RCW 82.32.010
Application of chapter stated.
The provisions of this chapter apply with respect to the taxes imposed under chapters
82.04
through
82.14
RCW, under chapter
82.14B
RCW, under chapters
82.16
through
82.29A
RCW of this title, under chapter
84.33
RCW, and under other titles, chapters, and sections in such manner and to such extent as indicated in each such title, chapter, or section.
[
2010 1st sp.s. c 19 s 13
;
1998 c 304 s 12
;
1984 c 204 s 26
;
1983 c 3 s 219
;
1981 c 148 s 12
;
1961 c 15 s 82.32.010
. Prior:
1935 c 180 s 185
; RRS s 8370-185.]
NOTES:
Effective dates
—
2010 1st sp.s. c 19:
See note following RCW 82.14B.010
.
Findings
—
Effective dates
—
1998 c 304:
See notes following RCW 82.14B.020
.
Savings
—
Effective date
—
1984 c 204:
See notes following RCW 84.33.035
.
Purpose
—
Severability
—
Effective dates
—
1981 c 148:
See notes following RCW 84.33.130
.
RCW 82.32.020
Definitions.
For the purposes of this chapter:
(1) The meaning attributed in chapters
82.01
through
82.27
RCW to the words and phrases "tax year," "taxable year," "person," "company," "gross proceeds of sales," "gross income of the business," "business," "engaging in business," "successor," "gross operating revenue," "gross income," "taxpayer," "retail sale," "seller," "buyer," "purchaser," "extended warranty," and "value of products" apply equally to the provisions of this chapter.
(2) Unless the context clearly requires otherwise, the term "tax" includes any monetary exaction, regardless of its label, that the department is responsible for collecting, but not including interest, penalties, the surcharge imposed in RCW 40.14.027, or fees incurred by the department and recouped from taxpayers.
(3) Whenever "property" or "personal property" is used, those terms must be construed to include digital goods and digital codes unless: (a) It is clear from the context that the term "personal property" is intended only to refer to tangible personal property; (b) it is clear from the context that the term "property" is intended only to refer to tangible personal property, real property, or both; or (c) to construe the term "property" or "personal property" as including digital goods and digital codes would yield unlikely, absurd, or strained consequences.
(4) The definitions in this subsection apply throughout this chapter, unless the context clearly requires otherwise.
(a) "Agreement" means the streamlined sales and use tax agreement.
(b) "Associate member" means a petitioning state that is found to be in compliance with the agreement and changes to its laws, rules, or other authorities necessary to bring it into compliance are not in effect, but are scheduled to take effect on or before January 1, 2008. The petitioning states, by majority vote, may also grant associate member status to a petitioning state that does not receive an affirmative vote of three-fourths of the petitioning states upon a finding that the state has achieved substantial compliance with the terms of the agreement as a whole, but not necessarily each required provision, measured qualitatively, and there is a reasonable expectation that the state will achieve compliance by January 1, 2008.
(c) "Certified automated system" means software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction.
(d) "Certified service provider" means an agent certified under the agreement to perform all of the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases.
(e)(i) "Member state" means a state that:
(A) Has petitioned for membership in the agreement and submitted a certificate of compliance; and
(B) Before the effective date of the agreement, has been found to be in compliance with the requirements of the agreement by an affirmative vote of three-fourths of the other petitioning states; or
(C) After the effective date of the agreement, has been found to be in compliance with the agreement by a three-fourths vote of the entire governing board of the agreement.
(ii) Membership by reason of (e)(i)(A) and (B) of this subsection is effective on the first day of a calendar quarter at least sixty days after at least ten states comprising at least twenty percent of the total population, as determined by the 2000 federal census, of all states imposing a state sales tax have petitioned for membership and have either been found in compliance with the agreement or have been found to be an associate member under section 704 of the agreement.
(iii) Membership by reason of (e)(i)(A) and (C) of this subsection is effective on the state's proposed date of entry or the first day of the calendar quarter after its petition is approved by the governing board, whichever is later, and is at least sixty days after its petition is approved.
(f) "Model 1 seller" means a seller that has selected a certified service provider as its agent to perform all the seller's sales and use tax functions as outlined in the contract between the streamlined sales tax governing board and the certified service provider, other than the seller's obligation to remit tax on its own purchases.
(g) "Model 2 seller" means a seller that has selected a certified automated system to perform part of its sales and use tax functions, but retains responsibility for remitting the tax.
(h) "Model 3 seller" means a seller that has sales in at least five member states, has total annual sales revenue of at least five hundred million dollars, has a proprietary system that calculates the amount of tax due each jurisdiction, and has entered into a performance agreement with the member states that establishes a tax performance standard for the seller. As used in this subsection (4)(h), a seller includes an affiliated group of sellers using the same proprietary system.
(i) "Source" means the location in which the sale or use of tangible personal property, a digital good or digital code, an extended warranty, or a digital automated service or other service, subject to tax under chapter
82.08, 82.12, 82.14, or
82.14B
RCW, is deemed to occur.
[
2019 c 8 s 402
;
2015 c 86 s 309
;
2009 c 535 s 1111
;
2007 c 6 s 101
;
2003 1st sp.s. c 13 s 16
;
1983 c 3 s 220
;
1961 c 15 s 82.32.020
. Prior:
1935 c 180 s 186
; RRS s 8370-186.]
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
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Part headings not law
—
2007 c 6:
"Part headings used in this act are not any part of the law." [
2007 c 6 s 1702
.]
Savings
—
2007 c 6:
"This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed in this act or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections." [
2007 c 6 s 1703
.]
Effective date
—
2007 c 6:
"Sections 101 through 105, 201, 202, 401, 501 through 503, 601, 701 through 703, 801, 802, 901 through 905, 1001, 1002, 1004, 1005, 1007 through 1013, 1015 through 1017, 1019 through 1024, 1101 through 1104, 1201 through 1203, 1302, 1401 through 1403, 1501, 1502, and 1601 of this act take effect July 1, 2008." [
2007 c 6 s 1704
.]
Severability
—
2007 c 6:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
2007 c 6 s 1708
.]
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Effective dates
—
2003 1st sp.s. c 13:
See note following RCW 82.32.045
.
RCW 82.32.023
Definition of product for agreement purposes.
For purposes of construing those provisions of the streamlined sales and use tax agreement that have been incorporated into this title, and unless the context requires otherwise, the terms "product" and "products" refer to tangible personal property, digital goods, digital codes, digital automated services, other services, extended warranties, and anything else that can be sold or used.
[
2009 c 535 s 1112
;
2007 c 6 s 104
.]
NOTES:
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
.
RCW 82.32.026
Registration
—
Seller's agent
—
Streamlined sales and use tax agreement.
(1) A seller, by written agreement, may appoint a person to represent the seller as its agent. The seller's agent has authority to register the seller with the department under RCW 82.32.030
. An agent may also be a certified service provider, with authority to perform all the seller's sales and use tax functions, except that the seller remains responsible for remitting the tax on its own purchases.
(2) The seller or its agent must provide the department with a copy of the written agreement upon request.
[
2007 c 6 s 201
.]
NOTES:
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
RCW 82.32.030
Registration certificates
—
Threshold levels
—
Central registration system.
(1) Except as provided in subsections (2) and (3) of this section, if any person engages in any business or performs any act upon which a tax is imposed by the preceding chapters, he or she must, under such rules as the department prescribes, apply for and obtain from the department a registration certificate. Such registration certificate is personal and nontransferable and is valid as long as the taxpayer continues in business and pays the tax accrued to the state. In case business is transacted at two or more separate places by one taxpayer, a separate registration certificate for each place at which business is transacted with the public is required. Each certificate must be numbered and must show the name, residence, and place and character of business of the taxpayer and such other information as the department of revenue deems necessary and must be posted in a conspicuous place at the place of business for which it is issued. Where a place of business of the taxpayer is changed, the taxpayer must return to the department the existing certificate, and a new certificate will be issued for the new place of business. No person required to be registered under this section may engage in any business taxable hereunder without first being so registered. The department, by rule, may provide for the issuance of certificates of registration to temporary places of business.
(2) Unless the person is a dealer as defined in RCW 9.41.010, registration under this section is not required if the following conditions are met:
(a) A person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter
82.04
RCW, is less than twelve thousand dollars per year;
(b) The person's gross income of the business from all activities taxable under chapter
82.16
RCW is less than twelve thousand dollars per year;
(c) The person is not required to collect or pay to the department of revenue any other tax or fee that the department is authorized to collect; and
(d) The person is not otherwise required to obtain a license subject to the business license application procedure provided in chapter
19.02
RCW.
(3) All persons who agree to collect and remit sales and use tax to the department under the agreement must register through the central registration system authorized under the agreement. Persons required to register under subsection (1) of this section are not relieved of that requirement because of registration under this subsection (3).
(4) Persons registered under subsection (3) of this section who are not required to register under subsection (1) of this section and who are not otherwise subject to the requirements of chapter
19.02
RCW are not subject to the fees imposed by the department under the authority of RCW 19.02.075
.
[
2017 c 323 s 505
;
2011 c 298 s 38
;
2007 c 6 s 202
;
1996 c 111 s 2
. Prior:
1994 sp.s. c 7 s 446
;
1994 sp.s. c 2 s 2
;
1992 c 206 s 8
;
1982 1st ex.s. c 4 s 1
;
1979 ex.s. c 95 s 1
;
1975 1st ex.s. c 278 s 77
;
1961 c 15 s 82.32.030
; prior: 1941 c 178 s 19, part; 1937 c 227 s 16, part; 1935 c 180 s 187, part; Rem. Supp. 1941 s 8370-187, part.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Purpose
—
Intent
—
Agency transfer
—
Contracting
—
Effective date
—
2011 c 298:
See notes following RCW 19.02.020
.
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
.
Findings
—
Purpose
—
1996 c 111:
"The legislature finds that small businesses play a vital role in the state's current and future economic health. The legislature also finds that the state's excise tax reporting and registration requirements are unduly burdensome for small businesses incurring little or no tax liability. The legislature recognizes the costs associated in complying with the reporting and registration requirements that are hindering the further development of those businesses. For these reasons the legislature with this act simplifies the tax reporting and registration requirements for certain small businesses." [
1996 c 111 s 1
.]
Effective date
—
1996 c 111:
"This act shall take effect July 1, 1996." [
1996 c 111 s 5
.]
Finding
—
Intent
—
Severability
—
1994 sp.s. c 7:
See notes following RCW 43.70.540
.
Effective date
—
1994 sp.s. c 7 ss 401-410, 413-416, 418-437, and 439-460:
See note following RCW 9.41.010
.
Effective date
—
1994 sp.s. c 2:
See note following RCW 82.04.4451
.
Effective date
—
1992 c 206:
See note following RCW 82.04.170
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.033
Registration certificates
—
Special events
—
Promoter's duties
—
Penalties
—
Definitions.
(1) A promoter of a special event within the state of Washington shall not permit a vendor to make or solicit retail sales of tangible personal property or services at the special event unless the promoter makes a good faith effort to obtain verification that the vendor has obtained a certificate of registration from the department.
(2) A promoter of a special event shall:
(a) Keep, in addition to the records required under RCW 82.32.070, a record of the dates and place of each special event, and the name, address, and registration certificate number of each vendor permitted to make or solicit retail sales of tangible personal property or services at the special event. The record of the date and place of a special event, and the name, address, and registration certificate number of each vendor at the event shall be preserved for a period of one year from the date of a special event; and
(b) Provide to the department, within twenty days of receipt of a written request from the department, a list of vendors permitted to make or solicit retail sales of tangible personal property or services. The list shall be in a form and contain such information as the department may require, and shall include the date and place of the event, and the name, address, and registration certificate number of each vendor.
(3) If a promoter fails to make a good faith effort to comply with the provisions of this section, the promoter is liable for the penalties provided in this subsection (3).
(a) If a promoter fails to make a good faith effort to comply with the provisions of subsection (1) of this section, the department shall impose a penalty of one hundred dollars for each vendor permitted to make or solicit retail sales of tangible personal property or services at the special event.
(b) If a promoter fails to make a good faith effort to comply with the provisions of subsection (2)(b) of this section, the department shall impose a penalty of:
(i) Two hundred fifty dollars if the information requested is not received by the department within twenty days of the department's written request; and
(ii) One hundred dollars for each vendor for whom the information as required by subsection (2)(b) of this section is not provided to the department.
(4) The aggregate of penalties imposed under subsection (3) of this section may not exceed two thousand five hundred dollars for a special event if the promoter has not previously been penalized under this section. Under no circumstances is a promoter liable for sales tax or business and occupation tax not remitted to the department by a vendor at a special event.
(5) The department shall notify a promoter by mail, or electronically as provided in RCW 82.32.135, of any penalty imposed under this section, and the penalty shall be due within thirty days from the date of the notice. If any penalty imposed under this section is not received by the department by the due date, there shall be assessed interest on the unpaid amount beginning the day following the due date until the penalty is paid in full. The rate of interest shall be computed on a daily basis on the amount of outstanding penalty at the rate as computed under RCW 82.32.050
(2). The rate computed shall be adjusted annually in the same manner as provided in RCW 82.32.050
(1)(c).
(6) For purposes of this section:
(a) "Promoter" means a person who organizes, operates, or sponsors a special event and who contracts with vendors for participation in the special event.
(b) "Special event" means an entertainment, amusement, recreational, educational, or marketing event, whether held on a regular or irregular basis, at which more than one vendor makes or solicits retail sales of tangible personal property or services. The term includes, but is not limited to: Auto shows, recreational vehicle shows, boat shows, home shows, garden shows, hunting and fishing shows, stamp shows, comic book shows, sports memorabilia shows, craft shows, art shows, antique shows, flea markets, exhibitions, festivals, concerts, swap meets, bazaars, carnivals, athletic contests, circuses, fairs, or other similar activities. "Special event" does not include an event that is organized for the exclusive benefit of any nonprofit organization as defined in RCW 82.04.3651
. An event is organized for the exclusive benefit of a nonprofit organization if all of the gross proceeds of retail sales of all vendors at the event inure to the benefit of the nonprofit organization on whose behalf the event is being held. "Special event" does not include athletic contests that involve competition between teams, when such competition consists of more than five contests in a calendar year by at least one team at the same facility or site.
(c) "Vendor" means a person who, at a special event, makes or solicits retail sales of tangible personal property or services.
(7) "Good faith effort to comply" and "good faith effort to obtain" may be shown by, but is not limited to, circumstances where a promoter:
(a) Includes a statement on all written contracts with its vendors that a valid registration certificate number issued by the department of revenue is required for participation in the special event and requires vendors to indicate their registration certificate number on these contracts; and
(b) Provides the department with a list of vendors and their associated registration certificate numbers as provided in subsection (2)(b) of this section.
(8) This section does not apply to:
(a) A special event whose promoter does not charge more than two hundred dollars for a vendor to participate in a special event;
(b) A special event whose promoter charges a percentage of sales instead of, or in addition to, a flat charge for a vendor to participate in a special event if the promoter, in good faith, believes that no vendor will pay more than two hundred dollars to participate in the special event; or
(c) A person who does not organize, operate, or sponsor a special event, but only provides a venue, supplies, furnishings, fixtures, equipment, or services to a promoter of a special event.
[
2007 c 111 s 105
;
2004 c 253 s 1
;
2003 1st sp.s. c 13 s 15
.]
NOTES:
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Effective dates
—
2003 1st sp.s. c 13:
See note following RCW 82.32.045
.
RCW 82.32.045
Taxes
—
When due and payable
—
Reporting periods
—
Verified annual returns
—
Relief from filing requirements.
(1) Except as otherwise provided in this chapter and subsection (6) of this section, payments of the taxes imposed under chapters
82.04, 82.08, 82.12, 82.14, 82.16, and
82.27
RCW, along with reports and returns on forms prescribed by the department, are due monthly within 25 days after the end of the month in which the taxable activities occur.
(2) The department of revenue may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. Except as provided in subsection (3) of this section, for these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.
(3) For annual filers, tax payments, along with reports and returns on forms prescribed by the department, are due on or before April 15th of the year immediately following the end of the period covered by the return.
(4) The department of revenue may also require verified annual returns from any taxpayer, setting forth such additional information as it may deem necessary to correctly determine tax liability.
(5) Notwithstanding subsections (1) and (2) of this section, the department may relieve any person of the requirement to file returns if the following conditions are met:
(a) The person's value of products, gross proceeds of sales, or gross income of the business, from all business activities taxable under chapter
82.04
RCW, is less than $125,000 per year;
(b) The person's gross income of the business from all activities taxable under chapter
82.16
RCW is less than $24,000 per year; and
(c) The person is not required to collect or pay to the department of revenue any other tax or fee which the department is authorized to collect.
(6)(a) Taxes imposed under chapter
82.08
or
82.12
RCW on taxable events that occur beginning January 1, 2019, through June 30, 2019, and payable by a consumer directly to the department are due, on returns prescribed by the department, by July 25, 2019.
(b) This subsection (6) does not apply to the reporting and payment of taxes imposed under chapters
82.08
and
82.12
RCW:
(i) On the retail sale or use of motor vehicles, vessels, or aircraft; or
(ii) By consumers who are engaged in business, unless the department has relieved the consumer of the requirement to file returns pursuant to subsection (5) of this section.
[
2023 c 374 s 12
;
2022 c 295 s 2
. Prior:
2019 c 63 s 2
;
2019 c 8 s 302
;
2010 1st sp.s. c 23 s 1103
;
2006 c 256 s 1
;
2003 1st sp.s. c 13 s 8
;
1999 c 357 s 1
;
1996 c 111 s 3
;
1983 2nd ex.s. c 3 s 63
;
1982 1st ex.s. c 35 s 27
;
1981 c 172 s 7
;
1981 c 7 s 1
.]
NOTES:
Application
—
2022 c 295:
See note following RCW 82.04.4451
.
