|
New tax laws may change the
way you do business
By Rep. Dan
Kristiansen
Special to chambers of commerce
Hundreds of new laws
passed during the 2009 legislative session are now taking effect,
including three major tax collection bills that the state Department of
Revenue (DOR) says may impact the way you do business.
Senate Bill 5571 implements a new E-file/E-pay system. Starting with
the July 2009 excise tax return (due Aug. 25), businesses that report
their taxes on a monthly basis will now be required to file and pay
their taxes electronically. Once businesses are set up to electronically
file their taxes, they will no longer receive paper tax returns, tax
rate flyers or other publications by mail. Instead, they can sign up to
receive that information via e-mail.
Electronic filing is a
quicker process, generally with fewer errors. By going to this new
system, it's expected to save the state about $2.5 million every
biennium in paper, postage and labor charges.
After Aug. 25, businesses
filing a paper return and paying by check or cash may be subject to
penalties if payments are not received in a timely manner. However, the
Department of Revenue assures me it will be flexible during the
transition and will try to assist businesses through this change.
Businesses that do not have
computers or Internet access may request a waiver from electronic
reporting and payment by writing to:
Electronic Filing and
Payment Team
Department of Revenue
P.O. Box 47476
Olympia, WA 98504-7476
House Bill 2075 requires sales and use taxes to be collected on
digital products, including downloaded music, streaming video, online
video games and legal research tools. I voted against this measure
because it is essentially a tax increase on these intangible products
that have not been taxed in the past. Nevertheless, the bill took effect
July 26.
Specifically, this new
law:
-
defines digital
products as goods and services transferred electronically;
-
includes certain
exemptions for businesses and end consumers;
-
requires sellers of
digital products to electronically file their tax returns; and
-
provides amnesty to
those who didn't collect or pay sales tax on digital products that
were taxed before July 26.
Questions about this new
law may be sent to
DigitalProducts@dor.wa.gov.
Senate Bill 6173 requires businesses that make wholesale purchases
for resale to use a DOR-issued seller's permit after Jan. 1, 2010. This
also includes qualified custom construction contractors. The seller's
permit replaces the "resale certificate." The new permit allows
businesses to purchase items and services for resale without paying
retail sales tax. State law requires only the final customer to pay
sales tax.
The measure addresses a
concern by DOR that some businesses are not reselling items on which
they deferred paying sales taxes and are instead using the items
themselves, with no one paying the sales tax. That problem is estimated
to cost local and state governments about $100 million annually in
unpaid sales tax revenue.
DOR says businesses will
be notified Sept. 1 if they are getting a permit. Permits will be mailed
in December.
For more information on
these and other new tax laws, go to the Department of Revenue's Web site
at: www.dor.wa.gov.
# # #
EDITOR'S NOTE:
State Rep. Dan Kristiansen, R-Snohomish,
represents the 39th Legislative District, and also serves as chairman of
the Washington House Republican Caucus. He can be contacted at (360)
786-7967 or from his Web site at:
www.houserepublicans.wa.gov/Kristiansen.
For more information, contact:
John
Sattgast, Senior Information Officer: (360) 786-7257
|