AN ACT Relating to use
tax on tangible personal property temporarily used in this state by a person
engaged in business outside this state, and property purchased, extracted,
produced, or manufactured outside this state; amending RCW 82.12.020;
reenacting and amending RCW 82.12.010; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 82.12.010 and 1985 c
222 s 1 and 1985 c 132 s 1 are each reenacted and amended to read as follows:
For the purposes of this
chapter:
(1)(a)
"Value of the article used" shall mean the consideration, whether
money, credit, rights, or other property except trade-in property of like kind,
expressed in terms of money, paid or given or contracted to be paid or given by
the purchaser to the seller for the article of tangible personal property, the
use of which is taxable under this chapter. The term includes, in addition to
the consideration paid or given or contracted to be paid or given, the amount
of any tariff or duty paid with respect to the importation of the article
used. In case the article used is acquired by lease or by gift or is
extracted, produced, or manufactured by the person using the same or is sold
under conditions wherein the purchase price does not represent the true value
thereof, the value of the article used shall be determined as nearly as
possible according to the retail selling price at place of use of similar
products of like quality and character under such rules ((and regulations))
as the department of revenue may prescribe.
(b) In case the
articles used are acquired by bailment, the value of the use of the articles so
used shall be in an amount representing a reasonable rental for the use of the
articles so bailed, determined as nearly as possible according to the value of
such use at the places of use of similar products of like quality and character
under such rules ((and regulations)) as the department of revenue may
prescribe((: PROVIDED, That)). In case any such articles of
tangible personal property are used in respect to the construction, repairing,
decorating, or improving of, and which become or are to become an ingredient or
component of, new or existing buildings or other structures under, upon, or
above real property of or for the United States, any instrumentality thereof,
or a county or city housing authority created pursuant to chapter 35.82 RCW,
including the installing or attaching of any such articles therein or thereto,
whether or not such personal property becomes a part of the realty by virtue of
installation, then the value of the use of such articles so used shall be
determined according to the retail selling price of such articles, or in the
absence of such a selling price, as nearly as possible according to the retail
selling price at place of use of similar products of like quality and character
or, in the absence of either of these selling price measures, such value may be
determined upon a cost basis, in any event under such rules ((and
regulations)) as the department of revenue may prescribe.
(c) In the case
of articles owned by a user engaged in business outside the state which are
brought into the state for no more than ((ninety)) one hundred eighty
days in any period of three hundred sixty-five consecutive days and which are
temporarily used for business purposes by the person in this state, the value
of the article used shall be an amount representing a reasonable rental for the
use of the articles, unless the person has paid tax under this chapter or
chapter 82.08 RCW upon the full value of the article used, as defined in ((the
first paragraph)) (a) of this subsection.
(d) In the case
of articles manufactured or produced by the user and used in the manufacture or
production of products sold or to be sold to the department of defense of the
United States, the value of the articles used shall be determined according to
the value of the ingredients of such articles.
(e) In the case
of an article manufactured or produced for purposes of serving as a prototype
for the development of a new or improved product, the value of the article used
shall be determined by: (((a))) (i) The retail selling price of
such new or improved product when first offered for sale; or (((b))) (ii)
the value of materials incorporated into the prototype in cases in which the
new or improved product is not offered for sale((.));
(2) "Use,"
"used," "using," or "put to use" shall have their
ordinary meaning, and shall mean the first act within this state by which the
taxpayer takes or assumes dominion or control over the article of tangible
personal property (as a consumer), and include installation, storage,
withdrawal from storage, or any other act preparatory to subsequent actual use
or consumption within this state;
(3) "Taxpayer"
and "purchaser" include all persons included within the meaning of
the word "buyer" and the word "consumer" as defined in
chapters 82.04 and 82.08 RCW;
(4) "Retailer"
means every seller as defined in RCW 82.08.010 and every person engaged in the
business of selling tangible personal property at retail and every person
required to collect from purchasers the tax imposed under this chapter;
(5) The meaning ascribed
to words and phrases in chapters 82.04 and 82.08 RCW, insofar as applicable,
shall have full force and effect with respect to taxes imposed under the
provisions of this chapter. "Consumer," in addition to the meaning
ascribed to it in chapters 82.04 and 82.08 RCW insofar as applicable, shall
also mean any person who distributes or displays, or causes to be distributed
or displayed, any article of tangible personal property, except newspapers, the
primary purpose of which is to promote the sale of products or services.
Sec. 2. RCW 82.12.020 and 1983 c 7
s 7 are each amended to read as follows:
(1) There is
hereby levied and there shall be collected from every person in this state a
tax or excise for the privilege of using within this state as a consumer any
article of tangible personal property purchased at retail, or acquired by
lease, gift, repossession, or bailment, or extracted or produced or
manufactured by the person so using the same, or otherwise furnished to a
person engaged in any business taxable under RCW 82.04.280((, subsections))
(2) or (7). ((This tax will not apply with respect to the use of any
article of tangible personal property purchased, extracted, produced or
manufactured outside this state until the transportation of such article has
finally ended or until such article has become commingled with the general mass
of property in this state.))
(2) This tax
shall apply to the use of every article of tangible personal property,
including property acquired at a casual or isolated sale, and including
byproducts used by the manufacturer thereof, except as hereinafter provided,
irrespective of whether the article or similar articles are manufactured or are
available for purchase within this state.
(3) Except as
provided in RCW 82.12.0252, payment by one purchaser or user of tangible
personal property of the tax imposed by chapter 82.08 or 82.12 RCW shall not
have the effect of exempting any other purchaser or user of the same property
from the taxes imposed by such chapters.
(4) The tax shall
be levied and collected in an amount equal to the value of the article used by
the taxpayer multiplied by the rate in effect for the retail sales tax under
RCW 82.08.020((, as now or hereafter amended, in the county in which the
article is used)).
NEW
SECTION. Sec. 3. This act shall take effect
July 1, 1994.