Findings
—
Intent
—
2019 c 63:
"The legislature finds that the filing of an annual excise tax return by January 31st can be a hardship for those many taxpayers, including self-employed taxpayers, who must wait to receive a 1099 form. Therefore, some state taxpayers do not receive the information they need to accurately file their taxes until on or shortly after the current state filing deadline. The legislature finds that it is an unnecessary burden on taxpayers, and an inefficient use of state time and resources, to require them to file their return under the current timeline using the best information available to them and then subsequently amend their return at a later date. The legislature intends to address this by extending the deadline for taxpayers who qualify to be annual filers." [
2019 c 63 s 1
.]
Effective date
—
2019 c 8 ss 105, 301, 302, 401, and 704:
See note following RCW 82.08.010
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.32.655
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective dates
—
2006 c 256:
"(1) Sections 1 through 4 of this act take effect August 1, 2006.
(2) Sections 6 and 7 of this act take effect July 1, 2006." [
2006 c 256 s 9
.]
Application
—
2006 c 256:
"(1) Sections 1 through 3 of this act apply to returns due after July 31, 2006.
(2) Section 4 of this act applies to payments due after July 31, 2006.
(3) Section 6 of this act only applies to assessments originally issued after June 30, 2006." [
2006 c 256 s 7
.]
Savings
—
2006 c 256:
"This act does not affect any existing right acquired or liability or obligation incurred under the sections amended in this act or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections." [
2006 c 256 s 8
.]
Effective dates
—
2003 1st sp.s. c 13:
"(1) Sections 8 through 10 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect August 1, 2003.
(2) Sections 11 through 16 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, 2003.
(3) Sections 1 through 7 of this act take effect January 1, 2004." [
2003 1st sp.s. c 13 s 17
.]
Intent
—
1999 c 357:
"It is the intent of the legislature to allow the department of revenue to increase its ability to provide timely and cost-effective service to taxpayers." [
1999 c 357 s 2
.]
Effective date
—
1999 c 357:
"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, 1999." [
1999 c 357 s 4
.]
Findings
—
Purpose
—
Effective date
—
1996 c 111:
See notes following RCW 82.32.030
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1981 c 7:
"This act shall take effect October 1, 1981." [
1981 c 172 s 9
;
1981 c 7 s 5
.]
RCW 82.32.050
Deficient tax or penalty payments
—
Notice
—
Interest
—
Limitations
—
Time extension or correction of an assessment during state of emergency.
(1) If upon examination of any returns or from other information obtained by the department it appears that a tax or penalty has been paid less than that properly due, the department shall assess against the taxpayer such additional amount found to be due and shall add thereto interest on the tax only. The department shall notify the taxpayer by mail, or electronically as provided in RCW 82.32.135, of the additional amount and the additional amount shall become due and shall be paid within 30 days from the date of the notice, or within such further time as the department may provide.
(a) For tax liabilities arising before January 1, 1992, interest shall be computed at the rate of nine percent per annum from the last day of the year in which the deficiency is incurred until the earlier of December 31, 1998, or the date of payment. After December 31, 1998, the rate of interest shall be variable and computed as provided in subsection (2) of this section. The rate so computed shall be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(b) For tax liabilities arising after December 31, 1991, the rate of interest shall be variable and computed as provided in subsection (2) of this section from the last day of the year in which the deficiency is incurred until the date of payment. The rate so computed shall be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(c)(i) Except as otherwise provided in this subsection (1)(c), interest imposed after December 31, 1998, shall be computed from the last day of the month following each calendar year included in a notice, and the last day of the month following the final month included in a notice if not the end of a calendar year, until the due date of the notice.
(ii) For interest associated with annual tax reporting periods having a due date as prescribed in RCW 82.32.045
(3) and
82.87.110, interest must be computed from the last day of April immediately following each such annual reporting period included in the notice, until the due date of the notice.
(iii) For purposes of computing interest under (c)(i) and (ii) of this subsection (1):
(A) The same computation of interest applies regardless of whether the department grants additional time for filing any return under RCW 82.32.080
(4)(a)(i).
(B) If the department extends a due date under subsection (3) of this section or RCW 82.32.080
(4)(b), and payment is not made in full by the extended due date, interest is computed from the last day of the month in which the extended due date occurs until the date of payment.
(iv) If payment in full is not made by the due date of the notice, additional interest shall be computed under this subsection (1)(c) until the date of payment. The rate of interest shall be variable and computed as provided in subsection (2) of this section. The rate so computed shall be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(2) For the purposes of this section, the rate of interest to be charged to the taxpayer shall be an average of the federal short-term rate as defined in 26 U.S.C. Sec. 1274(d) plus two percentage points. The rate set for each new year shall be computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually. That average shall be calculated using the rates from four months: January, April, and July of the calendar year immediately preceding the new year, and October of the previous preceding year.
(3) During a state of emergency declared under RCW 43.06.010
(12), the department, on its own motion or at the request of any taxpayer affected by the emergency, may extend the due date of any assessment or correction of an assessment for additional taxes, penalties, or interest as the department deems proper.
(4) No assessment or correction of an assessment for additional taxes, penalties, or interest due may be made by the department more than four years after the close of the tax year, except (a) against a taxpayer who has not registered as required by this chapter, (b) upon a showing of fraud or of misrepresentation of a material fact by the taxpayer, or (c) where a taxpayer has executed a written waiver of such limitation. The execution of a written waiver shall also extend the period for making a refund or credit as provided in RCW 82.32.060
(2).
(5) For the purposes of this section, the following definitions apply:
(a) "Due date of the notice" means the date indicated in the notice by which the amount due in the notice must be paid, or such later date as provided by RCW 1.12.070
(3).
(b) "Return" means any document a person is required by the state of Washington to file to satisfy or establish a tax or fee obligation that is administered or collected by the department and that has a statutorily defined due date. "Return" also means an application for refund under RCW 82.08.0206
.
[
2025 c 409 s 12
. Prior:
2022 c 282 s 2
;
2022 c 41 s 2
;
2020 c 139 s 60
;
2008 c 181 s 501
;
2007 c 111 s 106
;
2003 c 73 s 1
;
1997 c 157 s 1
;
1996 c 149 s 2
;
1992 c 169 s 1
;
1991 c 142 s 9
;
1989 c 378 s 19
;
1971 ex.s. c 299 s 16
;
1965 ex.s. c 141 s 1
;
1961 c 15 s 82.32.050
; prior:
1951 1st ex.s. c 9 s 5
;
1949 c 228 s 20
;
1945 c 249 s 9
;
1939 c 225 s 27
;
1937 c 227 s 17
;
1935 c 180 s 188
; Rem. Supp. 1949 s 8370-188.]
NOTES:
Application
—
Effective date
—
2022 c 282:
See notes following RCW 82.32.057
.
Retroactive application
—
2020 c 139 ss 60 and 61:
"Sections 60 and 61 of this act apply both prospectively and retroactively to January 1, 2020." [
2020 c 139 s 62
.]
Effective date
—
2020 c 139 ss 60-62:
"Sections 60 through 62 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [March 25, 2020]." [
2020 c 139 s 63
.]
Part headings not law
—
2008 c 181:
See note following RCW 43.06.220
.
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Findings
—
Intent
—
1996 c 149:
"The legislature finds that a consistent application of interest and penalties is in the best interest of the residents of the state of Washington. The legislature also finds that the goal of the department of revenue's interest and penalty system should be to encourage taxpayers to voluntarily comply with Washington's tax code in a timely manner. The administration of tax programs requires that there be consequences for those taxpayers who do not timely satisfy their reporting and tax obligations, but these consequences should not be so severe as to discourage taxpayers from voluntarily satisfying their tax obligations.
It is the intent of the legislature that, to the extent possible, a single interest and penalty system apply to all tax programs administered by the department of revenue." [
1996 c 149 s 1
.]
Effective date
—
1996 c 149:
"This act shall take effect January 1, 1997." [
1996 c 149 s 20
.]
Effective date
—
Applicability
—
1992 c 169:
"(1) This act shall take effect July 1, 1992.
(2) This act is effective for all written waivers that remain enforceable as of July 1, 1992." [
1992 c 169 s 4
.]
Effective date
—
1991 c 142 ss 9-11:
"Sections 9 through 11 of this act shall take effect January 1, 1992." [
1991 c 142 s 13
.]
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
RCW 82.32.052
Interest and penalties
—
Waiver for amounts unpaid as of February 1, 2011.
(1) Except as otherwise provided in subsections (4) and (5) of this section, the department must waive all penalties and interest otherwise due under this chapter and that are unpaid as of February 1, 2011, if all of the following circumstances are met:
(a) The penalties and interest are imposed with respect to: (i) State business and occupation tax, state public utility tax, state or local sales tax, or state or local use tax; and (ii) tax liability that first became due to the department before February 1, 2011, which includes taxes billed to the taxpayer, or disclosed by the taxpayer to the department, on or after February 1, 2011, but that were required by this chapter to have been reported and paid by the taxpayer before February 1, 2011;
(b) The taxpayer must file with the department no later than April 18, 2011: (i) All outstanding tax returns for the taxes specified in (a)(i) of this subsection (1); and (ii) any amended returns covering tax liabilities with respect to which a penalty and interest waiver under this section is requested;
(c) Before May 1, 2011, the taxpayer must remit full payment to the department of the balance due on all tax liabilities for which a penalty and interest waiver under this section is requested. If a waiver is requested for penalties or interest associated with an invoice that has been billed to the taxpayer, the taxpayer must remit full payment to the department of the entire balance due on that invoice other than any penalty and interest eligible for waiver under this section, even if the invoice includes taxes not specified in (a)(i) of this subsection (1). If the invoice is a tax warrant, the taxpayer must also remit full payment to the department of any filing or other fees added to the tax warrant, including the filing fees provided in RCW 36.18.012
(2) and (10), the fee imposed in RCW 36.18.016
(4), and the surcharge imposed in RCW 40.14.027
;
(d) The taxpayer must file and pay in full by the due date all tax returns that become due after January 31, 2011, and before May 1, 2011, for all taxes administered by the department under this chapter;
(e) No later than April 18, 2011, the department must receive a completed application for penalty and interest waiver under this section in a form and manner prescribed by the department;
(f) The taxpayer must never have had an evasion penalty assessed against the taxpayer by the department under RCW 82.32.090
or a penalty assessed against the taxpayer by the department under RCW 82.32.291
for misusing a reseller permit or resale certificate; and
(g) The taxpayer must never have been a defendant in a criminal prosecution related to an offense involving the failure to collect or pay the proper amount of any tax administered by the department under this chapter.
(2) Taxpayers receiving penalty or interest relief under this section may not seek a refund, or otherwise challenge the amount, of any tax liability paid as required by subsection (1)(c) of this section. This subsection (2) applies to refund requests or appeals filed directly with the department and to proceedings brought in any court or administrative tribunal.
(3) All tax liability reported and paid as required in subsection (1)(b), (c), and (d) of this section is subject to verification by the department as provided in RCW 82.32.050
. This section does not preclude the assessment of taxes, penalties, and interest with respect to any amounts determined by the department to have been underpaid for any tax period for which the taxpayer previously received penalty or interest relief under this section.
(4) This section does not authorize the department to waive the evasion penalty currently authorized by RCW 82.32.090
(7) or the penalty currently authorized by RCW 82.32.291
for misusing a reseller permit or resale certificate.
(5) If taxpayers are current for tax returns due as of November 25, 2010, tax liability that accrues after that date would not qualify under this section.
(6) Nothing in this section may be construed as requiring a taxpayer to have first paid any penalty or interest for which a waiver is sought under this section.
(7) Solely for purposes of determining whether a taxpayer qualifies for a waiver of penalties or interest under this section with respect to a balance owing as of February 1, 2011, on any invoice issued by the department, any payments made to the department on that taxpayer's account before May 1, 2011, are deemed to have been applied first to any of the taxes specified in subsection (1)(a)(i) of this section, then to any other taxes, and then to penalties or interest, if such payments were applied either:
(a) To that invoice; or
(b) Against any liability reflected in that invoice before that invoice was issued by the department.
(8) A taxpayer in a bankruptcy proceeding is ineligible for relief under this section to the extent that the payment of any tax debt by the taxpayer to the department as required under this section violates the federal bankruptcy code.
[
2010 2nd sp.s. c 2 s 1
.]
NOTES:
Effective date
—
2010 2nd sp.s. c 2:
"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 February 1, 2011." [
2010 2nd sp.s. c 2 s 3
.]
RCW 82.32.055
Interest and penalties
—
Waiver for military personnel.
(1) Subject to the requirements in subsections (2) through (4) of this section, the department shall waive or cancel interest and penalties imposed under this chapter if the interest and penalties are:
(a) Imposed during any period of armed conflict; and
(b) Imposed on a taxpayer where a majority owner of the taxpayer is an individual who is on active duty in the military, and the individual is participating in a conflict and assigned to a duty station outside the territorial boundaries of the United States.
(2) To receive a waiver or cancellation of interest and penalties under this section, the taxpayer must submit to the department a copy of the individual's deployment orders for deployment outside the territorial boundaries of the United States.
(3) The department may not waive or cancel interest and penalties under this section if the gross income of the business exceeded one million dollars in the calendar year prior to the individual's initial deployment outside the United States for the armed conflict. The department may not waive or cancel interest and penalties under this section for a taxpayer for more than twenty-four months.
(4) During any period of armed conflict, for any notice sent to a taxpayer that requires a payment of interest, penalties, or both, the notice must clearly indicate on or in the notice that interest and penalties may be waived under this section for qualifying taxpayers.
[
2008 c 184 s 1
.]
RCW 82.32.057
Application of interest to delinquent taxes
—
Extensions.
Except as otherwise provided in this chapter, interest applies to taxes that are not paid by the original due date even though the department has granted an extension as authorized under this chapter. However, the department may not assess penalties for late payment of any such tax that is paid in full by the extended due date.
[
2022 c 282 s 1
.]
NOTES:
Application
—
2022 c 282:
"With regard to the imposition of interest, sections 1 and 2 of this act apply to taxes due under an extension granted by the department of revenue on or after January 1, 2023, except in cases where the department of revenue received the request for the extension before January 1, 2023." [
2022 c 282 s 3
.]
Effective date
—
2022 c 282:
"Except for section 4 of this act, this act takes effect January 1, 2023." [
2022 c 282 s 5
.]
RCW 82.32.060
Excess payment of tax, penalty, or interest
—
Credit or refund
—
Payment of judgments for refund.
(1) If, upon receipt of an application by a taxpayer for a refund or for an audit of the taxpayer's records, or upon an examination of the returns or records of any taxpayer, it is determined by the department that within the statutory period for assessment of taxes, penalties, or interest prescribed by RCW 82.32.050
any amount of tax, penalty, or interest has been paid in excess of that properly due, the excess amount paid within, or attributable to, such period must be credited to the taxpayer's account or must be refunded to the taxpayer, at the taxpayer's option. Except as provided in subsection (2) of this section, no refund or credit may be made for taxes, penalties, or interest paid more than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.
(2)(a) The execution of a written waiver under RCW 82.32.050
or
82.32.100
will extend the time for making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the department discovers a refund or credit is due.
(b) A refund or credit must be allowed for an excess payment resulting from the failure to claim a bad debt deduction, credit, or refund under RCW 82.04.4284, 82.08.037, 82.12.037, 82.14B.150, or
82.16.050
(5) for debts that became bad debts under 26 U.S.C. Sec. 166, as amended or renumbered as of January 1, 2003, less than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.
(3) Any such refunds must be made by means of vouchers approved by the department and by the issuance of state warrants drawn upon and payable from such funds as the legislature may provide. However, taxpayers who are required to pay taxes by electronic funds transfer under RCW 82.32.080
must have any refunds paid by electronic funds transfer if the department has the necessary account information to facilitate a refund by electronic funds transfer.
(4) Any judgment for which a recovery is granted by any court of competent jurisdiction, not appealed from, for tax, penalties, and interest which were paid by the taxpayer, and costs, in a suit by any taxpayer must be paid in the same manner, as provided in subsection (3) of this section, upon the filing with the department of a certified copy of the order or judgment of the court.
(a) Interest at the rate of three percent per annum must be allowed by the department and by any court on the amount of any refund, credit, or other recovery allowed to a taxpayer for taxes, penalties, or interest paid by the taxpayer before January 1, 1992. This rate of interest applies for all interest allowed through December 31, 1998. Interest allowed after December 31, 1998, must be computed at the rate as computed under RCW 82.32.050
(2). The rate so computed must be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(b) For refunds or credits of amounts paid or other recovery allowed to a taxpayer after December 31, 1991, the rate of interest must be the rate as computed for assessments under RCW 82.32.050
(2) less one percent. This rate of interest applies for all interest allowed through December 31, 1998. Interest allowed after December 31, 1998, must be computed at the rate as computed under RCW 82.32.050
(2). The rate so computed must be adjusted on the first day of January of each year for use in computing interest for that calendar year.
(5) Interest allowed on a credit notice or refund issued after December 31, 2003, must be computed as follows:
(a) If all overpayments for each calendar year and all reporting periods ending with the final month included in a notice or refund were made on or before the due date of the final return for each calendar year or the final reporting period included in the notice or refund:
(i) Interest must be computed from January 31st following each calendar year included in a notice or refund;
(ii) Interest must be computed from the last day of the month following the final month included in a notice or refund; or
(iii) For interest associated with annual tax reporting periods having a due date as prescribed in RCW 82.32.045
(3) and
82.87.110, interest must be computed from the last day of April following each such annual reporting period included in a notice or refund.
(b) If the taxpayer has not made all overpayments for each calendar year and all reporting periods ending with the final month included in a notice or refund on or before the dates specified by RCW 82.32.045
for the final return for each calendar year or the final month included in the notice or refund, interest must be computed from the last day of the month following the date on which payment in full of the liabilities was made for each calendar year included in a notice or refund, and the last day of the month following the date on which payment in full of the liabilities was made if the final month included in a notice or refund is not the end of a calendar year.
(c) Interest included in a credit notice must accrue up to the date the taxpayer could reasonably be expected to use the credit notice, as defined by the department's rules. If a credit notice is converted to a refund, interest must be recomputed to the date the refund is issued, but not to exceed the amount of interest that would have been allowed with the credit notice.
