PREPROPOSAL STATEMENT OF INQUIRY
DEPARTMENT OF REVENUE
[Filed May 22, 2019, 7:14 a.m.]
Subject of Possible Rule Making: WAC 458-20-17802 Collection of use tax by county auditors and department of licensing—Measure of tax.
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 458-20-17802 provides a framework for county auditors and the department of licensing to determine and collect use tax imposed by chapter 82.12
RCW when a person applies to transfer the certificate of title of a vehicle acquired without the payment of retail sales tax. As part of the process, an automated valuing system is used to verify the purchase price of the vehicle represents the true value.
A presumption is made in the rule that the purchase price represents the true value of the vehicle if one of the following conditions is met:
(a) The vehicle's average retail value (as determined by the automated valuing system) is less than $5,000; or
(b) The vehicle's purchase price is not more than $2,000 below the vehicle's average retail value (as determined by the automated valuing system).
The department proposes to update WAC 458-20-17802 to adjust the conditions discussed above. Specifically, for condition (a), the department proposes increasing the threshold from $5,000 to $7,500. Therefore, if the vehicle's average retail value (as determined by the automated valuing system) is less than $7,500, the purchase price will be used as the measure of the use tax. For condition (b), the department requests stakeholder input as to whether the threshold should be adjusted.
Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule-making process or giving oral testimony at the public meeting and/or public hearing.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Brenton Madison, P.O. Box 47453, Olympia, WA 98504-7453, phone 360-534-1583, fax 360-534-1606, TTY 800-833-6384, email email@example.com, web site dor.wa.gov.
Additional comments: Written comments may be submitted by mail or email and should be directed to Brenton Madison using one of the contact methods above. Written and oral comments will be accepted at the public meeting on June 20, 2019, at 10:00 a.m., at Conference Room 252, 6400 Linderson Way S.W., Tumwater, WA 98501.
May 22, 2019