H-3101.1  _______________________________________________

 

                          HOUSE BILL 2323

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By Representatives Thomas, DeBolt and Carrell

 

Prefiled 12/22/1999.  Read first time 01/10/2000.  Referred to Committee on Finance.

Changing the nonresident sales tax exemption to a refund.


    AN ACT Relating to sales tax exemptions and refunds for nonresidents; amending RCW 82.08.0273; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 82.08.0273 and 1993 c 444 s 1 are each amended to read as follows:

    (1) ((The tax levied by RCW 82.08.020 shall not apply to sales to)) Nonresidents of this state are eligible for an exemption in the form of a remittance of state and local sales tax paid on purchases of tangible personal property for use outside this state when the purchaser (a) is a bona fide resident of a state or possession or Province of Canada other than the state of Washington and such state, possession, or Province of Canada does not impose a retail sales tax or use tax of three percent or more or, if imposing such a tax, permits Washington residents exemption from otherwise taxable sales by reason of their residence, and (b) ((agrees, when requested,)) applies to the department for remittance of the tax paid.  In the application, the purchaser must agree to grant the department of revenue access to such records and other forms of verification at his or her place of residence to assure that such purchases are not first used substantially in the state of Washington.

    (2)(((a) Any person claiming exemption from retail sales tax under the provisions of this section must display proof of his or her current nonresident status as herein provided.

    (b) Acceptable proof of a nonresident person's status shall include one piece of identification such as a valid driver's license from the jurisdiction in which the out-of-state residency is claimed or a valid identification card which has a photograph of the holder and is issued by the out-of-state jurisdiction.  Identification under this subsection (2)(b) must show the holder's residential address and have as one of its legal purposes the establishment of residency in that out-of-state jurisdiction.

    (3) Nothing in this section requires the vendor to make tax exempt retail sales to nonresidents.  A vendor may choose to make sales to nonresidents, collect the sales tax, and remit the amount of sales tax collected to the state as otherwise provided by law.  If the vendor chooses to make a sale to a nonresident without collecting the sales tax, the vendor shall, in good faith, examine the proof of nonresidence, determine whether the proof is acceptable under subsection (2)(b) of this section, and maintain records for each nontaxable sale which shall show the type of proof accepted, including any identification numbers where appropriate, and the expiration date, if any.

    (4)(a))) Any person making fraudulent statements((, which includes the offer of fraudulent identification or fraudulently procured identification to a vendor, in order to purchase goods without paying retail sales tax)) to obtain a remittance of tax under this section shall be guilty of perjury.  Any person ((making tax exempt purchases under this section by displaying proof of identification not his or her own, or counterfeit identification, with intent to violate the provisions)) obtaining a remittance of tax in violation of this section((,)) shall be guilty of a misdemeanor and, in addition, shall be liable for the tax and subject to a penalty equal to the greater of one hundred dollars or the tax due on such purchases.

    (((b) Any vendor who makes sales without collecting the tax to a person who does not hold valid identification establishing out-of-state residency, and any vendor who fails to maintain records of sales to nonresidents as provided in this section, shall be personally liable for the amount of tax due.  Any vendor who makes sales without collecting the retail sales tax under this section and who has actual knowledge that the purchaser's proof of identification establishing out-of-state residency is fraudulent shall be guilty of a misdemeanor and, in addition, shall be liable for the tax and subject to a penalty equal to the greater of one thousand dollars or the tax due on such sales.  In addition, both the purchaser and the vendor shall be liable for any penalties and interest assessable under chapter 82.32 RCW.))

    (3) The state general fund shall bear the entire cost of remittances under this section, including remittances of taxes by local governments.

 

    NEW SECTION.  Sec. 2.  This act takes effect July 1, 2000.

 


                            --- END ---