FINAL BILL REPORT

                   SB 5559

                           FULL VETO

                     As Passed Legislature

Brief Description:  Exempting coin‑operated services of car washes from sales and use tax.

Sponsors:  Senators Hale, West, Loveland and Anderson.

Senate Committee on Ways & Means

Background:  The sales tax is imposed on each retail sale of most articles of tangible personal property and certain services.  Taxable services include construction, repair, telephone, lodging of less than 30 days, physical fitness, and some recreation and amusement services.  The use tax is imposed on the use of articles of tangible personal property when the sale or acquisition has not been subject to the sales tax.  The use tax commonly applies to purchases made from out-of-state firms.

Summary:  A sales and use tax exemption is provided for self-service motor vehicle wash and wax facilities.  The exemption includes the service of washing, waxing, and vacuuming a motor vehicle or other tangible personal property, if the purchaser or user of the service washes, waxes, or vacuums the person's motor vehicle or other tangible property at the facility, exclusively by means of automatic or manually operated coin-operated devices belonging to the vendor, without assistance from employees.

Votes on Final Passage:

Senate 32 13

House     54 42