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