title: RCW 82.08.0256

text:
The tax levied by RCW 82.08.020 does not apply to sales (including transfers of title through decree of appropriation) heretofore or hereafter made of the entire operating property of a publicly or privately owned public utility, or of a complete operating integral section thereof, to the state or a political subdivision thereof for use in conducting any public service business as defined in RCW 82.16.010. For purposes of this section, "operating property" includes digital goods and products sold through the use of digital codes.
[ 2026 c 250 s 12; 2010 c 106 s 213; 2009 c 535 s 509; 1980 c 37 s 24. Formerly RCW 82.08.030(6).]
Notes:
Retroactive application—2026 c 250 ss 2-4, 8, 10, 12-18, and 22: See note following RCW 82.04.050.
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—Sale of the operating property of a public utility to the state or a political subdivision.


doc_type: statute

jurisdiction: wa

title: RCW 82.08.02565

text:
(1)(a) The tax levied by RCW 82.08.020 does not apply to sales to a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation, to sales to a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.
(b) Except as provided in (c) of this subsection, 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 by rule. The seller must retain a copy of the certificate for the seller's files.
(c)(i) The exemption under this section is in the form of a remittance for a gas distribution business, as defined in RCW 82.16.010, claiming the exemption for machinery and equipment used for the production of compressed natural gas or liquefied natural gas for use as a transportation fuel.
(ii) A gas distribution business claiming an exemption from state and local tax in the form of a remittance under this section must pay the tax under RCW 82.08.020 and all applicable local sales taxes. Beginning July 1, 2017, the gas distribution business may then apply to the department for remittance of state and local sales and use taxes. A gas distribution business may not apply for a remittance more frequently than once a quarter. The gas distribution business must specify the amount of exempted tax claimed and the qualifying purchases for which the exemption is claimed. The gas distribution business must retain, in adequate detail, records to enable the department to determine whether the business is entitled to an exemption under this section, including: Invoices; proof of tax paid; and documents describing the machinery and equipment.
(iii) The department must determine eligibility under this section based on the information provided by the gas distribution business, which is subject to audit verification by the department. The department must on a quarterly basis remit exempted amounts to qualifying businesses who submitted applications during the previous quarter.
(iv) Beginning July 1, 2028, a gas distribution business may not apply for a refund under this section or RCW 82.12.02565.
(2) For purposes of this section and RCW 82.12.02565:
(a) "Machinery and equipment" means industrial fixtures, devices, and support facilities, and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts. "Machinery and equipment" includes pollution control equipment installed and used in a manufacturing operation, testing operation, or research and development operation to prevent air pollution, water pollution, or contamination that might otherwise result from the manufacturing operation, testing operation, or research and development operation. "Machinery and equipment" also includes digital goods.
(b) "Machinery and equipment" does not include:
(i) Hand-powered tools;
(ii) Property with a useful life of less than one year;
(iii) Buildings, other than machinery and equipment that is permanently affixed to or becomes a physical part of a building; and
(iv) Building fixtures that are not integral to the manufacturing operation, testing operation, or research and development operation that are permanently affixed to and become a physical part of a building, such as utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical.
(c) Machinery and equipment is "used directly" in a manufacturing operation, testing operation, or research and development operation if the machinery and equipment:
(i) Acts upon or interacts with an item of tangible personal property;
(ii) Conveys, transports, handles, or temporarily stores an item of tangible personal property at the manufacturing site or testing site;
(iii) Controls, guides, measures, verifies, aligns, regulates, or tests tangible personal property at the site or away from the site;
(iv) Provides physical support for or access to tangible personal property;
(v) Produces power for, or lubricates machinery and equipment;
(vi) Produces another item of tangible personal property for use in the manufacturing operation, testing operation, or research and development operation;
(vii) Places tangible personal property in the container, package, or wrapping in which the tangible personal property is normally sold or transported; or
(viii) Is integral to research and development as defined in RCW 82.63.010.
(d) "Manufacturer" means a person that qualifies as a manufacturer under RCW 82.04.110. "Manufacturer" also includes a person that:
(i) Prints newspapers or other materials; or
(ii) Is engaged in the development of prewritten computer software that is not transferred to purchasers by means of tangible storage media.
(e) "Manufacturing" means only those activities that come within the definition of "to manufacture" in RCW 82.04.120 and are taxed as manufacturing or processing for hire under chapter 82.04 RCW, or would be taxed as such if such activity were conducted in this state or if not for an exemption or deduction. "Manufacturing" also includes printing newspapers or other materials. An activity is not taxed as manufacturing or processing for hire under chapter 82.04 RCW if the activity is within the purview of chapter 82.16 RCW.
(f) "Manufacturing operation" means the manufacturing of articles, substances, or commodities for sale as tangible personal property. A manufacturing operation begins at the point where the raw materials enter the manufacturing site and ends at the point where the processed material leaves the manufacturing site. With respect to the production of class A or exceptional quality biosolids by a wastewater treatment facility, the manufacturing operation begins at the point where class B biosolids undergo additional processing to achieve class A or exceptional quality standards. Notwithstanding anything to the contrary in this section, the term also includes that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part. The term does not include the preparation of food products on the premises of a person selling food products at retail.
(g) "Cogeneration" means the simultaneous generation of electrical energy and low-grade heat from the same fuel.
(h) "Research and development operation" means engaging in research and development as defined in RCW 82.63.010 by a manufacturer or processor for hire.
(i) "Testing" means activities performed to establish or determine the properties, qualities, and limitations of tangible personal property.
(j) "Testing operation" means the testing of tangible personal property for a manufacturer or processor for hire. A testing operation begins at the point where the tangible personal property enters the testing site and ends at the point where the tangible personal property leaves the testing site. The term also includes the testing of tangible personal property for use in that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part. The term does not include the testing of tangible personal property for use in the production of electricity by a light and power business as defined in RCW 82.16.010 or the preparation of food products on the premises of a person selling food products at retail.
(3) This section does not apply (a) to sales of machinery and equipment used directly in the manufacturing, research and development, or testing of cannabis, useable cannabis, or cannabis-infused products, or (b) to sales of or charges made for 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. For purposes of this subsection, the following definitions apply:
(a) "Affiliated group" means a group of two or more entities that are either:
(i) Affiliated as defined in RCW 82.32.655; or
(ii) Permitted to file a consolidated return for federal income tax purposes.
(b) "Ineligible person" means all members of an affiliated group if all of the following apply:
(i) At least one member of the affiliated group was registered with the department to do business in Washington state on or before July 1, 1981;
(ii) As of August 1, 2015, the combined employment in this state of the affiliated group exceeds forty thousand full-time and part-time employees, based on data reported to the employment security department by the affiliated group; and
(iii) The business activities of the affiliated group primarily include development, sales, and licensing of computer software and services.
[ 2022 c 16 s 146; 2015 3rd sp.s. c 5 s 301. Prior: 2014 c 216 s 401; 2014 c 140 s 13; 2011 c 23 s 2; 2009 c 535 s 510; 1999 c 211 s 5; 1999 c 211 s 3; 1998 c 330 s 1; prior: 1996 c 247 s 2; 1996 c 173 s 3; 1995 1st sp.s. c 3 s 2.]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Construction—2017 c 323: See note following RCW 82.08.052.
Application—2015 3rd sp.s. c 5: "Sections 301 and 302 of this act do not apply with respect to machinery and equipment, as defined in RCW 82.08.02565, first used by the taxpayer in this state before August 1, 2015." [ 2015 3rd sp.s. c 5 s 306.]
Conflicting laws—2015 3rd sp.s. c 5: "If RCW 82.08.02565, 82.12.02565, or 82.63.010 are amended by any other act enacted during the regular or any special session of the 2015 legislature, each amendment without reference to the other amendment or amendments of the same statute, the legislature intends for the amendments in this act to be deemed to not conflict in purpose with the amendments in any other such act for the purposes of RCW 1.12.025 and that the amendments in this act be given effect." [ 2015 3rd sp.s. c 5 s 305.]
Effective dates—2015 3rd sp.s. c 5: See note following RCW 82.08.052.
Effective date—Findings—Tax preference performance statement—2014 c 216: See notes following RCW 82.38.030.
Findings—2011 c 23: "(1) In 1995, the legislature enacted a sales and use tax exemption for manufacturing machinery and equipment, commonly referred to as the "M&E exemption." The legislature finds that the purposes of this exemption were to encourage the growth and development of the state's private sector manufacturing industry and improve this state's ability to compete with other states for manufacturing investment. The legislature further finds that it was not the purpose of the M&E exemption to provide tax breaks to state agencies and institutions, nor to public utilities and other businesses with respect to machinery and equipment primarily used for activities that are taxable under the state public utility tax or are otherwise not considered to be manufacturing for business and occupation tax purposes.
(2) The legislature further finds that despite previous attempts at clarifying the M&E exemption, significant ambiguity persists, particularly with respect to the scope of the exemption. Such ambiguity results in costly appeals and litigation and may result in significant unanticipated revenue losses for the state and local governments.
(3) Therefore, the legislature finds it necessary to reaffirm its original intent in establishing the M&E exemption. The legislature declares that the amendments to the existing M&E exemption and to RCW 82.04.120 in this act are clarifying and, as such, apply retroactively as well as prospectively.
(4) The legislature finds that Washington is home to premier public research institutions. The legislature recognizes that the state's public universities provide cutting-edge research and development, which helps stimulate growth in the private sector and is vital to the economic well-being of our state. University research leads directly to new products, companies, production methods, and ways of organizing work. The legislature further recognizes that our public universities will play an important role in shaping the next generation of Washington industries, including biofuels and other renewable energy, global health, and advanced manufacturing. Therefore, because the amendments to the existing M&E exemption in this act clarify that state agencies and institutions are not eligible for the M&E exemption, this act provides a new, stand-alone sales and use tax exemption for machinery and equipment used primarily in technological research and development operations by the state's four-year institutions of higher education." [ 2011 c 23 s 1.]
Intent—2011 c 23: "The legislature declares that the only reason why the phrase "the production of electricity by a light and power business as defined in RCW 82.16.010" was deleted from the definition of "manufacturing operation" in RCW 82.08.02565(2)(f) in section 2 of this act is because that language is superfluous." [ 2011 c 23 s 7.]
Application—2011 c 23: "Sections 2 and 3 of this act apply both prospectively and retroactively to any tax period open for assessment or refund of taxes." [ 2011 c 23 s 9.]
Effective date—Construction—2011 c 23: See notes following RCW 82.08.025651.
Intent—Construction—2009 c 535: See notes following RCW 82.04.192.
Finding—Intent—1999 c 211: "The legislature finds that the application of the manufacturer's machinery and equipment sales and use tax exemption has, in some instances, been difficult and confusing for taxpayers, and included difficult reporting and recordkeeping requirements. In this act, it is the intent of the legislature to make clear its intent for the application of the exemption, and to extend the exemption to the purchase and use of machinery and equipment for businesses that perform testing of manufactured goods for manufacturers or processors for hire." [ 1999 c 211 s 1.]
Intent—1999 c 211 ss 2 and 3: See note following RCW 82.04.120.
Effective date—1999 c 211 ss 1-4: See note following RCW 82.04.120.
Findings—Intent—1996 c 247: See note following RCW 82.08.02566.
Findings—Intent—1996 c 173: "The legislature finds that the health, safety, and welfare of the people of the state of Washington are heavily dependent upon the continued encouragement, development, and expansion of opportunities for family wage employment in the state's manufacturing industries.
The legislature also finds that sales and use tax exemptions for manufacturing machinery and equipment enacted by the 1995 legislature have improved Washington's ability to compete with other states for manufacturing investment, but that additional incentives for manufacturers need to be adopted to solidify and enhance the state's competitive position.
The legislature intends to accomplish this by extending the current manufacturing machinery and equipment exemptions to allow a sales tax exemption for labor and service charges for repairing, cleaning, altering, or improving machinery and equipment, and a sales and use tax exemption for repair and replacement parts with a useful life of one year or more." [ 1996 c 173 s 1.]
Findings—1995 1st sp.s. c 3: "The legislature finds and declares that:
(1) The health, safety, and welfare of the people of the state of Washington are heavily dependent upon the continued encouragement, development, and expansion of opportunities for family wage employment in our state's private sector;
(2) The state's private sector must be encouraged to commit to continuous improvement of process, products, and services and to deliver high quality, high value products through technological innovations and high-performance work organizations;
(3) The state's opportunities for increased economic dealings with other states and nations of the world are dependent on supporting and attracting a diverse, stable, and competitive economic base of private sector employers;
(4) The state's current policy of applying its sales and use taxes to machinery, equipment, and installation labor used in manufacturing, research and development, and other activities has placed our state's private sector at a competitive disadvantage with other states and serves as a significant disincentive to the continuous improvement of products, technology, and modernization necessary for the preservation, stabilization, and expansion of employment and to ensure a stable economy; and
(5) It is vital to the continued development of economic opportunity in this state, including the development of new businesses and the expansion or modernization of existing businesses, that the state of Washington provide tax incentives to entities making a commitment to sites and operations in this state." [ 1995 1st sp.s. c 3 s 1.]
Effective date—1995 1st sp.s. c 3: "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 July 1, 1995." [ 1995 1st sp.s. c 3 s 16.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Exemptions—Sales of machinery and equipment for manufacturing, research and development, or a testing operation—Labor and services for installation—Exemption certificate—Rules.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 82.08.025651

