WSR 13-15-146

PREPROPOSAL STATEMENT OF INQUIRY

[Filed July 23, 2013, 1:56 p.m.]

Subject of Possible Rule Making: WAC 458-20-241 Radio and television broadcasters.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300, 82.01.060(2), and 82.04.280.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: WAC 458-20-241 (Rule 241) explains the B&O, retail sales, and use tax reporting responsibilities of radio and television broadcasters. This includes a B&O tax deduction provided for certain radio and television broadcasting revenues provided in RCW 82.04.280. The statute authorizes a deduction based on either: (1) A standard deduction based on information reported by the Federal Communications Commission (FCC); or (2) itemization by the individual broadcasting station.

Rule 241 currently contains language recognizing that the FCC no longer publishes the information, and explains that the department will authorize a standard deduction if the broadcasting industry provides such information to the department for verification. The joint legislative audit and review committee (JLARC) reviewed this deduction, and the department's rule, and recommended that the department conform the rule to comply with the statute as written. The department is considering rule making to amend the rule consistent with the JLARC recommendation.

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

Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule making or giving oral testimony at the public meeting or public hearing.

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 to Armikka Bryant, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail ArmikkaB@dor.wa.gov. Please provide comments by August 15, 2013.

July 23, 2013

Alan R. Lynn

Assistant Director