SALT Report 1379 – Legislation was introduced in the Washington Senate that repeals the destination-based sourcing guidelines that the state adopted in order to conform to the Streamlined Sales and Use Tax Agreement. These changes will take effect January 1, 2014 unless congress enacts legislation requiring remote sellers to collect tax from states in which they sell, but do not have a physical presence.
- A retail sale consisting exclusively of the sale of tangible personal property is deemed to have occurred at the retail outlet at, or where, delivery is made to the consumer
- A retail sale consisting of the performance of personal, business, or professional services is deemed to have occurred at the place where such services are primarily performed
- A retail sale consisting of the rental of tangible personal property is deemed to have occurred (1) in the case of a rental involving periodic payments, at the place of primary use by the lessee during the period covered by each payment, or (2) in all other cases, at the place first used by the lessee
- A retail sale of taxable personal property to be installed by the seller is deemed to have occurred at the place where the labor and services involved will be performed
- A retail sale consisting of an extended warranty is deemed to have occurred at the business location of the seller if the extended warranty is received by the purchaser at that location. If an extended warranty is not received by the purchaser at the seller’s business location, a retail sale of an extended warranty is deemed to have occurred where the buyer receives their property.