title: RCW 82.08.99941

text:
(1)(a) Subject to the conditions in this section, the tax levied by RCW 82.08.020 does not apply to sales of bottled water to persons whose primary source of drinking water is unsafe.
(b) For purposes of this subsection and RCW 82.12.99941, a person's primary source of drinking water is unsafe if:
(i) The public water system providing the drinking water has issued a public notification that the drinking water may pose a health risk, and the notification is still in effect on the date that the bottled water was purchased;
(ii) Test results on the person's drinking water, which are no more than twelve months old, from a laboratory certified to perform drinking water testing show that the person's drinking water does not meet safe drinking water standards applicable to public water systems; or
(iii) The person otherwise establishes, to the department's satisfaction, that the person's drinking water does not meet safe drinking water standards applicable to public water systems.
(2) Except for sales of bottled water delivered to the buyer in a reusable container that is not sold with the water, sellers must collect tax on sales subject to this exemption. Any buyer that has paid at least twenty-five dollars in state and local sales taxes on purchases of bottled water subject to this exemption may apply for a refund of the taxes directly from the department in a form and manner prescribed by the department. The department must deny any refund application if the amount of the refund requested is less than twenty-five dollars. No refund may be made for taxes paid more than four years after the end of the calendar year in which the tax was paid to the seller.
(3)(a) With respect to sales of bottled water delivered to the buyer in a reusable container that is not sold with the water, buyers claiming the exemption provided in this section must provide the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(b) The department may waive the requirement for an exemption certificate in the event of disaster or similar circumstance.
[ 2017 3rd sp.s. c 28 s 105.]
Notes:
Reviser's note: The tax preference enacted in section 105, chapter 28, Laws of 2017 3rd sp. sess. expires January 1, 2028, pursuant to the automatic expiration date in RCW 82.32.805(1)(a).
Existing rights and liability—Severability—Application—Effective dates—2017 3rd sp.s. c 28: See notes following RCW 82.08.0531.

catchline: Exemptions—Bottled water—Primary water source unsafe.


doc_type: statute

jurisdiction: wa

title: RCW 82.08.9995

text:
(1) The tax levied by RCW 82.08.020 does not apply to a meal provided without specific charge by a restaurant to its employees.
(2) For the purposes of this section, the following definitions apply unless the context clearly requires otherwise.
(a) "Meal" means one or more items of prepared food or beverages other than alcoholic beverages. For the purposes of this subsection, "alcoholic beverage" and "prepared food" have the same meanings as provided in RCW 82.08.0293.
(b) "Restaurant" means any establishment having special space and accommodation where food and beverages are regularly sold to the public for immediate, but not necessarily on-site, consumption, but excluding grocery stores, mini-markets, and convenience stores. Restaurant includes, but is not limited to, lunch counters, diners, coffee shops, espresso shops or bars, concession stands or counters, delicatessens, and cafeterias. It also includes space and accommodations where food and beverages are sold to the public for immediate consumption that are located within hotels, motels, lodges, boarding houses, bed and breakfast facilities, hospitals, office buildings, movie theaters, and schools, colleges, or universities, if a separate charge is made for such food or beverages. Mobile sales units that sell food or beverages for immediate consumption within a place, the entrance to which is subject to an admission charge, are "restaurants." So too are public and private carriers, such as trains and vessels, that sell food or beverages for immediate consumption if a separate charge for the food and/or beverages is made. A restaurant is open to the public for purposes of this section if members of the public can be served as guests. "Restaurant" does not include businesses making sales through vending machines or through mobile sales units such as catering trucks or sidewalk vendors of food or beverage items.
[ 2015 c 86 s 303; 2011 c 55 s 2.]
Notes:
Effective date—2011 c 55: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011." [ 2011 c 55 s 4.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Exemptions—Restaurant employee meals.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 82.08.9996

text:
(1) The tax levied by RCW 82.08.020 does not apply to sales of vessel deconstruction performed at:
(a) A qualified vessel deconstruction facility; or
(b) An area over water that has been permitted under section 402 of the clean water act of 1972 (33 U.S.C. Sec. 1342) for vessel deconstruction.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Vessel deconstruction" means permanently dismantling a vessel, including: Abatement and removal of hazardous materials; the removal of mechanical, hydraulic, or electronic components or other vessel machinery and equipment; and either the cutting apart or disposal, or both, of vessel infrastructure. For the purposes of this subsection, "hazardous materials" includes fuel, lead, asbestos, polychlorinated biphenyls, and oils.
(ii) "Vessel deconstruction" does not include vessel modification or repair.
(b) "Qualified vessel deconstruction facility" means structures, including floating structures, that are permitted under section 402 of the clean water act of 1972 (33 U.S.C. Sec. 1342) for vessel deconstruction.
(3) Sellers making tax-exempt sales under this section must obtain from the purchaser an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement.
[ 2014 c 195 s 301.]
Notes:
Reviser's note: Section 301, chapter 195, Laws of 2014 expires January 1, 2025, pursuant to the automatic expiration date established in RCW 82.32.805(1)(a).
Effective date—2014 c 195 ss 301 and 302: "Sections 301 and 302 of this act take effect October 1, 2014." [ 2014 c 195 s 304.]
Findings—Intent—2014 c 195: See notes following RCW 79.100.170 and 79.100.180.

catchline: Exemptions—Vessel deconstruction.


title: RCW 82.08.9997

text:
The taxes imposed by this chapter do not apply to the retail sale of cannabis, useable cannabis, cannabis concentrates, and cannabis-infused products covered by an agreement entered into under RCW 43.06.490. "Cannabis," "useable cannabis," "cannabis concentrates," and "cannabis-infused products" have the same meaning as defined in RCW 69.50.101. The provisions of RCW 82.32.805 and 82.32.808 do not apply to this section.
[ 2022 c 56 s 6; 2022 c 16 s 154; 2015 c 207 s 4.]
Notes:
Reviser's note: This section was amended by 2022 c 16 s 154 and by 2022 c 56 s 6, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Intent—Finding—2015 c 207: See note following RCW 43.06.490.

catchline: Exemptions—Retail sale of cannabis, useable cannabis, cannabis concentrates, and cannabis-infused products covered by cannabis agreement between state and tribe.


title: RCW 82.08.9998

text:
(1) The tax levied by RCW 82.08.020 does not apply to:
(a) Sales of cannabis concentrates, useable cannabis, or cannabis-infused products, identified by the department of health in rules adopted under RCW 69.50.375(4) in chapter 246-70 WAC as being a compliant cannabis product, by cannabis retailers with medical cannabis endorsements to qualifying patients or designated providers who have been issued recognition cards;
(b) Sales of products containing THC with a THC concentration of 0.3 percent or less to qualifying patients or designated providers who have been issued recognition cards by cannabis retailers with medical cannabis endorsements;
(c) Sales of cannabis concentrates, useable cannabis, or cannabis-infused products, identified by the department of health under RCW 69.50.375 to have a low THC, high CBD ratio, and to be beneficial for medical use, by cannabis retailers with medical cannabis endorsements, to any person;
(d) Sales of topical, noningestible products containing THC with a THC concentration of 0.3 percent or less by health care professionals under RCW 69.51A.280;
(e)(i) Cannabis, cannabis concentrates, useable cannabis, cannabis-infused products, or products containing THC with a THC concentration of 0.3 percent or less produced by a cooperative and provided to its members; and
(ii) Any nonmonetary resources and labor contributed by an individual member of the cooperative in which the individual is a member. However, nothing in this subsection (1)(e) may be construed to exempt the individual members of a cooperative from the tax imposed in RCW 82.08.020 on any purchase of property or services contributed to the cooperative.
(2) Each seller making exempt sales under subsection (1) of this section must maintain information establishing eligibility for the exemption in the form and manner required by the department.
(3) The department must provide a separate tax reporting line for exemption amounts claimed under this section.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Cooperative" means a cooperative authorized by and operating in compliance with RCW 69.51A.250.
(b) "Cannabis retailer with a medical cannabis endorsement" means a cannabis retailer permitted under RCW 69.50.375 to sell cannabis for medical use to qualifying patients and designated providers.
(c) "Products containing THC with a THC concentration of 0.3 percent or less" means all products containing THC with a THC concentration not exceeding 0.3 percent and that, when used as intended, are inhalable, ingestible, or absorbable.
(d) "THC concentration," "cannabis," "cannabis concentrates," "useable cannabis," "cannabis retailer," and "cannabis-infused products" have the same meanings as provided in RCW 69.50.101 and the terms "qualifying patients," "designated providers," and "recognition card" have the same meaning as provided in RCW 69.51A.010.
[ 2022 c 16 s 155; 2019 c 393 s 4; 2015 2nd sp.s. c 4 s 207.]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Effective date—2019 c 393: See note following RCW 69.50.345.
Intent—2019 c 393: See note following RCW 69.50.346.
Applicability—2015 2nd sp.s. c 4 ss 207 and 208: "The provisions of RCW 82.32.805 and 82.32.808(8) do not apply to the exemptions in RCW 82.08.9998 and 82.12.9998." [ 2015 2nd sp.s. c 4 s 209.]
Findings—Intent—Effective dates—2015 2nd sp.s. c 4: See notes following RCW 69.50.334.

catchline: Exemptions—Cannabis concentrates, useable cannabis, or cannabis-infused products—Products containing low amounts of THC.


