BILL REQ. #: H-2327.1
| State of Washington | 61st Legislature | 2009 Regular Session |
Read first time 03/23/09. Referred to Committee on Finance.
AN ACT Relating to revising the tax code to ensure that products transferred electronically, and the gross income derived from such products, will continue to be subject to sales, use, and business and occupation taxes in a manner that complies with the streamlined sales and use tax agreement; amending RCW 82.04.190, 82.08.010, 82.12.010, 82.12.020, 82.04.060, 82.04.070, 82.04.110, 82.04.120, 82.04.2907, 82.04.297, 82.04.363, 82.04.4282, 82.04.470, 82.04.480, 82.04.065, 82.08.02525, 82.08.0253, 82.08.02535, 82.08.02537, 82.08.0256, 82.08.02565, 82.08.0257, 82.08.0273, 82.08.805, 82.08.995, 82.12.0251, 82.12.02525, 82.12.0255, 82.12.0257, 82.12.0258, 82.12.0259, 82.12.02595, 82.12.0272, 82.12.0284, 82.12.0315, 82.12.0345, 82.12.0347, 82.12.805, 82.12.860, 82.12.995, 82.32.730, 35.21.717, 48.14.080, 82.02.020, 82.04.44525, 82.08.040, 82.08.130, 82.12.035, 82.12.040, 82.14.465, 82.16.010, 82.32.020, and 82.32.023; reenacting and amending RCW 82.04.050; adding new sections to chapter 82.04 RCW; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; creating new sections; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 101 (1) The legislature finds that:
(a) The department of revenue has historically interpreted the term
"tangible personal property," for sales and use tax purposes, to
include products delivered electronically (digital products), including
but not limited to music, video, and standard information such as books
and other electronic publications.
(b) In September 2007, the streamlined sales and use tax agreement
was amended to prohibit, prospectively, member states from interpreting
the definition of tangible personal property to include digital
products.
(c) As a result, to remain in compliance with the streamlined sales
and use tax agreement, this state must, by January 1, 2010, cease
interpreting the definition of tangible personal property in RCW
82.08.010 to include certain specified digital products, essentially
digital books, digital music and other digital audio works, and digital
movies and other digital audio-visual works.
(d) The state must, by January 1, 2012, also cease interpreting the
definition of tangible personal property in RCW 82.08.010 to include
any other digital products.
(2) By this act, the legislature:
(a) Ratifies the department of revenue's interpretation that
tangible personal property includes products delivered electronically
for sales and use tax purposes; and
(b) Intends to ensure the continued excise taxation of digital
products in conformity with the September 2007 amendments to the
streamlined sales and use tax agreement.
NEW SECTION. Sec. 201 A new section is added to chapter 82.04
RCW to be codified between RCW 82.04.010 and 82.04.220 to read as
follows:
(1) "Digital audio works" means works that result from the fixation
of a series of musical, spoken, or other sounds, including ringtones.
(2) "Digital audio-visual works" means a series of related images
which, when shown in succession, impart an impression of motion,
together with accompanying sounds, if any.
(3) "Digital books" means works that are generally recognized in
the ordinary and usual sense as books.
(4) "Digital code" means a code that provides a purchaser with the
right to obtain one or more digital products, if all of the digital
products to be obtained through the use of the code have the same sales
and use tax treatment. "Digital code" does not include a code that
represents a stored monetary value that is deducted from a total as it
is used by the purchaser. "Digital code" also does not include a code
that represents a redeemable card, gift card, or gift certificate that
entitles the holder to select digital products of an indicated cash
value. A digital code may be obtained by any means, including e-mail
or by tangible means regardless of its designation as song code, video
code, book code, or some other term.
(5)(a) "Digital goods," except as provided in (b) of this
subsection (5), means sounds, images, data, facts, or information, or
any combination thereof, transferred electronically, including, but not
limited to, digital audio works, digital audio-visual works, digital
books, and standard information.
(b) The term "digital goods" does not include:
(i) Telecommunications services and ancillary services as those
terms are defined in RCW 82.04.065;
(ii) Computer software as defined in RCW 82.04.215;
(iii) Internet access as defined in RCW 82.04.297;
(iv) The representation of a professional service in electronic
form, such as an electronic copy of an engineering report prepared by
an engineer, that primarily involves the application of human effort,
and the human effort originated after the customer requested the
service; and
(v) Information services. For purposes of this subsection,
"information services" means data, facts, or information, or any
combination thereof, generated or compiled solely for the specific
needs of a single client or customer.
(6) "Digital products" means digital goods and digital codes.
(7) "Electronically transferred" or "transferred electronically"
means obtained by the purchaser by means other than tangible storage
media. It is not necessary that a copy of the product be physically
transferred to the purchaser. So long as the purchaser may access the
product, it will be considered to have been electronically transferred
to the purchaser.
(8) "Standard information" means works consisting primarily of
data, facts, or information, or any combination thereof, not generated
or compiled for a specific client or customer.
Sec. 301 RCW 82.04.050 and 2007 c 54 s 4 and 2007 c 6 s 1004 are
each reenacted and amended to read as follows:
(1) "Sale at retail" or "retail sale" means every sale of tangible
personal property (including articles produced, fabricated, or
imprinted) to all persons irrespective of the nature of their business
and including, among others, without limiting the scope hereof, persons
who install, repair, clean, alter, improve, construct, or decorate real
or personal property of or for consumers other than a sale to a person
who presents a resale certificate under RCW 82.04.470 and who:
(a) Purchases for the purpose of resale as tangible personal
property in the regular course of business without intervening use by
such person, but a purchase for the purpose of resale by a regional
transit authority under RCW 81.112.300 is not a sale for resale; or
(b) Installs, repairs, cleans, alters, imprints, improves,
constructs, or decorates real or personal property of or for consumers,
if such tangible personal property becomes an ingredient or component
of such real or personal property without intervening use by such
person; or
(c) Purchases for the purpose of consuming the property purchased
in producing for sale a new article of tangible personal property or
substance, of which such property becomes an ingredient or component or
is a chemical used in processing, when the primary purpose of such
chemical is to create a chemical reaction directly through contact with
an ingredient of a new article being produced for sale; or
(d) Purchases for the purpose of consuming the property purchased
in producing ferrosilicon which is subsequently used in producing
magnesium for sale, if the primary purpose of such property is to
create a chemical reaction directly through contact with an ingredient
of ferrosilicon; or
(e) Purchases for the purpose of providing the property to
consumers as part of competitive telephone service, as defined in RCW
82.04.065. The term shall include every sale of tangible personal
property which is used or consumed or to be used or consumed in the
performance of any activity classified as a "sale at retail" or "retail
sale" even though such property is resold or utilized as provided in
(a), (b), (c), (d), or (e) of this subsection following such use. The
term also means every sale of tangible personal property to persons
engaged in any business which is taxable under RCW 82.04.280 (2) and
(7), 82.04.290, and 82.04.2908; or
(f) Purchases for the purpose of satisfying the person's
obligations under an extended warranty as defined in subsection (7) of
this section, if such tangible personal property replaces or becomes an
ingredient or component of property covered by the extended warranty
without intervening use by such person.
(2) The term "sale at retail" or "retail sale" ((shall include))
includes the sale of or charge made for tangible personal property
consumed and/or for labor and services rendered in respect to the
following:
(a) The installing, repairing, cleaning, altering, imprinting, or
improving of tangible personal property of or for consumers, including
charges made for the mere use of facilities in respect thereto, but
excluding charges made for the use of self-service laundry facilities,
and also excluding sales of laundry service to nonprofit health care
facilities, and excluding services rendered in respect to live animals,
birds and insects;
(b) The constructing, repairing, decorating, or improving of new or
existing buildings or other structures under, upon, or above real
property of or for consumers, including the installing or attaching of
any article of tangible personal property therein or thereto, whether
or not such personal property becomes a part of the realty by virtue of
installation, and shall also include the sale of services or charges
made for the clearing of land and the moving of earth excepting the
mere leveling of land used in commercial farming or agriculture;
(c) The constructing, repairing, or improving of any structure
upon, above, or under any real property owned by an owner who conveys
the property by title, possession, or any other means to the person
performing such construction, repair, or improvement for the purpose of
performing such construction, repair, or improvement and the property
is then reconveyed by title, possession, or any other means to the
original owner;
(d) The cleaning, fumigating, razing, or moving of existing
buildings or structures, but ((shall)) may not include the charge made
for janitorial services; and for purposes of this section the term
"janitorial services" shall mean those cleaning and caretaking services
ordinarily performed by commercial janitor service businesses
including, but not limited to, wall and window washing, floor cleaning
and waxing, and the cleaning in place of rugs, drapes and upholstery.
The term "janitorial services" does not include painting, papering,
repairing, furnace or septic tank cleaning, snow removal or
sandblasting;
(e) Automobile towing and similar automotive transportation
services, but not in respect to those required to report and pay taxes
under chapter 82.16 RCW;
(f) The furnishing of lodging and all other services by a hotel,
rooming house, tourist court, motel, trailer camp, and the granting of
any similar license to use real property, as distinguished from the
renting or leasing of real property, and it ((shall be)) is presumed
that the occupancy of real property for a continuous period of one
month or more constitutes a rental or lease of real property and not a
mere license to use or enjoy the same. For the purposes of this
subsection, it shall be presumed that the sale of and charge made for
the furnishing of lodging for a continuous period of one month or more
to a person is a rental or lease of real property and not a mere
license to enjoy the same;
(g) The installing, repairing, altering, or improving of digital
products for consumers;
(h) Persons taxable under (a), (b), (c), (d), (e), ((and)) (f), and
(g) of this subsection when such sales or charges are for property,
labor and services which are used or consumed in whole or in part by
such persons in the performance of any activity defined as a "sale at
retail" or "retail sale" even though such property, labor and services
may be resold after such use or consumption. Nothing contained in this
subsection shall be construed to modify subsection (1) of this section
and nothing contained in subsection (1) of this section ((shall)) may
be construed to modify this subsection.
(3) The term "sale at retail" or "retail sale" ((shall include))
includes the sale of or charge made for personal, business, or
professional services including amounts designated as interest, rents,
fees, admission, and other service emoluments however designated,
received by persons engaging in the following business activities:
(a) Amusement and recreation services including but not limited to
golf, pool, billiards, skating, bowling, ski lifts and tows, day trips
for sightseeing purposes, and others, when provided to consumers;
(b) Abstract, title insurance, and escrow services;
(c) Credit bureau services;
(d) Automobile parking and storage garage services;
(e) Landscape maintenance and horticultural services but excluding
(i) horticultural services provided to farmers and (ii) pruning,
trimming, repairing, removing, and clearing of trees and brush near
electric transmission or distribution lines or equipment, if performed
by or at the direction of an electric utility;
(f) Service charges associated with tickets to professional
sporting events; and
(g) The following personal services: Physical fitness services,
tanning salon services, tattoo parlor services, steam bath services,
turkish bath services, escort services, and dating services.
(4)(a) The term ((shall)) also includes:
(i) The renting or leasing of tangible personal property to
consumers; and
(ii) Providing tangible personal property along with an operator
for a fixed or indeterminate period of time. A consideration of this
is that the operator is necessary for the tangible personal property to
perform as designed. For the purpose of this subsection (4)(a)(ii), an
operator must do more than maintain, inspect, or set up the tangible
personal property.
(b) The term ((shall)) does not include the renting or leasing of
tangible personal property where the lease or rental is for the purpose
of sublease or subrent.
(5) The term ((shall)) also includes the providing of "competitive
telephone service," "telecommunications service," or "ancillary
services," as those terms are defined in RCW 82.04.065, to consumers.
(6) The term ((shall)) also includes the sale of prewritten
computer software other than a sale to a person who presents a resale
certificate under RCW 82.04.470, regardless of the method of delivery
to the end user((, but shall)).
The term "retail sale" does not include the sale of or charge made
for:
(a) Custom software; or
(b) The customization of prewritten computer software.
(7) The term ((shall)) also includes the sale of or charge made for
an extended warranty to a consumer. For purposes of this subsection,
"extended warranty" means an agreement for a specified duration to
perform the replacement or repair of tangible personal property at no
additional charge or a reduced charge for tangible personal property,
labor, or both, or to provide indemnification for the replacement or
repair of tangible personal property, based on the occurrence of
specified events. The term "extended warranty" does not include an
agreement, otherwise meeting the definition of extended warranty in
this subsection, if no separate charge is made for the agreement and
the value of the agreement is included in the sales price of the
tangible personal property covered by the agreement. For purposes of
this subsection, "sales price" has the same meaning as in RCW
82.08.010.
(8)(a) The term also includes the following sales to consumers of
digital products:
(i) Sales in which the seller has granted the purchaser the right
of permanent use;
(ii) Sales in which the seller has granted the purchaser a right of
use that is less than permanent;
(iii) Sales in which the purchaser is not obligated to make
continued payment as a condition of the sale; and
(iv) Sales in which the purchaser is obligated to make continued
payment as a condition of the sale.
(b) For purposes of this subsection, "permanent" means perpetual or
for an indefinite or unspecified length of time. A right of permanent
use is presumed to have been granted unless the agreement between the
seller and the purchaser specifies or the circumstances surrounding the
transaction suggest or indicate that the right to use terminates on the
occurrence of a condition subsequent.
(9) The term ((shall)) does not include the sale of or charge made
for labor and services rendered in respect to the building, repairing,
or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state or by the United States and which is
used or to be used primarily for foot or vehicular traffic including
mass transportation vehicles of any kind.
(((9))) (10) The term ((shall)) also does not include sales of
chemical sprays or washes to persons for the purpose of postharvest
treatment of fruit for the prevention of scald, fungus, mold, or decay,
nor ((shall)) does it include sales of feed, seed, seedlings,
fertilizer, agents for enhanced pollination including insects such as
bees, and spray materials to: (a) Persons who participate in the
federal conservation reserve program, the environmental quality
incentives program, the wetlands reserve program, and the wildlife
habitat incentives program, or their successors administered by the
United States department of agriculture; (b) farmers for the purpose of
producing for sale any agricultural product; and (c) farmers acting
under cooperative habitat development or access contracts with an
organization exempt from federal income tax under Title 26 U.S.C. Sec.
501(c)(3) or the Washington state department of fish and wildlife to
produce or improve wildlife habitat on land that the farmer owns or
leases.
(((10))) (11) The term ((shall)) does not include the sale of or
charge made for labor and services rendered in respect to the
constructing, repairing, decorating, or improving of new or existing
buildings or other structures under, upon, or above real property of or
for the United States, any instrumentality thereof, or a county or city
housing authority created pursuant to chapter 35.82 RCW, including the
installing, or attaching of any article of tangible personal property
therein or thereto, whether or not such personal property becomes a
part of the realty by virtue of installation. Nor ((shall)) does the
term include the sale of services or charges made for the clearing of
land and the moving of earth of or for the United States, any
instrumentality thereof, or a county or city housing authority. Nor
((shall)) does the term include the sale of services or charges made
for cleaning up for the United States, or its instrumentalities,
radioactive waste and other byproducts of weapons production and
nuclear research and development.
(((11))) (12) The term ((shall)) does not include the sale of or
charge made for labor, services, or tangible personal property pursuant
to agreements providing maintenance services for bus, rail, or rail
fixed guideway equipment when a regional transit authority is the
recipient of the labor, services, or tangible personal property, and a
transit agency, as defined in RCW 81.104.015, performs the labor or
services.
