satellite radio providers, satellite television providers, cable television providers, and providers of subscription internet television.
(6) Sellers making tax-exempt sales under subsection (2) or (3) of 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.
[
2020 c 139 s 11
;
2009 c 535 s 501
.]
NOTES:
*
Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
RCW 82.08.0209
Exemptions
—
Qualifying grant.
(1) The tax levied by RCW 82.08.020
does not apply to a grantee's receipt of a qualifying grant that is exempt from business and occupation tax under RCW 82.04.767
.
(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 a qualifying grant 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 qualifying grant.
(b) "Product" means the same as in RCW 82.32.023
.
(c) "Qualifying grant" means the same as in RCW 82.04.767
.
[
2021 c 4 s 4
.]
NOTES:
Retroactive application
—
Automatic expiration date and tax preference performance statement exemption
—
Effective date
—
2021 c 4:
See notes following RCW 82.04.767
.
RCW 82.08.0251
Exemptions
—
Casual and isolated sales.
The tax levied by RCW 82.08.020
shall not apply to casual and isolated sales of property or service, unless made by a person who is engaged in a business activity taxable under chapters
82.04
or
82.16
RCW: PROVIDED, That the exemption provided by this section shall not be construed as providing any exemption from the tax imposed by chapter
82.12
RCW.
[
1980 c 37 s 19
. Formerly RCW 82.08.030
(1).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0252
Exemptions
—
Sales by persons taxable under chapter
82.16
RCW.
The tax levied by RCW 82.08.020
shall not apply to sales made by persons in the course of business activities with respect to which tax liability is specifically imposed under chapter
82.16
RCW, when the gross proceeds from such sales must be included in the measure of the tax imposed under said chapter.
[
1980 c 37 s 20
. Formerly RCW 82.08.030
(2).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02525
Exemptions
—
Sale of copied public records by state and local agencies.
The tax levied by RCW 82.08.020
does not apply to the sale of public records by state and local agencies, as the terms are defined in RCW 42.56.010, that are copied or transferred electronically under a request for the record for which no fee is charged other than a statutorily set fee or a fee to reimburse the agency for its actual costs directly incident to the copying. A request for a record includes a request for a document not available to the public but available to those persons who by law are allowed access to the document, such as requests for fire reports, law enforcement reports, taxpayer information, and academic transcripts.
[
2011 c 60 s 49
;
2009 c 535 s 505
;
1996 c 63 s 1
.]
NOTES:
Effective date
—
2011 c 60:
See RCW 42.17A.919
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Effective date
—
1996 c 63:
"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 April 1, 1996." [
1996 c 63 s 3
.]
RCW 82.08.0253
Exemptions
—
Sale and distribution of newspapers.
(1) The tax levied by RCW 82.08.020
does not apply to:
(a) The distribution and newsstand sale of printed newspapers; and
(b) The sale of newspapers transferred electronically, provided that the electronic version of a printed newspaper:
(i) Shares content with the printed newspaper; and
(ii) Is prominently identified by the same name as the printed newspaper or otherwise conspicuously indicates that it is a complement to the printed newspaper.
(2) For purposes of this section, "printed newspaper" means a publication issued regularly at stated intervals at least twice a month and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind, including any supplement of a printed newspaper.
[
2009 c 535 s 506
;
1980 c 37 s 21
. Formerly RCW 82.08.030
(3).]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02535
Exemptions
—
Sales and distribution of magazines or periodicals by subscription for fund-raising.
The tax levied by RCW 82.08.020
does not apply to subscription sales of magazines or periodicals, including magazines and periodicals transferred electronically to the buyer, for the purposes of fund-raising by (1) educational institutions as defined in RCW 82.04.170, or (2) nonprofit organizations engaged in activities primarily for the benefit of boys and girls nineteen years and younger.
[
2009 c 535 s 507
;
1995 2nd sp.s. c 8 s 1
.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Effective date
—
1995 2nd sp.s. c 8:
"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 8 s 2
.]
RCW 82.08.02537
Exemptions
—
Sales of academic transcripts.
The tax levied by RCW 82.08.020
does not apply to sales of academic transcripts by educational institutions, including academic transcripts transferred electronically.
[
2009 c 535 s 508
;
1996 c 272 s 2
.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Effective date
—
1996 c 272:
See note following RCW 82.04.399
.
RCW 82.08.0254
Exemptions
—
Nontaxable sales.
The tax levied by RCW 82.08.020
shall not apply to sales which the state is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States.
[
1980 c 37 s 22
. Formerly RCW 82.08.030
(4).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0255
Exemptions
—
Sales of motor vehicle and special fuel
—
Conditions
—
Credit or refund of special fuel used outside this state in interstate commerce.
(1) The tax levied by RCW 82.08.020
does not apply to sales of motor vehicle and special fuel if:
(a) The fuel is purchased for the purpose of public transportation and the purchaser is entitled to a refund or an exemption under RCW 82.38.080
(1) (f) and (g) or
82.38.180
(3)(b); or
(b) The fuel is purchased by a private, nonprofit transportation provider certified under chapter
81.66
RCW and the purchaser is entitled to a refund or an exemption under RCW 82.38.080
(1)(d) or
82.38.180
(3)(a); or
(c) The fuel is purchased by a public transportation benefit area created under chapter
36.57A
RCW or a county-owned ferry or county ferry district created under chapter
36.54
RCW for use in passenger-only ferry vessels; or
(d) The fuel is purchased by the Washington state ferry system for use in a state-owned ferry after June 30, 2013; or
(e) The fuel is purchased by a county-owned ferry for use in ferry vessels after June 30, 2013; or
(f) The fuel is taxable under chapter
82.38
RCW.
(2) Any person who has paid the tax imposed by RCW 82.08.020
on the sale of special fuel delivered in this state is entitled to a credit or refund of such tax with respect to fuel subsequently established to have been actually transported and used outside this state by persons engaged in interstate commerce. The tax must be claimed as a credit or refunded through the tax reports required under RCW 82.38.150
.
[
2013 c 225 s 640
;
2011 1st sp.s. c 16 s 4
;
2007 c 223 s 9
;
2005 c 443 s 5
;
1998 c 176 s 4
. Prior:
1983 1st ex.s. c 35 s 2
;
1983 c 108 s 1
;
1980 c 147 s 1
;
1980 c 37 s 23
. Formerly RCW 82.08.030
(5).]
NOTES:
Effective date
—
2013 c 225:
See note following RCW 82.38.010
.
Effective date
—
2011 1st sp.s. c 16 ss 1-15:
See note following RCW 47.60.530
.
Effective date
—
2007 c 223:
See note following RCW 36.57A.220
.
Finding
—
Intent
—
2005 c 443:
"The legislature finds that a number of tax exemptions, deductions, credits, and other preferences have outlived their usefulness. State records show no taxpayers have claimed relief under these tax preferences in recent years. The intent of this act is to update and simplify the tax statutes by repealing these outdated tax preferences." [
2005 c 443 s 1
.]
Effective date
—
2005 c 443:
"This act takes effect July 1, 2006." [
2005 c 443 s 8
.]
Intent
—
1983 1st ex.s. c 35:
"It is the intent of the legislature that special fuel purchased in Washington upon which the special fuel tax has been paid, regardless of whether or not the tax is subsequently refunded or credited in whole or in part, should not be subject to the sales and use tax if the special fuel is transported and used outside the state by persons engaged in interstate commerce." [
1983 1st ex.s. c 35 s 1
.]
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
Diesel, biodiesel, and aircraft fuel sales tax exemption for farmers: RCW 82.08.865
.
RCW 82.08.0256
Exemptions
—
Sale of the operating property of a public utility to the state or a political subdivision.
The tax levied by RCW 82.08.020
does not apply to sales (including transfers of title through decree of appropriation) heretofore or hereafter made of the entire operating property of a publicly or privately owned public utility, or of a complete operating integral section thereof, to the state or a political subdivision thereof for use in conducting any public service business as defined in RCW 82.16.010
. For purposes of this section, "operating property" includes digital goods and digital codes.
[
2010 c 106 s 213
;
2009 c 535 s 509
;
1980 c 37 s 24
. Formerly RCW 82.08.030
(6).]
NOTES:
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02565
Exemptions
—
Sales of machinery and equipment for manufacturing, research and development, or a testing operation
—
Labor and services for installation
—
Exemption certificate
—
Rules.
(1)(a) The tax levied by RCW 82.08.020
does not apply to sales to a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation, to sales to a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.
(b) Except as provided in (c) of this subsection, sellers making tax-exempt sales under this section must obtain from the purchaser an exemption certificate in a form and manner prescribed by the department by rule. The seller must retain a copy of the certificate for the seller's files.
(c)(i) The exemption under this section is in the form of a remittance for a gas distribution business, as defined in RCW 82.16.010, claiming the exemption for machinery and equipment used for the production of compressed natural gas or liquefied natural gas for use as a transportation fuel.
(ii) A gas distribution business claiming an exemption from state and local tax in the form of a remittance under this section must pay the tax under RCW 82.08.020
and all applicable local sales taxes. Beginning July 1, 2017, the gas distribution business may then apply to the department for remittance of state and local sales and use taxes. A gas distribution business may not apply for a remittance more frequently than once a quarter. The gas distribution business must specify the amount of exempted tax claimed and the qualifying purchases for which the exemption is claimed. The gas distribution business must retain, in adequate detail, records to enable the department to determine whether the business is entitled to an exemption under this section, including: Invoices; proof of tax paid; and documents describing the machinery and equipment.
(iii) The department must determine eligibility under this section based on the information provided by the gas distribution business, which is subject to audit verification by the department. The department must on a quarterly basis remit exempted amounts to qualifying businesses who submitted applications during the previous quarter.
(iv) Beginning July 1, 2028, a gas distribution business may not apply for a refund under this section or RCW 82.12.02565
.
(2) For purposes of this section and RCW 82.12.02565
:
(a) "Machinery and equipment" means industrial fixtures, devices, and support facilities, and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts. "Machinery and equipment" includes pollution control equipment installed and used in a manufacturing operation, testing operation, or research and development operation to prevent air pollution, water pollution, or contamination that might otherwise result from the manufacturing operation, testing operation, or research and development operation. "Machinery and equipment" also includes digital goods.
(b) "Machinery and equipment" does not include:
(i) Hand-powered tools;
(ii) Property with a useful life of less than one year;
(iii) Buildings, other than machinery and equipment that is permanently affixed to or becomes a physical part of a building; and
(iv) Building fixtures that are not integral to the manufacturing operation, testing operation, or research and development operation that are permanently affixed to and become a physical part of a building, such as utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical.
(c) Machinery and equipment is "used directly" in a manufacturing operation, testing operation, or research and development operation if the machinery and equipment:
(i) Acts upon or interacts with an item of tangible personal property;
(ii) Conveys, transports, handles, or temporarily stores an item of tangible personal property at the manufacturing site or testing site;
(iii) Controls, guides, measures, verifies, aligns, regulates, or tests tangible personal property at the site or away from the site;
(iv) Provides physical support for or access to tangible personal property;
(v) Produces power for, or lubricates machinery and equipment;
(vi) Produces another item of tangible personal property for use in the manufacturing operation, testing operation, or research and development operation;
(vii) Places tangible personal property in the container, package, or wrapping in which the tangible personal property is normally sold or transported; or
(viii) Is integral to research and development as defined in RCW 82.63.010
.
