PERMANENT RULES
Effective Date of Rule: Thirty-one days after filing.
Purpose: WAC 458-20-239 (Rule 239) explains the retail sales tax exemption provided by RCW 82.08.0268 for sales to nonresidents of farming machinery and implements, parts for farming machinery and implements, and related labor and services.
The department has amended Rule 239 to:
• Eliminate language in subsection (2)(b) explaining that prior to June 11, 1998, the exemption was limited to parts and did not include repair services;
• Add the term "driver's license" in subsection (2)(c) as an example of what constitutes acceptable proof that a buyer is a nonresident;
• In subsection (2)(d): (1) Replace the reference to identify the "buyer's retail sales tax exemption certificate" with the "farmers' retail sales tax exemption certificate," which is the certificate currently used to document an exempt sales claim; and (2) update the explanation of how to obtain a blank exemption certificate.
Citation of Existing Rules Affected by this Order: Amending WAC 458-20-239 Sales to nonresidents of farm machinery or implements, and related services.
Statutory Authority for Adoption: RCW 82.32.300 and 82.01.060(2).
Other Authority: RCW 82.08.0268.
Adopted under notice filed as WSR 09-10-095 on May 6, 2009.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.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: July 10, 2009.
Alan R. Lynn
Rules Coordinator
OTS-2379.1
AMENDATORY SECTION(Amending WSR 00-09-092, filed 4/19/00,
effective 5/20/00)
WAC 458-20-239
Sales to nonresidents of farm machinery
or implements, and related services.
(1) Introduction. This
((rule)) section explains the retail sales tax exemption
provided by RCW 82.08.0268 for sales to nonresidents of
farming machinery and implements, parts for farming machinery
and implements, and related labor and services. ((The rule))
This section also explains the documents that must be
preserved to substantiate a claim of exemption. Sellers
should refer to WAC 458-20-193 (Inbound and outbound
interstate sales of tangible personal property) if they
deliver farm machinery or implements to the purchaser at an
out-of-state location.
(2) Tax-reporting requirements. Retailing B&O and retail sales taxes generally apply to all sales of tangible personal property, parts, and repair labor in Washington.
(a) RCW 82.08.0268 provides an exemption from retail sales tax for sales to nonresidents of the following when used in conducting a farm activity outside the state of Washington:
(i) Machinery and implements;
(ii) Parts for machinery and implements; and
(iii) Labor and services for repair of machinery, implements, and parts.
(b) To qualify for the exemption, the machinery,
implements, or parts must be transported outside the state
immediately after sale or completion of the repair or service.
((Prior to June 11, 1998, the exemption applied only to farm
machinery and implements, and repair parts and components if
attached to the machinery or implements. The exemption did
not apply to labor and services.))
(c) This exemption is allowed even though the property sold or serviced is delivered to the purchaser in this state, but only when the seller receives from the buyer an exemption certificate, and examines acceptable proof such as a driver's license that the buyer is a resident of a state or country other than the state of Washington.
(d) The exempt nature of the transaction must be
documented by using the department's "((buyer's)) Farmers'
Retail Sales Tax Exemption Certificate," or another
certificate with substantially the same information as it
relates to the exemption provided by RCW 82.08.0268. The
certificate must be completed in its entirety, and retained by
the seller.
((A blank)) The "Farmers' Retail Sales Tax Exemption
Certificate" can be obtained via the internet at
http://dor.wa.gov((, by facsimile by calling Fast Fax at (360)
786-6116 or (800) 647-7706 (using menu options), or by writing
to Taxpayer Services, Washington State Department of Revenue,
Post Office Box 47478, Olympia, Washington 98504-7478)). The
form may also be obtained by contacting the department's
telephone information center at 1-800-647-7706, or by writing
the department at:
Taxpayer Information and Education
Department of Revenue
P.O. Box 47478
Olympia, WA 98504-7478
If, prior to completion of the sale, the seller becomes
aware of any information inconsistent with the purchaser's
claim of residency, such as a Washington address on a credit
application, the seller should not accept an exemption
certificate.
[Statutory Authority: RCW 82.32.300. 00-09-092, § 458-20-239, filed 4/19/00, effective 5/20/00; 83-08-026 (Order ET 83-1), § 458-20-239, filed 3/30/83; Order ET 70-3, § 458-20-239 (Rule 239), filed 5/29/70, effective 7/1/70.]