[
2025 c 409 s 13
;
2020 c 139 s 61
;
2009 c 176 s 4
;
2004 c 153 s 306
;
2003 c 73 s 2
;
1999 c 358 s 13
;
1997 c 157 s 2
;
1992 c 169 s 2
;
1991 c 142 s 10
;
1990 c 69 s 1
;
1989 c 378 s 20
;
1979 ex.s. c 95 s 4
;
1971 ex.s. c 299 s 17
;
1965 ex.s. c 173 s 27
;
1963 c 22 s 1
;
1961 c 15 s 82.32.060
. Prior:
1951 1st ex.s. c 9 s 6
;
1949 c 228 s 21
;
1935 c 180 s 189
; Rem. Supp. 1949 s 8370-189.]
NOTES:
Retroactive application
—
Effective date
—
2020 c 139 ss 60-62:
See notes following RCW 82.32.050
.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective date
—
2003 c 73 s 2:
"Section 2 of this act takes effect January 1, 2004." [
2003 c 73 s 3
.]
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
Effective date
—
Applicability
—
1992 c 169:
See note following RCW 82.32.050
.
Effective date
—
1991 c 142 ss 9-11:
See note following RCW 82.32.050
.
Effective date
—
1990 c 69:
"This act shall take effect January 1, 1991." [
1990 c 69 s 5
.]
Severability
—
1990 c 69:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1990 c 69 s 4
.]
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
RCW 82.32.062
Additional offset for excess payment of sales tax.
(1) In addition to the procedure set forth in RCW 82.32.060
and as an exception to the four-year period explicitly set forth in RCW 82.32.060, an offset for a tax that has been paid in excess of that properly due may be taken under the following conditions:
(a) The tax paid in excess of that properly due was sales or use tax paid on property purchased for the purpose of leasing;
(b) The taxpayer was at the time of purchase entitled to purchase the property at wholesale under RCW 82.04.060
; and
(c) The taxpayer substantiates that the taxpayer paid sales or use tax on the purchase of the property and that there was no intervening use of the property by the taxpayer.
(2) The offset under this section is applied to and reduced by the amount of retail sales tax otherwise due from the beginning of lease of the property until the offset is extinguished.
[
2020 c 139 s 38
;
2002 c 57 s 1
.]
RCW 82.32.065
Tax refund to consumer under new motor vehicle warranty laws
—
Credit or refund to new motor vehicle manufacturer.
If a manufacturer makes a refund of sales tax to a consumer upon return of a new motor vehicle under chapter
19.118
RCW, the department shall credit or refund to the manufacturer the amount of the tax refunded, upon receipt of documentation as required by the department.
[
1987 c 344 s 16
.]
NOTES:
Effective dates
—
1987 c 344:
See RCW 19.118.900
.
RCW 82.32.070
Records to be preserved
—
Examination
—
Estoppel to question assessment
—
Unified business identifier account number records.
(1) Every taxpayer liable for any tax collected by the department must keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of any tax for which the taxpayer may be liable. Such records must include copies of all of the taxpayer's federal income tax and state tax returns and reports. All of the taxpayer's books, records, and invoices must be open for examination at any time by the department of revenue. In the case of an out-of-state taxpayer that does not keep the necessary books and records within this state, it is sufficient if the taxpayer produces within the state such books and records as are required by the department of revenue, or permits the examination by an agent authorized or designated by the department of revenue at the place where such books and records are kept. Any taxpayer who fails to comply with the requirements of this section is forever barred from questioning, in any court action or proceedings, the correctness of any assessment of taxes made by the department of revenue based upon any period for which such books, records, and invoices have not been so kept and preserved.
(2) A person liable for any fee or tax imposed by chapters
82.04
through
82.27
RCW who contracts with another person or entity for work subject to chapter
18.27
or
19.28
RCW must obtain and preserve a record of the unified business identifier account number for the person or entity performing the work. Failure to obtain or maintain the record is subject to RCW 39.06.010
and to a penalty determined by the director, but not to exceed two hundred fifty dollars. The department must notify the taxpayer and collect the penalty in the same manner as penalties under RCW 82.32.100
.
[
2015 c 86 s 310
;
2013 c 23 s 322
;
1999 c 358 s 14
;
1997 c 54 s 4
;
1983 c 3 s 221
;
1967 ex.s. c 89 s 2
;
1961 c 15 s 82.32.070
. Prior:
1951 1st ex.s. c 9 s 7
;
1935 c 180 s 190
; RRS s 8370-190.]
NOTES:
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
RCW 82.32.080
Payment by check
—
Electronic funds transfer
—
Rules
—
Mailing returns or remittances
—
Time extension
—
Deposits
—
Time extension during state of emergency
—
Records
—
Payment must accompany return.
(1) When authorized by the department, payment of the tax may be made by uncertified check under such rules as the department prescribes, but, if a check so received is not paid by the bank on which it is drawn, the taxpayer, by whom such check is tendered, will remain liable for payment of the tax and for all legal penalties and interest, the same as if such check had not been tendered.
(2)(a) Except as otherwise provided in this subsection, payment of the tax must be made by electronic funds transfer, as defined in RCW 82.32.085
. As an alternative to electronic funds transfer, the department may authorize other forms of electronic payment, such as payment by credit card. All taxes administered by this chapter are subject to this requirement, except that the department may exclude any taxes not reported on the combined excise tax return or any successor return from the electronic payment requirement in this subsection.
(b) The department may waive the electronic payment requirement in this subsection for any taxpayer or class of taxpayers, for good cause or for whom the department has assigned a reporting frequency that is less than quarterly. In the discretion of the department, a waiver under this subsection may be made temporary or permanent, and may be made on the department's own motion.
(c) The department is authorized to accept payment of taxes by electronic funds transfer or other acceptable forms of electronic payment from taxpayers that are not subject to the mandatory electronic payment requirements in this subsection.
(3)(a) Except as otherwise provided in this subsection, returns must be filed electronically using the department's online tax filing service or other method of electronic reporting as the department may authorize.
(b) The department may waive the electronic filing requirement in this subsection for any taxpayer or class of taxpayers, for good cause or for whom the department has assigned a reporting frequency that is less than quarterly. In the discretion of the department, a waiver under this subsection may be made temporary or permanent, and may be made on the department's own motion.
(c) The department is authorized to allow electronic filing of returns from taxpayers that are not subject to the mandatory electronic filing requirements in this subsection.
(4)(a)(i) The department, for good cause shown, may extend the time for making and filing any return, and may grant such reasonable additional time within which to make and file returns as it may deem proper, but any permanent extension granting the taxpayer a reporting date without penalty more than ten days beyond the due date, and any extension in excess of thirty days must be conditional on deposit with the department of an amount to be determined by the department which is approximately equal to the estimated tax liability for the reporting period or periods for which the extension is granted. In the case of a permanent extension or a temporary extension of more than thirty days the deposit must be deposited within the state treasury with other tax funds and a credit recorded to the taxpayer's account which may be applied to taxpayer's liability upon cancellation of the permanent extension or upon reporting of the tax liability where an extension of more than thirty days has been granted.
(ii) The department must review the requirement for deposit at least annually and may require a change in the amount of the deposit required when it believes that such amount does not approximate the tax liability for the reporting period or periods for which the extension is granted.
(b) During a state of emergency declared under RCW 43.06.010
(12), the department, on its own motion or at the request of any taxpayer affected by the emergency, may extend the time for making or filing any return as the department deems proper. The department may not require any deposit as a condition for granting an extension under this subsection (4)(b).
(5)(a) The department must keep full and accurate records of all funds received and disbursed by it. Subject to the provisions of RCW 82.32.105, 82.32.052, and
82.32.350, the department must apply the payment of the taxpayer in the following order, without regard to any direction of the taxpayer: (i) Interest; (ii) penalties; (iii) fees that are not within the definition of tax in RCW 82.32.020
; (iv) other nontax amounts; (v) taxes, except spirits taxes; and (vi) spirits taxes.
(b) For purposes of this subsection, "spirits taxes" has the same meaning as in RCW 82.08.155
.
(6) The department may refuse to accept any return that is not accompanied by a remittance of the tax shown to be due thereon or that is not filed electronically as required in this section. When such return is not accepted, the taxpayer is deemed to have failed or refused to file a return and is subject to the procedures provided in RCW 82.32.100
and to the penalties provided in RCW 82.32.090
. The above authority to refuse to accept a return may not apply when a return is timely filed electronically and a timely payment has been made by electronic funds transfer or other form of electronic payment as authorized by the department.
(7) Except for returns and remittances required to be transmitted to the department electronically under this section and except as otherwise provided in this chapter, a return or remittance that is transmitted to the department by United States mail is deemed filed or received on the date shown by the post office cancellation mark stamped upon the envelope containing it. A return or remittance that is transmitted to the department electronically is deemed filed or received according to procedures set forth by the department.
(8)(a) For purposes of subsections (2) and (3) of this section, "good cause" means the inability of a taxpayer to comply with the requirements of subsection (2) or (3) of this section because:
(i) The taxpayer does not have the equipment or software necessary to enable the taxpayer to comply with subsection (2) or (3) of this section;
(ii) The equipment or software necessary to enable the taxpayer to comply with subsection (2) or (3) of this section is not functioning properly;
(iii) The taxpayer does not have access to the internet using the taxpayer's own equipment;
(iv) The taxpayer does not have a bank account or a credit card;
(v) The taxpayer's bank is unable to send or receive electronic funds transfer transactions; or
(vi) Some other circumstance or condition exists that, in the department's judgment, prevents the taxpayer from complying with the requirements of subsection (2) or (3) of this section.
(b) "Good cause" also includes any circumstance that, in the department's judgment, supports the efficient or effective administration of the tax laws of this state, including providing relief from the requirements of subsection (2) or (3) of this section to any taxpayer that is voluntarily collecting and remitting this state's sales or use taxes on sales to Washington customers but has no legal requirement to be registered with the department.
[
2015 c 86 s 311
;
2012 c 39 s 2
. Prior:
2011 c 24 s 1
;
2010 2nd sp.s. c 2 s 2
; prior:
2010 c 111 s 304
;
2010 c 106 s 226
;
2009 c 176 s 2
;
2008 c 181 s 502
;
1999 c 357 s 3
;
1997 c 156 s 3
;
1990 c 69 s 2
;
1971 ex.s. c 299 s 18
;
1965 ex.s. c 141 s 2
;
1963 ex.s. c 28 s 6
;
1961 c 15 s 82.32.080
; prior:
1951 1st ex.s. c 9 s 8
;
1949 c 228 s 22
;
1935 c 180 s 191
; Rem. Supp. 1949 s 8370-191.]
NOTES:
Construction
—
Effective date
—
2012 c 39:
See notes following RCW 82.08.155
.
Application
—
2011 c 24:
"This act applies only to tax returns and payments originally due after July 22, 2011, including tax returns and payments for tax liabilities incurred before July 22, 2011, and originally due after July 22, 2011." [
2011 c 24 s 4
.]
Effective date
—
2010 2nd sp.s. c 2:
See note following RCW 82.32.052
.
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Part headings not law
—
2008 c 181:
See note following RCW 43.06.220
.
Intent
—
Effective date
—
1999 c 357:
See notes following RCW 82.32.045
.
Severability
—
Effective date
—
1990 c 69:
See notes following RCW 82.32.060
.
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
Findings
—
Payment of excise taxes by electronic funds transfer
—
2006 c 256: See note following RCW 82.32.045
.
Tax returns, remittances, etc., filing and receipt when transmitted by mail: RCW 1.12.070
.
RCW 82.32.085
Electronic funds transfer
—
Generally.
(1) "Electronic funds transfer" means any transfer of funds, other than a transaction originated or accomplished by conventional check, drafts, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit a checking or other deposit account. "Electronic funds transfer" includes payments made by electronic check (e-check).
(2)(a) An electronic funds transfer using the automated clearinghouse credit method must be completed so that the state receives collectible funds on or before the next banking day following the due date.
(b) A remittance made using the automated clearinghouse debit method or any other method of electronic payment authorized by the department will be deemed to be received on the due date if the electronic funds transfer or other electronic payment is initiated on or before 11:59 p.m. pacific time on the due date with an effective payment date on or before the next banking day following the due date.
(3) The department must adopt rules necessary to implement the provisions of RCW 82.32.080
and this section. The rules must include but are not limited to: (a) Coordinating the filing of tax returns with payment by electronic funds transfer or other form of electronic payment as authorized by the department; (b) form and content of electronic funds transfer; (c) voluntary use of electronic funds transfer with permission of the department for those taxpayers that are not subject to the mandatory electronic payment requirement in RCW 82.32.080
; (d) use of commonly accepted means of electronic funds transfer; (e) means of crediting and recording proof of payment; and (f) means of correcting errors in transmission.
[
2011 c 24 s 2
;
2009 c 176 s 3
;
2006 c 256 s 4
;
1990 c 69 s 3
.]
NOTES:
Application
—
2011 c 24:
See note following RCW 82.32.080
.
Findings
—
Payment of excise taxes by electronic funds transfer
—
2006 c 256:
"(1) The legislature recognizes the following with respect to the payment of excise taxes to the department of revenue by electronic funds transfer:
(a) Taxpayers required to pay their taxes by electronic funds transfer must do so through the use of either the automated clearinghouse debit method or automated clearinghouse credit method;
(b) For a remittance by electronic funds transfer to be considered timely, the transfer must be completed so that the state receives collectible funds on or before the next banking day following the due date;
(c) For the state to receive collectible funds on or before the next banking day following the due date, taxpayers using the automated clearinghouse debit method must initiate the transfer before 5:00 p.m. pacific time on the due date;
(d) The department of revenue receives information identifying the precise date and time the electronic funds transfer is initiated when a taxpayer uses the debit method; and
(e) The department receives information identifying only the date that the state receives collectible funds when a taxpayer uses the automated clearinghouse credit method.
(2) The legislature therefore finds that a remittance made using the automated clearinghouse debit method should be deemed to be received on the due date if the transfer is initiated on or before 11:59 p.m. pacific time on the due date with an effective payment date on or before the next banking day following the due date. The legislature further finds that because the department does not receive information about when an electronic funds transfer is initiated when a taxpayer uses the automated clearinghouse credit method, such transfers must be completed so that the state receives collectible funds on or before the next banking day following the due date." [
2006 c 256 s 5
.]
Effective dates
—
Application
—
Savings
—
2006 c 256:
See notes following RCW 82.32.045
.
Severability
—
Effective date
—
1990 c 69:
See notes following RCW 82.32.060
.
RCW 82.32.087
Direct pay permits.
(1) The director may grant a direct pay permit to a taxpayer who demonstrates, to the satisfaction of the director, that the taxpayer meets the requirements of this section. The direct pay permit allows the taxpayer to accrue and remit directly to the department use tax on the acquisition of tangible personal property or sales tax on the sale of or charges made for labor and/or services, in accordance with all of the applicable provisions of this title. Any taxpayer that uses a direct pay permit must remit state and local sales or use tax directly to the department. The agreement by the purchaser to remit tax directly to the department, rather than pay sales or use tax to the seller, relieves the seller of the obligation to collect sales or use tax and requires the buyer to pay use tax on the tangible personal property and sales tax on the sale of or charges made for labor and/or services.
(2)(a) A taxpayer may apply for a permit under this section if: (i) The taxpayer's cumulative tax liability is reasonably expected to be two hundred forty thousand dollars or more in the current calendar year; or (ii) the taxpayer makes purchases subject to the taxes imposed under chapter
82.08
or
82.12
RCW in excess of ten million dollars per calendar year. For the purposes of this section, "tax liability" means the amount required to be remitted to the department for taxes administered under this chapter, except for the taxes imposed or authorized by chapters
82.14A
, 82.14B, 82.24, 82.27, 82.29A, and
84.33
RCW.
(b) Application for a permit must be made in writing to the director in a form and manner prescribed by the department. A taxpayer who transacts business in two or more locations may submit one application to cover the multiple locations.
(c) The director must review a direct pay permit application in a timely manner and must notify the applicant, in writing, of the approval or denial of the application. The department must approve or deny an application based on the applicant's ability to comply with local government use tax coding capabilities and responsibilities; requirements for vendor notification; recordkeeping obligations; electronic data capabilities; and tax reporting procedures. Additionally, an application may be denied if the director determines that denial would be in the best interest of collecting taxes due under this title. The department must provide a direct pay permit to an approved applicant with the notice of approval. The direct pay permit must clearly state that the holder is solely responsible for the accrual and payment of the tax imposed under chapters
82.08
and
82.12
RCW and that the seller is relieved of liability to collect tax imposed under chapters
82.08
and
82.12
RCW on all sales to the direct pay permit holder. The taxpayer may petition the director for reconsideration of a denial.
(d) A taxpayer who uses a direct pay permit must continue to maintain records that are necessary to a determination of the tax liability in accordance with this title. A direct pay permit is not transferable and the use of a direct pay permit may not be assigned to a third party.
(3) Taxes for which the direct pay permit is used are due and payable on the tax return for the reporting period in which the taxpayer (a) receives the tangible personal property purchased or in which the labor and/or services are performed or (b) receives an invoice for such property or such labor and/or services, whichever period is earlier.
(4) The holder of a direct pay permit must furnish a copy of the direct pay permit to each vendor with whom the taxpayer has opted to use a direct pay permit. Sellers who make sales upon which the sales or use tax is not collected by reason of the provisions of this section, in addition to existing requirements under this title, must maintain a copy of the direct pay permit and any such records or information as the department may specify.
(5) A direct pay permit is subject to revocation by the director at any time the department determines that the taxpayer has violated any provision of this section or that revocation would be in the best interests of collecting the taxes due under this title. The notice of revocation must be in writing and is effective either as of the end of the taxpayer's next normal reporting period or a date deemed appropriate by the director and identified in the revocation notice. The taxpayer may petition the director for reconsideration of a revocation and reinstatement of the permit.
(6) Any taxpayer who chooses to no longer use a direct pay permit or whose permit is revoked by the department, must return the permit to the department and immediately make a good faith effort to notify all vendors to whom the permit was given, advising them that the permit is no longer valid.