title: RCW 82.08.9999

text:
(1) Beginning August 1, 2019, with sales made or lease agreements signed on or after the qualification period start date:
(a) The tax levied by RCW 82.08.020 does not apply as provided in (b) of this subsection to sales or leases of new or used passenger cars, light duty trucks, and medium duty passenger vehicles that:
(i) Are exclusively powered by a clean alternative fuel; or
(ii) Use at least one method of propulsion that is capable of being reenergized by an external source of electricity and are capable of traveling at least 30 miles using only battery power; and
(iii)(A) Have a vehicle selling price plus trade-in property of like kind for purchased vehicles that:
(I) For a vehicle that is a new vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $45,000; or
(II) For a vehicle that is a used vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $30,000; or
(B) Have a fair market value at the inception of the lease for leased vehicles that:
(I) For a vehicle that is a new vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $45,000; or
(II) For a vehicle that is a used vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $30,000;
(b)(i) The exemption in this section is applicable for up to the amounts specified in (b)(ii) or (iii) of this subsection of:
(A) The total amount of the vehicle's selling price, for sales made; or
(B) The total lease payments made plus any additional selling price of the leased vehicle if the original lessee purchases the leased vehicle before the qualification period end date, for lease agreements signed.
(ii) Based on the purchase date or the date the lease agreement was signed of the vehicle if the vehicle is a new vehicle at the time of the purchase date or the date the lease agreement was signed:
(A) From the qualification period start date until July 31, 2021, the maximum amount eligible under (b)(i) of this subsection is $25,000;
(B) From August 1, 2021, until July 31, 2023, the maximum amount eligible under (b)(i) of this subsection is $20,000;
(C) From August 1, 2023, until July 31, 2025, the maximum amount eligible under (b)(i) of this subsection is $15,000.
(iii) If the vehicle is a used vehicle at the time of the purchase date or the date the lease agreement was signed, the maximum amount eligible under (b)(i) of this subsection is $16,000.
(2) The seller must keep records necessary for the department to verify eligibility under this section. A person claiming the exemption must also submit itemized information to the department for all vehicles for which an exemption is claimed that must include the following: Vehicle make; vehicle model; model year; whether the vehicle has been sold or leased; date of sale or start date of lease; length of lease; sales price for purchased vehicles and fair market value at the inception of the lease for leased vehicles; and the total amount qualifying for the incentive claimed for each vehicle, in addition to the future monthly amount to be claimed for each leased vehicle. This information must be provided in a form and manner prescribed by the department.
(3)(a) The department of licensing must maintain and publish a list of all vehicle models qualifying for the tax exemptions under this section or RCW 82.12.9999 until the expiration date of this section, and is authorized to issue final rulings on vehicle model qualification for these criteria. A seller is not responsible for repayment of the tax exemption under this section and RCW 82.12.9999 for a vehicle if the department of licensing's published list of qualifying vehicle models on the purchase date or the date the lease agreement was signed includes the vehicle model and the department of licensing subsequently removes the vehicle model from the published list, and, if applicable, the vehicle meets the qualifying criterion under subsection (1)(a)(iii)(B) of this section and RCW 82.12.9999(1)(a)(iii)(B).
(b) The department of revenue retains responsibility for determining whether a vehicle meets the applicable qualifying criterion under subsection (1)(a)(iii)(B) of this section and RCW 82.12.9999(1)(a)(iii)(B).
(4) By the last day of October 2019, and every six months thereafter until October 31, 2025, based on the best available data, the department must report the following information to the transportation committees of the legislature: The cumulative number of vehicles that qualified for the exemption under this section and RCW 82.12.9999 by month of purchase or lease start and vehicle make and model; the dollar amount of all state retail sales and use taxes exempted on or after the qualification period start date, under this section and RCW 82.12.9999; and estimates of the future costs of leased vehicles that qualified for the exemption under this section and RCW 82.12.9999.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Clean alternative fuel" means natural gas, propane, hydrogen, or electricity, when used as a fuel in a motor vehicle that meets the California motor vehicle emission standards in Title 13 of the California Code of Regulations, effective January 1, 2019, and the rules of the Washington state department of ecology.
(b) "Fair market value" has the same meaning as "value of the article used" in RCW 82.12.010.
(c) "New vehicle" has the same meaning as "new motor vehicle" in RCW 46.04.358.
(d) "Qualification period end date" means August 1, 2025.
(e) "Qualification period start date" means August 1, 2019.
(f) "Used vehicle" has the same meaning as in RCW 46.04.660.
(6)(a) Sales of vehicles delivered to the buyer or leased vehicles for which the lease agreement was signed after the qualification period end date do not qualify for the exemption under this section.
(b) All leased vehicles that qualified for the exemption under this section before the qualification period end date must continue to receive the exemption as described under subsection (1)(b) of this section on any lease payments due through the remainder of the lease before August 1, 2028.
(7) This section expires August 1, 2028.
(8) This section is supported by the revenues generated in RCW 46.17.324, and therefore takes effect only if RCW 46.17.324 is enacted by June 30, 2019.
[ 2026 c 255 s 701; 2026 c 250 s 11; 2022 c 182 s 305; 2021 c 145 s 13; 2019 c 287 s 9.]
Notes:
Intent—2026 c 255: See note following RCW 82.08.020.
Intent—Effective date—2022 c 182: See notes following RCW 70A.65.240.
Tax preference performance statement—2019 c 287 ss 8-14: See note following RCW 82.04.4496.
Findings—Intent—2019 c 287: See note following RCW 28B.30.903.

catchline: Exemptions—Vehicles using clean alternative fuels and electric vehicles. (Expires August 1, 2028.)


title: RCW 82.08.99991

text:
See RCW 82.32.805 for the expiration date of new tax preferences for the tax imposed under this chapter.
[ 2013 2nd sp.s. c 13 s 1705.]
Notes:
Effective date—2013 2nd sp.s. c 13: See note following RCW 82.04.43393.

catchline: Tax preferences—Expiration dates.


