WSR 02-04-055



[ Filed January 30, 2002, 1:39 p.m. ]


This announcement of the cancellation of this interpretive statement is being published in the Washington State Register pursuant to the requirements of RCW 34.05.230(4).

The Department of Revenue has cancelled the following audit directive (AD) effective January 30, 2002.

AD 8251.1 Point at which sewage collection ends -- Two different taxes apply to sewerage. The public utility tax applies to sewerage collection, while the B&O tax applies to sewerage transfer and treatment. This document explains that sewerage collection ends at the last point prior [to] the treatment facility. It notes that WAC 458-20-251 states that the collection activity ceases when sewage reaches a common point or points for disposal or transfer to treatment for disposal, and provides a diagram to illustrate how this applies.

The instructions provided in AD 8251.1 are incorrect. The Washington State Supreme Court in City of Spokane v. Dep't of Rev., Docket #70765-1 (2002), adopted a substantial use test for purposes of determining the point at which sewerage collection ends.

Questions regarding the cancellation of this directive 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

Claire Hesselholt

Policy Counsel

Washington State Code Reviser's Office