text:
(1)(a) The tax levied by RCW 82.08.020 does not apply to sales to a public research institution of machinery and equipment used primarily in a research and development operation, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.
(b) 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.
(2) A public research institution claiming the exemption provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534.
(3) For purposes of this section, the following definitions apply:
(a) "Machinery and equipment" means those fixtures, pieces of equipment, digital goods, and support facilities that are an integral and necessary part of a research and development operation, and tangible personal property that becomes an ingredient or component of such fixtures, equipment, and support facilities, including repair parts and replacement parts. "Machinery and equipment" may include, but is not limited to: Computers; software; data processing equipment; laboratory equipment, instrumentation, and other devices used in a process of experimentation to develop a new or improved pilot model, plant process, product, formula, or invention; vats, tanks, and fermenters; operating structures; and all equipment used to control, monitor, or operate the machinery and equipment.
(b) "Machinery and equipment" does not include:
(i) Hand-powered tools;
(ii) Property with a useful life of less than one year;
(iii) Buildings; and
(iv) Those building fixtures that are not an integral and necessary part of a research and development operation and that are permanently affixed to and become a physical part of a building, such as utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical.
(c) "Primarily" means greater than fifty percent as measured by time. If machinery and equipment is used simultaneously in a research and development operation and also for other purposes, the use for other purposes must be disregarded during the period of simultaneous use for purposes of determining whether the machinery and equipment is used primarily in a research and development operation.
(d) "Public research institution" means any college or university included within the definitions of state universities, regional universities, or state college in RCW 28B.10.016.
(e) "Research and development operation" means engaging in research and development as defined in RCW 82.63.010.
[ 2020 c 139 s 12; 2011 c 23 s 4.]
Notes:
Effective date—2011 c 23: "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 [April 11, 2011]." [ 2011 c 23 s 8.]
Construction—2011 c 23: "Nothing in this act may be construed as a repudiation of any provision of WAC 458-20-13601." [ 2011 c 23 s 11.]
Findings—2011 c 23: See note following RCW 82.08.02565.

catchline: Exemptions—Sales of machinery and equipment to public research institutions.


title: RCW 82.08.02566

text:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of tangible personal property incorporated into a prototype for aircraft parts, auxiliary equipment, or modifications; or to sales 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 to sales to 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 82.12.02566 shall not exceed one hundred thousand dollars for any person during any calendar year.
(4) Sellers shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department.
[ 2003 c 168 s 208; 1997 c 302 s 1; 1996 c 247 s 4.]
Notes:
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Effective date—1997 c 302: "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, 1997." [ 1997 c 302 s 3.]
Findings—Intent—1996 c 247: "The legislature finds that the health, safety, and welfare of the people of the state of Washington are heavily dependent upon the continued encouragement, development, and expansion of opportunities for family wage employment in the state's manufacturing industries.
The legislature also finds that sales and use tax exemptions for manufacturing machinery and equipment enacted by the 1995 legislature have improved Washington's ability to compete with other states for manufacturing investment, but that additional incentives for manufacturers need to be adopted to solidify and enhance the state's competitive position.
The legislature intends to accomplish this by extending the current manufacturing machinery and equipment exemptions to include machinery and equipment used for research and development with potential manufacturing applications." [ 1996 c 247 s 1.]

