SALT Report 2830 – The Washington Department of Revenue issued guidance regarding the exemption for clay targets purchased by nonprofit gun clubs as provided in Senate Bill 5882, Laws 2013. The legislation states that purchases of clay targets by nonprofit gun clubs will be exempt from sales and use tax from October 1, 2013, through July 1, 2017.
The exemption applies if:
- The clay targets are purchased by a nonprofit gun club
- A fee is charged by the nonprofit gun club to participate in clay target shooting activities, and
- The nonprofit gun club provides their vendor with a Buyer’s Retail Sales Tax Exemption Certificate at the time of purchase
All sellers making these tax-exempt sales are required to:
- Obtain a Buyer’s Retail Sales Tax Exemption Certificate from the purchaser
- Report their total gross sales on their tax return and deduct their exempt clay target sales from their reported gross sales
- Keep a copy of the exemption certificate in their business records for five years after the date of the exempt sale
Although the gross proceeds from these purchases are exempt from sales tax, they will remain subject to the retailing B&O tax, as there is no business and occupation (B&O) exemption available.
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