Taxpayer's Antique Cars Subject to Use Tax in Washington

Monday, April 7th, 2014

 
 
Share
Link
Washington
General

The Washington Department of Revenue recently released a determination that a taxpayer's use of antique cars was subject to tax.

The taxpayer purchased two antique cars. Both cars were delivered to the taxpayer in Washington. The taxpayer had the first car inspected and serviced in Washington. He then displayed the car at events both inside and outside Washington. The taxpayer had the second car inspected and repaired in Washington and then shipped it out of Washington. The taxpayer later traded the second car to someone outside Washington.

Washington use tax applies to the use of tangible personal property in Washington. "Use" is an act by which a taxpayer takes or assumes dominion or control over the property.

The Department of Revenue decided that the taxpayer used the cars in Washington before sending them out of state. The taxpayer exercised dominion and control over the cars by having them inspected and serviced in Washington. It did not matter that the taxpayer likely did not drive the cars in Washington. Any act of dominion or control over property was enough to create use tax liability.

http://dor.wa.gov/Docs/Rules/wtd/2014/33_WTD_40.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...