RCW 82.04.4489
Credit
—
Motion picture competitiveness program.
(1) Subject to the limitations in this section, a credit is allowed against the tax imposed under this chapter for contributions made by a person to a Washington motion picture competitiveness program.
(2) The person must make the contribution before claiming a credit authorized under this section. Credits earned under this section may be claimed against taxes due for the calendar year in which the contribution is made. The amount of credit claimed for a reporting period may not exceed the tax otherwise due under this chapter for that reporting period. No person may claim more than $1,000,000 of credit in any calendar year, including credit carried over from a previous calendar year. No refunds may be granted for any unused credits.
(3) The maximum credit that may be earned for each calendar year under this section for a person is limited to the lesser of $1,000,000 or an amount equal to 100 percent of the contributions made by the person to a program during the calendar year.
(4) Except as provided under subsection (5) of this section, a tax credit claimed under this section may not be carried over to another year.
(5) Any amount of tax credit otherwise allowable under this section not claimed by the person in any calendar year may be carried over and claimed against the person's tax liability for the next succeeding calendar year. Any credit remaining unused in the next succeeding calendar year may be carried forward and claimed against the person's tax liability for the second succeeding calendar year; and any credit not used in that second succeeding calendar year may be carried over and claimed against the person's tax liability for the third succeeding calendar year, but may not be carried over for any calendar year thereafter.
(6) Credits are available on a first-in-time basis. The department must disallow any credits, or portion thereof, that would cause the total amount of credits claimed under this section during any calendar year to exceed $15,000,000. If this limitation is reached, the department must notify all Washington motion picture competitiveness programs that the annual statewide limit has been met. In addition, the department must provide written notice to any person who has claimed tax credits in excess of the limitation in this subsection. The notice must indicate the amount of tax due and provide that the tax be paid within 30 days from the date of the notice. The department may not assess penalties and interest as provided in chapter
82.32
RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.
(7) To claim a credit under this section, a person must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in an electronic format. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050
.
(8) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
(9) A Washington motion picture competitiveness program must provide to the department, upon request, such information needed to verify eligibility for credit under this section, including information regarding contributions received by the program.
(10) The department may not allow any credit under this section before July 1, 2006.
(11) For the purposes of this section, "Washington motion picture competitiveness program" or "program" means an organization established pursuant to chapter
43.365
RCW.
(12) Persons claiming a credit against the tax imposed under this chapter for contributions made to a Washington motion picture competitiveness program are exempt from the annual reporting requirements in RCW 82.32.534
and
43.365.040
.
(13) No credit may be earned for contributions made on or after July 1, 2030.
[
2023 c 374 s 9
;
2022 c 270 s 5
;
2017 3rd sp.s. c 37 s 1102
;
2012 c 189 s 4
;
2008 c 85 s 3
;
2006 c 247 s 5
.]
RCW 82.04.449
Credit
—
Washington customized employment training program
—
Report to the legislature.
(Expires July 1, 2033.)
(1) In computing the tax imposed under this chapter, a credit is allowed for participants in the Washington customized employment training program created in RCW 28B.67.020
. The credit allowed under this section is equal to 50 percent of the value of a participant's payments to the employment training finance account created in RCW 28B.67.030
. If a participant in the program does not meet the requirements of RCW 28B.67.020
(2)(b)(ii), the participant must remit to the department the value of any credits taken plus interest. The credit earned by a participant in one calendar year may be carried over to be credited against taxes incurred in a subsequent calendar year. No credit may be allowed for repayment of training allowances received from the Washington customized employment training program on or after July 1, 2031.
(2) A person claiming the credit provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(3) By December 31, 2028, the college board, as defined in RCW 28B.50.030, shall submit to the higher education committees of the legislature a report on:
(a) The distribution of credit eligibility by county, as indicated by participants in the Washington customized employment training program created in RCW 28B.67.020
;
(b) The distribution of qualified training institutions that provided trainings under the Washington customized employment training program, by county; and
(c) Efforts taken by the college board to encourage use of the credit by a greater variety of industries and participation of a greater variety of qualified training institutions, as defined in RCW 28B.67.010
.
(4) This section expires July 1, 2033.
[
2025 c 289 s 2
;
2021 c 116 s 3
;
2017 c 135 s 20
;
2012 c 46 s 3
;
2010 c 114 s 121
;
2009 c 296 s 3
;
2006 c 112 s 5
.]
NOTES:
Tax preference performance statement
—
2025 c 289 s 2:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 289, Laws of 2025. 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 this tax preference as one intended to accomplish a general purpose, as indicated in RCW 82.32.808
(2)(f), which is to provide customized workforce development and skill development training that enhances worker skill sets.
(3) It is the legislature's specific public policy objective to provide customized training assistance that retains and expands existing businesses in Washington.
(4) If a review finds that 75 percent of participating businesses complete the training and repay the customized employment training program loan, then the legislature intends to extend the expiration date of this tax preference.
(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." [
2025 c 289 s 3
.]
Findings
—
Intent
—
2025 c 289:
"The legislature finds that affordable employer-specific worker training not only helps businesses but also improves the quality of life for workers and communities. The legislature also finds that 75 percent of participating businesses completed customized training under the program created in RCW 28B.67.020
and repaid the customized employment training program training allowance, a performance threshold identified by the 67th legislature as satisfactory to extend the expiration date of the tax credit established in RCW 82.04.449
. It is the intent of the legislature to aid in attracting and retaining jobs in Washington by extending the expiration of the customized employment training program tax credit to July 1, 2031." [
2025 c 289 s 1
.]
Finding
—
2021 c 116:
"The legislature finds that due to the COVID-19 pandemic, there is new urgency for employer-affordable programs supporting worker training. It is the objective of the legislature to aid in the recruiting, retaining, and expanding of existing small businesses in Washington by extending the expiration of the customized employment training program tax credit to July 1, 2026." [
2021 c 116 s 1
.]
Tax preference performance statement
—
2021 c 116:
"(1) This section is the tax preference performance statement for the tax preference contained in section 3, chapter 116, Laws of 2021. 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 to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to accomplish a general purpose, to provide customized workforce development and skill development training that enhance worker skill sets.
(3) It is the legislature's specific public policy objective to provide customized training assistance that retains and expands existing businesses in Washington.
(4) If a review finds that 75 percent of participating businesses complete the training and repay the customized employment training program loan, then the legislature intends to extend the expiration date of this tax preference.
(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 116 s 2
.]
Effective date
—
2021 c 116:
"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, 2021." [
2021 c 116 s 4
.]
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
RCW 82.04.4496
Credit
—
Clean alternative fuel commercial vehicles.
(1)(a)(i) A person who is taxable under this chapter is allowed a credit against the tax imposed in this chapter according to the gross vehicle weight rating of the vehicle and the incremental cost of the vehicle purchased above the purchase price of a comparable conventionally fueled vehicle. The credit is limited, as set forth in the table below, to the lesser of the incremental cost amount or the maximum credit amount per vehicle purchased, and subject to a maximum annual credit amount per vehicle class.
Gross Vehicle Weight
Incremental Cost Amount
Maximum Credit Amount
Per Vehicle
Maximum Annual Credit
Per Vehicle Class
Up to 14,000 pounds
75% of incremental cost
$25,000
$2,000,000
14,001 to 26,500 pounds
75% of incremental cost
$50,000
$2,000,000
Above 26,500 pounds
75% of incremental cost
$100,000
$2,000,000
(ii) A person who is taxable under this chapter is allowed a credit against the tax imposed in this chapter for up to 50 percent of the cost to purchase alternative fuel vehicle infrastructure, tangible personal property that will become a component of alternative fuel vehicle infrastructure, and installation and construction of alternative fuel vehicle infrastructure, but excluding the cost of property acquisition and site improvement related to the installation of alternative fuel vehicle infrastructure. The credit is subject to a maximum annual credit amount of $2,000,000.
(b) On September 1st of each year, any unused credits from any category identified in (a) of this subsection must be made available to applicants applying for credits under any other category identified in (a) of this subsection, subject to the maximum annual and total credit amounts identified in this subsection. The credit established in this section and RCW 82.16.0496
is subject to a maximum annual credit amount of $6,000,000, and a maximum total credit amount of $32,500,000 since the credit became available on July 15, 2015.
(c) The credit provided in (a)(i) of this subsection is available for the lease of a vehicle. The credit amount for a leased vehicle is equal to the credit in (a)(i) of this subsection multiplied by the lease reduction factor. The person claiming the credit for a leased vehicle must be the lessee as identified in the lease contract.
(2) A person who is taxable under this chapter is allowed, subject to the maximum annual credit per category in subsection (1)(a) of this section, a credit against the tax imposed in this chapter for the lesser of $25,000 or 50 percent of the costs of converting a commercial vehicle to be principally powered by a clean alternative fuel with a United States environmental protection agency certified conversion.
(3) The total credits under subsection (1)(a)(i) of this section may not exceed the lesser of $250,000 or 25 vehicles per person per calendar year.
(4) A person may not receive credit under this section for amounts claimed as credits under chapter
82.16
RCW.
(5) Credits are available on a first-in-time basis.
(a) The department must disallow any credits, or portion thereof, that would cause the total amount of credits claimed under this section, and RCW 82.16.0496, during any calendar year to exceed $6,000,000. The department must provide notification on its website monthly on the amount of credits that have been applied for, the amount issued, and the amount remaining before the statewide annual limit is reached. In addition, the department must provide written notice to any person who has applied to claim tax credits in excess of the limitation in this subsection.
(b) The department must disallow any credits, or portion thereof, that would cause the total amount of credits claimed beginning July 15, 2015, under this section and RCW 82.16.0496
to exceed $32,500,000. The department must provide notification on its website monthly on the total amount of credits that have been applied for, the amount issued, and the amount remaining before the statewide limit is reached. In addition, the department must provide written notice to any person who has applied to claim tax credits in excess of the limitation in this subsection.
(6) For the purposes of the limits provided in this section, a credit must be counted against such limits for the calendar year in which the credit is earned.
(7) To claim a credit under this section a person must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. No refunds may be granted for credits under this section.
(8) To claim a credit under this section, the person applying must:
(a) Complete an application for the credit which must include:
(i) The name, business address, and tax identification number of the applicant;
(ii) A quote or unexecuted copy of the purchase requisition or order for the vehicle, infrastructure, infrastructure components, infrastructure construction, or infrastructure installation;
(iii) The type of alternative fuel to be used by the vehicle or supported by the infrastructure;
(iv) The incremental cost of the alternative fuel system for vehicle credits;
(v) The anticipated delivery date of the vehicle, the anticipated delivery date of the infrastructure or infrastructure components, the anticipated construction completion date of the infrastructure, or the anticipated installation completion date of the infrastructure;
(vi) The estimated annual fuel use of the vehicle in the anticipated duties or the estimated annual fuel to be supplied by the infrastructure;
(vii) The gross weight of each vehicle for vehicle credits;
(viii) For leased vehicles, a copy of the lease contract that includes the gross capitalized cost, residual value, and name of the lessee; and
(ix) Any other information deemed necessary by the department to support administration or reporting of the program.
(b) Within 15 days of notice of credit availability from the department, provide notice of intent to claim the credit including:
(i) A copy of the order for the vehicle or infrastructure-related item, including the total cost for the vehicle or infrastructure-related item;
(ii) The anticipated delivery date of the vehicle or infrastructure or infrastructure component, which must be within one year of acceptance of the credit;
(iii) The anticipated construction or installation completion date of the infrastructure, which must be within two years of acceptance of the credit; and
(iv) Any other information deemed necessary by the department to support administration or reporting of the program.
