Sales/Use/Indirect:
Washington DOR Proposes Rule on Sourcing Retail Sales for B&O and Sales/Use Tax Purposes

Proposed Amended WAC 458-20-145, Wash. Dept. of Rev. (6/21/22). The Washington Department of Revenue (Department) has proposed some changes to its rule on how to determine where sales of tangible personal property, retail services, extended warranties, digital products, digital codes, and leases of tangible personal property are sourced for purposes of Washington’s business and occupation (B&O) tax, retail sales tax, and use tax. According to the Department, the proposed changes:

• Incorporate existing provisions for sourcing sales of tangible personal property found in WAC 458-20-193(Part 2),
• Incorporate provisions and examples that clarify the Department’s existing historical policies for use tax sourcing,
• Reorganize and reformat to current standards,
• Clarify existing provisions and examples in the rule to ensure the Department’s existing historical policies are clearly represented,
• Retitle the rule to better represent the content and scope of the rule, and
• Clarify or incorporate “any other relevant or related information based on external stakeholder comments.”

Comments on this proposal are due by August 5, 2022, and a related public hearing has been scheduled for July 27, 2022. Please contact us with any questions.