WSR 08-14-068

INTERPRETIVE STATEMENT

DEPARTMENT OF REVENUE


[ Filed June 25, 2008, 3:03 p.m. ]


INTERPRETIVE STATEMENT ISSUED

ETA 2029.04.245


Retail Sales Taxes Imposed on Telecommunications Used to Provide Internet Access Services



ETA 2029.04.245 (ETA 2029) addresses Washington's taxation of telecommunications purchased, sold, or used to provide Internet access under the Internet Tax Freedom Act (ITFA), 47 U.S.C. section 151 note, as amended. This ETA has been updated to recognize the enactment of the Internet Tax Freedom Act Amendments Act of 2007, Pub. L. No. 110-108 (2007). ETA 2029 clarifies that Washington's retail sales tax is not due on the sale of telecommunications purchased, sold, or used to provide Internet access services beginning June 30, 2008, under the ITFA's tax moratorium. The ETA also explains that Washington's business and occupation tax is not subject to the ITFA's tax moratorium and that Washington is permitted to continue imposing this tax on Internet access services under the other business or service activities classification. Finally, this ETA discusses Washington's taxation of telecommunications purchased, sold, or used to provide Internet access prior to June 30, 2008, under ITFA's two grandfathering clauses.

A copy of this document is available via the internet at http://dor.wa.gov/content/FindALawOrRule/, or a request for a copy 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

Rules Coordinator

Washington State Code Reviser's Office