Sec. 302 RCW 82.04.190 and 2007 c 6 s 1008 are each amended to
read as follows:
"Consumer" means the following:
(1) Any person who purchases, acquires, owns, holds, or uses any
article of tangible personal property irrespective of the nature of the
person's business and including, among others, without limiting the
scope hereof, persons who install, repair, clean, alter, improve,
construct, or decorate real or personal property of or for consumers
other than for the purpose (a) of resale as tangible personal property
in the regular course of business or (b) of incorporating such property
as an ingredient or component of real or personal property when
installing, repairing, cleaning, altering, imprinting, improving,
constructing, or decorating such real or personal property of or for
consumers or (c) of consuming such property in producing for sale a new
article of tangible personal property or a new substance, of which such
property becomes an ingredient or component or as a chemical used in
processing, when the primary purpose of such chemical is to create a
chemical reaction directly through contact with an ingredient of a new
article being produced for sale or (d) of consuming the property
purchased in producing ferrosilicon which is subsequently used in
producing magnesium for sale, if the primary purpose of such property
is to create a chemical reaction directly through contact with an
ingredient of ferrosilicon or (e) of satisfying the person's
obligations under an extended warranty as defined in RCW 82.04.050(7),
if such tangible personal property replaces or becomes an ingredient or
component of property covered by the extended warranty without
intervening use by such person;
(2)(a) Any person engaged in any business activity taxable under
RCW 82.04.290 or 82.04.2908; (b) any person who purchases, acquires, or
uses any competitive telephone service, ancillary services, or
telecommunications service as those terms are defined in RCW 82.04.065,
other than for resale in the regular course of business; (c) any person
who purchases, acquires, or uses any service defined in RCW
82.04.050(2) (a) or (g), other than for resale in the regular course of
business or for the purpose of satisfying the person's obligations
under an extended warranty as defined in RCW 82.04.050(7); (d) any
person who purchases, acquires, or uses any amusement and recreation
service defined in RCW 82.04.050(3)(a), other than for resale in the
regular course of business; (e) any person who is an end user of
software; and (f) any person who purchases or acquires an extended
warranty as defined in RCW 82.04.050(7) other than for resale in the
regular course of business;
(3) Any person engaged in the business of contracting for the
building, repairing or improving of any street, place, road, highway,
easement, right-of-way, mass public transportation terminal or parking
facility, bridge, tunnel, or trestle which is owned by a municipal
corporation or political subdivision of the state of Washington or by
the United States and which is used or to be used primarily for foot or
vehicular traffic including mass transportation vehicles of any kind as
defined in RCW 82.04.280, in respect to tangible personal property when
such person incorporates such property as an ingredient or component of
such publicly owned street, place, road, highway, easement,
right-of-way, mass public transportation terminal or parking facility,
bridge, tunnel, or trestle by installing, placing or spreading the
property in or upon the right-of-way of such street, place, road,
highway, easement, bridge, tunnel, or trestle or in or upon the site of
such mass public transportation terminal or parking facility;
(4) Any person who is an owner, lessee or has the right of
possession to or an easement in real property which is being
constructed, repaired, decorated, improved, or otherwise altered by a
person engaged in business, excluding only (a) municipal corporations
or political subdivisions of the state in respect to labor and services
rendered to their real property which is used or held for public road
purposes, and (b) the United States, instrumentalities thereof, and
county and city housing authorities created pursuant to chapter 35.82
RCW in respect to labor and services rendered to their real property.
Nothing contained in this or any other subsection of this definition
shall be construed to modify any other definition of "consumer";
(5) Any person who is an owner, lessee, or has the right of
possession to personal property which is being constructed, repaired,
improved, cleaned, imprinted, or otherwise altered by a person engaged
in business;
(6) Any person engaged in the business of constructing, repairing,
decorating, or improving new or existing buildings or other structures
under, upon, or above real property of or for the United States, any
instrumentality thereof, or a county or city housing authority created
pursuant to chapter 35.82 RCW, including the installing or attaching of
any article of tangible personal property therein or thereto, whether
or not such personal property becomes a part of the realty by virtue of
installation; also, any person engaged in the business of clearing land
and moving earth of or for the United States, any instrumentality
thereof, or a county or city housing authority created pursuant to
chapter 35.82 RCW. Any such person shall be a consumer within the
meaning of this subsection in respect to tangible personal property
incorporated into, installed in, or attached to such building or other
structure by such person, except that consumer does not include any
person engaged in the business of constructing, repairing, decorating,
or improving new or existing buildings or other structures under, upon,
or above real property of or for the United States, or any
instrumentality thereof, if the investment project would qualify for
sales and use tax deferral under chapter 82.63 RCW if undertaken by a
private entity;
(7) Any person who is a lessor of machinery and equipment, the
rental of which is exempt from the tax imposed by RCW 82.08.020 under
RCW 82.08.02565, with respect to the sale of or charge made for
tangible personal property consumed in respect to repairing the
machinery and equipment, if the tangible personal property has a useful
life of less than one year. Nothing contained in this or any other
subsection of this section shall be construed to modify any other
definition of "consumer";
(8) Any person engaged in the business of cleaning up for the
United States, or its instrumentalities, radioactive waste and other
byproducts of weapons production and nuclear research and development;
((and))
(9) Any person who is an owner, lessee, or has the right of
possession of tangible personal property that, under the terms of an
extended warranty as defined in RCW 82.04.050(7), has been repaired or
is replacement property, but only with respect to the sale of or charge
made for the repairing of the tangible personal property or the
replacement property;
(10)(a) Any end user of a digital product.
(b)(i) For purposes of this subsection, "end user" means any
taxpayer as defined in RCW 82.12.010 other than a taxpayer who receives
by contract a digital good for further commercial broadcast,
rebroadcast, transmission, retransmission, licensing, relicensing,
distribution, redistribution or exhibition of the product, in whole or
in part, to others. A person that purchases digital goods or digital
codes for the purpose of giving away such goods or codes will not be
considered to have engaged in the distribution or redistribution of
such goods or codes and will be treated as an end user;
(ii) If a purchaser of a digital code does not receive the
contractual right to further redistribute, after the digital code is
redeemed, the underlying digital good to which the digital code
relates, then the purchaser of the digital code is an end user. If the
purchaser of the digital code receives the contractual right to further
redistribute, after the digital code is redeemed, the underlying
digital good to which the digital code relates, then the purchaser of
the digital code is not an end user. A purchaser of a digital code who
has the contractual right to further redistribute the digital code is
an end user if that purchaser does not have the right to further
redistribute, after the digital code is redeemed, the underlying
digital good to which the digital code relates.
Sec. 303 RCW 82.08.010 and 2007 c 6 s 1302 are each amended to
read as follows:
For the purposes of this chapter:
(1)(a) "Selling price" includes "sales price." "Sales price" means
the total amount of consideration, except separately stated trade-in
property of like kind, including cash, credit, property, and services,
for which tangible personal property, extended warranties, digital
products, or services defined as a "retail sale" under RCW 82.04.050
are sold, leased, or rented, valued in money, whether received in money
or otherwise. No deduction from the total amount of consideration is
allowed for the following: (i) The seller's cost of the property sold;
(ii) the cost of materials used, labor or service cost, interest,
losses, all costs of transportation to the seller, all taxes imposed on
the seller, and any other expense of the seller; (iii) charges by the
seller for any services necessary to complete the sale, other than
delivery and installation charges; (iv) delivery charges; and (v)
installation charges.
When tangible personal property is rented or leased under
circumstances that the consideration paid does not represent a
reasonable rental for the use of the articles so rented or leased, the
"selling price" shall be determined as nearly as possible according to
the value of such use at the places of use of similar products of like
quality and character under such rules as the department may prescribe;
(b) "Selling price" or "sales price" does not include: Discounts,
including cash, term, or coupons that are not reimbursed by a third
party that are allowed by a seller and taken by a purchaser on a sale;
interest, financing, and carrying charges from credit extended on the
sale of tangible personal property, extended warranties, digital
products, or services, if the amount is separately stated on the
invoice, bill of sale, or similar document given to the purchaser; and
any taxes legally imposed directly on the consumer that are separately
stated on the invoice, bill of sale, or similar document given to the
purchaser;
(c) "Selling price" or "sales price" includes consideration
received by the seller from a third party if:
(i) The seller actually receives consideration from a party other
than the purchaser, and the consideration is directly related to a
price reduction or discount on the sale;
(ii) The seller has an obligation to pass the price reduction or
discount through to the purchaser;
(iii) The amount of the consideration attributable to the sale is
fixed and determinable by the seller at the time of the sale of the
item to the purchaser; and
(iv) One of the criteria in this subsection (1)(c)(iv) is met:
(A) The purchaser presents a coupon, certificate, or other
documentation to the seller to claim a price reduction or discount
where the coupon, certificate, or documentation is authorized,
distributed, or granted by a third party with the understanding that
the third party will reimburse any seller to whom the coupon,
certificate, or documentation is presented;
(B) The purchaser identifies himself or herself to the seller as a
member of a group or organization entitled to a price reduction or
discount, however a "preferred customer" card that is available to any
patron does not constitute membership in such a group; or
(C) The price reduction or discount is identified as a third party
price reduction or discount on the invoice received by the purchaser or
on a coupon, certificate, or other documentation presented by the
purchaser;
(2)(a) "Seller" means every person, including the state and its
departments and institutions, making sales at retail or retail sales to
a buyer, purchaser, or consumer, whether as agent, broker, or
principal, except "seller" does not mean:
(i) The state and its departments and institutions when making
sales to the state and its departments and institutions; or
(ii) A professional employer organization when a covered employee
coemployed with the client under the terms of a professional employer
agreement engages in activities that constitute a sale at retail that
is subject to the tax imposed by this chapter. In such cases, the
client, and not the professional employer organization, is deemed to be
the seller and is responsible for collecting and remitting the tax
imposed by this chapter.
(b) For the purposes of (a) of this subsection, the terms "client,"
"covered employee," "professional employer agreement," and
"professional employer organization" have the same meanings as in RCW
82.04.540;
(3) "Buyer," "purchaser," and "consumer" include, without limiting
the scope hereof, every individual, receiver, assignee, trustee in
bankruptcy, trust, estate, firm, copartnership, joint venture, club,
company, joint stock company, business trust, corporation, association,
society, or any group of individuals acting as a unit, whether mutual,
cooperative, fraternal, nonprofit, or otherwise, municipal corporation,
quasi municipal corporation, and also the state, its departments and
institutions and all political subdivisions thereof, irrespective of
the nature of the activities engaged in or functions performed, and
also the United States or any instrumentality thereof;
(4) "Delivery charges" means charges by the seller of personal
property or services for preparation and delivery to a location
designated by the purchaser of personal property or services including,
but not limited to, transportation, shipping, postage, handling,
crating, and packing;
(5) "Direct mail" means printed material delivered or distributed
by United States mail or other delivery service to a mass audience or
to addressees on a mailing list provided by the purchaser or at the
direction of the purchaser when the cost of the items are not billed
directly to the recipients. "Direct mail" includes tangible personal
property supplied directly or indirectly by the purchaser to the direct
mail seller for inclusion in the package containing the printed
material. "Direct mail" does not include multiple items of printed
material delivered to a single address;
(6) The meaning attributed in chapter 82.04 RCW to the terms "tax
year," "taxable year," "person," "company," "sale," "sale at retail,"
"retail sale," "sale at wholesale," "wholesale," "business," "engaging
in business," "cash discount," "successor," "consumer," "in this state"
and "within this state" shall apply equally to the provisions of this
chapter;
(7) For the purposes of the taxes imposed under this chapter and
under chapter 82.12 RCW, "tangible personal property" means personal
property that can be seen, weighed, measured, felt, or touched, or that
is in any other manner perceptible to the senses. Tangible personal
property includes electricity, water, gas, steam, and prewritten
computer software;
(8) "Extended warranty" has the same meaning as in RCW
82.04.050(7);
(9) The definitions in section 201 of this act apply to this
chapter; and
(10) For the purposes of the taxes imposed under this chapter and
chapter 82.12 RCW, whenever the terms "property" or "personal property"
are used, those terms must be construed to include digital products
unless:
(a) It is clear from the context that the term "personal property"
is intended only to refer to tangible personal property;
(b) It is clear from the context that the term "property" is
intended only to refer to tangible personal property, real property, or
both; or
(c) To construe the term "property" or "personal property" as
including digital products would yield unlikely, absurd, or strained
consequences.
Sec. 304 RCW 82.12.010 and 2006 c 301 s 3 are each amended to
read as follows:
For the purposes of this chapter:
(1) "Purchase price" means the same as sales price as defined in
RCW 82.08.010((.));
(2)(a) "Value of the article used" shall be the purchase price for
the article of tangible personal property, the use of which is taxable
under this chapter. The term also includes, in addition to the
purchase price, the amount of any tariff or duty paid with respect to
the importation of the article used. In case the article used is
acquired by lease or by gift or is extracted, produced, or manufactured
by the person using the same or is sold under conditions wherein the
purchase price does not represent the true value thereof, the value of
the article used shall be determined as nearly as possible according to
the retail selling price at place of use of similar products of like
quality and character under such rules as the department may prescribe.
(b) In case the articles used are acquired by bailment, the value
of the use of the articles so used shall be in an amount representing
a reasonable rental for the use of the articles so bailed, determined
as nearly as possible according to the value of such use at the places
of use of similar products of like quality and character under such
rules as the department of revenue may prescribe. In case any such
articles of tangible personal property are used in respect to the
construction, repairing, decorating, or improving of, and which become
or are to become an ingredient or component of, new or existing
buildings or other structures under, upon, or above real property of or
for the United States, any instrumentality thereof, or a county or city
housing authority created pursuant to chapter 35.82 RCW, including the
installing or attaching of any such articles therein or thereto,
whether or not such personal property becomes a part of the realty by
virtue of installation, then the value of the use of such articles so
used shall be determined according to the retail selling price of such
articles, or in the absence of such a selling price, as nearly as
possible according to the retail selling price at place of use of
similar products of like quality and character or, in the absence of
either of these selling price measures, such value may be determined
upon a cost basis, in any event under such rules as the department of
revenue may prescribe.
(c) In the case of articles owned by a user engaged in business
outside the state which are brought into the state for no more than one
hundred eighty days in any period of three hundred sixty-five
consecutive days and which are temporarily used for business purposes
by the person in this state, the value of the article used shall be an
amount representing a reasonable rental for the use of the articles,
unless the person has paid tax under this chapter or chapter 82.08 RCW
upon the full value of the article used, as defined in (a) of this
subsection.
(d) In the case of articles manufactured or produced by the user
and used in the manufacture or production of products sold or to be
sold to the department of defense of the United States, the value of
the articles used shall be determined according to the value of the
ingredients of such articles.
(e) In the case of an article manufactured or produced for purposes
of serving as a prototype for the development of a new or improved
product, the value of the article used shall be determined by: (i) The
retail selling price of such new or improved product when first offered
for sale; or (ii) the value of materials incorporated into the
prototype in cases in which the new or improved product is not offered
for sale.
