H-3117              _______________________________________________

                                                   HOUSE BILL NO. 2632

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Horn, Zellinsky, Holland, Heavey, May, Haugen, D. Sommers, Silver, Wood, S. Wilson, Forner, Tate, Youngsman, Nealey, Wolfe, Moyer and Bowman

Read first time 1/17/90 and referred to Committee on Revenue.

AN ACT Relating to excise taxation of manufacturer's rebates; and amending RCW 82.08.010.

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

        Sec. 1.  Section 82.08.010, chapter 15, Laws of 1961 as last amended by section 3, chapter 38, Laws of 1985 and RCW 82.08.010 are each amended to read as follows:

          For the purposes of this chapter:

          (1) "Selling price" means the consideration, whether money, credits, rights, or other property except trade-in property of like kind, expressed in the terms of money paid or delivered by a buyer to a seller without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes other than taxes imposed under this chapter if the seller advertises the price as including the tax or that the seller is paying the tax, or any other expenses whatsoever paid or accrued and without any deduction on account of losses; but shall not include the amount of cash discount actually taken by a buyer, nor the value of a manufacturer's rebate if the right to receive the rebate is assigned to the seller at the time of the retail sale; and shall be subject to modification to the extent modification is provided for in RCW 82.08.080.  For purposes of this section, a "rebate" means the amount offered by a manufacturer directly to a purchaser as an inducement for a sale.  The term "rebate" includes, but is not limited to, auto manufacturer and mail-in rebates, but does not include manufacturer coupons.

          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 of revenue may prescribe;

          (2) "Seller" means every person, including the state and its departments and institutions, making sales at retail or retail sales to a buyer or consumer, whether as agent, broker, or principal, except "seller" does not mean the state and its departments and institutions when making sales to the state and its departments and institutions;

          (3) "Buyer" 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) 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.