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


title: RCW 82.08.025661

text:
(1) Subject to the requirements of this section, the tax levied by RCW 82.08.020 does not apply to:
(a) Charges for labor and services rendered in respect to the constructing of new buildings, made to: (i) An eligible maintenance repair operator engaged in the maintenance of airplanes; or (ii) a port district, political subdivision, or municipal corporation, if the new building is to be leased to an eligible maintenance repair operator engaged in the maintenance of airplanes;
(b) Sales of tangible personal property that will be incorporated as an ingredient or component of such buildings during the course of the constructing; or
(c) Charges made for 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)(a) The exemption in this section is in the form of a remittance. A buyer claiming an exemption from the tax in the form of a remittance under this section must pay all applicable state and local sales taxes imposed under RCW 82.08.020 and chapter 82.14 RCW on all purchases qualifying for the exemption.
(b) The department must determine eligibility under this section based on information provided by the buyer and through audit and other administrative records. The buyer may on a quarterly basis submit an application, in a form and manner as required by the department by rule, specifying the amount of exempted tax claimed and the qualifying purchases or acquisitions for which the exemption is claimed. The buyer must retain, in adequate detail to enable the department to determine whether the equipment or construction meets the criteria under this section: Invoices; proof of tax paid; documents describing the location and size of new structures; and construction invoices and documents.
(c) The department must on a quarterly basis remit exempted amounts to qualifying persons who submitted applications during the previous quarter.
(d) A person may request a remittance for state sales and use taxes after the aircraft maintenance and repair station has been operationally complete for four years, but not sooner than December 1, 2021. However, the department may not remit the state portion of sales and use taxes if the person did not report at least 100 average employment positions with an average annualized wage of $80,000 to the employment security department for a period of four consecutive calendar quarters, beginning with the first calendar quarter after the date the facility is issued an occupancy permit by the local permit issuing authority. A person must provide the department with the unemployment insurance number provided to the employment security department for the establishment.
(e) A person may request a remittance for local sales and use taxes on or after July 1, 2016.
(3) In order to qualify under this section before starting construction, the port district, political subdivision, or municipal corporation must have entered into an agreement with an eligible maintenance repair operator to build such a facility. A person claiming the exemption under this section is subject to all the requirements of chapter 82.32 RCW. In addition, the person must file a complete annual report with the department under RCW 82.32.534.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Eligible maintenance repair operator" means a person classified by the federal aviation administration as a federal aviation regulation part 145 certificated repair station and located in a commercial services airport owned by a county with a population less than 1,000,000 or a commercial services airport jointly owned by a city and county.
(b) "Operationally complete" means constructed to the point of being functionally capable of hosting the repair and maintenance of airplanes.
(5) This section expires January 1, 2031.
[ 2023 c 414 s 1; 2022 c 56 s 5; 2016 c 191 s 2.]
Notes:
Tax preference performance statement exemption—2023 c 414: "RCW 82.32.808 does not apply to this act." [ 2023 c 414 s 3.]
Tax preference performance statement—2016 c 191 ss 2 and 3: "(1) This section is the tax preference performance statement for the tax preferences contained in sections 2 and 3 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes the tax preference in sections 2 and 3 of this act as one intended to create jobs, as indicated in RCW 82.32.808(2)(c).
(3) At the end of the third year after an aircraft maintenance and repair station is operationally complete, the joint legislative audit and review committee must evaluate, at a minimum:
(a) Whether a taxpayer claiming this tax preference is on target to reach the employment levels and average annualized wages under section 2 of this act by the end of the aircraft maintenance and repair station's fourth year of operation; and
(b) Whether the average annualized wages for employees are on a par with industry standards for the sector.
(4) In order to obtain the data necessary to perform the review, the joint legislative audit and review committee may refer to the annual report and annual survey for tax preferences that federal aviation administration part 145 repair stations are required to file with the department [of revenue] and to employment data available from the employment security department." [ 2016 c 191 s 1.]
Effective date—2016 c 191: "This act takes effect July 1, 2016." [ 2016 c 191 s 6.]

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


title: RCW 82.08.02568

text:
The tax levied by RCW 82.08.020 shall not apply to sales 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 1.]
Notes:
Effective date—1996 c 170: "This act shall take effect July 1, 1996." [ 1996 c 170 s 3.]

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


title: RCW 82.08.02569

text:
The tax levied by RCW 82.08.020 shall not apply to sales of tangible personal property to 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 1.]
Notes:
Effective date—1996 c 113: "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 [March 20, 1996]." [ 1996 c 113 s 3.]

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


title: RCW 82.08.0257

text:
The tax levied by RCW 82.08.020 does not apply to auction sales made by or through auctioneers of personal property (including household goods) that has been used in conducting a farm activity, when the seller thereof is a farmer as defined in RCW 82.04.213 and the sale is held or conducted 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 147; 2014 c 140 s 15; 2009 c 535 s 511; 1980 c 37 s 25. Formerly RCW 82.08.030(7).]
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—Auction sales of personal property used in farming.


title: RCW 82.08.02573

text:
The tax levied by RCW 82.08.020 does not apply to a sale made by a nonprofit organization or a library, if the gross income from the sale is exempt under RCW 82.04.3651.
[ 2010 c 106 s 214; 1998 c 336 s 3.]
Notes:
Effective date—2010 c 106: See note following RCW 35.102.145.
Findings—1998 c 336: See note following RCW 82.04.3651.

catchline: Exemptions—Sales by a nonprofit organization for fund-raising activities.


title: RCW 82.08.0258

text:
The tax levied by RCW 82.08.020 shall not apply to sales to corporations which 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 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, floods, and other national calamities and to devise and carry on measures for preventing the same.
[ 1980 c 37 s 26. Formerly RCW 82.08.030(8).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales to federal corporations providing aid and relief.


title: RCW 82.08.0259

text:
The tax levied by RCW 82.08.020 shall not apply to sales of livestock, as defined in RCW 16.36.005, for breeding purposes where the 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 4; 1980 c 37 s 27. Formerly RCW 82.08.030(9).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of livestock.


title: RCW 82.08.026

text:
The tax levied by RCW 82.08.020 shall not apply to sales of natural or manufactured gas that is taxable under RCW 82.12.022.
[ 1994 c 124 s 8; 1989 c 384 s 4.]
Notes:
Intent—Effective date—1989 c 384: See notes following RCW 82.12.022.

catchline: Exemptions—Sales of natural or manufactured gas.


title: RCW 82.08.0261

text:
(1) Except as otherwise provided in this section, the tax levied by RCW 82.08.020 does not apply to sales of tangible personal property (other than the type referred to in RCW 82.08.0262) for use by the purchaser in connection with the business of operating as a private or common carrier by air, rail, or water in interstate or foreign commerce. However, any actual use of such property in this state is, at the time of such actual use, subject to the tax imposed by chapter 82.12 RCW.
(2)(a) With respect to the sale of liquefied natural gas to a business operating as a private or common carrier by water in interstate or foreign commerce, the buyer is entitled to a partial exemption from the tax levied by RCW 82.08.020 and the associated local sales taxes. The exemption under this subsection (2) is for the state and local retail sales taxes on ninety percent of the amount of the liquefied natural gas transported and consumed outside this state by the buyer.
(b) Sellers are relieved of the obligation to collect the state and local retail sales taxes on sales eligible for the partial exemption provided in this subsection (2) to buyers who are registered with the department if the seller:
(i) Obtains a completed exemption certificate from the buyer, which must include the buyer's tax registration number with the department; or
(ii) Captures the relevant data elements as allowed under the streamlined sales and use tax agreement, including the buyer's tax registration number with the department.
(c) Buyers entitled to a partial exemption under this subsection (2) must either:
(i) Pay the full amount of state and local retail sales tax to the seller on the sale, including the amount of tax qualifying for exemption under this subsection (2), and then request a refund of the exempted portion of the tax from the department within the time allowed for making refunds under RCW 82.32.060; or
(ii) If the seller did not collect the retail sales tax from the buyer, remit to the department the state and local retail sales taxes due on all liquefied natural gas consumed in this state and on ten percent of the liquefied natural gas that is transported and consumed outside of this state.
(3) This section does not apply to the sale of liquefied natural gas on or after July 1, 2028, for use as fuel in any marine vessel.
[ 2014 c 216 s 405; 1980 c 37 s 28. Formerly RCW 82.08.030(10).]
Notes:
Effective date—Findings—Tax preference performance statement—2014 c 216: See notes following RCW 82.38.030.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of personal property for use connected with private or common carriers in interstate or foreign commerce.


title: RCW 82.08.0262

text:
(1) The tax levied by RCW 82.08.020 does not apply to:
(a) Sales of airplanes (i) to the United States government; (ii) for use in 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 (iii) for use in providing intrastate air transportation by a commuter air carrier;
(b) Sales of locomotives, railroad cars, or watercraft for use in conducting interstate or foreign commerce by transporting property or persons for hire or for use in conducting commercial deep sea fishing operations outside the territorial waters of the state;
(c) Sales of tangible personal property that becomes a component part of such airplanes, locomotives, railroad cars, or watercraft, and of motor vehicles or trailers whether owned by or leased with or without drivers and 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, in the course of constructing, repairing, cleaning, altering, or improving the same; and
(d) Sales of or charges made for labor and services rendered in respect to such constructing, repairing, cleaning, altering, or improving.
(2) The term "commuter air carrier" means an air carrier holding authority under Title 14, Part 298 of the Code of Federal Regulations that carries passengers on at least five round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week, and places between which those flights are performed.
[ 2015 c 86 s 305; 2009 c 503 s 1; 1998 c 311 s 5; 1994 c 43 s 1; 1980 c 37 s 29. Formerly RCW 82.08.030(11).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of airplanes, locomotives, railroad cars, or watercraft for use in interstate or foreign commerce or outside the territorial waters of the state or airplanes sold to United States government—Components thereof and of motor vehicles or trailers used for constructing, repairing, cleaning, etc.—Labor and services for constructing, repairing, cleaning, etc.


title: RCW 82.08.0263

text:
The tax levied by RCW 82.08.020 shall not apply to sales of motor vehicles and trailers to be used for the purpose of transporting therein persons or property for hire in interstate or foreign commerce whether such use is by the owner or whether such motor vehicles and trailers are leased to the user with or without drivers: PROVIDED, That the purchaser or user must be the holder of a carrier permit issued by the Interstate Commerce Commission or its successor agency.
[ 1998 c 311 s 6; 1995 c 63 s 1; 1980 c 37 s 30. Formerly RCW 82.08.030(12).]
Notes:
Effective date—1995 c 63: "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 July 1, 1995." [ 1995 c 63 s 3.]
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of motor vehicles and trailers for use in transporting persons or property in interstate or foreign commerce.


