Washington – Digital Products Rules Adopted

3/1/2013

SALT Report 2204 – The Washington Department of Revenue amended, adopted and repealed the following rules regarding digital products, computer software, and computer hardware which will go into effect on March 28, 2013.

WAC 458-20-15501 – Rule 15501 Taxation of computer systems & hardware – Amended

WAC 458-20-15502 – Rule 15502 Taxation of computer software

WAC 458-20-15503 – Rule 15503 Digital products

WAC 458-20-155 – Rule 155 Information & computer services – Repealed

The Department adopted these rules to clarify language in ESHB 2075 and SHB 2620 and to address tax issues related to computer hardware, computer software, and digital products.

ESHB 2075 – Chapter 535, Laws of 2009, made major changes regarding the taxability of products and services provided electronically. This legislation imposed sales and use tax on digital products such as: digital goods, including digital audio works, digital audio-visual works, and digital books; digital automated services; digital codes used to obtain digital goods or digital automated services; and remote-access software. The legislation also created several sales and use tax exemptions.

SHB 2620 – Chapter 111, Laws of 2010 this legislation clarifies certain inconsistencies and corrected unintended consequences that arose due to the 2009 legislation.

For Further Information

Washington Department of Revenue – Rule Making Agenda

Digital Products Guide

Rule Making Order