(c) Provide final documentation within 30 days of receipt of the vehicle or infrastructure or infrastructure components or of completion of construction or installation of the infrastructure, including:
(i) A copy of the final invoice for the vehicle or infrastructure-related items;
(ii) A copy of the factory build sheet or equivalent documentation;
(iii) The vehicle identification number of each vehicle;
(iv) The incremental cost of the alternative fuel system for vehicle credits;
(v) Attestations signed by both the seller and purchaser of each vehicle attesting that the incremental cost of the alternative fuel system includes only the costs necessary for the vehicle to run on alternative fuel and no other vehicle options, equipment, or costs; and
(vi) Any other information deemed necessary by the department to support administration or reporting of the program.
(9) A person applying for credit under subsection (8) of this section may apply for multiple vehicles on the same application, but the application must include the required information for each vehicle included in the application. A separate application is required for infrastructure-related items, but all infrastructure-related items at a single location may be included in a single application provided the required information for each infrastructure-related item is included in the application.
(10) To administer the credits, the department must, at a minimum:
(a) Provide notification on its website monthly of the amount of credits that have been applied for, claimed, and the amount remaining before the statewide annual limit and total limit are reached;
(b) Within 15 days of receipt of the application, notify persons applying of the availability of tax credits in the year in which the vehicles or infrastructure applied for are anticipated to be delivered, constructed, or installed;
(c) Within 15 days of receipt of the notice of intent to claim the tax credit, notify the applicant of the approval, denial, or missing information in their notice; and
(d) Within 15 days of receipt of final documentation, review the documentation and notify the person applying of the acceptance of their final documentation.
(11) If a person fails to supply the information as required in subsection (8) of this section, the department must deny the application.
(12)(a) Taxpayers are only eligible for a credit under this section based on:
(i) Sales or leases of new commercial vehicles and qualifying used commercial vehicles with propulsion units that are principally powered by a clean alternative fuel;
(ii) Costs to modify a commercial vehicle, including sales of tangible personal property incorporated into the vehicle and labor or service expenses incurred in modifying the vehicle, to be principally powered by a clean alternative fuel; or
(iii) Sales of alternative fuel vehicle infrastructure or infrastructure components, or the cost of construction or installation of alternative fuel vehicle infrastructure.
(b) A credit is earned when the purchaser or the lessee takes receipt of the qualifying commercial vehicle or infrastructure-related item, the vehicle conversion is complete, or the construction or installation of the infrastructure is complete.
(13) A credit earned during one calendar year may be carried over to be credited against taxes incurred in the subsequent calendar year, but may not be carried over a second year.
(14) The department must conduct outreach to interested parties to obtain input on how best to streamline the application process required for the credit made available in this section and RCW 82.16.0496
to further adoption of alternative fuel technologies in commercial vehicle fleets, and must incorporate the findings resulting from this outreach effort into the rules and practices it adopts to implement and administer this section and RCW 82.16.0496
to the extent permitted under law.
(15) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Alternative fuel vehicle infrastructure" means structures, machinery, and equipment necessary and integral to support a clean alternative fuel vehicle.
(b) "Auto transportation company" means any corporation or person owning, controlling, operating, or managing any motor propelled vehicle, used in the business of transporting persons for compensation over public highways within the state of Washington, between fixed points or over a regular route. For the purposes of this section, "auto transportation company" also includes the following categories of providers irrespective of whether they provide service between fixed points or over a regular route: "Private, nonprofit transportation provider" as defined in RCW 81.66.010, "charter party carrier" as defined in RCW 81.70.020, and paratransit service providers who primarily provide special needs transportation to individuals with disabilities and the elderly.
(c) "Clean alternative fuel" means electricity, dimethyl ether, hydrogen, methane, natural gas, liquefied natural gas, compressed natural gas, or propane.
(d) "Commercial vehicle" means any commercial vehicle that is purchased by a private business and that is used exclusively in the provision of commercial services or the transportation of commodities, merchandise, produce, refuse, freight, animals, or passengers, and that is displaying a Washington state license plate. All commercial vehicles that provide transportation to passengers must be operated by an auto transportation company.
(e) "Gross capitalized cost" means the agreed upon value of the commercial vehicle and including any other items a person pays over the lease term that are included in such cost.
(f) "Lease reduction factor" means the vehicle gross capitalized cost less the residual value, divided by the gross capitalized cost.
(g) "Qualifying used commercial vehicle" means vehicles that:
(i) Have an odometer reading of less than 450,000 miles;
(ii) Are less than 10 years past their original date of manufacture;
(iii) Were modified after the initial purchase with a United States environmental protection agency certified conversion that would allow the propulsion units to be principally powered by a clean alternative fuel; and
(iv) Are being sold for the first time after modification.
(h) "Residual value" means the lease-end value of the vehicle as determined by the lessor, at the end of the lease term included in the lease contract.
(16) Credits may be earned under this section from January 1, 2016, until the maximum total credit amount in subsection (1)(b) of this section is reached, except for credits for leased vehicles, which may be earned from July 1, 2016, until the maximum total credit amount in subsection (1)(b) of this section is reached.
[
2022 c 182 s 307
;
2019 c 287 s 8
;
2017 c 116 s 1
. Prior:
2016 c 29 s 1
;
2015 3rd sp.s. c 44 s 411
.]
NOTES:
Intent
—
Effective date
—
2022 c 182:
See notes following RCW 70A.65.240
.
Effective date
—
2019 c 287 ss 8 and 13:
"Sections 8 and 13 of this act take effect January 1, 2020." [
2019 c 287 s 25
.]
Tax preference performance statement
—
2019 c 287 ss 8-14:
"This section is the tax preference performance statement for the tax preferences contained in sections 8 through 14, chapter 287, Laws of 2019. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes the tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808
(2)(a).
(2) It is the legislature's specific public policy objective to increase the use of clean alternative fuel vehicles in Washington. It is the legislature's intent to establish and extend tax incentive programs for alternative fuel vehicles and related infrastructure by: (a) Reinstating the sales and use tax exemption on certain clean alternative fuel vehicles in order to reduce the price charged to customers for clean alternative fuel vehicles; (b) extending the business and occupation and public utility tax credit for clean alternative fuel commercial vehicles and expanding it to include clean alternative fuel infrastructure; (c) extending the sales and use tax exemption for electric vehicle batteries, fuel cells, and infrastructure and expanding it to include the electric battery and fuel cell components of electric buses and zero emissions buses; and (d) extending the leasehold excise tax exemption to tenants of public lands for battery and fuel cell electric vehicle infrastructure.
(3) To measure the effectiveness of the tax preferences in sections 8 through 14, chapter 287, Laws of 2019 in achieving the public policy objectives described in subsection (2) of this section, the joint legislative audit and review committee must evaluate the number of clean alternative fuel vehicles titled in the state.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the department of licensing and the department of revenue must provide data needed for the joint legislative audit and review committee analysis. In addition to the data source described under this subsection, the joint legislative audit and review committee may use any other data it deems necessary." [
2019 c 287 s 7
.]
Findings
—
Intent
—
2019 c 287:
See note following RCW 28B.30.903
.
Effective date
—
2017 c 116:
"This act takes effect January 1, 2018." [
2017 c 116 s 4
.]
Effective date
—
2015 3rd sp.s. c 44:
See note following RCW 46.68.395
.
Short title
—
Findings
—
Tax preference performance statement
—
2015 3rd sp.s. c 44 ss 411 and 412:
"(1) This section and sections 411 and 412 of this act may be known and cited as the clean fuel vehicle incentives act.
(2) The legislature finds that cleaner fuels reduce greenhouse gas emissions in the transportation sector and lead to a more sustainable environment. The legislature further finds that alternative fuel vehicles cost more than comparable models of conventional fuel vehicles, particularly in the commercial market. The legislature further finds the higher cost of alternative fuel vehicles incentivize companies to purchase comparable models of conventional fuel vehicles. The legislature further finds that other states provide various tax credits and exemptions. The legislature further finds incentivizing businesses to purchase cleaner, alternative fuel vehicles is a collaborative step toward meeting the state's climate and environmental goals.
(3)(a) This subsection is the tax preference performance statement for the clean alternative fuel vehicle tax credits provided in section 1, chapter 116, Laws of 2017, sections 1 and 2, chapter 29, Laws of 2016, and sections 411 and 412, chapter 44, Laws of 2015 3rd sp. sess. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(b) The legislature categorizes the tax preference as one intended to induce certain designated behavior by taxpayers.
(c) It is the legislature's specific public policy objective to provide a credit against business and occupation and public utility taxes to increase sales of commercial vehicles that use clean alternative fuel to ten percent of commercial vehicle sales by 2021.
(d) To measure the effectiveness of the credit provided in section 1, chapter 116, Laws of 2017, sections 1 and 2, chapter 29, Laws of 2016, and sections 411 and 412, chapter 44, Laws of 2015 3rd sp. sess. in achieving the specific public policy objective described in (c) of this subsection, the joint legislative audit and review committee must, at minimum, evaluate the changes in the number of commercial vehicles that are powered by clean alternative fuel that are registered in Washington state.
(e)(i) The department of licensing must provide data needed for the joint legislative audit and review committee's analysis in (d) of this subsection.
(ii) In addition to the data source described under (e)(i) of this subsection, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (d) of this subsection." [
2017 c 116 s 3
;
2016 c 29 s 3
;
2015 3rd sp.s. c 44 s 410
.]
RCW 82.04.4497
Credit
—
Sale or exchange of long-term capital assets.
(Expires January 1, 2026.)
(1) To avoid taxing the same sale or exchange under both the business and occupation tax and capital gains tax, a credit is allowed against taxes due under this chapter on a sale or exchange that is also subject to the tax imposed under RCW 82.87.040
. The credit is equal to the amount of tax imposed under this chapter on such sale or exchange.
(2) The credit may be used against any tax due under this chapter.
(3) The credit under this section is earned in regards to a sale or exchange, and may be claimed against taxes due under this chapter, for the tax reporting period in which the sale or exchange occurred. The credit claimed for a tax reporting period may not exceed the tax otherwise due under this chapter for that tax reporting period. Unused credit may not be carried forward or backward to another tax reporting period. No refunds may be granted for unused credit under this section.
(4) If the credit reduces the amount of taxes deposited into the workforce education investment account established in RCW 43.79.195, the department must transfer an equal amount from the general fund to the workforce education investment account.
(5) This section expires January 1, 2026.
[
2025 c 409 s 1
;
2021 c 196 s 16
.]
NOTES:
Application
—
2025 c 409 s 1:
"(1) The expiration of RCW 82.04.4497
provided in RCW 82.04.4497
(5) does not affect:
(a) Any existing right acquired or liability or obligation including, but not limited to:
(i) A taxpayer's liability for tax, penalty, or interest;
(ii) A taxpayer's ability to claim a credit under RCW 82.04.4497
earned from sales or exchanges that occurred before the expiration of RCW 82.04.4497
; or
(iii) A taxpayer's ability to claim relief from tax, penalty, or interest;
(b) Any rule or order adopted under RCW 82.04.4497
; or
(c) Any proceeding instituted under RCW 82.04.4497
.
(2) For purposes of this section, "liability for tax" means that the obligation for payment of a tax has been incurred by a taxpayer, regardless of when the tax is payable or whether the amount of tax due has been established." [
2025 c 409 s 2
.]
Contingency
—
2021 c 196 ss 5 and 16:
See note following RCW 82.87.040
.
Automatic expiration date and tax preference performance statement exemption
—
2021 c 196:
See note following RCW 82.87.010
.
RCW 82.04.4499
Credit
—
Equitable access to credit program.
(Expires July 1, 2027.)
(1) Subject to the limitations in this section, a credit is allowed against the tax imposed under this chapter for contributions made by a person to the equitable access to credit program created in chapter
43.390
RCW.
(2)(a) The person must make the contribution before claiming a credit authorized under this section. The credit may be used against any tax due under this chapter. The amount of the credit claimed for a reporting period may not exceed the tax otherwise due under this chapter for that reporting period. No person may claim more than $1,000,000 of credit in any calendar year, including credit carried over from a previous calendar year. No refunds may be granted for any unused credits.
