Timely Articles and Information Related to Laws

Seller’s Permit Replaces Resale Certificate
During the last legislative session, the Washington State Legislature passed a law (Senate Bill 6173) that replaces the resale certificate with a seller’s permit issued by the Department of Revenue. The intent of this legislation is to improve sales tax compliance.

Effective January 1, 2010, resale certificates will be replaced with seller’s permits, which will be issued by the Department of Revenue only to businesses that make wholesale purchases, to include qualified contractors. Businesses that do not make wholesale purchases will not be entitled to a seller’s permit.

The seller’s permit will allow businesses to purchase items or services that are for resale or wholesale without payment of retail sales tax. Buyers that do not have a valid, Department issued seller’s permit will have to pay retail sales tax on their purchases.

Under the provisions of the bill, the Department has the authority to issue seller’s permits to businesses it determines are entitled to make purchases for resale or wholesale. Businesses that don’t automatically receive a seller’s permit from the Department will need to apply for one. The bill has provisions for the Department to deny or revoke seller’s permits.

The seller’s permit will have an expiration date and will need to be renewed.

• Permits issued, renewed or reinstated will be valid for four years from the date of issuance.
• Permits issued to taxpayers who register with the Department after 1/1/09 are valid for 24 months, but then can be renewed for four years.
• Permits issued to contractors will be valid for 12 months.

For more information about this issue, please visit dor.wa.gov/sellerspermit. Please contact me if you have any questions. Rob Rice Assistant Director, Taxpayer Services
(360) 705-6600
robertr@dor.wa.gov

New Form I-9 Effective April 3, 2009
Starting April 3, 2009, employers must use the new version of the Department of Homeland Security's Form I-9, Employment Eligibility Verification (Rev. 02/02/09). The Department of Homeland Security also has issued a revised Handbook for Employers to be used with the new Form I-9.
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