(7) Except as provided in this subsection, the direct pay permit may be used for any purchase of tangible personal property and any retail sale under RCW 82.04.050
. The direct pay permit may not be used for:
(a) Purchases of meals or beverages;
(b) Purchases of motor vehicles, trailers, boats, airplanes, and other property subject to requirements for title transactions by the department of licensing;
(c) Purchases for which a reseller permit or other documentation authorized under RCW 82.04.470
may be used;
(d) Purchases that meet the definitions of *RCW 82.04.050
(2) (e) and (f), (3) (a) through (c), (e), (f), and (g), (5), and (15); or
(e) Other activities subject to tax under chapter
82.08
or
82.12
RCW that the department by rule designates, consistent with the purposes of this section, as activities for which a direct pay permit is not appropriate and may not be used.
[
2015 c 169 s 11
;
2010 c 112 s 10
. Prior:
2009 c 563 s 210
;
2009 c 176 s 5
;
2001 c 188 s 2
.]
NOTES:
*
Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (3)(g) to subsection (3)(m), effective October 1, 2025.
Effective date
—
2015 c 169:
See note following RCW 82.04.050
.
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
.
Finding
—
Intent
—
2001 c 188:
"The legislature finds that programs to allow buyers to remit sales and use tax, rather than traditional collection and remittance by the seller of sales and use tax, can assist in tax compliance, ease administrative burdens, and reduce impacts on buyers and sellers. It is the intent of the legislature to grant the department of revenue the authority to permit certain buyers direct payment authority of tax in those instances where it can be shown, to the satisfaction of the department, that direct payment does not burden sellers and does not complicate administration for the department. Buyers authorized for direct payment will remit tax directly to the department, and will pay use tax on tangible personal property and sales tax on retail labor and/or services.
This act does not affect the requirements to use a resale certificate nor does it affect the business and occupation tax treatment of the seller." [
2001 c 188 s 1
.]
Effective date
—
2001 c 188:
"This act takes effect August 1, 2001." [
2001 c 188 s 7
.]
RCW 82.32.090
Late payment
—
Disregard of written instructions
—
Evasion
—
Substantial underpayment
—
Penalties.
(1) If payment of any tax due on a return to be filed by a taxpayer is not received by the department of revenue by the due date, there is assessed a penalty of nine percent of the amount of the tax; and if the tax is not received on or before the last day of the month following the due date, there is assessed a total penalty of 19 percent of the amount of the tax under this subsection; and if the tax is not received on or before the last day of the second month following the due date, there is assessed a total penalty of 29 percent of the amount of the tax under this subsection. No penalty so added may be less than $5.
(2) If the department of revenue determines that any tax has been substantially underpaid, there is assessed a penalty of five percent of the amount of the tax determined by the department to be due. If payment of any tax determined by the department to be due is not received by the department by the due date specified in the notice, or any extension thereof, there is assessed a total penalty of 15 percent of the amount of the tax under this subsection; and if payment of any tax determined by the department to be due is not received on or before the 30th day following the due date specified in the notice of tax due, or any extension thereof, there is assessed a total penalty of 25 percent of the amount of the tax under this subsection. No penalty so added may be less than $5. As used in this section, "substantially underpaid" means that the taxpayer has paid less than 80 percent of the amount of tax determined by the department to be due for all of the types of taxes included in, and for the entire period of time covered by, the department's examination, and the amount of underpayment is at least $1,000.
(3) If a warrant is issued by the department of revenue for the collection of taxes, increases, and penalties, there is added thereto a penalty of 10 percent of the amount of the tax, but not less than $10.
(4) If the department finds that a person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the department a registration certificate as required by RCW 82.32.030, the department must impose a penalty of five percent of the amount of tax due from that person for the period that the person was not registered as required by RCW 82.32.030
. The department may not impose the penalty under this subsection (4) if a person who has engaged in business taxable under this title without first having registered as required by RCW 82.32.030, prior to any notification by the department of the need to register, obtains a registration certificate from the department.
(5) If the department finds that a taxpayer has disregarded specific written instructions as to reporting or tax liabilities, or willfully disregarded the requirement to file returns or remit payment electronically, as provided by RCW 82.32.080, the department must add a penalty of 10 percent of the amount of the tax that should have been reported and/or paid electronically or the additional tax found due if there is a deficiency because of the failure to follow the instructions. A taxpayer disregards specific written instructions when the department has informed the taxpayer in writing of the taxpayer's tax obligations and the taxpayer fails to act in accordance with those instructions unless, in the case of a deficiency, the department has not issued final instructions because the matter is under appeal pursuant to this chapter or departmental regulations. The department may not assess the penalty under this section upon any taxpayer who has made a good faith effort to comply with the specific written instructions provided by the department to that taxpayer. A taxpayer will be considered to have made a good faith effort to comply with specific written instructions to file returns and/or remit taxes electronically only if the taxpayer can show good cause, as defined in RCW 82.32.080, for the failure to comply with such instructions. A taxpayer will be considered to have willfully disregarded the requirement to file returns or remit payment electronically if the department has mailed or otherwise delivered the specific written instructions to the taxpayer on at least two occasions. Specific written instructions may be given as a part of a tax assessment, audit, determination, closing agreement, or other written communication, provided that such specific written instructions apply only to the taxpayer addressed or referenced on such communication. Any specific written instructions by the department must be clearly identified as such and must inform the taxpayer that failure to follow the instructions may subject the taxpayer to the penalties imposed by this subsection. If the department determines that it is necessary to provide specific written instructions to a taxpayer that does not comply with the requirement to file returns or remit payment electronically as provided in RCW 82.32.080, the specific written instructions must provide the taxpayer with a minimum of 45 days to come into compliance with its electronic filing and/or payment obligations before the department may impose the penalty authorized in this subsection.
(6) If the department finds that all or any part of a deficiency resulted from engaging in a disregarded transaction, as described in RCW 82.32.655
(3), the department must assess a penalty of 35 percent of the additional tax found to be due as a result of engaging in a transaction disregarded by the department under RCW 82.32.655
(2). The penalty provided in this subsection may be assessed together with any other applicable penalties provided in this section on the same tax found to be due, except for the evasion penalty provided in subsection (7) of this section. The department may not assess the penalty under this subsection if, before the department discovers the taxpayer's use of a transaction described under RCW 82.32.655
(3), the taxpayer discloses its participation in the transaction to the department.
(7) If the department finds that all or any part of the deficiency resulted from an intent to evade the tax payable hereunder, a further penalty of 50 percent of the additional tax found to be due must be added.
(8) The penalties imposed under subsections (1) through (4) of this section can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law.
(9) The department may not impose the evasion penalty in combination with the penalty for disregarding specific written instructions or the penalty provided in subsection (6) of this section on the same tax found to be due.
(10) If a taxpayer substantially underpays an estimated payment of tax imposed under RCW 82.87.040
pursuant to RCW 82.87.110
(3), there is assessed a penalty of five percent of the amount of the actual tax due for tax imposed under RCW 82.87.040
. As used in this section, "substantially underpaid" means that an individual's estimated payment for taxes imposed under RCW 82.87.040
was less than 80 percent of the actual tax due, and at least $1,000.
(11) For the purposes of this section, "return" means any document a person is required by the state of Washington to file to satisfy or establish a tax or fee obligation that is administered or collected by the department, and that has a statutorily defined due date. "Return" also includes the submission of any estimated payment of tax as provided in RCW 82.87.110
(3) and the confirmation of an extension of the filing due date required under RCW 82.87.110
(5).
[
2025 c 409 s 14
;
2015 3rd sp.s. c 5 s 401
;
2011 c 24 s 3
;
2010 1st sp.s. c 23 s 203
;
2006 c 256 s 6
;
2003 1st sp.s. c 13 s 13
;
2000 c 229 s 7
;
1999 c 277 s 11
;
1996 c 149 s 15
;
1992 c 206 s 3
;
1991 c 142 s 11
;
1987 c 502 s 9
;
1983 2nd ex.s. c 3 s 23
;
1983 c 7 s 32
;
1981 c 172 s 8
;
1981 c 7 s 2
;
1971 ex.s. c 179 s 1
;
1967 ex.s. c 149 s 26
;
1965 ex.s. c 141 s 3
;
1963 ex.s. c 28 s 7
;
1961 c 15 s 82.32.090
. Prior:
1959 c 197 s 12
;
1955 c 110 s 1
;
1951 1st ex.s. c 9 s 9
;
1949 c 228 s 23
;
1937 c 227 s 18
;
1935 c 180 s 192
; Rem. Supp. 1949 s 8370-192.]
NOTES:
Construction
—
2017 c 323:
See note following RCW 82.08.052
.
Effective dates
—
2015 3rd sp.s. c 5:
See note following RCW 82.08.052
.
Application
—
2011 c 24:
See note following RCW 82.32.080
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.32.655
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective dates
—
Application
—
Savings
—
2006 c 256:
See notes following RCW 82.32.045
.
Application
—
2003 1st sp.s. c 13 s 13:
"Except as otherwise provided in this section, section 13 of this act applies to all penalties imposed after June 30, 2003. The five percent penalty imposed in section 13(2) of this act applies to all assessments originally issued after June 30, 2003." [
2003 1st sp.s. c 13 s 14
.]
Effective dates
—
2003 1st sp.s. c 13:
See note following RCW 82.32.045
.
Effective date
—
2000 c 229:
See note following RCW 46.16A.030
.
Findings
—
Intent
—
Effective date
—
1996 c 149:
See notes following RCW 82.32.050
.
Effective date
—
1992 c 206:
See note following RCW 82.04.170
.
Effective date
—
1991 c 142 ss 9-11:
See note following RCW 82.32.050
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Construction
—
Severability
—
Effective dates
—
1983 c 7:
See notes following RCW 82.08.020
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1981 c 7:
See note following RCW 82.32.045
.
Construction
—
1971 ex.s. c 179:
"This 1971 amendatory act shall apply only to taxes becoming due and payable in June, 1971 and thereafter." [
1971 ex.s. c 179 s 2
.]
RCW 82.32.100
Failure to file returns or provide records
—
Assessment of tax by department
—
Penalties and interest.
(1) If any person fails or refuses to make any return or to make available for examination the records required by this chapter, the department shall proceed, in such manner as it may deem best, to obtain facts and information on which to base its estimate of the tax; and to this end the department may examine the records of any such person as provided in RCW 82.32.110
.
(2) As soon as the department procures such facts and information as it is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to make a return, it shall proceed to determine and assess against such person the tax and any applicable penalties or interest due, but such action shall not deprive such person from appealing the assessment as provided in this chapter. The department shall notify the taxpayer by mail, or electronically as provided in RCW 82.32.135, of the total amount of such tax, penalties, and interest, and the total amount shall become due and shall be paid within thirty days from the date of such notice.
(3) No assessment or correction of an assessment may be made by the department more than four years after the close of the tax year, except (a) against a taxpayer who has not registered as required by this chapter, (b) upon a showing of fraud or of misrepresentation of a material fact by the taxpayer, or (c) where a taxpayer has executed a written waiver of such limitation. The execution of a written waiver shall also extend the period for making a refund or credit as provided in RCW 82.32.060
(2).
[
2007 c 111 s 107
;
1992 c 169 s 3
;
1989 c 378 s 21
;
1971 ex.s. c 299 s 20
;
1965 ex.s. c 141 s 4
;
1961 c 15 s 82.32.100
. Prior:
1951 1st ex.s. c 9 s 10
;
1935 c 180 s 194
; RRS s 8370-194.]
NOTES:
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Effective date
—
Applicability
—
1992 c 169:
See note following RCW 82.32.050
.
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
RCW 82.32.105
Waiver or cancellation of penalties or interest
—
Rules.
(1) If the department finds that the payment by a taxpayer of a tax less than that properly due or the failure of a taxpayer to pay any tax by the due date was the result of circumstances beyond the control of the taxpayer, the department must waive or cancel any penalties imposed under this chapter with respect to such tax.
(2) The department must waive or cancel the penalty imposed under RCW 82.32.090
(1) when the circumstances under which the delinquency occurred do not qualify for waiver or cancellation under subsection (1) of this section if:
(a) The taxpayer requests the waiver for a tax return required to be filed under RCW 54.28.040, 82.32.045, 82.14B.061, 82.23B.020, 82.29A.050, or
84.33.086
; and
(b) The taxpayer has timely filed and remitted payment on all tax returns due for that tax program for a period of 24 months immediately preceding the period covered by the return for which the waiver is being requested.
(3) The department must waive or cancel interest imposed under this chapter if:
(a) The failure to timely pay the tax was the direct result of written instructions given the taxpayer by the department; or
(b) The extension of a due date for payment of an assessment of deficiency was not at the request of the taxpayer and was for the sole convenience of the department.
(4) The department must adopt rules for the waiver or cancellation of penalties and interest imposed by this chapter.
[
2023 c 374 s 13
;
2017 c 323 s 106
;
1998 c 304 s 13
;
1996 c 149 s 17
;
1975 1st ex.s. c 278 s 78
;
1965 ex.s. c 141 s 8
.]
NOTES:
Effective dates
—
2017 c 323 ss 101-109:
See note following RCW 54.28.125
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Findings
—
Effective dates
—
1998 c 304:
See notes following RCW 82.14B.020
.
Findings
—
Intent
—
Effective date
—
1996 c 149:
See notes following RCW 82.32.050
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.110
Examination of books or records
—
Subpoenas
—
Contempt of court.
The department of revenue or its duly authorized agent may examine any books, papers, records, or other data, or stock of merchandise bearing upon the amount of any tax payable or upon the correctness of any return, or for the purpose of making a return where none has been made, or in order to ascertain whether a return should be made; and may require the attendance of any person at a time and place fixed in a summons served by any sheriff in the same manner as a subpoena is served in a civil case, or served in like manner by an agent of the department of revenue.
The persons summoned may be required to testify and produce any books, papers, records, or data required by the department with respect to any tax, or the liability of any person therefor.
The director of the department of revenue, or any duly authorized agent thereof, shall have power to administer an oath to the person required to testify; and any person giving false testimony after the administration of such oath shall be guilty of perjury in the first degree.
If any person summoned as a witness before the department, or its authorized agent, fails or refuses to obey the summons, or refuses to testify or answer any material questions, or to produce any book, record, paper, or data when required to do so, the person is subject to proceedings for contempt, and the department shall thereupon institute contempt of court proceedings in the superior court of Thurston county or of the county in which such person resides.
[
1989 c 373 s 27
;
1975 1st ex.s. c 278 s 79
;
1961 c 15 s 82.32.110
. Prior:
1935 c 180 s 194
; RRS s 8370-194.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.117
Application for court approval of subpoena prior to issuance
—
No notice required.
(1) The department or its duly authorized agent may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed records or documents are located, or in Thurston county. The application must:
(a) State that an order is sought pursuant to this subsection;
(b) Adequately specify the records, documents, or testimony; and
(c) Declare under oath that an investigation is being conducted for a lawfully authorized purpose related to an investigation within the department's authority and that the subpoenaed documents or testimony are reasonably related to an investigation within the department's authority.
(2) Where the application under this subsection is made to the satisfaction of the court, the court must issue an order approving the subpoena. An order under this subsection constitutes authority of law for the agency to subpoena the records or testimony.
(3) The department or its duly authorized agent may seek approval and a court may issue an order under this subsection without prior notice to any person, including the person to whom the subpoena is directed and the person who is the subject of an investigation.
(4) This section does not preclude the use of other legally authorized means of obtaining records, nor preclude the assertion of any legally recognized privileges.
(5) The department may not disclose any return or tax information, as defined in RCW 82.32.330, obtained in response to a subpoena issued under this section, except as authorized in RCW 82.32.330
.
(6) A third party may not be held civilly liable for any harm resulting from that person's compliance with a subpoena issued under the authority of this section.
(7) The entire court file of any proceeding instituted under this section must be sealed and is not open to public inspection by any person except upon order of the court as authorized by law.
[
2011 c 174 s 401
;
2010 c 22 s 4
.]
NOTES:
Findings
—
Intent
—
2010 c 22:
See note following RCW 51.04.040
.
RCW 82.32.120
Oaths and acknowledgments.
All officers empowered by law to administer oaths, the director of the department of revenue, and such officers as he or she may designate shall have the power to administer an oath to any person or to take the acknowledgment of any person with respect to any return or report required by law or the rules and regulations of the department of revenue.
[
2013 c 23 s 323
;
1975 1st ex.s. c 278 s 80
;
1961 c 15 s 82.32.120
. Prior:
1935 c 180 s 195
; RRS s 8370-195.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.130
Notice and orders
—
Service.
Notwithstanding any other law, any notice or order required by this title to be mailed to any taxpayer may be provided electronically as provided in RCW 82.32.135, served in the manner prescribed by law for personal service of summons and complaint in the commencement of actions in the superior courts of the state. However if the notice or order is mailed, it shall be addressed to the address of the taxpayer as shown by the records of the department, or, if no such address is shown, to such address as the department is able to ascertain by reasonable effort. Failure of the taxpayer to receive such notice or order whether served, mailed, or provided electronically as provided in RCW 82.32.135
shall not release the taxpayer from any tax or any increases or penalties thereon.
[
2007 c 111 s 108
;
1979 ex.s. c 95 s 2
;
1975 1st ex.s. c 278 s 81
;
1967 c 237 s 20
;
1961 c 15 s 82.32.130
. Prior:
1935 c 180 s 196
; RRS s 8370-196.]
NOTES:
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.135
Notice, assessment, other information
—
Electronic delivery.
(1) Except as otherwise provided in this subsection, whenever the department is required to send any assessment, notice, or any other information to persons by regular mail, the department must instead provide the assessment, notice, or other information electronically. The department may implement the requirement in this subsection in phases. The department, for good cause, may waive the requirement in this subsection for any taxpayer. In the discretion of the department, a waiver under this subsection may be made temporary or permanent, and may be made on the department's own motion.
