Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-159 - Consignees, bailees, factors, agents and auctioneers

Current through Register Vol. 24-14, July 15, 2024
A consignee, bailee, factor, agent or auctioneer, as used in
				this ruling, refers to one who has either actual or constructive possession of
				tangible personal property, the actual ownership of such property being in
				another, or one calling for bids on such property. The term "constructive
				possession" means possession of the power to pass title to tangible personal
				property of others.
Business and Occupation Tax
Retailing and wholesaling.
Every consignee,
				bailee, factor, agent or auctioneer having either actual or constructive
				possession of tangible personal property, or having possession of the documents
				of title thereto, with power to sell such tangible personal property in his or
				its own name and, actually so selling, shall be deemed the seller of such
				tangible personal property and taxable under the retailing or wholesaling
				classification of the business and occupation tax, depending upon the nature of
				the transactions. In such case the consignor, bailor, principal or owner shall
				be deemed a seller of such property to the consignee, bailee, factor or
				auctioneer and taxable as a wholesaler with respect to such sales.
The mere fact that consignee, bailee or factor makes a sale
				raises a presumption that such consignee, bailee or factor actually sold in his
				or its own name. This presumption is controlling unless rebutted by proof
				satisfactory to the department of revenue.
Agents and brokers.
Any person who claims to be
				acting merely as agent or broker in promoting sales for a principal or in
				making purchases for a buyer, will have such claim recognized only when the
				contract or agreement between such persons clearly establishes the relationship
				of principal and agent and when the following conditions are complied
				with:
(1) The books and records of the
			 broker or agent show the transactions were made in the name and for the account
			 of the principal, and show the name of the actual owner of the property for
			 whom the sale was made, or the actual buyer for whom the purchase was
			 made.
(2) The books and records
			 show the amount of gross sales, the amount of commissions and any other
			 incidental income derived by the broker or agent from such sales.
Service and other business activities.
Every
				consignee, bailee, factor, agent or auctioneer who makes a sale in the name of
				the actual owner, as agent of the actual owner, or who purchases as agent of
				the actual buyer, is taxable under the service and other business activities
				classification upon the gross income derived from such business.
Retail Sales Tax
Consignees, bailees, factors, agents or
				auctioneers.
Every consignee, bailee, factor, agent or auctioneer
				authorized, engaged or employed to sell or call for bids on tangible personal
				property belonging to another, and, so selling or calling, is deemed a seller,
				and shall collect the retail sales tax upon all retail sales made by him,
				except sales of certain farm property as hereinafter provided. The tax applies
				to all such sales even though the sales would have been exempt if made directly
				by the owner of the property sold.
It shall be the duty of every consignee, bailee, factor, agent
				or auctioneer to collect and remit the retail sales tax directly to the
				department with respect to all retail sales made or called by them: Provided,
				however, That if the owner of the property sold is engaged in the business of
				selling tangible property and the sale by the consignee, bailee, factor, agent
				or auctioneer has been made in the owner's name and the owner continues to
				engage in business, the owner may report and pay the tax collected directly to
				the department.
If the owner of the property sold discontinues business either
				before or at the time of the sale, the owner and the consignee, bailee, factor,
				agent or auctioneer will be held jointly responsible for payment of the
				tax.
The foregoing does not apply to auction sales made by or
				through auctioneers of tangible personal property (including household goods)
				which have been used in conducting a farm activity when the seller thereof is a
				farmer and the sale is held or conducted upon a farm, since such sales are
				specifically exempted from the retail sales tax.
Bailees will be relieved from liability for the collection of
				the sales tax from buyers in those cases where they merely receive a commission
				on the sale and the entire transaction is closed directly between the owner and
				the buyer, if such sales are reported to the department by such bailees, within
				ten days after receipt of the sales commission and such report shows the
				following:
(1) Name and address of
			 seller;
(2) Name and address of
			 buyer;
(3) Amount for which
			 sold;
(4) Approximate date of
			 sale;
(5) Description of property
			 sold.
Those failing to submit such report to the department within
				the time stated will be held responsible for payment of the sales tax to the
				state.
Note:
For tax liability of certain independent selling
							 agents for the collection of the use tax, see WAC
							 458-20-221.