(b) Any amount of tax credit otherwise allowable under this section not claimed by the person in any calendar year may be carried forward and claimed against a person's tax liability for the next succeeding calendar year; and any credit not used in that next succeeding calendar year may be carried forward and claimed against the person's tax liability for the second succeeding calendar year, but may not be carried over for any calendar year thereafter.
(3) Credits are available on a first-in-time basis. The department must disallow any credits, or portions thereof, that would cause the total amount of credits claimed under this section for any calendar year to exceed $8,000,000. If this limitation is reached, the department must notify the department of commerce that the annual statewide limit has been met. In addition, the department must provide written notice to any person who has claimed tax credits in excess of the limitation in this subsection. The notice must indicate the amount of tax due and provide the tax be paid within 30 days from the date of the notice. The department may not assess penalties and interest as provided in chapter
82.32
RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.
(4) To claim a credit under this section, a person must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in electronic format. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050
.
(5) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
(6) The equitable access to credit program must provide to the department, upon request, such information as may be needed to verify eligibility for credit under this section, including information regarding contributions received by the program.
(7) The maximum credit that may be earned for each calendar year under this section for a person is limited to the lesser of $1,000,000 or an amount equal to 100 percent of the contributions made by the person to the equitable access to credit program.
(8) No credit may be earned for contributions made on or after June 30, 2027. Credits may be claimed as provided in subsections (2) through (4) of this section; however, credits may not be claimed prior to January 1, 2023.
(9) For the purposes of this section, "equitable access to credit program" means a program established within the department of commerce pursuant to RCW 43.390.020
.
(10) The provisions of chapter
82.32
RCW apply to the administration of this section.
(11) This section expires July 1, 2027.
[
2022 c 189 s 2
.]
NOTES:
Tax preference performance statement
—
2022 c 189 s 2:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 189, Laws of 2022. 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 to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to create or retain jobs pursuant to RCW 82.32.808
(2)(c), as well as encourage community and economic development within communities that have historically lacked access to capital.
(3) It is the legislature's specific public policy objective to create a program that encourages investment in small, underserved businesses to encourage community and economic development in Washington.
(4) The legislature intends to extend the expiration date of this tax preference if a review finds that the equitable access to credit program has had a net positive impact on investment in communities historically underserved by credit and on state and local tax revenues. In conducting its review under this section, the joint legislative audit and review committee should consider, among other data:
(a) The number and aggregate amount of loans and investments originated under the program, including with revolved dollars;
(b) Overall match, including project leverage, invested by grant recipients;
(c) The balance sheet growth of community development financial institutions that received grants from the program;
(d) Whether participants in the program achieved balance sheet growth during the time of their participation in the program;
(e) The percentage of community development financial institutions in Washington that received funding from the program; and
(f) The level of ongoing demand for funding from the program.
(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.
(6) This section expires July 1, 2027." [
2022 c 189 s 5
.]
RCW 82.04.450
Value of products, how determined.
(1) The value of products, including by-products, extracted or manufactured shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller, except:
(a) Where such products, including by-products, are extracted or manufactured for commercial or industrial use;
(b) Where such products, including by-products, are shipped, transported or transferred out of the state, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale.
(2) Except as otherwise provided in this subsection, in the cases described in subsection (1)(a) and (b) of this section, the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products.
(a) The value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond: (i) To the retail selling price of such new or improved product when first offered for sale; or (ii) to the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. The department of revenue shall prescribe uniform and equitable rules for the purpose of ascertaining such values.
(b) In the case of asphalt or aggregates manufactured or extracted by a person providing services taxable under RCW 82.04.280
(1)(b) and used by that person in providing those services, the value of the asphalt or aggregates is equal to the sum of all direct and indirect costs attributable to the asphalt or aggregates used, plus a public road construction market adjustment of five percent of those costs.
[
2023 c 307 s 3
;
1983 1st ex.s. c 55 s 3
;
1975 1st ex.s. c 278 s 42
;
1961 c 15 s 82.04.450
. Prior:
1949 c 228 s 3
;
1941 c 178 s 4
;
1935 c 180 s 7
; Rem. Supp. 1949 s 8370-7.]
NOTES:
Findings
—
Intent
—
2023 c 307:
"(1) The legislature finds that public road construction and repair is vital to the continued development of economic opportunity in this state.
(2) The legislature finds that the vast majority of public road construction projects involve paving companies that self-manufacture the asphalt and aggregates used in public road construction projects. Because most of the asphalt and aggregates these companies produce is used for their own public road construction projects, the legislature finds that it is difficult to obtain objective, consistent, and reliable information regarding the market value of the asphalt and aggregates used in public road construction projects.
(3) In light of the unique circumstances surrounding the valuation of self-manufactured asphalt and aggregates incorporated into public roads, the legislature intends to establish a method for valuing asphalt and aggregates that reduces the burdens on taxpayers and the department of revenue promotes certainty and consistency in the calculation of use tax and business and occupation tax on self-manufactured asphalt and aggregates across the paving industry." [
2023 c 307 s 1
.]
Application
—
2023 c 307:
"This act applies prospectively only to tax liability incurred as a result of contracts executed on or after August 1, 2023." [
2023 c 307 s 4
.]
Effective date
—
2023 c 307:
"This act takes effect August 1, 2023." [
2023 c 307 s 5
.]
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.04.460
Apportionable income
—
Taxable in Washington and another state.
(Effective until January 1, 2034.)
(1) Except as otherwise provided in this section, any person earning apportionable income taxable under this chapter and also taxable in another state must, for the purpose of computing tax liability under this chapter, apportion to this state, in accordance with RCW 82.04.462, that portion of the person's apportionable income derived from business activities performed within this state.
(2) The department must by rule provide a method of apportioning the apportionable income of financial institutions, where such apportionable income is taxable under RCW 82.04.290
. The rule adopted by the department must, to the extent feasible, be consistent with the multistate tax commission's recommended formula for the apportionment and allocation of net income of financial institutions as existing on June 1, 2010, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section, except that:
(a) The department's rule must provide for a single factor apportionment method based on the receipts factor; and
(b) The definition of "financial institution" contained in appendix A to the multistate tax commission's recommended formula for the apportionment and allocation of net income of financial institutions is advisory only.
(3) The department may by rule provide a method or methods of apportioning or allocating gross income derived from sales of telecommunications service and competitive telephone service taxed under this chapter, if the gross proceeds of sales subject to tax under this chapter do not fairly represent the extent of the taxpayer's income attributable to this state. The rule must provide for an equitable and constitutionally permissible division of the tax base.
(4) For purposes of this section, the following definitions apply unless the context clearly requires otherwise:
(a) "Apportionable income" means gross income of the business generated from engaging in apportionable activities, including income received from apportionable activities performed outside this state if the income would be taxable under this chapter if received from activities in this state, less the exemptions and deductions allowable under this chapter. For purposes of this subsection, "apportionable activities" means only those activities taxed under:
(i) RCW 82.04.255
;
(ii) RCW 82.04.260
(3), (5), (6), (7), (8), (9), (10), and (13);
(iii) RCW 82.04.280
(1)(e);
(iv) RCW 82.04.285
;
(v) RCW 82.04.286
;
(vi) RCW 82.04.290
;
(vii) RCW 82.04.2907
;
(viii) RCW 82.04.2908
;
(ix) RCW 82.04.263, but only to the extent of any activity that would be taxable under any of the provisions enumerated under (a)(i) through (viii) of this subsection (4) if the tax classification in RCW 82.04.263
did not exist; and
(x) RCW 82.04.280
(1)(a) or exempted under RCW 82.04.759, but only with respect to advertising.
(b)(i) "Taxable in another state" means that the taxpayer is subject to a business activities tax by another state on its income received from engaging in apportionable activities; or the taxpayer is not subject to a business activities tax by another state on its income received from engaging in apportionable activities, but any other state has jurisdiction to subject the taxpayer to a business activities tax on such income under the substantial nexus standards in RCW 82.04.067
(1).
(ii) For purposes of this subsection (4)(b), "business activities tax" and "state" have the same meaning as in RCW 82.04.462
.
[
2023 c 286 s 5
;
2014 c 97 s 304
;
2011 c 174 s 203
;
2010 1st sp.s. c 23 s 108
;
2004 c 174 s 6
;
1985 c 7 s 154
;
1983 2nd ex.s. c 3 s 28
;
1975 1st ex.s. c 291 s 9
;
1961 c 15 s 82.04.460
. Prior:
1941 c 178 s 5
;
1939 c 225 s 4
; Rem. Supp. 1941 s 8370-8a.]
NOTES:
Findings
—
Effective date
—
Expiration date
—
2023 c 286:
See notes following RCW 82.04.759
.
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2004 c 174:
See note following RCW 82.04.2908
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
PDF
RCW 82.04.460
Apportionable income
—
Taxable in Washington and another state.
(Effective January 1, 2034.)
(1) Except as otherwise provided in this section, any person earning apportionable income taxable under this chapter and also taxable in another state must, for the purpose of computing tax liability under this chapter, apportion to this state, in accordance with RCW 82.04.462, that portion of the person's apportionable income derived from business activities performed within this state.
(2) The department must by rule provide a method of apportioning the apportionable income of financial institutions, where such apportionable income is taxable under RCW 82.04.290
. The rule adopted by the department must, to the extent feasible, be consistent with the multistate tax commission's recommended formula for the apportionment and allocation of net income of financial institutions as existing on June 1, 2010, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section, except that:
(a) The department's rule must provide for a single factor apportionment method based on the receipts factor; and
(b) The definition of "financial institution" contained in appendix A to the multistate tax commission's recommended formula for the apportionment and allocation of net income of financial institutions is advisory only.
(3) The department may by rule provide a method or methods of apportioning or allocating gross income derived from sales of telecommunications service and competitive telephone service taxed under this chapter, if the gross proceeds of sales subject to tax under this chapter do not fairly represent the extent of the taxpayer's income attributable to this state. The rule must provide for an equitable and constitutionally permissible division of the tax base.
(4) For purposes of this section, the following definitions apply unless the context clearly requires otherwise:
(a) "Apportionable income" means gross income of the business generated from engaging in apportionable activities, including income received from apportionable activities performed outside this state if the income would be taxable under this chapter if received from activities in this state, less the exemptions and deductions allowable under this chapter. For purposes of this subsection, "apportionable activities" means only those activities taxed under:
(i) RCW 82.04.255
;
(ii) RCW 82.04.260
(3), (5), (6), (7), (8), (9), (10), and (13);
(iii) RCW 82.04.280
(1)(e);
(iv) RCW 82.04.285
;
(v) RCW 82.04.286
;
(vi) RCW 82.04.290
;
(vii) RCW 82.04.2907
;
(viii) RCW 82.04.2908
;
(ix) RCW 82.04.263, but only to the extent of any activity that would be taxable under any of the provisions enumerated under (a)(i) through (viii) of this subsection (4) if the tax classification in RCW 82.04.263
did not exist; and
(x) RCW 82.04.260
(14) and
82.04.280
(1)(a), but only with respect to advertising.
(b)(i) "Taxable in another state" means that the taxpayer is subject to a business activities tax by another state on its income received from engaging in apportionable activities; or the taxpayer is not subject to a business activities tax by another state on its income received from engaging in apportionable activities, but any other state has jurisdiction to subject the taxpayer to a business activities tax on such income under the substantial nexus standards in RCW 82.04.067
(1).
(ii) For purposes of this subsection (4)(b), "business activities tax" and "state" have the same meaning as in RCW 82.04.462
.
[
2014 c 97 s 304
;
2011 c 174 s 203
;
2010 1st sp.s. c 23 s 108
;
2004 c 174 s 6
;
1985 c 7 s 154
;
1983 2nd ex.s. c 3 s 28
;
1975 1st ex.s. c 291 s 9
;
1961 c 15 s 82.04.460
. Prior:
1941 c 178 s 5
;
1939 c 225 s 4
; Rem. Supp. 1941 s 8370-8a.]
NOTES:
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2004 c 174:
See note following RCW 82.04.2908
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 82.04.462
Apportionable income.