title: RCW 82.08.0264

text:
(1) The tax levied by RCW 82.08.020 does not apply to sales of motor vehicles, trailers, or campers to nonresidents of this state for use outside of this state, even when delivery is made within this state, but only if:
(a) The motor vehicles, trailers, or campers will be taken from the point of delivery in this state directly to a point outside this state under the authority of a vehicle trip permit issued by the department of licensing pursuant to RCW 46.16A.320, or any agency of another state that has authority to issue similar permits; or
(b) The motor vehicles, trailers, or campers will be registered and licensed immediately under the laws of the state of the buyer's residence, will not be used in this state more than three months, and will not be required to be registered and licensed under the laws of this state.
(2) For the purposes of this section, the seller of a motor vehicle, trailer, or camper is not required to collect and shall not be found liable for the tax levied by RCW 82.08.020 on the sale if the tax is not collected and the seller retains the following documents, which must be made available upon request of the department:
(a) A copy of the buyer's currently valid out-of-state driver's license or other official picture identification issued by a jurisdiction other than Washington state;
(b) A copy of any one of the following documents, on which there is an out-of-state address for the buyer:
(i) A current residential rental agreement;
(ii) A property tax statement from the current or previous year;
(iii) A utility bill, dated within the previous two months;
(iv) A state income tax return from the previous year;
(v) A voter registration card;
(vi) A current credit report; or
(vii) Any other document determined by the department to be acceptable;
(c) A witnessed declaration in the form designated by the department, signed by the buyer, and stating that the buyer's purchase meets the requirements of this section; and
(d) A seller's certification, in the form designated by the department, that either a vehicle trip permit was issued or the vehicle was immediately registered and licensed in another state as required under subsection (1) of this section.
(3) If the department has information indicating the buyer is a Washington resident, or if the addresses for the buyer shown on the documentation provided under subsection (2) of this section are not the same, the department may contact the buyer to verify the buyer's eligibility for the exemption provided under this section. This subsection does not prevent the department from contacting a buyer as a result of information obtained from a source other than the seller's records.
(4)(a) Any person making fraudulent statements, which includes the offer of fraudulent identification or fraudulently procured identification to a seller, in order to purchase a motor vehicle, trailer, or camper without paying retail sales tax is guilty of perjury under chapter 9A.72 RCW.
(b) Any person making tax exempt purchases under this section by displaying proof of identification not his or her own, or counterfeit identification, with intent to violate the provisions of this section, is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one hundred dollars or the tax due on such purchases.
(5)(a) Any seller that makes sales without collecting the tax to a person who does not provide the documents required under subsection (2) of this section, and any seller who fails to retain the documents required under subsection (2) of this section for the period prescribed by RCW 82.32.070, is personally liable for the amount of tax due.
(b) Any seller that makes sales without collecting the retail sales tax under this section and who has actual knowledge that the buyer's documentation required by subsection (2) of this section is fraudulent is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one thousand dollars or the tax due on such sales. In addition, both the buyer and the seller are liable for any penalties and interest assessable under chapter 82.32 RCW.
(6) For purposes of this section, "buyer" does not include cosigners or financial guarantors, unless those parties are listed as a registered owner on the vehicle title.
[ 2010 c 161 s 1165; 2007 c 135 s 1; 1980 c 37 s 31. Formerly RCW 82.08.030(13).]
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.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of motor vehicles, trailers, or campers to nonresidents for use outside the state.


title: RCW 82.08.0266

text:
The tax levied by RCW 82.08.020 shall not apply to sales to nonresidents of this state for use outside of this state of watercraft requiring coast guard registration or registration by the state of principal use according to the federal boating act of 1958, even though delivery be made within this state, but only when (1) the watercraft will not be used within this state for more than forty-five days and (2) an appropriate exemption certificate supported by identification ascertaining residence as required by the department of revenue and signed by the purchaser or his or her agent establishing the fact that the purchaser is a nonresident and that the watercraft is for use outside of this state, a copy of which shall be retained by the dealer.
[ 2013 c 23 s 316; 1999 c 358 s 5; 1980 c 37 s 33. Formerly RCW 82.08.030(15).]
Notes:
Effective date—1999 c 358 ss 1 and 3-21: See note following RCW 82.04.3651.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of watercraft to nonresidents for use outside the state.


title: RCW 82.08.02665

text:
The tax levied by RCW 82.08.020 does not apply to sales of vessels to residents of foreign countries for use outside of this state, even though delivery is made within this state, but only if (1) the vessel will not be used within this state for more than forty-five days and (2) an appropriate exemption certificate supported by identification as required by the department of revenue and signed by the purchaser or the purchaser's agent establishes the fact that the purchaser is a resident of a foreign country and that the vessel is for use outside of this state. A copy of the exemption certificate is to be retained by the dealer.
As used in this section, "vessel" means every watercraft used or capable of being used as a means of transportation on the water, other than a seaplane.
[ 1999 c 358 s 6; 1993 c 119 s 1.]
Notes:
Effective date—1999 c 358 ss 1 and 3-21: See note following RCW 82.04.3651.

catchline: Exemptions—Sales of watercraft, vessels to residents of foreign countries.


title: RCW 82.08.0267

text:
The tax levied by RCW 82.08.020 shall not apply to sales of poultry for use in the production for sale of poultry or poultry products.
[ 1980 c 37 s 34. Formerly RCW 82.08.030(16).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

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


title: RCW 82.08.0268

text:
The tax levied by RCW 82.08.020 shall not apply to sales to nonresidents of this state for use outside of this state of:
(1) Machinery and implements for use in conducting a farming activity;
(2) Parts for machinery and implements for use in conducting a farming activity; and
(3) Labor and services for the repair of machinery, implements, and parts for use in conducting a farming activity,
when such machinery, implements, and parts will be transported immediately outside the state. As proof of exemption, an affidavit or certification in such form as the department of revenue shall require shall be retained as a business record of the seller.
[ 1998 c 167 s 1; 1980 c 37 s 35. Formerly RCW 82.08.030(17).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of machinery and implements, and related parts and labor, for farming to nonresidents for use outside the state.


title: RCW 82.08.0269

text:
The tax levied by RCW 82.08.020 shall not apply to sales for use in states, territories, and possessions of the United States which are not contiguous to any other state, but only when, as a necessary incident to the contract of sale, the seller delivers the subject matter of the sale to the purchaser or his or her designated agent at the usual receiving terminal of the carrier selected to transport the goods, under such circumstances that it is reasonably certain that the goods will be transported directly to a destination in such noncontiguous states, territories, and possessions.
[ 2013 c 23 s 317; 1980 c 37 s 36. Formerly RCW 82.08.030(18).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales for use in states, territories, and possessions of the United States which are not contiguous to any other state.


title: RCW 82.08.0271

text:
The tax levied by RCW 82.08.020 shall not apply to sales to municipal corporations, the state, and all political subdivisions thereof of tangible personal property consumed and/or of labor and services rendered in respect to contracts for watershed protection and/or flood prevention. This exemption shall be limited to that portion of the selling price which is reimbursed by the United States government according to the provisions of the Watershed Protection and Flood Prevention Act, Public Laws 566, as amended.
[ 1980 c 37 s 37. Formerly RCW 82.08.030(19).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales to municipal corporations, the state, and political subdivisions of tangible personal property, labor and services on watershed protection and flood prevention contracts.


title: RCW 82.08.0272

text:
The tax levied by RCW 82.08.020 shall not apply to sales of semen for use in the artificial insemination of livestock.
[ 1980 c 37 s 38. Formerly RCW 82.08.030(20).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of semen for artificial insemination of livestock.


