reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-112 - Value of products

Current through Register Vol. 24-14, July 15, 2024
The term "value of products" includes the value of by-products,
				and except as provided herein, shall be determined by "gross proceeds of sales"
				whether such sales are at wholesale or at retail, to which shall be added all
				subsidies and bonuses received with respect to the extraction, manufacture, or
				sale thereof.
"The term 'gross proceeds of sales' means the value proceeding
				or accruing from the sale of tangible personal property . . . without any
				deduction on account of the cost of property sold, the cost of materials used,
				labor costs, interest, discount paid, delivery costs, taxes, or any other
				expense whatsoever paid or accrued and without any deduction on account of
				losses." (RCW 82.04.070.)
In the case of bona fide sales of products.
The
				law provides (RCW 82.04.450 ), that under the
				extracting and manufacturing classifications of the business and occupation tax
				the value of products extracted or manufactured shall be determined by the
				gross proceeds of sales in every instance in which a bona fide sale of such
				products is made, and whether sold at wholesale or at retail.
Sales to points outside the state.
In determining
				the value of products delivered to points outside the state there may be
				deducted from the gross proceeds of sales so much thereof as the taxpayer can
				show to be actual transportation costs from the point at which the shipment
				originates in this state to the point of delivery outside the state.
All other cases.
The law provides that where
				products extracted or manufactured are
(1) For commercial or industrial use (by the
			 extractor or manufacturer -- see WAC
			 458-20-134 ); or
(2) Transported out of the state, or to
			 another person without prior sale; or
(3) Sold under circumstances such that the
			 stated gross proceeds from the sale are not indicative of the true value of the
			 subject matter of the sale; the value shall correspond as nearly as possible to
			 the gross proceeds from other sales at comparable locations in this state of
			 similar products of like quality and character, in similar quantities, under
			 comparable conditions of sale, to comparable purchasers, and shall include
			 subsidies and bonuses.
In the absence of sales of similar products as a guide to
				value, such value may be determined upon a cost basis. In such cases, there
				shall be included every item of cost attributable to the particular article or
				article extracted or manufactured, including direct and indirect overhead
				costs.
Revised June 1, 1970.
Order ET 70-3, § 458-20-112 (Rule 112), filed 5/29/70,
				  effective 7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-116 - Sales and/or use of labels, name plates, tags, premiums, and advertising material

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section explains Washington's B&O and
			 retail sales tax applications to the sale of labels, name plates, tags, and
			 advertising material. It also gives tax reporting information to persons
			 offering premiums at reduced or no cost to customers.
(2)
Definitions.
For the
			 purposes of this section, the following definitions apply:
(a) "Labels," "name plates," and "tags" are
			 slips, generally made of paper or cloth, which are affixed to articles or
			 containers for identification or description.
(b) A "premium" is an item offered free of
			 charge or at a reduced price to prospective customers as an inducement to
			 buy.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-117 - Sales and/or use of dunnage

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains Washington's B&O tax, retail
			 sales tax, and use tax to the sale or use of dunnage.
(a) The term "dunnage" means any material
			 used for the purpose of protecting or holding in place cargo or freight during
			 transportation by any carrier of property, and which is not an integral part of
			 the carrier itself. Dunnage includes, but is not limited to, wood blocks,
			 stakes, separating strips, timber, double decks, false floors, door shields,
			 bulkheads, and other bracing. Dunnage generally does not remain with the cargo
			 that is being transported and will not be delivered to the person who will
			 ultimately receive the cargo. On the other hand, packing materials are
			 generally part of the total package containing the cargo and are ultimately
			 delivered to the customer as part of the cargo or merchandise.
(b) Persons selling dunnage to air, rail, or
			 water carriers operating in interstate or foreign commerce should also refer to
			 WAC 458-20-175. Persons selling or
			 purchasing packing materials should refer to 458-20-115 (Sales of packing
			 materials and containers).
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-119 - Sales by caterers and food service contractors

