WSR 02-15-185

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed July 24, 2002, 11:32 a.m. ]

Subject of Possible Rule Making: WAC 458-20-141 Duplicating ((industry)) activities and mailing bureaus.

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 458-20-141 addresses the B&O and retail sales tax reporting responsibilities of persons engaging in duplicating and mailing bureau activities. The department anticipates revising the rule to recognize legislation that has occurred subsequent to when the rule was last revised. For example, the rule provides incorrect tax reporting instructions to duplicators who both produce and sell products in this state. The tax reporting instructions need to be revised to explain the multiple activities tax credit (MATC) reporting requirements of RCW 82.04.440. Chapter 367, Laws of 2002, imposed a use tax on certain retail services. The rule needs to be revised to explain the tax implications as they apply to mailing bureau services.

The department is also reviewing whether the rule's current instructions concerning postage are consistent with current tax law. Currently, the rule explains that income attributable to postage costs is deductible from the measure of tax when a mailing bureau purchases postage for use in providing services to its customers. Additionally, the department is considering updating the current language and format of the rule to provide the information a more useful manner.

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 a 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