H-767                _______________________________________________

                                                    HOUSE BILL NO. 354

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State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Braddock, Barrett, Kremen, Schoon, Haugen, Smitherman, J. Williams and Isaacson

Read first time 1/30/85 and referred to Committee on Ways & Means.

AN ACT Relating to the taxation of tangible personal property to be delivered outside the state of Washington; adding a new section to chapter 82.04 RCW; and adding a new section to chapter 82.08 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

          This chapter does not apply to any person in respect to gross proceeds derived from sales at wholesale or retail where tangible personal property is, pursuant to agreement:

          (1) Delivered outside the state by the seller or a carrier, other than the purchaser, as agent of the seller; or

          (2) Delivered by the seller to a common or licensed contract carrier, engaged by the purchaser or its agent, or to the United States postal service, for transportation outside the state; or

          (3) Delivered by the seller to a warehouse or other collecting point of a carrier, forwarding agent, export packer, customs broker, or other person, not the purchaser, engaged in the business of preparing property for export, or arranging for its export, in a manner that places such property in the export stream before its actual shipment abroad; or

          (4) Delivered by the seller to a cold storage warehouse, engaged by the purchaser or its agent, before transportation outside the state, and the tangible personal property that is the subject of the sale is otherwise taxable under RCW 82.04.260(5) and the property is subsequently transported outside the state by a common or licensed contract carrier, engaged by the purchaser or its agent.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

          The tax levied by RCW 82.08.020 does not apply to sales where tangible personal property is, pursuant to agreement:

          (1) Delivered outside the state by the seller or a carrier, other than the purchaser, as agent of the seller; or

          (2) Delivered by the seller to a common or licensed contract carrier, engaged by the purchaser or its agent, or to the United States postal service, for transportation outside the state; or

          (3) Delivered by the seller to a warehouse or other collecting point of a carrier, forwarding agent, export packer, customs broker, or other person, not the purchaser, engaged in the business of preparing property for export, or arranging for its export, in a manner that places such property in the export stream before its actual shipment abroad; or

          (4) Delivered by the seller to a cold storage warehouse, engaged by the purchaser or its agent, before transportation outside the state, and the tangible personal property that is the subject of the sale is otherwise taxable under RCW 82.04.260(5) and the property is subsequently transported outside the state by a common or licensed contract carrier, engaged by the purchaser or its agent.