WSR 05-06-124

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed March 2, 2005, 11:33 a.m. ]

Subject of Possible Rule Making: WAC 458-20-194 Doing business inside and outside the state.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300 and 82.01.060(2).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The current rule describes methods for apportionment of service providers' income in very general terms. Most of the department's specific advice on the subject has been by Washington tax decision (WTD), and this advice has proved difficult to interpret and apply for taxpayers. An amended rule could provide specific and consistent guidance on the subject of apportionment under RCW 82.04.460(1), creating more predictable and equitable results for taxpayers.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Chris Coffman or Nathan Schreiner, Interpretations and Technical Advice Unit, P.O. Box 47453, Olympia, WA 98504-7453, e-mail ChrisC@dor.wa.gov or NathanS@dor.wa.gov, phone (360) 570-6150 or (360) 570-6136, fax (360) 586-5543.

Public Meeting Location: Capital Plaza Building, 4th Floor, Executive Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on April 7, 2004 [2005], at 10:00 a.m.

March 2, 2005

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office