SB 5063 — Clarifying the taxation of pet adoption fees.

S-1190.1SUBSTITUTES-0033.2SENATE SENATE BILL 5063State of Washington65th Legislature2017 Regular SessionBy Senate Ways & Means (originally sponsored by Senators Fain and Palumbo)READPalumboRead FIRSTfirst TIMEtime 02/10/17.AN01/11/17. ACT Relating to clarifying the taxation of pet adoption fees;

Referred to Committee on Ways & Means.AN ACT Relating to clarifying the taxation of pet adoption fees;

The definition in this subsection (3) ((shall))shall must be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the United States internal revenue code, Washington state's commercial code, or other provisions of federal, state, or local law.(b) "Lease or rental" does not include:(i) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;(ii) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments, and payment of an option price does not exceed the greater of one hundred dollars or one percent of the total required payments;

For the purpose of this subsection (3)(b)(iii), an operator must do more than maintain, inspect, or set up the tangible personal property.(4)(a) "Adoption fee" means an amount charged by an animal rescue organization to adopt an animal, except that "adoption fee" does not include any separately itemized charge for any incidental inanimate items provided to persons adopting an animal, including food, identification tags, collars, and leashes.(b) "Animal care and control agency" means the same as in RCW 16.52.011 and also includes any similar entity operating outside of this state.(c) "Animal rescue group" means a nonprofitgroup organization that:(i)(A) Is exempt from federal income taxation under Title 26 U.S.C.

or born in the care of such nonprofitanimal organizationrescue group other than through intentional breeding by the nonprofitanimal organization.(d)rescue group.(d) "Animal rescue organization" means an animal care and control agency or an animal rescue group.Sec. 2.  RCW 82.04.190 and 2015 c 169 s 3 are each amended to read as follows:"Consumer" means the following:(1) Except as provided otherwise in this section, any person who purchases, acquires, owns, holds, or uses any article of tangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than for the purpose of:(a) Resale as tangible personal property in the regular course of business;(b) Incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers;(c) Consuming such property in producing for sale as a new article of tangible personal property or a new substance, of which such property becomes an ingredient or component or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale;(d) Consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon;

and(b) Any person with respect to an animal adopted by that person from an animal rescue organization.NEW SECTION.  Sec. 3.  Sections 1201 and 2202 of this act apply both prospectively and retroactively to July 1, 2015.NEW2016.NEW SECTION.  Sec. 4.  TheSECTION.  Sec. 4.  RCW provisions of RCW 82.32.805 and 82.32.808 do not apply to any provisions of this act.--- END ---