RCW 82.12.037
Credits and refunds -- Bad debts.
(1) A seller
is entitled to a credit or refund for use taxes previously paid
on bad debts, as that term is used in 26 U.S.C. Sec. 166, as
amended or renumbered as of January 1, 2003.
(2) For purposes of this section, "bad debts" does not
include:
(a) Amounts due on property that remains in the possession
of the seller until the full purchase price is paid;
(b) Expenses incurred in attempting to collect debt; and
(c) Repossessed property.
(3) If a credit or refund of use tax is taken for a bad debt
and the debt is subsequently collected in whole or in part, the
tax on the amount collected must be paid and reported on the
return filed for the period in which the collection is made.
(4) Payments on a previously claimed bad debt are applied
first proportionally to the taxable price of the property or
service and the sales or use tax thereon, and secondly to
interest, service charges, and any other charges.
(5) If the seller uses a certified service provider as
defined in RCW 82.32.020 to administer its use tax
responsibilities, the certified service provider may claim, on
behalf of the seller, the credit or refund allowed by this
section. The certified service provider must credit or refund
the full amount received to the seller.
(6) The department shall allow an allocation of bad debts
among member states to the streamlined sales and use tax
agreement, as defined in RCW 82.58.010(1), if the books and
records of the person claiming bad debts support the allocation.
[2007 c 6 § 103; 2004 c 153 § 304; 1982 1st ex.s. c 35 § 36.]
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 82.14.495.
Bad debts -- Intent -- 2004 c 153: See note following RCW 82.08.037.
Retroactive effective date -- Effective date -- 2004 c 153: See note following RCW 82.08.0293.
Severability -- Effective dates -- 1982 1st ex.s. c 35: See notes following RCW 82.08.020.