S-499                 _______________________________________________

                                                   SENATE BILL NO. 3218

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Goltz, Zimmerman, Bauer and Saling

Read first time 1/21/85 and referred to Committee on Ways and Means.

AN ACT Relating to sales tax exemption; amending RCW 82.08.0269; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 36, chapter 37, Laws of 1980 and RCW 82.08.0269 are each amended to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales for use in states, territories and possessions of the United States which are not contiguous to any other state, but only when, as a necessary incident to the contract of sale, the seller delivers the subject matter of the sale to the purchaser or his designated agent at the usual receiving terminal of the carrier selected to transport the goods or other place designated by the purchaser, under such circumstances that it is reasonably certain that the goods will be transported directly to a destination in such noncontiguous states, territories and possessions.  Purchasers who will directly transport the goods sold to such destination shall apply to the department before each such sale for an exemption permit.  Permit applications shall require the applicant to sign a sworn statement that the goods purchased will be transported directly to a destination in a state, territory, or possession of the United States which is not contiguous to any other state, and shall contain such information as the department may require by rule.  The fee for an exemption permit is five dollars.

Any person making a fraudulent statement in order to obtain an exemption permit, or who makes tax exempt purchases by displaying a permit not issued by the department to that person, with the intent to violate this section shall be guilty of a misdemeanor punishable under RCW 9A.20.021.  Persons violating this section shall also be liable for the tax due on the purchase and shall be subject to a penalty not to exceed the amount of tax due on the purchase.

Any seller making a sale without collecting the tax must examine the exemption permit presented by the purchaser, identify the purchaser as the person to whom the permit was issued, and maintain records which shall show the permit number attributable to each nontaxable sale.  Any seller who makes sales without collecting the tax to a person who does not hold a valid permit and any seller who fails to maintain records of permit numbers as provided in this section shall be personally liable for the amount of tax due.