title: RCW 82.12.010

text:
For the purposes of this chapter:
(1) The meaning ascribed to words and phrases in chapters 82.04 and 82.08 RCW, insofar as applicable, has full force and effect with respect to taxes imposed under the provisions of this chapter. "Consumer," in addition to the meaning ascribed to it in chapters 82.04 and 82.08 RCW insofar as applicable, also means any person who distributes or displays, or causes to be distributed or displayed, any article of tangible personal property, except newspapers, the primary purpose of which is to promote the sale of products or services. With respect to property distributed to persons within this state by a consumer as defined in this subsection (1), the use of the property is deemed to be by such consumer.
(2) "Extended warranty" has the same meaning as in RCW 82.04.050(7).
(3) "Purchase price" means the same as sales price as defined in RCW 82.08.010.
(4)(a)(i) Except as provided in (a)(ii) of this subsection (4), "retailer" means every seller as defined in RCW 82.08.010 and every person engaged in the business of selling tangible personal property at retail and every person required to collect from purchasers the tax imposed under this chapter.
(ii) "Retailer" does not include a professional employer organization when a covered employee coemployed with the client under the terms of a professional employer agreement engages in activities that constitute a sale of tangible personal property, extended warranty, digital good, or a sale of any digital automated service or service defined as a retail sale in *RCW 82.04.050 (2) (a) or (g) or (6)(b) that is subject to the tax imposed by this chapter. In such cases, the client, and not the professional employer organization, is deemed to be the retailer and is responsible for collecting and remitting the tax imposed by this chapter.
(b) For the purposes of (a) of this subsection, the terms "client," "covered employee," "professional employer agreement," and "professional employer organization" have the same meanings as in RCW 82.04.540.
(5) "Taxpayer" and "purchaser" include all persons included within the meaning of the word "buyer" and the word "consumer" as defined in chapters 82.04 and 82.08 RCW.
(6) "Use," "used," "using," or "put to use" have their ordinary meaning, and mean:
(a) With respect to tangible personal property, except for natural gas and manufactured gas, the first act within this state by which the taxpayer takes or assumes dominion or control over the article of tangible personal property (as a consumer), and include installation, storage, withdrawal from storage, distribution, or any other act preparatory to subsequent actual use or consumption within this state;
(b) With respect to a service defined in RCW 82.04.050(2)(a), the first act within this state after the service has been performed by which the taxpayer takes or assumes dominion or control over the article of tangible personal property upon which the service was performed (as a consumer), and includes installation, storage, withdrawal from storage, distribution, or any other act preparatory to subsequent actual use or consumption of the article within this state;
(c) With respect to an extended warranty, the first act within this state after the extended warranty has been acquired by which the taxpayer takes or assumes dominion or control over the article of tangible personal property to which the extended warranty applies, and includes installation, storage, withdrawal from storage, distribution, or any other act preparatory to subsequent actual use or consumption of the article within this state;
(d) With respect to a digital good, including a digital good obtained through the use of a digital code, the first act within this state by which the taxpayer, as a consumer, views, accesses, downloads, possesses, stores, opens, manipulates, or otherwise uses or enjoys the digital good;
(e) With respect to a digital automated service, including a digital automated service obtained through the use of a digital code, the first act within this state by which the taxpayer, as a consumer, uses, enjoys, or otherwise receives the benefit of the service;
(f) With respect to a service defined as a retail sale in *RCW 82.04.050(6)(b), the first act within this state by which the taxpayer, as a consumer, accesses the prewritten computer software;
(g) With respect to a service defined as a retail sale in *RCW 82.04.050(2)(g), the first act within this state after the service has been performed by which the taxpayer, as a consumer, views, accesses, downloads, possesses, stores, opens, manipulates, or otherwise uses or enjoys the digital good upon which the service was performed; and
(h) With respect to natural gas or manufactured gas, the use of which is taxable under RCW 82.12.022, including gas that is also taxable under the authority of RCW 82.14.230, the first act within this state by which the taxpayer consumes the gas by burning the gas or storing the gas in the taxpayer's own facilities for later consumption by the taxpayer.
(7)(a) "Value of the article used" is the purchase price for the article of tangible personal property, the use of which is taxable under this chapter. The term also includes, in addition to the purchase price, the amount of any tariff or duty paid with respect to the importation of the article used. In case the article used is acquired by lease or by gift or is extracted, produced, or manufactured by the person using the same or is sold under conditions wherein the purchase price does not represent the true value thereof, the value of the article used is determined as nearly as possible according to the retail selling price at place of use of similar products of like quality and character under such rules as the department may prescribe.
(b) In case the articles used are acquired by bailment, the value of the use of the articles so used must be in an amount representing a reasonable rental for the use of the articles so bailed, determined as nearly as possible according to the value of such use at the places of use of similar products of like quality and character under such rules as the department of revenue may prescribe. In case any such articles of tangible personal property are used in respect to the construction, repairing, decorating, or improving of, and which become or are to become an ingredient or component of, new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing or attaching of any such articles therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, then the value of the use of such articles so used is determined according to the retail selling price of such articles, or in the absence of such a selling price, as nearly as possible according to the retail selling price at place of use of similar products of like quality and character or, in the absence of either of these selling price measures, such value may be determined upon a cost basis, in any event under such rules as the department of revenue may prescribe.
(c) In the case of articles owned by a user engaged in business outside the state which are brought into the state for no more than 180 days in any period of 365 consecutive days and which are temporarily used for business purposes by the person in this state, the value of the article used must be an amount representing a reasonable rental for the use of the articles, unless the person has paid tax under this chapter or chapter 82.08 RCW upon the full value of the article used, as defined in (a) of this subsection.
(d) In the case of articles manufactured or produced by the user and used in the manufacture or production of products sold or to be sold to the department of defense of the United States, the value of the articles used is determined according to the value of the ingredients of such articles.
(e) In the case of an article manufactured or produced for purposes of serving as a prototype for the development of a new or improved product, the value of the article used is determined by: (i) The retail selling price of such new or improved product when first offered for sale; or (ii) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale.
(f) In the case of an article purchased with a direct pay permit under RCW 82.32.087, the value of the article used is determined by the purchase price of such article if, but for the use of the direct pay permit, the transaction would have been subject to sales tax.
(g) In the case of asphalt or aggregates manufactured or extracted by a person providing services taxable under RCW 82.04.280(1)(b) and used by that person in providing those services, the value of the asphalt or aggregates is equal to the sum of all direct and indirect costs attributable to the asphalt or aggregates used, plus a public road construction market adjustment of five percent of those costs.
(8) "Value of the digital good used" means the purchase price for the digital good, the use of which is taxable under this chapter. If the digital good is acquired other than by purchase, the value of the digital good must be determined as nearly as possible according to the retail selling price at place of use of similar digital goods of like quality and character under rules the department may prescribe.
(9) "Value of the extended warranty used" means the purchase price for the extended warranty, the use of which is taxable under this chapter. If the extended warranty is received by gift or under conditions wherein the purchase price does not represent the true value of the extended warranty, the value of the extended warranty used is determined as nearly as possible according to the retail selling price at place of use of similar extended warranties of like quality and character under rules the department may prescribe.
(10) "Value of the service used" means the purchase price for the digital automated service or other service, the use of which is taxable under this chapter. If the service is received by gift or under conditions wherein the purchase price does not represent the true value thereof, the value of the service used is determined as nearly as possible according to the retail selling price at place of use of similar services of like quality and character under rules the department may prescribe.
[ 2026 c 250 s 13; 2023 c 307 s 2; 2017 c 323 s 519; 2015 c 169 s 5. Prior: 2010 c 127 s 4; 2009 c 535 s 304; 2006 c 301 s 3; 2005 c 514 s 104; prior: 2003 c 168 s 102; 2003 c 5 s 1; 2002 c 367 s 3; 2001 c 188 s 3; 1994 c 93 s 1; prior: 1985 c 222 s 1; 1985 c 132 s 1; 1983 1st ex.s. c 55 s 2; 1975-'76 2nd ex.s. c 1 s 1; 1975 1st ex.s. c 278 s 52; 1965 ex.s. c 173 s 17; 1961 c 293 s 15; 1961 c 15 s 82.12.010; prior: 1955 c 389 s 24; 1951 1st ex.s. c 9 s 3; 1949 c 228 s 9; 1945 c 249 s 8; 1943 c 156 s 10; 1939 c 225 s 18; 1937 c 191 s 4; 1935 c 180 s 35; Rem. Supp. 1949 s 8370-35.]
Notes:
*Reviser's note: RCW 82.04.050 was amended by 2026 c 238 s 1001 (effective January 1, 2029), 2026 c 238 s 1101, and 2026 c 250 s 2, changing subsection lettering.
Retroactive application—2026 c 250 ss 2-4, 8, 10, 12-18, and 22: See note following RCW 82.04.050.
Findings—Intent—Application—Effective date—2023 c 307: See notes following RCW 82.04.450.
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Effective date—2015 c 169: See note following RCW 82.04.050.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Effective date—Act does not affect application of Title 50 or 51 RCW—2006 c 301: See notes following RCW 82.32.710.
Effective date—2005 c 514: See note following RCW 83.100.230.
Part headings not law—Severability—2005 c 514: See notes following RCW 82.12.808.
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Finding—Intent—Retroactive application—2003 c 5: "The legislature finds that in the enactment of chapter 367, Laws of 2002, some use tax exemptions were not updated to reflect the change in taxability regarding services. It is the legislature's intent to correct this omission by amending the various use tax exemptions so that services exempt from the sales tax are also exempt from the use tax. Sections 1 through 19 of this act apply retroactively to June 1, 2002. The department of revenue shall refund any use taxes paid and forgive use taxes unpaid as a result of the omission." [ 2003 c 5 s 20.]
Effective date—2003 c 5: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 18, 2003]." [ 2003 c 5 s 21.]
Severability—Effective date—2002 c 367: See notes following RCW 82.04.060.
Finding—Intent—Effective date—2001 c 188: See notes following RCW 82.32.087.
Effective date—1994 c 93: "This act shall take effect July 1, 1994." [ 1994 c 93 s 3.]
Effective dates—1983 1st ex.s. c 55: See note following RCW 82.08.010.
Application to preexisting contracts—1975-'76 2nd ex.s. c 1; 1975 1st ex.s. c 90: "In the event any person has entered into a contract prior to July 1, 1975 or has bid upon a contract prior to July 1, 1975 and has been awarded the contract after July 1, 1975, the additional taxes imposed by chapter 90, Laws of 1975 1st ex. sess., section 5, chapter 291, Laws of 1975 1st ex. sess. and this 1975 amendatory act shall not be required to be paid by such person in carrying on activities in the fulfillment of such contract." [1975-'76 2nd ex.s. c 1 s 3; 1975 1st ex.s. c 90 s 4.]
Severability—1975-'76 2nd ex.s. c 1: "If any provision of this 1975 amendatory act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1975-'76 2nd ex.s. c 1 s 4.]
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.
Effective date—1965 ex.s. c 173: See note following RCW 82.04.050.

catchline: Definitions.