title: RCW 82.08.0273

text:
(1) Subject to the conditions and limitations in this section, an exemption from the tax levied by RCW 82.08.020 in the form of a remittance from the department is provided for sales to nonresidents of this state of tangible personal property, digital goods, and digital codes. The exemption only applies if:
(a) The property is for use outside this state;
(b) The purchaser is a bona fide resident of a province or territory of Canada or a state, territory, or possession of the United States, other than the state of Washington; and
(i) Such state, possession, territory, or province does not impose, or have imposed on its behalf, a generally applicable retail sales tax, use tax, value added tax, gross receipts tax on retailing activities, or similar generally applicable tax, of three percent or more; or
(ii) If imposing a tax described in (b)(i) of this subsection, provides an exemption for sales to Washington residents by reason of their residence; and
(c) The purchaser agrees, when requested, to grant the department of revenue access to such records and other forms of verification at the purchaser's place of residence to assure that such purchases are not first used substantially in the state of Washington.
(2) Notwithstanding anything to the contrary in this chapter, if parts or other tangible personal property are installed by the seller during the course of repairing, cleaning, altering, or improving motor vehicles, trailers, or campers and the seller makes a separate charge for the tangible personal property, the tax levied by RCW 82.08.020 does not apply to the separately stated charge to a nonresident purchaser for the tangible personal property but only if the seller certifies in writing to the purchaser that the separately stated charge does not exceed either the seller's current publicly stated retail price for the tangible personal property or, if no publicly stated retail price is available, the seller's cost for the tangible personal property. However, the exemption provided by this section does not apply if tangible personal property is installed by the seller during the course of repairing, cleaning, altering, or improving motor vehicles, trailers, or campers and the seller makes a single nonitemized charge for providing the tangible personal property and service. All of the provisions in subsections (1) and (3) through (7) of this section apply to this subsection.
(3)(a) Any person claiming exemption from retail sales tax under the provisions of this section must pay the state and local sales tax to the seller at the time of purchase and then request a remittance from the department in accordance with this subsection and subsection (4) of this section. A request for remittance must include proof of the person's status as a nonresident at the time of the purchase for which a remittance is requested. The request for a remittance must also include any additional information and documentation as required by the department, which may include a description of the item purchased for which a remittance is requested, the sales price of the item, the amount of sales tax paid on the item, the date of the purchase, the name of the seller and the physical address where the sale took place, and copies of sales receipts showing the qualified purchases.
(b) Acceptable proof of a nonresident person's status includes one piece of identification such as a valid driver's license from the jurisdiction in which the out-of-state residency is claimed or a valid identification card which has a photograph of the holder and is issued by the out-of-state jurisdiction. Identification under this subsection (3)(b) must show the holder's residential address and have as one of its legal purposes the establishment of residency in that out-of-state jurisdiction.
(4)(a)(i) Beginning January 1, 2020, through December 31, 2020, a person may request a remittance from the department for state sales taxes paid by the person on qualified retail purchases made in Washington between July 1, 2019, and December 31, 2019.
(ii) Beginning January 1, 2021, a person may request a remittance from the department during any calendar year for state sales taxes paid by the person on qualified retail purchases made in Washington during the immediately preceding calendar year only. No application may be made with respect to purchases made before the immediately preceding calendar year.
(b) The remittance request, including proof of nonresident status and any other documentation and information required by the department, must be provided in a form and manner as prescribed by the department. Only one remittance request may be made by a person per calendar year.
(c) The total amount of a remittance request must be at least twenty-five dollars. The department must deny any request for a remittance that is less than twenty-five dollars.
(d) The department will examine the applicant's proof of nonresident status and any other documentation and information as required in the application to determine whether the applicant is entitled to a remittance under this section.
(5)(a) Any person making fraudulent statements to the department, which includes the offer of fraudulent or fraudulently procured identification or fraudulent sales receipts, in order to receive a remittance of retail sales tax is guilty of perjury under chapter 9A.72 RCW and is ineligible to receive any further remittances from the department under this section.
(b) Any person obtaining a remittance of retail sales tax from the department by providing proof of identification or sales receipts not the person's own, or counterfeit identification or sales receipts is (i) liable for repayment of the remittance, including interest as provided in chapter 82.32 RCW from the date the remittance was transmitted to the person until repaid in full, (ii) liable for a civil penalty equal to the greater of one hundred dollars or the amount of the remittance obtained in violation of this subsection (5)(b), and (iii) ineligible to receive any further remittances from the department under this section.
(c) Any person assisting another person in obtaining a remittance of retail sales tax in violation of (b) of this subsection is jointly and severally liable for amounts due under (b) of this subsection and is also ineligible to receive any further remittances from the department under this section.
(6) A person who receives a refund of sales tax from the seller for any reason with respect to a purchase made in this state is not entitled to a remittance for the tax paid on the purchase. A person who receives both a remittance under this section and a refund of sales tax from the seller with respect to the same purchase must immediately repay the remittance to the department. Interest as provided in chapter 82.32 RCW applies to amounts due under this section from the date that the department made the remittance until the amount due under this subsection is paid to the department. A person who receives a remittance with respect to a purchase for which the person had, at the time the person submitted the application for a remittance, already received a refund of sales tax from the seller is also liable for a civil penalty equal to the greater of one hundred dollars or the amount of the remittance obtained in violation of this subsection and is ineligible to receive any further remittances from the department under this section.
(7) The exemption provided by this section is only for the state portion of the sales tax. For purposes of this section, the state portion of the sales tax is not reduced by any local sales tax that is deducted or credited against the state sales tax as provided by law.
(8) The exemption in this section does not apply to sales of cannabis, useable cannabis, or cannabis-infused products.
[ 2022 c 16 s 148; 2019 c 423 s 101; 2014 c 140 s 17; 2011 c 7 s 1; 2010 c 106 s 215; 2009 c 535 s 512; 2007 c 135 s 2; 2003 c 53 s 399; 1993 c 444 s 1; 1988 c 96 s 1; 1982 1st ex.s. c 5 s 1; 1980 c 37 s 39. Formerly RCW 82.08.030(21).]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Finding—Intent—2019 c 423: "(1) The legislature finds that counties that border other states and Canada experience a significant problem of residents of Washington state who evade taxes and fees by failing to register their vehicles, aircraft, and vessels in Washington state. According to a 2007 Washington State University study, the department of revenue lost eighty million dollars over the previous five years to persons avoiding taxes and fees in this manner. It was also estimated in the study that twenty thousand vehicles were illegally registered in Oregon to residents of Clark county, Washington. The problem has undoubtedly grown worse in the decade since the study was completed resulting in hundreds of millions of dollars in lost revenue to state and local coffers as these new residents fail to pay their fair share for public services. Moreover, a public safety risk is created when inaccurate information is provided to law enforcement or insurance companies in the event of an accident or infraction.
(2) Current statutes contain monetarily significant penalties that are appropriate given the scope of the harm. It is the intent of the legislature that law enforcement and prosecutors proceed against violators to the fullest extent of the law. In order to give them more tools and ensure compliance with the law, it is the intent of the legislature to set up a deferred finding program consistent with other programs in the state that allows defendants to obtain dismissal of charges if they take certain remedial steps. It is the intent of the legislature that the punishment for those who do not comply with the deferred finding program remain in force and be fully implemented." [ 2019 c 423 s 201.]
Effective date—2019 c 423: "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, 2019." [ 2019 c 423 s 301.]
Effective date—2011 c 7: "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 7 s 2.]
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—Effective date—2003 c 53: See notes following RCW 2.48.180.
Effective date—1988 c 96: "This act shall take effect July 1, 1989." [ 1988 c 96 s 2.]
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales to nonresidents of tangible personal property, digital goods, and digital codes for use outside the state—Proof of nonresident status—Penalties.


title: RCW 82.08.0274

text:
The tax levied by RCW 82.08.020 shall not apply to sales of form lumber to any person engaged in the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon or above real property of or for consumers: PROVIDED, That such lumber is used or to be used first by such person for the molding of concrete in a single such contract, project or job and is thereafter incorporated into the product of that same contract, project or job as an ingredient or component thereof.
[ 1980 c 37 s 40. Formerly RCW 82.08.030(22).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of form lumber to person engaged in constructing, repairing, etc., structures for consumers.