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains Washington's business and
			 occupation (B&O) tax and retail sales tax applications for sales by
			 caterers and food service contractors.
(a)
Examples.
This rule contains examples that identify a number of
			 facts and then state a conclusion. These examples should be used only as a
			 general guide. The tax results of other situations must be determined after a
			 review of all facts and circumstances.
(b)
Other rules that may apply.
The following rules may contain additional relevant information:
(i) WAC
			 458-20-107 Requirement to
			 separately state sales tax-Advertised prices including sales tax.
(ii) WAC
			 458-20-124 Restaurants, cocktail
			 bars, taverns and similar businesses.
(iii) WAC
			 458-20-166 Hotels, motels,
			 boarding houses, rooming houses, resorts, hostels, trailer camps, short-term
			 rentals and similar lodging businesses.
(iv) WAC
			 458-20-167 Educational
			 institutions, school districts, student organizations, and private
			 schools.
(v) WAC
			 458-20-168 Hospitals, nursing
			 homes, assisted living facilities, adult family homes and similar health care
			 facilities.
(vi) WAC
			 458-20-175 Persons engaged in the
			 business of operating as a private or common carrier by air, rail or water in
			 interstate or foreign commerce.
(vii) WAC
			 458-20-189 Sales to and by the
			 state of Washington and municipal corporations, including counties, cities,
			 towns, school districts, and fire districts.
(viii) WAC
			 458-20-190 Sales to and by the
			 United States and certain entities created by the United States-Doing business
			 on federal reservations-Sales to foreign governments.
(ix) WAC
			 458-20-244 Food and food
			 ingredients.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-120 - Sales of ice

Current through Register Vol. 24-14, July 15, 2024
Sales of ice to fishermen for the purpose of packing and
				preserving their fish during the trip from the fishing banks to their port of
				discharge are sales for consumption and are taxable under the retail sales
				tax.
Sales of ice to persons, other than railroad companies, for use
				in icing refrigerator cars are sales for consumption and are taxable under the
				retail sales tax.
The use of ice purchased or manufactured by interstate railroad
				companies for the purpose of icing within this state perishables or
				refrigerator cars or car cooling systems, is subject to use tax. (See WAC
				458-20-175.)
Sales of ice to persons who sell fish, fruit, vegetables and
				other commodities are sales for resale and not subject to the retail sales tax
				when such ice is used for packing during shipment and title thereto passes to
				the purchaser along with the property sold.
Sales of ice to persons operating restaurants, soda fountains
				and the like are sales for resale and are not subject to the retail sales tax
				when such ice is used exclusively as crushed ice in drinks sold by such
				persons.
Sales of ice to persons operating creameries, beer parlors,
				restaurants, soda fountains and the like are sales for consumption and are
				taxable under the retail sales tax when such ice is used primarily for the
				purpose of cooling food products and is not for resale to customers.
Revised May 1, 1949.
Order ET 70-3, § 458-20-120 (Rule 120), filed 5/29/70,
				  effective 7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-121 - Sales of heat or steam-Including production by cogeneration

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section provides tax reporting information to
			 persons who sell heat and/or steam. Because heat and steam are often the
			 product of a cogeneration facility, this section also provides tax information
			 for persons operating cogeneration facilities. Persons generating electrical
			 power should also refer to WAC
			 458-20-179
			 (Public utility tax).
(2)
Definitions.
(a) The term
			 "biomass fuel" means wood waste and other wood residuals, including forest
			 derived biomass, but does not include firewood or wood pellets. "Biomass fuel"
			 also includes partially organic by-products of pulp, paper, and wood
			 manufacturing processes.
(b) The
			 term "hog fuel" means wood waste and other wood residuals including forest
			 derived biomass. "Hog fuel" does not include firewood or wood
			 pellets.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-124 - Restaurants, cocktail bars, taverns and similar businesses

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains how Washington's business and
			 occupation (B&O) tax and retail sales tax apply to sales by restaurants,
			 cocktail bars, taverns, and similar businesses. It discusses sales of meals,
			 beverages, and foods at prices that include retail sales tax. This rule also
			 explains how discounted and promotional meals are taxed. Caterers and persons
			 who merely manage the operations of a restaurant or similar business should
			 refer to WAC
			 458-20-119 Sales by caterers and
			 food service contractors, to determine their tax liability.
(a)
Definition. Restaurants, cocktail
			 bars, and taverns.
The term "restaurants, cocktail bars, taverns, and
			 similar businesses" means every place where prepared foods and beverages are
			 sold and served to individuals, generally for consumption on the premises where
			 sold.
(b)
Examples.
This rule contains examples that identify a number of facts and then state a
			 conclusion. These examples should be used only as a general guide. The tax
			 results of other situations must be determined after a review of all facts and
			 circumstances.
(c)
Other
			 rules that may apply.
The following rules may contain other relevant
			 information:
(i) WAC
			 458-20-107 Requirement to
			 separately state sales tax-Advertised prices including sales tax.
(ii) WAC
			 458-20-119 Sales by caterers and
			 food service contractors.
(iii) WAC
			 458-20-131 Gambling
			 activities.
(iv) WAC
			 458-20-168 Hospitals, nursing
			 homes, assisted living facilities, adult family homes and similar health care
			 facilities.
(v) WAC
			 458-20-183 Recreational services
			 and activities.
(vi) WAC
			 458-20-187 Tax responsibility of
			 vending machine owners and operators.
(vii) WAC
			 458-20-189 Sales to and by the
			 state of Washington and municipal corporations, including counties, cities,
			 towns, school districts, and fire districts.
(viii) WAC
			 458-20-190 Sales to and by the
			 United States and certain entities created by the United States-Doing business
			 on federal reservations-Sales to foreign governments.
(ix) WAC
			 458-20-243 Litter tax.
(x) WAC
			 458-20-244 Food and food
			 ingredients.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-127 - Sales of newspapers, magazines and periodicals

