WSR 02-15-184

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed July 24, 2002, 11:31 a.m. ]

Subject of Possible Rule Making: WAC 458-20-17803 Use tax on promotional materials.

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: The department adopted WAC 458-20-17803 as an emergency rule effective June 1, 2002. The department is now initiating the rule-making process for the purpose of adopting a permanent WAC 458-20-17803.

WAC 458-20-17803 implements RCW 82.12.010, 82.12.020, and chapter 367, Laws of 2002, to explain how use tax applies when persons distribute or cause the distribution of tangible personal property, except newspapers, the primary purpose of which is to promote the sale of products or services. This rule explains what are considered to be promotional materials, who is liable for the use tax, what the measure of tax is, and how to determine the appropriate local use tax rate/jurisdiction.

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, e-mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary discussion draft of possible new or revised rule(s) is available upon request. Written comments on and/or requests for copies of the draft may be directed to JoAnne Gordon, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6121, e-mail joanneg@dor.wa.gov, fax (360) 664-0693.

Date and Location of Public Meeting: Capital Plaza Building, 4th Floor Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on August 20, 2002, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TTY 1-800-451-7985 or (360) 570-6175.

July 24, 2002

Alan R. Lynn, Rules Coordinator

Legislation and Policy Division

Washington State Code Reviser's Office