WSR 04-03-101

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed January 20, 2004, 4:14 p.m. ]

Subject of Possible Rule Making: WAC 458-20-186 Tax on cigarettes and 458-20-18601 Wholesale and retail cigarette vendor licenses.

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

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: WAC 458-20-186 (Rule 186) provides tax-reporting information to persons who sell, use, consume, handle, possess, or distribute cigarettes. The rule explains who is liable for the tax, how and when the cigarette tax imposed by chapter 82.24 RCW is to be paid, and the record-keeping requirements. WAC 458-20-18601 (Rule 18601) explains the application process for wholesale and retail cigarette vendor licenses. It includes references to statutory fees, bonding requirements, and explains the conditions for and process of application for a reinstatement of a license following a revocation under the Administrative Procedure Act.

The department anticipates revising Rule 186 to update existing information and incorporate legislative amendments to chapter 82.24 RCW. The department plans to update information now found in Rule 18601, clarify that cigarette wholesalers may sell only to licensed retailers and must post the statutory bond prior to commencing sales, clarify that retailers may purchase only from licensed wholesalers, and explain the responsibilities of persons making "delivery sales" into this state, as codified in chapter 70.155 RCW. The department anticipates consolidating this information into Rule 186 and repealing Rule 18601.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: While the Department of Revenue has the exclusive authority to administer the cigarette tax program, the Liquor Control Board has primary authority for enforcement of the cigarette tax laws. The department has and will continue to consult with the Liquor Control Board during any rule-making activity.

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 Margaret Partlow, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6123, e-mail MargaretPa@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 March 2, 2004, 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) 725-7499.

January 20, 2004

Alan R. Lynn

Rules Coordinator

Legislation and Policy Division

Legislature Code Reviser 

Register

Washington State Code Reviser's Office