Washington: October Brings Tax Free Financial Information
- Sep 23, 2013 | Gail Cole
Update, 7.16.14: Washington Administrative Code § 458-20-15503 has been updated to reflect the exemption for electronically delivered financial information described below. The exemption is set to expire on July 1, 2021.
In 2007, Washington State lawmakers created a sales tax exemption for electronically delivered standard financial information, provided the sales were to an investment management company or financial institution. However, that sales tax exemption for standard financial information was later eliminated because it was believed the exemption was provided for elsewhere. New legislation reinstates the sales tax exemption, effective October 1, 2013.
The sales and use tax exemption outlined in Part VII of ESSB 5882 applies to:
- Sales of certain standard financial information purchased by international investment management companies. The exemption is expected to have minimal impact on state revenue; it will be reevaluated in three years, "to ensure that actual fiscal impact on state revenues reasonably conforms with the fiscal estimate in the fiscal note for this legislation."
- Sales of standard financial information to qualifying international investment management companies, no matter how the information is transferred. This exemption is set to expire on July 1, 2021 (Sec. 702).
- Use of standard financial information by qualifying international investment management companies, no matter how the information is stored or transmitted. This exemption is set to expire on July 1, 2021 (Sec. 703).
Read the full text of Engrossed Substitute Senate Bill 5882 here.
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