(d) "Manufacturer" means a person that qualifies as a manufacturer under RCW 82.04.110
. "Manufacturer" also includes a person that:
(i) Prints newspapers or other materials; or
(ii) Is engaged in the development of prewritten computer software that is not transferred to purchasers by means of tangible storage media.
(e) "Manufacturing" means only those activities that come within the definition of "to manufacture" in RCW 82.04.120
and are taxed as manufacturing or processing for hire under chapter
82.04
RCW, or would be taxed as such if such activity were conducted in this state or if not for an exemption or deduction. "Manufacturing" also includes printing newspapers or other materials. An activity is not taxed as manufacturing or processing for hire under chapter
82.04
RCW if the activity is within the purview of chapter
82.16
RCW.
(f) "Manufacturing operation" means the manufacturing of articles, substances, or commodities for sale as tangible personal property. A manufacturing operation begins at the point where the raw materials enter the manufacturing site and ends at the point where the processed material leaves the manufacturing site. With respect to the production of class A or exceptional quality biosolids by a wastewater treatment facility, the manufacturing operation begins at the point where class B biosolids undergo additional processing to achieve class A or exceptional quality standards. Notwithstanding anything to the contrary in this section, the term also includes that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part. The term does not include the preparation of food products on the premises of a person selling food products at retail.
(g) "Cogeneration" means the simultaneous generation of electrical energy and low-grade heat from the same fuel.
(h) "Research and development operation" means engaging in research and development as defined in RCW 82.63.010
by a manufacturer or processor for hire.
(i) "Testing" means activities performed to establish or determine the properties, qualities, and limitations of tangible personal property.
(j) "Testing operation" means the testing of tangible personal property for a manufacturer or processor for hire. A testing operation begins at the point where the tangible personal property enters the testing site and ends at the point where the tangible personal property leaves the testing site. The term also includes the testing of tangible personal property for use in that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part. The term does not include the testing of tangible personal property for use in the production of electricity by a light and power business as defined in RCW 82.16.010
or the preparation of food products on the premises of a person selling food products at retail.
(3) This section does not apply (a) to sales of machinery and equipment used directly in the manufacturing, research and development, or testing of cannabis, useable cannabis, or cannabis-infused products, or (b) to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving such machinery and equipment.
(4) The exemptions in this section do not apply to an ineligible person. For purposes of this subsection, the following definitions apply:
(a) "Affiliated group" means a group of two or more entities that are either:
(i) Affiliated as defined in RCW 82.32.655
; or
(ii) Permitted to file a consolidated return for federal income tax purposes.
(b) "Ineligible person" means all members of an affiliated group if all of the following apply:
(i) At least one member of the affiliated group was registered with the department to do business in Washington state on or before July 1, 1981;
(ii) As of August 1, 2015, the combined employment in this state of the affiliated group exceeds forty thousand full-time and part-time employees, based on data reported to the employment security department by the affiliated group; and
(iii) The business activities of the affiliated group primarily include development, sales, and licensing of computer software and services.
[
2022 c 16 s 146
;
2015 3rd sp.s. c 5 s 301
. Prior:
2014 c 216 s 401
;
2014 c 140 s 13
;
2011 c 23 s 2
;
2009 c 535 s 510
;
1999 c 211 s 5
;
1999 c 211 s 3
;
1998 c 330 s 1
; prior:
1996 c 247 s 2
;
1996 c 173 s 3
;
1995 1st sp.s. c 3 s 2
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Construction
—
2017 c 323:
See note following RCW 82.08.052
.
Application
—
2015 3rd sp.s. c 5:
"Sections 301 and 302 of this act do not apply with respect to machinery and equipment, as defined in RCW 82.08.02565, first used by the taxpayer in this state before August 1, 2015." [
2015 3rd sp.s. c 5 s 306
.]
Conflicting laws
—
2015 3rd sp.s. c 5:
"If RCW 82.08.02565, 82.12.02565, or
82.63.010
are amended by any other act enacted during the regular or any special session of the 2015 legislature, each amendment without reference to the other amendment or amendments of the same statute, the legislature intends for the amendments in this act to be deemed to not conflict in purpose with the amendments in any other such act for the purposes of RCW 1.12.025
and that the amendments in this act be given effect." [
2015 3rd sp.s. c 5 s 305
.]
Effective dates
—
2015 3rd sp.s. c 5:
See note following RCW 82.08.052
.
Effective date
—
Findings
—
Tax preference performance statement
—
2014 c 216:
See notes following RCW 82.38.030
.
Findings
—
2011 c 23:
"(1) In 1995, the legislature enacted a sales and use tax exemption for manufacturing machinery and equipment, commonly referred to as the "M&E exemption." The legislature finds that the purposes of this exemption were to encourage the growth and development of the state's private sector manufacturing industry and improve this state's ability to compete with other states for manufacturing investment. The legislature further finds that it was not the purpose of the M&E exemption to provide tax breaks to state agencies and institutions, nor to public utilities and other businesses with respect to machinery and equipment primarily used for activities that are taxable under the state public utility tax or are otherwise not considered to be manufacturing for business and occupation tax purposes.
(2) The legislature further finds that despite previous attempts at clarifying the M&E exemption, significant ambiguity persists, particularly with respect to the scope of the exemption. Such ambiguity results in costly appeals and litigation and may result in significant unanticipated revenue losses for the state and local governments.
(3) Therefore, the legislature finds it necessary to reaffirm its original intent in establishing the M&E exemption. The legislature declares that the amendments to the existing M&E exemption and to RCW 82.04.120
in this act are clarifying and, as such, apply retroactively as well as prospectively.
(4) The legislature finds that Washington is home to premier public research institutions. The legislature recognizes that the state's public universities provide cutting-edge research and development, which helps stimulate growth in the private sector and is vital to the economic well-being of our state. University research leads directly to new products, companies, production methods, and ways of organizing work. The legislature further recognizes that our public universities will play an important role in shaping the next generation of Washington industries, including biofuels and other renewable energy, global health, and advanced manufacturing. Therefore, because the amendments to the existing M&E exemption in this act clarify that state agencies and institutions are not eligible for the M&E exemption, this act provides a new, stand-alone sales and use tax exemption for machinery and equipment used primarily in technological research and development operations by the state's four-year institutions of higher education." [
2011 c 23 s 1
.]
Intent
—
2011 c 23:
"The legislature declares that the only reason why the phrase "the production of electricity by a light and power business as defined in RCW 82.16.010
" was deleted from the definition of "manufacturing operation" in RCW 82.08.02565
(2)(f) in section 2 of this act is because that language is superfluous." [
2011 c 23 s 7
.]
Application
—
2011 c 23:
"Sections 2 and 3 of this act apply both prospectively and retroactively to any tax period open for assessment or refund of taxes." [
2011 c 23 s 9
.]
Effective date
—
Construction
—
2011 c 23:
See notes following RCW 82.08.025651
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Finding
—
Intent
—
1999 c 211:
"The legislature finds that the application of the manufacturer's machinery and equipment sales and use tax exemption has, in some instances, been difficult and confusing for taxpayers, and included difficult reporting and recordkeeping requirements. In this act, it is the intent of the legislature to make clear its intent for the application of the exemption, and to extend the exemption to the purchase and use of machinery and equipment for businesses that perform testing of manufactured goods for manufacturers or processors for hire." [
1999 c 211 s 1
.]
Intent
—
1999 c 211 ss 2 and 3:
See note following RCW 82.04.120
.
Effective date
—
1999 c 211 ss 1-4:
See note following RCW 82.04.120
.
Findings
—
Intent
—
1996 c 247:
See note following RCW 82.08.02566
.
Findings
—
Intent
—
1996 c 173:
"The legislature finds that the health, safety, and welfare of the people of the state of Washington are heavily dependent upon the continued encouragement, development, and expansion of opportunities for family wage employment in the state's manufacturing industries.
The legislature also finds that sales and use tax exemptions for manufacturing machinery and equipment enacted by the 1995 legislature have improved Washington's ability to compete with other states for manufacturing investment, but that additional incentives for manufacturers need to be adopted to solidify and enhance the state's competitive position.
The legislature intends to accomplish this by extending the current manufacturing machinery and equipment exemptions to allow a sales tax exemption for labor and service charges for repairing, cleaning, altering, or improving machinery and equipment, and a sales and use tax exemption for repair and replacement parts with a useful life of one year or more." [
1996 c 173 s 1
.]
Findings
—
1995 1st sp.s. c 3:
"The legislature finds and declares that:
(1) The health, safety, and welfare of the people of the state of Washington are heavily dependent upon the continued encouragement, development, and expansion of opportunities for family wage employment in our state's private sector;
(2) The state's private sector must be encouraged to commit to continuous improvement of process, products, and services and to deliver high quality, high value products through technological innovations and high-performance work organizations;
(3) The state's opportunities for increased economic dealings with other states and nations of the world are dependent on supporting and attracting a diverse, stable, and competitive economic base of private sector employers;
(4) The state's current policy of applying its sales and use taxes to machinery, equipment, and installation labor used in manufacturing, research and development, and other activities has placed our state's private sector at a competitive disadvantage with other states and serves as a significant disincentive to the continuous improvement of products, technology, and modernization necessary for the preservation, stabilization, and expansion of employment and to ensure a stable economy; and
(5) It 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, that the state of Washington provide tax incentives to entities making a commitment to sites and operations in this state." [
1995 1st sp.s. c 3 s 1
.]
Effective date
—
1995 1st sp.s. c 3:
"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 1st sp.s. c 3 s 16
.]
RCW 82.08.025651
Exemptions
—
Sales of machinery and equipment to public research institutions.
(1)(a) The tax levied by RCW 82.08.020
does not apply to sales to a public research institution of machinery and equipment used primarily in a research and development operation, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.
(b) Sellers making tax-exempt sales under this section must obtain from the purchaser 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) A public research institution claiming the exemption provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(3) For purposes of this section, the following definitions apply:
(a) "Machinery and equipment" means those fixtures, pieces of equipment, digital goods, and support facilities that are an integral and necessary part of a research and development operation, and tangible personal property that becomes an ingredient or component of such fixtures, equipment, and support facilities, including repair parts and replacement parts. "Machinery and equipment" may include, but is not limited to: Computers; software; data processing equipment; laboratory equipment, instrumentation, and other devices used in a process of experimentation to develop a new or improved pilot model, plant process, product, formula, or invention; vats, tanks, and fermenters; operating structures; and all equipment used to control, monitor, or operate the machinery and equipment.
(b) "Machinery and equipment" does not include:
(i) Hand-powered tools;
(ii) Property with a useful life of less than one year;
(iii) Buildings; and
(iv) Those building fixtures that are not an integral and necessary part of a research and development operation and that are permanently affixed to and become a physical part of a building, such as utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical.
(c) "Primarily" means greater than fifty percent as measured by time. If machinery and equipment is used simultaneously in a research and development operation and also for other purposes, the use for other purposes must be disregarded during the period of simultaneous use for purposes of determining whether the machinery and equipment is used primarily in a research and development operation.
