WAC 458-20-180
Motor transportation, urban
transportation. The term "motor transportation business"
means the business (except urban transportation business) of
operating any motor propelled vehicle by which persons or
property of others are conveyed for hire, and includes, but is
not limited to the operation of any motor propelled vehicle as
an auto transportation company (except urban transportation
business), common carrier or contract carrier as defined by
RCW 81.68.010 and 81.80.010.
It includes the business of hauling for hire any
extracted or manufactured material, over the highways of the
state and over private roads but does not include the
transportation of logs or other forest products exclusively
upon private roads.
It does not include the hauling of any earth or other
substance excavated or extracted from or taken to the right of
way of a publicly owned street, place, road or highway, by a
person taxable under the classification of public road
construction of the business and occupation tax. (See WAC 458-20-171.)
The term "urban transportation business" means the
business of operating any vehicle for public use in the
conveyance of persons or property for hire, insofar as (A)
operating entirely within the corporate limits of any city or
town, or within five miles of the corporate limits thereof, or
(B) operating entirely within and between cities and towns
whose corporate limits are not more than five miles apart or
within five miles of the corporate limits of either thereof. Included herein, but without limiting the scope thereof, is
the business of operating passenger vehicles of every type and
also the business of operating cartage, pickup or delivery
services, including in such services the collection and
distribution of property arriving from or destined to a point
within or without the state, whether or not such collection or
distribution be made by the person performing a local or
interstate line-haul of such property.
It does not include the business of operating any vehicle
for the conveyance of persons or property for hire when such
operating extends more than five miles beyond the corporate
limits of any city (or contiguous cities) through which it
passes. Thus an operation extending from a city to a point
which is more than five miles beyond its corporate limits does
not constitute urban transportation, even though the route be
through intermediate cities which enables the vehicle, at all
times to be within five miles of the corporate limits of some
city.
The terms "motor transportation" and "urban
transportation" include the business of renting or leasing
trucks, trailers, busses, automobiles and similar motor
vehicles to others for use in the conveyance of persons or
property when as an incident of the rental contract such motor
vehicles are operated by the lessor or by an employee of the
lessor. These terms include the business of operating
taxicabs, armored cars, and contract mail delivery vehicles,
but do not include the businesses of operating auto wreckers
or towing vehicles (taxable as sales at retail or wholesale
under RCW 82.04.050), school busses, ambulances, nor the
collection and disposal of refuse and garbage (taxable under
the business and occupation tax classification, service and
other activities). Amounts received for providing commuter
share riding or ride sharing for the elderly and the
handicapped in accordance with RCW 46.74.010 are not subject
to tax.
Retail Sales Tax
Persons engaged in the business of motor transportation
or urban transportation are required to collect the retail
sales tax upon gross retail sales of tangible personal
property sold by them. The retail sales tax must also be
collected upon retail sales of services defined as "sales" in
RCW 82.04.040 and "sales at retail" in RCW 82.04.050,
including charges for the rental of motor vehicles or other
equipment without an operator.
Persons engaged in the business of motor transportation
or urban transportation must pay the retail sales tax to their
vendors when purchasing motor vehicles, trailers, equipment,
tools, supplies and other tangible personal property for use
in the conduct of such businesses. (See WAC 458-20-174 for
limited exemptions allowed in the act for motor carriers
operating in interstate or foreign commerce.) Persons buying
motor vehicles, trailers and similar equipment solely for the
purpose of renting or leasing the same without an operator are
making purchases for resale and are not required to pay the
retail sales tax to their vendors.
Business and Occupation Tax
Retailing. Persons engaged in either of said businesses
are taxable under the retailing classification upon gross
retail sales of tangible personal property sold by them and
upon retail sales of services defined as "sales" in RCW 82.04.040 or "sales at retail" in RCW 82.04.050.
Service and other business activities. Persons engaged
in either of said businesses are taxable under the service and
other activities classification upon gross income received
from checking service, packing and crating, the mere loading
or unloading for others, commissions on sales of tickets for
other lines, travelers' checks and insurance, etc. and the
transportation of logs and other forest products exclusively
over private roads.
Public Utility Tax
Persons engaged in the business of urban transportation
are taxable under the urban transportation classification upon
the gross income from such business.
Persons engaged in the business of motor transportation
are taxable under the motor transportation classification upon
the gross income from such business.
Persons engaged in the business of both urban and motor
transportation are taxable under the motor transportation
classification upon gross income, unless a proper segregation
of such revenue is shown by the books of account of such
persons. (See WAC 458-20-193 for interstate and foreign
commerce.)
[Statutory Authority: RCW 82.32.300. 83-07-033 (Order ET
83-16), § 458-20-180, filed 3/15/83; Order ET 70-3, §
458-20-180 (Rule 180), filed 5/29/70, effective 7/1/70.]