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section
			 explains the application of the business and occupation (B&O) tax, retail
			 sales tax, and use tax to sales and/or use of newspapers, magazines, and
			 periodicals. The tax reporting information in the section is limited to persons
			 that purchase and resell these publications. The department of revenue
			 (department) has adopted other sections providing tax reporting information to
			 persons printing and/or publishing these publications and other printed
			 materials.
Persons printing and/or publishing newspapers, magazines, and
				periodicals should also refer to WAC
				458-20-143.
For information regarding the printing industry in general, see
				WAC 458-20-144.
Persons duplicating printed materials for others should also
				refer to WAC
				458-20-141.
For information regarding potential litter tax liability, see
				WAC 458-20-243.
(2)
General tax application.
This subsection explains the B&O tax and retail sales tax responsibilities
			 of persons selling newspapers, magazines, and periodicals to consumers, when
			 the seller is not also the printer or publisher of the publication. Refer to
			 subsection (4) of this section for information about tax reporting
			 responsibilities of persons selling through organizers, captains, or others
			 selling from house to house.
Where subscriptions or renewals of subscriptions are mailed
				directly by purchasers to publishers outside the state, the guidelines
				contained in WAC
				458-20-193 and
				458-20-221 apply to the
				obligation of sellers to collect retail sales or use tax.
(a)
Sales of printed magazines and
			 periodicals.
Sales of magazines and periodicals to consumers by persons
			 operating newsstands, book stores, department stores, drug stores and the like
			 are sales at retail and are subject to the retailing B&O tax and retail
			 sales tax. Refer to WAC
			 458-20-143 for the definition of
			 "periodical or magazine."
(b)
Magazines and periodicals sold as digital products.
Sales of
			 magazines and periodicals that are transferred electronically to the end user
			 are subject to the retailing B&O tax and retail sales tax regardless of how
			 they are accessed. For more information on the application of tax on digital
			 products, refer to
			 RCW
			 82.04.050,
			 82.04.192, and
			 82.04.257.
(c)
Sales of newspapers.
Sales
			 of printed newspapers to consumers by persons operating newsstands, book
			 stores, department stores, drug stores and the like are sales at retail and are
			 subject to the retailing B&O tax. Sales of newspapers are specifically
			 exempt from the retail sales tax per
			 RCW
			 82.08.0253. Refer to WAC
			 458-20-143 for the definition of
			 "newspaper."
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-128 - Real estate brokers and salesmen

Current through Register Vol. 24-14, July 15, 2024
Definitions
As used herein:
The terms "real estate broker" and "real estate salesman" mean,
				respectively, a person licensed as such under the provisions of
				chapter
				18.85 RCW.
Business and Occupation Tax
A real estate broker is engaged in business as an independent
				contractor and is taxable under the service and other activities classification
				upon the gross income of the business.
The measure of the tax on real estate commissions earned by the
				real estate broker shall be the gross commission earned by the particular real
				estate brokerage office including that portion of the commission paid to
				salesmen or associate brokers in the same office on a particular transaction:
				Provided, however, That where a real estate commission is divided between an
				originating brokerage office and a cooperating brokerage office on a particular
				transaction, each brokerage office shall pay the tax only upon their respective
				shares of said commission; and provided further, that where the brokerage
				office has paid the tax as provided herein, salesmen or associated brokers
				within the same brokerage office shall not be required to pay a similar tax
				upon the same transaction.
				RCW
				82.04.255.
Thus, with the exception of cooperating brokerage offices, no
				deduction is allowed for commissions, fees or salaries paid by a broker to
				another broker or salesman, nor for other expenses of doing business.
The term "gross income of the business" includes gross income
				from commissions, fees and other emoluments however designated which the agent
				receives or becomes entitled to receive, but does not include amounts held in
				trust for others. (See also WAC
				458-20-111, advances and
				reimbursements.) No deductions are allowed for dues, charges, and fees paid to
				multiple listing associations.
Real estate salesmen are presumed to be independent
				contractors. They are subject to the service and other activities
				classification of the business and occupation tax on gross income from real
				estate commissions and fees earned where the brokerage office at which the real
				estate salesman's license is posted has not paid the tax on the gross
				commission.
Statutory Authority:
				  RCW
				  82.32.300. 83-07-034 (Order ET 83-17), §
				  458-20-128, filed 3/15/83; Order ET 70-3, § 458-20-128 (Rule 128), filed
				  5/29/70, effective 7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-129 - Gasoline service stations

