BP BHEAD INT S [atlas:bill]

AN ACT Relating to exempting printed sales messages and related services from sales and use taxation; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 82.08 RCW to read as follows:

(1) Except as otherwise provided in this section, the tax levied by RCW 82.08.020 does not apply to the sale of printed sales messages that are:

(a) Printed to the special order of the purchaser;

(b) Mailed or delivered by seller, the seller's agent, or a mailing house acting as the agent for the purchaser, through the United States postal service or common carrier; and

(2) The tax levied by RCW 82.08.020 does not apply to charges made for mailing house and mailing list services used in conjunction with common carrier delivery of printed sales messages.

(3) To receive a tax exemption under this section, the purchaser of the printed sales message must:

(a) Provide the seller of the printed sales message and the mailing house and mailing list services used in association with common carrier delivery of the printed sales message with an exemption certificate in a form and manner prescribed by the department by rule; and

(b) Provide the department with a duplicate of the certificate or summary of exempt sales as the department may require.

(4) The seller shall retain a copy of the certificate for the seller's files.

(5) For purposes of this section and chapter 82.12 RCW:

(a) "Any other person" means a person, other than the purchaser or the purchaser's agent, who takes physical delivery of the printed sales messages and who exercises dominion and control over the property;

(b) "Common carrier" means any person engaged in the business of transporting property for hire or compensation and who offers his or her services indiscriminately to the public or to some portion of the public;

(c) "Cost" means any consideration given for the acquisition of the property, whether directly or indirectly. Indirect costs include, but are not limited to, subscription fees, franchise fees, or general overhead billing;

(d) "Mailing house" means any person engaged in the business of stamping, addressing, sealing, or otherwise preparing property for mailing for compensation;

(e) "Mailing list service" means any person engaged in the business of providing data in a format which is used to identify any person for delivery of printed sales messages;

(f)(i) "Printed sales messages" means catalogs, letters, circulars, brochures, and pamphlets printed for the principle purpose of advertising or promoting goods or services. "Printed sales messages" includes such items as: Department store catalogs and coupon books; order forms or other printed matter if the property is stapled, glued, or otherwise affixed to the printed sales message in such a manner that it becomes a component or integral part of the printed sales message and is sold together with the printed sales message; and containers, such as envelopes or wrapping paper, if sold with the printed sales message for shipment or delivery;

(ii) "Printed sales messages" does not include political campaign literature, fund-raising solicitations, stationary, order forms except as provided for in this section, sales invoices, containers for sample merchandise, calendars, notepads, and cash register tapes, unless they meet the principle purpose of advertising or promoting goods or services; and

(g) "Printed to the special order" means designed and prepared according to the specific request of the purchaser. The term also applies to additional or supplemental orders, if the original order was printed to the special order of the purchaser.

NEW SECTION. Sec. 2. A new section is added to chapter 82.12 RCW to read as follows:

(1) Except as otherwise provided in this section, the provisions of this chapter do not apply in respect to the use of printed sales messages that are:

(a) Printed to the special order of the purchaser;

(b) Mailed or delivered by the seller, the seller's agent, or a mailing house acting as the agent for the purchaser, through the United States postal service or common carrier; and

(2) The provisions of this chapter do not apply in respect to the use of mailing house and mailing list services used in conjunction with common carrier delivery of printed sales messages.

(3) The provisions of this chapter do not apply to the user of the printed sales message, but only if the user provides the department with an annual summary listing by January 31 of the year following the calendar year in which the printed sales messages and mailing house and mailing list services provided in association with common carrier delivery of the printed sales message are used.

NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.