WAC 174-01

Exemptions--Sales of airplanes, locomotives, railroad cars, or watercraft for use in interstate/s or foreign commerce.

Exemptions--Sales of motor vehicles and trailers for use in transporting persons or property in interstate or foreign commerce.

Exemptions--Use of airplanes, locomotives, railroad cars, or watercraft used in interstate/s or foreign commerce.

Deductions in computing tax.

Use tax liability for motor vehicles, trailers, and parts used by motor carriers operating in interstate or foreign commerce. Effective 6/13/97.

WAC 458-20-174 Sales of motor vehicles, trailers, and parts to motor carriers operating in interstate or foreign commerce; WAC 458-20-17401 Use tax liability for motor vehicles, trailers, and parts used by motor carriers operating in interstate or foreign commerce. Rule 174 explains the application of the business & occupation tax and the retail sales tax on sales to for hire motor carriers operating in interstate or foreign commerce. Rule 17401 explains the use tax and use tax exemptions that apply to for hire motor carriers.

EXCISE TAX RULES BEING REVISED AS A RESULT OF 1995 LEGISLATION Cancelled 06/30/99

RETAIL SALES TAX—USE TAX—EXEMPTION FOR INTERSTATE CARRIERS—COMPONENT PARTS. Retail sales tax and use tax exemptions are provided for component parts purchased by interstate motor carriers. Included are such items as tires, engine repair parts, and items permanently attached to vehicles or held by brackets. Tire chains are also exempt when they are stored in boxes permanently attached to the vehicles.

RETAIL SALES TAX—USE TAX—EXEMPTION FOR INTERSTATE CARRIERS—MOTOR VEHICLES AND TRAILERS—VALUATION WHEN USE NO LONGER INTERSTATE. Purchases of motor vehicles by interstate motor carriers may be exempt from retail sales tax at the time of purchase, yet use tax may come due on subsequent use when a vehicle is no longer used in substantial part in transporting persons or property for hire across state boundaries. When use tax becomes due, it is based on the fair market value of the vehicle at the time of first non-exempt use.

RETAIL SALES -- USE TAX -- INTERSTATE FOR HIRE CARRIERS -- COMPONENT PARTS. The retail sales and use tax exemption for the purchase of component parts of motor vehicles and trailers applies to the holders of interstate carrier permits as long as the motor vehicle or trailer to which the parts are attached will be used in hauling for hire, and even if it will not be used substantially in interstate hauls.

Rule 17401; RCW 82.12.0254: RETAIL SALES – USE TAX – INTERSTATE FOR HIRE CARRIERS. A taxpayer with an ICC permit is not entitled to a use tax exemption for its vehicles when they are used in substantial part to transport product that it purchased for resale because it is not acting as a “for hire” carrier.

RULE 17401; RCW 82.12.0264; RCW 82.32.070: USE TAX – EXEMPTION FOR INTERSTATE CARRIERS – COMPONENT PARTS. Taxpayers are required to keep records that are necessary to determine their tax liability. Lack of adequate records will bar a taxpayer from claiming that certain purchases were component parts for vehicles used in the commission of interstate commerce, which are exempt from use tax liability.

RCW 82.32.050; RCW 82.12.0254; RCW 82.12.020: STATUTORY LIMITATION ON ASSESSMENTS: USE TAX – MOTOR CARRIER ROLLING STOCK. RCW 82.32.050(3) bars the assessment of use tax more than four years after the close of the tax year in which a truck and related trailer fail to qualify for a use tax exemption.