Title of Rule: Repealing WAC 458-20-231 Tax on internal distribution.
Purpose: This rule explains the application of the B&O tax imposed on transfers of tangible personal property from a central location to retail outlets where there is no change of ownership.
Statutory Authority for Adoption: RCW 82.32.300 and 82.01.060(2).
Statute Being Implemented: RCW 82.04.270.
Summary: WAC 458-20-231 explains the application of the B&O tax on internal transfers of tangible personal property from a warehouse or other central location where no change in ownership of the goods occurs. This rule explains that this tax was repealed effective July 1, 1998, by chapter 329, Laws of 1998.
Reasons Supporting Proposal: This information is no longer needed because this tax does not apply to any period within the statutory claim period for refunds and/or assessments.
Name of Agency Personnel Responsible for Drafting: JoAnne Gordon, 1025 Union Avenue S.E., Suite #400, Olympia, WA, (360) 570-6121; Implementation: Alan Lynn, 1025 Union Avenue S.E., Suite #400, Olympia, WA, (360) 570-6125; and Enforcement: Russell Brubaker, 1025 Union Avenue S.E., Suite #400, Olympia, WA, (360) 570-6131.
Name of Proponent: Department of Revenue, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: WAC 458-20-231 explains the application of the B&O tax on internal transfers of tangible personal property that was imposed by RCW 82.04.270. This tax, commonly referred to as the "internal distributions tax" applied to persons distributing articles of tangible personal property owned by them from their own warehouse or other central location in this state to two or more of their own retail stores or outlets in this state.
The rule currently explains that the internal distributions tax was repealed by chapter 329, Laws of 1998, and does not apply on or after July 1, 1998. Thus, the period during which this tax applied is now outside the statutory claim period provided in RCW 82.32.050. The department proposes to repeal Rule 231 at this time because the information is no longer needed.
Proposal Changes the Following Existing Rules: This
rule-making action proposes to repeal WAC 458-20-231 as
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THE USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO JoAnne Gordon, Tax Policy Specialist, Legislation and Policy Division, Division of Revenue, P.O. Box 47467, Olympia, WA 98504-7467 , AND RECEIVED BY April 7, 2003.
January 27, 2003
Alan R. Lynn
Legislation and Policy Division