WSR 14-11-084

PREPROPOSAL STATEMENT OF INQUIRY

[Filed May 20, 2014, 2:58 p.m.]

Subject of Possible Rule Making: The department is considering adopting rules to recognize RCW 82.32.655, the purpose of which per RCW 82.32.655(1) is to stop transactions or arrangements that are designed to unfairly avoid taxes. The department is at this time considering four rules, one general rule and separate rules for each of the three transaction/arrangement types identified in RCW 82.32.655(3).

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.655, 82.32.300, and 82.01.060.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: These rules are needed to explain the implications of this legislation, and to assist in determining whether a transaction or arrangement is within the scope of the three transaction/arrangement types identified in RCW 82.32.655(3).

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Internal Revenue Service.

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 proposed rules will be available via the department's online Rules Agenda prior to the CR-101 public meeting.

Written comments may be submitted by mail and should be directed to Melinda J. Mandell, ITA Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail MelindaM@dor.wa.gov.

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

Public Meeting Location: Capital Plaza Building, 4th Floor Executive Conference Room, 1025 Union Avenue S.E., Olympia, WA, on July 1, 2014, at 10:00 a.m. Call-in option can be provided upon request no later than three days before the meeting date.

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.

May 20, 2014

Dylan Waits

Rules Coordinator