Current through Register Vol. 24-14, July 15, 2024
Gasoline Service Stations
Business and Occupation Tax
Retailing.
Persons operating gasoline service
				stations are taxable under the retailing classification upon the gross proceeds
				of sales of tangible personal property, from services rendered with respect to
				the cleaning or repair of such property, gross income from towing and gross
				income from automobile parking and storage. On computing tax there may be
				deducted from gross proceeds of sales the amount of state and federal gallonage
				tax on motor vehicle fuel included therein.
Retail Sales Tax
The retail sales tax applies upon the sale of tangible personal
				property (except vehicle fuel) on which the tax of either
				chapters
				82.36 or 82.38 RCW is paid
				and upon charges for towing, automobile parking and storage and the sale of
				services rendered with respect to the cleaning or repairing of tangible
				personal property.
Thus the tax applies upon the sale of tires, accessories, etc.,
				upon sales of labor and materials in respect to lubricating, greasing, tire
				changing, etc., and also upon washing, battery charging and repair work. (See
				also WAC 458-20-126.)
Order ET 73-1, § 458-20-129, filed 11/2/73; Order ET
				  70-3, § 458-20-129 (Rule 129), filed 5/29/70, effective
				  7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-132 - Automobile dealers/demonstrator and executive vehicles

Current through Register Vol. 24-14, July 15, 2024
(1) Introduction. This section accounts for
			 the unique practices of the retail automobile dealer's industry and reflects
			 administrative notice of the customs of this trade. The tax reporting formulas
			 explained in this rule represent a compromise of tax liabilities and offsetting
			 deductions. It recognizes that demonstrators and vehicles used by executives or
			 persons associated with a dealer are actually used for limited periods of time
			 without significantly affecting their marketability or retail selling value,
			 and that such used vehicles have a high trade-in value when returned to
			 inventory for sale.
(2)
			 Definitions. The following definitions apply to this section.
(a) The terms "demonstration" and
			 "demonstrator" mean the use of automobiles provided by dealers to their sales
			 staff, without charge, for any personal or business reason other than (or in
			 addition to) the mere display of such vehicles to prospective
			 purchasers.
(b) The term "display"
			 means the showing for sale of vehicles to prospective purchasers, at or near
			 the dealer's premises, including the short term test driving, operating, and
			 examining by prospective purchasers.
(c) The term "executive use vehicle" means
			 any vehicle from sales inventory, used by any person associated with the
			 automobile dealership for personal driving, other than for demonstration or
			 display purposes as defined above, when such person does not have a recent
			 model vehicle registered and licensed in that person's own name on which retail
			 sales tax was paid.
(d) The term
			 "recent model vehicle" refers to a car of the current model year or either of
			 the two preceding model years.
(e)
			 The terms "purchase price" and "total cost" mean the amount charged to the
			 dealer for the purchase of a vehicle and includes any additional charges for
			 accessories installed on the vehicle. If the vehicle was acquired through a
			 trade-in by a customer, these terms then mean the trade-in value given to the
			 customer by the dealer (with consideration of underallowances and
			 overallowances) as well as any costs of refurbishing and repairs in preparing
			 the vehicle for resale or use. These values will generally be the amounts shown
			 as the vehicle cost within the dealer's inventory records.
(f) The phrase "pickup truck" refers only to
			 trucks having a commercial pickup body rated at three-quarter ton capacity or
			 less.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-133 - Frozen food lockers

Current through Register Vol. 24-14, July 15, 2024
Business and Occupation Tax
Persons engaged in the business of renting frozen food lockers
				are taxable under the service and other business activities classification upon
				the gross income from rentals thereof.
When such persons also engage in the activities of curing,
				smoking, cutting or wrapping meat of and for consumers, or do any other act
				through which such meat is altered or improved, they become taxable under the
				retailing classification upon the gross charges made therefor.
Retail Sales Tax
The retail sales tax applies upon the charges made for curing,
				smoking, cutting or wrapping meat of and for consumers, or for any act through
				which such meat is altered or improved, and sellers are required to collect
				such tax from their customers.
The retail sales tax does not apply upon the charges made for
				the rental of frozen food lockers.
Issued May 1, 1949.
Order ET 70-3, § 458-20-133 (Rule 133), filed 5/29/70,
				  effective 7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-134 - Commercial or industrial use

