WSR 07-15-095

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed July 18, 2007, 10:45 a.m. ]

Subject of Possible Rule Making: A possible amendment to existing WAC 458-20-145 Local sales and use tax, explaining local sales and use tax sourcing rules for retail sales in Washington. This potential amended rule would describe Washington's new destination-based sourcing rules enacted in section 501, chapter 6, Laws of 2007 (SSB 5089). The department is also considering addressing certain tax credits available to eligible taxpayers and interest and penalty abatement provisions related to changes from existing sourcing rules to destination-based sourcing as described in SSB 5089, sections 1601 and 1602.

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

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The department believes a rule amendment is needed to explain destination-based sourcing principles to taxpayers and related exceptions under SSB 5089. Destination-based sourcing under SSB 5089 becomes effective July 1, 2008. The revised rule will help taxpayers determine where to source retail sales so that the appropriate local sales or use tax can be collected and remitted.

Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule making or giving oral testimony at the public meeting or public hearing.

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 possible rule changes is available for viewing and printing on our web site at http://dor.wa.gov/content/FindALawOrRule/RuleMaking/default.aspx. Written comments on and/or requests for copies of the rule may be directed to Tim Jennrich, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail TimJe@dor.wa.gov, phone (360) 570-6136, fax (360) 586-5543.

Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the meeting date, TTY 1-800-451-7985 or (360) 725-7499.

Public Meeting Locations: Burien (Seattle area), Criminal Justice Training Commission, 19010 1st Avenue South, Room C-151, phone (206) 835-7300, on August 21, 2007 (Tuesday), at 10:00 a.m.; in Olympia, General Administration Building, 210 11th Avenue and Columbia Street S.W., 1st Floor Auditorium, phone (360) 902-0990, on August 23, 2007 (Thursday), at 1:30 p.m.; in Pasco, Columbia Basin Community College, 2600 North 20th Avenue, Gjerde Multipurpose Facility, phone (509) 547-0511, on August 27, 2007 (Monday), at 2:00 p.m.; and in Spokane, Spokane Falls Community College, 3410 West Fort George Wright Drive, Lounge AB, phone (509) 434-5162, on August 28, 2007 (Tuesday), at 10:30 a.m.

July 18, 2007

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office