(d) "Public research institution" means any college or university included within the definitions of state universities, regional universities, or state college in RCW 28B.10.016
.
(e) "Research and development operation" means engaging in research and development as defined in RCW 82.63.010
.
[
2020 c 139 s 12
;
2011 c 23 s 4
.]
NOTES:
Effective date
—
2011 c 23:
"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 [April 11, 2011]." [
2011 c 23 s 8
.]
Construction
—
2011 c 23:
"Nothing in this act may be construed as a repudiation of any provision of WAC 458-20-13601." [
2011 c 23 s 11
.]
Findings
—
2011 c 23:
See note following RCW 82.08.02565
.
RCW 82.08.02566
Exemptions
—
Sales of tangible personal property incorporated in prototype for parts, auxiliary equipment, and aircraft modification
—
Limitations on yearly exemption.
(1) The tax levied by RCW 82.08.020
shall not apply to sales of tangible personal property incorporated into a prototype for aircraft parts, auxiliary equipment, or modifications; or to sales of tangible personal property that at one time is incorporated into the prototype but is later destroyed in the testing or development of the prototype.
(2) This exemption does not apply to sales to any person whose total taxable amount during the immediately preceding calendar year exceeds twenty million dollars. For purposes of this section, "total taxable amount" means gross income of the business and value of products manufactured, less any amounts for which a credit is allowed under RCW 82.04.440
.
(3) State and local taxes for which an exemption is received under this section and RCW 82.12.02566
shall not exceed one hundred thousand dollars for any person during any calendar year.
(4) Sellers shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department.
[
2003 c 168 s 208
;
1997 c 302 s 1
;
1996 c 247 s 4
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Effective date
—
1997 c 302:
"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, 1997." [
1997 c 302 s 3
.]
Findings
—
Intent
—
1996 c 247:
"The legislature finds that the health, safety, and welfare of the people of the state of Washington are heavily dependent upon the continued encouragement, development, and expansion of opportunities for family wage employment in the state's manufacturing industries.
The legislature also finds that sales and use tax exemptions for manufacturing machinery and equipment enacted by the 1995 legislature have improved Washington's ability to compete with other states for manufacturing investment, but that additional incentives for manufacturers need to be adopted to solidify and enhance the state's competitive position.
The legislature intends to accomplish this by extending the current manufacturing machinery and equipment exemptions to include machinery and equipment used for research and development with potential manufacturing applications." [
1996 c 247 s 1
.]
RCW 82.08.025661
Exemptions
—
Aircraft maintenance repair
—
Building construction.
(Expires January 1, 2031.)
(1) Subject to the requirements of this section, the tax levied by RCW 82.08.020
does not apply to:
(a) Charges for labor and services rendered in respect to the constructing of new buildings, made to: (i) An eligible maintenance repair operator engaged in the maintenance of airplanes; or (ii) a port district, political subdivision, or municipal corporation, if the new building is to be leased to an eligible maintenance repair operator engaged in the maintenance of airplanes;
(b) Sales of tangible personal property that will be incorporated as an ingredient or component of such buildings during the course of the constructing; or
(c) Charges made for labor and services rendered in respect to installing, during the course of constructing such buildings, building fixtures not otherwise eligible for the exemption under RCW 82.08.02565
.
(2)(a) The exemption in this section is in the form of a remittance. A buyer claiming an exemption from the tax in the form of a remittance under this section must pay all applicable state and local sales taxes imposed under RCW 82.08.020
and chapter
82.14
RCW on all purchases qualifying for the exemption.
(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 may on a quarterly basis submit an application, 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 location and size of new structures; 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.
(d) A person may request a remittance for state sales and use taxes after the aircraft maintenance and repair station has been operationally complete for four years, but not sooner than December 1, 2021. However, the department may not remit the state portion of sales and use taxes if the person did not report at least 100 average employment positions with an average annualized wage of $80,000 to the employment security department for a period of four consecutive calendar quarters, beginning with the first calendar quarter after the date the facility is issued an occupancy permit by the local permit issuing authority. A person must provide the department with the unemployment insurance number provided to the employment security department for the establishment.
(e) A person may request a remittance for local sales and use taxes on or after July 1, 2016.
(3) In order to qualify under this section before starting construction, the port district, political subdivision, or municipal corporation must have entered into an agreement with an eligible maintenance repair operator to build such a facility. A person claiming the exemption under this section is subject to all the requirements of chapter
82.32
RCW. In addition, the person must file a complete annual report with the department under RCW 82.32.534
.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Eligible maintenance repair operator" means a person classified by the federal aviation administration as a federal aviation regulation part 145 certificated repair station and located in a commercial services airport owned by a county with a population less than 1,000,000 or a commercial services airport jointly owned by a city and county.
(b) "Operationally complete" means constructed to the point of being functionally capable of hosting the repair and maintenance of airplanes.
(5) This section expires January 1, 2031.
[
2023 c 414 s 1
;
2022 c 56 s 5
;
2016 c 191 s 2
.]
NOTES:
Tax preference performance statement exemption
—
2023 c 414:
"RCW 82.32.808
does not apply to this act." [
2023 c 414 s 3
.]
Tax preference performance statement
—
2016 c 191 ss 2 and 3:
"(1) This section is the tax preference performance statement for the tax preferences contained in sections 2 and 3 of this act. 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 the tax preference in sections 2 and 3 of this act as one intended to create jobs, as indicated in RCW 82.32.808
(2)(c).
(3) At the end of the third year after an aircraft maintenance and repair station is operationally complete, the joint legislative audit and review committee must evaluate, at a minimum:
(a) Whether a taxpayer claiming this tax preference is on target to reach the employment levels and average annualized wages under section 2 of this act by the end of the aircraft maintenance and repair station's fourth year of operation; and
(b) Whether the average annualized wages for employees are on a par with industry standards for the sector.
(4) In order to obtain the data necessary to perform the review, the joint legislative audit and review committee may refer to the annual report and annual survey for tax preferences that federal aviation administration part 145 repair stations are required to file with the department [of revenue] and to employment data available from the employment security department." [
2016 c 191 s 1
.]
Effective date
—
2016 c 191:
"This act takes effect July 1, 2016." [
2016 c 191 s 6
.]
RCW 82.08.02568
Exemptions
—
Sales of carbon and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale.
The tax levied by RCW 82.08.020
shall not apply to sales of carbon, petroleum coke, coal tar, pitch, and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale.
[
1996 c 170 s 1
.]
NOTES:
Effective date
—
1996 c 170:
"This act shall take effect July 1, 1996." [
1996 c 170 s 3
.]
RCW 82.08.02569
Exemptions
—
Sales of tangible personal property related to a building or structure that is an integral part of a laser interferometer gravitational wave observatory.
The tax levied by RCW 82.08.020
shall not apply to sales of tangible personal property to a consumer as defined in RCW 82.04.190
(6) if the tangible personal property is incorporated into, installed in, or attached to a building or other structure that is an integral part of a laser interferometer gravitational wave observatory on which construction is commenced before December 1, 1996.
[
1996 c 113 s 1
.]
NOTES:
Effective date
—
1996 c 113:
"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 immediately [March 20, 1996]." [
1996 c 113 s 3
.]
RCW 82.08.0257
Exemptions
—
Auction sales of personal property used in farming.
The tax levied by RCW 82.08.020
does not apply to auction sales made by or through auctioneers of personal property (including household goods) that has been used in conducting a farm activity, when the seller thereof is a farmer as defined in RCW 82.04.213
and the sale is held or conducted upon a farm and not otherwise. The exemption in this section does not apply to personal property used by the seller in the production of cannabis, useable cannabis, or cannabis-infused products.
[
2022 c 16 s 147
;
2014 c 140 s 15
;
2009 c 535 s 511
;
1980 c 37 s 25
. Formerly RCW 82.08.030
(7).]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02573
Exemptions
—
Sales by a nonprofit organization for fund-raising activities.
The tax levied by RCW 82.08.020
does not apply to a sale made by a nonprofit organization or a library, if the gross income from the sale is exempt under RCW 82.04.3651
.
[
2010 c 106 s 214
;
1998 c 336 s 3
.]
NOTES:
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Findings
—
1998 c 336:
See note following RCW 82.04.3651
.
RCW 82.08.0258
Exemptions
—
Sales to federal corporations providing aid and relief.
The tax levied by RCW 82.08.020
shall not apply to sales to corporations which have been incorporated under any act of the congress of the United States and whose principal purposes are to furnish volunteer aid to members of armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same.
[
1980 c 37 s 26
. Formerly RCW 82.08.030
(8).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0259
Exemptions
—
Sales of livestock.
The tax levied by RCW 82.08.020
shall not apply to sales of livestock, as defined in RCW 16.36.005, for breeding purposes where the animals are registered in a nationally recognized breed association; or to sales of cattle and milk cows used on the farm.
[
2001 c 118 s 4
;
1980 c 37 s 27
. Formerly RCW 82.08.030
(9).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.026
Exemptions
—
Sales of natural or manufactured gas.
The tax levied by RCW 82.08.020
shall not apply to sales of natural or manufactured gas that is taxable under RCW 82.12.022
.
[
1994 c 124 s 8
;
1989 c 384 s 4
.]
NOTES:
Intent
—
Effective date
—
1989 c 384:
See notes following RCW 82.12.022
.
RCW 82.08.0261
Exemptions
—
Sales of personal property for use connected with private or common carriers in interstate or foreign commerce.
(1) Except as otherwise provided in this section, the tax levied by RCW 82.08.020
does not apply to sales of tangible personal property (other than the type referred to in RCW 82.08.0262
) for use by the purchaser in connection with the business of operating as a private or common carrier by air, rail, or water in interstate or foreign commerce. However, any actual use of such property in this state is, at the time of such actual use, subject to the tax imposed by chapter
82.12
RCW.
(2)(a) With respect to the sale of liquefied natural gas to a business operating as a private or common carrier by water in interstate or foreign commerce, the buyer is entitled to a partial exemption from the tax levied by RCW 82.08.020
and the associated local sales taxes. The exemption under this subsection (2) is for the state and local retail sales taxes on ninety percent of the amount of the liquefied natural gas transported and consumed outside this state by the buyer.
(b) Sellers are relieved of the obligation to collect the state and local retail sales taxes on sales eligible for the partial exemption provided in this subsection (2) to buyers who are registered with the department if the seller:
(i) Obtains a completed exemption certificate from the buyer, which must include the buyer's tax registration number with the department; or
(ii) Captures the relevant data elements as allowed under the streamlined sales and use tax agreement, including the buyer's tax registration number with the department.
(c) Buyers entitled to a partial exemption under this subsection (2) must either:
(i) Pay the full amount of state and local retail sales tax to the seller on the sale, including the amount of tax qualifying for exemption under this subsection (2), and then request a refund of the exempted portion of the tax from the department within the time allowed for making refunds under RCW 82.32.060
; or
(ii) If the seller did not collect the retail sales tax from the buyer, remit to the department the state and local retail sales taxes due on all liquefied natural gas consumed in this state and on ten percent of the liquefied natural gas that is transported and consumed outside of this state.