title: RCW 82.12.020

text:
(1) There is levied and collected from every person in this state a tax or excise for the privilege of using within this state as a consumer any:
(a) Article of tangible personal property acquired by the user in any manner, including tangible personal property acquired at a casual or isolated sale, and including by-products used by the manufacturer thereof, except as otherwise provided in this chapter, irrespective of whether the article or similar articles are manufactured or are available for purchase within this state;
(b) Prewritten computer software, regardless of the method of delivery, but excluding prewritten computer software that is either provided free of charge or is provided for temporary use in viewing information, or both;
(c)(i) Until September 30, 2025, services defined as a retail sale in *RCW 82.04.050 (2) (a) or (g) or (6)(b), excluding services defined as a retail sale in *RCW 82.04.050(6)(b) that are provided free of charge;
(ii) Beginning October 1, 2025, services defined as a retail sale in *RCW 82.04.050 (2) (a) or (g), (3) (g), (h), (i), (j), or (k), or (6)(b), excluding services defined as a retail sale in RCW 82.04.050(6)(b) that are provided free of charge and services excluded from the definition of "sale at retail" or "retail sale" under RCW 82.04.050(17);
(d) Extended warranty; or
(e)(i) Digital good, digital code, or digital automated service, including the use of any services provided by a seller exclusively in connection with digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services.
(ii) With respect to the use of digital goods, digital automated services, and digital codes acquired by purchase, the tax imposed in this subsection (1)(e) applies in respect to:
(A) Sales in which the seller has granted the purchaser the right of permanent use;
(B) Sales in which the seller has granted the purchaser a right of use that is less than permanent;
(C) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and
(D) Sales in which the purchaser is obligated to make continued payment as a condition of the sale.
(iii) With respect to digital goods, digital automated services, and digital codes acquired other than by purchase, the tax imposed in this subsection (1)(e) applies regardless of whether or not the consumer has a right of permanent use or is obligated to make continued payment as a condition of use.
(2)(a) Until September 30, 2025, the provisions of this chapter do not apply in respect to the use of any article of tangible personal property, extended warranty, digital good, digital code, digital automated service, or service taxable under *RCW 82.04.050 (2) (a) or (g) or (6)(b), if the sale to, or the use by, the present user or the present user's bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by the present user's bailor or donor.
(b) Beginning October 1, 2025, the provisions of this chapter do not apply in respect to the use of any article of tangible personal property, extended warranty, digital good, digital code, digital automated service, or service taxable under *RCW 82.04.050 (2) (a) or (g), (3) (g), (h), (i), (j), or (k), or (6)(b), if the sale to, or the use by, the present user or the present user's bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by the present user's bailor or donor.
(3)(a) Except as provided in this section, payment of the tax imposed by this chapter or chapter 82.08 RCW by one purchaser or user of tangible personal property, extended warranty, digital good, digital code, digital automated service, or other service does not have the effect of exempting any other purchaser or user of the same property, extended warranty, digital good, digital code, digital automated service, or other service from the taxes imposed by such chapters.
(b) The tax imposed by this chapter does not apply:
(i) If the sale to, or the use by, the present user or his or her bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by his or her bailor or donor;
(ii) In respect to the use of any article of tangible personal property acquired by bailment and the tax has once been paid based on reasonable rental as determined by RCW 82.12.060 measured by the value of the article at time of first use multiplied by the tax rate imposed by chapter 82.08 RCW or this chapter as of the time of first use;
(iii) In respect to the use of any article of tangible personal property acquired by bailment, if the property was acquired by a previous bailee from the same bailor for use in the same general activity and the original bailment was prior to June 9, 1961;
(iv) To the use of digital goods or digital automated services, which were obtained through the use of a digital code, if the sale of the digital code to, or the use of the digital code by, the present user or the present user's bailor or donor has already been subjected to the tax under chapter 82.08 RCW or this chapter and the tax has been paid by the present user or by the present user's bailor or donor; or
(v) The use of any service taxable under RCW 82.04.050 if the service is rendered by the taxpayer's own employees in the course of their employment.
(4)(a) Except as provided in (b) of this subsection (4), the tax is levied and must be collected in an amount equal to the value of the article used, value of the digital good or digital code used, value of the extended warranty used, or value of the service used by the taxpayer, multiplied by the applicable rates in effect for the retail sales tax under RCW 82.08.020.
(b) In the case of a seller required to collect use tax from the purchaser, the tax must be collected in an amount equal to the purchase price multiplied by the applicable rate in effect for the retail sales tax under RCW 82.08.020.
(5) Beginning July 1, 2027, the portion of taxes collected by the state under subsection (1) of this section equal to 0.1 percent of the value of the article used, value of the digital good or digital code used, value of the extended warranty used, or value of the service used by the taxpayer, must be deposited in the multimodal transportation account created in RCW 47.66.070.
(6) For purposes of the tax imposed in this section, "person" includes anyone within the definition of "buyer," "purchaser," and "consumer" in RCW 82.08.010.
[ 2026 c 255 s 102; 2026 c 250 s 14. Prior: 2025 c 418 s 4; 2025 c 417 s 202; 2017 c 323 s 520; 2015 c 169 s 6; 2010 1st sp.s. c 23 s 206; 2009 c 535 s 305; 2005 c 514 s 105; prior: 2003 c 361 s 302; 2003 c 168 s 214; 2003 c 5 s 2; 2002 c 367 s 4; 1999 c 358 s 9; 1998 c 332 s 7; 1996 c 148 s 5; 1994 c 93 s 2; 1983 c 7 s 7; 1981 2nd ex.s. c 8 s 2; 1980 c 37 s 79; 1977 ex.s. c 324 s 3; 1975-'76 2nd ex.s. c 130 s 2; 1975-'76 2nd ex.s. c 1 s 2; 1971 ex.s. c 281 s 10; 1969 ex.s. c 262 s 32; 1967 ex.s. c 149 s 22; 1965 ex.s. c 173 s 18; 1961 c 293 s 9; 1961 c 15 s 82.12.020; prior: 1959 ex.s. c 3 s 10; 1955 ex.s. c 10 s 3; 1955 c 389 s 25; 1949 c 228 s 7; 1943 c 156 s 8; 1941 c 76 s 6; 1939 c 225 s 14; 1937 c 191 s 1; 1935 c 180 s 31; Rem. Supp. 1949 s 8370-31.]
Notes:
Reviser's note: *(1) RCW 82.04.050 was amended by 2026 c 238 s 1001 (effective January 1, 2029), 2026 c 238 s 1101, and 2026 c 250 s 2, changing subsection lettering.
(2) This section was amended by 2026 c 250 s 14 and by 2026 c 255 s 102, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Effective date—2026 c 255 ss 101, 102, 201, 202, 203, 301, and 302: See note following RCW 82.08.020.
Intent—2026 c 255: See note following RCW 82.08.020.
Retroactive application—2026 c 250 ss 2-4, 8, 10, 12-18, and 22: See note following RCW 82.04.050.
Effective date—2025 c 417 ss 104, 105, 107-110, 201-206, 301-303, 604, and 903: See note following RCW 46.17.355.
Findings—Intent—2025 c 417: See note following RCW 82.38.030.
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Effective date—2015 c 169: See note following RCW 82.04.050.
Effective date—2010 1st sp.s. c 23: See note following RCW 82.32.655.
Findings—Intent—2010 1st sp.s. c 23: See notes following RCW 82.04.220.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Effective date—2005 c 514: See note following RCW 83.100.230.
Part headings not law—Severability—2005 c 514: See notes following RCW 82.12.808.
Effective dates—2003 c 361: See note following RCW 82.08.020.
Findings—2003 c 361: See note following RCW 82.38.030.
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Severability—Effective date—2002 c 367: See notes following RCW 82.04.060.
Effective date—1999 c 358 ss 1 and 3-21: See note following RCW 82.04.3651.
Findings—Intent—Effective date—1998 c 332: See notes following RCW 82.04.050.
Severability—Effective date—1996 c 148: See notes following RCW 82.04.050.
Effective date—1994 c 93: See note following RCW 82.12.010.
Construction—Severability—Effective dates—1983 c 7: See notes following RCW 82.08.020.
Intent—1980 c 37: See note following RCW 82.04.4281.
Effective date—1975-'76 2nd ex.s. c 130: See note following RCW 82.08.020.
Application to preexisting contracts—1975-'76 2nd ex.s. c 1: See note following RCW 82.12.010.
Severability—1975-'76 2nd ex.s. c 1: See note following RCW 82.12.010.
High capacity transportation systems—Sales and use tax: RCW 81.104.170.

catchline: Use tax imposed.


title: RCW 82.12.0201

text:
Beginning on December 8, 2005, 0.16 percent of the taxes collected under RCW 82.12.020 based on the rate in RCW 82.08.020(1) shall be dedicated to funding comprehensive performance audits under RCW 43.09.470. Revenue identified in this section shall be deposited in the performance audits of government account created in RCW 43.09.475.
[ 2006 c 1 s 4 (Initiative Measure No. 900, approved November 8, 2005).]
Notes:
Short title—Effective date—2006 c 1 (Initiative Measure No. 900): See RCW 43.09.471.
Policies and purposes—Construction—Severability—Part headings not law—2006 c 1 (Initiative Measure No. 900): See notes following RCW 43.09.470.

catchline: Dedication of taxes—Comprehensive performance audits.


title: RCW 82.12.0203

text:
(1)(a) The value of the article used with respect to refinery fuel gas subject to tax under this chapter is the three-year average spot price of natural gas as calculated by the department.
(b) For the purposes of this section, "three-year average spot price of natural gas" means the average of the 36 most recent monthly Henry Hub natural gas spot prices, as published by the federal energy information administration or successor federal agency.
(c) The department must calculate and publish the three-year average spot price of natural gas on its website on a quarterly basis by:
(i) March 25th of each year, for tax due under this chapter on activities occurring April 1st through June 30th of that year;
(ii) June 25th of each year, for tax due under this chapter on activities occurring July 1st through September 30th of that year;
(iii) September 25th of each year, for tax due under this chapter on activities occurring October 1st through December 31st of that year; and
(iv) December 25th of each year, for tax due under this chapter on activities occurring January 1st through March 31st of the following year.
(d) If the federal energy information administration or successor federal agency no longer publishes the Henry Hub natural gas spot price:
(i) The department must notify the appropriate fiscal committees of the legislature that the Henry Hub natural gas spot price is no longer being published by the federal government. This notification must occur before the beginning of the next regular legislative session following the department becoming aware that the federal energy information administration or successor federal agency no longer publishes the Henry Hub natural gas spot price.
(ii) Until such time as a replacement valuation standard is enacted into law, the value of the article used with respect to refinery fuel gas subject to tax under this chapter is the most recent three-year average spot price of natural gas published by the department on its website.
(2) In lieu of the use tax rate provided in RCW 82.12.020, refinery fuel gas is subject to a rate of:
(a) 0.963 percent from January 1, 2018, through December 31, 2018;
(b) 1.926 percent from January 1, 2019, through December 31, 2019;
(c) 2.889 percent from January 1, 2020, through December 31, 2020; and
(d) 3.852 percent from January 1, 2021, and thereafter.
(3) The use of fuel by the extractor or manufacturer thereof when used directly in the operation of the particular extractive operation or manufacturing plant that produced or manufactured the same is not subject to local use tax.
[ 2023 c 68 s 2; 2017 3rd sp.s. c 28 s 108.]
Notes:
Reviser's note: The tax preference enacted in section 108, chapter 28, Laws of 2017 3rd sp. sess. and the effective date for that section subsequently amended by section 2, chapter 92, Laws of 2018 expires January 1, 2029, pursuant to the automatic expiration date established in RCW 82.32.805(1)(a).
Tax preference performance statement—2018 c 92: "(1) This section is the tax preference performance statement for the tax preference contained in section 108, chapter 28, Laws of 2017 3rd sp. sess. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to induce certain designated behavior by taxpayers and improve industry competitiveness, as indicated in RCW 82.32.808(2) (a) and (b).
(3) If a review finds that there is an increase in self-produced fuel as the result of this tax preference, then the legislature intends to extend the expiration date of this tax preference.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee may refer to any data collected by the state." [ 2018 c 92 s 1.]
Application—2017 3rd sp.s. c 28 ss 107-109: See note following RCW 82.12.0263.
Existing rights and liability—Severability—Application—Effective dates—2017 3rd sp.s. c 28: See notes following RCW 82.08.0531.

catchline: Refinery fuel gas—Value—Tax rate—Local use tax exemption.


title: RCW 82.12.0205

text:
The provisions of this chapter do not apply with respect to the use of waste vegetable oil that is used by a person in the production of biodiesel for personal use. The definitions in RCW 82.08.0205 apply to this section.
[ 2008 c 237 s 3.]
Notes:
Effective date—2008 c 237: See note following RCW 82.08.0205.

catchline: Exemptions—Waste vegetable oil.


