Registration No. | . . . . (if applicable) |
Type of Business | . . . . |
Firm Name | . . . . |
Business Address | . . . . |
Registered Name | . . . . (if different) |
Tax Reporting Agent | . . . . (if applicable) |
Authorized Signature | . . . . |
Title | . . . . |
Identity of Fuel | . . . . (kind and amount by volume) |
| Date: . . . . |
(vii) This certificate may be executed and provided to any possessor of fuel in this state, throughout the chain of distribution, with respect to fuel that ultimately will be sold and delivered into any carrier's fuel tanks in this state. Thus, refiners or manufacturers will take such certificates directly from carriers or from their wholesale purchasers who will sell to such carriers. Similarly, fuel dealers and distributors will take such certificates from carriers to whom they sell such fuel. These certificates must be retained as a permanent part of such seller's business records.
(viii) Persons who execute and provide these credit certificates to their fuel suppliers must retain suitable purchase and sales records as may be necessary to determine the amount of tax for which such persons may be liable.
(ix) Blanket certificates may be used to cover recurrent purchases of fuel by the same purchaser. Such blanket certificates must be renewed every two years.
(c) A credit may be taken against the tax owed in this state in the amount of any other state's hazardous substance tax that has been paid by the same person measured by the wholesale value of the same hazardous substance.
(i) In order for this credit to apply, the other state's tax must be significantly similar to Washington's tax in all its various respects. The taxable incident must be possessing the substance; the tax purpose must be that the substance is hazardous; and the tax measure must be stated in terms of the wholesale value, or volume, of the substance, without deductions for costs of doing business, such that the other state's tax does not constitute an income tax or added value tax.
(ii) This credit may be taken for the amount of any other state's qualifying tax that has actually been paid before Washington state's tax is incurred because the substance was previously possessed by the same person in another taxing jurisdiction.
(iii) The amount of credit is limited to the amount of tax paid in this state upon possession of the same hazardous substance in this state. Also, the credit may not be applied against any tax paid or owed in this state other than the hazardous substance tax imposed under chapter
82.21 RCW.
(iv) Exchange agreements under which hazardous substances or products possessed in this state are exchanged through any accounts crediting system with like substances possessed in other states do not qualify for this credit. The substance taxed in another state, and for which this credit is sought, must be actually, physically possessed in this state.
(v) Persons claiming this credit must maintain records necessary to verify that the credit taking qualifications have been met. Additional information regarding recordkeeping requirements is provided in WAC
458-20-19301.
(6) Newly defined hazardous substances. Under chapter
82.21 RCW the director of the department of ecology may identify and designate other substances or products as being hazardous substances for purposes of the tax. The director of the department of ecology may also delete substances or products previously designated as hazardous substances. Such actions are done by amending chapter
173-342 WAC.
(a) The law allows the addition or deletion of substances or products as hazardous substances by rule amendments, no more often than twice in any calendar year.
(b) When such additions or deletions are made, they do not take effect for tax purposes until the first day of the following month that is at least 30 days after the effective date of rule amendment by the department of ecology.
(i) Example. The department of ecology amends chapter
173-342 WAC by adding a new substance and the effective date of the amendment is June 15th. Possession of the substance does not become taxable until August 1st.
(ii) The tax is owed by any person who has possession of the newly designated hazardous substance upon the tax effective date as explained herein. It is immaterial that the person in possession on that date was not the first person in possession of the substance in this state before it was designated as hazardous.
(7) Recurrent tax liability. It is the intent of the law that all hazardous substances possessed in this state should incur this tax liability only once unless they are expressly exempt. This is true of hazardous ingredients of products as well as the manufactured end product itself, if designated as a hazardous substance. The exemption for previously taxed hazardous substances does not apply to "products" that have been manufactured or remanufactured simply because an ingredient or ingredients of that product may have already been taxed when possessed by the manufacturer. Instead of an exemption, manufacturers in possession of both the hazardous ingredient and end product should use the credit provision explained at subsection (5)(a) of this rule.
(a) However, the term "product" is defined to mean only an item or items that contain a combination of both hazardous substances and nonhazardous substances. The term does not include combinations of only hazardous substances. Thus, possessions of substances produced by combining other hazardous substances upon all of which the tax has previously been paid will not again be taxable.
(b) When any hazardous substance is first produced during and because of any physical combination or chemical reaction that occurs in a manufacturing or processing activity, the intermediate possession of such substance within the manufacturing or processing plant is not considered a taxable possession if the substance becomes a component or ingredient of the product being manufactured or processed or is otherwise consumed during the manufacturing or processing activity.
However, when any intermediate hazardous substance is first produced during a manufacturing or processing activity and is withdrawn for sale or transfer outside of the manufacturing or processing plant, a taxable first possession occurs.
(c) Concentrations or dilutions for shipment or storage. The mere addition or withdrawal of water or other nonhazardous substances to or from hazardous substances designated under CERCLA or FIFRA for the sole purpose of transportation, storage, or the later manufacturing use of such substances does not result in any new hazardous product.
(8) How and when to pay tax. The tax must be reported on a special line of the combined excise tax return designated "hazardous substances." It is due for payment together with the timely filing of the return upon which it is reported, covering the tax reporting period during which the hazardous substance is first possessed within this state. Any person who is not expressly exempt of the tax and who possesses any hazardous substance in this state, without having proof that the tax has previously been paid on that substance, must report and pay the tax.