(3) This section does not apply to the sale of liquefied natural gas on or after July 1, 2028, for use as fuel in any marine vessel.
[
2014 c 216 s 405
;
1980 c 37 s 28
. Formerly RCW 82.08.030
(10).]
NOTES:
Effective date
—
Findings
—
Tax preference performance statement
—
2014 c 216:
See notes following RCW 82.38.030
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0262
Exemptions
—
Sales of airplanes, locomotives, railroad cars, or watercraft for use in interstate or foreign commerce or outside the territorial waters of the state or airplanes sold to United States government
—
Components thereof and of motor vehicles or trailers used for constructing, repairing, cleaning, etc.
—
Labor and services for constructing, repairing, cleaning, etc.
(1) The tax levied by RCW 82.08.020
does not apply to:
(a) Sales of airplanes (i) to the United States government; (ii) for use in conducting interstate or foreign commerce by transporting property or persons for hire or by performing services under a contract with the United States government; or (iii) for use in providing intrastate air transportation by a commuter air carrier;
(b) Sales of locomotives, railroad cars, or watercraft for use in conducting interstate or foreign commerce by transporting property or persons for hire or for use in conducting commercial deep sea fishing operations outside the territorial waters of the state;
(c) Sales of tangible personal property that becomes a component part of such airplanes, locomotives, railroad cars, or watercraft, and of motor vehicles or trailers whether owned by or leased with or without drivers and used by the holder of a carrier permit issued by the interstate commerce commission or its successor agency authorizing transportation by motor vehicle across the boundaries of this state, in the course of constructing, repairing, cleaning, altering, or improving the same; and
(d) Sales of or charges made for labor and services rendered in respect to such constructing, repairing, cleaning, altering, or improving.
(2) The term "commuter air carrier" means an air carrier holding authority under Title 14, Part 298 of the Code of Federal Regulations that carries passengers on at least five round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week, and places between which those flights are performed.
[
2015 c 86 s 305
;
2009 c 503 s 1
;
1998 c 311 s 5
;
1994 c 43 s 1
;
1980 c 37 s 29
. Formerly RCW 82.08.030
(11).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0263
Exemptions
—
Sales of motor vehicles and trailers for use in transporting persons or property in interstate or foreign commerce.
The tax levied by RCW 82.08.020
shall not apply to sales of motor vehicles and trailers to be used for the purpose of transporting therein persons or property for hire in interstate or foreign commerce whether such use is by the owner or whether such motor vehicles and trailers are leased to the user with or without drivers: PROVIDED, That the purchaser or user must be the holder of a carrier permit issued by the Interstate Commerce Commission or its successor agency.
[
1998 c 311 s 6
;
1995 c 63 s 1
;
1980 c 37 s 30
. Formerly RCW 82.08.030
(12).]
NOTES:
Effective date
—
1995 c 63:
"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 c 63 s 3
.]
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0264
Exemptions
—
Sales of motor vehicles, trailers, or campers to nonresidents for use outside the state.
(1) The tax levied by RCW 82.08.020
does not apply to sales of motor vehicles, trailers, or campers to nonresidents of this state for use outside of this state, even when delivery is made within this state, but only if:
(a) The motor vehicles, trailers, or campers will be taken from the point of delivery in this state directly to a point outside this state under the authority of a vehicle trip permit issued by the department of licensing pursuant to RCW 46.16A.320, or any agency of another state that has authority to issue similar permits; or
(b) The motor vehicles, trailers, or campers will be registered and licensed immediately under the laws of the state of the buyer's residence, will not be used in this state more than three months, and will not be required to be registered and licensed under the laws of this state.
(2) For the purposes of this section, the seller of a motor vehicle, trailer, or camper is not required to collect and shall not be found liable for the tax levied by RCW 82.08.020
on the sale if the tax is not collected and the seller retains the following documents, which must be made available upon request of the department:
(a) A copy of the buyer's currently valid out-of-state driver's license or other official picture identification issued by a jurisdiction other than Washington state;
(b) A copy of any one of the following documents, on which there is an out-of-state address for the buyer:
(i) A current residential rental agreement;
(ii) A property tax statement from the current or previous year;
(iii) A utility bill, dated within the previous two months;
(iv) A state income tax return from the previous year;
(v) A voter registration card;
(vi) A current credit report; or
(vii) Any other document determined by the department to be acceptable;
(c) A witnessed declaration in the form designated by the department, signed by the buyer, and stating that the buyer's purchase meets the requirements of this section; and
(d) A seller's certification, in the form designated by the department, that either a vehicle trip permit was issued or the vehicle was immediately registered and licensed in another state as required under subsection (1) of this section.
(3) If the department has information indicating the buyer is a Washington resident, or if the addresses for the buyer shown on the documentation provided under subsection (2) of this section are not the same, the department may contact the buyer to verify the buyer's eligibility for the exemption provided under this section. This subsection does not prevent the department from contacting a buyer as a result of information obtained from a source other than the seller's records.
(4)(a) Any person making fraudulent statements, which includes the offer of fraudulent identification or fraudulently procured identification to a seller, in order to purchase a motor vehicle, trailer, or camper without paying retail sales tax is guilty of perjury under chapter
9A.72
RCW.
(b) Any person making tax exempt purchases under this section by displaying proof of identification not his or her own, or counterfeit identification, with intent to violate the provisions of this section, is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one hundred dollars or the tax due on such purchases.
(5)(a) Any seller that makes sales without collecting the tax to a person who does not provide the documents required under subsection (2) of this section, and any seller who fails to retain the documents required under subsection (2) of this section for the period prescribed by RCW 82.32.070, is personally liable for the amount of tax due.
(b) Any seller that makes sales without collecting the retail sales tax under this section and who has actual knowledge that the buyer's documentation required by subsection (2) of this section is fraudulent is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one thousand dollars or the tax due on such sales. In addition, both the buyer and the seller are liable for any penalties and interest assessable under chapter
82.32
RCW.
(6) For purposes of this section, "buyer" does not include cosigners or financial guarantors, unless those parties are listed as a registered owner on the vehicle title.
[
2010 c 161 s 1165
;
2007 c 135 s 1
;
1980 c 37 s 31
. Formerly RCW 82.08.030
(13).]
NOTES:
Effective date
—
Intent
—
Legislation to reconcile chapter 161, Laws of 2010 and other amendments made during the 2010 legislative session
—
2010 c 161:
See notes following RCW 46.04.013
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0266
Exemptions
—
Sales of watercraft to nonresidents for use outside the state.
The tax levied by RCW 82.08.020
shall not apply to sales to nonresidents of this state for use outside of this state of watercraft requiring coast guard registration or registration by the state of principal use according to the federal boating act of 1958, even though delivery be made within this state, but only when (1) the watercraft will not be used within this state for more than forty-five days and (2) an appropriate exemption certificate supported by identification ascertaining residence as required by the department of revenue and signed by the purchaser or his or her agent establishing the fact that the purchaser is a nonresident and that the watercraft is for use outside of this state, a copy of which shall be retained by the dealer.
[
2013 c 23 s 316
;
1999 c 358 s 5
;
1980 c 37 s 33
. Formerly RCW 82.08.030
(15).]
NOTES:
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02665
Exemptions
—
Sales of watercraft, vessels to residents of foreign countries.
The tax levied by RCW 82.08.020
does not apply to sales of vessels to residents of foreign countries for use outside of this state, even though delivery is made within this state, but only if (1) the vessel will not be used within this state for more than forty-five days and (2) an appropriate exemption certificate supported by identification as required by the department of revenue and signed by the purchaser or the purchaser's agent establishes the fact that the purchaser is a resident of a foreign country and that the vessel is for use outside of this state. A copy of the exemption certificate is to be retained by the dealer.
As used in this section, "vessel" means every watercraft used or capable of being used as a means of transportation on the water, other than a seaplane.
[
1999 c 358 s 6
;
1993 c 119 s 1
.]
NOTES:
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
RCW 82.08.0267
Exemptions
—
Sales of poultry for producing poultry and poultry products for sale.
The tax levied by RCW 82.08.020
shall not apply to sales of poultry for use in the production for sale of poultry or poultry products.
[
1980 c 37 s 34
. Formerly RCW 82.08.030
(16).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0268
Exemptions
—
Sales of machinery and implements, and related parts and labor, for farming to nonresidents for use outside the state.
The tax levied by RCW 82.08.020
shall not apply to sales to nonresidents of this state for use outside of this state of:
(1) Machinery and implements for use in conducting a farming activity;
(2) Parts for machinery and implements for use in conducting a farming activity; and
(3) Labor and services for the repair of machinery, implements, and parts for use in conducting a farming activity,
when such machinery, implements, and parts will be transported immediately outside the state. As proof of exemption, an affidavit or certification in such form as the department of revenue shall require shall be retained as a business record of the seller.
[
1998 c 167 s 1
;
1980 c 37 s 35
. Formerly RCW 82.08.030
(17).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0269
Exemptions
—
Sales for use in states, territories, and possessions of the United States which are not contiguous to any other state.
The tax levied by RCW 82.08.020
shall not apply to sales for use in states, territories, and possessions of the United States which are not contiguous to any other state, but only when, as a necessary incident to the contract of sale, the seller delivers the subject matter of the sale to the purchaser or his or her designated agent at the usual receiving terminal of the carrier selected to transport the goods, under such circumstances that it is reasonably certain that the goods will be transported directly to a destination in such noncontiguous states, territories, and possessions.
[
2013 c 23 s 317
;
1980 c 37 s 36
. Formerly RCW 82.08.030
(18).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0271
Exemptions
—
Sales to municipal corporations, the state, and political subdivisions of tangible personal property, labor and services on watershed protection and flood prevention contracts.
The tax levied by RCW 82.08.020
shall not apply to sales to municipal corporations, the state, and all political subdivisions thereof of tangible personal property consumed and/or of labor and services rendered in respect to contracts for watershed protection and/or flood prevention. This exemption shall be limited to that portion of the selling price which is reimbursed by the United States government according to the provisions of the Watershed Protection and Flood Prevention Act, Public Laws 566, as amended.
[
1980 c 37 s 37
. Formerly RCW 82.08.030
(19).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0272
Exemptions
—
Sales of semen for artificial insemination of livestock.
The tax levied by RCW 82.08.020
shall not apply to sales of semen for use in the artificial insemination of livestock.
[
1980 c 37 s 38
. Formerly RCW 82.08.030
(20).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0273
Exemptions
—
Sales to nonresidents of tangible personal property, digital goods, and digital codes for use outside the state
—
Proof of nonresident status
—
Penalties.
(1) Subject to the conditions and limitations in this section, an exemption from the tax levied by RCW 82.08.020
in the form of a remittance from the department is provided for sales to nonresidents of this state of tangible personal property, digital goods, and digital codes. The exemption only applies if:
(a) The property is for use outside this state;
(b) The purchaser is a bona fide resident of a province or territory of Canada or a state, territory, or possession of the United States, other than the state of Washington; and
(i) Such state, possession, territory, or province does not impose, or have imposed on its behalf, a generally applicable retail sales tax, use tax, value added tax, gross receipts tax on retailing activities, or similar generally applicable tax, of three percent or more; or
(ii) If imposing a tax described in (b)(i) of this subsection, provides an exemption for sales to Washington residents by reason of their residence; and
(c) The purchaser agrees, when requested, to grant the department of revenue access to such records and other forms of verification at the purchaser's place of residence to assure that such purchases are not first used substantially in the state of Washington.