(f) In the case of an article purchased with a direct pay permit
under RCW 82.32.087, the value of the article used shall be determined
by the purchase price of such article if, but for the use of the direct
pay permit, the transaction would have been subject to sales tax;
(3) "Value of the service used" means the purchase price for the
service, the use of which is taxable under this chapter. If the
service is received by gift or under conditions wherein the purchase
price does not represent the true value thereof, the value of the
service used shall be determined as nearly as possible according to the
retail selling price at place of use of similar services of like
quality and character under rules the department may prescribe;
(4) "Value of the extended warranty used" means the purchase price
for the extended warranty, the use of which is taxable under this
chapter. If the extended warranty is received by gift or under
conditions wherein the purchase price does not represent the true value
of the extended warranty, the value of the extended warranty used shall
be determined as nearly as possible according to the retail selling
price at place of use of similar extended warranties of like quality
and character under rules the department may prescribe;
(5) "Value of the digital product used" means the purchase price
for the digital product, the use of which is taxable under this
chapter. If the digital product is acquired other than by purchase,
the value of the digital product must be determined as nearly as
possible according to the retail selling price at place of use of
similar digital products of like quality and character under rules the
department may prescribe;
(6) "Use," "used," "using," or "put to use" ((shall)) have their
ordinary meaning, and ((shall)) mean:
(a) With respect to tangible personal property, the first act
within this state by which the taxpayer takes or assumes dominion or
control over the article of tangible personal property (as a consumer),
and include installation, storage, withdrawal from storage,
distribution, or any other act preparatory to subsequent actual use or
consumption within this state;
(b) With respect to a service defined in RCW 82.04.050(2)(a), the
first act within this state after the service has been performed by
which the taxpayer takes or assumes dominion or control over the
article of tangible personal property upon which the service was
performed (as a consumer), and includes installation, storage,
withdrawal from storage, distribution, or any other act preparatory to
subsequent actual use or consumption of the article within this state;
((and))
(c) With respect to an extended warranty, the first act within this
state after the extended warranty has been acquired by which the
taxpayer takes or assumes dominion or control over the article of
tangible personal property to which the extended warranty applies, and
includes installation, storage, withdrawal from storage, distribution,
or any other act preparatory to subsequent actual use or consumption of
the article within this state;
(d) With respect to a digital product, the first act within this
state by which the taxpayer, as a consumer, downloads or otherwise
possesses the digital product; and
(e) With respect to a service defined as a retail sale in RCW
82.04.050(2)(g), the first act within this state after the service has
been performed by which the taxpayer, as a consumer, uses the digital
product upon which the service was performed;
(((6))) (7) "Taxpayer" and "purchaser" include all persons included
within the meaning of the word "buyer" and the word "consumer" as
defined in chapters 82.04 and 82.08 RCW;
(((7))) (8)(a)(i) Except as provided in (a)(ii) of this subsection
(((7))) (8), "retailer" means every seller as defined in RCW 82.08.010
and every person engaged in the business of selling tangible personal
property at retail and every person required to collect from purchasers
the tax imposed under this chapter.
(ii) "Retailer" does not include a professional employer
organization when a covered employee coemployed with the client under
the terms of a professional employer agreement engages in activities
that constitute a sale of tangible personal property, extended
warranty, digital product, or a sale of any service defined as a retail
sale in RCW 82.04.050 (2)(a) or (g) or (3)(a) that is subject to the
tax imposed by this chapter. In such cases, the client, and not the
professional employer organization, is deemed to be the retailer and is
responsible for collecting and remitting the tax imposed by this
chapter.
(b) For the purposes of (a) of this subsection, the terms "client,"
"covered employee," "professional employer agreement," and
"professional employer organization" have the same meanings as in RCW
82.04.540;
(((8))) (9) "Extended warranty" has the same meaning as in RCW
82.04.050(7);
(((9))) (10) The meaning ascribed to words and phrases in chapters
82.04 and 82.08 RCW, insofar as applicable, shall have full force and
effect with respect to taxes imposed under the provisions of this
chapter. "Consumer," in addition to the meaning ascribed to it in
chapters 82.04 and 82.08 RCW insofar as applicable, shall also mean any
person who distributes or displays, or causes to be distributed or
displayed, any article of tangible personal property, except
newspapers, the primary purpose of which is to promote the sale of
products or services. With respect to property distributed to persons
within this state by a consumer as defined in this subsection (((9)))
(10), the use of the property shall be deemed to be by such consumer.
Sec. 305 RCW 82.12.020 and 2005 c 514 s 105 are each amended to
read as follows:
(1) There is hereby levied and there shall be collected from every
person in this state a tax or excise for the privilege of using within
this state as a consumer any:
(a) ((Any)) Article of tangible personal property purchased at
retail, or acquired by lease, gift, repossession, or bailment, or
extracted or produced or manufactured by the person so using the same,
or otherwise furnished to a person engaged in any business taxable
under RCW 82.04.280 (2) or (7), including tangible personal property
acquired at a casual or isolated sale, and including byproducts used by
the manufacturer thereof, except as otherwise provided in this chapter,
irrespective of whether the article or similar articles are
manufactured or are available for purchase within this state;
(b) ((any)) Prewritten computer software, regardless of the method
of delivery, but excluding prewritten computer software that is either
provided free of charge or is provided for temporary use in viewing
information, or both; ((or))
(c) ((any)) Services defined as a retail sale in RCW 82.04.050
(2)(a) or (g) or (3)(a);
(d) Extended warranty; or
(e)(i) Digital product.
(ii) With respect to the use of digital products acquired by
purchase, the tax imposed in this subsection (1)(e) applies in respect
to:
(A) Sales in which the seller has granted the purchaser the right
of permanent use;
(B) Sales in which the seller has granted the purchaser a right of
use that is less than permanent;
(C) Sales in which the purchaser is not obligated to make continued
payment as a condition of the sale; and
(D) Sales in which the purchaser is obligated to make continued
payment as a condition of the sale.
(iii) With respect to the use of digital products acquired other
than by purchase, the tax imposed in this subsection (1)(e) applies
regardless of whether or not the consumer has a right of permanent use
or is obligated to make continued payment as a condition of use.
(2) ((This tax shall apply to the use of every extended warranty,
service defined as a retail sale in RCW 82.04.050 (2)(a) or (3)(a), and
the use of every article of tangible personal property, including
property acquired at a casual or isolated sale, and including
byproducts used by the manufacturer thereof, except as hereinafter
provided, irrespective of whether the article or similar articles are
manufactured or are available for purchase within this state.)) The provisions of this chapter do not apply in respect to the
use of any article of tangible personal property, extended warranty,
digital product, or service taxable under RCW 82.04.050 (2)(a) or (g)
or (3)(a), ((
(3)purchased at retail or acquired by lease, gift, or
bailment)) if the sale to, or the use by, the present user or ((his))
the present user's bailor or donor has already been subjected to the
tax under chapter 82.08 RCW or this chapter and the tax has been paid
by the present user or by ((his)) the present user's bailor or donor.
(((4))) (3)(a) Except as provided in this section, payment of the
tax imposed by this chapter or chapter 82.08 RCW by one purchaser or
user of tangible personal property, extended warranty, digital product,
or service ((of the tax imposed by chapter 82.08 or 82.12 RCW shall))
does not have the effect of exempting any other purchaser or user of
the same property, extended warranty, digital product, or service from
the taxes imposed by such chapters.
(b) The tax imposed by this chapter does not apply:
(i) If the sale to, or the use by, the present user or his or her
bailor or donor has already been subjected to the tax under chapter
82.08 RCW or this chapter and the tax has been paid by the present user
or by his or her bailor or donor; ((or))
(ii) In respect to the use of any article of tangible personal
property acquired by bailment and the tax has once been paid based on
reasonable rental as determined by RCW 82.12.060 measured by the value
of the article at time of first use multiplied by the tax rate imposed
by chapter 82.08 RCW or this chapter as of the time of first use;
((or))
(iii) In respect to the use of any article of tangible personal
property acquired by bailment, if the property was acquired by a
previous bailee from the same bailor for use in the same general
activity and the original bailment was prior to June 9, 1961((, the tax
imposed by this chapter does not apply)); or
(iv) To the use of digital goods, which were obtained through the
use of a digital code, if the sale of the digital code to, or the use
of the digital code by, the present user or the present user's bailor
or donor has already been subjected to the tax under chapter 82.08 RCW
or this chapter and the tax has been paid by the present user or by the
present user's bailor or donor.
(((5))) (4)(a) Except as provided in (b) of this subsection (4),
the tax ((shall be)) is levied and must be collected in an amount equal
to the value of the article used, value of the digital product used,
value of the extended warranty used, or value of the service used by
the taxpayer, multiplied by the applicable rates in effect for the
retail sales tax under RCW 82.08.020((, except)).
(b) In the case of a seller required to collect use tax from the
purchaser, the tax ((shall)) must be collected in an amount equal to
the purchase price multiplied by the applicable rate in effect for the
retail sales tax under RCW 82.08.020.
NEW SECTION. Sec. 401 A new section is added to chapter 82.04
RCW to be codified between RCW 82.04.250 and 82.04.310 to read as
follows:
(1) Upon every person engaging within this state in the business of
making sales at retail or wholesale of digital products, as to such
persons, the amount of tax with respect to such business is equal to
the gross proceeds of sales of the business, multiplied by the rate of
0.471 percent in the case of retail sales and by the rate of 0.484
percent in the case of wholesale sales.
(2) For purposes of this section, a person is considered to be
engaging within this state in the business of making sales of digital
products, if the person makes sales of digital products and the sales
are sourced to this state under RCW 82.32.730 for sales tax purposes or
would have been sourced to this state under RCW 82.32.730 if the sale
had been taxable under chapter 82.08 RCW.
(3) A person subject to tax under this section must report the tax
imposed in this chapter in an electronic format provided by the
department.
Sec. 402 RCW 82.04.060 and 2007 c 6 s 1007 are each amended to
read as follows:
"Sale at wholesale" or "wholesale sale" means:
(1) Any sale, which is not a sale at retail, of:
(a) Tangible personal property((, any sale of));
(b) Services defined as a retail sale in RCW 82.04.050(2)(a)((, any
sale of));
(c) Amusement or recreation services as defined in RCW
82.04.050(3)(a)((, any sale of canned software, any sale of an));
(d) Prewritten computer software;
(e) Extended ((warranty)) warranties as defined in RCW
82.04.050(7)((, or any sale of));
(f) Competitive telephone service, ancillary services, or
telecommunications service as those terms are defined in RCW
82.04.065((, which is not a sale at retail));
(g) Digital products; or
(h) Services described in RCW 82.04.050(2)(g); and
(2) Any charge made for labor and services rendered for persons who
are not consumers, in respect to real or personal property, if such
charge is expressly defined as a retail sale by RCW 82.04.050 when
rendered to or for consumers((: PROVIDED, That the term)). For the
purposes of this subsection (2), "real or personal property" ((as used
in this subsection shall)) does not include any natural products named
in RCW 82.04.100.
Sec. 403 RCW 82.04.070 and 1961 c 15 s 82.04.070 are each amended
to read as follows:
"Gross proceeds of sales" means the value proceeding or accruing
from the sale of tangible personal property, digital products, and/or
for services rendered, without any deduction on account of the cost of
property sold, the cost of materials used, labor costs, interest,
discount paid, delivery costs, taxes, or any other expense whatsoever
paid or accrued and without any deduction on account of losses.
Sec. 404 RCW 82.04.110 and 1997 c 453 s 1 are each amended to
read as follows:
(1) Except as otherwise provided in this section, "manufacturer"
means every person who, either directly or by contracting with others
for the necessary labor or mechanical services, manufactures for sale
or for commercial or industrial use from his or her own materials or
ingredients any articles, substances, or commodities.
(2)(a) When the owner of equipment or facilities furnishes, or
sells to the customer prior to manufacture, all or a portion of the
materials that become a part or whole of the manufactured article, the
department shall prescribe equitable rules for determining tax
liability((: PROVIDED, That)).
(b) A person who produces aluminum master alloys is a processor for
hire rather than a manufacturer, regardless of the portion of the
aluminum provided by that person's customer((: PROVIDED FURTHER,
That)). For the purposes of this subsection (2)(b), "aluminum master
alloy" means an alloy registered with the aluminum association as a
grain refiner or a hardener alloy using the American national standards
institute designating system H35.3.
(3) A nonresident of this state who is the owner of materials
processed for it in this state by a processor for hire shall not be
deemed to be engaged in business in this state as a manufacturer
because of the performance of such processing work for it in this
state((: PROVIDED FURTHER, That)).
(4) The owner of materials from which a nuclear fuel assembly is
made for it by a processor for hire shall not be subject to tax under
this chapter as a manufacturer of the fuel assembly.
((For the purposes of this section, "aluminum master alloy" means
an alloy registered with the Aluminum Association as a grain refiner or
a hardener alloy using the American National Standards Institute
designating system H35.3.))
(5) For purposes of this section, the terms "articles,"
"substances," "materials," "ingredients," and "commodities" do not
include digital goods.
Sec. 405 RCW 82.04.120 and 2003 c 168 s 604 are each amended to
read as follows:
"To manufacture" embraces all activities of a commercial or
industrial nature wherein labor or skill is applied, by hand or
machinery, to materials so that as a result thereof a new, different or
useful substance or article of tangible personal property is produced
for sale or commercial or industrial use, and shall include: (1) The
production or fabrication of special made or custom made articles; (2)
the production or fabrication of dental appliances, devices,
restorations, substitutes, or other dental laboratory products by a
dental laboratory or dental technician; (3) cutting, delimbing, and
measuring of felled, cut, or taken trees; and (4) crushing and/or
blending of rock, sand, stone, gravel, or ore.
"To manufacture" shall not include: Conditioning of seed for use
in planting; cubing hay or alfalfa; activities which consist of
cutting, grading, or ice glazing seafood which has been cooked, frozen,
or canned outside this state; the growing, harvesting, or producing of
agricultural products; packing of agricultural products, including
sorting, washing, rinsing, grading, waxing, treating with fungicide,
packaging, chilling, or placing in controlled atmospheric storage; the
production of digital goods; or the production of computer software if
the computer software is delivered from the seller to the purchaser by
means other than tangible storage media, including the delivery by use
of a tangible storage media where the tangible storage media is not
physically transferred to the purchaser.
Sec. 406 RCW 82.04.2907 and 2001 c 320 s 3 are each amended to
read as follows:
(1) Upon every person engaging within this state in the business of
receiving income from royalties or charges in the nature of royalties
for the granting of intangible rights, such as copyrights, licenses,
patents, or franchise fees, the amount of tax with respect to such
business shall be equal to the gross income from royalties or charges
in the nature of royalties from the business multiplied by the rate of
0.484 percent.
(2) For the purposes of this section, "royalties" means
compensation for the use of intangible property, such as copyrights,
patents, licenses, franchises, trademarks, trade names, and similar
items. It does not include compensation for any natural resource
((or)), the licensing of ((canned)) prewritten computer software to the
end user, or the licensing or use of digital products.
Sec. 407 RCW 82.04.297 and 2000 c 103 s 5 are each amended to
read as follows:
(1) The provision of internet ((services)) access is subject to tax
under RCW 82.04.290(2).
(2) "Internet" ((means the international computer network of both
federal and nonfederal interoperable packet switched data networks,
including the graphical subnetwork called the world wide web)) and
"internet access" have the same meaning as those terms are defined in
the federal internet tax freedom act, Title 47 U.S.C. Sec. 151 note, as
existing on July 1, 2009.
(3) (("Internet service" means a service that includes computer
processing applications, provides the user with additional or
restructured information, or permits the user to interact with stored
information through the internet or a proprietary subscriber network.
"Internet service" includes provision of internet electronic mail,
access to the internet for information retrieval, and hosting of
information for retrieval over the internet or the graphical subnetwork
called the world wide web)) Unless the context clearly requires
otherwise, the definitions in this section apply throughout this
chapter.
