INTERPRETIVE STATEMENT
The Department of Revenue has cancelled the following excise tax advisories effective February 15, 2001.
ETA 183.16.179 Gross income of public utility districts - Local taxes included - this document explains that taxes imposed under chapter 54.28 RCW, Privilege taxes are included in the measure of tax for the purposes of chapter 82.16 RCW, Public utility tax. The latest revision of WAC 458-20-195 Taxes, deductibility, effective August 21, 2000, specifically lists this tax as an example of a tax that is not deductible when determining the measure of tax.
ETA 186.08.239 Sales to nonresident farmers and the machinery and implements exemption - RCW 82.08.0268 (cited as RCW 82.08.030(17) in this document) provides a retail sales tax exemption for sales to nonresidents of machinery and implements for use in a farming activity outside Washington. This document explains that the prefabricated buildings are not "machinery and implements" for the purposes of this exemption. While the result is correct, this information is no longer needed.
ETA 291.04.239 Parts and repairs for farm machinery of nonresidents - this document explains how the exemption discussed in WAC 458-20-239 Sales to nonresidents of farm machinery and implements, applies to sales of parts and repair services. The instructions are incorrect with respect to repair services due to the statutory changes of chapter 167, Laws of 1998. The latest revision of WAC 458-20-239, effective May 20, 2000, provides correct and comprehensive tax-reporting instructions in this area.
ETA 314.12.178 Inventory donated to charity subject to use tax - this document explains that a person donating inventory items to charitable organizations is subject to the use tax. This information is no longer correct. Chapter 182, Laws of 1998, provided a use tax exemption for the donation of inventory items to nonprofit charitable organizations.
ETA 381.04.161 Wholesale sales of rye and milo - this document explains that the lower B&O tax rate provided by then RCW 82.04.260(1) does not apply to sales of rye and milo. This information is out of date. Subsequent legislation added rye to the list of products identified in the statute being discussed. Later legislation replaced the lower B&O tax rate described in this document with an exemption. The document provides an incorrect statutory citation and incorrect tax rates.
ETA 434.04.169 Business and occupation - Sales tax: Nonprofit organization's retailing magazines - this document explains that nonprofit organizations must remit business and occupation tax and collect and remit retail sales tax on sales of religious magazines. This document fails to recognize subsequent legislation (chapter 336, Laws of 1998) that provides B&O and retail sales tax exemptions for certain fund-raising sales. It also provides an incorrect definition of "newspaper," which is defined in RCW 82.04.214.
ETA 502.40.181 Suitable records - timber harvesters - this document explains that timber harvesters are required to record and preserve scaling slips that include grading details as described by the Puget Sound Log Scaling and Grading Bureau to fulfil their record-keeping requirements under RCW 82.32.070 as explained in WAC 458-40-181. This information is out of date and no longer needed. WAC 458-40-181 no longer exists, and the latest revision of chapter 458-40 WAC, effective January 1, 2001, sufficiently addresses this issue.
ETA 504.08.504 Sales to or by Indians - this document was issued to outline procedures to implement WAC 458-20-192 Indians -- Indian reservations, as revised November 12, 1976, and to clarify certain provisions of that rule. This document is out of date and no longer needed. The latest revision of Rule 192, effective January 1, 2001, provides current information on sales to or by Indians. Many of the Department of Revenue field office addresses provided in ETA 504 are incorrect.
ETA 2005.84.33 Timber tax - Personal use of timber by landowner - this document clarifies how to distinguish between a landowner cutting timber for personal use and a landowner harvesting timber for commercial or industrial use for the purpose of determining whether the timber excise tax applies. This document is no longer needed as this issue is addressed in the latest revision of WAC 458-40-626 Timber excise tax -- Tax liability -- Private timber, tax due when harvested, which became effective January 1, 2001.
Questions regarding the repeal of these advisories may be directed to: Alan R. Lynn, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6125, fax (360) 664-0693, Internet alanl@dor.wa.gov.
Claire Hesselholt
Policy Counsel