title: RCW 82.12.0207

text:
(1) An eligible purchaser who has paid the tax levied by RCW 82.12.020 on materials incorporated as an ingredient or component of adapted housing is eligible for an exemption from all or a portion of that tax in the form of a remittance.
(2) All of the eligibility requirements, conditions, limitations, and definitions in RCW 82.08.0207 apply to this section.
[ 2017 c 176 s 3.]
Notes:
Reviser's note: The tax preference enacted in section 3, chapter 176, Laws of 2017 expires January 1, 2028, pursuant to the automatic expiration date in RCW 82.32.805(1)(a).
Findings—Intent—Application—2017 c 176: See notes following RCW 82.08.0207.


title: RCW 82.12.0208

text:
(1) The provisions of this chapter do not apply in respect to the use of a digital code for one or more digital products, if the use of the digital products to which the digital code relates is exempt from the tax levied by RCW 82.12.020.
(2) The provisions of this chapter do not apply to the use by a business or other organization of digital goods, digital codes, digital automated services, or services defined as a retail sale in *RCW 82.04.050(6)(b) for the purpose of making the digital good or digital automated service, including a digital good or digital automated service acquired through the use of a digital code, or service defined as a retail sale in *RCW 82.04.050(6)(b) available free of charge for the use or enjoyment of the general public. For purposes of this subsection (2), "general public" has the same meaning as in RCW 82.08.0208. The exemption provided in this subsection (2) does not apply unless the user has the legal right to broadcast, rebroadcast, transmit, retransmit, license, relicense, distribute, redistribute, or exhibit the product, in whole or in part, to the general public.
(3) The provisions of this chapter do not apply to the use by students of digital goods furnished by a public or private elementary or secondary school, or an institution of higher education as defined in section 1001 or 1002 of the federal higher education act of 1965 (Title 20 U.S.C. Secs. 1001 and 1002), as existing on July 1, 2009.
(4)(a) The provisions of this chapter do not apply in respect to the use of digital goods that are:
(i) Of a noncommercial nature, such as personal email communications;
(ii) Created solely for an internal audience; or
(iii) Created solely for the business needs of the person who created the digital good, including business email communications, but not including the type of digital good that is offered for sale.
(b) This subsection (4) does not apply to the use of any digital goods purchased by the user, the user's donor, or anybody on the user's behalf.
(5) The provisions of this chapter do not apply in respect to the use of digital products or digital codes obtained by the end user free of charge.
(6) The provisions of this chapter do not apply to the use by a business of digital goods, and services rendered in respect to digital goods, where the digital goods and services rendered in respect to digital goods are used solely for business purposes. The exemption provided by this subsection (6) also applies to the use by a business of a digital code if all of the digital goods to be obtained through the use of the code will be used solely for business purposes. For purposes of this subsection (6), the definitions in RCW 82.08.0208 apply.
(7)(a) A business or other organization subject to the tax imposed in RCW 82.12.020 on the use of digital goods, digital codes, digital automated services, prewritten computer software, or services defined as a retail sale in *RCW 82.04.050 (3)(k) and (6)(b) that are concurrently available for use within and outside this state is entitled to apportion the amount of tax due this state based on users in this state compared to users everywhere.
(b)(i) The department may authorize or require an alternative method of apportionment supported by the taxpayer's records that fairly reflects the proportion of in-state to out-of-state use by the taxpayer of the digital goods, digital automated services, prewritten computer software, or services defined as a retail sale in *RCW 82.04.050(6)(b).
(ii) For advertising services, as defined in *RCW 82.04.050(3)(k), the determination of in-state and out-of-state use, for purposes of this subsection (7)(b), is based on the locations where the related advertisements are viewed by a user or otherwise interacted with by a user. If a taxpayer is unable to determine after exercising due diligence the locations where the related advertisements are either viewed by a user, or otherwise interacted with by a user, the department may authorize or require an alternative method that includes, but is not limited to, internet statistics and population.
(c) No apportionment under this subsection (7) is allowed unless the apportionment method is supported by the taxpayer's records kept in the ordinary course of business.
(d) For purposes of this subsection (7), the following definitions apply:
(i) "Concurrently available for use within and outside this state" means that the taxpayer, employees, or other agents of the taxpayer may use the digital goods, digital automated services, prewritten computer software, or services defined as a retail sale in *RCW 82.04.050(6)(b) simultaneously at one or more locations within this state and one or more locations outside this state. A digital code is concurrently available for use within and outside this state if employees or other agents of the taxpayer may use the digital goods or digital automated services to be obtained by the code simultaneously at one or more locations within this state and one or more locations outside this state; and
(ii)(A) Except as provided otherwise in (d)(ii)(B) of this subsection (7), for the purposes of this subsection (7), "user" means an employee or agent of the taxpayer who is authorized by the taxpayer to use the digital goods, digital automated services, prewritten computer software, or services defined as a retail sale in RCW 82.04.050(6)(b) in the performance of his or her duties as an employee or other agent of the taxpayer.
(B) With respect to advertising services, if an alternative method of apportionment is used as allowed or required under (b) of this subsection (7), "user" may also mean a person who views or otherwise interacts with the taxpayer's advertisement. For purposes of this subsection (7)(d)(ii), "advertising service" has the same meaning as provided in *RCW 82.04.050(3)(k).
(8)(a) Except as provided in (b) of this subsection (8), the provisions of this chapter do not apply to the use of audio or video programming provided by a radio or television broadcaster.
(b)(i) Except as provided in (b)(ii) of this subsection (8), the exemption provided in this subsection (8) does not apply in respect to programming that is sold on a pay-per-program basis or that allows the buyer to access a library of programs at any time for a specific charge for that service.
(ii) The exemption provided in this subsection (8) applies to the sale of programming described in (b)(i) of this subsection (8) if the seller is subject to a franchise fee in this state under the authority of Title 47 U.S.C. Sec. 542(a) on the gross revenue derived from the sale.
(c) For purposes of this subsection (8), "radio or television broadcaster" includes satellite radio providers, satellite television providers, cable television providers, providers of subscription internet television, and persons who provide radio or television broadcasting to listeners or viewers for no charge.
[ 2026 c 250 s 15; 2020 c 139 s 18; 2009 c 535 s 601.]
Notes:
*Reviser's note: RCW 82.04.050 was amended by 2026 c 238 s 1001 (effective January 1, 2029), 2026 c 238 s 1101, and 2026 c 250 s 2, changing subsection lettering.
Retroactive application—2026 c 250 ss 2-4, 8, 10, 12-18, and 22: See note following RCW 82.04.050.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.

catchline: Exemptions—Digital codes.


