PERMANENT RULES
Effective Date of Rule: Thirty-one days after filing.
Purpose: WAC 458-20-107 (Rule 107) explains the statutory requirement that retail sales tax must be separately stated from the selling price on any instrument of sale. Rule 107, as revised, no longer contains the definition of "selling price" as it is not needed for the subject matter of the rule; in addition the definition cited language from a previous version of the statute (RCW 82.08.010). The reference to WAC 458-20-119 Sales of meals, for information regarding the requirement for separately stating retail sales tax by a restaurant with a Class H liquor license has been replaced with a reference to WAC 458-20-124 Restaurants, cocktail bars, taverns and similar businesses.
The reference to WAC 458-20-257 Warranties and maintenance agreements, has been removed as not necessary.
Citation of Existing Rules Affected by this Order: Amending WAC 458-20-107 Requirement to separately state sales tax -- Advertised prices including sales tax.
Statutory Authority for Adoption: RCW 82.32.300 and 82.01.060(2).
Other Authority: RCW 82.08.050.
Adopted under notice filed as WSR 08-08-072 on March 31, 2008.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
Date Adopted: June 20, 2008.
Janis P. Bianchi
Assistant Director
Interpretations and
Technical Advice Division
OTS-1412.2
AMENDATORY SECTION(Amending WSR 90-10-080, filed 5/2/90,
effective 6/2/90)
WAC 458-20-107
((Selling price -- )) Requirement to
separately state sales tax -- Advertised prices including sales
tax.
(1) ((Selling price.)) Introduction. Under the
provisions of RCW 82.08.020 the retail sales tax is to be
collected and paid upon retail sales, measured by the
(("))selling price.(("))
(((a) The term "'Selling price' means the consideration,
whether money, credits, rights, or other property except
trade-in property of like kind, expressed in the terms of
money paid or delivered by a buyer to a seller without any
deduction on account of the cost of tangible personal property
sold, the cost of materials used, labor costs, interest,
discount, delivery costs, taxes other than taxes imposed under
this chapter if the seller advertises the price as including
the tax or that the seller is paying the tax, or any other
expenses whatsoever paid or accrued and without any deduction
on account of losses; . . ." (See RCW 82.08.010(1).)
(b) Concerning the tax liabilities and benefits in connection with "trade-in" transactions, see WAC 458-20-247.
(c))) (2) Retail sales tax separately stated. RCW 82.08.050 specifically requires that the retail sales tax must
be stated separately from the selling price on any sales
invoice or other instrument of sale, i.e., contracts, sales
slips, and/or customer billing receipts. (For an exception
covering restaurant receipts of Class H liquor licensees, see
WAC ((458-20-119)) 458-20-124.) This is required even though
the seller and buyer may know and agree that the price quoted
is to include state and local taxes, including the retail
sales tax.
(a) The law creates a "conclusive presumption" that, for purposes of collecting the tax and remitting it to the state, the selling price quoted does not include the retail sales tax. This presumption is not overcome or rebutted by any written or oral agreement between seller and buyer.
((However,)) (b) Selling prices may be advertised as
including the tax or that the seller is paying the tax and, in
such cases, the advertised price ((shall)) must not be
considered to be the taxable selling price under certain
prescribed conditions explained in this section. Even when
prices are advertised as including the sales tax, the actual
sales invoices, receipts, contracts, or billing documents must
list the retail sales tax as a separate charge. Failure to
comply with this requirement may result in the retail sales
tax due and payable to the state being computed on the gross
amount charged even if it is claimed to already include all
taxes due.
(((2))) (3) Advertising prices including tax.
(a) The law provides that a seller may advertise prices as including the sales tax or that the seller is paying the sales tax under the following conditions:
(i) The words "tax included" are stated immediately following the advertised price in print size at least half as large as the advertised price print size, unless the advertised price is one in a listed series;
(ii) When advertised prices are listed in series, the words "tax included in all prices" are placed conspicuously at the head of the list in the same print size as the list;
(iii) If the price is advertised as including tax, the
price listed on any price tag ((shall)) must be shown in the
same way; and
(iv) All advertised prices and the words "tax included" are stated in the same medium, whether oral or visual, and if oral, in substantially the same inflection and volume.
(b) If these conditions are satisfied, as applicable, then price lists, reader boards, menus, and other price information mediums need not reflect the item price and separately show the actual amount of sales tax being collected on any or all items.
(c) The scope and intent of the foregoing is that buyers have the right to know whether retail sales tax is being included in advertised prices or not and that the tax is not to be used for the competitive advantage or disadvantage of retail sellers.
(((3) See: WAC 458-20-257 for warranties (guarantees)
and maintenance agreements (service contracts).))
[Statutory Authority: RCW 82.32.300. 90-10-080, § 458-20-107, filed 5/2/90, effective 6/2/90; 86-03-016 (Order ET 86-1), § 458-20-107, filed 1/7/86; 83-07-034 (Order ET 83-17), § 458-20-107, filed 3/15/83; Order ET 70-3, § 458-20-107 (Rule 107), filed 5/29/70, effective 7/1/70.]