13-03-025

WSR 13-03-025

INTERPRETIVE STATEMENT

DEPARTMENT OF REVENUE

[ Filed January 7, 2013, 4:23 p.m. ]

INTERPRETIVE STATEMENT ISSUED

     The department of revenue has issued the following excise tax advisory (ETA):

ETA 3173 Distributor Discounts/Allowances to Grocery Stores

     WAC 458-20-108 explains that a bona fide discount may be deducted from gross proceeds of sales for determining tax liability. The department has issued ETA 3173 to clarify for taxpayers whether a discount is a bona fide discount. The department's long standing position has been that a discount is bona fide if it is not in exchange for a service or benefit. The department has also issued ETA 3173 to provide examples of the types of documentation and activities that would qualify as bona fide discounts.

     A copy of this document is available via the internet at Recent Rule and Interpretive Statements, Adoptions, and Repeals.

Alan R. Lynn

Rules Coordinator