INTERPRETIVE STATEMENT
The Department of Revenue has issued the following Excise Tax Advisory (ETA): ETA 2022.08.257 Distinguishing Warranties and Maintenance Agreements.
The tax consequences of selling extended warranties and maintenance agreements are generally different. This excise tax bulletin clarifies the distinction between warranties and maintenance agreements as stated in WAC 458-20-257 (Rule 257). It clarifies the separate charge provision of Rule 257 (2)(b)(i). This ETA uses the example of computer hardware and software, but its principles apply to all warranties and maintenance agreements.
A copy of this document is available via the internet at http://www.dor.wa.gov/content/laws/eta/eta.aspx or a request for copies may be directed to Roseanna Hodson, Interpretations and Technical Advice Unit, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 570-6119, fax (360) 586-5543.
Alan R. Lynn
Rules Coordinator