H-4238              _______________________________________________

                                                   HOUSE BILL NO. 1680

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Nutley, Peery, Butterfield, Cooper and Sutherland

Read first time 1/22/88 and referred to Committee on Ways & Means.

AN ACT Relating to the taxation of sales to nonresidents; and amending RCW 82.08.0273.

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

        Sec. 1.  Section 39, chapter 37, Laws of 1980 as amended by section 1, chapter 5, Laws of 1982 1st ex. sess. and RCW 82.08.0273 are each amended to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales to nonresidents of this state of tangible personal property for use outside this state when the purchaser ((has applied for and received from the department of revenue a permit certifying)) (1) ((that he)) is a bona fide resident of a state or possession or Province of Canada other than the state of Washington, (((2) that such)) which 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 (((3) that he does)) (2) agrees, when requested, to grant the department of revenue access to such records and other forms of verification at his place of residence to assure that such purchases are not first used substantially in the state of Washington.

          Any person claiming exemption from retail sales tax under the provisions of this section must display a nonresident permit ((as herein provided, and)) issued by the department or a current out-of-state driver's license for a state, possession, or Province of Canada meeting the requirements of subsection (1) of this section.  Any vendor making a sale to a nonresident without collecting the tax must examine such permit or license, identify the purchaser as the person to whom the nonresident permit or license was issued, and maintain records which shall show the permit or license number attributable to each nontaxable sale.

          Permits shall be personal and nontransferable, shall be renewable annually, and shall be issued by the department of revenue upon payment of a fee of five dollars.  The department ((may in its discretion)) shall designate as an independent agent((s)) for the issuance of permits, ((according to such standards and qualifications as the department may prescribe)) any person registered with the department under RCW 82.32.030 desiring to act as an agent.  Such agents shall pay over and account to the department for all permit fees collected, after deducting as a collection fee the sum of one dollar for each permit issued.

          Any person making fraudulent statements in order to secure a permit shall be guilty of perjury.  Any person making tax exempt purchases by displaying a permit or license not his own, or a counterfeit permit or license, with intent to violate the provisions of this section, shall be guilty of a misdemeanor and, in addition, may be subject to a penalty not to exceed the amount of the tax due on such purchases.  Any vendor who makes sales without collecting the tax to a person who does not hold a valid permit or current out-of-state driver's license, and any vendor who fails to maintain records of permit or license numbers as provided in this section shall be personally liable for the amount of tax due.