Successive uses of hazardous substance

From the 2024 DOR Tax Exemption Study

Det. No.14-0247, 34 WTD 109 (February 26, 2015) 112 Rule 252 places the responsibility upon the purchaser giving the certificate to assume liability for payment of any hazardous substances taxes remaining on fuel not subject to the fuel-in-tank credit. Rule 252(5)(b)(vi). The purchaser must keep the records necessary to determine the amount of tax for which the purchaser may become liable. Rule 252(5)(b)(viii). In accordance with these provisions, a taxpayer assumes the liability for the HST and PPL that was originally the obligation of the refiners in Washington on fuel not subject to the credit. In addition, an air carrier is liable for the HST and PPL due on fuel purchased outside Washington that it brought into Washington and consumed here. Det. No. 97-17, 16 WTD 211 (1997). Taxpayer argued it did not owe tax on the fuel it purchased in Washington because the vendor was the first possessor. Taxpayer is correct in that Rule 252 provides that any successive possessions of any previously taxed hazardous substances are exempt from HST and PPT. For tax-exempt treatment a purchaser must provide documentation. Evidence of previously taxed products may be in the form of certificates ta