WSR 15-05-040

PREPROPOSAL STATEMENT OF INQUIRY

[Filed February 11, 2015, 2:48 p.m.]

Subject of Possible Rule Making: WAC 458-20-196 Bad debts (Rule 196), provides information about the tax treatment of bad debts under the business and occupation (B&O), public utility, retail sales, and use taxes.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300, 82.01.060(2), 82.08.037, 82.12.037, 82.04.4284, and 82.16.050(5).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Rule 196 is being amended to address a proposed change on how to handle the sale of repossessed property securing a bad debt with postrecovery repairs and improvements. Other changes include: (1) Adding language in the introduction; (2) adding clarifying language throughout the rule; and (3) repositioning the examples where the applicable law is interpreted and numbering them consecutively throughout the rule.

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 Mark Bohe, ITA Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail MarkBohe@dor.wa.gov.

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

Public Meeting Location: Capital Plaza Building, Fourth Floor Executive Conference Room, 1025 Union Avenue S.E., Olympia, WA, on March 31, 2015, 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.

February 11, 2015

Dylan Waits

Rules Coordinator