title: RCW 82.08.02745

text:
(1) The tax levied by RCW 82.08.020 does not apply to charges made for labor and services rendered by any person in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures, in which at least 50 percent of housing units in the development are used as farmworker housing, or to sales of tangible personal property that becomes an ingredient or component of the buildings or other structures during the course of the constructing, repairing, decorating, or improving the buildings or other structures. The exemption is provided for all housing units in the development and is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department by rule.
(2) The exemption provided in this section for farmworker housing provided on a year-round basis only applies if that housing is built to the current building code for single-family or multifamily dwellings according to the state building code, chapter 19.27 RCW.
(3) Any farmworker housing built under this section must be used according to this section for at least five consecutive years from the date the housing is approved for occupancy, or the full amount of tax otherwise due is immediately due and payable together with interest, but not penalties, from the date the housing is approved for occupancy until the date of payment. If at any time farmworker housing ceases to be used in the manner specified in subsection (2) of this section, the full amount of tax otherwise due is immediately due and payable with interest, but not penalties, from the date the housing ceases to be used as farmworker housing until the date of payment.
(4) The exemption provided in this section does not apply to housing built for the occupancy of an employer, family members of an employer, or persons owning stock or shares in a farm partnership or corporation business. The exemption provided in this section does not apply to housing built exclusively for workers in the United States on an H-2A visa under the United States citizenship and immigration services.
(5) If during any agricultural season in the qualifying five years under subsection (3) of this section the housing is occupied by a farmworker who does not have an H-2A visa, then the housing will be considered not to be exclusively built for workers on an H-2A visa.
(6) For purposes of this section and RCW 82.12.02685, the following definitions apply unless the context clearly requires otherwise.
(a) "Agricultural employer" or "employer" has the same meaning as given in RCW 19.30.010, and includes any employer engaged in aquaculture as defined in RCW 15.85.020.
(b) "Farm work" means services relating to:
(i) Cultivating the soil, raising or harvesting, or catching, netting, handling, planting, drying, packing, grading, storing, or preserving in its unmanufactured state any agricultural or aquacultural commodity;
(ii) Delivering to storage, market, or a carrier for transportation to market or to processing any agricultural or aquacultural commodity; or
(iii) Working in a processing plant and directly handling agricultural or aquacultural product.
(c) "Farmworker" means a single person, or all members of a household, whether such persons are related or not, if the combined household income earned from farm work is at least $3,000 per calendar year.
(d) "Farmworker housing" means all facilities provided by an agricultural employer, housing authority, local government, state or federal agency, nonprofit community or neighborhood-based organization that is exempt from income tax under section 501(c) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)), or for-profit provider of housing for housing farmworkers on a year-round or seasonal basis, including bathing, food handling, hand washing, laundry, and toilet facilities, single-family and multifamily dwelling units and dormitories, and includes labor camps under RCW 70.114A.110.
(i) "Farmworker housing" includes:
(A) Housing occupied by a household with at least one member who is a farmworker; and
(B) Housing occupied by a farmworker on a seasonal basis, where the housing is not used as farmworker housing for a portion of the year, such as when it is rented to the general public when not being used for farmworker housing.
(ii) "Farmworker housing" does not include:
(A) Housing regularly provided on a commercial basis to the general public;
(B) Housing provided by a housing authority unless at least eighty percent of the occupants are farmworkers whose adjusted income is less than fifty percent of median family income, adjusted for household size, for the county where the housing is provided; and
(C) Housing provided to farmworkers providing services related to the growing, raising, or producing of cannabis.
(7) This section expires January 1, 2032.
[ 2022 c 16 s 149; 2021 c 250 s 1; 2014 c 140 s 18; 2007 c 54 s 14; 1997 c 438 s 1; 1996 c 117 s 1.]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Tax preference performance statement—2021 c 250: "(1) This section is the tax preference performance statement for the tax preferences contained in sections 1 and 2, chapter 250, Laws of 2021. 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 these tax preferences as ones intended to induce certain designated behavior by taxpayers as indicated in RCW 82.32.808(2)(a).
(3) It is the legislature's specific public policy objective to increase the supply of farmworker housing.
(4) If a review finds that new farmworker housing is developed utilizing these preferences, then the legislature intends to extend the expiration date of these tax preferences.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state." [ 2021 c 250 s 3.]
Effective date—2021 c 250: "This act takes effect October 1, 2021." [ 2021 c 250 s 4.]
Severability—2007 c 54: See note following RCW 82.04.050.
Effective date—1997 c 438: "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 [May 20, 1997]." [ 1997 c 438 s 3.]
Effective date—1996 c 117: "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 [March 20, 1996]." [ 1996 c 117 s 3.]

catchline: Exemptions—Charges for labor and services or sales of tangible personal property related to farmworker housing—Exemption certificate—Rules. (Expires January 1, 2032.)


title: RCW 82.08.0275

text:
The tax levied by RCW 82.08.020 shall not apply to sales of, cost of, or charges made for labor and services performed in respect to the mining, sorting, crushing, screening, washing, hauling, and stockpiling of sand, gravel and rock when such sand, gravel, or rock is taken from a pit or quarry which is owned by or leased to a county or a city, and such sand, gravel, or rock is (1) either stockpiled in said pit or quarry for placement or is placed on the street, road, place, or highway of the county or city by the county or city itself, or (2) sold by the county or city to a county, or a city at actual cost for placement on a publicly owned street, road, place, or highway. The exemption provided for in this section shall not apply to sales of, cost of, or charges made for such labor and services, if the sand, gravel, or rock is used for other than public road purposes or is sold otherwise than as provided for in this section.
[ 1980 c 37 s 41. Formerly RCW 82.08.030(23).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of and labor and service charges for mining, sorting, crushing, etc., of sand, gravel, and rock from county or city quarry for public road purposes.


title: RCW 82.08.0277

text:
The tax levied by RCW 82.08.020 shall not apply to sales of pollen.
[ 1980 c 37 s 43. Formerly RCW 82.08.030(25).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of pollen.


title: RCW 82.08.0278

text:
The tax levied by RCW 82.08.020 does not apply to:
(1) Sales to one political subdivision by another political subdivision directly or indirectly arising out of or resulting from the annexation, merger, or incorporation of any part of the territory of one political subdivision by another; and
(2) Sales to one political subdivision by another political subdivision pursuant to the terms of a contractual consolidation under which the taxpayers that originally paid a sales or use tax continue to benefit from the personal property.
[ 2019 c 188 s 1; 1980 c 37 s 44. Formerly RCW 82.08.030(26).]
Notes:
Tax preference performance statement exemption—2019 c 188: "The provisions of RCW 82.32.808 do not apply to this act." [ 2019 c 188 s 3.]
Expiration date—2019 c 188: "This act expires January 1, 2030." [ 2019 c 188 s 4.]
Intent—1980 c 37: See note following RCW 82.04.4281.
PDF
RCW 82.08.0278
Exemptions—Sales between political subdivisions resulting from annexation or incorporation. (Effective January 1, 2030.)
The tax levied by RCW 82.08.020 shall not apply to sales to one political subdivision by another political subdivision directly or indirectly arising out of or resulting from the annexation or incorporation of any part of the territory of one political subdivision by another.
[ 1980 c 37 s 44. Formerly RCW 82.08.030(26).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales between political subdivisions resulting from annexation or incorporation. (Effective until January 1, 2030.)


title: RCW 82.08.0279

text:
The tax levied by RCW 82.08.020 shall not apply to the renting or leasing of motor vehicles and trailers to a nonresident of this state for use exclusively in transporting persons or property across the boundaries of this state and in intrastate operations incidental thereto when such motor vehicle or trailer is registered and licensed in a foreign state and for purposes of this exemption the term "nonresident" shall apply to a renter or lessee 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 shall apply only to those vehicles which are most frequently dispatched, garaged, serviced, maintained and operated from the renter's or lessee's place of business in another state.
[ 1980 c 37 s 45. Formerly RCW 82.08.030(27).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Renting or leasing of motor vehicles and trailers to a nonresident for use in the transportation of persons or property across state boundaries.


title: RCW 82.08.02795

text:
(1) The tax levied by RCW 82.08.020 shall not apply to sales to free hospitals of items reasonably necessary for the operation of, and provision of health care by, free hospitals.
(2) As used in this section, "free hospital" means a hospital that does not charge patients for health care provided by the hospital.
[ 1993 c 205 s 1.]
Notes:
Effective date—1993 c 205: "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 6, 1993]." [ 1993 c 205 s 3.]

catchline: Exemptions—Sales to free hospitals.


title: RCW 82.08.02805

text:
(1) The tax levied by RCW 82.08.020 does not apply to the sale of medical supplies, chemicals, or materials to a qualifying blood bank, a qualifying tissue bank, or a qualifying blood and tissue bank. The exemption in this section does not apply to the sale of construction materials, office equipment, building equipment, administrative supplies, or vehicles.
(2) For the purposes of this section, the following definitions apply:
(a) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by a qualifying blood bank, a qualifying tissue bank, or a qualifying blood and tissue bank for the purpose of performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue. The term includes tangible personal property used to:
(i) Provide preparatory treatment of blood, bone, or tissue;
(ii) Control, guide, measure, tune, verify, align, regulate, test, or physically support blood, bone, or tissue; and
(iii) Protect the health and safety of employees or others present during research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
(b) "Chemical" means any catalyst, solvent, water, acid, oil, or other additive that physically or chemically interacts with blood, bone, or tissue.
(c) "Materials" means any item of tangible personal property, including, but not limited to, bags, packs, collecting sets, filtering materials, testing reagents, antisera, and refrigerants used or consumed in performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
(d) "Research" means basic and applied research that has as its objective the design, development, refinement, testing, marketing, or commercialization of a product, service, or process.
(e) The definitions in RCW 82.04.324 apply to this section.
[ 2004 c 82 s 2; 1995 2nd sp.s. c 9 s 4.]
Notes:
Effective date—1995 2nd sp.s. c 9: See note following RCW 84.36.035.

catchline: Exemptions—Sales to qualifying blood, tissue, or blood and tissue banks.


title: RCW 82.08.02806

text:
The tax levied by RCW 82.08.020 shall not apply to sales of human blood, tissue, organs, bodies, or body parts for medical research and quality control testing purposes.
[ 1996 c 141 s 1.]
Notes:
Effective date—1996 c 141: "This act shall take effect July 1, 1996." [ 1996 c 141 s 3.]

catchline: Exemptions—Sales of human blood, tissue, organs, bodies, or body parts for medical research and quality control testing.


