WSR 08-04-049

INTERPRETIVE STATEMENT

DEPARTMENT OF REVENUE


[ Filed January 31, 2008, 3:07 p.m. ]


ISSUANCE OF INTERPRETIVE STATEMENT


     The department of revenue has issued Excise Tax Advisory 2014.08.193 Sales to Nonresidents of Jurisdictions Imposing a Sales Tax of Less than Three Percent (ETA 2014).

     RCW 82.08.0273 provides a retail sales tax exemption for sales of tangible personal property to certain nonresidents of Washington. ETA 2014 identifies the states, possessions, and provinces of Canada whose residents are eligible for this exemption. It provides examples of sales that are and are not eligible. This advisory also explains the seller's responsibility to examine proof of nonresidency and document the tax-exempt nature of a sale.

     The advisory has been revised to remove Puerto Rico from the list of states, possessions, and provinces of Canada whose residents are eligible for this exemption. Puerto Rico now imposes a retail sales tax of three percent or more (the statutory threshold). Language has been added to explain that documentation maintained by the seller to substantiate a tax exempt sale must include the buyer's name.

     A copy of this document is available via the internet at http://dor.wa.gov/content/FindALawOrRule/ETA/default.aspx or a request for copies may be directed to Roseanna Hodson, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 570-6119, fax (360) 586-0127.

Alan R. Lynn

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