(1) The apportionable income of a person within the scope of RCW 82.04.460
(1) is apportioned to Washington by multiplying its apportionable income by the receipts factor. Persons who are subject to tax under more than one of the tax classifications enumerated in RCW 82.04.460
(4)(a) (i) through (x) must calculate a separate receipts factor for each tax classification that the person is taxable under.
(2) For purposes of subsection (1) of this section, the receipts factor is a fraction and is calculated as provided in subsections (3) and (4) of this section and, for financial institutions, as provided in the rule adopted by the department under the authority of RCW 82.04.460
(2).
(3)(a) The numerator of the receipts factor is the total gross income of the business of the taxpayer attributable to this state during the tax year from engaging in an apportionable activity. The denominator of the receipts factor is the total gross income of the business of the taxpayer from engaging in an apportionable activity everywhere in the world during the tax year.
(b) Except as otherwise provided in this section, for purposes of computing the receipts factor, gross income of the business generated from each apportionable activity is attributable to the state:
(i) Where the customer received the benefit of the taxpayer's service or, in the case of gross income from royalties, where the customer used the taxpayer's intangible property. When a customer receives the benefit of the taxpayer's services or uses the taxpayer's intangible property in this and one or more other states and the amount of gross income of the business that was received by the taxpayer in return for the services received or intangible property used by the customer in this state can be reasonably determined by the taxpayer, such amount of gross income must be attributed to this state.
(ii) If the customer received the benefit of the service or used the intangible property in more than one state and if the taxpayer is unable to attribute gross income of the business under the provisions of (b)(i) of this subsection (3), gross income of the business must be attributed to the state in which the benefit of the service was primarily received or in which the intangible property was primarily used.
(iii) If the taxpayer is unable to attribute gross income of the business under the provisions of (b)(i) or (ii) of this subsection (3), gross income of the business must be attributed to the state from which the customer ordered the service or, in the case of royalties, the office of the customer from which the royalty agreement with the taxpayer was negotiated.
(iv) If the taxpayer is unable to attribute gross income of the business under the provisions of (b)(i), (ii), or (iii) of this subsection (3), gross income of the business must be attributed to the state to which the billing statements or invoices are sent to the customer by the taxpayer.
(v) If the taxpayer is unable to attribute gross income of the business under the provisions of (b)(i), (ii), (iii), or (iv) of this subsection (3), gross income of the business must be attributed to the state from which the customer sends payment to the taxpayer.
(vi) If the taxpayer is unable to attribute gross income of the business under the provisions of (b)(i), (ii), (iii), (iv), or (v) of this subsection (3), gross income of the business must be attributed to the state where the customer is located as indicated by the customer's address: (A) Shown in the taxpayer's business records maintained in the regular course of business; or (B) obtained during consummation of the sale or the negotiation of the contract for services or for the use of the taxpayer's intangible property, including any address of a customer's payment instrument when readily available to the taxpayer and no other address is available.
(vii) If the taxpayer is unable to attribute gross income of the business under the provisions of (b)(i), (ii), (iii), (iv), (v), or (vi) of this subsection (3), gross income of the business must be attributed to the commercial domicile of the taxpayer.
(viii) For purposes of this subsection (3)(b), "customer" means a person or entity to whom the taxpayer makes a sale or renders services or from whom the taxpayer otherwise receives gross income of the business. "Customer" includes anyone who pays royalties or charges in the nature of royalties for the use of the taxpayer's intangible property.
(c) Gross income of the business from engaging in an apportionable activity must be excluded from the denominator of the receipts factor if, in respect to such activity, at least some of the activity is performed in this state, and the gross income is attributable under (b) of this subsection (3) to a state in which the taxpayer is not taxable. For purposes of this subsection (3)(c), "not taxable" means that the taxpayer is not subject to a business activities tax by that state, except that a taxpayer is taxable in a state in which it would be deemed to have a substantial nexus with that state under the standards in RCW 82.04.067
(1) regardless of whether that state imposes such a tax. "Business activities tax" means a tax measured by the amount of, or economic results of, business activity conducted in a state. The term includes taxes measured in whole or in part on net income or gross income or receipts. "Business activities tax" does not include a sales tax, use tax, or a similar transaction tax, imposed on the sale or acquisition of goods or services, whether or not denominated a gross receipts tax or a tax imposed on the privilege of doing business.
(d) This subsection (3) does not apply to financial institutions with respect to apportionable income taxable under RCW 82.04.290
. Financial institutions must calculate the receipts factor as provided in subsection (4) of this section and the rule adopted by the department under the authority of RCW 82.04.460
(2) with respect to apportionable income taxable under RCW 82.04.290
. Financial institutions that are subject to tax under any other tax classification enumerated in RCW 82.04.460
(4)(a) (i) through (v) and (vii) through (x) must calculate a separate receipts factor, as provided in this section, for each of the other tax classifications that the financial institution is taxable under.
(4) A taxpayer may calculate the receipts factor for the current tax year based on the most recent calendar year for which information is available for the full calendar year. If a taxpayer does not calculate the receipts factor for the current tax year based on previous calendar year information as authorized in this subsection, the business must use current year information to calculate the receipts factor for the current tax year. In either case, a taxpayer must correct the reporting for the current tax year when complete information is available to calculate the receipts factor for that year, but not later than October 31st of the following tax year. Interest will apply to any additional tax due on a corrected tax return. Interest must be computed and assessed as provided in RCW 82.32.050
and accrues until the additional taxes are paid. Penalties as provided in RCW 82.32.090
will apply to any such additional tax due only if the current tax year reporting is not corrected and the additional tax is not paid by October 31st of the following tax year. Interest as provided in RCW 82.32.060
will apply to any tax paid in excess of that properly due on a return as a result of a taxpayer using previous calendar year data or incomplete current-year data to calculate the receipts factor.
(5) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
(a) "Apportionable activities" and "apportionable income" have the same meaning as in RCW 82.04.460
.
(b) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any foreign country or political subdivision of a foreign country.
[
2014 c 97 s 305
;
2010 1st sp.s. c 23 s 105
.]
NOTES:
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
RCW 82.04.470
Wholesale sale
—
Reseller permit
—
Exemption certificates
—
Burden of proof
—
Tax liability.
(1) The burden of proving that a sale is a wholesale sale rather than a retail sale is on the seller. A seller may meet its burden of proving a sale is a wholesale sale rather than a retail sale by taking from the buyer, at the time of sale or within a reasonable time after the sale as provided by rule of the department, a copy of a reseller permit issued to the buyer by the department under RCW 82.32.780
or
82.32.783
.
(2)(a) In lieu of a copy of a reseller permit issued by the department, a seller may accept from a buyer that is required to be registered with the department under RCW 82.32.030
:
(i) A properly completed uniform exemption certificate approved by the streamlined sales and use tax agreement governing board; or
(ii) Any other exemption certificate as may be authorized by the department and properly completed by the buyer.
(b) Certificates authorized under (a)(i) and (ii) of this subsection (2) must include the reseller permit number issued by the department to the buyer.
(c) A seller who accepts exemption certificates authorized in (a) of this subsection (2) is not required to verify with the department whether the buyer is required to be registered with the department under RCW 82.32.030
. Nothing in this subsection (2)(c) may be construed to modify any of the provisions of RCW 82.08.050
.
(3)(a) In lieu of a copy of a reseller permit issued by the department, a seller may accept from a buyer that is not required to be registered with the department under RCW 82.32.030
:
(i) A properly completed uniform sales and use tax exemption certificate developed by the multistate tax commission;
(ii) A properly completed uniform exemption certificate approved by the streamlined sales and use tax agreement governing board; or
(iii) Any other exemption certificate as may be authorized by the department and properly completed by the buyer.
(b) A seller who accepts exemption certificates authorized in (a) of this subsection (3) is not required to verify with the department whether the buyer is not required to be registered with the department under RCW 82.32.030
. Nothing in this subsection (3)(b) may be construed to modify any of the provisions of RCW 82.08.050
.
(4) In lieu of obtaining the documentation in subsection (1), (2), or (3) of this section, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement.
(5) A seller that does not comply with subsection (1), (2), (3), or (4) of this section may meet its burden of proving that a sale is a wholesale sale rather than a retail sale by demonstrating facts and circumstances, according to rules adopted by the department, that show the sale was properly made without payment of retail sales tax.
(6) Notwithstanding anything in this section to the contrary, a seller who maintains records establishing that it uses electronic means to verify, at least once per calendar year, the validity of its customers' reseller permits need not take a copy of a reseller permit or other documentation or the data elements as authorized in subsection (1), (2), (3), or (4) of this section for wholesale sales to those customers with valid reseller permits as confirmed by the department for all sales occurring within twelve months following the date that the seller last electronically verified the validity of its customers' reseller permits. A seller that meets the requirements of this subsection will be deemed to have met its burden of proving a sale is a wholesale sale rather than a retail sale.
(7) As used in this section "reseller permit" means documentation issued by the department under RCW 82.32.780
or
82.32.783, which is used to substantiate a wholesale sale.
[
2010 c 112 s 7
. Prior:
2009 c 563 s 205
;
2009 c 535 s 411
;
2007 c 6 s 1201
;
2003 c 168 s 204
;
1993 sp.s. c 25 s 701
;
1983 2nd ex.s. c 3 s 29
;
1975 1st ex.s. c 278 s 43
;
1961 c 15 s 82.04.470
; prior:
1935 c 180 s 9
; RRS s 8370-9.]
NOTES:
Retroactive application
—
2010 c 112:
See note following RCW 82.32.780
.
Finding
—
Intent
—
Construction
—
Effective date
—
Reports and recommendations
—
2009 c 563:
See notes following RCW 82.32.780
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
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
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
Reseller's permit: RCW 82.08.130
and
82.32.291
.
RCW 82.04.480
Sales in own name
—
Sales as agent.
(1) Every consignee, bailee, factor, or auctioneer having either actual or constructive possession of personal property, or having possession of the documents of title thereto, with power to sell such personal property in that person's own name and actually so selling, is deemed the seller of such personal property within the meaning of this chapter. Furthermore, the consignor, bailor, principal, or owner is deemed a seller of such property to the consignee, bailee, factor, or auctioneer.
(2) The burden is on the taxpayer in every case to establish the fact that the taxpayer is not engaged in the business of making retail sales or wholesale sales but is acting merely as broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer's accounting records are kept in such manner as required by rule by the department.
(3) For purposes of this section, "personal property" means tangible personal property, digital goods, digital codes, and extended warranties.
[
2009 c 535 s 412
;
1975 1st ex.s. c 278 s 44
;
1961 c 15 s 82.04.480
. Prior:
1935 c 180 s 10
; RRS s 8370-10.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.04.500
Tax part of operating overhead.
It is not the intention of this chapter that the taxes herein levied upon persons engaging in business be construed as taxes upon the purchasers or customers, but that such taxes shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes shall constitute a part of the operating overhead of such persons.
[
1961 c 15 s 82.04.500
. Prior:
1935 c 180 s 14
; RRS s 8370-14.]
RCW 82.04.510
General administrative provisions invoked.
All of the provisions contained in chapter
82.32
RCW shall have full force and application with respect to taxes imposed under the provisions of this chapter. Taxpayers submitting monthly estimates of taxes due under this chapter shall be subject to the provisions of chapter
82.32
RCW if they fail to remit ninety percent of the taxes actually collected or due for the reporting period.
[
1961 c 15 s 82.04.510
. Prior:
1959 c 197 s 28
;
1935 c 180 s 15
; RRS s 8370-15.]
RCW 82.04.520
Administrative provisions for motor vehicle sales by courtesy dealers.