title: RCW 82.08.02807

text:
(1) The tax levied by RCW 82.08.020 does not apply to the sales of medical supplies, chemicals, or materials to an organ procurement organization exempt under RCW 82.04.326. This exemption does not apply to the sale of construction materials, office equipment, building equipment, administrative supplies, or vehicles.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Chemical" means any catalyst, solvent, water, acid, oil, or other additive that physically or chemically interacts with blood, bone, or tissue.
(b) "Materials" means any item of tangible personal property including, but not limited to, bags, packs, collecting sets, filtering materials, testing reagents, antisera, and refrigerants, used or consumed in performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
(c) "Medical supplies" means any item of tangible personal property, including any repair and replacement parts for such tangible personal property, used by an organ procurement organization exempt under RCW 82.04.326 for the purpose of performing research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue. The term includes tangible personal property used to:
(i) Provide preparatory treatment of blood, bone, or tissue;
(ii) Control, guide, measure, tune, verify, align, regulate, test, or physically support blood, bone, or tissue; or
(iii) Protect the health and safety of employees or others present during research on, procuring, testing, processing, storing, packaging, distributing, or using blood, bone, or tissue.
[ 2020 c 139 s 13; 2014 c 97 s 306; 2002 c 113 s 2.]
Notes:
Effective date—2002 c 113: See note following RCW 82.04.326.

catchline: Exemptions—Sales to organ procurement organization.


title: RCW 82.08.0281

text:
(1) The tax levied by RCW 82.08.020 does not apply to sales of drugs for human use dispensed or to be dispensed to patients, pursuant to a prescription.
(2) The tax levied by RCW 82.08.020 does not apply to sales of drugs or devices used for family planning purposes, including the prevention of conception, for human use dispensed or to be dispensed to patients, pursuant to a prescription.
(3) The tax levied by RCW 82.08.020 does not apply to sales of drugs and devices used for family planning purposes, including the prevention of conception, for human use supplied by a family planning clinic that is under contract with the department of health to provide family planning services.
(4) The following definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of this state to prescribe.
(b) "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, alcoholic beverages, cannabis, useable cannabis, or cannabis-infused products:
(i) Recognized in the official United States pharmacopoeia, official homeopathic pharmacopoeia of the United States, or official national formulary, or any supplement to any of them; or
(ii) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(iii) Intended to affect the structure or any function of the body.
(c) "Over-the-counter drug" means a drug that contains a label that identifies the product as a drug required by 21 C.F.R. Sec. 201.66, as amended or renumbered on January 1, 2003. The label includes:
(i) A "drug facts" panel; or
(ii) A statement of the "active ingredient(s)" with a list of those ingredients contained in the compound, substance, or preparation.
[ 2022 c 16 s 150; 2014 c 140 s 19; 2004 c 153 s 108; 2003 c 168 s 403; 1993 sp.s. c 25 s 308; 1980 c 37 s 46. Formerly RCW 82.08.030(28).]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Retroactive effective date—Effective date—2004 c 153: See note following RCW 82.08.0293.
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Finding—1993 sp.s. c 25: "The legislature finds that prevention is a significant element in the reduction of health care costs. The legislature further finds that taxing some physician prescriptions and not others is unfair to patients. It is, therefore, the intent of the legislature to remove the taxes from prescriptions issued for family planning purposes." [ 1993 sp.s. c 25 s 307.]
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of prescription drugs.


title: RCW 82.08.0282

text:
The tax levied by RCW 82.08.020 shall not apply to sales of returnable containers for beverages and foods, including but not limited to soft drinks, milk, beer, and mixers.
[ 1980 c 37 s 47. Formerly RCW 82.08.030(29).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of returnable containers for beverages and foods.


title: RCW 82.08.0283

text:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of:
(a) Prosthetic devices prescribed, fitted, or furnished for an individual by a person licensed under the laws of this state to prescribe, fit, or furnish prosthetic devices, and the components of such prosthetic devices;
(b) Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW; and
(c) Medically prescribed oxygen, including, but not limited to, oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems prescribed for an individual by a person licensed under chapter 18.57 or 18.71 RCW for use in the medical treatment of that individual.
(2) In addition, the tax levied by RCW 82.08.020 shall not apply to charges made for labor and services rendered in respect to the repairing, cleaning, altering, or improving of any of the items exempted under subsection (1) of this section.
(3) The exemption in subsection (1) of this section shall not apply to sales of durable medical equipment, other than as specified in subsection (1)(c) of this section, or mobility enhancing equipment.
(4) The definitions in this subsection apply throughout this section.
(a) "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts for a prosthetic device, worn on or in the body to:
(i) Artificially replace a missing portion of the body;
(ii) Prevent or correct a physical deformity or malfunction; or
(iii) Support a weak or deformed portion of the body.
(b) "Durable medical equipment" means equipment, including repair and replacement parts for durable medical equipment that:
(i) Can withstand repeated use;
(ii) Is primarily and customarily used to serve a medical purpose;
(iii) Generally is not useful to a person in the absence of illness or injury; and
(iv) Is not worn in or on the body.
(c) "Mobility enhancing equipment" means equipment, including repair and replacement parts for mobility enhancing equipment that:
(i) Is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle;
(ii) Is not generally used by persons with normal mobility; and
(iii) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(d) The terms "durable medical equipment" and "mobility enhancing equipment" are mutually exclusive.
[ 2007 c 6 s 1101; 2004 c 153 s 101; 2003 c 168 s 409; 2001 c 75 s 1; 1998 c 168 s 2; 1997 c 224 s 1; 1996 c 162 s 1; 1991 c 250 s 2; 1986 c 255 s 1; 1980 c 86 s 1; 1980 c 37 s 48. Formerly RCW 82.08.030(30).]
Notes:
Part headings not law—Savings—Effective date—Severability—2007 c 6: See notes following RCW 82.32.020.
Findings—Intent—2007 c 6: See note following RCW 82.14.390.
Retroactive effective date—Effective date—2004 c 153: See note following RCW 82.08.0293.
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Effective date—2001 c 75: "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 [April 19, 2001]." [ 2001 c 75 s 3.]
Effective date—1998 c 168: See note following RCW 82.04.120.
Effective date—1997 c 224: "This act takes effect October 1, 1998." [ 1997 c 224 s 3.]
Effective date—1996 c 162: "This act shall take effect July 1, 1996." [ 1996 c 162 s 3.]
Finding—Intent—1991 c 250: "(1) The legislature finds:
(a) The existing state policy is to exempt medical oxygen from sales and use tax.
(b) The technology for supplying medical oxygen has changed substantially in recent years. Many consumers of medical oxygen purchase or rent equipment that supplies oxygen rather than purchasing oxygen in gaseous form.
(2) The intent of this act is to bring sales and rental of individual oxygen systems within the existing exemption for medical oxygen, without expanding the essence of the original policy decision that medical oxygen should be exempt from sales and use tax." [ 1991 c 250 s 1.]
Effective date—1986 c 255: "This act shall take effect July 1, 1986." [ 1986 c 255 s 3.]
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Certain medical items.


title: RCW 82.08.0285

text:
The tax levied by RCW 82.08.020 shall not apply to sales of ferry vessels to the state of Washington or to a local governmental unit in the state of Washington for use in transporting pedestrians, vehicles, and goods within or outside the territorial waters of the state; also sales of tangible personal property which becomes a component part of such ferry vessels; also sales of or charges made for labor and services rendered in respect to constructing or improving such ferry vessels.
[ 1980 c 37 s 50. Formerly RCW 82.08.030(32).]
Notes:
Intent—1980 c 37: See note following RCW 82.04.4281.

catchline: Exemptions—Sales of ferry vessels to the state or local governmental units—Components thereof—Labor and service charges.


title: RCW 82.08.0287

text:
(1) The tax imposed by this chapter does not apply to sales of passenger motor vehicles which are to be used primarily for ride sharing or ride sharing for persons with special transportation needs, as defined in RCW 46.74.010, if the vehicles are used as ride-sharing vehicles for thirty-six consecutive months beginning from the date of purchase.
(2)(a) To qualify for the tax exemption, those passenger motor vehicles with three or more passengers, including the driver, used for ride sharing, must be operated either within the state's eight largest counties that are required to develop commute trip reduction plans as directed by chapter 70A.15 RCW, in other counties, or cities and towns within those counties, that elect to adopt and implement a commute trip reduction plan, or in other counties where the vehicle is registered with or operated by a public transportation agency. Additionally at least one of the following conditions must apply: (i) The vehicle must be operated by a public transportation agency for the benefit of the general public; or (ii) the vehicle must be used by a major employer, as defined in RCW 70A.15.4010 as an element of its commute trip reduction program for their employees; or (iii) the vehicle must be owned and operated by individual employees and must be registered either with the employer as part of its commute trip reduction program or with a public transportation agency. Individual employee owned and operated motor vehicles will require certification that the vehicle is registered with a major employer or a public transportation agency. Major employers who own and operate motor vehicles for their employees must certify that the ride-sharing arrangement conforms to a carpool/vanpool element contained within their commute trip reduction program.
(b) Notwithstanding the ridership requirements under (a) of this subsection (2), unless the vehicle is operated by a public transportation agency, the vehicle must be used for ride sharing in the transport of at least five passengers.
[ 2021 c 135 s 6; 2020 c 20 s 1472; 2014 c 97 s 503; 2001 c 320 s 4; 1996 c 244 s 4; 1995 c 274 s 2; 1993 c 488 s 2; 1980 c 166 s 1.]
Notes:
Reviser's note: The tax preference enacted in section 6, chapter 135, Laws of 2021 expires January 1, 2032, pursuant to the automatic expiration date established in RCW 82.32.805(1)(a).
Effective date—2021 c 135: See note following RCW 46.18.285.
Effective date—2001 c 320: See note following RCW 11.02.005.
Finding—1993 c 488: "The legislature finds that ride sharing and vanpools are the fastest growing transportation choice because of their flexibility and cost-effectiveness. Ride sharing and vanpools represent an effective means for local jurisdictions, transit agencies, and the private sector to assist in addressing the requirements of the Commute Trip Reduction Act, the Growth Management Act, the Americans with Disabilities Act, and the Clean Air Act." [ 1993 c 488 s 1.]
Annual recertification rule—Report—1993 c 488: "The department shall adopt by rule a process requiring annual recertification upon renewal for vehicles registered under *RCW 46.16.023 to discourage abuse of tax exemptions under RCW 82.08.0287, 82.12.0282, and 82.44.015. The department of licensing in consultation with the department of transportation shall submit a report to the legislative transportation committee and the house and senate standing committees on transportation by July 1, 1996, assessing the effectiveness of the department of licensing at limiting tax exemptions to bona fide ride-sharing vehicles." [ 1993 c 488 s 6.]
*Reviser's note: RCW 46.16.023 was repealed by 2010 c 161 s 438, effective July 1, 2011.
Severability—1980 c 166: "If any provision of this 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." [ 1980 c 166 s 4.]
Ride-sharing vehicles—Special plates: RCW 46.18.285.

