Tax paid on carbonated beverage syrup

From the 2024 DOR Tax Exemption Study

Det. No. 13-0050, 34 WTD 443 (October 30, 2015) 445 The syrup tax assessment4 also included the disallowed syrup tax exemptions Taxpayer took, under RCW 82.64.030(2), for wholesaling sales to businesses where the syrup was allegedly used outside Washington. Audit disallowed the syrup tax exemptions because Taxpayer did not produce a Certificate of Tax Exempt Export Carbonated Beverage Syrup, or another certificate with substantially the same information required under RCW 82.64.030(2) and Rule 255. When the appeal was pending, Taxpayer produced copies of Certificates of Tax Exempt Export Carbonated Beverage Syrup issued by the buyers.5 Only the certificate issued by [Customer A] contained the type and volume of the syrup Taxpayer’s customers purchased. The “Syrup Purchased” portions of the other certificates were left incomplete.6 With respect to the wholesaling B&O tax,7 Taxpayer enters into agreements with its customers, under which Taxpayer agrees to pay its customers incentives to purchase its products. There are two types of incentives, one is labeled as a “funding.” Taxpayer provided a copy of the agreement named [Customer Agreement] that it entered with [Customer B] as an ex