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AWB Victorious In M&E Ruling |
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Written On: December 9, 2002 |
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Written By: Richard Davis |
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OLYMPIA---The Association of Washington Business recently challenged three Dept. of Revenue (DOR) rules and the effect they have on taxpayers who choose not to follow them.
AWB was victorious in the court case pertaining to the Manufacturing Machinery and Equipment Sales Tax Exemption (M&E) rule, WAC 458-20-136-01, a rule regarding sales tax on watercraft to non-residents, WAC 458-20-238, and a third rule containing the DOR’s definition of "manufacturing,” WAC 458-20-136.(“the Rules”).
According to the Judgment signed by Judge Gary R. Tabor, Thurston County Superior Court, “The public has been misled by prelitigation, Department of Revenue actions to believe the Rules have the force of law.” “The Rules are for nonbinding informational purposes only. The Rules do not have the force of law.”
The final Judgment declared the Rules invalid.
"It's a huge victory for AWB," said AWB's Tom Dooley. "AWB led the effort to pass the manufacturing sales tax exemption in 1995. Since then, AWB has worked to make sure AWB members receive the full benefit of the law."
“I am pleased that the Court held that ‘the Dept. of Revenue lacks authority to adopt rules that are for nonbinding informational purposes if the rules do not expressly inform the public of their nonbinding nature and purpose’.” said Frank Dinces, the attorney representing AWB.
The Department has until late December to appeal the Superior Court’s Judgment.
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