(2) Notwithstanding anything to the contrary in this chapter, if parts or other tangible personal property are installed by the seller during the course of repairing, cleaning, altering, or improving motor vehicles, trailers, or campers and the seller makes a separate charge for the tangible personal property, the tax levied by RCW 82.08.020
does not apply to the separately stated charge to a nonresident purchaser for the tangible personal property but only if the seller certifies in writing to the purchaser that the separately stated charge does not exceed either the seller's current publicly stated retail price for the tangible personal property or, if no publicly stated retail price is available, the seller's cost for the tangible personal property. However, the exemption provided by this section does not apply if tangible personal property is installed by the seller during the course of repairing, cleaning, altering, or improving motor vehicles, trailers, or campers and the seller makes a single nonitemized charge for providing the tangible personal property and service. All of the provisions in subsections (1) and (3) through (7) of this section apply to this subsection.
(3)(a) Any person claiming exemption from retail sales tax under the provisions of this section must pay the state and local sales tax to the seller at the time of purchase and then request a remittance from the department in accordance with this subsection and subsection (4) of this section. A request for remittance must include proof of the person's status as a nonresident at the time of the purchase for which a remittance is requested. The request for a remittance must also include any additional information and documentation as required by the department, which may include a description of the item purchased for which a remittance is requested, the sales price of the item, the amount of sales tax paid on the item, the date of the purchase, the name of the seller and the physical address where the sale took place, and copies of sales receipts showing the qualified purchases.
(b) Acceptable proof of a nonresident person'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 which has a photograph of the holder and is issued by the out-of-state jurisdiction. Identification under this subsection (3)(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.
(4)(a)(i) Beginning January 1, 2020, through December 31, 2020, a person may request a remittance from the department for state sales taxes paid by the person on qualified retail purchases made in Washington between July 1, 2019, and December 31, 2019.
(ii) Beginning January 1, 2021, a person may request a remittance from the department during any calendar year for state sales taxes paid by the person on qualified retail purchases made in Washington during the immediately preceding calendar year only. No application may be made with respect to purchases made before the immediately preceding calendar year.
(b) The remittance request, including proof of nonresident status and any other documentation and information required by the department, must be provided in a form and manner as prescribed by the department. Only one remittance request may be made by a person per calendar year.
(c) The total amount of a remittance request must be at least twenty-five dollars. The department must deny any request for a remittance that is less than twenty-five dollars.
(d) The department will examine the applicant's proof of nonresident status and any other documentation and information as required in the application to determine whether the applicant is entitled to a remittance under this section.
(5)(a) Any person making fraudulent statements to the department, which includes the offer of fraudulent or fraudulently procured identification or fraudulent sales receipts, in order to receive a remittance of retail sales tax is guilty of perjury under chapter
9A.72
RCW and is ineligible to receive any further remittances from the department under this section.
(b) Any person obtaining a remittance of retail sales tax from the department by providing proof of identification or sales receipts not the person's own, or counterfeit identification or sales receipts is (i) liable for repayment of the remittance, including interest as provided in chapter
82.32
RCW from the date the remittance was transmitted to the person until repaid in full, (ii) liable for a civil penalty equal to the greater of one hundred dollars or the amount of the remittance obtained in violation of this subsection (5)(b), and (iii) ineligible to receive any further remittances from the department under this section.
(c) Any person assisting another person in obtaining a remittance of retail sales tax in violation of (b) of this subsection is jointly and severally liable for amounts due under (b) of this subsection and is also ineligible to receive any further remittances from the department under this section.
(6) A person who receives a refund of sales tax from the seller for any reason with respect to a purchase made in this state is not entitled to a remittance for the tax paid on the purchase. A person who receives both a remittance under this section and a refund of sales tax from the seller with respect to the same purchase must immediately repay the remittance to the department. Interest as provided in chapter
82.32
RCW applies to amounts due under this section from the date that the department made the remittance until the amount due under this subsection is paid to the department. A person who receives a remittance with respect to a purchase for which the person had, at the time the person submitted the application for a remittance, already received a refund of sales tax from the seller is also liable for a civil penalty equal to the greater of one hundred dollars or the amount of the remittance obtained in violation of this subsection and is ineligible to receive any further remittances from the department under this section.
(7) The exemption provided by this section is only for the state portion of the sales tax. For purposes of this section, the state portion of the sales tax is not reduced by any local sales tax that is deducted or credited against the state sales tax as provided by law.
(8) The exemption in this section does not apply to sales of cannabis, useable cannabis, or cannabis-infused products.
[
2022 c 16 s 148
;
2019 c 423 s 101
;
2014 c 140 s 17
;
2011 c 7 s 1
;
2010 c 106 s 215
;
2009 c 535 s 512
;
2007 c 135 s 2
;
2003 c 53 s 399
;
1993 c 444 s 1
;
1988 c 96 s 1
;
1982 1st ex.s. c 5 s 1
;
1980 c 37 s 39
. Formerly RCW 82.08.030
(21).]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Finding
—
Intent
—
2019 c 423:
"(1) The legislature finds that counties that border other states and Canada experience a significant problem of residents of Washington state who evade taxes and fees by failing to register their vehicles, aircraft, and vessels in Washington state. According to a 2007 Washington State University study, the department of revenue lost eighty million dollars over the previous five years to persons avoiding taxes and fees in this manner. It was also estimated in the study that twenty thousand vehicles were illegally registered in Oregon to residents of Clark county, Washington. The problem has undoubtedly grown worse in the decade since the study was completed resulting in hundreds of millions of dollars in lost revenue to state and local coffers as these new residents fail to pay their fair share for public services. Moreover, a public safety risk is created when inaccurate information is provided to law enforcement or insurance companies in the event of an accident or infraction.
(2) Current statutes contain monetarily significant penalties that are appropriate given the scope of the harm. It is the intent of the legislature that law enforcement and prosecutors proceed against violators to the fullest extent of the law. In order to give them more tools and ensure compliance with the law, it is the intent of the legislature to set up a deferred finding program consistent with other programs in the state that allows defendants to obtain dismissal of charges if they take certain remedial steps. It is the intent of the legislature that the punishment for those who do not comply with the deferred finding program remain in force and be fully implemented." [
2019 c 423 s 201
.]
Effective date
—
2019 c 423:
"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, 2019." [
2019 c 423 s 301
.]
Effective date
—
2011 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 July 1, 2011." [
2011 c 7 s 2
.]
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Intent
—
Effective date
—
2003 c 53:
See notes following RCW 2.48.180
.
Effective date
—
1988 c 96:
"This act shall take effect July 1, 1989." [
1988 c 96 s 2
.]
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0274
Exemptions
—
Sales of form lumber to person engaged in constructing, repairing, etc., structures for consumers.
The tax levied by RCW 82.08.020
shall not apply to sales of form lumber to any person engaged in the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon or above real property of or for consumers: PROVIDED, That such lumber is used or to be used first by such person for the molding of concrete in a single such contract, project or job and is thereafter incorporated into the product of that same contract, project or job as an ingredient or component thereof.
[
1980 c 37 s 40
. Formerly RCW 82.08.030
(22).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02745
Exemptions
—
Charges for labor and services or sales of tangible personal property related to farmworker housing
—
Exemption certificate
—
Rules.
(Expires January 1, 2032.)
(1) The tax levied by RCW 82.08.020
does not apply to charges made for labor and services rendered by any person in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures, in which at least 50 percent of housing units in the development are used as farmworker housing, or to sales of tangible personal property that becomes an ingredient or component of the buildings or other structures during the course of the constructing, repairing, decorating, or improving the buildings or other structures. The exemption is provided for all housing units in the development and is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department by rule.
(2) The exemption provided in this section for farmworker housing provided on a year-round basis only applies if that housing is built to the current building code for single-family or multifamily dwellings according to the state building code, chapter
19.27
RCW.
(3) Any farmworker housing built under this section must be used according to this section for at least five consecutive years from the date the housing is approved for occupancy, or the full amount of tax otherwise due is immediately due and payable together with interest, but not penalties, from the date the housing is approved for occupancy until the date of payment. If at any time farmworker housing ceases to be used in the manner specified in subsection (2) of this section, the full amount of tax otherwise due is immediately due and payable with interest, but not penalties, from the date the housing ceases to be used as farmworker housing until the date of payment.
(4) The exemption provided in this section does not apply to housing built for the occupancy of an employer, family members of an employer, or persons owning stock or shares in a farm partnership or corporation business. The exemption provided in this section does not apply to housing built exclusively for workers in the United States on an H-2A visa under the United States citizenship and immigration services.
(5) If during any agricultural season in the qualifying five years under subsection (3) of this section the housing is occupied by a farmworker who does not have an H-2A visa, then the housing will be considered not to be exclusively built for workers on an H-2A visa.
(6) For purposes of this section and RCW 82.12.02685, the following definitions apply unless the context clearly requires otherwise.
(a) "Agricultural employer" or "employer" has the same meaning as given in RCW 19.30.010, and includes any employer engaged in aquaculture as defined in RCW 15.85.020
.
(b) "Farm work" means services relating to:
(i) Cultivating the soil, raising or harvesting, or catching, netting, handling, planting, drying, packing, grading, storing, or preserving in its unmanufactured state any agricultural or aquacultural commodity;
(ii) Delivering to storage, market, or a carrier for transportation to market or to processing any agricultural or aquacultural commodity; or
(iii) Working in a processing plant and directly handling agricultural or aquacultural product.
(c) "Farmworker" means a single person, or all members of a household, whether such persons are related or not, if the combined household income earned from farm work is at least $3,000 per calendar year.
(d) "Farmworker housing" means all facilities provided by an agricultural employer, housing authority, local government, state or federal agency, nonprofit community or neighborhood-based organization that is exempt from income tax under section 501(c) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)), or for-profit provider of housing for housing farmworkers on a year-round or seasonal basis, including bathing, food handling, hand washing, laundry, and toilet facilities, single-family and multifamily dwelling units and dormitories, and includes labor camps under RCW 70.114A.110
.
(i) "Farmworker housing" includes:
(A) Housing occupied by a household with at least one member who is a farmworker; and
(B) Housing occupied by a farmworker on a seasonal basis, where the housing is not used as farmworker housing for a portion of the year, such as when it is rented to the general public when not being used for farmworker housing.
(ii) "Farmworker housing" does not include:
(A) Housing regularly provided on a commercial basis to the general public;
(B) Housing provided by a housing authority unless at least eighty percent of the occupants are farmworkers whose adjusted income is less than fifty percent of median family income, adjusted for household size, for the county where the housing is provided; and
(C) Housing provided to farmworkers providing services related to the growing, raising, or producing of cannabis.
(7) This section expires January 1, 2032.
[
2022 c 16 s 149
;
2021 c 250 s 1
;
2014 c 140 s 18
;
2007 c 54 s 14
;
1997 c 438 s 1
;
1996 c 117 s 1
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Tax preference performance statement
—
2021 c 250:
"(1) This section is the tax preference performance statement for the tax preferences contained in sections 1 and 2, chapter 250, Laws of 2021. 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 to 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 increase the supply of farmworker housing.
