WSR 14-23-080

PREPROPOSAL STATEMENT OF INQUIRY

[Filed November 18, 2014, 4:28 p.m.]

Subject of Possible Rule Making: WAC 458-20-174 (Rule 174) Sales of motor vehicles, trailers, and parts to motor carriers operating in interstate or foreign commerce and 458-20-17401 (Rule 17401) Use tax liability for motor vehicles, trailers, and parts used by motor carriers operating in interstate or foreign commerce.

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: Rule 174 explains the application of the business and occupation tax and the retail sales tax on sales to for hire motor carriers operating in interstate or foreign commerce. Rule 17401 explains the use tax and use tax exemptions that apply to for hire motor carriers.

The department is considering an update to both rules and plan[s] to include information from ETAs 3185 and 3186 pertaining to the sourcing and attribution of income on leases and rentals of tangible personal property and the use tax liability for lessees on leased tangible personal property. Some general updating is also being considered.

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

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. A preliminary draft of possible rule changes is available via the department's online Rules Agenda.

Written comments may be submitted by mail and should be directed to Gayle Carlson, Tax Policy Specialist, ITA Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail GayleC@dor.wa.gov.

Written and oral comments will be accepted at the public meeting.

Public Meeting Location: Capital Plaza Building, 1st Floor Appeals Conference Room, 1025 Union Avenue S.E., Olympia, WA, on December 30, 2014, at 1:30 p.m. Call-in option can be provided upon request no later than three days before the meeting date.

Assistance for Persons with Disabilities: Contact Mary Carol LaPalm, (360) 725-7499, or Renee Cosare, (360) 725-7514, no later than ten days before the meeting date. For hearing impaired please contact us via the Washington relay operator at (800) 833-6384.

November 18, 2014

Dylan Waits

Rules Coordinator