WSR 98-05-031

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE

[Filed February 10, 1998, 9:16 a.m.]

Subject of Possible Rule Making: WAC 458-20-183 Amusement and recreation activities and businesses.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule needs to be updated to incorporate provisions of chapter 148, Laws of 1996. The rule should be revised to explain that "daytrips for sightseeing purposes" are now considered amusement and recreation services subject to the retail sales tax under RCW 82.04.050 (3)(a); resellers of amusement and recreation activities may now purchase these activities at wholesale; and use tax now applies to previously untaxed (use tax) amusement and recreation activities.

In addition, several petitions to amend WAC 458-20-183 have been granted by the Department of Revenue. The petitions objected to provisions in the rule regarding the method of determining the taxable portion of dues received by organizations providing amusement and recreation activities. The department solicits comments on what changes should be made, and why.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments should be submitted by April 15, 1998. After that date, the department will evaluate the comments and prepare a draft revision of the rule. The draft revision will be circulated to interested parties. Written comments may be submitted by mail, FAX, or e-mail. Written comments may be directed to Greg Potegal, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 753-1971, FAX (360) 664-0693, e-mail gregp@dor.wa.gov.

February 9, 1998

Russell W. Brubaker