(1) In the payment of the tax imposed by this chapter on new motor vehicles sold to Washington customers that are delivered to the customer through courtesy dealers located in this state, the courtesy dealer is deemed to be the agent for the selling dealer in reporting and paying the tax imposed by this chapter, unless the selling dealer is already registered and reporting and remitting taxes under this chapter. It is the duty of each courtesy dealer to pay the tax imposed by this chapter to the department when the courtesy dealer files its tax return. Each courtesy dealer who acts as the agent for the selling dealer in reporting, paying, and remitting the tax imposed by this chapter must at the time of paying and remitting its own taxes imposed by this chapter pay the tax due on the transaction under this section.
(2) The tax paid by the courtesy dealer on behalf of the selling dealer shall constitute a debt from the selling dealer to the courtesy dealer, and the courtesy dealer is authorized to withhold payment to the selling dealer out of the proceeds of the sale an amount equal to the tax imposed by this chapter. Amounts withheld by the courtesy dealer are deemed to be held in trust by the courtesy dealer until paid to the department, and any courtesy dealer who appropriates or converts the amount withheld to the courtesy dealer's own use or to any use other than the payment of the tax to the extent that the money withheld is not available for payment on the due date is guilty of a gross misdemeanor.
(3) This section is construed as cumulative of other methods prescribed in chapters
82.04
through
82.32
RCW, inclusive, for the collection of the tax imposed by this chapter.
(4) As used in this section, "courtesy dealer" means any licensed new motor vehicle dealer authorized to prepare or deliver a new motor vehicle to a customer in this state. "Selling dealer" means a motor vehicle dealer not licensed to prepare or deliver a new motor vehicle to a customer in this state.
[
2001 c 258 s 2
.]
NOTES:
Effective date
—
2001 c 258:
See note following RCW 82.04.422
.
RCW 82.04.530
Telecommunications service providers
—
Calculation of gross proceeds.
For purposes of this chapter, a telecommunications service provider other than a mobile telecommunications service provider must calculate gross proceeds of sales in a manner consistent with the sourcing rules provided in RCW 82.32.520
. The department may adopt rules to implement this section, including rules that provide a formulary method of determining gross proceeds that reasonably approximates the taxable activity of a telephone business.
[
2007 c 54 s 13
;
2007 c 6 s 1022
;
2004 c 153 s 410
;
2002 c 67 s 3
.]
NOTES:
Reviser's note:
This section was amended by 2007 c 6 s 1022 and by 2007 c 54 s 13, 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).
Findings
—
Intent
—
2007 c 54:
"In July 2000, congress passed the mobile telecommunications sourcing act (P.L. 106-252). The act addresses the problem of determining the situs of a cellular telephone call for tax purposes. In 2002, the legislature passed Senate Bill No. 6539 (chapter 67, Laws of 2002), which addressed the sourcing of mobile telecommunications for state business and occupation tax, state and local retail sales taxes, city utility taxes, and state and county telephone access line taxes. Section 18, chapter 67, Laws of 2002 provided that the act is null and void if the federal mobile telecommunications sourcing act is substantially impaired or limited as a result of a court decision that is no longer subject to appeal. The legislature finds that the contingent null and void clause in section 18, chapter 67, Laws of 2002 has resulted in the necessity of codifying two versions of a number of statutes to incorporate contingent expiration and effective dates. The legislature recognizes that this adds complexity to the tax code and makes tax administration more difficult. The legislature further finds that there is little or no likelihood that the federal mobile telecommunications sourcing act will be substantially impaired or limited as a result of a court decision. Therefore, the legislature intends in section 2 of this act to simplify Washington's tax code and tax administration by eliminating the contingent null and void clause in section 18, chapter 67, Laws of 2002." [
2007 c 54 s 1
.]
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
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
.
Finding
—
2002 c 67:
"The legislature finds that the United States congress has enacted the mobile telecommunications sourcing act for the purpose of establishing uniform nationwide sourcing rules for state and local taxation of mobile telecommunications services. The legislature desires to adopt implementing legislation governing taxation by the state and by affected local taxing jurisdictions within the state. The legislature recognizes that the federal act is intended to provide a clarification of sourcing rules that is revenue-neutral among the states, and that the clarifications required by the federal act are likely in fact to be revenue-neutral at the state level. The legislature also desires to take advantage of a provision of the federal act that allows a state with a generally applicable business and occupation tax, such as this state, to make certain of the uniform sourcing rules elective for such tax." [
2002 c 67 s 1
.]
Effective date
—
2002 c 67:
"This act takes effect August 1, 2002." [
2002 c 67 s 19
.]
RCW 82.04.535
Gross proceeds of sales calculation for mobile telecommunications service provider.
(1) Unless a mobile telecommunications service provider elects to be taxed under subsection (2) of this section, the mobile telecommunications service provider must calculate gross proceeds of sales by reporting all sales to, or sales between carriers for, customers with a place of primary use within this state, regardless of where the mobile telecommunications services originate, are received, or are billed, consistent with the mobile telecommunications sourcing act, P.L. 106-252, 4 U.S.C. Secs. 116 through 126.
(2) A mobile telecommunications service provider may elect to calculate gross proceeds of sales by including all charges for mobile telecommunications services provided to all consumers, whether the consumers are the mobile telecommunications service provider's customers or not, if the services originate from or are received on telecommunications equipment or apparatus in this state and are billed to a person in this state.
(3) If a mobile telecommunications service provider elects to be taxed under subsection (2) of this section, the mobile telecommunications service provider must provide written notice of the election before August 1, 2002, or before the beginning date of any tax year thereafter in which it wishes to change its reporting and make this election.
(4) The department may provide, by rule, for formulary reporting as necessary to implement this section.
[
2002 c 67 s 4
.]
NOTES:
Finding
—
Effective date
—
2002 c 67:
See notes following RCW 82.04.530
.
RCW 82.04.540
Professional employer organizations
—
Taxable under RCW 82.04.290
(2)
—
Deduction.
(1) The provision of professional employer services by a professional employer organization is taxable under RCW 82.04.290
(2).
(2) A professional employer organization is allowed a deduction from the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement.
(3) For the purposes of this section, the following definitions apply:
(a) "Client" means any person who enters into a professional employer agreement with a professional employer organization. For purposes of this subsection (3)(a), "person" has the same meaning as "buyer" in RCW 82.08.010
.
(b) "Coemployer" means either a professional employer organization or a client.
(c) "Coemployment relationship" means a relationship which is intended to be an ongoing relationship rather than a temporary or project-specific one, wherein the rights, duties, and obligations of an employer which arise out of an employment relationship have been allocated between coemployers pursuant to a professional employer agreement and applicable state law. In such a coemployment relationship:
(i) The professional employer organization is entitled to enforce only such employer rights and is subject to only those obligations specifically allocated to the professional employer organization by the professional employer agreement or applicable state law;
(ii) The client is entitled to enforce those rights and obligated to provide and perform those employer obligations allocated to such client by the professional employer agreement and applicable state law; and
(iii) The client is entitled to enforce any right and obligated to perform any obligation of an employer not specifically allocated to the professional employer organization by the professional employer agreement or applicable state law.
(d) "Covered employee" means an individual having a coemployment relationship with a professional employer organization and a client who meets all of the following criteria: (i) The individual has received written notice of coemployment with the professional employer organization, and (ii) the individual's coemployment relationship is pursuant to a professional employer agreement. Individuals who are officers, directors, shareholders, partners, and managers of the client are covered employees to the extent the professional employer organization and the client have expressly agreed in the professional employer agreement that such individuals would be covered employees and provided such individuals meet the criteria of this subsection and act as operational managers or perform day-to-day operational services for the client.
(e) "Professional employer agreement" means a written contract by and between a client and a professional employer organization that provides:
(i) For the coemployment of covered employees; and
(ii) For the allocation of employer rights and obligations between the client and the professional employer organization with respect to the covered employees.
(f) "Professional employer organization" means any person engaged in the business of providing professional employer services. The following shall not be deemed to be professional employer organizations or the providing of professional employer services for purposes of this section:
(i) Arrangements wherein a person, whose principal business activity is not entering into professional employer arrangements and which does not hold itself out as a professional employer organization, shares employees with a commonly owned company within the meaning of section 414(b) and (c) of the Internal Revenue Code of 1986, as amended;
(ii) Independent contractor arrangements by which a person assumes responsibility for the product produced or service performed by such person or his or her agents and retains and exercises primary direction and control over the work performed by the individuals whose services are supplied under such arrangements; or
(iii) Providing staffing services.
(g) "Professional employer services" means the service of entering into a coemployment relationship with a client in which all or a majority of the employees providing services to a client or to a division or work unit of a client are covered employees.
(h) "Staffing services" means services consisting of a person:
(i) Recruiting and hiring its own employees;
(ii) Finding other organizations that need the services of those employees;
(iii) Assigning those employees on a temporary basis to perform work at or services for the other organizations to support or supplement the other organizations' workforces, or to provide assistance in special work situations such as, but not limited to, employee absences, skill shortages, seasonal workloads, or to perform special assignments or projects, all under the direction and supervision of the customer; and
(iv) Customarily attempting to reassign the employees to other organizations when they finish each assignment.
[
2006 c 301 s 1
.]
NOTES:
Effective date
—
Act does not affect application of Title
50
or
51
RCW
—
2006 c 301:
See notes following RCW 82.32.710
.
RCW 82.04.545
Exemptions
—
Sales of electricity or gas to silicon smelters.
(Contingent expiration date.)
(1) A person who is subject to tax under this chapter on gross income from sales of electricity, natural gas, or manufactured gas made to a silicon smelter is eligible for an exemption from the tax in the form of a credit, if the contract for sale of electricity or gas to the silicon smelter specifies that the price charged for the electricity or gas will be reduced by an amount equal to the credit.
(2) The credit is equal to the gross income from the sale of the electricity or gas to a silicon smelter multiplied by the corresponding rate in effect at the time of the sale under this chapter.
(3) The exemption provided for in this section does not apply to amounts received from the remarketing or resale of electricity originally obtained by contract for the smelting process.
(4) The department must provide a separate tax reporting line for reporting credits under this section by sellers of electricity, natural gas, or manufactured gas.
(5) For purposes of the annual tax performance report required by RCW 82.32.534
:
(a) The silicon smelter receiving the benefit of the credit under this section is deemed to be the taxpayer claiming the credit and is required to file the annual tax performance report; and
(b) The person selling the electricity, natural gas, or manufactured gas to the silicon smelter is not required to file the annual tax performance report.
(6) For the purposes of this section, "silicon smelter" has the same meaning as provided in RCW 82.16.315
.
[
2017 3rd sp.s. c 37 s 705
;
2017 3rd sp.s. c 37 s 704
.]
NOTES:
Contingent expiration date
—
2017 3rd sp.s. c 37 ss 701-708:
See note following RCW 82.32.537
.
Findings
—
Intent
—
Tax preference performance statement
—
2017 3rd sp.s. c 37 ss 701-708:
See note following RCW 82.16.315
.
Effective date
—
2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
See note following RCW 82.04.2404
.
RCW 82.04.600
Exemptions
—
Materials printed in county, city, town, school district, educational service district, library or library district.
This chapter does not apply to any county as defined in Title
36
RCW, any city or town as defined in Title
35
RCW, any school district or educational service district as defined in Title
28A
RCW, or any library or library district as defined in Title
27
RCW, in respect to materials printed in the county, city, town, school district, educational district, library or library district facilities when the materials are used solely for county, city, town, school district, educational district, library, or library district purposes.
[
1979 ex.s. c 266 s 8
.]
RCW 82.04.601
Exemptions
—
Affixing stamp services for cigarette sales.
This chapter does not apply to compensation allowed under RCW 82.24.295
for wholesalers and retailers for their services in affixing the stamps required under chapter
82.24
RCW. For purposes of this section, "wholesaler," "retailer," and "stamp" have the same meaning as in chapter
82.24
RCW.
[
2007 c 221 s 5
.]
RCW 82.04.610
Exemptions
—
Import or export commerce.
(1) This chapter does not apply to:
(a) The sale of tangible personal property in export commerce; and
(b) The wholesale sale of tangible personal property in import commerce, but only when the wholesale sale is:
(i) A sale of unroasted coffee beans; or
(ii) Between a parent company and its wholly owned subsidiary.
