Director's Rule 5-131
Trade-ins, selling price, sellers' tax measures
Trade-ins, selling price, sellers' tax measures.
1. Business license tax.
(a) No deduction is allowed from the selling price or gross proceeds of sales for trade-ins.
(b) The term "Selling price" means the consideration, whether money, credits, rights, or other property expressed in the terms of money paid or delivered by a buyer to a seller without any deduction on account of the cost of tangible personal property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes other than sales tax imposed by the State of Washington if the seller advertises the price as including the sales tax or that the seller is paying the sales tax (see rule 5-130), or any other expenses whatsoever paid or accrued and without any deduction on account of losses.
(c) When tangible personal property is rented or leased, the "selling price" includes all charges to the renter or lessee for the use of the property rented or leased, including charges designated as insurance, interest and other costs recovered and stated separately from the regular rental or lease fee. When tangible personal property is rented or leased under circumstances that the consideration paid does not represent a reasonable rental for the use of the articles so rented or leased, the "selling price" must be determined as nearly as possible according to the value of such use at the places of use of similar products of like quality and character. In cases of doubt, all of the pertinent facts should be submitted to the department for an advisory determination.
Effective July 15, 2005
DIRECTOR'S CERTIFICATION
I, Kenneth J. Nakatsu, Director of the Department of Executive Administration of the City of Seattle, do hereby certify under penalty of perjury of law, that the within and foregoing is a true and correct copy as adopted by the City of Seattle, Department of Executive Administration.