title: RCW 82.12.022

text:
(1) A use tax is levied on every person in this state for the privilege of using natural gas or manufactured gas, including compressed natural gas and liquefied natural gas, within this state as a consumer.
(2) The tax must be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rate in effect for the public utility tax on gas distribution businesses under RCW 82.16.020. The "value of the article used" does not include any amounts that are paid for the hire or use of a gas distribution business as defined in RCW 82.16.010(2) in transporting the gas subject to tax under this subsection if those amounts are subject to tax under that chapter.
(3) The tax levied in this section does not apply to the use of natural or manufactured gas delivered to the consumer by other means than through a pipeline.
(4) The tax levied in this section does not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under RCW 82.16.020 with respect to the gas for which exemption is sought under this subsection.
(5)(a) The tax levied in this section does not apply to the use of natural or manufactured gas by an aluminum smelter as that term is defined in RCW 82.04.217 before January 1, 2027.
(b) A person claiming the exemption provided in this subsection (5) must file a complete annual tax performance report with the department under RCW 82.32.534.
(6) The tax imposed by this section does not apply to the use of natural gas, compressed natural gas, or liquefied natural gas, if the consumer uses the gas for transportation fuel as defined in RCW 82.16.310.
(7) The tax levied in this section does not apply to the use of natural or manufactured gas by a silicon smelter as that term is defined in RCW 82.16.315.
(8) There is a credit against the tax levied under this section in an amount equal to any tax paid by:
(a) The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to RCW 82.16.020 by another state with respect to the gas for which a credit is sought under this subsection; or
(b) The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another state with respect to the gas for which a credit is sought under this subsection.
(9) The use tax imposed in this section must be paid by the consumer to the department.
(10) There is imposed a reporting requirement on the person who delivered the gas to the consumer to make a quarterly report to the department. Such report must contain the volume of gas delivered, name of the consumer to whom delivered, and such other information as the department may require by rule.
(11) The department may adopt rules under chapter 34.05 RCW for the administration and enforcement of sections 1 through 6, chapter 384, Laws of 1989.
[ 2017 3rd sp.s. c 37 s 707; (2017 3rd sp.s. c 37 s 706 expired January 1, 2018); 2017 c 135 s 27; 2015 3rd sp.s. c 6 s 506; 2014 c 216 s 304; 2011 c 174 s 304. Prior: 2010 1st sp.s. c 2 s 5; 2010 c 114 s 127; 2006 c 182 s 5; 2004 c 24 s 12; 1994 c 124 s 9; 1989 c 384 s 3.]
Notes:
Contingent expiration date—2017 3rd sp.s. c 37 ss 701-708: See note following RCW 82.32.537.
Findings—Intent—Tax preference performance statement—2017 3rd sp.s. c 37 ss 701-708: See note following RCW 82.16.315.
Effective date—2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803: See note following RCW 82.04.2404.
Effective date—2017 c 135: See note following RCW 82.32.534.
Effective dates—2015 3rd sp.s. c 6: See note following RCW 82.04.4266.
Findings—Tax preference performance statement—2015 3rd sp.s. c 6 ss 502-506: See note following RCW 82.04.2909.
Effective date—Findings—Tax preference performance statement—2014 c 216: See notes following RCW 82.38.030.
Application—Finding—Intent—2010 c 114: See notes following RCW 82.32.534.
Intent—Effective date—2004 c 24: See notes following RCW 82.04.2909.
Intent—1989 c 384: "Due to a change in the federal regulations governing the sale of brokered natural gas, cities have lost significant revenues from the utility tax on natural gas. It is therefore the intent of the legislature to adjust the utility and use tax authority of the state and cities to maintain this revenue source for the municipalities and provide equality of taxation between intrastate and interstate transactions." [ 1989 c 384 s 1.]
Effective date—1989 c 384: "This act shall take effect July 1, 1990." [ 1989 c 384 s 7.]
PDF
RCW 82.12.022
Natural or manufactured gas—Use tax imposed—Exemption. (Contingent effective date.)
(1) A use tax is levied on every person in this state for the privilege of using natural gas or manufactured gas, including compressed natural gas and liquefied natural gas, within this state as a consumer.
(2) The tax must be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rate in effect for the public utility tax on gas distribution businesses under RCW 82.16.020. The "value of the article used" does not include any amounts that are paid for the hire or use of a gas distribution business as defined in RCW 82.16.010(2) in transporting the gas subject to tax under this subsection if those amounts are subject to tax under that chapter.
(3) The tax levied in this section does not apply to the use of natural or manufactured gas delivered to the consumer by other means than through a pipeline.
(4) The tax levied in this section does not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under RCW 82.16.020 with respect to the gas for which exemption is sought under this subsection.
(5)(a) The tax levied in this section does not apply to the use of natural or manufactured gas by an aluminum smelter as that term is defined in RCW 82.04.217 before January 1, 2027.
(b) A person claiming the exemption provided in this subsection (5) must file a complete annual tax performance report with the department under RCW 82.32.534.
(6) The tax imposed by this section does not apply to the use of natural gas, compressed natural gas, or liquefied natural gas, if the consumer uses the gas for transportation fuel as defined in RCW 82.16.310.
(7) There is a credit against the tax levied under this section in an amount equal to any tax paid by:
(a) The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to RCW 82.16.020 by another state with respect to the gas for which a credit is sought under this subsection; or
(b) The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another state with respect to the gas for which a credit is sought under this subsection.
(8) The use tax imposed in this section must be paid by the consumer to the department.
(9) There is imposed a reporting requirement on the person who delivered the gas to the consumer to make a quarterly report to the department. Such report must contain the volume of gas delivered, name of the consumer to whom delivered, and such other information as the department may require by rule.
(10) The department may adopt rules under chapter 34.05 RCW for the administration and enforcement of sections 1 through 6, chapter 384, Laws of 1989.
[ 2017 c 135 s 27; 2015 3rd sp.s. c 6 s 506; 2014 c 216 s 304; 2011 c 174 s 304. Prior: 2010 1st sp.s. c 2 s 5; 2010 c 114 s 127; 2006 c 182 s 5; 2004 c 24 s 12; 1994 c 124 s 9; 1989 c 384 s 3.]
Notes:
Effective date—2017 c 135: See note following RCW 82.32.534.
Effective dates—2015 3rd sp.s. c 6: See note following RCW 82.04.4266.
Findings—Tax preference performance statement—2015 3rd sp.s. c 6 ss 502-506: See note following RCW 82.04.2909.
Effective date—Findings—Tax preference performance statement—2014 c 216: See notes following RCW 82.38.030.
Application—Finding—Intent—2010 c 114: See notes following RCW 82.32.534.
Intent—Effective date—2004 c 24: See notes following RCW 82.04.2909.
Intent—1989 c 384: "Due to a change in the federal regulations governing the sale of brokered natural gas, cities have lost significant revenues from the utility tax on natural gas. It is therefore the intent of the legislature to adjust the utility and use tax authority of the state and cities to maintain this revenue source for the municipalities and provide equality of taxation between intrastate and interstate transactions." [ 1989 c 384 s 1.]
Effective date—1989 c 384: "This act shall take effect July 1, 1990." [ 1989 c 384 s 7.]

catchline: Natural or manufactured gas—Use tax imposed—Exemption. (Contingent expiration date.)


title: RCW 82.12.023

text:
The tax levied by RCW 82.12.020 shall not apply in respect to the use of natural or manufactured gas that is taxable under RCW 82.12.022.
[ 1994 c 124 s 10; 1989 c 384 s 5.]
Notes:
Intent—Effective date—1989 c 384: See notes following RCW 82.12.022.

catchline: Natural or manufactured gas, exempt from use tax imposed by RCW 82.12.020.


title: RCW 82.12.024

text:
(1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
(a) "Direct service industrial customer" means a person who is an industrial customer that contracts for the purchase of power from the Bonneville Power Administration for direct consumption as of May 8, 2001. "Direct service industrial customer" includes a person who is a subsidiary that is more than fifty percent owned by a direct service industrial customer and who receives power from the Bonneville Power Administration pursuant to the parent's contract for power.
(b) "Facility" means a gas turbine electrical generation facility that does not exist on May 8, 2001, and is owned by a direct service industrial customer for the purpose of producing electricity to be consumed by the direct service industrial customer.
(c) "Average annual employment" means the total employment in this state for a calendar year at the direct service industrial customer's location where electricity from the facility will be consumed.
(2) Effective July 1, 2001, the tax levied in RCW 82.12.022 on the first sixty months' use of natural or manufactured gas by a direct service industrial customer that owns a facility shall be deferred. This deferral is limited to the tax on natural or manufactured gas used or consumed to generate electricity at the facility.
(3) Application for deferral shall be made by the direct service industrial customer before the first use of natural or manufactured gas. The application shall be in a form and manner prescribed by the department and shall include but is not limited to information regarding the location of the facility, the projected date of first use of natural or manufactured gas to generate electricity at the facility, the date construction is projected to begin or did begin, the applicant's average annual employment in the state for the six calendar years immediately preceding the year in which the application is made, and shall affirm the applicant's status as a direct service industrial customer. The department shall rule on the application within thirty days of receipt.
(4)(a) The direct service industrial customer shall begin paying the deferred tax in the sixth calendar year following the calendar year in which the month of first use of natural or manufactured gas to generate electricity at the facility occurs. The first payment will be due on or before December 31st with subsequent annual payments due on or before December 31st of the following four years according to the following schedule:
Payment Year
% of Deferred Tax to be Paid
1
10%
2
15%
3
20%
4
25%
5
30%
(b) The department may authorize an accelerated payment schedule upon request of the taxpayer.
(c) Interest shall not be charged on the tax deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed. The debt for deferred tax will not be extinguished by insolvency or other failure of the direct service industrial customer. Transfer of ownership of the facility does not affect deferral eligibility. However, the deferral is available to the successor only if the eligibility conditions of this section are met.
(5)(a) If the average of the direct service industrial customer's average annual employment for the five calendar years subsequent to the calendar year containing the first month of use of natural or manufactured gas to generate electricity at a facility is equal to or exceeds the six-year average annual employment stated on the application for deferral under this section, the tax deferred need not be paid. The direct service industrial customer shall certify to the department by June 1st of the sixth calendar year following the calendar year in which the month of first use of gas occurs the average annual employment for each of the five prior calendar years.
(b) If the five-year average calculated in (a) of this subsection is less than the average annual employment stated on the application for deferral under this section, the tax deferred under this section shall be paid in the amount as follows:
Decrease in Average Annual
Employment Over
Five-Year Period
% of Deferred
Tax to be Paid
Less than 10%
10%
10% or more but less than 25%
25%
25% or more but less than 50%
50%
50% or more but less than 75%
75%
75% or more
100%
(c) Tax paid under this subsection shall be paid according to the schedule in subsection (4)(a) of this section and under the terms and conditions of subsection (4)(b) and (c) of this section.
(6) The employment security department shall make, and certify to the department of revenue, all determinations of employment under this section as requested by the department.
(7) A person claiming this deferral shall supply to the department quarterly reports containing information necessary to document the total volume of natural or manufactured gas purchased in the quarter, the value of that total volume, and the percentage of the total volume used to generate electricity at the facility.
[ 2001 c 214 s 10.]
Notes:
Severability—Effective date—2001 c 214: See notes following RCW 80.50.010.
Findings—2001 c 214: See note following RCW 39.35.010.

catchline: Deferral of use tax on certain users of natural or manufactured gas.


title: RCW 82.12.0251

text:
The provisions of this chapter do not apply in respect to the use:
(1) Of any article of tangible personal property or any digital good or digital code, and any services that were rendered in respect to such property, brought into the state of Washington by a nonresident thereof for his or her use or enjoyment while temporarily within the state of Washington unless such property is used in conducting a nontransitory business activity within the state of Washington;
(2) By a nonresident of Washington of a motor vehicle or trailer which is registered or licensed under the laws of the state of his or her residence, and which is not required to be registered or licensed under the laws of Washington, including motor vehicles or trailers exempt pursuant to a declaration issued by the department of licensing under RCW 46.85.060, and services rendered outside the state of Washington in respect to such property;
(3) Of household goods, including digital goods, and digital codes, personal effects, private motor vehicles, and services rendered in respect to such property, by a bona fide resident of Washington, or nonresident members of the armed forces who are stationed in Washington pursuant to military orders, if such articles and services were acquired and used by such person in another state while a bona fide resident thereof and such acquisition and use occurred more than ninety days prior to the time he or she entered Washington. For purposes of this subsection, private motor vehicles do not include motor homes;
(4) Of an extended warranty, to the extent that the property covered by the extended warranty is exempt under this section from the tax imposed under this chapter.
For purposes of this section, "state" means a state of the United States, any political subdivision thereof, the District of Columbia, and any foreign country or political subdivision thereof, and "services" means services defined as retail sales in RCW 82.04.050(2) (a) or (g).
[ 2009 c 535 s 608; 2005 c 514 s 106; 2003 c 5 s 18; 1997 c 301 s 1; 1987 c 27 s 1; 1985 c 353 s 4; 1983 c 26 s 2; 1980 c 37 s 51. Formerly RCW 82.12.030(1).]
Notes:
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Effective date—2005 c 514: See note following RCW 83.100.230.
Part headings not law—Severability—2005 c 514: See notes following RCW 82.12.808.
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of tangible personal property by nonresident while temporarily within state—Use of household goods, personal effects, and private motor vehicles acquired in another state while resident of other state—Use of certain warranties.


