WSR 14-04-126

PREPROPOSAL STATEMENT OF INQUIRY

[Filed February 5, 2014, 9:07 a.m.]

Subject of Possible Rule Making: WAC 458-20-18801 (Rule 18801) Prescription drugs, prosthetic and orthotic devices, ostomic items, and medically prescribed oxygen and 458-20-168 (Rule 168) Hospitals, nursing homes, boarding homes, adult family homes and similar health care facilities.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300 and 82.01.060(2).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Rule 18801 explains the B&O and retail sales tax reporting responsibilities of persons selling medical products such as prescription drugs, over-the-counter drugs, prosthetic devices, and durable medical equipment. The rule provides definitions and examples, and explains the documentation requirements for persons claiming a retail sales tax exemption. The information in the current rule is out-of-date, and the department anticipates updating the rule to reflect current law.

Rule 168 explains the B&O, retail sales, and use tax responsibilities of persons operating hospitals, nursing homes, and similar health care facilities. The rule also identifies certain retail sales and use tax exemptions that may apply to persons operating these facilities. The department is considering an update and restructuring of the information in this rule to provide more clarity.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule making or giving oral testimony at the public meeting or public hearing.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. A preliminary draft of possible rule changes is available via the department's online Rules Agenda.

Written comments may be submitted by mail and should be directed to Gayle Carlson at e-mail GayleC@dor.wa.gov, or mailing address Gayle Carlson, ITA Division, P.O. Box 47453, Olympia, WA 98504-7453.

Written and oral comments will be accepted at the public meeting.

Public meeting location: Capital Plaza Building, 4th Floor Exec Conference Room, 1025 Union Avenue S.E., Olympia, WA, call-in option can be provided upon request no later than three days before the meeting date, by March 11, 2014, at 10:00 a.m.

Assistance for persons with disabilities: Contact Mary Carol LaPalm, (360) 725-7499 or Renee Cosare (360) 725-7514 no later than ten days before the meeting date. For hearing impaired please contact us via the Washington relay operator at (800) 833-6384.

February 5, 2014

Dylan Waits

Rules Coordinator