Sec. 408 RCW 82.04.363 and 1997 c 388 s 1 are each amended to
read as follows:
This chapter does not apply to amounts received by a nonprofit
organization from the sale or furnishing of the following items at a
camp or conference center conducted on property exempt from property
tax under RCW 84.36.030 (1), (2), or (3):
(1) Lodging, conference and meeting rooms, camping facilities,
parking, and similar licenses to use real property;
(2) Food and meals;
(3) Books, tapes, and other products, including books and other
products that are transferred electronically, that are available
exclusively to the participants at the camp, conference, or meeting and
are not available to the public at large.
Sec. 409 RCW 82.04.4282 and 1994 c 124 s 3 are each amended to
read as follows:
In computing tax there may be deducted from the measure of tax
amounts derived from bona fide (1) initiation fees, (2) dues, (3)
contributions, (4) donations, (5) tuition fees, (6) charges made by a
nonprofit trade or professional organization for attending or occupying
space at a trade show, convention, or educational seminar sponsored by
the nonprofit trade or professional organization, which trade show,
convention, or educational seminar is not open to the general public,
(7) charges made for operation of privately operated kindergartens, and
(8) endowment funds. This section ((shall)) may not be construed to
exempt any person, association, or society from tax liability upon
selling tangible personal property, digital products, or upon providing
facilities or services for which a special charge is made to members or
others. If dues are in exchange for any significant amount of goods or
services rendered by the recipient thereof to members without any
additional charge to the member, or if the dues are graduated upon the
amount of goods or services rendered, the value of such goods or
services shall not be considered as a deduction under this section.
Sec. 410 RCW 82.04.470 and 2007 c 6 s 1201 are each amended to
read as follows:
(1) Unless a seller has taken from the buyer a resale certificate,
the burden of proving that a sale ((of tangible personal property, or
of services, was not a sale at retail shall be)) is a wholesale sale
rather than a retail sale is upon the person who made it.
(2) If a seller does not receive a resale certificate at the time
of the sale, have a resale certificate on file at the time of the sale,
or obtain a resale certificate from the buyer within a reasonable time
after the sale, the seller shall remain liable for the tax as provided
in RCW 82.08.050, unless the seller can demonstrate facts and
circumstances according to rules adopted by the department of revenue
that show the sale was properly made without payment of sales tax.
(3) The department may provide by rule for suggested forms for
resale certificates or equivalent documents containing the information
that will be accepted as resale certificates. The department shall
provide by rule the categories of items or services that must be
specified on resale certificates and the business classifications that
may use a blanket resale certificate.
(4) As used in this section, "resale certificate" means
documentation provided by a buyer to a seller stating that the purchase
is for resale in the regular course of business, or that the buyer is
exempt from retail sales tax, and containing the following information:
(a) The name and address of the buyer;
(b) The uniform business identifier or revenue registration number
of the buyer, if the buyer is required to be registered;
(c) The type of business engaged in;
(d) The categories of items or services to be purchased for resale
or that are exempt, unless the buyer presents a blanket resale
certificate;
(e) The date on which the certificate was provided;
(f) A statement that the items or services purchased either: (i)
Are purchased for resale in the regular course of business; or (ii) are
exempt from tax pursuant to statute;
(g) A statement that the buyer acknowledges that the buyer is
solely responsible for purchasing within the categories specified on
the certificate and that misuse of the resale or exemption privilege
claimed on the certificate subjects the buyer to a penalty of fifty
percent of the tax due, in addition to the tax, interest, and any other
penalties imposed by law;
(h) The name of the individual authorized to sign the certificate,
printed in a legible fashion;
(i) The signature of the authorized individual; and
(j) The name of the seller.
(5) Subsection (4)(h), (i), and (j) of this section does not apply
if the certificate is provided in a format other than paper. If the
certificate is provided in a format other than paper, the name of the
individual providing the certificate must be included in the
certificate.
Sec. 411 RCW 82.04.480 and 1975 1st ex.s. c 278 s 44 are each
amended to read as follows:
(1) Every consignee, bailee, factor, or auctioneer having either
actual or constructive possession of ((tangible)) personal property, or
having possession of the documents of title thereto, with power to sell
such ((tangible)) personal property in ((his or its)) that person's own
name and actually so selling, ((shall be)) is deemed the seller of such
((tangible)) personal property within the meaning of this chapter((;
and further,)). Furthermore, the consignor, bailor, principal, or
owner ((shall be)) is deemed a seller of such property to the
consignee, bailee, factor, or auctioneer.
(2) The burden ((shall be upon)) is on the taxpayer in every case
to establish the fact that ((he)) the taxpayer is not engaged in the
business of ((selling tangible personal property)) making retail sales
or wholesale sales but is acting merely as broker or agent in promoting
sales for a principal. Such claim will be allowed only when the
taxpayer's accounting records are kept in such manner as required by
rule by the department ((of revenue shall by general regulation
provide)).
(3) For purposes of this section, "personal property" means
tangible personal property, digital products, and extended warranties.
Sec. 412 RCW 82.04.065 and 2007 c 6 s 1003 are each amended to
read as follows:
(1) "Competitive telephone service" means the providing by any
person of telecommunications equipment or apparatus, or service related
to that equipment or apparatus such as repair or maintenance service,
if the equipment or apparatus is of a type which can be provided by
persons that are not subject to regulation as telephone companies under
Title 80 RCW and for which a separate charge is made.
(2) "Ancillary services" means services that are associated with or
incidental to the provision of "telecommunications services," including
but not limited to "detailed telecommunications billing," "directory
assistance," "vertical service," and "voice mail services."
(3) "Conference-bridging service" means an ancillary service that
links two or more participants of an audio or video conference call and
may include the provision of a telephone number. "Conference-bridging
service" does not include the telecommunications services used to reach
the conference bridge.
(4) "Detailed telecommunications billing service" means an
ancillary service of separately stating information pertaining to
individual calls on a customer's billing statement.
(5) "Directory assistance" means an ancillary service of providing
telephone number information, and/or address information.
(6) "Vertical service" means an ancillary service that is offered
in connection with one or more telecommunications services, that offers
advanced calling features that allow customers to identify callers and
to manage multiple calls and call connections, including conference-bridging services.
(7) "Voice mail service" means an ancillary service that enables
the customer to store, send, or receive recorded messages. "Voice mail
service" does not include any vertical services that the customer may
be required to have in order to use the voice mail service.
(8) "Telecommunications service" means the electronic transmission,
conveyance, or routing of voice, data, audio, video, or any other
information or signals to a point, or between or among points.
"Telecommunications service" includes such transmission, conveyance, or
routing in which computer processing applications are used to act on
the form, code, or protocol of the content for purposes of
transmission, conveyance, or routing without regard to whether such
service is referred to as voice over internet protocol services or is
classified by the federal communications commission as enhanced or
value added. "Telecommunications service" does not include:
(a) Data processing and information services that allow data to be
generated, acquired, stored, processed, or retrieved and delivered by
an electronic transmission to a purchaser where such purchaser's
primary purpose for the underlying transaction is the processed data or
information;
(b) Installation or maintenance of wiring or equipment on a
customer's premises;
(c) Tangible personal property;
(d) Advertising, including but not limited to directory
advertising;
(e) Billing and collection services provided to third parties;
(f) Internet access service;
(g) Radio and television audio and video programming services,
regardless of the medium, including the furnishing of transmission,
conveyance, and routing of such services by the programming service
provider. Radio and television audio and video programming services
include but are not limited to cable service as defined in 47 U.S.C.
Sec. 522(6) and audio and video programming services delivered by
commercial mobile radio service providers, as defined in section 20.3,
Title 47 C.F.R.;
(h) Ancillary services; ((or))
(i) Digital products delivered electronically, including but not
limited to ((software,)) music, video, reading materials, or ring
tones; or
(j) Software delivered electronically.
(9) "800 service" means a telecommunications service that allows a
caller to dial a toll-free number without incurring a charge for the
call. The service is typically marketed under the name "800," "855,"
"866," "877," and "888" toll-free calling, and any subsequent numbers
designated by the federal communications commission.
(10) "900 service" means an inbound toll "telecommunications
service" purchased by a subscriber that allows the subscriber's
customers to call in to the subscriber's prerecorded announcement or
live service. "900 service" does not include the charge for:
Collection services provided by the seller of the telecommunications
services to the subscriber, or services or products sold by the
subscriber to the subscriber's customer. The service is typically
marketed under the name "900" service, and any subsequent numbers
designated by the federal communications commission.
(11) "Fixed wireless service" means a telecommunications service
that provides radio communication between fixed points.
(12) "Mobile wireless service" means a telecommunications service
that is transmitted, conveyed, or routed regardless of the technology
used, whereby the origination and/or termination points of the
transmission, conveyance, or routing are not fixed, including, by way
of example only, telecommunications services that are provided by a
commercial mobile radio service provider.
(13) "Paging service" means a telecommunications service that
provides transmission of coded radio signals for the purpose of
activating specific pagers; these transmissions may include messages
and/or sounds.
(14) "Prepaid calling service" means the right to access
exclusively telecommunications services, which must be paid for in
advance and which enable the origination of calls using an access
number or authorization code, whether manually or electronically
dialed, and that is sold in predetermined units or dollars of which the
number declines with use in a known amount.
(15) "Prepaid wireless calling service" means a telecommunications
service that provides the right to use mobile wireless service as well
as other nontelecommunications services including the download of
digital products delivered electronically, content, and ancillary
services, which must be paid for in advance and that is sold in
predetermined units or dollars of which the number declines with use in
a known amount.
(16) "Private communications service" means a telecommunications
service that entitles the customer to exclusive or priority use of a
communications channel or group of channels between or among
termination points, regardless of the manner in which the channel or
channels are connected, and includes switching capacity, extension
lines, stations, and any other associated services that are provided in
connection with the use of the channel or channels.
(17) "Value-added nonvoice data service" means a service that
otherwise meets the definition of telecommunications services in which
computer processing applications are used to act on the form, content,
code, or protocol of the information or data primarily for a purpose
other than transmission, conveyance, or routing.
(18) "Charges for mobile telecommunications services" means any
charge for, or associated with, the provision of commercial mobile
radio service, as defined in section 20.3, Title 47 C.F.R. as in effect
on June 1, 1999, or any charge for, or associated with, a service
provided as an adjunct to a commercial mobile radio service, regardless
of whether individual transmissions originate or terminate within the
licensed service area of the mobile telecommunications service
provider.
(19) "Customer" means: (a) The person or entity that contracts
with the home service provider for mobile telecommunications services;
or (b) the end user of the mobile telecommunications service, if the
end user of mobile telecommunications services is not the contracting
party, but this subsection (19)(b) applies only for the purpose of
determining the place of primary use. The term does not include a
reseller of mobile telecommunications service, or a serving carrier
under an arrangement to serve the customer outside the home service
provider's licensed service area.
(20) "Designated database provider" means a person representing all
the political subdivisions of the state that is:
(a) Responsible for providing an electronic database prescribed in
4 U.S.C. Sec. 119(a) if the state has not provided an electronic
database; and
(b) Approved by municipal and county associations or leagues of the
state whose responsibility it would otherwise be to provide a database
prescribed by 4 U.S.C. Secs. 116 through 126.
(21) "Enhanced zip code" means a United States postal zip code of
nine or more digits.
(22) "Home service provider" means the facilities-based carrier or
reseller with whom the customer contracts for the provision of mobile
telecommunications services.
(23) "Licensed service area" means the geographic area in which the
home service provider is authorized by law or contract to provide
commercial mobile radio service to the customer.
(24) "Mobile telecommunications service" means commercial mobile
radio service, as defined in section 20.3, Title 47 C.F.R. as in effect
on June 1, 1999.
(25) "Mobile telecommunications service provider" means a home
service provider or a serving carrier.
(26) "Place of primary use" means the street address representative
of where the customer's use of the mobile telecommunications service
primarily occurs, which must be:
(a) The residential street address or the primary business street
address of the customer; and
(b) Within the licensed service area of the home service provider.
(27) "Prepaid telephone calling service" means the right to
purchase exclusively telecommunications services that must be paid for
in advance, that enables the origination of calls using an access
number, authorization code, or both, whether manually or electronically
dialed, if the remaining amount of units of service that have been
prepaid is known by the provider of the prepaid service on a continuous
basis.
(28) "Reseller" means a provider who purchases telecommunications
services from another telecommunications service provider and then
resells, uses as a component part of, or integrates the purchased
services into a mobile telecommunications service. "Reseller" does not
include a serving carrier with whom a home service provider arranges
for the services to its customers outside the home service provider's
licensed service area.
(29) "Serving carrier" means a facilities-based carrier providing
mobile telecommunications service to a customer outside a home service
provider's or reseller's licensed service area.
(30) "Taxing jurisdiction" means any of the several states, the
District of Columbia, or any territory or possession of the United
States, any municipality, city, county, township, parish,
transportation district, or assessment jurisdiction, or other political
subdivision within the territorial limits of the United States with the
authority to impose a tax, charge, or fee.
NEW SECTION. Sec. 501 A new section is added to chapter 82.08
RCW to read as follows:
The tax imposed by RCW 82.08.020 does not apply to the sale of a
digital code for one or more digital goods if the sale of the digital
goods to which the digital code relates is exempt from the tax levied
by RCW 82.08.020.
NEW SECTION. Sec. 502 A new section is added to chapter 82.08
RCW to read as follows:
(1) The tax imposed by RCW 82.08.020 does not apply to sales of
digital products for purposes of consuming the digital products in
producing for sale a new product, where the digital products become an
ingredient or component of the new product. A digital code becomes an
ingredient or component of a new product if the digital good acquired
through the use of the digital code becomes an ingredient or component
of a new product.
(2) The exemption is available only when the buyer provides the
seller with an exemption certificate in a form and manner prescribed by
the department. The seller must retain a copy of the certificate for
the seller's files.
Sec. 503 RCW 82.08.02525 and 1996 c 63 s 1 are each amended to
read as follows:
The tax levied by RCW 82.08.020 ((shall)) does not apply to the
sale of public records by state and local agencies, as the terms are
defined in RCW 42.17.020, that are copied or transferred electronically
under a request for the record for which no fee is charged other than
a statutorily set fee or a fee to reimburse the agency for its actual
costs directly incident to the copying. A request for a record
includes a request for a document not available to the public but
available to those persons who by law are allowed access to the
document, such as requests for fire reports, law enforcement reports,
taxpayer information, and academic transcripts.
Sec. 504 RCW 82.08.0253 and 1980 c 37 s 21 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 ((shall)) does not apply to:
(a) The distribution and newsstand sale of printed newspapers; and
(b) The sale of newspapers transferred electronically, provided
that the electronic version of a printed newspaper:
(i) Shares content with the printed newspaper; and
(ii) Is prominently identified by the same name as the printed
newspaper or otherwise conspicuously indicates that it is a complement
to the printed newspaper.
(2) For purposes of this section, "printed newspaper" means a
publication issued regularly at stated intervals at least twice a month
and printed on newsprint in tabloid or broadsheet format folded loosely
together without stapling, glue, or any other binding of any kind,
including any supplement of a printed newspaper.
Sec. 505 RCW 82.08.02535 and 1995 2nd sp.s. c 8 s 1 are each
amended to read as follows:
The tax levied by RCW 82.08.020 ((shall)) does not apply to ((the))
subscription sales ((and distribution)) of magazines or periodicals
((by subscription)), including magazines and periodicals transferred
electronically to the buyer, for the purposes of fund-raising by (1)
educational institutions as defined in RCW 82.04.170, or (2) nonprofit
organizations engaged in activities primarily for the benefit of boys
and girls nineteen years and younger.
