RCW 82.32.783
Seller's permit -- Contractor application.
(Effective January 1, 2010.)
(1)(a) Contractors seeking a new
seller's permit or to renew or reinstate a seller's permit must
apply to the department in a form and manner prescribed by the
department.
(b) As part of the application, the contractor must report
the dollar amount of all purchases of materials and labor during
the preceding twelve months for retail construction activity,
speculative building, public road construction, and government
contracting. If the contractor was not engaged in business as a
contractor during the preceding twelve months, the contractor may
provide an estimate of the dollar amount of purchases of
materials and labor for retail construction activity, speculative
building, public road construction, and government contracting
during the twelve-month period for which the seller's permit will
be valid.
(c) The department must rule on applications within sixty
days of receiving a complete application.
(d)(i) An application must be denied if:
(A) The department determines that the applicant is not
entitled to make purchases at wholesale;
(B) The application contains any material misstatement;
(C) The application is incomplete; or
(D) Less than twenty-five percent of the taxpayer's total
dollar amount of actual or, if applicable, estimated material and
labor purchases as reported on the application is for retail
construction activity performed by the applicant. However, the
department may approve an application not meeting the criteria in
this subsection (1)(d)(i)(D) if the department is satisfied that
approval is unlikely to jeopardize collection of the taxes due
under this title.
(ii) The department may also deny an application if the
department determines that denial would be in the best interest
of collecting taxes due under this title.
(e) Applications to renew a seller's permit may not be made
more than ninety days before the expiration of the seller's
permit.
(2) Sellers' permits issued by the department will be in a
form prescribed by the department, which may include an
electronic form, and must contain a unique identifying number
assigned by the department.
(3)(a) Sellers' permits issued, renewed, or reinstated under
this section will be valid for a period of twelve months from the
date of issuance, renewal, or reinstatement.
(b) A seller's permit is no longer valid if the permit
holder's certificate of registration is revoked by the department
or the person otherwise ceases to engage in business.
(4)(a) The department may revoke a seller's permit of a
contractor for any of the following reasons:
(i) The contractor used or allowed or caused its seller's
permit to be used to purchase any item or service without payment
of sales tax, but the contractor or other purchaser was not
entitled to use the seller's permit for the purchase;
(ii) The department issued the seller's permit to the
contractor in error;
(iii) The department determines that the contractor is no
longer entitled to make purchases at wholesale; or
(iv) The department determines that revocation of the
seller's permit would be in the best interest of collecting taxes
due under this title.
(b) The notice of revocation must be in writing and is
effective on the date specified in the revocation notice. The
notice must also advise the contractor of its right to a review
by the department.
(c) The department may refuse to reinstate a seller's permit
revoked under (a)(i) of this subsection until all taxes,
penalties, and interest due on any improperly purchased item or
service have been paid in full. In the event a contractor whose
seller's permit has been revoked under this subsection
reorganizes, the new business resulting from the reorganization
is not entitled to a seller's permit until all taxes, penalties,
and interest due on any improperly purchased item or service have
been paid in full.
(d) For purposes of this subsection, "reorganize" or
"reorganization" means: (i) The transfer, however effected, of a
majority of the assets of one business to another business where
any of the persons having an interest in the ownership or
management in the former business maintain an ownership or
management interest in the new business, either directly or
indirectly; (ii) a mere change in identity or form of ownership,
however effected; or (iii) the new business is a mere
continuation of the former business based on significant shared
features such as owners, personnel, assets, or general business
activity.
(5) The department may provide lists of valid and revoked
sellers' permit numbers on its web site.
(6) The department must provide by rule for the review of
the department's decision to deny, revoke, or refuse to reinstate
a seller's permit. Such review must be consistent with the
requirements of chapter 34.05 RCW.
(7) As part of its continuing efforts to educate taxpayers
on their sales and use tax responsibilities, the department will
educate taxpayers on the appropriate use of a seller's permit or
uniform exemption certificate authorized under RCW 82.04.470 and
the consequences of misusing such permits or exemption
certificates.
(8) As used in this section, the following definitions
apply:
(a) "Contractor" means a person who engages in any retail
construction activity, or who engages in any activity that brings
the person within the definition of consumer in RCW 82.04.190 (3)
or (6), or who is a speculative builder as defined by rule of the
department.
(b) "Government contracting" means the activity described in
RCW 82.04.190(6).
(c) "Public road construction" means the activity described
in RCW 82.04.190(3).
(d) "Retail construction activity" means any activity
defined as a retail sale in RCW 82.04.050(2) (b) or (c).
(e) "Speculative building" means the activities of a
speculative builder as the term "speculative builder" is defined
by rule of the department.
[2009 c 563 § 202.]
NOTES:
Finding -- Intent -- Construction -- Effective date -- Reports and recommendations -- 2009 c 563: See notes following RCW 82.32.780.