WSR 02-04-054

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed January 30, 2002, 1:37 p.m. ]

Subject of Possible Rule Making: WAC 458-20-151 Dentists, dental laboratories and physicians.

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: WAC 458-20-151 (Rule 151) provides tax-reporting information for dentists, dental laboratories, and physicians. This rule needs to be amended to reflect a change in the tax reporting responsibilities of dental laboratories and dental technicians as a result of chapter 168, Laws of 1998. That legislation amended the term "manufacturer" in RCW 82.04.120 to include the production or fabrication of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician. Chapter 168, Laws of 1998 also provided sales and use tax exemptions for dental appliances, devices, restorations, and substitutes, and the components thereof, including but not limited to full and partial dentures, crowns, inlays, fillings, braces, and retainers. This information will also be incorporated into Rule 151. The department is also considering expanding the scope of the rule to include health care providers licensed under Title 18 RCW. As a result, Rule 151 would provide guidance to more taxpayers.

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 may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Mark Mullin, Tax Policy Specialist, Legislation and Policy Division, Department of Revenue, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6112, fax (360) 664-0693, e-mail MarkM@dor.wa.gov.

Location and Date of Public Meeting: 1:30 p.m. on March 12, 2002, Capital Plaza Building, 4th Floor Large Conference Room, 1025 Union Avenue S.E., Olympia, WA.

Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TDD 1-800-451-7985 or (360) 570-6182.

January 30, 2002

Claire Hesselholt, Rules Manager

Legislation and Policy Division

Washington State Code Reviser's Office