PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: WAC 458-20-247 Trade-ins, selling price, sellers' tax measures.
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: RCW 82.08.010(1) defines "selling price" for the purposes of the retail sales tax to be the total consideration, except trade-in property of like kind, delivered by the buyer to the seller. RCW 82.12.010(1) provides the same trade-in exclusion for use tax purposes. Rule 247 explains how the trade-in exclusion applies. The rule provides pertinent definitions, examples of what qualifies as like-kind property, and explains the record-keeping requirements of sellers accepting trade-in property.
The department anticipates revising to Rule 247 to clarify how the trade-in exclusion applies when consignment property is being purchased.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Department of Licensing administers the registration and licensing requirements of motor vehicles and vessels, and licensing agents often are required to collect use tax when a motor vehicle or trailer is registered. The Department of Revenue will be kept informed of and asked to comment on any proposed changes to Rule 247.
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 discussion draft of potential changes to the rule will be available upon request after January 20, 2000. Written comments on and/or requests for copies of the rule may be directed to Alan R. Lynn, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 586-9040, fax (360) 664-0693, e-mail alanl@dor.wa.gov.
Location and Date of Public Meeting: Evergreen Plaza Building, 711 Capitol Way South, 2nd Floor Conference Room, Olympia, WA, at 9:30 a.m. on February 1, 2000.
Assistance for Persons with Disabilities: Contact Ginny Dale no later than ten days before the hearing date, TDD 1-800-451-7985, or (360) 586-0721.
December 17, 1999
Claire Hesselholt
Rules Manager
Legislation and Policy Division