WSR 99-12-078

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed May 28, 1999, 11:04 a.m. ]

Subject of Possible Rule Making: WAC 458-20-135 Extracting natural products, 458-20-136 Manufacturing, processing for hire, fabricating, and 458-20-13601 Manufacturers and processors for hire--Sales and use tax exemption for machinery and equipment.

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: WAC 458-20-135 is being revised to incorporate legislative changes and clarify when an extracting process ends and a manufacturing process begins. WAC 458-20-136 is being revised to incorporate legislative changes, including provisions of chapter 211, Laws of 1999, which in part revised the statutory definition of "to manufacture" to include certain logging activities and rock crushing activities. WAC 458-20-13601 is a new rule explaining the retail sales and use tax exemptions (RCW 82.08.02565 and 82.12.02565) available for certain machinery and equipment purchased or used by manufacturers, processors for hire.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

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. Revised drafts of the proposed changes will be available upon request after June 30, 1999. Written comments on and/or requests for copies of the rule may be directed to Alan R. Lynn, Legislation and Policy, Department of Revenue, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 586-9040, fax (360) 664-0693, e-mail alanl@dor.wa.gov.

Location and Date of Public Meeting: General Administration Building, 2nd Floor Conference Room #207, 210 West 11th and Columbia Streets, Olympia, WA, on July 14, 1999, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Ginny Dale no later than ten days before the hearing date TDD 1-800-451-7985 or (360) 586-0721.

May 28, 1999

Claire Hesselholt, Rules Manager

Legislation and Policy Division

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