FINAL BILL REPORT

                   SB 5343

                          C 201 L 97

                      Synopsis as Enacted

Brief Description:  Defining the location of a retail sale by a towing service operator as the place of business.

Sponsors:  Senators Sellar and Prentice.

Senate Committee on Ways & Means

Background:  The sales tax is imposed on retail sales of most items of tangible personal property and some services.  The state tax rate is 6.5 percent and is applied to the selling price of the article or service.  In addition, local sales taxes apply.  These range from 0.5 percent to 1.7 percent.  The total rate is between 7.0 percent and 8.2 percent, depending on the location.

For tax purposes, a retail sale is deemed to occur at the place where the service is primarily performed.

Summary:  For tow truck services, the place where the retail sale is deemed to occur is defined as the place of business of the operator of the tow truck service.

Votes on Final Passage:

Senate 43 0

House     97 0

Effective:  July 27, 1997