(4) If a review finds that new farmworker housing is developed utilizing these preferences, then the legislature intends to extend the expiration date of these tax preferences.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state." [
2021 c 250 s 3
.]
Effective date
—
2021 c 250:
"This act takes effect October 1, 2021." [
2021 c 250 s 4
.]
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Effective date
—
1997 c 438:
"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 438 s 3
.]
Effective date
—
1996 c 117:
"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 immediately [March 20, 1996]." [
1996 c 117 s 3
.]
RCW 82.08.0275
Exemptions
—
Sales of and labor and service charges for mining, sorting, crushing, etc., of sand, gravel, and rock from county or city quarry for public road purposes.
The tax levied by RCW 82.08.020
shall not apply to sales of, cost of, or charges made for labor and services performed in respect to the mining, sorting, crushing, screening, washing, hauling, and stockpiling of sand, gravel and rock when such sand, gravel, or rock is taken from a pit or quarry which is owned by or leased to a county or a city, and such sand, gravel, or rock is (1) either stockpiled in said pit or quarry for placement or is placed on the street, road, place, or highway of the county or city by the county or city itself, or (2) sold by the county or city to a county, or a city at actual cost for placement on a publicly owned street, road, place, or highway. The exemption provided for in this section shall not apply to sales of, cost of, or charges made for such labor and services, if the sand, gravel, or rock is used for other than public road purposes or is sold otherwise than as provided for in this section.
[
1980 c 37 s 41
. Formerly RCW 82.08.030
(23).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0277
Exemptions
—
Sales of pollen.
The tax levied by RCW 82.08.020
shall not apply to sales of pollen.
[
1980 c 37 s 43
. Formerly RCW 82.08.030
(25).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0278
Exemptions
—
Sales between political subdivisions resulting from annexation or incorporation.
(Effective until January 1, 2030.)
The tax levied by RCW 82.08.020
does not apply to:
(1) Sales to one political subdivision by another political subdivision directly or indirectly arising out of or resulting from the annexation, merger, or incorporation of any part of the territory of one political subdivision by another; and
(2) Sales to one political subdivision by another political subdivision pursuant to the terms of a contractual consolidation under which the taxpayers that originally paid a sales or use tax continue to benefit from the personal property.
[
2019 c 188 s 1
;
1980 c 37 s 44
. Formerly RCW 82.08.030
(26).]
NOTES:
Tax preference performance statement exemption
—
2019 c 188:
"The provisions of RCW 82.32.808
do not apply to this act." [
2019 c 188 s 3
.]
Expiration date
—
2019 c 188:
"This act expires January 1, 2030." [
2019 c 188 s 4
.]
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
PDF
RCW 82.08.0278
Exemptions
—
Sales between political subdivisions resulting from annexation or incorporation.
(Effective January 1, 2030.)
The tax levied by RCW 82.08.020
shall not apply to sales to one political subdivision by another political subdivision directly or indirectly arising out of or resulting from the annexation or incorporation of any part of the territory of one political subdivision by another.
[
1980 c 37 s 44
. Formerly RCW 82.08.030
(26).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0279
Exemptions
—
Renting or leasing of motor vehicles and trailers to a nonresident for use in the transportation of persons or property across state boundaries.
The tax levied by RCW 82.08.020
shall not apply to the renting or leasing of motor vehicles and trailers to a nonresident of this state for use exclusively in transporting persons or property across the boundaries of this state and in intrastate operations incidental thereto when such motor vehicle or trailer is registered and licensed in a foreign state and for purposes of this exemption the term "nonresident" shall apply to a renter or lessee who has one or more places of business in this state as well as in one or more other states but the exemption for nonresidents shall apply only to those vehicles which are most frequently dispatched, garaged, serviced, maintained and operated from the renter's or lessee's place of business in another state.
[
1980 c 37 s 45
. Formerly RCW 82.08.030
(27).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.02795
Exemptions
—
Sales to free hospitals.
(1) The tax levied by RCW 82.08.020
shall not apply to sales to free hospitals of items reasonably necessary for the operation of, and provision of health care by, free hospitals.
(2) As used in this section, "free hospital" means a hospital that does not charge patients for health care provided by the hospital.
[
1993 c 205 s 1
.]
NOTES:
Effective date
—
1993 c 205:
"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 immediately [May 6, 1993]." [
1993 c 205 s 3
.]
RCW 82.08.02805
Exemptions
—
Sales to qualifying blood, tissue, or blood and tissue banks.
(1) The tax levied by RCW 82.08.020
does not apply to the sale of medical supplies, chemicals, or materials to a qualifying blood bank, a qualifying tissue bank, or a qualifying blood and tissue bank. 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) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by a qualifying blood bank, a qualifying tissue bank, or a qualifying blood and tissue bank 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.
(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) The definitions in RCW 82.04.324
apply to this section.
[
2004 c 82 s 2
;
1995 2nd sp.s. c 9 s 4
.]
NOTES:
Effective date
—
1995 2nd sp.s. c 9:
See note following RCW 84.36.035
.
RCW 82.08.02806
Exemptions
—
Sales of human blood, tissue, organs, bodies, or body parts for medical research and quality control testing.
The tax levied by RCW 82.08.020
shall not apply to sales of human blood, tissue, organs, bodies, or body parts for medical research and quality control testing purposes.
[
1996 c 141 s 1
.]
NOTES:
Effective date
—
1996 c 141:
"This act shall take effect July 1, 1996." [
1996 c 141 s 3
.]
RCW 82.08.02807
Exemptions
—
Sales to organ procurement organization.
(1) The tax levied by RCW 82.08.020
does not apply to the sales of medical supplies, chemicals, or materials to an organ procurement organization exempt under RCW 82.04.326
. This exemption does not apply to the sale of construction materials, office equipment, building equipment, administrative supplies, or vehicles.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Chemical" means any catalyst, solvent, water, acid, oil, or other additive that physically or chemically interacts with blood, bone, or tissue.
(b) "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.
(c) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by an organ procurement organization exempt under RCW 82.04.326
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; or
(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.
[
2020 c 139 s 13
;
2014 c 97 s 306
;
2002 c 113 s 2
.]
NOTES:
Effective date
—
2002 c 113:
See note following RCW 82.04.326
.
RCW 82.08.0281
Exemptions
—
Sales of prescription drugs.
(1) The tax levied by RCW 82.08.020
does not apply to sales of drugs for human use dispensed or to be dispensed to patients, pursuant to a prescription.
(2) The tax levied by RCW 82.08.020
does not apply to sales of drugs or devices used for family planning purposes, including the prevention of conception, for human use dispensed or to be dispensed to patients, pursuant to a prescription.
(3) The tax levied by RCW 82.08.020
does not apply to sales of drugs and devices used for family planning purposes, including the prevention of conception, for human use supplied by a family planning clinic that is under contract with the department of health to provide family planning services.
(4) The following definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this state to prescribe.
(b) "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, alcoholic beverages, cannabis, useable cannabis, or cannabis-infused products:
(i) Recognized in the official United States pharmacopoeia, official homeopathic pharmacopoeia of the United States, or official national formulary, or any supplement to any of them; or
(ii) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(iii) Intended to affect the structure or any function of the body.
(c) "Over-the-counter drug" means a drug that contains a label that identifies the product as a drug required by 21 C.F.R. Sec. 201.66, as amended or renumbered on January 1, 2003. The label includes:
(i) A "drug facts" panel; or
(ii) A statement of the "active ingredient(s)" with a list of those ingredients contained in the compound, substance, or preparation.
[
2022 c 16 s 150
;
2014 c 140 s 19
;
2004 c 153 s 108
;
2003 c 168 s 403
;
1993 sp.s. c 25 s 308
;
1980 c 37 s 46
. Formerly RCW 82.08.030
(28).]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
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
.
Finding
—
1993 sp.s. c 25:
"The legislature finds that prevention is a significant element in the reduction of health care costs. The legislature further finds that taxing some physician prescriptions and not others is unfair to patients. It is, therefore, the intent of the legislature to remove the taxes from prescriptions issued for family planning purposes." [
1993 sp.s. c 25 s 307
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0282
Exemptions
—
Sales of returnable containers for beverages and foods.
The tax levied by RCW 82.08.020
shall not apply to sales of returnable containers for beverages and foods, including but not limited to soft drinks, milk, beer, and mixers.
[
1980 c 37 s 47
. Formerly RCW 82.08.030
(29).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0283
Exemptions
—
Certain medical items.
(1) The tax levied by RCW 82.08.020
shall not apply to sales of:
(a) Prosthetic devices prescribed, fitted, or furnished for an individual by a person licensed under the laws of this state to prescribe, fit, or furnish prosthetic devices, and the components of such prosthetic devices;
(b) Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter
18.36A
RCW; and
(c) Medically prescribed oxygen, including, but not limited to, oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems prescribed for an individual by a person licensed under chapter
18.57
or
18.71
RCW for use in the medical treatment of that individual.
(2) 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 any of the items exempted under subsection (1) of this section.
(3) The exemption in subsection (1) of this section shall not apply to sales of durable medical equipment, other than as specified in subsection (1)(c) of this section, or mobility enhancing equipment.
(4) The definitions in this subsection apply throughout this section.
(a) "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts for a prosthetic device, worn on or in the body to:
(i) Artificially replace a missing portion of the body;
(ii) Prevent or correct a physical deformity or malfunction; or
(iii) Support a weak or deformed portion of the body.
(b) "Durable medical equipment" means equipment, including repair and replacement parts for durable medical equipment that:
(i) Can withstand repeated use;
(ii) Is primarily and customarily used to serve a medical purpose;
(iii) Generally is not useful to a person in the absence of illness or injury; and
(iv) Is not worn in or on the body.
(c) "Mobility enhancing equipment" means equipment, including repair and replacement parts for mobility enhancing equipment that:
(i) Is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle;
(ii) Is not generally used by persons with normal mobility; and
(iii) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(d) The terms "durable medical equipment" and "mobility enhancing equipment" are mutually exclusive.
[
2007 c 6 s 1101
;
2004 c 153 s 101
;
2003 c 168 s 409
;
2001 c 75 s 1
;
1998 c 168 s 2
;
1997 c 224 s 1
;
1996 c 162 s 1
;
1991 c 250 s 2
;
1986 c 255 s 1
;
1980 c 86 s 1
;
1980 c 37 s 48
. Formerly RCW 82.08.030
(30).]
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
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Effective date
—
2001 c 75:
"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 [April 19, 2001]." [
2001 c 75 s 3
.]
Effective date
—
1998 c 168:
See note following RCW 82.04.120
.
Effective date
—
1997 c 224:
"This act takes effect October 1, 1998." [
1997 c 224 s 3
.]
Effective date
—
1996 c 162:
"This act shall take effect July 1, 1996." [
1996 c 162 s 3
.]
Finding
—
Intent
—
1991 c 250:
"(1) The legislature finds:
(a) The existing state policy is to exempt medical oxygen from sales and use tax.