(2) If the assessment, notice, or other information is subject to the confidentiality provisions of RCW 82.32.330, the department must use methods reasonably designed to protect the information from unauthorized disclosure. The provisions of this subsection (2) may be waived by a taxpayer. The waiver must be in writing and may be provided to the department electronically. A person may provide a waiver with respect to a particular item of information or may give a blanket waiver with respect to any item of information or certain items of information to be provided electronically. A blanket waiver will continue until revoked in writing by the taxpayer. Such revocation may be provided to the department electronically in a manner provided or approved by the department.
(3) Any assessment, notice, or other information provided by the department electronically to a person is deemed to be received by the taxpayer on the date that the department electronically sends the information to the person or electronically notifies the person that the information is available to be accessed by the person.
(4) This section also applies to any information that is not expressly required by statute to be sent by regular mail, but is customarily sent by the department using regular mail, to persons entitled to receive the information.
(5)(a) For purposes of this section, "good cause" includes the inability of the department to comply with this section for any reason, including lacking information necessary to send information to a person electronically or to electronically notify a person that information is available to be accessed by the person.
(b) "Good cause" also includes the inability of a person to receive or otherwise obtain information from the department electronically because:
(i) The person does not have the equipment or software necessary to enable the person to receive or otherwise obtain information from the department electronically;
(ii) The equipment or software necessary to enable the person to receive or otherwise obtain information from the department electronically is not functioning properly;
(iii) The person does not have access to the internet using the person's own equipment; or
(iv) Some other circumstance or condition exists that, in the department's judgment, prevents the taxpayer from receiving or otherwise obtaining information from the department electronically.
[
2009 c 176 s 1
;
2007 c 111 s 113
.]
NOTES:
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
RCW 82.32.140
Taxpayer quitting business
—
Liability of successor.
(1) Whenever any taxpayer quits business, or sells out, exchanges, or otherwise disposes of more than fifty percent of the fair market value of either its tangible or intangible assets, any tax payable hereunder shall become immediately due and payable, and such taxpayer shall, within ten days thereafter, make a return and pay the tax due, unless an extension is granted under RCW 82.32.080
.
(2) Any person who becomes a successor shall withhold from the purchase price a sum sufficient to pay any tax due from the taxpayer until such time as the taxpayer shall produce a receipt from the department of revenue showing payment in full of any tax due or a certificate that no tax is due. If any tax is not paid by the taxpayer within ten days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of the full amount of tax. If the fair market value of the assets acquired by a successor is less than fifty thousand dollars, the successor's liability for payment of the unpaid tax is limited to the fair market value of the assets acquired from the taxpayer. The burden of establishing the fair market value of the assets acquired is on the successor.
(3) The payment of any tax by a successor shall, to the extent thereof, be deemed a payment upon the purchase price; and if such payment is greater in amount than the purchase price the amount of the difference shall become a debt due the successor from the taxpayer.
(4) No successor shall be liable for any tax due from the person from whom the successor has acquired a business or stock of goods if the successor gives written notice to the department of revenue of such acquisition and no assessment is issued by the department of revenue within six months of receipt of such notice against the former operator of the business and a copy thereof mailed to the successor or provided electronically to the successor in accordance with RCW 82.32.135
.
[
2008 c 181 s 503
;
2007 c 111 s 109
;
2003 1st sp.s. c 13 s 12
;
1985 c 414 s 7
;
1975 1st ex.s. c 278 s 82
;
1961 c 15 s 82.32.140
. Prior:
1957 c 88 s 1
;
1935 c 180 s 197
; RRS s 8370-197.]
NOTES:
Part headings not law
—
2008 c 181:
See note following RCW 43.06.220
.
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Effective dates
—
2003 1st sp.s. c 13:
See note following RCW 82.32.045
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.145
Limited liability business entity
—
Terminated, dissolved, abandoned, insolvent
—
Collection of unpaid trust fund taxes.
(Effective until January 1, 2026.)
(1) Whenever the department has issued a warrant under RCW 82.32.210
for the collection of unpaid trust fund taxes from a limited liability business entity and that business entity has been terminated, dissolved, or abandoned, or is insolvent, the department may pursue collection of the entity's unpaid trust fund taxes, including penalties and interest on those taxes, against any or all of the responsible individuals. For purposes of this subsection, "insolvent" means the condition that results when the sum of the entity's debts exceeds the fair market value of its assets. The department may presume that an entity is insolvent if the entity refuses to disclose to the department the nature of its assets and liabilities.
(2) Personal liability under this section may be imposed for state and local trust fund taxes.
(3)(a) For a responsible individual who is the current or a former chief executive or chief financial officer, liability under this section applies regardless of fault or whether the individual was or should have been aware of the unpaid trust fund tax liability of the limited liability business entity.
(b) For any other responsible individual, liability under this section applies only if he or she willfully fails to pay or to cause to be paid to the department the trust fund taxes due from the limited liability business entity.
(4)(a) Except as provided in this subsection (4)(a), a responsible individual who is the current or a former chief executive or chief financial officer is liable under this section only for trust fund tax liability accrued during the period that he or she was the chief executive or chief financial officer. However, if the responsible individual had the responsibility or duty to remit payment of the limited liability business entity's trust fund taxes to the department during any period of time that the person was not the chief executive or chief financial officer, that individual is also liable for trust fund tax liability that became due during the period that he or she had the duty to remit payment of the limited liability business entity's taxes to the department but was not the chief executive or chief financial officer.
(b) All other responsible individuals are liable under this section only for trust fund tax liability that became due during the period he or she had the responsibility or duty to remit payment of the limited liability business entity's taxes to the department.
(5) Persons described in subsection (3)(b) of this section are exempt from liability under this section in situations where nonpayment of the limited liability business entity's trust fund taxes is due to reasons beyond their control as determined by the department by rule.
(6) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 82.32.160, 82.32.170, 82.32.180, 82.32.190, and
82.32.200
.
(7) This section does not relieve the limited liability business entity of its trust fund tax liability or otherwise impair other tax collection remedies afforded by law.
(8) Collection authority and procedures prescribed in this chapter apply to collections under this section.
(9) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Chief executive" means: The president of a corporation; or for other entities or organizations other than corporations or if the corporation does not have a president as one of its officers, the highest ranking executive manager or administrator in charge of the management of the company or organization.
(b) "Chief financial officer" means: The treasurer of a corporation; or for entities or organizations other than corporations or if a corporation does not have a treasurer as one of its officers, the highest senior manager who is responsible for overseeing the financial activities of the entire company or organization.
(c) "Limited liability business entity" means a type of business entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity, or a business entity that is managed or owned in whole or in part by an entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity. Limited liability business entities include corporations, limited liability companies, limited liability partnerships, trusts, general partnerships and joint ventures in which one or more of the partners or parties are also limited liability business entities, and limited partnerships in which one or more of the general partners are also limited liability business entities.
(d) "Manager" has the same meaning as in RCW 25.15.006
.
(e) "Member" has the same meaning as in RCW 25.15.006, except that the term only includes members of member-managed limited liability companies.
(f) "Officer" means any officer or assistant officer of a corporation, including the president, vice president, secretary, and treasurer.
(g)(i) "Responsible individual" includes any current or former officer, manager, member, partner, or trustee of a limited liability business entity with an unpaid tax warrant issued by the department.
(ii) "Responsible individual" also includes any current or former employee or other individual, but only if the individual had the responsibility or duty to remit payment of the limited liability business entity's unpaid trust fund tax liability reflected in a tax warrant issued by the department.
(iii) Whenever any taxpayer has one or more limited liability business entities as a member, manager, or partner, "responsible individual" also includes any current and former officers, members, or managers of the limited liability business entity or entities or of any other limited liability business entity involved directly in the management of the taxpayer. For purposes of this subsection (9)(g)(iii), "taxpayer" means a limited liability business entity with an unpaid tax warrant issued against it by the department.
(h) "Trust fund taxes" means taxes collected from purchasers and held in trust under RCW 82.08.050, including taxes imposed under RCW 82.08.020, 82.08.150, and
82.51.010
.
(i) "Willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.
[
2020 c 301 s 6
;
2015 c 188 s 121
;
2012 c 39 s 8
;
2010 1st sp.s. c 23 s 801
;
1995 c 318 s 2
;
1987 c 245 s 1
.]
NOTES:
Automatic expiration date and tax preference performance statement exemption
—
2020 c 301:
See RCW 82.51.900
.
Effective date
—
2015 c 188:
See RCW 25.15.903
.
Construction
—
Effective date
—
2012 c 39:
See notes following RCW 82.08.155
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.32.655
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
1995 c 318:
See note following RCW 82.04.030
.
PDF
RCW 82.32.145
Limited liability business entity
—
Terminated, dissolved, abandoned, insolvent
—
Collection of unpaid trust fund taxes.
(Effective January 1, 2026.)
(1) Whenever the department has issued a warrant under RCW 82.32.210
for the collection of unpaid trust fund taxes from a limited liability business entity and that business entity has been terminated, dissolved, or abandoned, or is insolvent, the department may pursue collection of the entity's unpaid trust fund taxes, including penalties and interest on those taxes, against any or all of the responsible individuals. For purposes of this subsection, "insolvent" means the condition that results when the sum of the entity's debts exceeds the fair market value of its assets. The department may presume that an entity is insolvent if the entity refuses to disclose to the department the nature of its assets and liabilities.
(2) Personal liability under this section may be imposed for state and local trust fund taxes.
(3)(a) For a responsible individual who is the current or a former chief executive or chief financial officer, liability under this section applies regardless of fault or whether the individual was or should have been aware of the unpaid trust fund tax liability of the limited liability business entity.
(b) For any other responsible individual, liability under this section applies only if he or she willfully fails to pay or to cause to be paid to the department the trust fund taxes due from the limited liability business entity.
(4)(a) Except as provided in this subsection (4)(a), a responsible individual who is the current or a former chief executive or chief financial officer is liable under this section only for trust fund tax liability accrued during the period that he or she was the chief executive or chief financial officer. However, if the responsible individual had the responsibility or duty to remit payment of the limited liability business entity's trust fund taxes to the department during any period of time that the person was not the chief executive or chief financial officer, that individual is also liable for trust fund tax liability that became due during the period that he or she had the duty to remit payment of the limited liability business entity's taxes to the department but was not the chief executive or chief financial officer.
(b) All other responsible individuals are liable under this section only for trust fund tax liability that became due during the period he or she had the responsibility or duty to remit payment of the limited liability business entity's taxes to the department.
(5) Persons described in subsection (3)(b) of this section are exempt from liability under this section in situations where nonpayment of the limited liability business entity's trust fund taxes is due to reasons beyond their control as determined by the department by rule.
(6) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 82.32.160, 82.32.170, 82.32.180, 82.32.190, and
82.32.200
.
(7) This section does not relieve the limited liability business entity of its trust fund tax liability or otherwise impair other tax collection remedies afforded by law.
(8) Collection authority and procedures prescribed in this chapter apply to collections under this section.
(9) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Chief executive" means: The president of a corporation; or for other entities or organizations other than corporations or if the corporation does not have a president as one of its officers, the highest ranking executive manager or administrator in charge of the management of the company or organization.
(b) "Chief financial officer" means: The treasurer of a corporation; or for entities or organizations other than corporations or if a corporation does not have a treasurer as one of its officers, the highest senior manager who is responsible for overseeing the financial activities of the entire company or organization.
(c) "Limited liability business entity" means a type of business entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity, or a business entity that is managed or owned in whole or in part by an entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity. Limited liability business entities include corporations, limited liability companies, limited liability partnerships, trusts, general partnerships and joint ventures in which one or more of the partners or parties are also limited liability business entities, and limited partnerships in which one or more of the general partners are also limited liability business entities.
(d) "Manager" has the same meaning as in RCW 25.15.006
.
(e) "Member" has the same meaning as in RCW 25.15.006, except that the term only includes members of member-managed limited liability companies.
(f) "Officer" means any officer or assistant officer of a corporation, including the president, vice president, secretary, and treasurer.
(g)(i) "Responsible individual" includes any current or former officer, manager, member, partner, or trustee of a limited liability business entity with an unpaid tax warrant issued by the department.
(ii) "Responsible individual" also includes any current or former employee or other individual, but only if the individual had the responsibility or duty to remit payment of the limited liability business entity's unpaid trust fund tax liability reflected in a tax warrant issued by the department.
(iii) Whenever any taxpayer has one or more limited liability business entities as a member, manager, or partner, "responsible individual" also includes any current and former officers, members, or managers of the limited liability business entity or entities or of any other limited liability business entity involved directly in the management of the taxpayer. For purposes of this subsection (9)(g)(iii), "taxpayer" means a limited liability business entity with an unpaid tax warrant issued against it by the department.
(h) "Trust fund taxes" means taxes collected from purchasers and held in trust under RCW 82.08.050, including taxes imposed under RCW 82.08.020, 82.08.150, 82.08.817, 82.12.818, 82.48A.010, 82.48A.020, and
82.51.010
.
(i) "Willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.
[
2025 c 417 s 205
;
2020 c 301 s 6
;
2015 c 188 s 121
;
2012 c 39 s 8
;
2010 1st sp.s. c 23 s 801
;
1995 c 318 s 2
;
1987 c 245 s 1
.]
NOTES:
Effective date
—
2025 c 417 ss 104, 105, 107-110, 201-206, 301-303, 604, and 903:
See note following RCW 46.17.355
.
Findings
—
Intent
—
2025 c 417:
See note following RCW 82.38.030
.
Automatic expiration date and tax preference performance statement exemption
—
2020 c 301:
See RCW 82.51.900
.
Effective date
—
2015 c 188:
See RCW 25.15.903
.
Construction
—
Effective date
—
2012 c 39:
See notes following RCW 82.08.155
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.32.655
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
1995 c 318:
See note following RCW 82.04.030
.
RCW 82.32.150
Contest of tax
—
Prepayment required
—
Restraining orders and injunctions barred.
All taxes, penalties, and interest shall be paid in full before any action may be instituted in any court to contest all or any part of such taxes, penalties, or interest. No restraining order or injunction shall be granted or issued by any court or judge to restrain or enjoin the collection of any tax or penalty or any part thereof, except upon the ground that the assessment thereof was in violation of the Constitution of the United States or that of the state.
[
1961 c 15 s 82.32.150
. Prior:
1935 c 180 s 198
; RRS s 8370-198.]
RCW 82.32.160
Correction of tax
—
Administrative procedure
—
Conference
—
Determination by department.
Any person having been issued a notice of additional taxes, delinquent taxes, interest, or penalties assessed by the department, may within thirty days after the issuance of the original notice of the amount thereof or within the period covered by any extension of the due date thereof granted by the department petition the department in writing for a correction of the amount of the assessment, and a conference for examination and review of the assessment. The petition shall set forth the reasons why the correction should be granted and the amount of the tax, interest, or penalties, which the petitioner believes to be due. The department shall promptly consider the petition and may grant or deny it. If denied, the petitioner shall be notified by mail, or electronically as provided in RCW 82.32.135, thereof forthwith. If a conference is granted, the department shall fix the time and place therefor and notify the petitioner thereof by mail or electronically as provided in RCW 82.32.135
. After the conference the department may make such determination as may appear to it to be just and lawful and shall mail a copy of its determination to the petitioner, or provide a copy of its determination electronically as provided in RCW 82.32.135
. If no such petition is filed within the thirty-day period the assessment covered by the notice shall become final.
The procedures provided for herein shall apply also to a notice denying, in whole or in part, an application for a pollution control tax exemption and credit certificate, with such modifications to such procedures established by departmental rules and regulations as may be necessary to accommodate a claim for exemption or credit.
[
2007 c 111 s 110
;
1989 c 378 s 22
;
1975 1st ex.s. c 158 s 4
;
1967 ex.s. c 26 s 49
;
1963 ex.s. c 28 s 8
;
1961 c 15 s 82.32.160
. Prior: 1939 c 225 s 29, part; 1935 c 180 s 199, part; RRS s 8370-199, part.]
NOTES:
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Effective date
—
1975 1st ex.s. c 158:
See note following RCW 82.34.050
.
Effective date
—
1967 ex.s. c 26:
See note following RCW 82.01.050
.
RCW 82.32.170
Reduction of tax after payment
—
Petition
—
Conference
—
Determination by department.
Any person, having paid any tax, original assessment, additional assessment, or corrected assessment of any tax, may apply to the department within the time limitation for refund provided in this chapter, by petition in writing for a correction of the amount paid, and a conference for examination and review of the tax liability, in which petition he or she shall set forth the reasons why the conference should be granted, and the amount in which the tax, interest, or penalty, should be refunded. The department shall promptly consider the petition, and may grant or deny it. If denied, the petitioner shall be notified by mail, or electronically as provided in RCW 82.32.135, thereof forthwith. If a conference is granted, the department shall notify the petitioner by mail, or electronically as provided in RCW 82.32.135, of the time and place fixed therefor. After the hearing, the department may make such determination as may appear to it just and lawful, and shall mail a copy of its determination to the petitioner, or provide a copy of its determination electronically as provided in RCW 82.32.135
.
[
2013 c 23 s 324
;
2007 c 111 s 111
;
1967 ex.s. c 26 s 50
;
1961 c 15 s 82.32.170
. Prior:
1951 1st ex.s. c 9 s 11
; 1939 c 225 s 29, part; 1935 c 180 s 199, part; RRS s 8370-199, part.]
NOTES:
Part headings not law
—
2007 c 111:
See note following RCW 82.16.120
.
Effective date
—
1967 ex.s. c 26:
See note following RCW 82.01.050
.
RCW 82.32.180
Court appeal
—
Procedure.
Any person, except one who has failed to keep and preserve books, records, and invoices as required in this chapter and chapter
82.24
RCW, having paid any tax as required and feeling aggrieved by the amount of the tax may appeal to the superior court of Thurston county, within the time limitation for a refund provided in chapter
82.32
RCW or, if an application for refund has been made to the department within that time limitation, then within thirty days after rejection of the application, whichever time limitation is later. In the appeal the taxpayer shall set forth the amount of the tax imposed upon the taxpayer which the taxpayer concedes to be the correct tax and the reason why the tax should be reduced or abated. The appeal shall be perfected by serving a copy of the notice of appeal upon the department within the time herein specified and by filing the original thereof with proof of service with the clerk of the superior court of Thurston county.