Sec. 506 RCW 82.08.02537 and 1996 c 272 s 2 are each amended to
read as follows:
The tax levied by RCW 82.08.020 ((shall)) does not apply to sales
of academic transcripts by educational institutions, including academic
transcripts transferred electronically.
Sec. 507 RCW 82.08.0256 and 1980 c 37 s 24 are each amended to
read as follows:
The tax levied by RCW 82.08.020 ((shall)) does not apply to sales
(including transfers of title through decree of appropriation)
heretofore or hereafter made of the entire operating property of a
publicly or privately owned public utility, or of a complete operating
integral section thereof, to the state or a political subdivision
thereof for use in conducting any business defined in RCW 82.16.010
(1), (2), (3), (4), (5), (6), (7), (8), (9), (10) or (11). For
purposes of this section, "operating property" includes digital
products.
Sec. 508 RCW 82.08.02565 and 1999 c 211 s 5 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 ((shall)) does not apply to
sales to a manufacturer or processor for hire of machinery and
equipment used directly in a manufacturing operation or research and
development operation, to sales to a person engaged in testing for a
manufacturer or processor for hire of machinery and equipment used
directly in a testing operation, or to sales of or charges made for
labor and services rendered in respect to installing, repairing,
cleaning, altering, or improving the machinery and equipment, but only
when the purchaser provides the seller with an exemption certificate in
a form and manner prescribed by the department by rule. The seller
((shall)) must retain a copy of the certificate for the seller's files.
(2) For purposes of this section and RCW 82.12.02565:
(a) "Machinery and equipment" means industrial fixtures, devices,
and support facilities, and tangible personal property that becomes an
ingredient or component thereof, including repair parts and replacement
parts. "Machinery and equipment" includes pollution control equipment
installed and used in a manufacturing operation, testing operation, or
research and development operation to prevent air pollution, water
pollution, or contamination that might otherwise result from the
manufacturing operation, testing operation, or research and development
operation. "Machinery and equipment" also includes digital products.
(b) "Machinery and equipment" does not include:
(i) Hand-powered tools;
(ii) Property with a useful life of less than one year;
(iii) Buildings, other than machinery and equipment that is
permanently affixed to or becomes a physical part of a building; and
(iv) Building fixtures that are not integral to the manufacturing
operation, testing operation, or research and development operation
that are permanently affixed to and become a physical part of a
building, such as utility systems for heating, ventilation, air
conditioning, communications, plumbing, or electrical.
(c) Machinery and equipment is "used directly" in a manufacturing
operation, testing operation, or research and development operation if
the machinery and equipment:
(i) Acts upon or interacts with an item of tangible personal
property;
(ii) Conveys, transports, handles, or temporarily stores an item of
tangible personal property at the manufacturing site or testing site;
(iii) Controls, guides, measures, verifies, aligns, regulates, or
tests tangible personal property at the site or away from the site;
(iv) Provides physical support for or access to tangible personal
property;
(v) Produces power for, or lubricates machinery and equipment;
(vi) Produces another item of tangible personal property for use in
the manufacturing operation, testing operation, or research and
development operation;
(vii) Places tangible personal property in the container, package,
or wrapping in which the tangible personal property is normally sold or
transported; or
(viii) Is integral to research and development as defined in RCW
82.63.010.
(d) "Manufacturing operation" means the manufacturing of articles,
substances, or commodities for sale as tangible personal property. A
manufacturing operation begins at the point where the raw materials
enter the manufacturing site and ends at the point where the processed
material leaves the manufacturing site. The term also includes that
portion of a cogeneration project that is used to generate power for
consumption within the manufacturing site of which the cogeneration
project is an integral part. The term does not include the production
of electricity by a light and power business as defined in RCW
82.16.010 or the preparation of food products on the premises of a
person selling food products at retail.
(e) "Cogeneration" means the simultaneous generation of electrical
energy and low-grade heat from the same fuel.
(f) "Research and development operation" means engaging in research
and development as defined in RCW 82.63.010 by a manufacturer or
processor for hire.
(g) "Testing" means activities performed to establish or determine
the properties, qualities, and limitations of tangible personal
property.
(h) "Testing operation" means the testing of tangible personal
property for a manufacturer or processor for hire. A testing operation
begins at the point where the tangible personal property enters the
testing site and ends at the point where the tangible personal property
leaves the testing site. The term also includes that portion of a
cogeneration project that is used to generate power for consumption
within the site of which the cogeneration project is an integral part.
The term does not include the production of electricity by a light and
power business as defined in RCW 82.16.010 or the preparation of food
products on the premises of a person selling food products at retail.
Sec. 509 RCW 82.08.0257 and 1980 c 37 s 25 are each amended to
read as follows:
The tax levied by RCW 82.08.020 ((shall)) does not apply to auction
sales made by or through auctioneers of ((tangible)) personal property
(including household goods) ((which have)) that has been used in
conducting a farm activity, when the seller thereof is a farmer and the
sale is held or conducted upon a farm and not otherwise.
Sec. 510 RCW 82.08.0273 and 2007 c 135 s 2 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 ((shall)) does not apply to
sales to nonresidents of this state of tangible personal property and
digital products, when such property is for use outside this state
((when)), and the purchaser (a) is a bona fide resident of a state or
possession or Province of Canada other than the state of Washington and
such state, possession, or Province of Canada does not impose a retail
sales tax or use tax of three percent or more or, if imposing such a
tax, permits Washington residents exemption from otherwise taxable
sales by reason of their residence, and (b) agrees, when requested, to
grant the department of revenue access to such records and other forms
of verification at his or her place of residence to assure that such
purchases are not first used substantially in the state of Washington.
(2) Notwithstanding anything to the contrary in this chapter, if
parts or other tangible personal property are installed by the seller
during the course of repairing, cleaning, altering, or improving motor
vehicles, trailers, or campers and the seller makes a separate charge
for the tangible personal property, the tax levied by RCW 82.08.020
does not apply to the separately stated charge to a nonresident
purchaser for the tangible personal property but only if the separately
stated charge does not exceed either the seller's current publicly
stated retail price for the tangible personal property or, if no
((separately)) publicly stated retail price is available, the seller's
cost for the tangible personal property. However, the exemption
provided by this section does not apply if tangible personal property
is installed by the seller during the course of repairing, cleaning,
altering, or improving motor vehicles, trailers, or campers and the
seller makes a single nonitemized charge for providing the tangible
personal property and service. All of the requirements in subsections
(1) and (3) through (6) of this section apply to this subsection.
(3)(a) Any person claiming exemption from retail sales tax under
the provisions of this section must display proof of his or her current
nonresident status as provided in this section.
(b) Acceptable proof of a nonresident person's status ((shall))
includes one piece of identification such as a valid driver's license
from the jurisdiction in which the out-of-state residency is claimed or
a valid identification card which has a photograph of the holder and is
issued by the out-of-state jurisdiction. Identification under this
subsection (3)(b) must show the holder's residential address and have
as one of its legal purposes the establishment of residency in that
out-of-state jurisdiction.
(4) Nothing in this section requires the vendor to make tax exempt
retail sales to nonresidents. A vendor may choose to make sales to
nonresidents, collect the sales tax, and remit the amount of sales tax
collected to the state as otherwise provided by law. If the vendor
chooses to make a sale to a nonresident without collecting the sales
tax, the vendor shall, in good faith, examine the proof of
nonresidence, determine whether the proof is acceptable under
subsection (3)(b) of this section, and maintain records for each
nontaxable sale which shall show the type of proof accepted, including
any identification numbers where appropriate, and the expiration date,
if any.
(5)(a) Any person making fraudulent statements, which includes the
offer of fraudulent identification or fraudulently procured
identification to a vendor, in order to purchase goods without paying
retail sales tax is guilty of perjury under chapter 9A.72 RCW.
(b) Any person making tax exempt purchases under this section by
displaying proof of identification not his or her own, or counterfeit
identification, with intent to violate the provisions of this section,
is guilty of a misdemeanor and, in addition, ((shall be)) is liable for
the tax and subject to a penalty equal to the greater of one hundred
dollars or the tax due on such purchases.
(6)(a) Any vendor who makes sales without collecting the tax to a
person who does not hold valid identification establishing out-of-state
residency, and any vendor who fails to maintain records of sales to
nonresidents as provided in this section, ((shall be)) is personally
liable for the amount of tax due.
(b) Any vendor who makes sales without collecting the retail sales
tax under this section and who has actual knowledge that the
purchaser's proof of identification establishing out-of-state residency
is fraudulent is guilty of a misdemeanor and, in addition, ((shall be))
is liable for the tax and subject to a penalty equal to the greater of
one thousand dollars or the tax due on such sales. In addition, both
the purchaser and the vendor ((shall be)) are liable for any penalties
and interest assessable under chapter 82.32 RCW.
Sec. 511 RCW 82.08.805 and 2006 c 182 s 3 are each amended to
read as follows:
(1) A person who has paid tax under RCW 82.08.020 for ((tangible))
personal property used at an aluminum smelter, tangible personal
property that will be incorporated as an ingredient or component of
buildings or other structures at an aluminum smelter, or for labor and
services rendered with respect to such buildings, structures, or
((tangible)) personal property, is eligible for an exemption from the
state share of the tax in the form of a credit, as provided in this
section. A person claiming an exemption must pay the tax and may then
take a credit equal to the state share of retail sales tax paid under
RCW 82.08.020. The person shall submit information, in a form and
manner prescribed by the department, specifying the amount of
qualifying purchases or acquisitions for which the exemption is claimed
and the amount of exempted tax.
(2) For the purposes of this section, "aluminum smelter" has the
same meaning as provided in RCW 82.04.217.
(3) Credits may not be claimed under this section for taxable
events occurring on or after January 1, 2012.
Sec. 512 RCW 82.08.995 and 2007 c 381 s 2 are each amended to
read as follows:
(1) The tax imposed by RCW 82.08.020 does not apply to sales of
((tangible)) personal property and services provided by a public
corporation, commission, or authority created under RCW 35.21.660 or
35.21.730 to an eligible entity.
(2) For purposes of this section, "eligible entity" means a limited
liability company, a limited partnership, or a single asset entity,
described in RCW 82.04.615.
NEW SECTION. Sec. 601 A new section is added to chapter 82.12
RCW to read as follows:
The provisions of this chapter do not apply in respect to the use
of a digital code for one or more digital goods, if the use of the
digital goods to which the digital code relates is exempt from the tax
levied by RCW 82.12.020.
NEW SECTION. Sec. 602 A new section is added to chapter 82.12
RCW to read as follows:
The provisions of this chapter do not apply to the use of digital
products for purposes of consuming the digital products in producing
for sale a new product, where the digital products become an ingredient
or component of the new product. A digital code becomes an ingredient
or component of a new product if the digital good acquired through the
use of the digital code becomes an ingredient or component of a new
product.
NEW SECTION. Sec. 603 A new section is added to chapter 82.12
RCW to read as follows:
(1) The provisions of this chapter do not apply in respect to the
use of digital goods that are:
(a) Of a noncommercial nature, such as personal e-mail
communications;
(b) Created solely for an internal audience; or
(c) Created solely for the business needs of the person who created
the digital good and is not the type of digital good that is offered
for sale, including business e-mail communications.
(2) This section does not apply to the use of any digital goods
purchased by the user, the user's donor, or anybody on the user's
behalf.
Sec. 604 RCW 82.12.0251 and 2005 c 514 s 106 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use:
(1) Of any article of tangible personal property, ((and)) or
digital product, and any services that were rendered in respect to such
property, brought into the state of Washington by a nonresident thereof
for his or her use or enjoyment while temporarily within the state of
Washington unless such property is used in conducting a nontransitory
business activity within the state of Washington;
(2) By a nonresident of Washington of a motor vehicle or trailer
which is registered or licensed under the laws of the state of his or
her residence, and which is not required to be registered or licensed
under the laws of Washington, including motor vehicles or trailers
exempt pursuant to a declaration issued by the department of licensing
under RCW 46.85.060, and services rendered outside the state of
Washington in respect to such property;
(3) Of household goods, including digital products, personal
effects, ((and)) private motor vehicles, and services rendered in
respect to such property, by a bona fide resident of Washington, or
nonresident members of the armed forces who are stationed in Washington
pursuant to military orders, if such articles and services were
acquired and used by such person in another state while a bona fide
resident thereof and such acquisition and use occurred more than ninety
days prior to the time he or she entered Washington. For purposes of
this subsection, private motor vehicles do not include motor homes;
(4) Of an extended warranty, to the extent that the property
covered by the extended warranty is exempt under this section from the
tax imposed under this chapter.
For purposes of this section, "state" means a state of the United
States, any political subdivision thereof, the District of Columbia,
and any foreign country or political subdivision thereof, and
"services" means services defined as retail sales in RCW 82.04.050(2)
(a) or (g).
Sec. 605 RCW 82.12.02525 and 1996 c 63 s 2 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply with respect
to the use of public records sold by state and local agencies, as the
terms are defined in RCW 42.17.020, including public records
transferred electronically that are obtained under a request for the
record for which no fee is charged other than a statutorily set fee or
a fee to reimburse the agency for its actual costs directly incident to
the copying. A request for a record includes a request for a document
not available to the public but available to those persons who by law
are allowed access to the document, such as requests for fire reports,
law enforcement reports, taxpayer information, and academic
transcripts.
Sec. 606 RCW 82.12.0255 and 2005 c 514 s 107 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of any article of tangible personal property, extended
warranty, digital product, or service which the state is prohibited
from taxing under the Constitution of the state or under the
Constitution or laws of the United States.
Sec. 607 RCW 82.12.0257 and 1980 c 37 s 57 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of any article of ((tangible)) personal property included
within the transfer of the title to the entire operating property of a
publicly or privately owned public utility, or of a complete operating
integral section thereof, by the state or a political subdivision
thereof in conducting any business defined in RCW 82.16.010 (1), (2),
(3), (4), (5), (6), (7), (8), (9), (10), or (11). For the purposes of
this section, "operating property" includes digital products.
Sec. 608 RCW 82.12.0258 and 1980 c 37 s 58 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of ((tangible)) personal property (including household goods)
((which have)) that has been used in conducting a farm activity, if
such property was purchased from a farmer at an auction sale held or
conducted by an auctioneer upon a farm and not otherwise.
Sec. 609 RCW 82.12.0259 and 2003 c 5 s 7 are each amended to read
as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of ((tangible)) personal property or the use of services
defined in RCW 82.04.050(2) (a) or (g) by corporations ((which)) that
have been incorporated under any act of the congress of the United
States and whose principal purposes are to furnish volunteer aid to
members of the armed forces of the United States and also to carry on
a system of national and international relief and to apply the same in
mitigating the sufferings caused by pestilence, famine, fire, flood,
and other national calamities and to devise and carry on measures for
preventing the same.
Sec. 610 RCW 82.12.02595 and 2004 c 155 s 1 are each amended to
read as follows:
(1) This chapter does not apply to the use by a nonprofit
charitable organization or state or local governmental entity of ((any
item of tangible)) personal property that has been donated to the
nonprofit charitable organization or state or local governmental
entity, or to the subsequent use of the property by a person to whom
the property is donated or bailed in furtherance of the purpose for
which the property was originally donated.
(2) This chapter does not apply to the donation of ((tangible))
personal property without intervening use to a nonprofit charitable
organization, or to the incorporation of tangible personal property
without intervening use into real or personal property of or for a
nonprofit charitable organization in the course of installing,
repairing, cleaning, altering, imprinting, improving, constructing, or
decorating the real or personal property for no charge.