(b) The technology for supplying medical oxygen has changed substantially in recent years. Many consumers of medical oxygen purchase or rent equipment that supplies oxygen rather than purchasing oxygen in gaseous form.
(2) The intent of this act is to bring sales and rental of individual oxygen systems within the existing exemption for medical oxygen, without expanding the essence of the original policy decision that medical oxygen should be exempt from sales and use tax." [
1991 c 250 s 1
.]
Effective date
—
1986 c 255:
"This act shall take effect July 1, 1986." [
1986 c 255 s 3
.]
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0285
Exemptions
—
Sales of ferry vessels to the state or local governmental units
—
Components thereof
—
Labor and service charges.
The tax levied by RCW 82.08.020
shall not apply to sales of ferry vessels to the state of Washington or to a local governmental unit in the state of Washington for use in transporting pedestrians, vehicles, and goods within or outside the territorial waters of the state; also sales of tangible personal property which becomes a component part of such ferry vessels; also sales of or charges made for labor and services rendered in respect to constructing or improving such ferry vessels.
[
1980 c 37 s 50
. Formerly RCW 82.08.030
(32).]
NOTES:
Intent
—
1980 c 37:
See note following RCW 82.04.4281
.
RCW 82.08.0287
Exemptions
—
Sales of passenger motor vehicles as ride-sharing vehicles.
(1) The tax imposed by this chapter does not apply to sales of passenger motor vehicles which are to be used primarily for ride sharing or ride sharing for persons with special transportation needs, as defined in RCW 46.74.010, if the vehicles are used as ride-sharing vehicles for thirty-six consecutive months beginning from the date of purchase.
(2)(a) To qualify for the tax exemption, those passenger motor vehicles with three or more passengers, including the driver, used for ride sharing, must be operated either within the state's eight largest counties that are required to develop commute trip reduction plans as directed by chapter
70A.15
RCW, in other counties, or cities and towns within those counties, that elect to adopt and implement a commute trip reduction plan, or in other counties where the vehicle is registered with or operated by a public transportation agency. Additionally at least one of the following conditions must apply: (i) The vehicle must be operated by a public transportation agency for the benefit of the general public; or (ii) the vehicle must be used by a major employer, as defined in RCW 70A.15.4010
as an element of its commute trip reduction program for their employees; or (iii) the vehicle must be owned and operated by individual employees and must be registered either with the employer as part of its commute trip reduction program or with a public transportation agency. Individual employee owned and operated motor vehicles will require certification that the vehicle is registered with a major employer or a public transportation agency. Major employers who own and operate motor vehicles for their employees must certify that the ride-sharing arrangement conforms to a carpool/vanpool element contained within their commute trip reduction program.
(b) Notwithstanding the ridership requirements under (a) of this subsection (2), unless the vehicle is operated by a public transportation agency, the vehicle must be used for ride sharing in the transport of at least five passengers.
[
2021 c 135 s 6
;
2020 c 20 s 1472
;
2014 c 97 s 503
;
2001 c 320 s 4
;
1996 c 244 s 4
;
1995 c 274 s 2
;
1993 c 488 s 2
;
1980 c 166 s 1
.]
NOTES:
Reviser's note:
The tax preference enacted in section 6, chapter 135, Laws of 2021 expires January 1, 2032, pursuant to the automatic expiration date established in RCW 82.32.805
(1)(a).
Effective date
—
2021 c 135:
See note following RCW 46.18.285
.
Effective date
—
2001 c 320:
See note following RCW 11.02.005
.
Finding
—
1993 c 488:
"The legislature finds that ride sharing and vanpools are the fastest growing transportation choice because of their flexibility and cost-effectiveness. Ride sharing and vanpools represent an effective means for local jurisdictions, transit agencies, and the private sector to assist in addressing the requirements of the Commute Trip Reduction Act, the Growth Management Act, the Americans with Disabilities Act, and the Clean Air Act." [
1993 c 488 s 1
.]
Annual recertification rule
—
Report
—
1993 c 488:
"The department shall adopt by rule a process requiring annual recertification upon renewal for vehicles registered under *RCW 46.16.023
to discourage abuse of tax exemptions under RCW 82.08.0287, 82.12.0282, and
82.44.015
. The department of licensing in consultation with the department of transportation shall submit a report to the legislative transportation committee and the house and senate standing committees on transportation by July 1, 1996, assessing the effectiveness of the department of licensing at limiting tax exemptions to bona fide ride-sharing vehicles." [
1993 c 488 s 6
.]
*Reviser's note:
RCW 46.16.023
was repealed by 2010 c 161 s 438, effective July 1, 2011.
Severability
—
1980 c 166:
"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." [
1980 c 166 s 4
.]
Ride-sharing vehicles
—
Special plates: RCW 46.18.285
.
RCW 82.08.02875
Exemptions
—
Vehicle parking charges subject to tax at stadium and exhibition center.
The tax levied by RCW 82.08.020
does not apply to vehicle parking charges that are subject to tax under RCW 36.38.040
.
[
1997 c 220 s 203
(Referendum Bill No. 48, approved June 17, 1997).]
NOTES:
Referendum
—
Other legislation limited
—
Legislators' personal intent not indicated
—
Reimbursements for election
—
Voters' pamphlet, election requirements
—
1997 c 220:
See RCW 36.102.800
through
36.102.803
.
RCW 82.08.0288
Exemptions
—
Lease of certain irrigation equipment.
The tax levied by RCW 82.08.020
does not apply to the lease of irrigation equipment if:
(1) The irrigation equipment was purchased by the lessor for the purpose of irrigating land controlled by the lessor;
(2) The lessor has paid tax under RCW 82.08.020
or
82.12.020
in respect to the irrigation equipment;
(3) The irrigation equipment is attached to the land in whole or in part;
(4) The irrigation equipment is not used in the production of cannabis; and
(5) The irrigation equipment is leased to the lessee as an incidental part of the lease of the underlying land to the lessee and is used solely on such land.
[
2022 c 16 s 151
;
2014 c 140 s 20
;
1983 1st ex.s. c 55 s 5
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
RCW 82.08.0291
Exemptions
—
Sales of amusement and recreation services or personal services by nonprofit youth organization
—
Local government physical fitness classes.
The tax imposed by RCW 82.08.020
does not apply to sales defined as a sale at retail and retail sale under *RCW 82.04.050
(3)(g) or (15), by a nonprofit youth organization, as defined in RCW 82.04.4271, to members of the organization; and the tax does not apply to physical fitness classes provided by a local government.
[
2015 c 169 s 4
;
2000 c 103 s 8
;
1994 c 85 s 1
;
1981 c 74 s 2
.]
NOTES:
*
Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (3)(g) to subsection (3)(m), effective October 1, 2025.
Effective date
—
2015 c 169:
See note following RCW 82.04.050
.
Effective date
—
1994 c 85:
"This act shall take effect July 1, 1994." [
1994 c 85 s 2
.]
RCW 82.08.02915
Exemptions
—
Sales used by health or social welfare organizations for alternative housing for youth in crisis.
The tax levied by RCW 82.08.020
shall not apply to sales to health or social welfare organizations, as defined in RCW 82.04.431, of items necessary for new construction of alternative housing for youth in crisis, so long as the facility will be a licensed agency under chapter
74.15
RCW, upon completion.
[
1998 c 183 s 1
;
1997 c 386 s 56
;
1995 c 346 s 1
.]
NOTES:
Effective date
—
1997 c 386 ss 56, 57:
"Sections 56 and 57 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, 1997." [
1997 c 386 s 71
.]
Effective date
—
1995 c 346:
"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 immediately [May 13, 1995]." [
1995 c 346 s 4
.]
RCW 82.08.02917
Youth in crisis
—
Definition
—
Limited purpose.
For the purposes of RCW 82.08.02915
and
82.12.02915, "youth in crisis" means any youth under eighteen years of age who is either: Homeless; a runaway from the home of a parent, guardian, or legal custodian; abused; neglected; abandoned by a parent, guardian, or legal custodian; or suffering from a substance abuse or mental disorder.
[
1995 c 346 s 3
.]
NOTES:
Effective date
—
1995 c 346:
See note following RCW 82.08.02915
.
RCW 82.08.0293
Exemptions
—
Sales of food and food ingredients.
(1) The tax levied by RCW 82.08.020
does not apply to sales of food and food ingredients. "Food and food ingredients" means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Food and food ingredients" does not include:
(a) "Alcoholic beverages," which means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume;
(b) "Tobacco," which means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco; and
(c) Cannabis, useable cannabis, or cannabis-infused products.
(2) The exemption of "food and food ingredients" provided for in subsection (1) of this section does not apply to prepared food, soft drinks, bottled water, or dietary supplements. The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Bottled water" means water that is placed in a safety sealed container or package for human consumption. Bottled water is calorie free and does not contain sweeteners or other additives except that it may contain: (i) Antimicrobial agents; (ii) fluoride; (iii) carbonation; (iv) vitamins, minerals, and electrolytes; (v) oxygen; (vi) preservatives; and (vii) only those flavors, extracts, or essences derived from a spice or fruit. "Bottled water" includes water that is delivered to the buyer in a reusable container that is not sold with the water.
(b) "Dietary supplement" means any product, other than tobacco, intended to supplement the diet that:
(i) Contains one or more of the following dietary ingredients:
(A) A vitamin;
(B) A mineral;
(C) An herb or other botanical;
(D) An amino acid;
(E) A dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
(F) A concentrate, metabolite, constituent, extract, or combination of any ingredient described in this subsection;
(ii) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for ingestion in such form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and
(iii) Is required to be labeled as a dietary supplement, identifiable by the "supplement facts" box found on the label as required pursuant to 21 C.F.R. Sec. 101.36, as amended or renumbered as of January 1, 2003.
(c)(i) "Prepared food" means:
(A) Food sold in a heated state or heated by the seller;
(B) Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used to transport the food; or
(C) Two or more food ingredients mixed or combined by the seller for sale as a single item, except:
(I) Food that is only cut, repackaged, or pasteurized by the seller; or
(II) Raw eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal food and drug administration in chapter 3, part 401.11 of The Food Code, published by the food and drug administration, as amended or renumbered as of January 1, 2003, so as to prevent foodborne illness.
(ii) Food is "sold with eating utensils provided by the seller" if:
(A) The seller's customary practice for that item is to physically deliver or hand a utensil to the customer with the food or food ingredient as part of the sales transaction. If the food or food ingredient is prepackaged with a utensil, the seller is considered to have physically delivered a utensil to the customer unless the food and utensil are prepackaged together by a food manufacturer classified under sector 311 of the North American industry classification system (NAICS);
(B) A plate, glass, cup, or bowl is necessary to receive the food or food ingredient, and the seller makes those utensils available to its customers; or
(C)(I) The seller makes utensils available to its customers, and the seller has more than seventy-five percent prepared food sales. For purposes of this subsection (2)(c)(ii)(C), a seller has more than seventy-five percent prepared food sales if the seller's gross retail sales of prepared food under (c)(i)(A), (c)(i)(C), and (c)(ii)(B) of this subsection equal more than seventy-five percent of the seller's gross retail sales of all food and food ingredients, including prepared food, soft drinks, and dietary supplements.
