WSR 05-16-128

PROPOSED RULES

DEPARTMENT OF REVENUE


[ Filed August 3, 2005, 11:51 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-11-096.

Title of Rule and Other Identifying Information: WAC 458-20-193C Imports and exports -- Sales of good from or to persons in foreign countries.

Hearing Location(s): Capital Plaza Building, 4th Floor Executive Large Conference Room, 1025 Union Avenue S.E., Olympia, WA 98504, on September 14, 2005, at 10:00 a.m.

Date of Intended Adoption: September 21, 2005.

Submit Written Comments to: Gilbert Brewer, P.O. Box 47453, Olympia, WA 98504-7453, e-mail gilb@dor.wa.gov, fax (360) 586-5543, by September 14, 2005.

Assistance for Persons with Disabilities: Contact Sandy Davis at (360) 725-7499, no later than ten days before the hearing date. Deaf and hard of hearing individuals may call 1-800-451-7985 (TTY users).

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rule would repeal WAC 458-20-193C. In the absence of a rule specific to imports and exports, the department expects that those transactions will be governed by the principles of WAC 458-20-193 Inbound and outbound sales of tangible personal property, but invites comments on this issue. The department also invites comments on whether the withdrawal of this treatment of imports and exports should be applied retrospectively or prospectively only.

Reasons Supporting Proposal: Rule 193C reflects an outmoded view of the restrictions imposed by the import-export clause of the United States Constitution that is no longer supported by current United States Supreme Court jurisprudence or statutory provisions. It's continued presence invites confusion among taxpayers.

Statutory Authority for Adoption: RCW 82.32.300 and 82.01.060(2).

Statute Being Implemented: RCW 82.04.4286 and 82.08.0254.

Rule is necessary because of a federal court decision and state court decision: Michelin Tire Co. v. Wages, 427 U.S. 276 (1976); Department of Revenue of Washington v. Assoc. of Washington Stevedoring Cos., 435 U.S. 734 (1978); Itel Containers Int'l. Corp. v. Huddleston, 507 U.S. 60 (1993); and Coast Pacific Trading, Inc. v. Department of Revenue, 105 Wn.2d 912, 719 P.2d 541 (1986).

Name of Proponent: Department of Revenue, governmental.

Name of Agency Personnel Responsible for Drafting: Gilbert Brewer, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 570-6133; Implementation: Alan R. Lynn, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 570-6125; and Enforcement: Janis P. Bianchi, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 570-6147.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required because repeal of the rule does not impose any requirements or burdens upon small businesses that are not already required by statute.

A cost-benefit analysis is not required under RCW 34.05.328. This is an interpretive rule as defined in RCW 34.05.328.

August 3, 2005

Janis P. Bianchi, Manager

Interpretations and

Technical Advice Unit


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 458-20-193C Imports and exports -- Sales of goods from or to persons in foreign countries

Washington State Code Reviser's Office