The trial in the superior court on appeal shall be de novo and without the necessity of any pleadings other than the notice of appeal. At trial, the burden shall rest upon the taxpayer to prove that the tax as paid by the taxpayer is incorrect, either in whole or in part, and to establish the correct amount of the tax. In such proceeding the taxpayer shall be deemed the plaintiff, and the state, the defendant; and both parties shall be entitled to subpoena the attendance of witnesses as in other civil actions and to produce evidence that is competent, relevant, and material to determine the correct amount of the tax that should be paid by the taxpayer. Either party may seek appellate review in the same manner as other civil actions are appealed to the appellate courts.
It shall not be necessary for the taxpayer to protest against the payment of any tax or to make any demand to have the same refunded or to petition the director for a hearing in order to appeal to the superior court, but no court action or proceeding of any kind shall be maintained by the taxpayer to recover any tax paid, or any part thereof, except as herein provided.
The provisions of this section shall not apply to any tax payment which has been the subject of an appeal to the board of tax appeals with respect to which appeal a formal hearing has been elected.
[
1997 c 156 s 4
;
1992 c 206 s 4
;
1989 c 378 s 23
;
1988 c 202 s 67
;
1971 c 81 s 148
;
1967 ex.s. c 26 s 51
;
1965 ex.s. c 141 s 5
;
1963 ex.s. c 28 s 9
;
1961 c 15 s 82.32.180
. Prior:
1951 1st ex.s. c 9 s 12
; 1939 c 225 s 29, part; 1935 c 180 s 199, part; RRS s 8370-199, part.]
NOTES:
Effective date
—
1992 c 206:
See note following RCW 82.04.170
.
Severability
—
1988 c 202:
See note following RCW 2.24.050
.
Appeal to board of tax appeals, formal hearing: RCW 82.03.160
.
RCW 82.32.190
Stay of collection pending suit
—
Interest.
(1) The department, by its order, may hold in abeyance the collection of tax from any taxpayer or any group of taxpayers when a question bearing on their liability for tax hereunder is pending before the courts. The department may impose such conditions as may be deemed just and equitable and shall require the payment of interest at the rate of three-quarters of one percent of the amount of the tax for each thirty days or portion thereof from the date upon which such tax became due until the date of payment.
(2) Interest imposed under this section for periods after January 1, 1997, shall be computed on a daily basis at the rate as computed under RCW 82.32.050
(2). The rate so computed shall be adjusted on the first day of January of each year. Interest for taxes held in abeyance under this section before January 1, 1997, but outstanding after January 1, 1997, shall not be recalculated but shall remain at three-quarters of one percent per each thirty days or portion thereof.
[
1996 c 149 s 3
;
1971 ex.s. c 299 s 21
;
1965 ex.s. c 141 s 6
;
1961 c 15 s 82.32.190
. Prior:
1937 c 227 s 19
;
1935 c 180 s 200
; RRS s 8370-200.]
NOTES:
Findings
—
Intent
—
Effective date
—
1996 c 149:
See notes following RCW 82.32.050
.
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
RCW 82.32.200
Stay of collection
—
Bond
—
Interest.
(1) When any assessment or additional assessment has been made, the taxpayer may obtain a stay of collection, under such circumstances and for such periods as the department of revenue may by general regulation provide, of the whole or any part thereof, by filing with the department a bond in an amount, not exceeding twice the amount on which stay is desired, and with sureties as the department deems necessary, conditioned for the payment of the amount of the assessments, collection of which is stayed by the bond, together with the interest thereon at the rate of one percent of the amount of such assessment for each thirty days or portion thereof from the date the bond is filed until the date of payment.
(2) Interest imposed under this section after January 1, 1997, shall be computed on a daily basis on the amount of tax at the rate as computed under RCW 82.32.050
(2). The rate so computed shall be adjusted on the first day of January of each year. Interest for bonds filed before January 1, 1997, but outstanding after January 1, 1997, shall not be recalculated but shall remain at one percent per each thirty days or portion thereof.
[
1996 c 149 s 4
;
1975 1st ex.s. c 278 s 83
;
1961 c 15 s 82.32.200
. Prior:
1935 c 180 s 201
; RRS s 8370-201.]
NOTES:
Findings
—
Intent
—
Effective date
—
1996 c 149:
See notes following RCW 82.32.050
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.210
Tax warrant
—
Filing
—
Lien
—
Effect.
(1) If any fee, tax, increase, or penalty or any portion thereof is not paid within fifteen days after it becomes due, the department may issue a warrant in the amount of the unpaid sums, together with interest thereon from the date the warrant is issued until the date of payment. If, however, the department believes that a taxpayer is about to cease business, leave the state, or remove or dissipate the assets out of which fees, taxes or penalties might be satisfied and that any tax or penalty will not be paid when due, it may declare the fee, tax or penalty to be immediately due and payable and may issue a warrant immediately.
(a) Interest imposed before January 1, 1999, is computed at the rate of one percent of the amount of the warrant for each thirty days or portion thereof.
(b) Interest imposed after December 31, 1998, is computed on a daily basis on the amount of outstanding tax or fee at the rate as computed under RCW 82.32.050
(2). The rate so computed must be adjusted on the first day of January of each year for use in computing interest for that calendar year. As used in this subsection, "fee" does not include an administrative filing fee such as a court filing fee and warrant fee.
(2) Except as provided in RCW 82.32.212, the department must file a copy of the warrant with the clerk of the superior court of any county of the state in which real and/or personal property of the taxpayer may be found. The clerk is entitled to a filing fee under RCW 36.18.012
(10). Upon filing, the clerk will enter in the judgment docket, the name of the taxpayer mentioned in the warrant and in appropriate columns the amount of the fee, tax or portion thereof and any increases and penalties for which the warrant is issued and the date when the copy is filed. The amount of the warrant so docketed is a specific lien upon all goods, wares, merchandise, fixtures, equipment, or other personal property used in the conduct of the business of the taxpayer against whom the warrant is issued, including property owned by third persons who have a beneficial interest, direct or indirect, in the operation of the business, and no sale or transfer of the personal property in any way affects the lien.
(3) The lien is not superior, however, to bona fide interests of third persons that vested before the filing of the warrant when the third persons do not have a beneficial interest, direct or indirect, in the operation of the business, other than to secure payment of a debt or to receive a regular rental on equipment. The phrase "bona fide interests of third persons" does not include any mortgage of real or personal property or any other credit transaction that results in the mortgagee or the holder of the security acting as trustee for unsecured creditors of the taxpayer mentioned in the warrant who executed the chattel or real property mortgage or the document evidencing the credit transaction.
(4) The amount of the warrant so docketed is also a lien upon the title to and interest in all other real and personal property of the taxpayer against whom it is issued the same as a judgment in a civil case duly docketed in the office of the clerk. The warrant so docketed is sufficient to support the issuance of writs of garnishment in favor of the state as provided by law for judgments wholly or partially unsatisfied.
[
2011 c 131 s 1
;
2001 c 146 s 12
;
1998 c 311 s 8
;
1997 c 157 s 3
;
1987 c 405 s 15
;
1983 1st ex.s. c 55 s 8
;
1967 ex.s. c 89 s 3
;
1961 c 15 s 82.32.210
. Prior:
1955 c 389 s 38
; prior:
1951 1st ex.s. c 9 s 13
; 1949 c 228 s 225, part; 1937 c 227 s 20, part; 1935 c 180 s 202, part; Rem. Supp. 1949 s 8370-202, part.]
NOTES:
Effective date
—
2011 c 131:
See note following RCW 82.32.212
.
Severability
—
1987 c 405:
See note following RCW 70A.15.3500
.
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
RCW 82.32.212
Tax warrant
—
Notice of lien.
(1) To secure payment of a tax warrant issued by the department under RCW 82.32.210, the department may issue a notice of lien against any real property in which the taxpayer against whom the warrant was issued has an ownership interest, if the total amount for which the warrant was issued exceeds twenty-five thousand dollars and the department determines that issuing the notice of lien would best protect the state's interest in collecting the amount due on the warrant. The department must file the notice of lien with the recording officer of the county where the real property is located. The recording officer is entitled to a filing fee as provided under RCW 36.18.010
.
(2)(a) Except as otherwise provided in this section, recording a notice of lien as authorized in this section is in lieu of filing with the clerk of the superior court a copy of the warrant secured by the notice of lien.
(b) Notwithstanding (a) of this subsection (2), the department may file with the superior court a warrant that is secured by a notice of lien under this section if: (i) The department determines that filing the warrant is in the best interest of collecting the amount due on the tax warrant; or (ii) the warrant remains unpaid six months after the notice of lien was issued.
(3) If a warrant has been filed with the clerk of the superior court, the department may issue and record a notice of lien against real property of the taxpayer and file a conditional satisfaction of the warrant with the clerk of the superior court of the county in which the warrant was filed, if the department determines that such actions are in the best interest of collecting the amount due on the warrant.
(a) A warrant for which a conditional satisfaction is filed will continue to accrue interest on the unpaid balance as provided in RCW 82.32.210
.
(b)(i) The department may refile a warrant for which a conditional satisfaction has been filed if: (A) The department determines that refiling the warrant is in the best interest of collecting the amount due on the warrant; or (B) the warrant remains unpaid six months after the notice of lien was issued.
(ii) A warrant is refiled in the same manner as it was originally filed.
(c) A warrant that is refiled as provided in this subsection (3) reinstates the liens provided under RCW 82.32.210
as of the date the warrant is refiled.
(d) For the purposes of this subsection (3), a "conditional satisfaction" is a document issued by the department, which, when filed with the clerk of the superior court of the county in which the warrant was filed, releases the liens provided under RCW 82.32.210
without prejudice to refile the warrant at a later date.
(4) When a taxpayer has requested the department to use the collection authority under this section, in order to determine if the issuance of a notice of lien would best protect the state's interest in collecting the amount due on the warrant, the department may require the taxpayer to:
(a) Provide, at the taxpayer's expense, the department with a current abstract of title as defined by RCW 48.29.010
from a title insurer that possesses a certificate of authority issued under Title
48
RCW; and
(b) Authorize the department to obtain the taxpayer's current credit report.
(5) A notice of lien issued under this section must include the following information:
(a) The name of the taxpayer who has an interest in the real property against which the notice of lien is filed;
(b) The taxpayer's tax registration number issued as provided in RCW 82.32.030
;
(c) The number of the warrant issued by the department;
(d) The amount for which the warrant was issued;
(e) The legal description, tax parcel number assigned under RCW 84.40.160, and the street address, if available, of the real property against which the notice of lien is issued; and
(f) Any other information the department determines would be useful.
(6) The notice of lien issued under this section is superior to all other liens and encumbrances, except:
(a) Bona fide interests of third persons that had vested prior to the recording of the notice of lien, if the third persons do not have a beneficial interest, direct or indirect, in the operation of the taxpayer's business, other than the securing of the payment of a debt or the receiving of a regular rental on equipment. For purposes of this subsection, "bona fide interests of third persons" has the same meaning as in RCW 82.32.210
; and
(b) Property taxes and special assessments against the property.
(7) The department must release a notice of lien issued under this section as soon as practicable after receipt of payment in full of the amount due on the warrant secured by the notice of lien, including interest accrued as provided in RCW 82.32.210
(1) and all recording fees claimed by the recording officer for the recording of the notice of lien and the release of the lien.
(8) The department must release a notice of lien issued under this section within fourteen days if the notice of lien was issued in error.
[
2011 c 131 s 2
.]
NOTES:
Effective date
—
2011 c 131:
"This act takes effect January 1, 2012." [
2011 c 131 s 3
.]
RCW 82.32.215
Revocation of certificate of registration.
(1) The department may, by order, revoke the certificate of registration of a taxpayer for any of the following reasons:
(a) A warrant issued under this chapter is not paid within thirty days after it has been filed with the clerk of the superior court;
(b) The taxpayer is delinquent, for three consecutive reporting periods, in the transmission to the department of retail sales tax collected by the taxpayer; or
(c)(i)(A) The taxpayer was convicted of violating RCW 82.32.290
(4) and continues to engage in business without fully complying with RCW 82.32.290
(4)(b) (i) through (iii); or
(B) A person convicted of violating RCW 82.32.290
(4) is an owner, officer, director, partner, trustee, member, or manager of the taxpayer, and the person and taxpayer have not fully complied with RCW 82.32.290
(4)(b) (i) through (iii).
(ii) For the purposes of this subsection (1)(c), the terms "manager," "member," and "officer" mean the same as defined in RCW 82.32.145
.
(2) If the department enters a final order revoking a taxpayer's certificate of registration, a copy of the order must, if practicable, be posted in a conspicuous place at the main entrance to the taxpayer's place of business. The department may also post a final order revoking a taxpayer's certificate of registration in any public facility, such as a courthouse or post office, as may be allowed by the public entity that owns or occupies the facility. A final order posted at the taxpayer's place of business must remain posted until such time as the taxpayer is eligible to have its certificate of registration reinstated as provided in subsection (3) of this section or has abandoned the premises. A taxpayer will not be deemed to have abandoned the premises if the taxpayer or any person with an ownership interest in the taxpayer continues to operate a substantially similar type of business under a different legal entity at the same location.
(3) Any certificate revoked under subsection (1) of this section may not be reinstated, nor may a new certificate of registration be issued to the taxpayer, until:
(a) The amount due on the warrant has been paid, or provisions for payment satisfactory to the department have been entered, and until the taxpayer has deposited with the department security for payment of any taxes, increases, and penalties, due or which may become due in an amount and under such terms and conditions as the department of revenue may require, but the amount of the security may not be greater than one-half the estimated average annual liability of the taxpayer; or
(b) The taxpayer and, if applicable, the owner, officer, director, partner, trustee, member, or manager of the taxpayer who was convicted of violating RCW 82.32.290
(4) are in full compliance with RCW 82.32.290
(4)(b) (i) through (iii), if the certificate of registration was revoked under the provisions of subsection (1)(c) of this section.
[
2013 c 309 s 1
;
1998 c 311 s 9
;
1983 1st ex.s. c 55 s 9
.]
NOTES:
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
RCW 82.32.220
Execution of warrant
—
Levy upon property
—
Satisfaction.
The department of revenue may issue an order of execution, pursuant to a filed warrant, directed to the sheriff of the county in which the warrant has been filed, commanding the sheriff to levy upon and sell the real and/or personal property of the taxpayer found within the sheriff's county, or so much thereof as may be necessary, for the payment of the amount of the warrant, plus the cost of executing the warrant, and return the warrant to the department of revenue and pay to it the money collected by virtue thereof within sixty days after the receipt of the warrant. The sheriff shall thereupon proceed upon the same in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgments of the superior court.
The sheriff shall be entitled to fees as provided by law for the sheriff's services in levying execution on a superior court judgment and the clerk shall be entitled to a filing fee as provided by law, which shall be added to the amount of the warrant.
The proceeds received from any sale shall be credited upon the amount due under the warrant and when the final amount due is received, together with interest, penalties, and costs, the judgment docket shall show the claim for taxes to be satisfied and the clerk of the court shall so note upon the docket. Any surplus received from any sale of property shall be paid to the taxpayer or to any lienholder entitled thereto. If the return on the warrant shows that the same has not been satisfied in full, the amount of the deficiency shall remain the same as a judgment against the taxpayer which may be collected in the same manner as the original amount of the warrant.
[
1998 c 311 s 10
;
1983 1st ex.s. c 55 s 10
;
1961 c 304 s 6
;
1961 c 15 s 82.32.220
. Prior:
1955 c 389 s 39
; prior:
1951 1st ex.s. c 9 s 14
; 1949 c 228 s 25, part; 1937 c 227 s 20, part; 1935 c 180 s 202, part; Rem. Supp. 1949 s 8370-202, part.]
NOTES:
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
Fee for filing tax warrant by county clerk: RCW 36.18.020
.
RCW 82.32.230
Agent of the department of revenue may execute.
In the discretion of the department of revenue, an order of execution of like terms, force, and effect may be issued and directed to any agent of the department authorized to collect taxes, and in the execution thereof such agent shall have all the powers conferred by law upon sheriffs, but shall not be entitled to any fee or compensation in excess of the actual expenses paid in the performance of such duty, which shall be added to the amount of the warrant.
[
1983 1st ex.s. c 55 s 11
;
1975 1st ex.s. c 278 s 84
;
1961 c 15 s 82.32.230
. Prior: 1949 c 228 s 25, part; 1937 c 227 s 20, part; 1935 c 180 s 202, part; Rem. Supp. 1949 s 8370-202, part.]
NOTES:
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 82.32.235
Notice and order to withhold and deliver property due or owned by taxpayer
—
Bond
—
Judgment by default.
(1) In addition to the remedies provided in this chapter the department is authorized to issue to any person, including the department, a notice and order to withhold and deliver property of any kind whatsoever when there is reason to believe that there is in the possession of such person, property which is or will become due, owing, or belonging to any taxpayer against whom a warrant has been filed.
(2) The sheriff of the county where the service is made, or his or her deputy, or any duly authorized representative of the department may personally serve the notice and order to withhold and deliver upon the person to whom it is directed or may do so by certified mail, with return receipt requested. Upon written consent of the person to be served, a notice and order to withhold and deliver issued under subsection (1) of this section may be served electronically.
(3)(a) The department is authorized to issue a notice and order to withhold and deliver to any financial institution in the form of a listing of all or a portion of the unsatisfied tax warrants filed under this chapter and outstanding warrants under RCW 49.48.086
with the clerk of the superior court of a county of the state, except tax warrants subject to a payment agreement, which is not in default, between the department and the taxpayer. The department may also issue a notice and order to withhold and deliver in the form authorized in this subsection (3)(a) to itself or any other person upon that person's written consent.
(b) The department may serve the notice and order to withhold and deliver authorized under this subsection electronically. The remedy in this subsection (3) is in addition to any other remedies authorized by law.
(c) No more than one notice and order to withhold and deliver under this subsection (3) may be served on the same person in a calendar month except upon the person's written consent.