(3) This chapter does not apply to the use by a nonprofit
charitable organization of labor and services rendered in respect to
installing, repairing, cleaning, altering, imprinting, or improving
personal property provided to the charitable organization at no charge,
or to the donation of such services.
(4) This chapter does not apply to the donation of amusement and
recreation services without intervening use to a nonprofit organization
or state or local governmental entity, to the use by a nonprofit
organization or state or local governmental entity of amusement and
recreation services, or to the subsequent use of the services by a
person to whom the services are donated or bailed in furtherance of the
purpose for which the services were originally donated. As used in
this subsection, "amusement and recreation services" has the meaning in
RCW 82.04.050(3)(a).
Sec. 611 RCW 82.12.0272 and 1980 c 37 s 70 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of ((tangible)) personal property held for sale and displayed
in single trade shows for a period not in excess of thirty days, the
primary purpose of which is to promote the sale of products or
services.
Sec. 612 RCW 82.12.0284 and 2007 c 54 s 15 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of computers, computer components, computer accessories, ((or))
computer software, or digital products, irrevocably donated to any
public or private nonprofit school or college, as defined under chapter
84.36 RCW, in this state. For purposes of this section, "computer" and
"computer software" have the same meaning as in RCW 82.04.215.
Sec. 613 RCW 82.12.0315 and 2003 c 5 s 10 are each amended to
read as follows:
(1) The provisions of this chapter shall not apply in respect to
the use of:
(a) Production equipment rented to a motion picture or video
production business;
(b) Production equipment acquired and used by a motion picture or
video production business in another state, if the acquisition and use
occurred more than ninety days before the time the motion picture or
video production business entered this state; and
(c) Production services that are within the scope of RCW
82.04.050(2) (a) or (g) and are sold to a motion picture or video
production business.
(2) As used in this section, "production equipment," "production
services," and "motion picture or video production business" have the
meanings given in RCW 82.08.0315.
(3) The exemption provided for in this section shall not apply to
the use of production equipment rented to, or production equipment or
production services that are within the scope of RCW 82.04.050(2) (a)
or (g) acquired and used by, a motion picture or video production
business that is engaged, to any degree, in the production of erotic
material, as defined in RCW 9.68.050.
Sec. 614 RCW 82.12.0345 and 1994 c 124 s 11 are each amended to
read as follows:
The tax imposed by RCW 82.12.020 ((shall)) does not apply in
respect to the use of:
(1) Printed newspapers as defined in RCW 82.08.0253; and
(2) Newspapers transferred electronically, provided that the
electronic version of a printed newspaper:
(a) Shares content with the printed newspaper; and
(b) Is prominently identified by the same name as the printed
newspaper or otherwise conspicuously indicates that it is a complement
to the printed newspaper.
Sec. 615 RCW 82.12.0347 and 1996 c 272 s 3 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of academic transcripts, including academic transcripts
transferred electronically.
Sec. 616 RCW 82.12.805 and 2006 c 182 s 4 are each amended to
read as follows:
(1) A person who is subject to tax under RCW 82.12.020 for
((tangible)) personal property used at an aluminum smelter, or for
tangible personal property that will be incorporated as an ingredient
or component of buildings or other structures at an aluminum smelter,
or for labor and services rendered with respect to such buildings,
structures, or ((tangible)) personal property, is eligible for an
exemption from the state share of the tax in the form of a credit, as
provided in this section. The amount of the credit shall be equal to
the state share of use tax computed to be due under RCW 82.12.020. The
person shall submit information, in a form and manner prescribed by the
department, specifying the amount of qualifying purchases or
acquisitions for which the exemption is claimed and the amount of
exempted tax.
(2) For the purposes of this section, "aluminum smelter" has the
same meaning as provided in RCW 82.04.217.
(3) Credits may not be claimed under this section for taxable
events occurring on or after January 1, 2012.
Sec. 617 RCW 82.12.860 and 2006 c 11 s 1 are each amended to read
as follows:
(1) This chapter does not apply to state credit unions with respect
to the use of any article of tangible personal property, digital
product, service defined as a retail sale in RCW 82.04.050 (2)(a) or
(g) or (3)(a), or extended warranty, acquired from a federal credit
union, foreign credit union, or out-of-state credit union as a result
of a merger or conversion.
(2) For purposes of this section, the following definitions apply:
(a) "Federal credit union" means a credit union organized and
operating under the laws of the United States.
(b) "Foreign credit union" means a credit union organized and
operating under the laws of another country or other foreign
jurisdiction.
(c) "Out-of-state credit union" means a credit union organized and
operating under the laws of another state or United States territory or
possession.
(d) "State credit union" means a credit union organized and
operating under the laws of this state.
Sec. 618 RCW 82.12.995 and 2007 c 381 s 3 are each amended to
read as follows:
(1) The provisions of this chapter do not apply with respect to the
use of ((tangible)) personal property and services provided by a public
corporation, commission, or authority created under RCW 35.21.660 or
35.21.730 to an eligible entity.
(2) For purposes of this section, "eligible entity" means a limited
liability company, a limited partnership, or a single asset entity,
described in RCW 82.04.615.
Sec. 701 RCW 82.32.730 and 2008 c 324 s 1 are each amended to
read as follows:
(1) Except as provided in subsections (5) through (7) of this
section, for purposes of collecting or paying sales or use taxes to the
appropriate jurisdictions, all sales at retail shall be sourced in
accordance with this subsection and subsections (2) through (4) of this
section.
(a) When tangible personal property, an extended warranty, a
digital product, or a service defined as a retail sale under RCW
82.04.050 is received by the purchaser at a business location of the
seller, the sale is sourced to that business location.
(b) When the tangible personal property, extended warranty, digital
product, or a service defined as a retail sale under RCW 82.04.050 is
not received by the purchaser at a business location of the seller, the
sale is sourced to the location where receipt by the purchaser or the
purchaser's donee, designated as such by the purchaser, occurs,
including the location indicated by instructions for delivery to the
purchaser or donee, known to the seller.
(c) When (a) and (b) of this subsection do not apply, the sale is
sourced to the location indicated by an address for the purchaser that
is available from the business records of the seller that are
maintained in the ordinary course of the seller's business when use of
this address does not constitute bad faith.
(d) When (a), (b), and (c) of this subsection do not apply, the
sale is sourced to the location indicated by an address for the
purchaser obtained during the consummation of the sale, including the
address of a purchaser's payment instrument, if no other address is
available, when use of this address does not constitute bad faith.
(e) When (a), (b), (c), or (d) of this subsection do not apply,
including the circumstance where the seller is without sufficient
information to apply those provisions, then the location shall be
determined by the address from which tangible personal property was
shipped, from which the digital good or digital code or the computer
software delivered electronically was first available for transmission
by the seller, or from which the extended warranty or service defined
as a retail sale under RCW 82.04.050 was provided, disregarding for
these purposes any location that merely provided the digital transfer
of the product sold.
(2) The lease or rental of tangible personal property, other than
property identified in subsection (3) or (4) of this section, shall be
sourced as provided in this subsection.
(a) For a lease or rental that requires recurring periodic
payments, the first periodic payment is sourced the same as a retail
sale in accordance with subsection (1) of this section. Periodic
payments made subsequent to the first payment are sourced to the
primary property location for each period covered by the payment. The
primary property location shall be as indicated by an address for the
property provided by the lessee that is available to the lessor from
its records maintained in the ordinary course of business, when use of
this address does not constitute bad faith. The property location is
not altered by intermittent use at different locations, such as use of
business property that accompanies employees on business trips and
service calls.
(b) For a lease or rental that does not require recurring periodic
payments, the payment is sourced the same as a retail sale in
accordance with subsection (1) of this section.
(c) This subsection (2) does not affect the imposition or
computation of sales or use tax on leases or rentals based on a lump
sum or accelerated basis, or on the acquisition of property for lease.
(3) The lease or rental of motor vehicles, trailers, semitrailers,
or aircraft that do not qualify as transportation equipment shall be
sourced as provided in this subsection.
(a) For a lease or rental that requires recurring periodic
payments, each periodic payment is sourced to the primary property
location. The primary property location is as indicated by an address
for the property provided by the lessee that is available to the lessor
from its records maintained in the ordinary course of business, when
use of this address does not constitute bad faith. This location is
not altered by intermittent use at different locations.
(b) For a lease or rental that does not require recurring periodic
payments, the payment is sourced the same as a retail sale in
accordance with subsection (1) of this section.
(c) This subsection does not affect the imposition or computation
of sales or use tax on leases or rentals based on a lump sum or
accelerated basis, or on the acquisition of property for lease.
(4) The retail sale, including lease or rental, of transportation
equipment shall be sourced the same as a retail sale in accordance with
subsection (1) of this section.
(5)(a) A purchaser of direct mail that is not a holder of a direct
pay permit shall provide to the seller in conjunction with the purchase
either a direct mail form or information that shows the jurisdictions
to which the direct mail is delivered to recipients.
(i) Upon receipt of the direct mail form, the seller is relieved of
all obligations to collect, pay, or remit the applicable tax and the
purchaser is obligated to pay or remit the applicable tax on a direct
pay basis. A direct mail form shall remain in effect for all future
sales of direct mail by the seller to the purchaser until it is revoked
in writing.
(ii) Upon receipt of information from the purchaser showing the
jurisdictions to which the direct mail is delivered to recipients, the
seller shall collect the tax according to the delivery information
provided by the purchaser. In the absence of bad faith, the seller is
relieved of any further obligation to collect tax on any transaction
where the seller has collected tax pursuant to the delivery information
provided by the purchaser.
(b) If the purchaser of direct mail does not have a direct pay
permit and does not provide the seller with either a direct mail form
or delivery information as required by (a) of this subsection, the
seller shall collect the tax according to subsection (1)(e) of this
section. This subsection does not limit a purchaser's obligation for
sales or use tax to any state to which the direct mail is delivered.
(c) If a purchaser of direct mail provides the seller with
documentation of direct pay authority, the purchaser is not required to
provide a direct mail form or delivery information to the seller.
(6) The following are sourced to the location at or from which
delivery is made to the consumer:
(a) A retail sale of watercraft;
(b) A retail sale of a modular home, manufactured home, or mobile
home;
(c) A retail sale, excluding the lease and rental, of a motor
vehicle, trailer, semitrailer, or aircraft, that do not qualify as
transportation equipment; and
(d) Florist sales. In the case of a sale in which one florist
takes an order from a customer and then communicates that order to
another florist who delivers the items purchased to the place
designated by the customer, the location at or from which the delivery
is made to the consumer is deemed to be the location of the florist
originally taking the order.
(7) A retail sale of the providing of telecommunications services
or ancillary services, as those terms are defined in RCW 82.04.065,
shall be sourced in accordance with RCW 82.32.520.
(8) The definitions in this subsection apply throughout this
section.
(a) "Delivered electronically" means delivered to the purchaser by
means other than tangible storage media.
(b) "Direct mail" means printed material delivered or distributed
by United States mail or other delivery service to a mass audience or
to addressees on a mailing list provided by the purchaser or at the
direction of the purchaser when the cost of the items are not billed
directly to the recipients. "Direct mail" includes tangible personal
property supplied directly or indirectly by the purchaser to the direct
mail seller for inclusion in the package containing the printed
material. "Direct mail" does not include multiple items of printed
material delivered to a single address.
(c) "Florist sales" means the retail sale of tangible personal
property by a florist. For purposes of this subsection (8)(c),
"florist" means a person whose primary business activity is the retail
sale of fresh cut flowers, potted ornamental plants, floral
arrangements, floral bouquets, wreaths, or any similar products, used
for decorative and not landscaping purposes.
(d) "Receive" and "receipt" mean taking possession of tangible
personal property, making first use of services, or taking possession
or making first use of digital goods or digital codes, whichever comes
first. "Receive" and "receipt" do not include possession by a shipping
company on behalf of the purchaser.
(e) "Transportation equipment" means:
(i) Locomotives and railcars that are used for the carriage of
persons or property in interstate commerce;
(ii) Trucks and truck tractors with a gross vehicle weight rating
of ten thousand one pounds or greater, trailers, semitrailers, or
passenger buses that are:
(A) Registered through the international registration plan; and
(B) Operated under authority of a carrier authorized and
certificated by the United States department of transportation or
another federal authority to engage in the carriage of persons or
property in interstate commerce;
(iii) Aircraft that are operated by air carriers authorized and
certificated by the United States department of transportation or
another federal or foreign authority to engage in the carriage of
persons or property in interstate or foreign commerce; or
(iv) Containers designed for use on and component parts attached or
secured on the items described in (e)(i) through (iii) of this
subsection.
(9) In those instances where there is no obligation on the part of
a seller to collect or remit this state's sales or use tax, the use of
tangible personal property, digital product, or of a service, subject
to use tax, is sourced to the place of first use in this state. The
definition of use in RCW 82.12.010 applies to this subsection.
Sec. 801 RCW 35.21.717 and 2004 c 154 s 1 are each amended to
read as follows:
((Until July 1, 2006, a city or town may not impose any new taxes
or fees specific to internet service providers.)) A city or town may
tax internet ((service)) access providers under generally applicable
business taxes or fees, at a rate not to exceed the rate applied to a
general service classification. For the purposes of this section,
"internet ((service)) access" has the same meaning as in RCW 82.04.297.
Sec. 802 RCW 48.14.080 and 2006 c 278 s 2 are each amended to
read as follows:
(1) As to insurers, other than title insurers and taxpayers under
RCW 48.14.0201, the taxes imposed by this title shall be in lieu of all
other taxes, except as otherwise provided in this section.
(2) Subsection (1) of this section does not apply with respect to:
(a) Taxes on real and tangible personal property;
(b) Excise taxes on the sale, purchase, use, or possession of (i)
real property; (ii) tangible personal property; (iii) extended
warranties; ((and)) (iv) services; and (v) digital products as defined
in section 201 of this act; and
(c) The tax imposed in RCW 82.04.260(10), regarding public and
nonprofit hospitals.
(3) For the purposes of this section, the term "taxes" includes
taxes imposed by the state or any county, city, town, municipal
corporation, quasi-municipal corporation, or other political
subdivision.
Sec. 803 RCW 82.02.020 and 2008 c 113 s 2 are each amended to
read as follows:
Except only as expressly provided in chapters 67.28, 81.104, and
82.14 RCW, the state preempts the field of imposing retail sales and
use taxes and taxes upon ((retail sales of tangible personal property,
the use of tangible personal property,)) parimutuel wagering authorized
pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county,
town, or other municipal subdivision shall have the right to impose
taxes of that nature. Except as provided in RCW 64.34.440 and
82.02.050 through 82.02.090, no county, city, town, or other municipal
corporation shall impose any tax, fee, or charge, either direct or
indirect, on the construction or reconstruction of residential
buildings, commercial buildings, industrial buildings, or on any other
building or building space or appurtenance thereto, or on the
development, subdivision, classification, or reclassification of land.
However, this section does not preclude dedications of land or
easements within the proposed development or plat which the county,
city, town, or other municipal corporation can demonstrate are
reasonably necessary as a direct result of the proposed development or
plat to which the dedication of land or easement is to apply.