Current through Register Vol. 24-14, July 15, 2024
(1)
Definitions.
(a) The term
			 "commercial or industrial use" means the following uses of products, including
			 by-products, by the same person that extracted or manufactured them:
(i) Any use as a consumer; and
(ii) Manufacturing of articles, substances,
			 or commodities. (RCW
			 82.04.130.)
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-135 - Extracting natural products

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains the application of the business
			 and occupation (B&O), retail sales, and use taxes to persons extracting
			 natural products. Persons extracting natural products often use the same
			 extracted products in a manufacturing process. This rule provides guidance for
			 determining when an extracting activity ends and the manufacturing activity
			 begins. In addition to all other taxes, commercial fishermen may be subject to
			 the enhanced food fish excise tax levied by chapter 82.27 RCW (Tax on enhanced
			 food fish).
Persons engaging in activities associated with timber harvest
				operations should refer to WAC
				458-20-13501 (Timber harvest
				operations). Persons engaged in a manufacturing activity should also refer to
				WAC 458-20-136 (Manufacturing,
				processing for hire, fabricating) and 458-20-13601 (Manufacturers and
				processors for hire-Sales and use tax exemptions for machinery and
				equipment).
(2)
Who is
			 an "extractor"?
RCW
			 82.04.100 defines the term "extractor" to
			 mean every person who, from the person's own land or from the land of another
			 under a right or license granted by lease or contract, either directly or by
			 contracting with others for the necessary labor or mechanical services, for
			 sale or for commercial or industrial use mines, quarries, takes or produces
			 coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral, or other
			 natural resource product. The term includes a person who fells, cuts, or takes
			 timber, Christmas trees other than plantation Christmas trees, or other natural
			 products. It also includes any person who takes fish, shellfish, or other sea
			 or inland water foods or products.
(a)
Persons excluded from the definition of "extractor."
The term
			 "extractor" does not include:
(i) Persons
			 performing under contract the necessary labor or mechanical services for others
			 (these persons are extractors for hire, see subsection (4) of this section);
			 or
(ii) Persons who are farmers as
			 defined in
			 RCW
			 82.04.213. Refer to WAC
			 458-20-209 and
			 458-20-210 for tax-reporting
			 information for farmers and persons selling property to or performing
			 horticultural services for farmers; or
(iii) Persons producing cannabis.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-13501 - Timber harvest operations

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Timber harvest operations generally consist of a
			 variety of different activities. These activities may be subject to different
			 tax rates or classifications under the business and occupation tax and public
			 utility tax, depending on the nature of the activity.
(a)
Scope of rule.
This rule
			 explains the application of the business and occupation (B&O), public
			 utility, retail sales, and use taxes to persons performing activities
			 associated with timber harvest operations. This rule explains how the public
			 utility tax deduction provided by
			 RCW
			 82.16.050 for the transportation of
			 commodities to an export facility applies to the transportation of logs. It
			 also explains how the B&O tax exemption provided by
			 RCW
			 82.04.333 for small timber harvesters
			 applies.
(b)
Additional
			 information sources for activities associated with timber harvest
			 operations.
In addition to the taxes addressed in this rule, the forest
			 excise and real estate excise taxes often apply to certain activities or sales
			 associated with timber harvest operations. Persons engaged in timber harvest
			 operations should refer to the following rules for additional information:
(i) WAC
			 458-20-135
			 Extracting natural products;
(ii)
			 WAC
			 458-20-136
			 Manufacturing, processing for hire, fabricating;
(iii) WAC
			 458-20-13601
			 Manufacturers and processors for hire-Sales and use tax exemption for machinery
			 and equipment;
(iv) Chapter 458-40
			 WAC Taxation of forest land and timber; and
(v) Chapter 458-61A WAC Real estate excise
			 tax.
(c)
Examples.
This rule contains examples that identify a number of
			 facts and then state a conclusion. The examples should be used only as a
			 general guide. The tax results of other situations must be determined after a
			 review of all the facts and circumstances.
(d)
Information regarding
			 short-rotation hardwoods.
Persons cultivating short-rotation hardwoods
			 are considered farmers. Refer to WAC
			 458-20-209
			 and
			 458-20-210
			 for tax-reporting information for farmers and persons selling property to or
			 performing horticultural services for farmers. "Short-rotation hardwoods" are
			 hardwood trees, such as, but not limited to, hybrid cottonwoods, cultivated by
			 agricultural methods in growing cycles shorter than fifteen years.
			 RCW
			 84.33.035.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-13501 - Timber harvest operations