(2) Tangible personal property is in import commerce while the property is in the process of import transportation. Except as provided in (a) through (c) of this subsection, property is in the process of import transportation from the time the property begins its transportation at a point outside of the United States until the time that the property is delivered to the buyer in this state. Property is also in the process of import transportation if it is merely flowing through this state on its way to a destination in some other state or country. However, property is no longer in the process of import transportation when the property is:
(a) Put to actual use in any state, territory, or possession of the United States for any purpose;
(b) Resold by the importer or any other person after the property has arrived in this state or any other state, territory, or possession of the United States, regardless of whether the property is in its original unbroken package or container; or
(c) Processed, handled, or otherwise stopped in transit for a business purpose other than shipping needs, if the processing, handling or other stoppage of transit occurs within the United States, including any of its possessions or territories, or the territorial waters of this state or any other state, regardless of whether the processing, handling, or other stoppage of transit occurs within a foreign trade zone.
(3)(a) Tangible personal property is in export commerce when the seller delivers the property to:
(i) The buyer at a destination in a foreign country;
(ii) A carrier consigned to and for transportation to a destination in a foreign country;
(iii) The buyer at shipside or aboard the buyer's vessel or other vehicle of transportation under circumstances where it is clear that the process of exportation of the property has begun; or
(iv) The buyer in this state if the property is capable of being transported to a foreign destination under its own power, the seller files a shipper's export declaration with respect to the property listing the seller as the exporter, and the buyer immediately transports the property directly to a destination in a foreign country. This subsection (3)(a)(iv) does not apply to sales of motor vehicles as defined in RCW 46.04.320
.
(b) The exemption under this subsection (3) applies with respect to property delivered to the buyer in this state if, at the time of delivery, there is a certainty of export, and the process of export has begun. The process of exportation will not be deemed to have begun if the property is merely in storage awaiting shipment, even though there is reasonable certainty that the property will be exported. The intention to export, as evidenced for example, by financial and contractual relationships does not indicate certainty of export. The process of exportation begins when the property starts its final and certain continuous movement to a destination in a foreign country.
(4) Persons claiming an exemption under this section must keep and maintain records for the period required by RCW 82.32.070
establishing their right to the exemption.
[
2019 c 8 s 501
;
2007 c 477 s 2
.]
NOTES:
Effective date
—
2019 c 8 ss 101, 104, 106, 201, 402-405, and 501:
See note following RCW 82.02.250
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Intent
—
Purpose
—
2007 c 477:
"Because of the uncertainty regarding the constitutional limitations on the taxation of import and export sales of tangible personal property, the legislature recognizes the need to provide clarity in the taxation of imports and exports. It is the legislature's intent to provide a statutory tax exemption for the sale of tangible personal property in import or export commerce, which is not dependent on future interpretation of the constitutional limitations on the taxation of imports and exports by the courts. The sole purpose of the legislature in enacting RCW 82.04.610
and
82.08.990
is to codify current department practice in the taxation of import and export sales of tangible personal property consistent with WAC 458-20-193C. It is not the intent of the legislature in enacting RCW 82.04.610
and
82.08.990
to eliminate, narrow, or expand existing exemptions under WAC 458-20-193C." [
2007 c 477 s 1
.]
RCW 82.04.615
Exemptions
—
Certain limited purpose public corporations, commissions, and authorities.
This chapter does not apply to public corporations, commissions, or authorities created under RCW 35.21.660
or
35.21.730
for amounts derived from sales of tangible personal property and services to:
(1) A limited liability company in which the corporation, commission, or authority is the managing member;
(2) A limited partnership in which the corporation, commission, or authority is the general partner; or
(3) A single asset entity required under any federal, state, or local governmental housing assistance program, which is controlled directly or indirectly by the corporation, commission, or authority.
[
2007 c 381 s 1
.]
RCW 82.04.620
Exemptions
—
Certain prescription drugs.
In computing tax there may be deducted from the measure of tax imposed by RCW 82.04.290
(2) amounts received by physicians or clinics for drugs for infusion or injection by licensed physicians or their agents for human use pursuant to a prescription, but only if the amounts: (1) Are separately stated on invoices or other billing statements; (2) do not exceed the then current federal rate; and (3) are covered or required under a health care service program subsidized by the federal or state government. The federal rate means the rate at or below which the federal government or its agents reimburse providers for prescription drugs administered to patients as provided for in the medicare, part B, drugs average sales price information resource as published by the United States department of health and human services, or any successor index thereto.
[
2007 c 447 s 1
.]
NOTES:
Effective date
—
2007 c 447:
"This act takes effect October 1, 2007." [
2007 c 447 s 2
.]
RCW 82.04.627
Exemptions
—
Commercial airplane parts.
(1) Except as provided in subsection (2) of this section, for purposes of the taxes imposed under this chapter on the sale of parts to the manufacturer of a commercial airplane, the sale is deemed to take place at the site of the final testing or inspection under federal aviation regulation part 21, subpart F or G.
(2) This section does not apply to:
(a) Sales of a standard part, such as a nut or bolt, manufactured in compliance with a government or established industry specification;
(b) Sales of a product produced under a technical standard order authorization or letter of technical standard order design approval pursuant to federal aviation regulation part 21, subpart O; or
(c) Sales of parts in respect to which final testing or inspection under federal aviation regulation part 21, subpart F or G takes place in this state.
(3) "Commercial airplane" has the same meaning given in RCW 82.32.550
.
[
2015 c 86 s 301
;
2008 c 81 s 15
.]
NOTES:
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
RCW 82.04.628
Exemptions
—
Commercial fertilizer, agricultural crop protection products, and seed.
(1) This chapter does not apply to wholesale sales of commercial fertilizer, agricultural crop protection products, and seed, by an eligible distributor to an eligible retailer.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Affiliated persons" means persons who have any ownership interest, whether direct or indirect, in each other, or where any ownership interest, whether direct or indirect, is held in each of the persons by another person or by a group of other persons that are affiliated with respect to each other.
(b) "Agricultural crop protection products" has the same meaning as provided in RCW 82.21.040
.
(c) "Commercial fertilizer" has the same meaning as provided in RCW 15.54.270
.
(d) "Seed" means seed potatoes and all other "agricultural seed" as defined in RCW 15.49.011
and conditioned for use in planting.
(e) "Eligible distributor" means a wholesaler who purchases commercial fertilizer, agricultural crop protection products, and seed from the manufacturer and resells those products only to eligible retailers who are not affiliated persons and who have an ownership interest in an entity that has at least a fifty percent ownership interest in the wholesaler.
(f) "Eligible retailer" means a person engaged in the business of making retail sales of commercial fertilizer, agricultural crop protection products, and seed, that also holds at least a five percent ownership interest in an entity that holds at least a fifty percent ownership interest in an eligible distributor.
(3) This section is exempt from the provisions of RCW 82.32.805
and
82.32.808
.
[
2017 3rd sp.s. c 37 s 302
.]
NOTES:
Tax preference performance statement
—
2017 3rd sp.s. c 37 s 302:
"(1) This section is the tax preference performance statement for the tax preferences contained in section 302, chapter 37, Laws of 2017 3rd sp. sess. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to reduce structural inefficiencies, as indicated in RCW 82.32.808
(2)(d).
(3) It is the legislature's specific public policy objective to provide tax relief to certain distributors of commercial fertilizer, agricultural crop protection products, and seeds. If a review finds that the number of wholesalers of agricultural crop protection products, seed, and fertilizer qualifying for the exemption has increased or stayed the same, then the legislature intends to extend the expiration date of the tax preferences.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee may refer to the department of revenue's data." [
2017 3rd sp.s. c 37 s 301
.]
Effective date
—
2017 3rd sp.s. c 37 ss 301, 302, and 1001-1003:
"Parts III and X 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, 2017." [
2017 3rd sp.s. c 37 s 1402
.]
RCW 82.04.635
Exemptions
—
Nonprofits providing legal services to low-income persons.
This chapter does not apply to nonprofit organizations primarily engaged in the provision of legal services to low-income individuals from whom no charge for services is collected. For the purpose of this section, "nonprofit" means an organization exempt from federal income tax under Title 26 U.S.C. Sec. 501(c) of the federal internal revenue code.
[
2009 c 508 s 1
.]
RCW 82.04.640
Exemptions
—
Washington vaccine association
—
Certain assessments received.
This chapter does not apply to assessments described in RCW 70.290.030
and
70.290.040
received by a nonprofit corporation established under RCW 70.290.020
.
[
2010 c 174 s 16
.]
NOTES:
Effective date
—
2010 c 174:
See RCW 70.290.900
.
RCW 82.04.645
Exemptions
—
Financial institutions
—
Amounts received from certain affiliated persons.
(1) This chapter does not apply to amounts received by a financial institution from an affiliated person if the amounts are received from transactions that are required to be at arm's length under sections 23A or 23B of the federal reserve act as existing on June 1, 2010, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section. For purposes of this subsection, "financial institution" has the same meaning as in RCW 82.04.080
.
(2) As used in this section, "affiliated" means under common control. "Control" means the possession, directly or indirectly, of more than fifty percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
[
2011 c 174 s 102
;
2010 1st sp.s. c 23 s 110
.]
NOTES:
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
RCW 82.04.650
Exemptions
—
Investment conduits and securitization entities.
(1) This chapter does not apply to amounts received by investment conduits or securitization entities from cash and securities.
(2) For purposes of this section, the following definitions apply:
(a) "Investment conduit" means an entity formed by a financial institution as defined in RCW 82.04.080
for the express purpose of holding or owning cash or securities if the entity formed:
(i) Has no employees;
(ii) Has no direct profit-making motive;
(iii) Owns no tangible assets, other than cash or securities;
(iv) Holds or owns cash or securities solely as a conduit, allocating its income to holders of its ownership interests; and
(v) Has, within twelve months of its organization or initial capitalization date, issued ownership interests to other than affiliated persons, equal to or greater than twenty-five percent of its total issued ownership interests.
(b) "Securities" has the same meaning as in section 2 of the securities act of 1933 and includes eligible assets as defined by Rule 3a-7 of the investment company act, as the law and rule exist on June 1, 2010, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section.
(c) "Securitization entity" means an entity created by a bank holding company if the entity created:
(i) Has no employees;
(ii) Has no direct profit-making motive;
(iii) Owns no tangible assets, other than cash, fixed or revolving discrete pools of credit or charge card receivables originated by a financial institution, or securities;
(iv) Acts solely as a conduit, allocating its income to holders of its ownership interests; and
(v) Has as its sole business activities the:
(A) Acquisition of such discrete pools of credit or charge card receivables; and
(B) Issuance or causing the issuance of securities primarily to persons not affiliated with the entity.
(d) "Bank holding company" has the same meaning as provided in the bank holding company act of 1956, as existing on June 1, 2010, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section.
(e) "No direct profit-making motive" means that all of an entity's income, less a reasonable servicing fee, is paid to holders of its ownership interests.
(f) "Ownership interest" means interests categorized as debt or equity for purposes of federal tax or generally accepted accounting principles.
(g) "Affiliated" has the same meaning as in RCW 82.04.645
.
[
2010 1st sp.s. c 23 s 111
.]
NOTES:
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
RCW 82.04.655
Exemptions
—
Joint municipal utility services authorities.
This chapter does not apply to any payments between, or any transfer of assets to or from, a joint municipal utility services authority created under chapter
39.106
RCW and any of its members.
[
2011 c 258 s 11
.]
NOTES:
Short title
—
Purpose
—
Intent
—
2011 c 258:
See RCW 39.106.010
.
RCW 82.04.660
Exemptions
—
Environmental handling charges
—
Mercury-containing lights.
(Effective until January 1, 2035.)
