SUBSTITUTE HOUSE BILL 1203





                        57th Legislature

                2001 Regular Legislative Session


Passed by the House March 9, 2001

  Yeas 98   Nays 0




Speaker of the House of Representatives




Speaker of the House of Representatives





Passed by the Senate April 10, 2001

  Yeas 48   Nays 0



We, Timothy A. Martin and Cynthia Zehnder, Co-Chief Clerks of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 1203  as passed by the House of Representatives and the Senate on the dates hereon set forth.




                          Chief Clerk




                          Chief Clerk

President of the Senate




Approved Place Style On Codes above, and Style Off Codes below.              




Governor of the State of Washington

                   Secretary of State

                  State of Washington

H-1776.1  _______________________________________________


                    SUBSTITUTE HOUSE BILL 1203



             Passed Legislature - 2001 Regular Session


State of Washington      57th Legislature     2001 Regular Session


By House Committee on Finance (originally sponsored by Representatives Cairnes and Morris; by request of Department of Revenue)


Read first time .  Referred to Committee on .

Authorizing the department of revenue to modify sales tax exemption documentation and retention requirements for simplification purposes.

    AN ACT Relating to department of revenue authority regarding sales and use tax exemption documentation and retention requirements; adding a new section to chapter 82.32 RCW; and creating new sections.




    NEW SECTION.  Sec. 1.  The legislature finds that current sales and use tax exemption documentation requirements are often confusing and burdensome for retailers, taxpayers, and the state.  Additionally, the legislature notes the national efforts under way to simplify and streamline the sales and use tax, and that those efforts include a new system for retailers to use in processing sales and use tax exemptions.  The legislature further finds that it would be beneficial to the state and its residents to allow for the simplification of sales and use tax exemption requirements.


    NEW SECTION.  Sec. 2.  A new section is added to chapter 82.32 RCW to read as follows:

    (1) The department is authorized to enter into agreements with sellers who meet the criteria in this section for a project on sales and use tax exemption requirements.  This project will allow the use of electronic data collection in lieu of paper certificates otherwise required by law, including the use of electronic signatures.

    (2) The object of the project is to determine whether using an electronic system and reviewing the data regarding the exempt transactions provides the same level of reliability as the current system while lessening the burden on the seller.

    (3) A business making both sales taxable and exempt under chapter 82.08 or 82.12 RCW, that has electronic data-collecting capabilities, and that wishes to participate in the project may make application to the department in such form and manner as the department may require.  To be eligible for such participation, a seller must demonstrate its capability to take part in the project and to provide data to the department in a form in which the data can be used by the department.  The department is not required to accept all applicants in this project and is not required to provide any reason for not selecting a participant.  A seller selected as a participant may be relieved of other sales and use tax exemption documentation requirements provided by law as covered by the project, and will be relieved of the good faith requirement under RCW 82.08.050 to the extent that it has made available to the department the data required by the project.


    NEW SECTION.  Sec. 3.  The code reviser shall place a cross-reference note to section 2 of this act following RCW 82.08.050 and 82.12.040.


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