2479-S AMS PRIN STUH 01

SHB 2479 - S AMD - 000351

    By Senator Prince

                              RULED BEYOND SCOPE AND OBJECT 3/4/94

    On page 6, after line 4, insert the following:

    "Sec. 5.  RCW 82.04.470 and 1993 1st sp.s. c 25 s 701 are each amended to read as follows:

    (1) Unless a seller has taken from the buyer a resale certificate, the burden of proving that a sale of tangible personal property, or of services, was not a sale at retail shall be upon the person who made it.

    (2) If a seller does not receive a resale certificate at the time of the sale, have a resale certificate on file at the time of the sale, or obtain a resale certificate from the buyer within a reasonable time after the sale, the seller shall remain liable for the tax as provided in RCW 82.08.050, unless the seller can demonstrate facts and circumstances according to rules adopted by the department of revenue that show the sale was properly made without payment of sales tax.

    (3) Resale certificates shall be valid for a period of four years from the date the certificate is provided to the seller.

    (4) The department may provide by rule for suggested forms for resale certificates or equivalent documents containing the information that will be accepted as resale certificates.  The department shall provide by rule the categories of items or services that must be specified on resale certificates and the business classifications that may use a blanket resale certificate.

(5)  The department shall develop a form to meet the unique buying conditions of the landlord-tenant relationship within the agricultural industry.  In no instance may a landlord farmer be held liable for any tax liability under this section that may be due on the purchase and use of products handled exclusively by a tenant farmer, nor may the landlord farmer be required to sign a form that includes such language.  For purposes of this section, any tax liability shall be borne by the tenant farmer making the purchases on behalf of the landlord farmer.

    (((5))6) As used in this section, "resale certificate" means documentation provided by a buyer to a seller stating that the purchase is for resale in the regular course of business, or that the buyer is exempt from retail sales tax, and containing the following information:

    (a) The name and address of the buyer;

    (b) The uniform business identifier or revenue registration number of the buyer, if the buyer is required to [be] registered;

    (c) The type of business engaged in;

    (d) The categories of items or services to be purchased for resale or that are exempt, unless the buyer is in a business classification that may present a blanket resale certificate as provided by the department by rule;

    (e) The date on which the certificate was provided;

    (f) A statement that the items or services purchased either:  (i) Are purchased for resale in the regular course of business; or (ii) are exempt from tax pursuant to statute;

    (g) A statement that the buyer acknowledges that the buyer is solely responsible for purchasing within the categories specified on the certificate and that misuse of the resale or exemption privilege claimed on the certificate subjects the buyer to a penalty of fifty percent of the tax due, in addition to the tax, interest, and any other penalties imposed by law;

    (h) The name of the individual authorized to sign the certificate, printed in a legible fashion;

    (i) The signature of the authorized individual; and

    (j) The name of the seller."

Renumber the remaining sections consecutively

                            --- END ---

EFFECT:Clarifies current law by requiring the development of an appropriate resale certificate for landlord-tenant farming operations.