Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule explains the tax reporting responsibilities of veterinarians. The department has received a request to revise the current rule to provide clearer guidance to veterinarians and others in determining which tax is owed, by whom, and what classification of business and occupation tax (B&O) is appropriate. This proposed amendment to the existing rule provides clear language, along with examples, of the appropriate manner for collecting and paying B&O, retail sales, and use tax by veterinarians and others who provide services for live animals.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Although the Washington state Department of Licensing regulates veterinarians for purposes of professional competence, no other agency regulates veterinarians with respect to the state taxes involved in the rule. Veterinarians also may be subject to federal taxation, but the basis of the state taxation is different from that of the federal taxes.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to James A. Winterstein, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 586-4283, fax (360) 664-0693, e-mail JimWi@dor.wa.gov.

Location and Date of Public Meeting: Evergreen Plaza Building, 711 Capitol Way, 2nd Floor Conference Room, Olympia, WA, on August 12, 1998, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Arturo Haro by July 29, 1998, TDD 1-800-451-7985 or (360) 586-0721.

July 1, 1998

Claire Hesselholt

Rules Manager