Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-173 - Installing, cleaning, repairing or otherwise altering or improving personal property of consumers

Current through Register Vol. 24-14, July 15, 2024
Business and Occupation Tax
Retailing.
Persons installing, cleaning,
				decorating, beautifying, repairing or otherwise altering or improving tangible
				personal property of consumers or for consumers are taxable under the retailing
				classification upon the gross proceeds received from sales of tangible personal
				property and the rendition of services.
Wholesaling.
Persons who sell tangible personal
				property to, or render any of the above services for others than consumers, are
				taxable under the wholesaling classification upon the gross proceeds of sales
				received.
There must be included within gross amounts reported for tax
				all fees for services rendered and all charges recovered for expenses incurred
				in connection therewith, such as transportation costs, hotel, restaurant,
				telephone and telegraph charges, etc.
Retail Sales Tax
Persons engaged in the business of installing, cleaning,
				decorating, beautifying, repairing or otherwise altering or improving tangible
				personal property of consumers or for consumers are required to collect the
				retail sales tax upon the total charge made for the rendition of such services,
				even though no tangible personal property in the form of materials or supplies
				is sold or used in connection with such services. Where tangible personal
				property in the form of materials and supplies is sold or used in connection
				with such services, the retail sales tax applies to the total charges made for
				the sale of the materials and supplies and the services rendered in connection
				therewith.
The following are illustrative of services upon which the
				retail sales tax applies to the total charge made to consumers:
Laundering, dyeing and cleaning;
Automobile repairing, washing and painting;
Boat repairing (see WAC
				458-20-175 and
				458-20-176 for certain
				exemptions); shoe repairing and shining;
Altering or repairing wearing apparel.
In general, the repairing of any personal property, such as
				radios, refrigerators, machines, watches and jewelry and other articles.
The retail sales tax does not apply to sales of materials which
				are resold as a part of the articles of tangible personal property being
				repaired, altered or improved. Therefore, for buyers giving a resale
				certificate for purchases made before January 1, 2010, or a reseller permit for
				purchases made on or after January 1, 2010, to sellers to document the
				wholesale nature of any sale as provided in WAC
				458-20-102A (Resale certificates)
				and WAC 458-20-102 (Reseller permits),
				the retail sales tax will not apply to purchases such as:
(1) Parts or paint by an automotive
			 repairman;
(2) Lumber, chandlery,
			 etc., by a boat repairman;
(3) Shoe
			 findings, thread, nails, polish and dyes by a shoe repairman;
(4) Solder, wire, condensers, etc., by a
			 radio or television repairman.
Even though resale certificates are no longer used after
				December 31, 2009, they must be kept on file by the seller for five years from
				the date of last use or December 31, 2014.
On the other hand the retail sales tax does apply to the
				purchase of all other supplies which may be consumed and utilized by such
				persons in the rendition of such services, such as fuel, lubricant, machines,
				hand tools, stationery and other supplies and equipment.
REPAIRS FOR OUT-OF-STATE PERSONS. Persons residing outside this
				state may ship into this state articles of tangible personal property for the
				purpose of having the articles repaired, cleaned, or otherwise altered, and
				then returned to them. The retail sales tax is not applicable to the charge
				made for labor and/or materials, provided the seller, as a requirement of the
				agreement, delivers the property to the purchaser at a point outside this state
				or delivers the property to a common or bona fide private carrier consigned to
				the purchaser at a point outside this state. Proof of exempt sales will be the
				same as that required for sales of tangible personal property in interstate
				commerce. See WAC
				458-20-193. No deduction is
				allowed, however, under the business and occupation tax.
For taxability of warranties and maintenance agreements, see
				WAC 458-20-257.
Statutory Authority:
				  RCW
				  82.32.300,
				  82.01.060(2),
				  chapters
				  82.04,
				  82.08,
				  82.12 and
				  82.32 RCW. 10-06-070, §
				  458-20-173, filed 2/25/10, effective 3/28/10. Statutory Authority:
				  RCW
				  82.32.300. 83-07-033 (Order ET 83-16), §
				  458-20-173, filed 3/15/83; Order ET 70-3, § 458-20-173 (Rule 173), filed
				  5/29/70, effective 7/1/70.