(II) However, even if a seller has more than seventy-five percent prepared food sales, four servings or more of food or food ingredients packaged for sale as a single item and sold for a single price are not "sold with utensils provided by the seller" unless the seller's customary practice for the package is to physically hand or otherwise deliver a utensil to the customer as part of the sales transaction. Whenever available, the number of servings included in a package of food or food ingredients must be determined based on the manufacturer's product label. If no label is available, the seller must reasonably determine the number of servings.
(III) The seller must determine a single prepared food sales percentage annually for all the seller's establishments in the state based on the prior year of sales. The seller may elect to determine its prepared food sales percentage based either on the prior calendar year or on the prior fiscal year. A seller may not change its elected method for determining its prepared food percentage without the written consent of the department. The seller must determine its annual prepared food sales percentage as soon as possible after accounting records are available, but in no event later than ninety days after the beginning of the seller's calendar or fiscal year. A seller may make a good faith estimate of its first annual prepared food sales percentage if the seller's records for the prior year are not sufficient to allow the seller to calculate the prepared food sales percentage. The seller must adjust its good faith estimate prospectively if its relative sales of prepared foods in the first ninety days of operation materially depart from the seller's estimate.
(iii) "Prepared food" does not include the following items, if sold without eating utensils provided by the seller:
(A) Food sold by a seller whose proper primary NAICS classification is manufacturing in sector 311, except subsector 3118 (bakeries), as provided in the "North American industry classification system
—
United States, 2002";
(B) Food sold in an unheated state by weight or volume as a single item; or
(C) Bakery items. The term "bakery items" includes bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, or tortillas.
(d) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. Soft drinks do not include beverages that contain: Milk or milk products; soy, rice, or similar milk substitutes; or greater than fifty percent of vegetable or fruit juice by volume.
(3) Notwithstanding anything in this section to the contrary, the exemption of "food and food ingredients" provided in this section applies to food and food ingredients that are furnished, prepared, or served as meals:
(a) Under a state administered nutrition program for the aged as provided for in the older Americans act (P.L. 95-478 Title III) and RCW 74.38.040
(6);
(b) That are provided to senior citizens, individuals with disabilities, or low-income persons by a nonprofit organization organized under chapter
24.03A
or
24.12
RCW; or
(c) That are provided to residents, sixty-two years of age or older, of a qualified low-income senior housing facility by the lessor or operator of the facility. The sale of a meal that is billed to both spouses of a marital community or both domestic partners of a domestic partnership meets the age requirement in this subsection (3)(c) 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" means a facility:
(i) That meets the definition of a qualified low-income housing project under 26 U.S.C. Sec. 42 of the federal internal revenue code, as existing on August 1, 2009;
(ii) That has been partially funded under 42 U.S.C. Sec. 1485; and
(iii) For which the lessor or operator has at any time been entitled to claim a federal income tax credit under 26 U.S.C. Sec. 42 of the federal internal revenue code.
(4)(a) Subsection (1) of this section notwithstanding, the retail sale of food and food ingredients is subject to sales tax under RCW 82.08.020
if the food and food ingredients are sold through a vending machine. Except as provided in (b) of this subsection, the selling price of food and food ingredients sold through a vending machine for purposes of RCW 82.08.020
is fifty-seven percent of the gross receipts.
(b) For soft drinks, bottled water, and hot prepared food and food ingredients, other than food and food ingredients which are heated after they have been dispensed from the vending machine, the selling price is the total gross receipts of such sales divided by the sum of one plus the sales tax rate expressed as a decimal.
(c) For tax collected under this subsection (4), the requirements that the tax be collected from the buyer and that the amount of tax be stated as a separate item are waived.
[
2022 c 16 s 152
;
2021 c 176 s 5249
;
2019 c 8 s 401
;
2017 3rd sp.s. c 28 s 101
;
2014 c 140 s 22
;
2011 c 2 s 301
(Initiative Measure No. 1107, approved November 2, 2010);
2010 1st sp.s. c 23 s 902
; (2010 1st sp.s. c 23 s 901 expired July 1, 2010);
2010 c 106 s 216
;
2009 c 483 s 2
;
2004 c 153 s 201
;
2003 c 168 s 301
;
1988 c 103 s 1
;
1986 c 182 s 1
;
1985 c 104 s 1
;
1982 1st ex.s. c 35 s 33
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
2021 c 176:
See note following RCW 24.03A.005
.
Effective date
—
2019 c 8 ss 105, 301, 302, 401, and 704:
See note following RCW 82.08.010
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Existing rights and liability
—
Severability
—
Application
—
Effective dates
—
2017 3rd sp.s. c 28:
See notes following RCW 82.08.0531
.
Findings
—
2011 c 2 (Initiative Measure No. 1107):
"The people of the state of Washington in enacting this initiative measure find:
(1) The 2010 legislature adopted legislation that imposed new or higher taxes on many common food and beverage products, increasing the tax burden on Washington consumers and businesses by hundreds of millions of dollars;
(2) Taxes on food and beverages hurt all Washington consumers, and especially hurt lower and middle income taxpayers who can least afford it;
(3) The legislature's tax increases on food and beverages come at a time when Washington residents and businesses already face an economic crisis;
(4) The process the legislature used to increase taxes on food and beverages did not provide adequate public input on or scrutiny of the proposed tax increases;
(5) Washington residents already pay among the highest sales taxes in the country;
(6) The legislature's tax increases on food and beverages hurt Washington food and beverage producers and retail businesses by making their products more costly and less competitive;
(7) The legislature's tax increases on food and beverages will hurt Washington's economy and cause the loss of many local jobs; and
(8) The legislature's tax increases on food and beverages arbitrarily and unfairly impose higher taxes on some food and beverage products but not on others that are similar or essentially the same.
For these reasons, the people repeal the food and beverage taxes imposed by the 2010 legislature." [
2011 c 2 s 101
(Initiative Measure No. 1107, approved November 2, 2010).]
Construction
—
2011 c 2 (Initiative Measure No. 1107):
"The provisions of this act are to be construed liberally so as to effectuate its intent." [
2011 c 2 s 501
(Initiative Measure No. 1107, approved November 2, 2010).]
Expiration date
—
2010 1st sp.s. c 23 ss 106, 901, and 1201:
See note following RCW 82.04.2907
.
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
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Finding
—
Intent
—
2009 c 483:
"The legislature finds that low-income senior citizens are one of the most vulnerable segments of our population who often find it difficult to find safe and clean housing that is also affordable. The federal government has identified this population as being at risk. The federal government provides income tax credits and favorable financing to encourage developers and operators to provide safe and clean housing for our low-income senior citizens. There are only four such facilities in the state, and it is doubtful that any new ones will be built in the future. These four facilities offer "service packages" to their residents, which may include meals, housekeeping, recreation, laundry, and transportation. Washington's sales and use tax law provides generally that when multiple goods and services are offered for one nonitemized price, the entire transaction is subject to sales or use tax if any of the component goods or services are subject to sales tax. Consequently, in order to provide tax relief to these vulnerable tenants, the legislature intends to establish sales and use tax exemptions for the sale of service packages and to meals sold outside of a service package when provided by the lessor or operator of these senior housing facilities to tenants who are at least sixty-two years old." [
2009 c 483 s 1
.]
Effective date
—
2009 c 483:
"This act takes effect August 1, 2009." [
2009 c 483 s 6
.]
Retroactive effective date
—
Effective date
—
2004 c 153:
"(1) Section 201 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 retroactively takes effect January 1, 2004.
(2) This act takes effect July 1, 2004, except section 201 of this act." [
2004 c 153 s 501
.]
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Effective date
—
1988 c 103:
"This 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 June 1, 1988." [
1988 c 103 s 4
.]
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
RCW 82.08.0294
Exemptions
—
Sales of feed for cultivating or raising fish for sale.
The tax levied by RCW 82.08.020
shall not apply to sales of feed to persons for use in the cultivating or raising for sale of fish entirely within confined rearing areas on the person's own land or on land in which the person has a present right of possession.
[
1985 c 148 s 3
.]
RCW 82.08.0296
Exemptions
—
Sales of feed consumed by livestock at a public livestock market.
The tax levied by RCW 82.08.020
shall not apply to sales of feed consumed by livestock at a public livestock market.
[
1986 c 265 s 1
.]
RCW 82.08.0297
Exemptions
—
Sales of food purchased under the supplemental nutrition assistance program.
(1) The tax levied by RCW 82.08.020
does not apply to sales of eligible foods that are purchased with benefits under the supplemental nutrition assistance program or successor program, notwithstanding anything to the contrary in RCW 82.08.0293
.
(2) When a purchase of eligible foods is made with a combination of benefits under the supplemental nutrition assistance program or successor program and cash, check, or similar payment, the cash, check, or similar payment must be applied first to food products exempt from tax under RCW 82.08.0293
whenever possible.
(3) As used in this section:
(a) "Eligible foods" means foods that are eligible for purchase with benefits under the supplemental nutrition assistance program or successor program.
(b) "Supplemental nutrition assistance program" refers to a food assistance program that is administered, at the federal level, by the United States department of agriculture, and was formerly known as the food stamp program.
[
2011 c 174 s 103
;
1998 c 79 s 18
;
1987 c 28 s 1
.]
NOTES:
Effective date
—
1987 c 28:
"This act shall take effect October 1, 1987." [
1987 c 28 s 3
.]
RCW 82.08.0298
Exemptions
—
Sales of diesel fuel for use in operating watercraft in commercial deep sea fishing or commercial passenger fishing boat operations outside the state.
The tax levied by RCW 82.08.020
shall not apply to sales of diesel fuel for use in the operation of watercraft in commercial deep sea fishing operations or commercial passenger fishing boat operations by persons who are regularly engaged in the business of commercial deep sea fishing or commercial passenger fishing boat operations outside the territorial waters of this state.
For purposes of this section, a person is not regularly engaged in the business of commercial deep sea fishing or the operation of a commercial passenger fishing boat if the person has gross receipts from these operations of less than five thousand dollars a year.
[
1987 c 494 s 1
.]
RCW 82.08.0299
Exemptions
—
Emergency lodging for homeless persons
—
Conditions.
(1) The tax levied by RCW 82.08.020
shall not apply to emergency lodging provided for homeless persons for a period of less than thirty consecutive days under a shelter voucher program administered by an eligible organization.
(2) For the purposes of this exemption, an eligible organization includes only cities, towns, and counties, or their respective agencies, and groups providing emergency food and shelter services.
[
1988 c 61 s 1
.]
NOTES:
Effective date
—
1988 c 61:
"This act shall take effect July 1, 1988." [
1988 c 61 s 4
.]
RCW 82.08.031
Exemptions
—
Sales to artistic or cultural organizations of certain objects acquired for exhibition or presentation.
The tax levied by RCW 82.08.020
shall not apply to sales to artistic or cultural organizations of objects which are acquired for the purpose of exhibition or presentation to the general public if the objects are:
(1) Objects of art;
(2) Objects of cultural value;
(3) Objects to be used in the creation of a work of art, other than tools; or
(4) Objects to be used in displaying art objects or presenting artistic or cultural exhibitions or performances.
[
1981 c 140 s 4
.]
NOTES:
"Artistic or cultural organization" defined: RCW 82.04.4328
.