Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-139 - Trade shops - Printing plate makers, typesetters, and trade binderies

Current through Register Vol. 24-14, July 15, 2024
The term "printing plate makers" includes, among others,
				photoengravers, electrotypers, stereotypers, and lithographic plate
				makers.
Business and Occupation Tax
Printing plate makers, typesetters and trade binderies
				(referred to in the trade as "trade shops") are primarily engaged in the
				business of altering or improving tangible personal property owned by them for
				sale or altering or improving tangible personal property owned by their
				customers. In either case the gross proceeds (including the value of any
				property exchanged by the customer in kind) from sales of, or services rendered
				to, plates, mats, engravings, type, etc., which are delivered in this state are
				taxable under retailing if the sale is to a "consumer" or wholesaling-all
				others if the sale is to one who will resell the property in the regular course
				of business without intervening "use." (See WAC
				458-20-102A Resale certificates
				and WAC 458-20-102 Reseller permits.)
				Neither of these classifications is applicable however, if the article sold is
				delivered to an out-of-state customer at an out-of-state point or if an article
				is produced for commercial or industrial use (see WAC
				458-20-134 ). In these cases tax
				is due under the manufacturing classification on the "value of
				products."
Retail Sales Tax
Sales to the printing industry and others of tangible personal
				property, or of services of altering or improving tangible personal property,
				by printing plate makers, typesetters, and trade binderies are sales at retail
				and subject to the retail sales tax unless the purchaser resells the article in
				the regular course of business without any intervening "use." For example, a
				trade shop must collect and account for the retail sales tax where a printing
				plate is sold to a printer who uses the plate to produce copy for a customer,
				even though he subsequently sells and delivers both the plate and the copy to
				the customer. In this situation the printer has made "intervening use" of the
				plate as a printing tool and is a "consumer" liable for payment of the retail
				sales tax to the trade shop.
Sales of plates, engravings, etc., to advertising agencies are
				retail sales and subject to the retail sales tax.
Sales by supply houses to trade shops of metal or other
				materials becoming a component part of an article produced for sale are not
				subject to the retail sales tax. As evidence of this, trade shops are required
				to furnish their vendors resale certificates for purchases made before January
				1, 2010, or reseller permits for purchases made on or after January 1, 2010, to
				document the wholesale nature of any purchase as provided in WAC
				458-20-102A (Resale certificates)
				and WAC 458-20-102 (Reseller permits). On
				the other hand, sales to trade shops of items for use such as machinery,
				equipment, tools, and other articles or materials, including chemicals which
				are used in the production of plates, mats, engravings, type, etc., are retail
				sales subject to the retail sales tax.
Statutory Authority:
				  RCW
				  82.32.300,
				  82.01.060(2),
				  chapters
				  82.04,
				  82.08,
				  82.12 and
				  82.32 RCW. 10-06-069, §
				  458-20-139, filed 2/25/10, effective 3/28/10; Order ET 70-3, § 458-20-139
				  (Rule 139), filed 5/29/70, effective
				  7/1/70.