(1) An exemption from the taxes imposed in this chapter is provided for:
(a) Producers, with respect to environmental handling charges added to the purchase price of mercury-containing lights either by the producer or a retailer pursuant to an agreement with the producer;
(b) Retailers, with respect to environmental handling charges added to the purchase price of mercury-containing lights sold at retail, including the portion of environmental handling charges retained as reimbursement for any costs associated with the collection and remittance of the charges; and
(c) Stewardship organizations, with respect to environmental handling charges received from producers and retailers and to the receipts from charges to participating producers and legacy producers.
(2) This section is not subject to the requirements of RCW 82.32.805
and
82.32.808
.
(3) For purposes of this section, the definitions in RCW 70A.505.020
apply.
[
2024 c 339 s 15
;
2020 c 20 s 1469
;
2015 c 185 s 2
.]
NOTES:
Finding
—
Intent
—
2024 c 339:
See note following RCW 70A.505.010
.
Finding
—
Intent
—
2015 c 185:
"The legislature finds that Engrossed Substitute House Bill No. 2246, enacted in 2014, created an environmental handling charge. However, the 2014 legislature did not intend for business and occupation taxes to be imposed on top of such charge. Therefore, the legislature intends to clarify that environmental handling charges are not subject to business and occupation taxation." [
2015 c 185 s 1
.]
RCW 82.04.665
Exemptions
—
Adaptive recreational and rehabilitation facilities.
(Expires January 1, 2035.)
(1) This chapter does not apply to any amounts received as the result of sales on a federal military reservation by a nonprofit organization under Title 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986, as amended, as of October 1, 2024, that operates an adaptive recreational and rehabilitation facility dedicated to the assistance of disabled veterans and members of the armed forces of the United States of America.
(2) For the purposes of this section, "adaptive recreational and rehabilitation facility" means a facility that provides activity modifications, assistive technologies, or other services to allow people with disabilities to participate in recreational activities, sports, or physical rehabilitation efforts.
(3) This section expires January 1, 2035.
[
2024 c 141 s 2
.]
NOTES:
Tax preference performance statement
—
2024 c 141 ss 2-4:
"(1) This section is the tax preference performance statement for the tax preference contained in sections 2 through 4, chapter 141, Laws of 2024. 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 to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(3) It is the legislature's specific public policy objective to reduce the tax burden on individuals and businesses imposed by the existing business and occupation tax rates.
(4) If the review finds that there is an increase of the utilization of adaptive recreational and rehabilitation facilities by disabled veterans and members of the armed forces of the United States of America then the legislature intends to extend the expiration date of this tax preference.
(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." [
2024 c 141 s 1
.]
Effective date
—
2024 c 141:
"This act takes effect October 1, 2024." [
2024 c 141 s 5
.]
RCW 82.04.750
Exemptions
—
Restaurant employee meals.
(1) This chapter does not apply in respect to meals provided by a restaurant without specific charge to its employees.
(2) For the purposes of this section, the definitions in RCW 82.08.9995
apply.
[
2015 c 86 s 302
;
2011 c 55 s 1
.]
NOTES:
Effective date
—
2011 c 55:
See note following RCW 82.08.9995
.
RCW 82.04.755
Exemptions
—
Grants received by a nonprofit organization for the program established under RCW 70A.200.140
(1)(b)(ii).
(1) This chapter does not apply to grants received by a nonprofit organization from the matching fund competitive grant program established in RCW 70A.200.140
(1)(b)(ii).
(2) This section is not subject to the requirements of RCW 82.32.805
and
82.32.808, and is not subject to an expiration date.
[
2020 c 20 s 1470
;
2015 c 15 s 7
.]
RCW 82.04.756
Exemptions
—
Cannabis cooperatives.
(1) This chapter does not apply to any cooperative in respect to growing cannabis, or manufacturing cannabis concentrates, useable cannabis, or cannabis-infused products, as those terms are defined in RCW 69.50.101
.
(2) The tax preference authorized in this section is not subject to the provisions of RCW 82.32.805
and
82.32.808
.
[
2022 c 16 s 143
;
2015 c 70 s 40
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
2015 c 70 ss 12, 19, 20, 23-26, 31, 35, 40, and 49:
See note following RCW 69.50.357
.
Short title
—
Findings
—
Intent
—
References to Washington state liquor control board
—
Draft legislation
—
2015 c 70:
See notes following RCW 66.08.012
.
RCW 82.04.758
Exceptions
—
Services for farms.
(1) This chapter does not apply to any:
(a) Person performing custom farming services for a farmer, when the person performing the custom farming services is: (i) An eligible farmer; or (ii) at least 50 percent owned by an eligible farmer; or
(b) Person performing farm management services, contract labor services, services provided with respect to animals that are agricultural products, or any combination of these services, for a farmer or for a person performing custom farming services, when the person performing the farm management services, contract labor services, services with respect to animals, or any combination of these services, and the farmer or person performing custom farming services are related.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Custom farming services" means the performance of specific farming operations through the use of any farm machinery or equipment, farm implement, or draft animal, together with an operator, when: (A) The specific farming operation consists of activities directly related to the growing, raising, or producing of any agricultural product to be sold or consumed by a farmer; and (B) the performance of the specific farming operation is for, and under a contract with, or the direction or supervision of, a farmer. "Custom farming services" does not include the custom application of fertilizers, chemicals, or biologicals, or any services related to the growing, raising, or producing of cannabis.
(ii) For the purposes of this subsection (2)(a), "specific farming operation" includes specific planting, cultivating, or harvesting activities, or similar specific farming operations. The term does not include veterinary services as defined in RCW 18.92.010
; farrier, boarding, training, or appraisal services; artificial insemination or stud services, or agricultural consulting services; packing or processing of agricultural products; or pumping or other waste disposal services.
(b) "Eligible farmer" means a person who is eligible for an exemption certificate under RCW 82.08.855
at the time that the custom farming services are rendered, regardless of whether the person has applied for an exemption certificate under RCW 82.08.855
.
(c) "Farm management services" means the consultative decisions made for the operations of the farm including, but not limited to, determining which crops to plant, the choice and timing of application of fertilizers and chemicals, the horticultural practices to apply, the marketing of crops and livestock, and the care and feeding of animals. "Farm management services" does not include any services related to the growing, raising, or producing of cannabis.
(d) "Related" means having any of the relationships specifically described in section 267(b) (1), (2), and (4) through (13) of the internal revenue code, as amended or renumbered as of January 1, 2007.
[
2023 c 470 s 3015
;
2022 c 119 s 1
.]
NOTES:
Explanatory statement
—
2023 c 470:
See note following RCW 10.99.030
.
Tax preference performance statement
—
2022 c 119:
"(1) This section is the tax preference performance statement for the tax preference contained in sections 1 and 2, chapter 119, Laws of 2022. This performance statement 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 this tax preference as one intended to reduce structural inefficiencies in the tax structure, as indicated in RCW 82.32.808
(2)(d).
(3) It is the legislature's specific public policy objective to provide tax relief to farmers, including those who changed their farm structure in response to federal regulations regarding irrigated water." [
2022 c 119 s 3
.]
Tax preference automatic expiration date exemption
—
Tax preference metrics exemption
—
2022 c 119:
"The provisions of RCW 82.32.805
and
82.32.808
(4) do not apply to this act." [
2022 c 119 s 4
.]
Effective date
—
2022 c 119:
"This act takes effect July 1, 2022." [
2022 c 119 s 5
.]
RCW 82.04.759
Exemptions
—
Newspapers
—
Eligible digital content.
(Effective until January 1, 2026.)
(1) This chapter does not apply to amounts received by any person for engaging in any of the following activities:
(a) Printing a newspaper, publishing a newspaper, or both; or
(b) Publishing eligible digital content by a person who reported under the printing and publishing tax classification for the reporting period that covers January 1, 2008, for engaging in printing and/or publishing a newspaper, as defined on January 1, 2008.
(2) The exemption under this section must be reduced by an amount equal to the value of any expenditure made by the person during the tax reporting period. For purposes of this subsection, "expenditure" has the meaning provided in *RCW 42.17A.005
.
(3) If a person who is primarily engaged in printing a newspaper, publishing a newspaper, or publishing eligible digital content, or any combination of these activities, charges a single, nonvariable amount to advertise in, subscribe to, or access content in both a publication identified in subsection (1) of this section and another type of publication, the entire amount is exempt under this section.
(4) For purposes of this section, "eligible digital content" means a publication that:
(a) Is published at regularly stated intervals of at least once per month;
(b) Features written content, the largest category of which, as determined by word count, contains material that identifies the author or the original source of the material; and
(c) Is made available to readers exclusively in an electronic format.
(5) The exemption under this section applies only to persons primarily engaged in printing a newspaper, publishing a newspaper, or publishing eligible digital content, or any combination of these activities, unless these business activities were previously engaged in by an affiliated person and were not the affiliated person's primary business activity.
(6) A person claiming the exemption under this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(7) Any person claiming the exemption under this section who fails to meet the requirement under subsection (6) of this section is subject to the provisions under RCW 82.32.534
(4) equal to the gross income of the business activities under this section multiplied by the rate of 0.484 percent.
(8) If at any time the department finds that a person is not eligible for the exemption under this section, the amount of taxes for which an exemption has been granted is immediately due equal to the gross income of the business activities under this section multiplied by the rate of 0.484 percent. The department must assess interest, but not penalties, on the taxes for which the person is not eligible for the exemption. The interest must be assessed at the rate provided for delinquent excise taxes under chapter
82.32
RCW, is retroactive to the date the tax exemption was taken, and accrues until the taxes for which the exemption has been used are paid.
(9) For purposes of this section, the following definitions apply:
(a) "Affiliated" has the same meaning as provided in RCW 82.04.299
.
(b) "Primarily" means, with respect to a business activity or combination of business activities of a taxpayer, more than 50 percent of the taxpayer's gross worldwide income from all business activities, whether subject to tax under this chapter or not, comes from such activity or activities.
[
2025 c 15 s 1
;
2024 c 252 s 2
;
2023 c 286 s 2
.]
NOTES:
*Reviser's note:
RCW 42.17A.005
was repealed by 2024 c 164 s 257, effective January 1, 2026.
Expiration date
—
2025 c 15 s 1:
"Section 1 of this act expires January 1, 2026." [
2025 c 15 s 3
.]
Expiration date
—
2024 c 252 s 2:
"Section 2 of this act expires January 1, 2034." [
2024 c 252 s 7
.]
Tax preference performance statement
—
2023 c 286 s 2:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 286, 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 to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals and to create or retain jobs, as indicated in RCW 82.32.808
(2) (c) and (e).
(3) It is the legislature's specific public policy objective to protect and support local journalism.
(4) If a review finds that the tax preference accomplishes its goal of supporting local journalism across the state, measured by retaining 75 percent of the journalism jobs, local newspapers, and community-focused online news outlets based in Washington as of December 31, 2022, or if a review finds that the tax preference enables locally based journalism outlets to continue to exist when compared to states that did not provide similar tax incentives, then the legislature intends to extend the expiration date of this tax preference.
(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.
(6) RCW 82.32.808
(6) does not apply to the tax preference created in section 2 of this act." [
2023 c 286 s 7
.]
Findings
—
2023 c 286:
"The legislature finds that Washington state's local newspapers and online digital news publishers are important providers of journalism in their communities. Across the state and the country, local newspapers are vanishing at an alarming rate.
Since the advent of the internet, Washington state newspapers, large and small, have experienced severe financial losses that caused layoffs and reduced journalistic capacity. Between 2005 and 2020, Washington state newspapers lost 67 percent of their newsroom employees. Many print media organizations operate at a deficit due to disruption of traditional revenue streams and even the surviving legacy news organizations are cutting staff and circulation. Washington state has lost more than two dozen weeklies and three dailies since 2004. The decline of these journalistic institutions represents a threat to democracy, government accountability, and civic engagement.
A Portland State University study found that the loss of local journalism is correlated to a decline in civic engagement, both nationally and in Washington state, which includes contacting a public office to express an opinion, participating in school groups, community associations, or civic organizations, and serving on a committee of any group or organization.
