H-1600              _______________________________________________

                                                   HOUSE BILL NO. 2040

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Appelwick, Holland and Silver

Read first time 2/17/89 and referred to Committee on Revenue.

AN ACT Relating to the sales tax exemption for purchases to be used in a noncontiguous state, territory, or possession; and amending RCW 82.08.0269.

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

        Sec. 1.  Section 36, chapter 37, Laws of 1980 and RCW 82.08.0269 are each amended to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales for use in states, territories and possessions of the United States which are not contiguous to any other state, but only when((, as a necessary incident to the contract of sale,)) (1) the seller delivers the subject matter of the sale to the purchaser or his designated agent (a) at the usual receiving terminal of the carrier selected to transport the goods((, under such circumstances that it is reasonably certain that the goods will be transported directly to a destination in such noncontiguous states, territories and possessions)) or (b) at a facility maintained by the purchaser or his or her designated agent for the purpose of holding or storing the goods prior to transportation, or (2) the purchaser otherwise takes delivery of the goods and promptly transports them out of the state or to a facility like that described in subsection (1)(b) of this section for later transport.  In all cases, the circumstances of the transaction must be such that it is reasonably certain that the goods will be transported to a destination in a noncontiguous state, territory, or possession.  Documentation which shall establish such reasonable certainty shall include, but not be limited to, a bill of lading or other contract of carriage, shipping manifest, storage or receiving reports, or other documentation maintained in the course of business which evidences that the subject matter of the sale was transported to the noncontiguous state, territory, or possession.  The purchaser shall give the seller a written certificate to the effect that the purchase is not intended for use in Washington, but rather is intended for use in a noncontiguous state, territory, or possession.