This section does not prohibit voluntary agreements with counties,
cities, towns, or other municipal corporations that allow a payment in
lieu of a dedication of land or to mitigate a direct impact that has
been identified as a consequence of a proposed development,
subdivision, or plat. A local government shall not use such voluntary
agreements for local off-site transportation improvements within the
geographic boundaries of the area or areas covered by an adopted
transportation program authorized by chapter 39.92 RCW. Any such
voluntary agreement is subject to the following provisions:
(1) The payment shall be held in a reserve account and may only be
expended to fund a capital improvement agreed upon by the parties to
mitigate the identified, direct impact;
(2) The payment shall be expended in all cases within five years of
collection; and
(3) Any payment not so expended shall be refunded with interest to
be calculated from the original date the deposit was received by the
county and at the same rate applied to tax refunds pursuant to RCW
84.69.100; however, if the payment is not expended within five years
due to delay attributable to the developer, the payment shall be
refunded without interest.
No county, city, town, or other municipal corporation shall require
any payment as part of such a voluntary agreement which the county,
city, town, or other municipal corporation cannot establish is
reasonably necessary as a direct result of the proposed development or
plat.
Nothing in this section prohibits cities, towns, counties, or other
municipal corporations from collecting reasonable fees from an
applicant for a permit or other governmental approval to cover the cost
to the city, town, county, or other municipal corporation of processing
applications, inspecting and reviewing plans, or preparing detailed
statements required by chapter 43.21C RCW.
This section does not limit the existing authority of any county,
city, town, or other municipal corporation to impose special
assessments on property specifically benefitted thereby in the manner
prescribed by law.
Nothing in this section prohibits counties, cities, or towns from
imposing or permits counties, cities, or towns to impose water, sewer,
natural gas, drainage utility, and drainage system charges((:
PROVIDED, That)). However, no such charge shall exceed the
proportionate share of such utility or system's capital costs which the
county, city, or town can demonstrate are attributable to the property
being charged((: PROVIDED FURTHER, That)). Furthermore, these
provisions ((shall)) may not be interpreted to expand or contract any
existing authority of counties, cities, or towns to impose such
charges.
Nothing in this section prohibits a transportation benefit district
from imposing fees or charges authorized in RCW 36.73.120 nor prohibits
the legislative authority of a county, city, or town from approving the
imposition of such fees within a transportation benefit district.
Nothing in this section prohibits counties, cities, or towns from
imposing transportation impact fees authorized pursuant to chapter
39.92 RCW.
Nothing in this section prohibits counties, cities, or towns from
requiring property owners to provide relocation assistance to tenants
under RCW 59.18.440 and 59.18.450.
Nothing in this section limits the authority of counties, cities,
or towns to implement programs consistent with RCW 36.70A.540, nor to
enforce agreements made pursuant to such programs.
This section does not apply to special purpose districts formed and
acting pursuant to Title((s)) 54, 57, or 87 RCW, nor is the authority
conferred by these titles affected.
Sec. 804 RCW 82.04.44525 and 2008 c 81 s 9 are each amended to
read as follows:
(1) Subject to the limits in this section, an eligible person is
allowed a credit against the tax due under this chapter. The credit is
based on qualified employment positions in eligible areas. The credit
is available to persons who are engaged in international services as
defined in this section. In order to receive the credit, the
international service activities must take place at a business within
the eligible area.
(2)(a) The credit shall equal three thousand dollars for each
qualified employment position created after July 1, 1998, in an
eligible area. A credit is earned for the calendar year the person is
hired to fill the position, plus the four subsequent consecutive years,
if the position is maintained for those four years.
(b) Credit may not be taken for hiring of persons into positions
that exist on July 1, 1998. Credit is authorized for new employees
hired for new positions created after July 1, 1998. New positions
filled by existing employees are eligible for the credit under this
section only if the position vacated by the existing employee is filled
by a new hire.
(c) When a position is newly created, if it is filled before July
1st, this position is eligible for the full yearly credit. If it is
filled after June 30th, this position is eligible for half of the
credit.
(d) Credit may be accrued and carried over until it is used. No
refunds may be granted for credits under this section.
(3) For the purposes of this section:
(a) "Eligible area" means: (i) A community empowerment zone under
RCW 43.31C.020; or (ii) a contiguous group of census tracts that meets
the unemployment and poverty criteria of RCW 43.31C.030 and is
designated under subsection (4) of this section;
(b) "Eligible person" means a person, as defined in RCW 82.04.030,
who in an eligible area at a specific location is engaged in the
business of providing international services;
(c)(i) "International services" means the provision of a service,
as defined under (c)(iii) of this subsection, that is subject to tax
under RCW 82.04.290 (2) or (3), and either:
(A) Is for a person domiciled outside the United States; or
(B) The service itself is for use primarily outside of the United
States.
(ii) "International services" excludes any service taxable under
RCW 82.04.290(1).
(iii) Eligible services are: Computer; data processing;
information; legal; accounting and tax preparation; engineering;
architectural; business consulting; business management; public
relations and advertising; surveying; geological consulting; real
estate appraisal; or financial services. For the purposes of this
section these services mean the following:
(A) "Computer services" are services such as computer programming,
custom software modification, customization of canned software, custom
software installation, custom software maintenance, custom software
repair, training in the use of software, computer systems design, and
custom software update services;
(B) "Data processing services" are services such as word
processing, data entry, data retrieval, data search, information
compilation, payroll processing, business accounts processing, data
production, and other computerized data and information storage or
manipulation. "Data processing services" also includes the use of a
computer or computer time for data processing whether the processing is
performed by the provider of the computer or by the purchaser or other
beneficiary of the service;
(C) "Information services" are services such as electronic data
retrieval or research that entails furnishing financial or legal
information, data or research, internet ((service)) access as defined
in RCW 82.04.297, general or specialized news, or current information;
(D) "Legal services" are services such as representation by an
attorney, or other person when permitted, in an administrative or legal
proceeding, legal drafting, paralegal services, legal research
services, and court reporting services, arbitration, and mediation
services;
(E) "Accounting and tax preparation services" are services such as
accounting, auditing, actuarial, bookkeeping, or tax preparation
services;
(F) "Engineering services" are services such as civil, electrical,
mechanical, petroleum, marine, nuclear, and design engineering, machine
designing, machine tool designing, and sewage disposal system designing
services;
(G) "Architectural services" are services such as structural or
landscape design or architecture, interior design, building design,
building program management, and space planning services;
(H) "Business consulting services" are services such as primarily
providing operating counsel, advice, or assistance to the management or
owner of any business, private, nonprofit, or public organization,
including but not limited to those in the following areas:
Administrative management consulting; general management consulting;
human resource consulting or training; management engineering
consulting; management information systems consulting; manufacturing
management consulting; marketing consulting; operations research
consulting; personnel management consulting; physical distribution
consulting; site location consulting; economic consulting; motel,
hotel, and resort consulting; restaurant consulting; government affairs
consulting; and lobbying;
(I) "Business management services" are services such as
administrative management, business management, and office management.
"Business management services" does not include property management or
property leasing, motel, hotel, and resort management, or automobile
parking management;
(J) "Public relations and advertising services" are services such
as layout, art direction, graphic design, copy writing, mechanical
preparation, opinion research, marketing research, marketing, or
production supervision;
(K) "Surveying services" are services such as land surveying;
(L) "Geological consulting services" are services rendered for the
oil, gas, and mining industry and other earth resource industries, and
other services such as soil testing;
(M) "Real estate appraisal services" are services such as market
appraisal and other real estate valuation; and
(N) "Financial services" are services such as banking, loan,
security, investment management, investment advisory, mortgage
servicing, contract collection, and finance leasing services, engaged
in by financial businesses, or businesses similar to or in competition
with financial businesses; and
(d) "Qualified employment position" means a permanent full-time
position to provide international services. If an employee is either
voluntarily or involuntarily separated from employment, the employment
position is considered filled on a full-time basis if the employer is
either training or actively recruiting a replacement employee.
(4) By ordinance, the legislative authority of a city, or
legislative authorities of contiguous cities by ordinance of each
city's legislative authority, with population greater than eighty
thousand, located in a county containing no community empowerment zones
as designated under RCW 43.31C.020, may designate a contiguous group of
census tracts within the city or cities as an eligible area under this
section. Each of the census tracts must meet the unemployment and
poverty criteria of RCW 43.31C.030. Upon making the designation, the
city or cities shall transmit to the department of revenue a
certification letter and a map, each explicitly describing the
boundaries of the census tract. This designation must be made by
December 31, 1998.
(5) No application is necessary for the tax credit. The person
must keep records necessary for the department to verify eligibility
under this section. This information includes:
(a) Employment records for the previous six years;
(b) Information relating to description of international service
activity engaged in at the eligible location by the person; and
(c) Information relating to customers of international service
activity engaged in at that location by the person.
(6) If at any time the department finds that a person is not
eligible for tax credit under this section, the amount of taxes for
which a credit has been used shall be immediately due. The department
shall assess interest, but not penalties, on the credited taxes for
which the person is not eligible. The interest shall be assessed at
the rate provided for delinquent excise taxes under chapter 82.32 RCW,
shall be assessed retroactively to the date the tax credit was taken,
and shall accrue until the taxes for which a credit has been used are
repaid.
(7) The employment security department shall provide to the
department of revenue such information needed by the department of
revenue to verify eligibility under this section.
Sec. 805 RCW 82.08.040 and 1975 1st ex.s. c 278 s 46 are each
amended to read as follows:
(1) Every consignee, bailee, factor, or auctioneer ((authorized,
engaged, or employed to sell or call)) selling or calling for bids on
((tangible)) personal property belonging to another, ((and so selling
or calling, shall be)) is deemed the seller of such ((tangible))
personal property within the meaning of this chapter ((and)). All
sales made by such persons are subject to ((its)) the provisions of
this chapter even though the sale would have been exempt from the tax
((hereunder)) imposed in this chapter had it been made directly by the
owner of the property sold.
(2)(a) Except as provided in (b) of this subsection (2), every
consignee, bailee, factor, or auctioneer ((shall)) must collect and
remit the amount of tax due under this chapter with respect to sales
made or called by ((him: PROVIDED,)) that seller.
(b) If the owner of the property sold is engaged in the business of
((selling tangible personal property)) making sales at retail in this
state, the tax imposed under this chapter may be remitted by such owner
under such rules ((and regulations)) as the department ((of revenue
shall prescribe)) may adopt.
Sec. 806 RCW 82.08.130 and 1993 sp.s. c 25 s 702 are each amended
to read as follows:
(1) If a buyer normally is engaged in both consuming and reselling
certain types of ((articles of tangible)) personal property, the retail
sale of which is taxable under this chapter, and the buyer is not able
to determine at the time of purchase whether the particular property
acquired will be consumed or resold, the buyer may use a resale
certificate for the entire purchase if the buyer principally resells
the articles according to the general nature of the buyer's business.
The buyer shall account for the value of any articles purchased with a
resale certificate that are used by the buyer and remit the sales tax
on the articles to the department.
(2) A buyer who pays a tax on all purchases and subsequently
resells an article at retail, without intervening use by the buyer,
shall collect the tax from the purchaser as otherwise provided by law
and is entitled to a deduction on the buyer's tax return equal to the
cost to the buyer of the property resold upon which retail sales tax
has been paid. The deduction is allowed only if the taxpayer keeps and
preserves records that show the names of the persons from whom the
articles were purchased, the date of the purchase, the type of
articles, the amount of the purchase, and the tax that was paid. The
department shall provide by rule for the refund or credit of retail
sales tax paid by a buyer for purchases that are later sold at
wholesale without intervening use by the buyer.
Sec. 807 RCW 82.12.035 and 2007 c 6 s 1203 are each amended to
read as follows:
A credit ((shall be)) is allowed against the taxes imposed by this
chapter upon the use in this state of tangible personal property,
extended warranty, digital product, or services ((taxable under))
defined as a retail sale in RCW 82.04.050 (2)(a) or (g) or (3)(a), in
the ((state of Washington in the)) amount that the present user thereof
or his or her bailor or donor has paid a legally imposed retail sales
or use tax with respect to such property, extended warranty, digital
product, or service defined as a retail sale in RCW 82.04.050 (2)(a) or
(g) or (3)(a) to any other state, possession, territory, or
commonwealth of the United States, any political subdivision thereof,
the District of Columbia, and any foreign country or political
subdivision thereof((, prior to the use of such property, extended
warranty, or service in Washington)).
Sec. 808 RCW 82.12.040 and 2005 c 514 s 109 are each amended to
read as follows:
(1) Every person who maintains in this state a place of business or
a stock of goods, or engages in business activities within this state,
shall obtain from the department a certificate of registration, and
shall, at the time of making sales of tangible personal property,
digital products, extended warranties, or sales of any service defined
as a retail sale in RCW 82.04.050 (2)(a) or (g) or (3)(a), or making
transfers of either possession or title, or both, of tangible personal
property for use in this state, collect from the purchasers or
transferees the tax imposed under this chapter. The tax to be
collected under this section ((shall)) must be in an amount equal to
the purchase price multiplied by the rate in effect for the retail
sales tax under RCW 82.08.020. For the purposes of this chapter, the
phrase "maintains in this state a place of business" shall include the
solicitation of sales and/or taking of orders by sales agents or
traveling representatives. For the purposes of this chapter, "engages
in business activity within this state" includes every activity which
is sufficient under the Constitution of the United States for this
state to require collection of tax under this chapter. The department
((shall)) must in rules specify activities which constitute engaging in
business activity within this state, and ((shall)) must keep the rules
current with future court interpretations of the Constitution of the
United States.
(2) Every person who engages in this state in the business of
acting as an independent selling agent for persons who do not hold a
valid certificate of registration, and who receives compensation by
reason of sales of tangible personal property, digital products,
extended warranties, or sales of any service defined as a retail sale
in RCW 82.04.050 (2)(a) or (g) or (3)(a), of his or her principals for
use in this state, ((shall)) must, at the time such sales are made,
collect from the purchasers the tax imposed on the purchase price under
this chapter, and for that purpose shall be deemed a retailer as
defined in this chapter.
(3) The tax required to be collected by this chapter ((shall be))
is deemed to be held in trust by the retailer until paid to the
department, and any retailer who appropriates or converts the tax
collected to the retailer's own use or to any use other than the
payment of the tax provided herein to the extent that the money
required to be collected is not available for payment on the due date
as prescribed ((shall be)) is guilty of a misdemeanor. In case any
seller fails to collect the tax herein imposed or having collected the
tax, fails to pay the same to the department in the manner prescribed,
whether such failure is the result of the seller's own acts or the
result of acts or conditions beyond the seller's control, the seller
((shall)) is nevertheless((, be)) personally liable to the state for
the amount of such tax, unless the seller has taken from the buyer in
good faith a copy of a direct pay permit issued under RCW 82.32.087.
(4) Any retailer who refunds, remits, or rebates to a purchaser, or
transferee, either directly or indirectly, and by whatever means, all
or any part of the tax levied by this chapter ((shall be)) is guilty of
a misdemeanor.
(5) Notwithstanding subsections (1) through (4) of this section,
any person making sales is not obligated to collect the tax imposed by
this chapter if:
(a) The person's activities in this state, whether conducted
directly or through another person, are limited to:
(i) The storage, dissemination, or display of advertising;
(ii) The taking of orders; or
(iii) The processing of payments; and
(b) The activities are conducted electronically via a web site on
a server or other computer equipment located in Washington that is not
owned or operated by the person making sales into this state nor owned
or operated by an affiliated person. "Affiliated persons" has the same
meaning as provided in RCW 82.04.424.
(6) Subsection (5) of this section expires when: (a) The United
States congress grants individual states the authority to impose sales
and use tax collection duties on remote sellers; or (b) it is
determined by a court of competent jurisdiction, in a judgment not
subject to review, that a state can impose sales and use tax collection
duties on remote sellers.
