Many of my readers may be familiar with a very popular article I wrote in May of 2008 about the then new Washington State Destination Based Sales Tax. Today I received news from one of my readers that alerted me to a new development: SB5113.
This new bill would ammend 82.32 RCW adding language that would seem to fix the problem that many of us who own online stores have – namely that we’re supposed to be charging tax based on the customer’s address, the “destination”.
Here’s the language:
NEW SECTION. Sec. 2. A new section is added to chapter 82.32 RCW
4 to read as follows:
5 (1) Retail sales of tangible personal property and digital goods
6 shall be sourced to the location where the order is received by the
7 seller if:
8 (a) The order is received in this state by the seller and where
9 receipt of the product by the purchaser or the purchaser’s donee occur
10 in this state. However, when products are sold in conjunction with a
11 retail service, both the product and the service must be sourced as
12 required in RCW 82.32.730;
13 (b) The location where receipt of the product by the purchaser
14 occurs is determined pursuant to RCW 82.32.730(1) (b) through (d); and
15 (c) At the time the order is received, the recordkeeping system of
16 the seller used to calculate the proper amount of tax to be imposed
17 captures the location where the order is received.
18 (2) For purposes of this section, the location where the order is
19 received by or on behalf of the seller means the physical location of
20 a seller or third party such as an established outlet, office location
21 or automated order receipt system operated by or on behalf of the
22 seller where an order is initially received by or on behalf of the
23 seller and not where the order may be subsequently accepted, completed
24 or fulfilled.
If you’re in Washington, contact your legislators to learn more about this bill and if indeed does get rid of the nearly impossible to implement “destination based sales tax”, help get this bill out of committee and up for a full vote. This would be a great improvement and make it much easier for online store owners.Jill
Aldebaran Web Design, Seattle
Jill Olkoski has a BS in Engineering, a BS in Computer Science and an MA in Clinical Psychology. She delights in using her advanced technical and psychological skills to help small business owners develop cost-effective and successful websites.