title: RCW 82.12.02525

text:
The provisions of this chapter do not apply with respect to the use of public records sold by state and local agencies, as the terms are defined in RCW 42.56.010, including public records transferred electronically that are obtained under a request for the record for which no fee is charged other than a statutorily set fee or a fee to reimburse the agency for its actual costs directly incident to the copying. A request for a record includes a request for a document not available to the public but available to those persons who by law are allowed access to the document, such as requests for fire reports, law enforcement reports, taxpayer information, and academic transcripts.
[ 2011 c 60 s 50; 2009 c 535 s 609; 1996 c 63 s 2.]
Notes:
Effective date—2011 c 60: See note following RCW 29B.20.030.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Effective date—1996 c 63: See note following RCW 82.08.02525.

catchline: Exemptions—Sale of copied public records by state and local agencies.


title: RCW 82.12.0253

text:
The provisions of this chapter shall not apply in respect to the use of any article of tangible personal property the sale of which is specifically taxable under chapter 82.16 RCW.
[ 1980 c 37 s 53. Formerly RCW 82.12.030(3).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of tangible personal property taxable under chapter 82.16 RCW.


title: RCW 82.12.0254

text:
(1) The provisions of this chapter do not apply in respect to the use of:
(a) Any airplane used primarily in (i) conducting interstate or foreign commerce by transporting property or persons for hire or by performing services under a contract with the United States government or (ii) providing intrastate air transportation by a commuter air carrier as defined in RCW 82.08.0262;
(b) Any locomotive, railroad car, or watercraft used primarily in conducting interstate or foreign commerce by transporting property or persons for hire or used primarily in commercial deep sea fishing operations outside the territorial waters of the state;
(c) Tangible personal property that becomes a component part of any such airplane, locomotive, railroad car, or watercraft in the course of repairing, cleaning, altering, or improving the same; and
(d) Labor and services rendered in respect to such repairing, cleaning, altering, or improving.
(2) The provisions of this chapter do not apply in respect to the use by a nonresident of this state of any vehicle used exclusively in transporting persons or property across the boundaries of this state and in intrastate operations incidental thereto when such vehicle is registered in a foreign state and in respect to the use by a nonresident of this state of any vehicle so registered and used within this state for a period not exceeding fifteen consecutive days under such rules as the department must adopt. However, under circumstances determined to be justifiable by the department a second fifteen day period may be authorized consecutive with the first fifteen day period; and for the purposes of this exemption the term "nonresident" as used herein includes a user who has one or more places of business in this state as well as in one or more other states, but the exemption for nonresidents applies only to those vehicles which are most frequently dispatched, garaged, serviced, maintained, and operated from the user's place of business in another state.
(3) The provisions of this chapter do not apply in respect to the use by the holder of a carrier permit issued by the interstate commerce commission or its successor agency of any vehicle whether owned by or leased with or without driver to the permit holder and used in substantial part in the normal and ordinary course of the user's business for transporting therein persons or property for hire across the boundaries of this state; and in respect to the use of any vehicle while being operated under the authority of a trip permit issued by the director of licensing pursuant to RCW 46.16A.320 and moving upon the highways from the point of delivery in this state to a point outside this state; and in respect to the use of tangible personal property which becomes a component part of any vehicle used by the holder of a carrier permit issued by the interstate commerce commission or its successor agency authorizing transportation by motor vehicle across the boundaries of this state whether such vehicle is owned by or leased with or without driver to the permit holder, in the course of repairing, cleaning, altering, or improving the same; also the use of labor and services rendered in respect to such repairing, cleaning, altering, or improving.
[ 2015 c 86 s 306; 2010 c 161 s 905; 2009 c 503 s 2; 2003 c 5 s 3; 1998 c 311 s 7; 1995 c 63 s 2; 1980 c 37 s 54. Formerly RCW 82.12.030(4).]
Notes:
Effective date—Intent—Legislation to reconcile chapter 161, Laws of 2010 and other amendments made during the 2010 legislative session—2010 c 161: See notes following RCW 46.04.013.
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Effective date—1995 c 63: See note following RCW 82.08.0263.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of airplanes, locomotives, railroad cars, or watercraft used in interstate or foreign commerce or outside state's territorial waters—Components—Use of vehicles in the transportation of persons or property across state boundaries—Conditions—Use of vehicle under trip permit to point outside state.


title: RCW 82.12.0255

text:
The provisions of this chapter do not apply in respect to the use of any article of tangible personal property, extended warranty, digital good, digital code, digital automated service, or other service which the state is prohibited from taxing under the Constitution of the state or under the Constitution or laws of the United States.
[ 2009 c 535 s 610; 2005 c 514 s 107; 2003 c 5 s 4; 1980 c 37 s 55. Formerly RCW 82.12.030(5).]
Notes:
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Effective date—2005 c 514: See note following RCW 83.100.230.
Part headings not law—Severability—2005 c 514: See notes following RCW 82.12.808.
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Nontaxable tangible personal property, warranties, and digital products.


title: RCW 82.12.0256

text:
The provisions of this chapter do not apply in respect to the use of:
(1) Special fuel purchased in this state upon which a refund is obtained as provided in RCW 82.38.180(1)(b); and
(2) Motor vehicle and special fuel if:
(a) The fuel is used for the purpose of public transportation and the purchaser is entitled to a refund or an exemption under RCW 82.38.080(1) (f) and (g) or 82.38.180(3)(b); or
(b) The fuel is purchased by a private, nonprofit transportation provider certified under chapter 81.66 RCW and the purchaser is entitled to a refund or an exemption under RCW 82.38.080(1)(d) or 82.38.180(3)(a); or
(c) The fuel is purchased by a public transportation benefit area created under chapter 36.57A RCW or a county-owned ferry or county ferry district created under chapter 36.54 RCW for use in passenger-only ferry vessels; or
(d) The fuel is taxable under chapter 82.38 RCW. However, the use of motor vehicle and special fuel upon which a refund of the applicable fuel tax is obtained is not exempt under this subsection (2)(d) and the director of licensing must deduct from the amount of such tax to be refunded the amount of tax due under this chapter and remit the same each month to the department of revenue; or
(e) The fuel is purchased by a county-owned ferry for use in ferry vessels after June 30, 2013; or
(f) The fuel is purchased by the Washington state ferry system for use in a state-owned ferry after June 30, 2013.
[ 2013 c 225 s 646; 2011 1st sp.s. c 16 s 5; 2007 c 223 s 10; 2005 c 443 s 6; 1998 c 176 s 5. Prior: 1983 1st ex.s. c 35 s 3; 1983 c 108 s 2; 1980 c 147 s 2; 1980 c 37 s 56. Formerly RCW 82.12.030(6).]
Notes:
Effective date—2013 c 225: See note following RCW 82.38.010.
Effective date—2011 1st sp.s. c 16 ss 1-15: See note following RCW 47.60.530.
Effective date—2007 c 223: See note following RCW 36.57A.220.
Finding—Intent—Effective date—2005 c 443: See notes following RCW 82.08.0255.
Intent—1983 1st ex.s. c 35: See note following RCW 82.08.0255.
Intent—1980 c 37: See note following RCW 82.04.4281.
Diesel, biodiesel, and aircraft fuel sales tax exemption for farmers: RCW 82.12.865.

catchline: Exemptions—Use of motor vehicle and special fuel—Conditions.


title: RCW 82.12.02565

text:
(1) The provisions of this chapter do not apply in respect to the use by a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation, to the use by a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation, or to the use of labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.
(2) The definitions, conditions, and requirements in RCW 82.08.02565 apply to this section.
(3) This section does not apply to the use of (a) machinery and equipment used directly in the manufacturing, research and development, or testing of cannabis, useable cannabis, or cannabis-infused products, or (b) labor and services rendered in respect to installing, repairing, cleaning, altering, or improving such machinery and equipment.
(4) The exemptions in this section do not apply to an ineligible person as defined in RCW 82.08.02565.
[ 2022 c 16 s 156; 2015 3rd sp.s. c 5 s 302. Prior: 2014 c 216 s 402; 2014 c 140 s 14; 2003 c 5 s 5; 1999 c 211 s 6; 1998 c 330 s 2; 1996 c 247 s 3; 1995 1st sp.s. c 3 s 3.]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Construction—2017 c 323: See note following RCW 82.08.052.
Effective dates—2015 3rd sp.s. c 5: See note following RCW 82.08.052.
Application—Conflicting laws—2015 3rd sp.s. c 5: See notes following RCW 82.08.02565.
Effective date—Findings—Tax preference performance statement—2014 c 216: See notes following RCW 82.38.030.
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Finding—Intent—1999 c 211: See note following RCW 82.08.02565.
Findings—Intent—1996 c 247: See note following RCW 82.08.02566.
Findings—Effective date—1995 1st sp.s. c 3: See notes following RCW 82.08.02565.

catchline: Exemptions—Machinery and equipment used for manufacturing, research and development, or a testing operation.


title: RCW 82.12.025651

text:
(1) The provisions of this chapter do not apply in respect to the use by a public research institution of machinery and equipment used primarily in a research and development operation, or to the use of labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.
(2) The definitions in RCW 82.08.025651 apply to this section.
(3) A public research institution receiving the benefit of the exemption provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534.
[ 2017 c 135 s 28; 2011 c 23 s 5.]
Notes:
Effective date—2017 c 135: See note following RCW 82.32.534.
Findings—2011 c 23: See note following RCW 82.08.02565.
Effective date—Construction—2011 c 23: See notes following RCW 82.08.025651.

catchline: Exemptions—Use of machinery and equipment by public research institutions.