(d) A notice and order to withhold and deliver served on a financial institution under this subsection (3) must include the federal taxpayer identification number of each taxpayer listed in the notice.
(e) For purposes of this subsection, "financial institution" means a bank, trust company, mutual savings bank, savings and loan association, or credit union authorized to do business and accept deposits in this state under state or federal law.
(f) The department may provide a financial institution relief from a notice and order to withhold and deliver in the form provided under this subsection (3) upon the request of the financial institution. The department must consider the size, customer base, and geographic location of the financial institution when considering whether to provide relief. The department must serve any financial institution so relieved under subsection (1) of this section.
(4) Any person who has been served with a notice and order to withhold and deliver under subsection (1) of this section must answer the notice within twenty days, exclusive of the day of service. Any person who has been served with a notice and order to withhold and deliver under subsection (3) of this section must answer the notice within thirty days, exclusive of the day of service. The answer must be in writing, under oath if required by the department, and include true answers to the matters inquired of in the notice. Any person served under subsection (3) of this section may answer in aggregate within thirty days, but must answer separately as to each taxpayer listed and specify any property by taxpayer which is delivered. The department must allow any person served electronically as authorized in subsection (2) or (3) of this section to answer the notice and order to withhold and deliver electronically in a format provided or approved by the department.
(5) In the event there is in the possession of any person served with a notice and order to withhold and deliver, any property which may be subject to the claim of the department, such property must be delivered immediately to the department of revenue or its duly authorized representative upon demand. The department must hold the property in trust for application on the indebtedness involved or for return, without interest, in accordance with final determination of liability or nonliability. Instead of delivering the property to the department or the department's duly authorized representative, the person may furnish a bond satisfactory to the department conditioned upon final determination of liability.
(6) Should any person, having been served with a notice and order to withhold and deliver, fail to answer the notice and order to withhold and deliver within the time prescribed in this section or otherwise fail to comply with the duties imposed in this section, the department may bring a proceeding, in the superior court of Thurston county or of the county in which service of the notice was made, to enforce the notice and order to withhold and deliver. The court may render judgment by default against such person for the full amount claimed by the department in the notice and order to withhold and deliver or may grant such other relief as the court deems just, together with costs.
(7) For purposes of this section, "person" has the same meaning as in RCW 82.04.030
and also includes any agency, department, or institution of the state.
[
2014 c 210 s 2
;
2014 c 97 s 104
;
2009 c 562 s 1
;
1987 c 208 s 1
;
1975 1st ex.s. c 278 s 85
;
1971 ex.s. c 299 s 22
;
1963 ex.s. c 28 s 11
.]
NOTES:
Reviser's note:
This section was amended by 2014 c 97 s 104 and by 2014 c 210 s 2, 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).
Finding
—
2009 c 562:
"(1) The legislature finds that the state's vital interest in collecting lawfully due taxes must be balanced against the burden of complying with section 1(3) of this act, particularly for small financial institutions.
(2)(a) Therefore, the legislature directs the department of revenue to work with interested financial institutions to develop policies regarding the frequency of service under section 1(3) of this act and under what circumstances a notice and order to withhold and deliver will contain only a partial list of unsatisfied tax warrants eligible to be included in the notice. The policies should take into account the size of a financial institution, location of a financial institution, number of business accounts that a financial institution has, and any other factors the department may choose to consider.
(b) The department is also directed to develop a policy regarding the information to be contained in a notice and order to withhold and deliver to ensure that financial institutions can accurately match their records with the names of tax debtors.
(3) The department must report to the fiscal committees of the legislature on the implementation of section 1(3) of this act by January 1, 2012. The report should describe the policies developed by the department as directed in subsection (2) of this section. The report should also describe any difficulties the department encountered in implementing section 1(3) of this act and any suggestions the department may have to improve the effectiveness of section 1(3) of this act, reduce the burden on financial institutions in complying with section 1(3) of this act, or both." [
2009 c 562 s 2
.]
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
RCW 82.32.237
Notice and order to withhold and deliver
—
Continuing lien
—
Effective date.
Upon service, the notice and order to withhold and deliver shall constitute a continuing lien on property of the taxpayer and upon wages due, owing, or belonging to the taxpayer. The department shall include in the caption of the notice and order to withhold and deliver "continuing lien." The effective date of a notice and order to withhold and deliver served under RCW 82.32.235
shall be the date of service thereof.
[
1987 c 208 s 2
.]
RCW 82.32.240
Tax constitutes debt to the state
—
Priority of lien.
Any tax due and unpaid and all increases and penalties thereon, shall constitute a debt to the state and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies.
In all cases of probate, insolvency, assignment for the benefit of creditors, or bankruptcy, involving any taxpayer who is, or decedent who was, engaging in business, the claim of the state for said taxes and all increases and penalties thereon shall be a lien upon all real and personal property of the taxpayer, and the mere existence of such cases or conditions shall be sufficient to create such lien without any prior or subsequent action by the state, and in all such cases it shall be the duty of all administrators, executors, guardians, receivers, trustees in bankruptcy or assignees for the benefit of creditors, to notify the department of revenue of such administration, receivership or assignment within sixty days from the date of their appointment and qualification.
The lien provided for by this section shall attach as of the date of the assignment for the benefit of creditors or of the initiation of the probate, insolvency, or bankruptcy proceedings: PROVIDED, That this sentence shall not be construed as affecting the validity or priority of any earlier lien that may have attached previously in favor of the state under any other section of this title.
Any administrator, executor, guardian, receiver or assignee for the benefit of creditors not giving the notification as provided for above shall become personally liable for payment of the taxes and all increases and penalties thereon to the extent of the value of the property subject to administration that otherwise would have been available for the payment of such taxes, increases, and penalties by the administrator, executor, guardian, receiver, or assignee.
As used in this section, "probate" includes the nonprobate claim settlement procedure under chapter
11.42
RCW, and "executor" and "administrator" includes any notice agent acting under chapter
11.42
RCW.
[
1994 c 221 s 69
;
1988 c 64 s 21
;
1975 1st ex.s. c 278 s 86
;
1961 c 15 s 82.32.240
. Prior:
1949 c 228 s 26
;
1935 c 180 s 203
; Rem. Supp. 1949 s 8370-203.]
NOTES:
Effective dates
—
1994 c 221:
See note following RCW 11.100.035
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.245
Search for and seizure of property
—
Warrant
—
Procedure.
(1) When there is probable cause to believe that there is property within this state, not otherwise exempt from process or execution, in the possession or control of any taxpayer against whom a tax warrant has been filed which remains unsatisfied, any judge of the superior court or district court in the county in which such property is located may, upon the request of the sheriff or agent of the department authorized to collect taxes, issue a warrant directed to such officers commanding the search for and seizure of the property described in the request for warrant.
(2) Application for, issuance, and execution and return of the warrant authorized by this section and for return of any property seized shall be in accordance with the criminal rules of the superior court and the justice court.
(3) The sheriff or agent of the department shall levy execution upon property seized pursuant to this section as provided in RCW 82.32.220
and
82.32.230
.
(4) Nothing in this section shall require the application for and issuance of any warrant not otherwise required by law.
[
1985 c 414 s 3
.]
RCW 82.32.260
Payment condition to dissolution or withdrawal of corporation.
In the case of any corporation organized under the laws of this state, the courts shall not enter or sign any decree of dissolution, nor shall the secretary of state file in his or her office any certificate of dissolution, and in the case of any corporation organized under the laws of another jurisdiction and admitted to do business in this state, the secretary of state shall withhold the issuance of any certificate of withdrawal, until proof, in the form of a certificate from the department of revenue, has been furnished by the applicant for such dissolution or withdrawal, that every license fee, tax, increase, or penalty has been paid or provided for.
[
2013 c 23 s 325
;
1975 1st ex.s. c 278 s 87
;
1961 c 15 s 82.32.260
. Prior:
1935 c 180 s 204
; RRS s 8370-204.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.265
Use of collection agencies to collect taxes outside the state.
(1) The department may retain, by written contract, collection agencies licensed under chapter
19.16
RCW or licensed under the laws of another state or the District of Columbia for the purpose of collecting from sources outside the state of Washington taxes including interest and penalties thereon imposed under this title and RCW 84.33.041
.
(2) Only accounts represented by tax warrants filed in the superior court of a county in the state as provided by RCW 82.32.210
may be assigned to a collection agency, and no such assignment may be made unless the department has previously notified or has attempted to notify the taxpayer of his or her right to petition for correction of assessment within the time provided and in accordance with the procedures set forth in chapter
82.32
RCW.
(3) Collection agencies assigned accounts for collection under this section shall have only those remedies and powers that would be available to them as assignees of private creditors. However, nothing in this section limits the right to enforce the liability for taxes lawfully imposed under the laws of this state in the courts of another state or the District of Columbia as provided by the laws of such jurisdictions and RCW 4.24.140
and
4.24.150
.
(4) The account of the taxpayer shall be credited with the amounts collected by a collection agency before reduction for reasonable collection costs, including attorneys fees, that the department is authorized to negotiate on a contingent fee or other basis.
[
1987 c 80 s 5
;
1985 c 414 s 4
.]
RCW 82.32.270
Accounting period prescribed.
The taxes imposed hereunder, and the returns required therefor, shall be upon a calendar year basis; but, if any taxpayer in transacting his or her business, keeps books reflecting the same on a basis other than the calendar year, he or she may, with consent of the department of revenue, make his or her returns, and pay taxes upon the basis of his or her accounting period as shown by the method of keeping the books of his or her business.
[
2013 c 23 s 326
;
1975 1st ex.s. c 278 s 88
;
1961 c 15 s 82.32.270
. Prior:
1935 c 180 s 205
; RRS s 8370-205.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.280
Tax declared additional.
Taxes imposed hereunder shall be in addition to any and all other licenses, taxes, and excises levied or imposed by the state or any municipal subdivision thereof.
[
1961 c 15 s 82.32.280
. Prior:
1935 c 180 s 206
; RRS s 8370-206.]
RCW 82.32.290
Unlawful acts
—
Penalties.
(1)(a) It is unlawful:
(i) For any person to engage in business without having obtained a certificate of registration as provided in this chapter;
(ii) For the president, vice president, secretary, treasurer, or other officer of any company to cause or permit the company to engage in business without having obtained a certificate of registration as provided in this chapter;
(iii) For any person to tear down or remove any order or notice posted by the department in violation of this chapter;
(iv) For any person to aid or abet another in any attempt to evade the payment of any tax or any part thereof;
(v) For any purchaser to fraudulently sign or furnish to a seller documentation authorized under RCW 82.04.470
without intent to resell the property purchased or with intent to otherwise use the property in a manner inconsistent with the claimed wholesale purchase; or
(vi) For any person to fail or refuse to permit the examination of any book, paper, account, record, or other data by the department or its duly authorized agent; or to fail or refuse to permit the inspection or appraisal of any property by the department or its duly authorized agent; or to refuse to offer testimony or produce any record as required.
(b) Any person violating any of the provisions of this subsection (1) is guilty of a gross misdemeanor in accordance with chapter
9A.20
RCW.
(2)(a) It is unlawful:
(i) For any person to engage in business after revocation of a certificate of registration unless the person's certification of registration has been reinstated;
(ii) For the president, vice president, secretary, treasurer, or other officer of any company to cause or permit the company to engage in business after revocation of a certificate of registration unless the company's certificate of registration has been reinstated; or
(iii) For any person to make any false or fraudulent return or false statement in any return, with intent to defraud the state or evade the payment of any tax or part thereof.
(b) Any person violating any of the provisions of this subsection (2) is guilty of a class C felony in accordance with chapter
9A.20
RCW.
(3) In addition to the foregoing penalties, any person who knowingly swears to or verifies any false or fraudulent return, or any return containing any false or fraudulent statement with the intent aforesaid, is guilty of the offense of perjury in the second degree and must be punished, upon conviction thereof, by a fine of not more than one thousand dollars.
(4)(a) It is unlawful for any person to knowingly sell, purchase, install, transfer, manufacture, create, design, update, repair, use, possess, or otherwise make available, in this state, any automated sales suppression device or phantom-ware. However, it is not unlawful for persons to possess or use automated sales suppression devices or phantom-ware as authorized in RCW 82.32.670
(6).
(b) It is unlawful for any person who has been convicted of violating this section to engage in business, or participate in any business as an owner, officer, director, partner, trustee, member, or manager of the business, unless:
(i) All taxes, penalties, and interest lawfully due are paid;
(ii) The person pays in full all penalties and fines imposed on the person for violating this section; and
(iii) The person, if the person is engaging in business subject to tax under this title, or the business in which the person participates, enters into a written agreement with the department for the electronic monitoring of the business's sales, by a method acceptable to the department, for five years at the business's expense.
(c)(i) Any person violating the provisions of this subsection, including material breach of the monitoring agreement under (b)(iii) of this subsection, is guilty of a class C felony in accordance with chapter
9A.20
RCW and, as applicable, (c)(ii) of this subsection.
(ii) Any person violating the provisions of this subsection by furnishing an automated sales suppression device or phantom-ware to another person or by updating or repairing another person's automated sales suppression device or phantom-ware is, in addition to the punishments prescribed in chapter
9A.20
RCW, subject to a mandatory fine fixed by the court in an amount equal to the greater of ten thousand dollars, the defendant's gain from the commission of the crime, or the state's loss from the commission of the crime. For purposes of this subsection (4)(c)(ii), "loss" means the total of all taxes, penalties, and interest certified by the department to be due, as of the date of sentencing, as a result of any violation of the provisions of this subsection by a person using the automated sales suppression device or phantom-ware obtained from, or updated or repaired by, the defendant, which results in the defendant's conviction for violating the provisions of this subsection.
(d) For the purposes of this subsection (4), the terms "manager," "member," and "officer" have the same meaning as in RCW 82.32.145
.
(e) The definitions in RCW 82.32.670
apply to this subsection (4).
(5) All penalties or punishments provided in this section are in addition to all other penalties provided by law.
(6) For the purposes of this section, "return" has the same meaning as in RCW 82.32.050
.
[
2022 c 41 s 3
;
2013 c 309 s 2
;
2010 c 112 s 11
;
2009 c 563 s 211
;
1985 c 414 s 2
;
1975 1st ex.s. c 278 s 89
;
1961 c 15 s 82.32.290
. Prior:
1935 c 180 s 207
; RRS s 8370-207.]
NOTES:
Effective date
—
2010 c 112 ss 2, 3, 11, 12, and 15:
See note following RCW 82.32.780
.
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
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.291
Reseller permit
—
Unlawful use
—
Penalty
—
Rules.
(1) Except as otherwise provided in this section, if any buyer improperly uses a reseller permit number, reseller permit, or other documentation authorized under RCW 82.04.470
to purchase items or services at retail without payment of sales tax that was legally due on the purchase, the department must assess against that buyer a penalty of fifty percent of the tax due, in addition to all other taxes, penalties, and interest due, on the improperly purchased item or service.
(2) The department must waive the penalty imposed under subsection (1) of this section if it finds that the use of the reseller permit number, reseller permit, or other documentation authorized under RCW 82.04.470
was due to circumstances beyond the taxpayer's control or if the reseller permit number, reseller permit, or other documentation authorized under RCW 82.04.470
was properly used for purchases for dual purposes. The department must define by rule what circumstances are considered to be beyond the taxpayer's control.
(3) A buyer that purchases items or services at retail without payment of sales tax legally due on the purchase is deemed to have improperly used a reseller permit number, reseller permit, or other documentation authorized under RCW 82.04.470
to purchase the items or services without payment of sales tax and is subject to the penalty in subsection (1) of this section if the buyer:
(a) Furnished to the seller a reseller permit number, a reseller permit or copy of a reseller permit, or other documentation authorized under RCW 82.04.470
to avoid payment of sales tax legally due on the purchase; or
(b) Made the purchase from a seller that had previously used electronic means to verify the validity of the buyer's reseller permit with the department and, as a result, did not require the buyer to provide a copy of its reseller permit or furnish other documentation authorized under RCW 82.04.470
to document the wholesale nature of the purchase. In such cases, the buyer bears the burden of proving that it did not improperly use its reseller permit to make the purchase without payment of sales tax.
[
2010 c 112 s 12
. Prior:
2009 c 563 s 212
;
2009 c 289 s 4
;
1993 sp.s. c 25 s 703
.]
NOTES:
Effective date
—
2010 c 112 ss 2, 3, 11, 12, and 15:
See note following RCW 82.32.780
.
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
.
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Seller's permit and uniform exemption certificate: RCW 82.04.470
and
82.08.130
.
RCW 82.32.300
Department of revenue to administer
—
Chapters enforced by liquor and cannabis board.
(1) The department must administer this chapter and such other provisions of the Revised Code of Washington as specifically provided by law. To that end, the department may prescribe forms and rules of procedure for the determination of the taxable status of any person, for the making of returns and for the ascertainment, assessment, and collection of taxes and penalties imposed thereunder.
(2)(a) The department may make and publish rules, not inconsistent therewith, necessary to enforce provisions of this chapter and such other provisions of the Revised Code of Washington that the department is empowered by law to enforce. The liquor and cannabis board may make and publish rules necessary to enforce chapters
82.24, 82.26, and
82.25
RCW.
(b) Rules adopted by the department or liquor and cannabis board under the authority of this subsection have the same force and effect as if specifically included in law, unless declared invalid by the judgment of a court of record not appealed from.
(3) The department may employ such clerks, specialists, and other assistants as are necessary. Salaries and compensation of such employees must be fixed by the department and charged to the proper appropriation for the department.
(4) The department must exercise general supervision of the collection of taxes and, in the discharge of such duty, may institute and prosecute such suits or proceedings in the courts as may be necessary and proper.
[
2020 c 139 s 39
;
2019 c 445 s 209
;
1997 c 420 s 9
;
1983 c 3 s 222
;
1975 1st ex.s. c 278 s 90
;
1961 c 15 s 82.32.300
. Prior: 1935 c 180 s 208, part; RRS s 8370-208, part.]
