WAC 250

Exemptions--Public Utilities.

Deductions--Compensation received by a political subdivision from another political subdivision for services taxable under RCW 82.04.290.

Definitions.

Public Utility Tax imposed

Solid waste collection tax

Refuse-solid waste collection business-Core deposits and credits, battery core charges, and tires.Effective 9/2/89

Refuse-solid waste collection business - Core deposits and credits, and battery core charges. Emergency rule may be used to determine tax liability until February 25, 2006, unless the Department adopts a permanent rule prior to this date.

CORE DEPOSITS AND CREDITS - PARTS RETURNED TO WHOLESALERS Cancelled effective 02/28/07 This document explains the tax treatment of core deposits and credits involving automobile parts such as starters. This subject is fully addressed in WAC 458-20-272 (Tire fee--Core deposits or credits).

New Apportionment Method

Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients

Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

Reporting Instructions for Composting Facilities

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

REFUSE COLLECTION TAX -- SLUDGE -- RECYCLING OF. Sludge isthe material left over following the wastewater/sewage treatment process. Its utilization as a fertilizer is considered recycling rather than disposal. Sludge collected for recycling is not subject to the refuse collection tax. PARTIAL ACCORD: Det. No. 89-435, 8 WTD 167 91989).

MISCELLANEOUS -- EXAMPLES IN RULES. When an example in an administrative rule conflicts with the text of the rule, the text of the rule controls.

REFUSE COLLECTION BUSINESSES -- SOLID WASTE COLLECTION BUSINESSES -- PUBLIC SERVICE BUSINESSES -- BUSINESS AND OCCUPATION TAX - PUBLIC UTILITY TAX -- MUNICIPALLY OWNED REFUSE OR SOLID WASTE COLLECTION BUSINESSES.A municipally owned refuse or solid waste collection business is subject to tax under the service and other classification of the business and occupation (B&O) tax.

REFUSE OR SOLID WASTE COLLECTION BUSINESS -- POLITICAL SUBDIVISIONS -- COMPENSATION FOR SERVICES.Amounts received by a municipal corporation from a county health department are deductible under RCW 82.04.4291.

SOLID WASTE COLLECTION TAX -- SCOPE OF TAX -- EXCLUSION OF RECYCLABLE MATERIALS AND HAZARDOUS WASTES.The solid waste collection tax is not imposed on recyclable materials or on hazardous wastes.

SOLID WASTE COLLECTION TAX -- IDENTITY OF TAXPAYER -- REFUNDS.A municipal corporation is not entitled to a refund of overpaid solid waste collection tax because it was not the taxpayer, unless the municipal corporation becomes subrogated to the refund claims of all of the actual taxpayers or unless the municipal corporation demonstrates the remitted tax came from its own funds.

REFUSE AND SOLID WASTE COLLECTION TAX – MEASURE OF TAX.A city imposed solid waste tax that a waste disposal business collects from its customers is a cost of doing business that is not excludable from “gross income of the business” and measure of the Refuse and Solid Waste Collection Tax.

RCW 82.18.010, RCW 82.18.020: SOLID WASTE COLLECTION TAX – COLLECTION FOR RECYCLING – CONSTRUCTION (CDL) DEBRIS – LACK OF VALUE TO CUSTOMER (DISCARDER) NOT DETERMINATIVE.Whether debris handed over to a collection service has value to the customer (discarder) is not the determinative factor with respect to whether the material is considered “solid waste” or “material collected primarily for recycling.”Whether the materials are delivered and collected primarily for recycling are the determinative factors.

RCW 82.18.010, RCW 82.18.020: SOLID WASTE COLLECTION TAX – CONSTRUCTION DEBRIS – COLLECTION OF MIXED CDL WASTE FOR RECYCLING AT CDL FACILITY – SEPARATELY IDENTIFYING CHARGES NOT REQUIRED. A collection service that collects mixed loads of commercial construction, demolition, and land-clearing debris (CDL) materials for recycling at certified CDL recycling facilities generally is not required to separately identify charges for collecting recyclables, and for collecting waste, in its customer billings.Det. No. 89-435, 8 WTD 167 (1989), distinguished.

RCW 82.18.010, RCW 82.18.020: SOLID WASTE COLLECTION TAX – COLLECTION FOR RECYCLING – CONSTRUCTION (CDL) DEBRIS – KNOWLEDGE AND INTENTION OF CUSTOMER.The knowledge and intention of the customer/taxpayer are material to the issue whether material is collected primarily for recycling or salvage.For construction debris to be considered “material collected primarily for recycling or salvage,” for purposes of Ch. 82.18 RCW, it is necessary that the customer of the collection service hand over the material for recycling.

RCW 82.16.010: PUBLIC UTILITY TAX – If a business collects construction, demolition, and land clearing debris (CDL) for disposal or incineration, the income is subject to the Service & Other Activities B&O tax, and the collection service provider must collect the solid waste collection tax. If a business collects CDL for recycling at its own facility, the income is subject to Service & Other Activities B&O tax.

HOUSING AUTHORITIES -- STATE TAXES -- REFUSE COLLECTION TAX -- EXEMPTION. City and County Housing Authorities created under chapter 35.82 RCW are exempt of all state taxes, including refuse collection tax.

PUBLIC UTILITY TAX -- SERVICE B&O -- REFUSE BUSINESS -- ESTOPPEL -- ETB 534.16.250. Doctrine of equitable estoppel applied to preclude retroactive reclassification of income where refuse collection and disposal businesses showed detrimental reliance on previous written instructions from the Department of Revenue as to the proper reporting of their income.

REFUSE -- SOLID WASTE COLLECTION TAX -- RECYCLING -- YARD WASTE. Yard waste is collected primarily for recycling and is not subject to either the refuse collection tax (3.6%), or the solid waste collection tax (1%), when the yard waste is separately collected, separately billed, and separately delivered, to a facility not a landfill or other disposal site, for the purpose of making compost which is later resold.

REFUSE -- SOLID WASTE COLLECTION TAX -- RECYCLING -- CURBSIDE RECYCLING PICKUP CHARGES -- CHARGES IN THE RATE BASE. The amount of the refuse-solid waste collection charge of a city internally identified in its rate base as a charge for the curbside pickup of recyclables is not subject to either the refuse collection tax (3.6%) or the solid waste tax (1%); provided, the curbside recycling pickup service is actually performed.