BILL REQ. #: Z-0102.3
State of Washington | 62nd Legislature | 2011 Regular Session |
AN ACT Relating to amending the existing nonresident retail sales tax exemption; amending RCW 82.08.0273; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.08.0273 and 2010 c 106 s 215 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales to
nonresidents of this state of tangible personal property, digital
goods, and digital codes, when ((such)):
(a) The property is for use outside this state((, and));
(b) The purchaser (((a))) is a bona fide resident of a province or
territory of Canada or a state, territory, or possession ((or Province
of Canada)) of the United States, other than the state of Washington;
and
(i) Such state, possession, territory, or province ((of Canada))
does not impose ((a)), or have imposed on its behalf, a generally
applicable retail sales tax ((or)), use tax, value added tax, gross
receipts tax on retailing activities, or similar generally applicable
tax, of three percent or more; or((,))
(ii) If imposing ((such)) a tax described in (b)(i) of this
subsection, ((permits)) provides an exemption for sales to Washington
residents ((exemption from otherwise taxable sales)) by reason of their
residence((,)); and
(((b))) (c) The purchaser 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
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 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.
(c) In lieu of furnishing proof of a person's nonresident status
under (b) of this subsection (3), a person claiming exemption from
retail sales tax under the provisions of this section may provide the
seller with an exemption certificate in compliance with subsection
(4)(b) of this section.
(4)(a) 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 must examine the purchaser's 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.
(b) In lieu of using the method provided in (a) of this subsection
to document an exempt sale to a nonresident, a seller may accept from
the purchaser a properly completed uniform exemption certificate
approved by the streamlined sales and use tax agreement governing board
or any other exemption certificate as may be authorized by the
department and properly completed by the purchaser. A nonresident
purchaser who uses an exemption certificate authorized in this
subsection (4)(b) must include the purchaser's driver's license number
or other state-issued identification number and the state of issuance.
(c) In lieu of using the methods provided in (a) and (b) of this
subsection to document an exempt sale to a nonresident, a seller may
capture the relevant data elements as allowed under the streamlined
sales and use tax agreement.
(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, 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 and
who fails to maintain records of sales to nonresidents as provided in
this section 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, 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 are liable for any penalties and interest
assessable under chapter 82.32 RCW.
NEW SECTION. Sec. 2 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, 2011.