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SUBSTITUTE
HOUSE BILL 2850
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AS
AMENDED BY THE SENATE
Passed
Legislature - 2000 Regular Session
State of Washington 56th
Legislature 2000 Regular Session
By
Read first time 02/07/2000.
Referred to Committee on .
Modifying
the tax treatment of linen and uniform supply services.
AN
ACT Relating to excise tax treatment of linen and uniform supply services;
amending RCW 82.14.020; creating a new section; and providing an effective
date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that linen and uniform supply services have been incorrectly
sited for tax purposes and as a result, some companies that perform laundry
activities outside the state of Washington have not been required to collect
retail sales taxes upon linen and uniform supply services provided to
Washington customers. This error in tax treatment provides an incentive for
businesses to locate their laundry functions out-of-state. In-state businesses
cannot compete if out-of-state competitors are not required to collect sales
tax.
The
purpose of this act is to clarify the taxable situs of linen and uniform supply
services.
Sec.
2. RCW
82.14.020 and 1997 c 201 s 1 are each amended to read as follows:
For
purposes of this chapter and chapter 82.08 RCW:
(1)
A retail sale consisting solely of the sale of tangible personal property shall
be deemed to have occurred at the retail outlet at or from which delivery is
made to the consumer((;)).
(2)
A retail sale consisting essentially of the performance of personal business or
professional services shall be deemed to have occurred at the place at which
such services were primarily performed, except that for the performance of a
tow truck service, as defined in RCW 46.55.010, the retail sale shall be deemed
to have occurred at the place of business of the operator of the tow truck
service((;)).
(3)
A retail sale consisting of the rental of tangible personal property shall be
deemed to have occurred (a) in the case of a rental involving periodic rental
payments, at the primary place of use by the lessee during the period covered
by each payment, or (b) in all other cases, at the place of first use by the
lessee((;)).
(4)
A retail sale within the scope of ((the second paragraph of)) RCW
82.04.050(2), and a retail sale of taxable personal property to be
installed by the seller shall be deemed to have occurred at the place where the
labor and services involved were primarily performed((;)).
(5)
A retail sale consisting of the providing to a consumer of telephone service,
as defined in RCW 82.04.065, other than a sale of tangible personal property
under subsection (1) of this section or a rental of tangible personal property
under subsection (3) of this section, shall be deemed to have occurred at the
situs of the telephone or other instrument through which the telephone service
is rendered((;)).
(6)
A retail sale of linen and uniform supply services shall be deemed to have
occurred at the place of delivery to the customer. "Linen and uniform
supply service" means the activity of providing customers with a supply of
clean linen, towels, uniforms, gowns, protective apparel, clean room apparel,
mats, rugs, and similar items, whether ownership of the item is in the person
operating the linen and uniform supply service or in the customer. The term
includes supply services operating their own cleaning establishments as well as
those contracting with other laundry or dry cleaning businesses.
(7)
"City" means a city or town((;)).
(((7)))
(8) The meaning ascribed to words and phrases in chapters 82.04, 82.08
and 82.12 RCW, as now or hereafter amended, insofar as applicable, shall have
full force and effect with respect to taxes imposed under authority of this
chapter((;)).
(((8)))
(9) "Taxable event" shall mean any retail sale, or any use of
an article of tangible personal property, upon which a state tax is imposed
pursuant to chapter 82.08 or 82.12 RCW, as they now exist or may hereafter be
amended: PROVIDED, HOWEVER, That the term shall not include a retail sale
taxable pursuant to RCW 82.08.150, as now or hereafter amended((;)).
(((9)))
(10) "Treasurer or other legal depository" shall mean the
treasurer or legal depository of a county or city.
NEW SECTION. Sec. 3. This
act takes effect July 1, 2000.