NOTES:
Conflict with federal requirements
—
Effective date
—
2019 c 445:
See RCW 82.25.900
and
82.25.901
.
Automatic expiration date and tax preference performance statement exemption
—
2019 c 445:
See note following RCW 82.08.0318
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.310
Immunity of officers, agents, etc., of the department of revenue acting in good faith.
When recovery is had in any suit or proceeding against an officer, agent, or employee of the department of revenue for any act done by him or her or for the recovery of any money exacted by or paid to him or her and by him or her paid over to the department, in the performance of his or her official duty, and the court certifies that there was probable cause for the act done by such officer, agent, or employee, or that he or she acted under the direction of the department or an officer thereof, no execution shall issue against such officer, agent, or employee, but the amount so recovered shall, upon final judgment, be paid by the department as an expense of operation.
[
2013 c 23 s 327
;
1975 1st ex.s. c 278 s 91
;
1961 c 15 s 82.32.310
. Prior: 1935 c 180 s 208, part; RRS s 8370-208, part.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.320
Revenue to state treasurer
—
Allocation for return or payment for less than the full amount due.
The department of revenue, on the next business day following the receipt of any payments hereunder, shall transmit them to the state treasurer, taking his or her receipt therefor. If a return or payment is submitted with less than the full amount of all taxes, interest, and penalties due, the department may allocate payments among applicable funds so as to minimize administrative costs to the extent practicable.
[
1995 c 318 s 7
;
1975 1st ex.s. c 278 s 92
;
1961 c 15 s 82.32.320
. Prior:
1935 c 180 s 209
; RRS s 8370-209.]
NOTES:
Effective date
—
1995 c 318:
See note following RCW 82.04.030
.
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.330
Disclosure of return or tax information.
(1) For purposes of this section:
(a) "Disclose" means to make known to any person in any manner whatever a return or tax information;
(b) "Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state which is filed with the department of revenue by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed;
(c) "Tax information" means (i) a taxpayer's identity, (ii) the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, overassessments, or tax payments, whether taken from the taxpayer's books and records or any other source, (iii) whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, (iv) a part of a written determination that is not designated as a precedent and disclosed pursuant to RCW 82.32.410, or a background file document relating to a written determination, and (v) other data received by, recorded by, prepared by, furnished to, or collected by the department of revenue with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Except as provided by RCW 82.32.410, nothing in this chapter requires any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure;
(d) "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency;
(e) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer; and
(f) "Department" means the department of revenue or its officer, agent, employee, or representative.
(2) Returns and tax information are confidential and privileged, and except as authorized by this section, neither the department of revenue nor any other person may disclose any return or tax information.
(3) This section does not prohibit the department of revenue from:
(a) Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:
(i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this title or chapter
83.100
RCW is a party in the proceeding;
(ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding; or
(iii) Brought by the department under RCW 18.27.040
or
19.28.071
;
(b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter
34.05
RCW, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court;
(c) Disclosing the name of a taxpayer against whom a warrant under RCW 82.32.210
has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness within twelve months;
(d) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof;
(e) Disclosing such return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;
(f) Permitting the department of revenue's records to be audited and examined by the proper state officer, his or her agents and employees;
(g) Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110
or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought;
(h) Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;
(i) Disclosing any such return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies, for official purposes;
(j) Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410
;
(k) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;
(l) Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter
42.56
RCW or is maintained by a court of record and is not otherwise prohibited from disclosure;
(m) Disclosing such return or tax information to the United States department of agriculture for the limited purpose of investigating food stamp fraud by retailers;
(n) Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the department for a filed tax warrant, judgment, or lien against the real property;
(o) Disclosing to a person against whom the department has asserted liability as a successor under RCW 82.32.140
return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded;
(p) Disclosing real estate excise tax affidavit forms filed under RCW 82.45.150
in the possession of the department, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax;
(q) Disclosing to local taxing jurisdictions the identity of sellers granted relief under RCW 82.32.430
(5)(b)(i) and the period for which relief is granted;
(r) Disclosing such return or tax information to the court in respect to the department's application for a subpoena under RCW 82.32.117
;
(s) Disclosing to a person against whom the department has asserted liability under RCW 83.100.120
return or tax information pertaining to that person's liability for tax under chapter
83.100
RCW;
(t) Disclosing such return or tax information to the streamlined sales tax governing board, member states of the streamlined sales tax governing board, or authorized representatives of such board or states, for the limited purposes of:
(i) Conducting on behalf of member states sales and use tax audits of taxpayers; or
(ii) Auditing certified service providers or certified automated systems providers;
(u) Disclosing any such return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington;
(v) Disclosing to an individual to whom the department has issued an assessment under RCW 82.32.145
for unpaid trust fund taxes of a defunct or insolvent entity, return or tax information of that entity pertaining to those unpaid trust fund taxes;
(w) Disclosing any such return or tax information pursuant to a federal grand jury subpoena or subpoena issued by a United States attorney, only to be used in the criminal investigation and related court proceedings, or in the court proceeding for which the return or tax information originally was sought; or
(x) Disclosing any return or tax information to an individual when the return or tax information is related directly to that person's individual liability, as part of a marital community, for amounts due under a warrant issued under the authority of RCW 59.30.090
or
82.32.210
.
(4)(a) The department may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The department may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.
(b) Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose any tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.
(c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:
(i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;
(ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or
(iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.
(d) The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed.
(e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section.
(5) Service of a subpoena issued under RCW 82.32.117
does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena under RCW 82.32.117
may disclose the existence or content of the subpoena to that person's legal counsel.
(6) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the department of revenue and any person acquiring knowledge of any return or tax information as provided under subsection (3) (e), (f), (g), (h), (i), (m), (v), and (w) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this state for a period of two years thereafter.
[
2022 c 56 s 9
;
2021 c 145 s 18
;
2011 c 174 s 404
. Prior:
2010 c 112 s 13
;
2010 c 106 s 104
; prior:
2009 c 563 s 213
;
2009 c 309 s 2
;
2008 c 81 s 11
;
2007 c 6 s 1502
;
2006 c 177 s 7
; prior:
2005 c 326 s 1
;
2005 c 274 s 361
; prior:
2000 c 173 s 1
;
2000 c 106 s 1
;
1998 c 234 s 1
;
1996 c 184 s 5
;
1995 c 197 s 1
;
1991 c 330 s 1
;
1990 c 67 s 1
;
1985 c 414 s 9
;
1984 c 138 s 12
;
1969 ex.s. c 104 s 1
;
1963 ex.s. c 28 s 10
;
1961 c 15 s 82.32.330
; prior:
1943 c 156 s 12
;
1935 c 180 s 210
; Rem. Supp. 1943 s 8370-210.]
NOTES:
Retroactive application
—
2010 c 112:
See note following RCW 82.32.780
.
Application
—
2010 c 106 ss 104 and 111:
"Sections 104(3) (a)(i) and (s) and 111 of this act apply to return or tax information in respect to the tax imposed under chapter
83.100
RCW in the possession of the department of revenue on or after July 1, 2010." [
2010 c 106 s 403
.]
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Finding
—
Intent
—
Construction
—
Effective date
—
Reports and recommendations
—
2009 c 563:
See notes following RCW 82.32.780
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
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 date
—
2006 c 177 ss 1-9:
See note following RCW 82.04.250
.
Effective date
—
2000 c 173:
"This act takes effect July 1, 2000." [
2000 c 173 s 2
.]
Effective date
—
2000 c 106:
"This act takes effect July 1, 2000." [
2000 c 106 s 13
.]
Effective date
—
1996 c 184:
See note following RCW 46.16A.030
.
Effective date
—
1995 c 197:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 c 197 s 2
.]
RCW 82.32.340
Chargeoff of uncollectible taxes
—
Destruction of files and records.
(1) Any tax or penalty which the department of revenue deems to be uncollectible may be transferred from accounts receivable to a suspense account and cease to be accounted an asset. Any item transferred shall continue to be a debt due the state from the taxpayer and may at any time within twelve years from the filing of a warrant covering such amount with the clerk of the superior court be transferred back to accounts receivable for the purpose of collection. The department of revenue may charge off as finally uncollectible any tax or penalty which it deems uncollectible at any time after twelve years from the date that the last tax return for the delinquent taxpayer was or should have been filed if the department of revenue is satisfied that there are no cost-effective means of collecting the tax or penalty.
After any tax or penalty has been charged off as finally uncollectible under the provisions of this section, the department of revenue may destroy any or all files and records pertaining to the liability of any taxpayer for such tax or penalty.
The department of revenue, subject to the approval of the state records committee, may at the expiration of five years after the close of any taxable year, destroy any or all files and records pertaining to the tax liability of any taxpayer for such taxable year, who has fully paid all taxes, penalties and interest for such taxable year, or any preceding taxable year for which such taxes, penalties and interest have been fully paid. In the event that such files and records are reproduced on film pursuant to RCW 40.20.020
for use in accordance with RCW 40.20.030, the original files and records may be destroyed immediately after reproduction and such reproductions may be destroyed at the expiration of the above five-year period, subject to the approval of the state records committee.
(2) Notwithstanding subsection (1) of this section, the department may charge off any tax within its jurisdiction to collect that is owed by a taxpayer, including any penalty or interest thereon, if the department ascertains that the cost of collecting that tax would be greater than the total amount which is owed or likely in the near future to be owed by, and collectible from, the taxpayer.
[
1989 c 78 s 3
;
1985 c 414 s 1
;
1979 ex.s. c 95 s 3
;
1979 c 151 s 184
;
1967 ex.s. c 89 s 4
;
1965 ex.s. c 141 s 7
;
1961 c 15 s 82.32.340
. Prior:
1955 c 389 s 40
;
1939 c 225 s 30
;
1937 c 227 s 21
; 1935 c 180 s 210(a); RRS s 8370-210a.]
RCW 82.32.350
Closing agreements authorized.
The department may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the preceding chapters of this title, or any tax in respect to which this section is specifically made applicable, for any taxable period or periods.
[
2017 c 323 s 107
;
1971 ex.s. c 299 s 23
;
1961 c 15 s 82.32.350
. Prior:
1945 c 251 s 1
; Rem. Supp. 1945 s 8370-225.]
NOTES:
Effective dates
—
2017 c 323 ss 101-109:
See note following RCW 54.28.125
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
RCW 82.32.360
Conclusive effect of agreements.
Upon approval of such agreement, evidenced by execution thereof by the department of revenue and the person so agreeing, the agreement shall be final and conclusive as to tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or of misrepresentation of a material fact:
(1) The case shall not be reopened as to the matters agreed upon, or the agreement modified, by any officer, employee, or agent of the state, or the taxpayer, and
(2) In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.
[
1975 1st ex.s. c 278 s 93
;
1961 c 15 s 82.32.360
. Prior:
1945 c 251 s 2
; Rem. Supp. 1945 s 8370-226.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.32.380
Revenues to be deposited in general fund.
The state treasurer, upon receipt of any payments of tax, penalty, interest, or fees collected hereunder shall deposit them to the credit of the state general fund or such other fund as may be provided by law.
[
1961 c 15 s 82.32.380
. Prior:
1945 c 249 s 10
; 1943 c 156 s 12A, 1941 c 178 s 19(a);
1939 c 225 s 31
;
1937 c 227 s 32
;
1935 c 180 s 211
; Rem. Supp. 1945 s 8370-211.]
RCW 82.32.385
General fund transfers to and from multimodal transportation account, connecting Washington account.
(1)(a) Beginning September 2023 and ending June 2025, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395
$13,987,000.
(b) For fiscal year 2026, the state treasurer must transfer from the multimodal transportation account created in RCW 47.66.070
to the general fund $111,896,000 in four equal quarterly transfers.
(2) Beginning September 2025 and ending June 2027, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395
$11,658,000.
(3) Beginning September 2027 and ending June 2029, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395
$7,564,000.
(4) Beginning September 2029 and ending June 2031, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395
$4,056,000.
(5) For fiscal year 2026 through fiscal year 2038, the state treasurer must transfer from the general fund to the move ahead WA flexible account created in RCW 46.68.520
$31,000,000 each fiscal year in four equal quarterly transfers. This amount represents the estimated state sales and use tax generated from new transportation projects and activities funded as a result of chapter 182, Laws of 2022.
(6)(a) For fiscal year 2024, fiscal year 2025, and fiscal year 2028 through fiscal year 2038, the state treasurer must transfer from the general fund to the move ahead WA flexible account created in RCW 46.68.520
$57,000,000 each fiscal year in four equal quarterly transfers.
(b) For fiscal year 2026, the state treasurer must transfer from the multimodal transportation account created in RCW 47.66.070
to the general fund $114,000,000 in four equal quarterly transfers.
(7) For fiscal year 2028 and fiscal year 2029, the state treasurer must transfer from the general fund to the multimodal transportation account created in RCW 47.66.070
$304,691,000 each fiscal year in four equal quarterly transfers.
[
2025 c 418 s 1
;
2022 c 182 s 301
;
2020 c 219 s 703
;
2015 3rd sp.s. c 44 s 420
.]
NOTES:
Effective date
—
2025 c 418 ss 1 and 2:
"Sections 1 and 2 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [May 20, 2025]." [
2025 c 418 s 7
.]
Intent
—
Effective date
—
2022 c 182:
See notes following RCW 70A.65.240
.
Effective date
—
2020 c 219:
See note following RCW 46.68.310
.
Effective date
—
2015 3rd sp.s. c 44:
See note following RCW 46.68.395
.
RCW 82.32.394
Revenues from sale or use of leaded racing fuel to be deposited into the advanced environmental mitigation revolving account.
The department of revenue shall deposit into the advanced environmental mitigation revolving account, created in RCW 47.12.340, all moneys received from the imposition on consumers of the taxes under chapters
82.08
and
82.12
RCW on the sales or use of leaded racing fuel which is exempted from the motor vehicle fuel tax under *RCW 82.38.081
.
[
1998 c 115 s 7
.]
NOTES:
*Reviser's note:
RCW 82.38.081
was repealed by
2007 c 515 s 34
.
Intent
—
1998 c 115 ss 6 and 7:
"It is the intent of the legislature that leaded racing fuel be exempted from payment of the motor vehicle fuel tax, as provided in RCW 82.38.081, since it is illegal for use on the public highways of the state under federal law. The legislature further intends that leaded racing fuel be subject to the retail sales and use taxes under chapters
82.08
and
82.12
RCW and that the revenue collected will be earmarked as provided in RCW 82.32.394
." [
1998 c 115 s 5
.]
RCW 82.32.410
Written determinations as precedents.
(1) The director may designate certain written determinations as precedents.
(a) By rule adopted pursuant to chapter
34.05
RCW, the director shall adopt criteria which he or she shall use to decide whether a determination is precedential. These criteria shall include, but not be limited to, whether the determination clarifies an unsettled interpretation of Title
82
RCW or where the determination modifies or clarifies an earlier interpretation.
(b) Written determinations designated as precedents by the director shall be made available for public inspection and shall be published by the department.
(c) The department shall disclose any written determination upon which it relies to support any assessment of tax, interest, or penalty against such taxpayer, after making the deletions provided by subsection (2) of this section.
(2) Before making a written determination available for public inspection under subsection (1) of this section, the department shall delete:
(a) The names, addresses, and other identifying details of the person to whom the written determination pertains and of another person identified in the written determination; and
(b) Information the disclosure of which is specifically prohibited by any statute applicable to the department of revenue, and the department may also delete other information exempted from disclosure by chapter
42.56
RCW or any other statute applicable to the department of revenue.
[
2005 c 274 s 362
;
2001 c 320 s 10
;
1997 c 409 s 211
;
1991 c 330 s 2
.]
NOTES:
Effective date
—
2001 c 320:
See note following RCW 11.02.005
.
Part headings
—
Severability
—
1997 c 409:
See notes following RCW 43.22.051
.
RCW 82.32.430
Liability for tax rate calculation errors
—
Geographic information system.
(1) A person who collects and remits sales or use tax to the department and who calculates the tax using geographic information system technology developed and provided by the department shall be held harmless and is not liable for the difference in amount due nor subject to penalties or interest in regards to rate calculation errors resulting from the proper use of such technology.
(2) Except as provided in subsection (3) of this section, the department shall notify sellers who collect and remit sales or use tax to the department of changes in boundaries and rates to taxes imposed under the authority of chapter
82.14
RCW no later than sixty days before the effective date of the change.
(3) The department shall notify sellers who collect and remit sales or use tax to the department and make sales from printed catalogs of changes, as to such sales, of boundaries and rates to taxes imposed under the authority of chapter
82.14
RCW no later than one hundred twenty days before the effective date of the change.
(4) Sellers who have not received timely notice of rate and boundary changes under subsections (2) and (3) of this section due to actions or omissions of the department are not liable for the difference in the amount due until they have received the appropriate period of notice. Purchasers are liable for any uncollected amounts of tax.
(5)(a) Except as provided in (b) of this subsection, sellers registered with the department under RCW 82.32.030
(3) and certified service providers must use the address-based geographic information technology system developed and provided by the department to calculate the tax to be collected and remitted to the department and to determine the appropriate local jurisdictions entitled to the tax.
(b)(i) Upon a showing that using the address-based geographic information technology system would cause undue hardship, a seller may be temporarily held harmless and not liable for the difference in amount due nor subject to penalties or interest in regards to rate calculation errors resulting from the proper use of zip code-based technology provided by the department for the period in which relief is granted. The department shall notify local taxing jurisdictions of the identity of sellers granted relief under this section and the period for which relief is granted.
(ii) The department shall reimburse local taxing jurisdictions for differences in amount due on account of such rate calculation errors occurring during the period in which relief is granted. Purchasers are liable for any uncollected amounts of tax. The department shall retain amounts collected from purchasers that have been reimbursed to local taxing jurisdictions under this subsection (5)(b)(ii).
[
2007 c 6 s 1501
;
2003 c 168 s 207
;
2001 c 320 s 11
;
2000 c 104 s 4
.]
NOTES:
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Effective date
—
2001 c 320:
See note following RCW 11.02.005
.
Findings
—
Intent
—
Effective date
—
2000 c 104:
See notes following RCW 82.14.055
.