WSR 14-03-090

INTERPRETIVE STATEMENT

DEPARTMENT OF REVENUE

[Filed January 16, 2014, 3:49 p.m.]

INTERPRETIVE STATEMENT ISSUED

The department of revenue has issued the following excise tax advisory (ETA):

ETA 3185.2014 - Sourcing and Attribution of Income on Leases and Rentals of Tangible Personal Property

This ETA explains the business and occupation (B&O) and retail sales tax responsibilities of a seller (lessor) leasing tangible personal property to a consumer (lessee). The ETA clarifies that the lease of tangible personal property to a consumer is a retail sale subject to retailing B&O tax and retail sales tax unless a specific exemption applies; the measure upon which theses taxes are due; and how these taxes are sourced and attributed under Washington law. The ETA addresses both leasing arrangements that require recurring periodic payments and those that do not as they relate to:

•	Tangible personal property (other than transportation equipment or motor vehicles, trailers, semitrailers, and aircraft that do not qualify as transportation equipment);
•	Transportation equipment; and
•	Motor vehicles, trailers, semitrailers, and aircraft that do not qualify as transportation equipment.

A copy of this document is available via the internet at Recent Rule and Interpretive Statements, Adoptions, and Repeals.

Tim Jennrich

Tax Policy Specialist