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Timber harvest operations generally consist of a
			 variety of activities. Depending on the nature of the activity, different tax
			 types and tax rates may apply, such as the business and occupation (B&O)
			 tax, public utility tax (PUT), retail sales tax, use tax, real estate excise
			 tax (REET), and timber harvest excise tax (timber excise tax). See chapters
			 82.04, 82.08, 82.12, 82.16, 82.45, and 84.33 RCW.
(a)
Scope of rule.
This rule
			 explains the application of the B&O tax, PUT, retail sales, and use taxes
			 to persons performing activities associated with timber harvest operations,
			 including timber harvesters, manufacturers of timber or wood products,
			 extractors for hire, processors for hire, sellers of real property, and
			 consumers of tangible personal property typically used in timber harvest
			 operations. In addition, this rule explains how the PUT deduction provided by
			 RCW  82.16.050 for the transportation of commodities to an export facility
			 applies to the transportation of logs and provides details on how to apply the
			 B&O tax exemption for small timber harvesters.
(b)
Other rules that may be
			 relevant.
(i) Persons engaged in timber
			 harvest operations should refer to the following rules for additional
			 information:
(A) WAC 458-20-135 Extracting
			 natural products;
(B) WAC
			 458-20-136 Manufacturing, processing for hire, fabricating;
(C) WAC 458-20-13601 Manufacturers and
			 processors for hire-Sales and use tax exemption for machinery and
			 equipment.
(ii) Persons
			 engaged in timber harvesting activities may be subject to the timber excise tax
			 or REET. This rule does not cover either of those taxes in detail. For more
			 information on timber excise tax and REET, readers should refer to:
(A) Chapter 458-40 WAC Taxation of forest
			 land and timber; and
(B) Chapter
			 458-61A WAC Real estate excise tax.
(iii) Persons cultivating short-rotation
			 hardwoods are considered farmers. "Short-rotation hardwoods" are hardwood
			 trees, such as hybrid cottonwoods, cultivated by agricultural methods in
			 growing cycles shorter than 15 years. RCW  84.33.035. For tax-reporting
			 information for farmers and persons selling property to, or performing
			 horticultural service for, farmers, readers should refer to:
(A) WAC 458-20-209 Farming for hire and
			 horticultural services performed for farmers; and
(B) WAC 458-20-210 Sales of tangible personal
			 property for farming-Sales of agricultural products by farmers.
(c)
Examples.
This rule contains examples that identify a number of
			 facts and then state a conclusion. The examples should be used only as a
			 general guide. The tax results of other situations must be determined after a
			 review of all the facts and circumstances.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-136 - Manufacturing, processing for hire, fabricating

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains the application of the business
			 and occupation (B&O), retail sales, and use taxes to manufacturers. It
			 identifies the special tax classifications and rates that apply to specific
			 manufacturing activities. The law provides a retail sales and use tax exemption
			 for certain machinery and equipment (M&E) used by manufacturers. Refer to
			 RCW
			 82.08.02565,
			 82.12.02565, and WAC
			 458-20-13601 (Manufacturers and
			 processors for hire-Sales and use tax exemption for machinery and equipment)
			 for more information regarding this exemption. Effective June 12, 2014, chapter
			 140, Laws of 2014 (SB 6505), machinery and equipment used directly in the
			 manufacturing, research and development, or testing of cannabis, including
			 related services, are not eligible for the M&E retail sales and use tax
			 exemption. For purposes of this rule, " cannabis" is any product with a THC
			 concentration greater than .03 percent. Persons engaging in both extracting and
			 manufacturing activities should also refer to WAC
			 458-20-135 (Extracting natural
			 products) and 458-20-13501 (Timber harvest operations).
(2)
Manufacturing activities.
RCW
			 82.04.120 explains that the phrase "to
			 manufacture" embraces all activities of a commercial or industrial nature
			 wherein labor or skill is applied, by hand or machinery, to materials so that
			 as a result thereof a new, different, or useful substance or articles of
			 tangible personal property is produced for sale or commercial or industrial
			 use. The phrase includes the production or fabrication of special-made or
			 custom-made articles.
(a) "To manufacture"
			 includes, but is not limited to:
(i) The
			 production or fabrication of dental appliances, devices, restorations,
			 substitutes, or other dental laboratory products by a dental laboratory or
			 dental technician;
(ii) The
			 cutting, delimbing, and measuring of felled, cut, or taken trees;
(iii) The crushing and/or blending of rock,
			 sand, stone, gravel, or ore;
(iv)
			 The cleaning (removal of the head, fins, or viscera) of fish; and
(v) The production of compressed or liquefied
			 natural gas for use as transportation fuel as defined in
			 RCW
			 82.16.310.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-13601 - Manufacturers and processors for hire-Sales and use tax exemptions for machinery and equipment