title: RCW 82.12.02566

text:
(1) The provisions of this chapter shall not apply with respect to the use of tangible personal property incorporated into a prototype for aircraft parts, auxiliary equipment, or modifications; or in respect to the use of tangible personal property that at one time is incorporated into the prototype but is later destroyed in the testing or development of the prototype.
(2) This exemption does not apply in respect to the use of tangible personal property by any person whose total taxable amount during the immediately preceding calendar year exceeds twenty million dollars. For purposes of this section, "total taxable amount" means gross income of the business and value of products manufactured, less any amounts for which a credit is allowed under RCW 82.04.440.
(3) State and local taxes for which an exemption is received under this section and RCW 82.08.02566 shall not exceed one hundred thousand dollars for any person during any calendar year.
(4) Sellers obligated to collect use tax shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department.
[ 2003 c 168 s 209; 1997 c 302 s 2; 1996 c 247 s 5.]
Notes:
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Effective date—1997 c 302: See note following RCW 82.08.02566.
Findings—Intent—1996 c 247: See note following RCW 82.08.02566.

catchline: Exemptions—Use of tangible personal property incorporated in prototype for aircraft parts, auxiliary equipment, and aircraft modification—Limitations on yearly exemption.


title: RCW 82.12.025661

text:
(1) The provisions of this chapter do not apply with respect to the use of:
(a) Tangible personal property that will be incorporated as an ingredient or component in constructing new buildings for: (i) An eligible maintenance repair operator; or (ii) a port district, political subdivision, or municipal corporation, to be leased to an eligible maintenance repair operator; or
(b) Labor and services rendered in respect to installing, during the course of constructing such buildings, building fixtures not otherwise eligible for the exemption under RCW 82.08.02565.
(2) The eligibility requirements, conditions, and definitions in RCW 82.08.025661 apply to this section, including the filing of a complete annual report with the department under RCW 82.32.534.
(3) This section expires January 1, 2031.
[ 2023 c 414 s 2; 2016 c 191 s 3.]
Notes:
Tax preference performance statement exemption—2023 c 414: See note following RCW 82.08.025661.
Tax preference performance statement—2016 c 191 ss 2 and 3: See note following RCW 82.08.025661.
Effective date—2016 c 191: See note following RCW 82.08.025661.

catchline: Exemptions—Aircraft maintenance repair—Building construction. (Expires January 1, 2031.)


title: RCW 82.12.02568

text:
The provisions of this chapter shall not apply in respect to the use of carbon, petroleum coke, coal tar, pitch, and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale.
[ 1996 c 170 s 2.]
Notes:
Effective date—1996 c 170: See note following RCW 82.08.02568.

catchline: Exemptions—Use of carbon and similar substances that become an ingredient or component of anodes or cathodes used in producing aluminum for sale.


title: RCW 82.12.02569

text:
The provisions of this chapter shall not apply in respect to the use of tangible personal property by a consumer as defined in RCW 82.04.190(6) if the tangible personal property is incorporated into, installed in, or attached to a building or other structure that is an integral part of a laser interferometer gravitational wave observatory on which construction is commenced before December 1, 1996.
[ 1996 c 113 s 2.]
Notes:
Effective date—1996 c 113: See note following RCW 82.08.02569.

catchline: Exemptions—Use of tangible personal property related to a building or structure that is an integral part of a laser interferometer gravitational wave observatory.


title: RCW 82.12.0257

text:
The provisions of this chapter do not apply in respect to the use of any article of personal property included within the transfer of the title to the entire operating property of a publicly or privately owned public utility, or of a complete operating integral section thereof, by the state or a political subdivision thereof in conducting any public service business as defined in RCW 82.16.010. For the purposes of this section, "operating property" includes digital goods and digital codes.
[ 2010 c 106 s 220; 2009 c 535 s 611; 1980 c 37 s 57. Formerly RCW 82.12.030(7).]
Notes:
Effective date—2010 c 106: See note following RCW 35.102.145.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of personal property of the operating property of a public utility by state or political subdivision.


title: RCW 82.12.0258

text:
The provisions of this chapter do not apply in respect to the use of personal property (including household goods) that has been used in conducting a farm activity, if such property was purchased from a farmer as defined in RCW 82.04.213 at an auction sale held or conducted by an auctioneer upon a farm and not otherwise. The exemption in this section does not apply to personal property used by the seller in the production of cannabis, useable cannabis, or cannabis-infused products.
[ 2022 c 16 s 157; 2014 c 140 s 16; 2009 c 535 s 612; 1980 c 37 s 58. Formerly RCW 82.12.030(8).]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of personal property previously used in farming and purchased from farmer at auction.


title: RCW 82.12.0259

text:
The provisions of this chapter do not apply in respect to the use of personal property or the use of digital automated services or services defined in *RCW 82.04.050 (2)(a) or (6)(c) by corporations that have been incorporated under any act of the congress of the United States and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, flood, and other national calamities and to devise and carry on measures for preventing the same.
[ 2017 c 323 s 523; 2009 c 535 s 613; 2003 c 5 s 7; 1980 c 37 s 59. Formerly RCW 82.12.030(9).]
Notes:
*Reviser's note: RCW 82.04.050 was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025. RCW 82.04.050 was subsequently amended by 2026 c 238 s 1001, changing subsection (6)(b) to subsection (6)(c), effective January 1, 2029.
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of personal property, digital automated services, or certain other services by federal corporations providing aid and relief.


title: RCW 82.12.02595

text:
(1) This chapter does not apply to the use by a nonprofit charitable organization or state or local governmental entity of personal property that has been donated to the nonprofit charitable organization or state or local governmental entity, or to the subsequent use of the property by a person to whom the property is donated or bailed in furtherance of the purpose for which the property was originally donated.
(2) This chapter does not apply to the donation of personal property without intervening use to a nonprofit charitable organization, or to the incorporation of tangible personal property without intervening use into real or personal property of or for a nonprofit charitable organization in the course of installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating the real or personal property for no charge.
(3) This chapter does not apply to the use by a nonprofit charitable organization of labor and services rendered in respect to installing, repairing, cleaning, altering, imprinting, or improving personal property provided to the charitable organization at no charge, or to the donation of such services.
[ 2015 c 169 s 7; 2009 c 535 s 615; 2004 c 155 s 1; 2003 c 5 s 11; 1998 c 182 s 1; 1995 c 201 s 1.]
Notes:
Effective date—2015 c 169: See note following RCW 82.04.050.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Effective date—2004 c 155: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 26, 2004]." [ 2004 c 155 s 2.]
Finding—Intent—Retroactive application—Effective date—2003 c 5: See notes following RCW 82.12.010.
Effective date—1995 c 201: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [May 1, 1995]." [ 1995 c 201 s 2.]

catchline: Exemptions—Personal property and certain services donated to nonprofit organization or governmental entity.


title: RCW 82.12.0261

text:
The provisions of this chapter shall not apply in respect to the use of livestock, as defined in RCW 16.36.005, for breeding purposes where said animals are registered in a nationally recognized breed association; or to sales of cattle and milk cows used on the farm.
[ 2001 c 118 s 5; 1980 c 37 s 60. Formerly RCW 82.12.030(10).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of livestock.


title: RCW 82.12.0262

text:
The provisions of this chapter shall not apply in respect to the use of poultry in the production for sale of poultry or poultry products.
[ 1980 c 37 s 61. Formerly RCW 82.12.030(11).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of poultry for producing poultry and poultry products for sale.


title: RCW 82.12.0263

text:
The provisions of this chapter do not apply in respect to the use of biomass fuel by the extractor or manufacturer thereof when used directly in the operation of the particular extractive operation or manufacturing plant which produced or manufactured the same. For purposes of this section, "biomass fuel" means wood waste and other wood residuals, including forest derived biomass, but does not include firewood or wood pellets. "Biomass fuel" also includes partially organic by-products of pulp, paper, and wood manufacturing processes.
[ 2017 3rd sp.s. c 28 s 107; 1980 c 37 s 62. Formerly RCW 82.12.030(12).]
Notes:
Application—2017 3rd sp.s. c 28 ss 107-109: "Sections 107 through 109 of this act apply with respect to fuel, other than biomass fuel, consumed within this state on or after *August 1, 2017, regardless of whether such fuel was produced or manufactured before *August 1, 2017. For purposes of this section, "consumed" means the use of fuel resulting in the release of usable energy." [ 2017 3rd sp.s. c 28 s 109.]
*Reviser's note: 2017 3rd sp.s. c 28 s 605 was amended by 2018 c 92 s 2, changing the effective date of sections 107 through 109, chapter 28, Laws of 2017 3rd sp. sess. from August 1, 2017, to January 1, 2018.
Existing rights and liability—Severability—Application—Effective dates—2017 3rd sp.s. c 28: See notes following RCW 82.08.0531.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of fuel by extractor or manufacturer thereof.


title: RCW 82.12.0264

text:
The provisions of this chapter shall not apply in respect to the use of motor vehicles, equipped with dual controls, which are loaned to and used exclusively by a school in connection with its driver training program: PROVIDED, That this exemption and the term "school" shall apply only to (1) the University of Washington, Washington State University, the regional universities, The Evergreen State College and the state community colleges or (2) any public, private or parochial school accredited by either the state board of education or by the University of Washington (the state accrediting station) or (3) any public vocational school meeting the standards, courses and requirements established and prescribed or approved in accordance with the Community College Act of 1967 (chapter 8, Laws of 1967 first extraordinary session).
[ 1980 c 37 s 63. Formerly RCW 82.12.030(13).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use of dual-controlled motor vehicles by school for driver training.


title: RCW 82.12.0265

text:
The provisions of this chapter shall not apply in respect to the use by a bailee of any article of tangible personal property which is entirely consumed in the course of research, development, experimental and testing activities conducted by the user, provided the acquisition or use of such articles by the bailor was not subject to the taxes imposed by chapter 82.08 RCW or chapter 82.12 RCW.
[ 1980 c 37 s 64. Formerly RCW 82.12.030(14).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Use by bailee of tangible personal property consumed in research, development, etc., activities.