WSR 15-05-058

PREPROPOSAL STATEMENT OF INQUIRY

[Filed February 13, 2015, 3:45 p.m.]

Subject of Possible Rule Making: WAC 458-20-108 (Rule 108) Returned goods, allowances, cash discounts. Selling price—Credit card service fees, foreign currency, discounts, patronage dividend and 458-20-278 Returned goods, defective goods—Motor vehicle lemon law.

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: The department is considering a revision to WAC 458-20-108 which currently discusses returned goods, allowances and cash discounts. The proposed revision includes the definition of "selling price" or "sales price" which was expanded by legislation. The definition was previously found in WAC 458-20-107. Information on taxability for credit card service fees, purchases with foreign currency, use of coupons and discount vouchers, patronage dividends and payments to dealers for "make-ready" services has been added. The following excise tax advisories (ETA) will be canceled upon adoption of a revised rule: ETA 3008, 3129, 3060, 3081, 3041, and 3147, as pertinent information has been incorporated in the draft.

Returned goods, defective goods, and motor vehicle lemon law sales are a better fit for a separate rule and have been moved from WAC 458-20-108 to new proposed WAC 458-20-278.

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

Written and oral comments will 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 March 25, 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 13, 2015

Dylan Waits

Rules Coordinator