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
(a) This rule
			 explains the retail sales and use tax exemptions provided by
			 RCW
			 82.08.02565 and
			 82.12.02565 for sales to or use by
			 manufacturers or processors for hire of machinery and equipment (M&E) used
			 directly in a manufacturing operation or research and development operation.
			 This rule explains the requirements that must be met to substantiate a claim of
			 exemption. For information regarding the sales and use tax deferral for
			 manufacturing and research/development activities in high unemployment
			 counties, refer to WAC
			 458-20-24001 and chapter 82.60
			 RCW. For the high technology business sales and use tax deferral refer to
			 chapter 82.63 RCW.
(b) Effective
			 June 12, 2014, the retail sales and use tax exemptions provided by
			 RCW
			 82.08.02565 and
			 82.12.02565 do not apply to:
(i) Sales of machinery and equipment used
			 directly in the manufacturing, research and development, or testing of
			 cannabis; and
(ii) Sales of or
			 charges made for labor and services rendered in respect to installing,
			 repairing, cleaning, altering, or improving such machinery and
			 equipment.
(c) Effective
			 August 1, 2015, an ineligible person, as defined in subsection (2)(e) of this
			 rule, does not qualify for the retail sales and use tax exemptions provided by
			 RCW
			 82.08.02565 and
			 82.12.02565, unless the taxpayer
			 first used the qualifying machinery and equipment in this state prior to August
			 1, 2015.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-138 - Personal services rendered to others

Current through Register Vol. 24-14, July 15, 2024
The term "personal services," as used herein, refers generally
				to the activity of rendering services as distinct from making sales of tangible
				personal property or of services which have been defined in the law as "sales"
				or "sales at retail." (See
				RCW
				82.04.040 and
				82.04.050.)
The following are illustrative of persons performing personal
				services which are within the scope of this rule: Attorneys, doctors, dentists,
				architects, engineers, public accountants, public stenographers, barbers,
				beauty shop operators. (See also WAC
				458-20-224.)
Business and Occupation Tax
Persons engaged in the business of rendering personal services
				to others are taxable under the service and other activities classification
				upon the gross income of such business.
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
The retail sales tax does not apply to the amount charged or
				received for the rendition of personal services to others, even though some
				tangible personal property in the form of materials and supplies is furnished
				or used in connection with such services.
Persons performing such services are consumers of all materials
				and supplies used in connection therewith and must pay the retail sales tax
				upon the purchase of such material and supplies.
If persons engaged in a personal service business sell articles
				of tangible personal property apart from the rendition of personal services,
				the retail sales tax must be collected upon the sale of such articles.
Revised June 1, 1970.
Order ET 70-3, § 458-20-138 (Rule 138), filed 5/29/70,
				  effective 7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-142 - Photographic equipment and supplies

Current through Register Vol. 24-14, July 15, 2024
Sales of tangible personal property by a photographic supply
				house to persons who purchase such property for personal consumption or use are
				subject to the retail sales tax. Illustrative of such sales are the
				following:
Photographic films, paper, chemicals, frames, repair parts for
				cameras and other equipment sold to customers for personal use.
X-ray materials and equipment sold to doctors, dentists,
				hospitals, dental and X-ray laboratories.
Equipment sold to photofinishers, portrait and commercial
				photographers and photoengravers such as cameras, lenses, backgrounds,
				graduates, trays, utensils, lamps, retouching dope, leads, pencils and sundry
				materials which do not become an ingredient or component part of the pictures
				produced for sale.
Photographic films, chemicals and equipment sold to a newspaper
				publisher.
Photographic films sold to portrait and commercial
				photographers for use in their business.
Sales of tangible personal property by a photographic supply
				house to persons who resell such property in the regular course of business or
				consume the same in producing for sale a new article of which such property is
				an ingredient or component, or a chemical used in processing the same, are not
				subject to the retail sales tax. Illustrative of such sales are the
				following:
Photographic films, photo mailers, cameras, art-corners, etc.,
				sold to a dealer or photographer for the purpose of resale;
Photographic paper, mounts, frames, adhesives, card board, oil
				and water colors, India ink sold to a photofinisher, portrait or commercial
				photographer or photoengraver to be used in producing photographic prints for
				sale.
Envelopes, paper and twine sold to a photographer or
				photofinisher for use in delivering photographic prints sold.
Chemicals, such as developing agents, fixing agents, etc., sold
				to a photofinisher, portrait or commercial photographer or photoengraver, which
				chemicals are used in producing pictures for sale.
The retail sales tax applies upon the charge made for repairing
				cameras and other equipment, the retouching or alteration of photographs or
				films, when done for consumers.
Statutory Authority:
				  RCW
				  82.32.300. 83-07-034 (Order ET 83-17), §
				  458-20-142, filed 3/15/83; Order ET 70-3, § 458-20-142 (Rule 142), filed
				  5/29/70, effective 7/1/70.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-143 - Printers and publishers of newspapers, magazines, and periodicals

