§ 82.12.037. Credits and refunds -- Bad debts
(1) A seller is entitled to a credit or refund for use taxes previously paid on bad debts, as that term is used in 26 U.S.C. Sec. 166, as amended or renumbered as of January 1, 2003.
(2) For purposes of this section, "bad debts" does not include:
(a) Amounts due on property that remains in the possession of the seller until the full purchase price is paid;
(b) Expenses incurred in attempting to collect debt; and
(c) Repossessed property.
(3) If a credit or refund of use tax is taken for a bad debt and the debt is subsequently collected in whole or in part, the tax on the amount collected must be paid and reported on the return filed for the period in which the collection is made.
(4) Payments on a previously claimed bad debt are applied first proportionally to the taxable price of the property or service and the sales or use tax thereon, and secondly to interest, service charges, and any other charges.
(5) If the seller uses a certified service provider as defined in RCW 82.32.020 to administer its use tax responsibilities, the certified service provider may claim, on behalf of the seller, the credit or refund allowed by this section. The certified service provider must credit or refund the full amount received to the seller.
(6) The department shall allow an allocation of bad debts among member states to the streamlined sales and use tax agreement, as defined in RCW 82.58.010(1), if the books and records of the person claiming bad debts support the allocation.
[2007 c 6 § 103; 2004 c 153 § 304; 1982 1st ex.s. c 35 § 36.]
Notes:
Part headings not law -- Savings -- Effective date -- Severability -- 2007 c 6: See notes following RCW 82.32.020.
Findings -- Intent -- 2007 c 6: See note following RCW 82.14.495.
Bad debts -- Intent -- 2004 c 153: See note following RCW 82.08.037.
Retroactive effective date -- Effective date -- 2004 c 153: See note following RCW 82.08.0293.
Severability -- Effective dates -- 1982 1st ex.s. c 35: See notes following RCW 82.08.020.
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Last modified: April 7, 2009