catchline: Exemptions—Sales of passenger motor vehicles as ride-sharing vehicles.


title: RCW 82.08.02875

text:
The tax levied by RCW 82.08.020 does not apply to vehicle parking charges that are subject to tax under RCW 36.38.040.
[ 1997 c 220 s 203 (Referendum Bill No. 48, approved June 17, 1997).]
Notes:
Referendum—Other legislation limited—Legislators' personal intent not indicated—Reimbursements for election—Voters' pamphlet, election requirements—1997 c 220: See RCW 36.102.800 through 36.102.803.

catchline: Exemptions—Vehicle parking charges subject to tax at stadium and exhibition center.


title: RCW 82.08.0288

text:
The tax levied by RCW 82.08.020 does not apply to the lease of irrigation equipment if:
(1) The irrigation equipment was purchased by the lessor for the purpose of irrigating land controlled by the lessor;
(2) The lessor has paid tax under RCW 82.08.020 or 82.12.020 in respect to the irrigation equipment;
(3) The irrigation equipment is attached to the land in whole or in part;
(4) The irrigation equipment is not used in the production of cannabis; and
(5) The irrigation equipment is leased to the lessee as an incidental part of the lease of the underlying land to the lessee and is used solely on such land.
[ 2022 c 16 s 151; 2014 c 140 s 20; 1983 1st ex.s. c 55 s 5.]
Notes:
Intent—Finding—2022 c 16: See note following RCW 69.50.101.
Effective dates—1983 1st ex.s. c 55: See note following RCW 82.08.010.

catchline: Exemptions—Lease of certain irrigation equipment.


title: RCW 82.08.0289

text:
Subject to the enactment into law of the 2013 amendments to RCW 82.14B.040 in section 103, chapter 8, Laws of 2013 2nd sp. sess., the 2013 amendments to RCW 82.14B.042 in section 104, chapter 8, Laws of 2013 2nd sp. sess., the 2013 amendments to RCW 82.14B.030 in section 105, chapter 8, Laws of 2013 2nd sp. sess., the 2013 amendments to RCW 82.14B.200 in section 106, chapter 8, Laws of 2013 2nd sp. sess., the 2013 amendments to RCW 80.36.430 in section 108, chapter 8, Laws of 2013 2nd sp. sess., and the 2013 amendments to RCW 43.20A.725 in section 109, chapter 8, Laws of 2013 2nd sp. sess.:
(1) Until August 1, 2013, the tax levied by RCW 82.08.020 does not apply to sales of:
(a) Local service;
(b) Coin-operated telephone service; and
(c) Mobile telecommunications services, including any toll service, provided to a customer whose place of primary use is outside this state.
(2) The definitions in RCW 82.04.065, as well as the definitions in this subsection, apply to this section.
(a) "Local service" means: (i) Ancillary services and telecommunications service, as those terms are defined in RCW 82.04.065, other than toll service, provided to an individual subscribing to a residential class of telephone service offered under a tariff required to be filed with the Washington utilities and transportation commission under Title 80 RCW; and (ii) fixed interconnected voice over internet protocol service, other than the nonlocal service allocation attributable to that service, sold by a provider to an individual classified as residential by that provider.
(b) "Toll service" means long distance service regardless of the method of billing for such service, but does not include customer access line charges for access to a toll calling network.
(c) "Coin-operated telephone service" means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate.
(d) "Fixed interconnected voice over internet protocol service" means a service that meets the definition of interconnected voice over internet protocol service in 47 C.F.R. Sec. 9.3 on January 1, 2009, and that offers an active telephone number or successor dialing protocol assigned by a provider; provides inbound and outbound calling capability; and can be used for transmission of telephone calls only from a fixed location.
(e) "Nonlocal service allocation" means the portion of the provider's fixed interconnected voice over internet protocol service attributable to the provider's nationwide nonlocal service activity as determined using a method sanctioned by the federal communications commission in FCC 06-94 and reported to the federal communications commission for the same calendar quarter. If the provider does not report any nonlocal service activity to the federal communications commission, the full revenue derived from the fixed interconnected voice over internet protocol service is deemed part of the nonlocal service allocation.
(f) "Provider" means a provider of a fixed interconnected voice over internet protocol service that is, or is affiliated with a person that is, subject to a franchise fee in this state under the authority of Title 47 U.S.C. Sec. 542(a). A provider is affiliated with a person if the provider and the person have one hundred percent common ownership.
[ 2013 2nd sp.s. c 8 s 107. Prior: 2007 c 6 s 1006; 2007 c 6 s 1005; 2002 c 67 s 6; 1983 2nd ex.s. c 3 s 30.]
Notes:
Retroactive application—2013 2nd sp.s. c 8 s 107: "Section 107 of this act applies prospectively as well as retroactively to tax periods open for assessment or refund of taxes under RCW 82.32.050 or 82.32.060, including any refund claims or disputed assessments pending before the department of revenue, board of tax appeals, or any court of law." [ 2013 2nd sp.s. c 8 s 111.]
VOIP sales tax refunds not authorized before August 1, 2013—2013 2nd sp.s. c 8 s 107: "In accordance with Article VIII, section 5 of the state Constitution, section 107 of this act does not authorize refunds of sales tax validly collected before August 1, 2013, on fixed interconnected voice over internet protocol service as defined in section 107 of this act." [ 2013 2nd sp.s. c 8 s 112.]
Application—Local service ending after August 1, 2013—2013 2nd sp.s. c 8: "For services affected by the expiration of the exemption for local service under RCW 82.08.0289(1) that cover a billing period starting before and ending after August 1, 2013, RCW 82.08.064(3)(a) is deemed to apply, and retail sales tax will apply to the first billing period starting on or after August 1, 2013." [ 2013 2nd sp.s. c 8 s 110.]
Findings—Intent—Effective dates—2013 2nd sp.s. c 8: See notes following RCW 82.14B.040.
Contingent effective date—2007 c 6 ss 1003, 1006, 1014, and 1018: See note following RCW 82.04.065.
Part headings not law—Savings—Effective date—Severability—2007 c 6: See notes following RCW 82.32.020.
Findings—Intent—2007 c 6: See note following RCW 82.14.390.
Finding—Effective date—2002 c 67: See notes following RCW 82.04.530.
Construction—Severability—Effective dates—1983 2nd ex.s. c 3: See notes following RCW 82.04.255.

catchline: Exemptions—Telephone, telecommunications, and ancillary services.


title: RCW 82.08.0291

text:
The tax imposed by RCW 82.08.020 does not apply to sales defined as a sale at retail and retail sale under *RCW 82.04.050 (3)(g) or (15), by a nonprofit youth organization, as defined in RCW 82.04.4271, to members of the organization; and the tax does not apply to physical fitness classes provided by a local government.
[ 2015 c 169 s 4; 2000 c 103 s 8; 1994 c 85 s 1; 1981 c 74 s 2.]
Notes:
*Reviser's note: RCW 82.04.050 was amended by 2025 c 422 s 101, changing subsection (3)(g) to subsection (3)(m), effective October 1, 2025. RCW 82.04.050 was subsequently amended by 2026 c 238 s 1001, changing subsection (3)(m) to subsection (3)(h), effective January 1, 2029.
Effective date—2015 c 169: See note following RCW 82.04.050.
Effective date—1994 c 85: "This act shall take effect July 1, 1994." [ 1994 c 85 s 2.]

catchline: Exemptions—Sales of amusement and recreation services or personal services by nonprofit youth organization—Local government physical fitness classes.