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section explains the application of the
			 business and occupation (B&O), retail sales, and use taxes to printers
			 and/or publishers of newspapers, magazines, periodicals, and other printed
			 materials. The department of revenue (department) has adopted other sections
			 providing tax reporting information to persons printing, publishing, or selling
			 these publications and other printed materials.
* Persons selling newspapers, magazines, and periodicals that
				are not printed and/or published by the seller should also refer to WAC
				458-20-127;
* For information regarding the printing industry in general,
				see WAC
				458-20-144;
* For information regarding the tax-reporting responsibilities
				of persons selling direct mail or engaging in business as a mailing bureau, see
				WAC
				458-20-141;
* For information regarding the tax-reporting responsibilities
				of persons duplicating printed materials for others, see WAC
				458-20-141;
* For information regarding potential litter tax liability, see
				WAC
				458-20-243.
(2)
Definitions.
The following
			 definitions apply throughout this section:
(a)
"Newspaper."
(i) Effective July
			 1, 2008, "newspaper" means a publication issued regularly at stated intervals
			 at least twice a month and printed on newsprint in tabloid or broadsheet format
			 folded loosely together without stapling, glue, or any other binding of any
			 kind, including any supplement of a printed newspaper; and an electronic
			 version of a printed newspaper that:
* Shares content with the printed newspaper; and
* Is prominently identified by the same name as the printed
				newspaper or otherwise conspicuously indicates that it is a complement to the
				printed newspaper. See
				RCW
				82.04.214.
(ii) Prior to July 1, 2008, "newspaper" means
			 a publication issued regularly at stated intervals at least twice a month and
			 printed on newsprint in tabloid or broadsheet format folded loosely together
			 without stapling, glue, or any other binding of any kind.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-144 - Printing industry

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule discusses the taxability of the printing
			 industry. Readers may want to refer to other rules for additional information,
			 including:
(a) WAC 458-20-141 Duplicating
			 activities and mailing bureaus;
(b)
			 WAC 458-20-143 Printers and publishers of newspapers, magazines, and
			 periodicals;
(c) WAC 458-20-102
			 Reseller permits;
(d) WAC
			 458-20-13601 Manufacturers and processors for hire-Sales and use tax exemptions
			 for machinery and equipment.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-146 - National and state banks, mutual savings banks, savings and loan associations and other financial institutions

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains how Washington's business and
			 occupation (B&O) tax, retail sales tax, and use tax applies to banks,
			 savings and loan associations, and other financial institutions. Readers may
			 want to refer to other rules for additional information, including the
			 following:
(a) WAC
			 458-20-19404 Financial
			 institutions-Income apportionment - For periods beginning January 1,
			 2016.
(b) WAC
			 458-20-19404A Financial
			 institutions-Income apportionment - For the period June 1, 2010, through
			 December 31, 2015.
(c) WAC
			 458-20-19402 Single factor
			 receipts apportionment-Generally.
(d) WAC
			 458-20-19401 Minimum nexus
			 thresholds for apportionable activities and selling activities.
(e) WAC
			 458-20-106 Casual or isolated
			 sales-Business reorganizations.
(f)
			 WAC 458-20-102 Reseller
			 permits.
(g) WAC
			 458-20-178 Use tax and the use of
			 tangible personal property.
(h) WAC
			 458-20-199 Accounting
			 methods.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-14601 - Financial institutions - Income apportionment

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
(a) This section provides tax reporting
			 instructions for financial institutions doing business both inside and outside
			 the state of Washington, and applies to tax liability incurred through May 31,
			 2010. Chapter 23, Laws of 2010 sp. sess. (2ESSB 6143) changed the apportionment
			 reporting requirements for financial institutions effective June 1, 2010. Refer
			 to WAC 458-20-19404 (Financial
			 institutions -- Income apportionment) for tax liability incurred on and after
			 June 1, 2010.
Financial businesses that do not meet the definition of
				"financial institution" in subsection (3)(j) of this section and other
				businesses taxable under
				RCW
				82.04.290 should refer to WAC
				458-20-194 (Doing business inside
				and outside the state) for tax liability incurred on or before May 31,
				2010.
(b) Financial
			 institutions engaged in making interstate sales of tangible personal property
			 should also refer to WAC
			 458-20-193 (Inbound and outbound
			 interstate sales of tangible personal property).