The legislature finds that local journalism can help keep watch over health trends in the community by identifying and preventing disease. The legislature finds that rural and underserved communities are the hardest hit in the area of public health when newspapers decline.
The legislature finds that local journalism helps combat government corruption and holds powerful institutions accountable.
Newspapers in Washington state have lobbied and editorialized for open public records, and fought attempts to rein in frivolous requests, costing local and state governments millions of dollars each year.
Without legislative action, the current business and occupation tax preference for newspaper publishers will expire on July 1, 2024." [
2023 c 286 s 1
.]
Effective date
—
2023 c 286:
"This act takes effect January 1, 2024." [
2023 c 286 s 8
.]
Expiration date
—
2023 c 286:
"This act expires January 1, 2034." [
2023 c 286 s 9
.]
PDF
RCW 82.04.759
Exemptions
—
Newspapers
—
Eligible digital content.
(Effective January 1, 2026, until January 1, 2034.)
(1) This chapter does not apply to amounts received by any person for engaging in any of the following activities:
(a) Printing a newspaper, publishing a newspaper, or both; or
(b) Publishing eligible digital content by a person who reported under the printing and publishing tax classification for the reporting period that covers January 1, 2008, for engaging in printing and/or publishing a newspaper, as defined on January 1, 2008.
(2) The exemption under this section must be reduced by an amount equal to the value of any expenditure made by the person during the tax reporting period. For purposes of this subsection, "expenditure" has the meaning provided in RCW 29B.10.230
.
(3) If a person who is primarily engaged in printing a newspaper, publishing a newspaper, or publishing eligible digital content, or any combination of these activities, charges a single, nonvariable amount to advertise in, subscribe to, or access content in both a publication identified in subsection (1) of this section and another type of publication, the entire amount is exempt under this section.
(4) For purposes of this section, "eligible digital content" means a publication that:
(a) Is published at regularly stated intervals of at least once per month;
(b) Features written content, the largest category of which, as determined by word count, contains material that identifies the author or the original source of the material; and
(c) Is made available to readers exclusively in an electronic format.
(5) The exemption under this section applies only to persons primarily engaged in printing a newspaper, publishing a newspaper, or publishing eligible digital content, or any combination of these activities, unless these business activities were previously engaged in by an affiliated person and were not the affiliated person's primary business activity.
(6) A person claiming the exemption under this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(7) Any person claiming the exemption under this section who fails to meet the requirement under subsection (6) of this section is subject to the provisions under RCW 82.32.534
(4) equal to the gross income of the business activities under this section multiplied by the rate of 0.484 percent.
(8) If at any time the department finds that a person is not eligible for the exemption under this section, the amount of taxes for which an exemption has been granted is immediately due equal to the gross income of the business activities under this section multiplied by the rate of 0.484 percent. The department must assess interest, but not penalties, on the taxes for which the person is not eligible for the exemption. The interest must be assessed at the rate provided for delinquent excise taxes under chapter
82.32
RCW, is retroactive to the date the tax exemption was taken, and accrues until the taxes for which the exemption has been used are paid.
(9) For purposes of this section, the following definitions apply:
(a) "Affiliated" has the same meaning as provided in RCW 82.04.299
.
(b) "Primarily" means, with respect to a business activity or combination of business activities of a taxpayer, more than 50 percent of the taxpayer's gross worldwide income from all business activities, whether subject to tax under this chapter or not, comes from such activity or activities.
[
2025 c 15 s 2
. Prior:
2024 c 252 s 2
;
2024 c 164 s 534
;
2023 c 286 s 2
.]
NOTES:
Effective date
—
2025 c 15 s 2:
"Section 2 of this act takes effect January 1, 2026." [
2025 c 15 s 4
.]
Expiration date
—
2025 c 15 s 2:
"Section 2 of this act expires January 1, 2034." [
2025 c 15 s 5
.]
Expiration date
—
2024 c 252 s 2:
"Section 2 of this act expires January 1, 2034." [
2024 c 252 s 7
.]
Expiration date
—
2024 c 164 s 534:
"Section 534 of this act expires January 1, 2034." [
2024 c 164 s 535
.]
Intent
—
Construction
—
Rules remain valid
—
Effective date
—
2024 c 164:
See notes following RCW 29B.10.010
.
Tax preference performance statement
—
2023 c 286 s 2:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 286, 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 to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals and to create or retain jobs, as indicated in RCW 82.32.808
(2) (c) and (e).
(3) It is the legislature's specific public policy objective to protect and support local journalism.
(4) If a review finds that the tax preference accomplishes its goal of supporting local journalism across the state, measured by retaining 75 percent of the journalism jobs, local newspapers, and community-focused online news outlets based in Washington as of December 31, 2022, or if a review finds that the tax preference enables locally based journalism outlets to continue to exist when compared to states that did not provide similar tax incentives, then the legislature intends to extend the expiration date of this tax preference.
(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.
(6) RCW 82.32.808
(6) does not apply to the tax preference created in section 2 of this act." [
2023 c 286 s 7
.]
Findings
—
2023 c 286:
"The legislature finds that Washington state's local newspapers and online digital news publishers are important providers of journalism in their communities. Across the state and the country, local newspapers are vanishing at an alarming rate.
Since the advent of the internet, Washington state newspapers, large and small, have experienced severe financial losses that caused layoffs and reduced journalistic capacity. Between 2005 and 2020, Washington state newspapers lost 67 percent of their newsroom employees. Many print media organizations operate at a deficit due to disruption of traditional revenue streams and even the surviving legacy news organizations are cutting staff and circulation. Washington state has lost more than two dozen weeklies and three dailies since 2004. The decline of these journalistic institutions represents a threat to democracy, government accountability, and civic engagement.
A Portland State University study found that the loss of local journalism is correlated to a decline in civic engagement, both nationally and in Washington state, which includes contacting a public office to express an opinion, participating in school groups, community associations, or civic organizations, and serving on a committee of any group or organization.
The legislature finds that local journalism can help keep watch over health trends in the community by identifying and preventing disease. The legislature finds that rural and underserved communities are the hardest hit in the area of public health when newspapers decline.
The legislature finds that local journalism helps combat government corruption and holds powerful institutions accountable.
Newspapers in Washington state have lobbied and editorialized for open public records, and fought attempts to rein in frivolous requests, costing local and state governments millions of dollars each year.
Without legislative action, the current business and occupation tax preference for newspaper publishers will expire on July 1, 2024." [
2023 c 286 s 1
.]
Effective date
—
2023 c 286:
"This act takes effect January 1, 2024." [
2023 c 286 s 8
.]
Expiration date
—
2023 c 286:
"This act expires January 1, 2034." [
2023 c 286 s 9
.]
RCW 82.04.760
Tax preferences
—
Expiration dates.
See RCW 82.32.805
for the expiration date of new tax preferences for the tax imposed under this chapter.
[
2013 2nd sp.s. c 13 s 1704
.]
NOTES:
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
RCW 82.04.765
Exemptions
—
Receipts attributable to assessment on architectural paint imposed pursuant to chapter
70A.515
RCW.
(1) This chapter does not apply to the receipts attributable to the assessment on architectural paint imposed pursuant to chapter
70A.515
RCW.
(2) This section is not subject to the requirements of RCW 82.32.805
and
82.32.808, and is not subject to an expiration date.
[
2020 c 20 s 1471
;
2019 c 344 s 15
.]
RCW 82.04.767
Exemptions
—
Qualifying grants
—
National emergency or state of emergency.
(1) This chapter does not apply to any person with respect to the value proceeding or accruing from a qualifying grant received on or after February 29, 2020.
(2) For purposes of this section, "qualifying grant" means an amount received, or relief from debt or other legal obligation received, that:
(a) Is received under a government-funded program either directly from a government entity, or through a nongovernmental third-party entity authorized by a government entity to distribute the program funds, or, in the case of relief from debt or other legal obligation, is received from a private entity under circumstances where, in exchange for providing the relief, the private entity receives some form of direct financial benefit from a government entity;
(b) Is provided to address the impacts of conditions giving rise to an official proclamation of a national emergency by the president of the United States or an official proclamation of a state of emergency by the governor of this state; and
(c) Is not an amount received:
(i) Under a contract, including a sole source contract, for the acquisition of specific goods or services, or both, by purchase, lease, or barter, that was solicited and established in accordance with procurement laws or regulations; or
(ii) For manufacturing, extracting, or making sales of products, when the amount received is determined based on the quantity of products manufactured, extracted, or sold. For purposes of this subsection (2)(c)(ii), "products" has the same meaning as in RCW 82.32.023
.
(3) For purposes of a grant awarded to address the impacts of conditions giving rise to a national emergency or state of emergency, the exemption under this section applies only if the legislation authorizing the grant or the associated legislative history, public records created by the grantor, or the terms of the underlying grant agreement between the grantor and grantee, clearly indicate that the grant was established to address the impacts of conditions giving rise to a national emergency or state of emergency.
(4) For purposes of this section, "government" means any national, tribal, state, or local government.
[
2021 c 4 s 1
.]
NOTES:
Retroactive application
—
2021 c 4:
"This act applies both prospectively and retroactively to February 29, 2020." [
2021 c 4 s 7
.]
Automatic expiration date and tax preference performance statement exemption
—
2021 c 4:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2021 c 4 s 8
.]
Effective date
—
2021 c 4:
"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 [February 19, 2021]." [
2021 c 4 s 9
.]
RCW 82.04.769
Application of chapter
—
Allowances, offset credits, and price ceiling units under chapter
70A.65
RCW.
(1) This chapter does not apply to amounts received by a covered entity, opt-in entity, or entity that receives no-cost allowances, as defined in chapter
70A.65
RCW, from the receipt, generation, purchase, sale, transfer, or retirement of allowances, offset credits, or price ceiling units under chapter
70A.65
RCW.
(2) The provisions of RCW 82.32.805
and
82.32.808
do not apply to subsection (1) of this section.
[
2024 c 115 s 1
.]
NOTES:
Retroactive application
—
2024 c 115:
"This act applies both retrospectively and prospectively." [
2024 c 115 s 3
.]
Effective date
—
2024 c 115:
"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 April 1, 2024." [
2024 c 115 s 4
.]
RCW 82.04.770
Deduction of amounts derived from charge collected pursuant to chapter
70A.530
RCW.
In computing the tax due under this chapter, there may be deducted any amounts derived from the pass-through charge collected by a taxpayer pursuant to chapter
70A.530
RCW.
[
2020 c 138 s 8
.]
NOTES:
Application of RCW 82.32.805
and
82.32.808
—
2020 c 138:
See note following RCW 70A.530.005
.
RCW 82.04.775
Application of chapter
—
Amounts received under chapter
70A.535
RCW.
(1) This chapter does not apply to amounts received from the generation, purchase, sale, transfer, or retirement of credits under chapter
70A.535
RCW.
(2) The provisions of RCW 82.32.805
and
82.32.808
do not apply to subsection (1) of this section.
[
2021 c 317 s 16
.]
NOTES:
Severability
—
2021 c 317:
See note following RCW 70A.535.005
.
RCW 82.04.777
Application of chapter
—
Amounts received under chapter
70A.555
RCW.
(1) This chapter does not apply to the receipts of a battery stewardship organization formed under chapter
70A.555
RCW from charges to participating producers under a battery stewardship program as provided in RCW 70A.555.060
.
(2) This section is not subject to the requirements of RCW 82.32.805
and
82.32.808
and is not subject to an expiration date.
(3) The definitions in RCW 70A.555.010
apply throughout this section unless the context clearly requires otherwise.
[
2023 c 434 s 22
.]
RCW 82.04.900
Construction
—
1961 c 15.
RCW 82.04.440
shall have retrospective effect to August 1, 1950, as well as have prospective effect.
[
1961 c 15 s 82.04.900
. Prior:
1951 1st ex.s. c 9 s 15
.]