(a) It may be that the person who purchases a hazardous substance will not have billing information from which to determine the wholesale value of the substance when the tax return for the period of possession is due. In such cases the tax is due for payment no later than the next regular reporting due date following the reporting period in which the substance is first possessed.
(b) The taxable incident or event is the possession of the substance. Tax is due for payment by the purchaser of any hazardous substance whether or not the purchase price has been paid in part or in full.
(c) Special provision for manufacturers, refiners, and processors. Manufacturers, refiners, and processors who possess hazardous substances are required to report the tax and take any available exemptions and credits only at the time that such hazardous substances are withdrawn from storage for purposes of their sale, transfer, remanufacture, or consumption.
(9) How and when to claim credits. Credits should be claimed and offset against tax liability reported on the same excise tax return when possible. The tax return form provides a line for reporting tax on hazardous substances and a line for taking credits as an offset against the tax reported. It is not required that any documents or other evidence of entitlement to credits be submitted with the report. Such proofs must be retained in permanent records for the purpose of verification of credits taken.
(10) Special provision for consumer as first possessor. Under circumstances where the consumer is the first person in possession of any nonexempt hazardous substance (e.g., substances imported by the consumer), or where the consumer is the person who must pay the tax upon substances previously possessed in this state (fuel purchased for export in fuel tanks) the consumer's tax measure will be the wholesale value determined as nearly as possible according to the wholesale selling price at the place of use of similar substances of like quality and character.
(11) Hazardous substances or products on consignment. Consignees who possess hazardous substances or products in this state with the power to sell such things, in their own name or on behalf of a disclosed or undisclosed consignor are liable for payment of the tax. The exemption for previously taxed substances is available for such consignees only if the consignors have paid the tax and the consignee has retained the certification or other proof of previous tax payment referred to in subsection (4)(a)(i) and (ii) of this rule. Possession of consigned hazardous substances by a consignee does not constitute constructive possession by the consignor.
(12) Hazardous substances untraceable to source. Various circumstances may arise whereby a person will possess hazardous substances in this state, some of which have been previously taxed in this or other states and some of which may not. In such cases formulary tax reporting may be used upon a special ruling by the department of revenue.
Example. Fungible petroleum products from sources both within and outside this state are commingled in common storage facilities. Formulary reporting is appropriate based upon volume percentages reflecting the ratio of in-state production to out-of-state production or other form of acquisition.
(13) Administrative provisions. The provisions of chapter
82.32 RCW regarding due dates, reporting periods, tax return requirements, interest and penalties, tax audits and limitations, disputes and appeals, and all such general administrative provisions apply equally to the hazardous substance tax. Taxpayers may request, from the department, tax rulings covering unique circumstances not addressed in this rule.
(14) Certification of previously taxed hazardous substance. Certification that the hazardous substance tax has already been paid by a person previously in possession of the substance may be taken in substantially the following form:
I hereby certify that this purchase - all purchases of (omit one) | . . . . |
. . . . (identify substances purchased) | by | . . . ., (name of purchaser) |
who possesses registration no. | . . . ., (buyer's number, if registered) |
consists of the purchase of a hazardous substance or product upon which the hazardous substance tax has been paid in full by a person previously in possession of the substance or product in this state. This certificate is given with full knowledge of, and subject to the legally prescribed penalties for fraud and tax evasion, and with the full knowledge and agreement that the undersigned hereby assumes any liability for hazardous substance tax which has not been previously paid because of possession of the hazardous substance or product identified herein.
. . . . | | The registered seller named below personally paid the tax upon possession of the hazardous substances. |
. . . . | | A person in possession of the hazardous substances prior to the possession of the registered seller named below paid the tax. |
(Check the appropriate line.) |
Name of registered seller . . . . | Registration No. . . . . |
Firm name . . . . | Address . . . . |
Type of business . . . . |
Authorized signature . . . . | Title . . . . |
| Date . . . . |
[Statutory Authority: RCW
82.01.060 and
82.32.300. WSR 24-22-113, s 458-20-252, filed 11/5/24, effective 12/6/24. Statutory Authority: RCW
82.01.060(2),
82.32.300, and
82.21.030. WSR 24-12-037, § 458-20-252, filed 5/30/24, effective 6/30/24. Statutory Authority: RCW
82.32.300 and
82.01.060(2). WSR 20-02-055, § 458-20-252, filed 12/24/19, effective 1/24/20. Statutory Authority: RCW
82.32.300,
82.01.060(2), and chapter
82.21 RCW. WSR 18-22-012, § 458-20-252, filed 10/25/18, effective 11/25/18. Statutory Authority: RCW
82.32.300 and
82.01.060(2). WSR 17-01-155, § 458-20-252, filed 12/21/16, effective 1/21/17. Statutory Authority: RCW
82.32.300. WSR 89-16-091 (Order 89-12), § 458-20-252, filed 8/2/89, effective 9/2/89; WSR 89-10-051 (Order 89-1), § 458-20-252, filed 5/2/89; WSR 88-06-028 (Order 88-2), § 458-20-252, filed 2/26/88.]