Sales, Use and International Tax Activity Update - July 2010

Washington Takes Tax to the Cleaners…Literally

The Washington Department of Revenue has amended the sales and use tax rule on laundry, dry-cleaning, and linen supply services to reflect previously enacted legislation.

The rule states that as of January 1, 2010, the reseller permit has replaced the resale certificate for the purpose of documenting wholesale purchases. Furthermore, the rule reflects the fact that sales tax is based on the location where the cleaned items are received by the buyer as opposed to the place where the laundering or dry cleaning is performed.

If the provider of the laundering or dry-cleaning service uses an agent to pick up and deliver the items to be cleaned, the sales tax is based on where the items are delivered.

Washington Administrative Code 458-20-165, Washington Department of Revenue, effective June 26, 2010.

The Washington Administrative Code 458-20-165 can be viewed on the Washington Department of Revenue Web site.

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address