Sec. 809 RCW 82.14.465 and 2007 c 266 s 7 are each amended to
read as follows:
(1) A city, town, or county that creates a benefit zone and
finances public improvements pursuant to chapter 39.100 RCW may impose
a sales and use tax in accordance with the terms of this chapter and
subject to the criteria set forth in this section. Except as provided
in this section, the tax is in addition to other taxes authorized by
law and shall be collected from those persons who are taxable by the
state under chapters 82.08 and 82.12 RCW upon the occurrence of any
taxable event within the taxing jurisdiction of the city, town, or
county. The rate of tax shall not exceed the rate provided in RCW
82.08.020(1) in the case of a sales tax or ((the rate provided in RCW
82.12.020(5) in the case of)) a use tax, less the aggregate rates of
any other taxes imposed on the same events that are credited against
the state taxes imposed under chapters 82.08 and 82.12 RCW. The tax
rate shall be no higher than what is reasonably necessary for the local
government to receive its entire annual state contribution in a ten-month period of time.
(2) The tax imposed under subsection (1) of this section shall be
deducted from the amount of tax otherwise required to be collected or
paid over to the department under chapter 82.08 or 82.12 RCW. The
department shall perform the collection of such taxes on behalf of the
city, town, or county at no cost to the city, town, or county.
(3) No tax may be imposed under this section before July 1, 2007.
Before imposing a tax under this section, the city, town, or county
shall first have received tax allocation revenues during the preceding
calendar year. The tax imposed under this section shall expire on the
earlier of the date: (a) The tax allocation revenues are no longer
used for public improvements and public improvement costs; (b) the
bonds issued under the authority of chapter 39.100 RCW are retired, if
the bonds are issued; or (c) that is thirty years after the tax is
first imposed.
(4) An ordinance adopted by the legislative authority of a city,
town, or county imposing a tax under this section shall provide that:
(a) The tax shall first be imposed on the first day of a fiscal
year;
(b) The amount of tax received by the local government in any
fiscal year shall not exceed the amount of the state contribution;
(c) The tax shall cease to be distributed for the remainder of any
fiscal year in which either:
(i) The amount of tax distributions totals the amount of the state
contribution;
(ii) The amount of tax distributions totals the amount of local
public sources, dedicated in the previous calendar year to finance
public improvements authorized under chapter 39.100 RCW, expended in
the previous year for public improvement costs or used to pay for other
bonds issued to pay for public improvements; or
(iii) The amount of revenue from taxes imposed under this section
by all cities, towns, and counties totals the annual state credit limit
as provided in RCW 82.32.700(3);
(d) The tax shall be distributed again, should it cease to be
distributed for any of the reasons provided in (c) of this subsection,
at the beginning of the next fiscal year, subject to the restrictions
in this section; and
(e) Any revenue generated by the tax in excess of the amounts
specified in (b) and (c) of this subsection shall belong to the state
of Washington.
(5) If both a county and a city or town impose a tax under this
section, the tax imposed by the city, town, or county shall be credited
as follows:
(a) If the county has created a benefit zone before the city or
town, the tax imposed by the county shall be credited against the tax
imposed by the city or town, the purpose of such credit is to give
priority to the county tax; and
(b) If the city or town has created a benefit zone before the
county, the tax imposed by the city or town shall be credited against
the tax imposed by the county, the purpose of such credit is to give
priority to the city or town tax.
(6) The department shall determine the amount of tax distributions
attributable to each city, town, and county imposing a sales and use
tax under this section and shall advise a city, town, or county when
the tax will cease to be distributed for the remainder of the fiscal
year as provided in subsection (4)(c) of this section. Determinations
by the department of the amount of taxes attributable to a city, town,
or county are final and shall not be used to challenge the validity of
any tax imposed under this section. The department shall remit any tax
revenues in excess of the amounts specified in subsection (4)(b) and
(c) of this section to the state treasurer who shall deposit the moneys
in the general fund.
(7) The definitions in this subsection apply throughout this
section and RCW 82.14.470 unless the context clearly requires
otherwise.
(a) "Base year" means the calendar year immediately following the
creation of a benefit zone.
(b) "Benefit zone" has the same meaning as provided in RCW
39.100.010.
(c) "Excess local excise taxes" has the same meaning as provided in
RCW 39.100.050.
(d) "Excess state excise taxes" means the amount of excise taxes
received by the state during the measurement year from taxable activity
within the benefit zone over and above the amount of excise taxes
received by the state during the base year from taxable activity within
the benefit zone. However, if a local government creates the benefit
zone and reasonably determines that no activity subject to tax under
chapters 82.08 and 82.12 RCW occurred in the twelve months immediately
preceding the creation of the benefit zone within the boundaries of the
area that became the benefit zone, "excess state excise taxes" means
the entire amount of state excise taxes the state receives during a
calendar year period beginning with the calendar year immediately
following the creation of the benefit zone and continuing with each
measurement year thereafter.
(e) "State excise taxes" means revenues derived from state retail
sales and use taxes under chapters 82.08 and 82.12 RCW, less the amount
of tax distributions from all local retail sales and use taxes imposed
on the same taxable events that are credited against the state retail
sales and use taxes under chapters 82.08 and 82.12 RCW except for the
local tax authorized in this section.
(f) "Fiscal year" has the same meaning as provided in RCW
39.100.030.
(g) "Measurement year" means a calendar year, beginning with the
calendar year following the base year and each calendar year
thereafter, that is used annually to measure the amount of excess state
excise taxes and excess local excise taxes.
(h) "State contribution" means the lesser of two million dollars or
an amount equal to excess state excise taxes received by the state
during the preceding calendar year.
(i) "Tax allocation revenues" has the same meaning as provided in
RCW 39.100.010.
(j) "Public improvements" and "public improvement costs" have the
same meanings as provided in RCW 39.100.010.
(k) "Local public sources" includes, but is not limited to, private
monetary contributions, assessments, dedicated local government funds,
and tax allocation revenues. "Local public sources" does not include
local government funds derived from any state loan or state grant, any
local tax that is credited against the state sales and use taxes, or
any other state funds.
Sec. 810 RCW 82.16.010 and 2007 c 6 s 1023 are each amended to
read as follows:
For the purposes of this chapter, unless otherwise required by the
context:
(1) "Railroad business" means the business of operating any
railroad, by whatever power operated, for public use in the conveyance
of persons or property for hire. It shall not, however, include any
business herein defined as an urban transportation business.
(2) "Express business" means the business of carrying property for
public hire on the line of any common carrier operated in this state,
when such common carrier is not owned or leased by the person engaging
in such business.
(3) "Railroad car business" means the business of operating stock
cars, furniture cars, refrigerator cars, fruit cars, poultry cars, tank
cars, sleeping cars, parlor cars, buffet cars, tourist cars, or any
other kinds of cars used for transportation of property or persons upon
the line of any railroad operated in this state when such railroad is
not owned or leased by the person engaging in such business.
(4) "Water distribution business" means the business of operating
a plant or system for the distribution of water for hire or sale.
(5) "Light and power business" means the business of operating a
plant or system for the generation, production or distribution of
electrical energy for hire or sale and/or for the wheeling of
electricity for others.
(6) "Telegraph business" means the business of affording
telegraphic communication for hire.
(7) "Gas distribution business" means the business of operating a
plant or system for the production or distribution for hire or sale of
gas, whether manufactured or natural.
(8) "Motor transportation business" means the business (except
urban transportation business) of operating any motor propelled vehicle
by which persons or property of others are conveyed for hire, and
includes, but is not limited to, the operation of any motor propelled
vehicle as an auto transportation company (except urban transportation
business), common carrier, or contract carrier as defined by RCW
81.68.010 and 81.80.010((: PROVIDED, That)). However, "motor
transportation business" ((shall)) does not mean or include the
transportation of logs or other forest products exclusively upon
private roads or private highways.
(9) "Urban transportation business" means the business of operating
any vehicle for public use in the conveyance of persons or property for
hire, insofar as (a) operating entirely within the corporate limits of
any city or town, or within five miles of the corporate limits thereof,
or (b) operating entirely within and between cities and towns whose
corporate limits are not more than five miles apart or within five
miles of the corporate limits of either thereof. Included herein, but
without limiting the scope hereof, is the business of operating
passenger vehicles of every type and also the business of operating
cartage, pickup, or delivery services, including in such services the
collection and distribution of property arriving from or destined to a
point within or without the state, whether or not such collection or
distribution be made by the person performing a local or interstate
line-haul of such property.
(10)(a) "Public service business" means any of the businesses
defined in subsections (1), (2), (3), (4), (5), (6), (7), (8), and (9)
of this section or any business subject to control by the state, or
having the powers of eminent domain and the duties incident thereto, or
any business hereafter declared by the legislature to be of a public
service nature, except telephone business and low-level radioactive
waste site operating companies as redefined in RCW 81.04.010. It
includes, among others, without limiting the scope hereof: Airplane
transportation, boom, dock, ferry, pipe line, toll bridge, toll logging
road, water transportation and wharf businesses.
(b) The definitions in this subsection (10)(b) apply throughout
this subsection (10).
(i) "Competitive telephone service" has the same meaning as in RCW
82.04.065.
(ii) "Network telephone service" means the providing by any person
of access to a telephone network, telephone network switching service,
toll service, or coin telephone services, or the providing of
telephonic, video, data, or similar communication or transmission for
hire, via a telephone network, toll line or channel, cable, microwave,
or similar communication or transmission system. "Network telephone
service" includes the provision of transmission to and from the site of
an internet provider via a telephone network, toll line or channel,
cable, microwave, or similar communication or transmission system.
"Network telephone service" does not include the providing of
competitive telephone service, the providing of cable television
service, the providing of broadcast services by radio or television
stations, nor the provision of internet ((service)) access as defined
in RCW 82.04.297, including the reception of dial-in connection,
provided at the site of the internet service provider.
(iii) "Telephone business" means the business of providing network
telephone service. It includes cooperative or farmer line telephone
companies or associations operating an exchange.
(iv) "Telephone service" means competitive telephone service or
network telephone service, or both, as defined in (b)(i) and (ii) of
this subsection.
(11) "Tugboat business" means the business of operating tugboats,
towboats, wharf boats or similar vessels in the towing or pushing of
vessels, barges or rafts for hire.
(12) "Gross income" means the value proceeding or accruing from the
performance of the particular public service or transportation business
involved, including operations incidental thereto, but without any
deduction on account of the cost of the commodity furnished or sold,
the cost of materials used, labor costs, interest, discount, delivery
costs, taxes, or any other expense whatsoever paid or accrued and
without any deduction on account of losses.
(13) The meaning attributed, in chapter 82.04 RCW, to the term "tax
year," "person," "value proceeding or accruing," "business," "engaging
in business," "in this state," "within this state," "cash discount" and
"successor" shall apply equally in the provisions of this chapter.
Sec. 811 RCW 82.32.020 and 2007 c 6 s 101 are each amended to
read as follows:
For the purposes of this chapter:
(1) The meaning attributed in chapters 82.01 through 82.27 RCW to
the words and phrases "tax year," "taxable year," "person," "company,"
"gross proceeds of sales," "gross income of the business," "business,"
"engaging in business," "successor," "gross operating revenue," "gross
income," "taxpayer," "retail sale," "seller," "buyer," "purchaser,"
"extended warranty," and "value of products" shall apply equally to the
provisions of this chapter.
(2) Whenever "property" or "personal property" is used, those terms
must be construed to include digital products unless: (a) It is clear
from the context that the term "personal property" is intended only to
refer to tangible personal property; (b) it is clear from the context
that the term "property" is intended only to refer to tangible personal
property, real property, or both; or (c) to construe the term
"property" or "personal property" as including digital products would
yield unlikely, absurd, or strained consequences.
(3) The definitions in this subsection apply throughout this
chapter, unless the context clearly requires otherwise.
(a) "Agreement" means the streamlined sales and use tax agreement.
(b) "Associate member" means a petitioning state that is found to
be in compliance with the agreement and changes to its laws, rules, or
other authorities necessary to bring it into compliance are not in
effect, but are scheduled to take effect on or before January 1, 2008.
The petitioning states, by majority vote, may also grant associate
member status to a petitioning state that does not receive an
affirmative vote of three-fourths of the petitioning states upon a
finding that the state has achieved substantial compliance with the
terms of the agreement as a whole, but not necessarily each required
provision, measured qualitatively, and there is a reasonable
expectation that the state will achieve compliance by January 1, 2008.
(c) "Certified automated system" means software certified under the
agreement to calculate the tax imposed by each jurisdiction on a
transaction, determine the amount of tax to remit to the appropriate
state, and maintain a record of the transaction.
(d) "Certified service provider" means an agent certified under the
agreement to perform all of the seller's sales and use tax functions,
other than the seller's obligation to remit tax on its own purchases.
(e)(i) "Member state" means a state that:
(A) Has petitioned for membership in the agreement and submitted a
certificate of compliance; and
(B) Before the effective date of the agreement, has been found to
be in compliance with the requirements of the agreement by an
affirmative vote of three-fourths of the other petitioning states; or
(C) After the effective date of the agreement, has been found to be
in compliance with the agreement by a three-fourths vote of the entire
governing board of the agreement.
(ii) Membership by reason of (e)(i)(A) and (B) of this subsection
is effective on the first day of a calendar quarter at least sixty days
after at least ten states comprising at least twenty percent of the
total population, as determined by the 2000 federal census, of all
states imposing a state sales tax have petitioned for membership and
have either been found in compliance with the agreement or have been
found to be an associate member under section 704 of the agreement.
(iii) Membership by reason of (e)(i)(A) and (C) of this subsection
is effective on the state's proposed date of entry or the first day of
the calendar quarter after its petition is approved by the governing
board, whichever is later, and is at least sixty days after its
petition is approved.
(f) "Model 1 seller" means a seller that has selected a certified
service provider as its agent to perform all the seller's sales and use
tax functions, other than the seller's obligation to remit tax on its
own purchases.
(g) "Model 2 seller" means a seller that has selected a certified
automated system to perform part of its sales and use tax functions,
but retains responsibility for remitting the tax.
(h) "Model 3 seller" means a seller that has sales in at least five
member states, has total annual sales revenue of at least five hundred
million dollars, has a proprietary system that calculates the amount of
tax due each jurisdiction, and has entered into a performance agreement
with the member states that establishes a tax performance standard for
the seller. As used in this subsection (((2))) (3)(h), a seller
includes an affiliated group of sellers using the same proprietary
system.
(i) "Source" means the location in which the sale or use of
tangible personal property, a digital product, an extended warranty, or
a service, subject to tax under chapter 82.08, 82.12, 82.14, or 82.14B
RCW, is deemed to occur.
Sec. 812 RCW 82.32.023 and 2007 c 6 s 104 are each amended to
read as follows:
For purposes of ((compliance with the requirements of the agreement
only)) construing those provisions of the streamlined sales and use tax
agreement that have been incorporated into this title, and unless the
context requires otherwise, the terms "product" and "products" refer to
tangible personal property, digital products, services, extended
warranties, and anything else that can be sold or used.
NEW SECTION. Sec. 901 This act does not have any impact
whatsoever on the characterization of digital products, as defined in
section 201 of this act, as tangible or intangible personal property
for purposes of property taxation and may not be used in any way in
construing any provision of Title 84 RCW.
NEW SECTION. Sec. 902 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.
NEW SECTION. Sec. 903 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, 2009.
NEW SECTION. Sec. 904 Part headings used in this act are not any
part of the law.