H-3101.1 _______________________________________________
HOUSE BILL 2323
_______________________________________________
State of Washington 56th Legislature 2000 Regular Session
By Representatives Thomas, DeBolt and Carrell
Prefiled 12/22/1999. Read first time 01/10/2000. Referred to Committee on Finance.
AN ACT Relating to sales tax exemptions and refunds for nonresidents; amending RCW 82.08.0273; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.08.0273 and 1993 c 444 s 1 are each amended to read as follows:
(1)
((The tax levied by RCW 82.08.020 shall not apply to sales to)) Nonresidents
of this state are eligible for an exemption in the form of a remittance of
state and local sales tax paid on purchases of tangible personal property
for use outside this state when the purchaser (a) is a bona fide resident of a
state or possession or Province of Canada other than the state of Washington
and such state, possession, or Province of Canada does not impose a retail
sales tax or use tax of three percent or more or, if imposing such a tax,
permits Washington residents exemption from otherwise taxable sales by reason
of their residence, and (b) ((agrees, when requested,)) applies to
the department for remittance of the tax paid. In the application, the
purchaser must agree to grant the department of revenue access to such
records and other forms of verification at his or her place of residence to
assure that such purchases are not first used substantially in the state of
Washington.
(2)(((a)
Any person claiming exemption from retail sales tax under the provisions of
this section must display proof of his or her current nonresident status as
herein provided.
(b)
Acceptable proof of a nonresident person's status shall include one piece of
identification such as a valid driver's license from the jurisdiction in which
the out-of-state residency is claimed or a valid identification card which has
a photograph of the holder and is issued by the out-of-state jurisdiction.
Identification under this subsection (2)(b) must show the holder's residential
address and have as one of its legal purposes the establishment of residency in
that out-of-state jurisdiction.
(3)
Nothing in this section requires the vendor to make tax exempt retail sales to
nonresidents. A vendor may choose to make sales to nonresidents, collect the
sales tax, and remit the amount of sales tax collected to the state as
otherwise provided by law. If the vendor chooses to make a sale to a
nonresident without collecting the sales tax, the vendor shall, in good faith,
examine the proof of nonresidence, determine whether the proof is acceptable
under subsection (2)(b) of this section, and maintain records for each
nontaxable sale which shall show the type of proof accepted, including any
identification numbers where appropriate, and the expiration date, if any.
(4)(a))) Any
person making fraudulent statements((, which includes the offer of
fraudulent identification or fraudulently procured identification to a vendor,
in order to purchase goods without paying retail sales tax)) to obtain a
remittance of tax under this section shall be guilty of perjury. Any
person ((making tax exempt purchases under this section by displaying proof
of identification not his or her own, or counterfeit identification, with
intent to violate the provisions)) obtaining a remittance of tax in
violation of this section((,)) shall be guilty of a misdemeanor and,
in addition, shall be liable for the tax and subject to a penalty equal to the
greater of one hundred dollars or the tax due on such purchases.
(((b)
Any vendor who makes sales without collecting the tax to a person who does not
hold valid identification establishing out-of-state residency, and any vendor
who fails to maintain records of sales to nonresidents as provided in this
section, shall be personally liable for the amount of tax due. Any vendor who
makes sales without collecting the retail sales tax under this section and who
has actual knowledge that the purchaser's proof of identification establishing
out-of-state residency is fraudulent shall be guilty of a misdemeanor and, in
addition, shall be liable for the tax and subject to a penalty equal to the
greater of one thousand dollars or the tax due on such sales. In addition,
both the purchaser and the vendor shall be liable for any penalties and
interest assessable under chapter 82.32 RCW.))
(3) The state general fund shall bear the entire cost of remittances under this section, including remittances of taxes by local governments.
NEW SECTION. Sec. 2. This act takes effect July 1, 2000.
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