[LIBRARYDIR] Sales Tax exemption for databases
Ferrari, Ahniwa
ferraria at evergreen.edu
Thu May 23 08:13:16 PDT 2019
Here is the ruling we received -
RE: The Evergreen State College -- 600004331
Dear Ahniwa Ferrari:
Thank you for your email message dated February 21, 2018, regarding sales tax exclusion for digital goods and digital automated services (DAS). You wrote:
I am asking as the Associate Dean of Library Operations at The Evergreen State College. Our main activity is providing resources to support teaching and learning at TESC. Many of these resources include digital products, including annual database subscriptions.
This is more of a general question / request for clarification. To what extent do we need to provide "public" access to our library databases (digital products) in order to qualify for the tax exemption on those products? As a higher ed institution is it enough that our students get "free" access or do we need to provide access to non-students (the general public) who visit us as well?
If we do need to provide access to the general public, then what guidelines should we follow? Is it enough to provide access on a case-by-case basis when people request it. Do we need to provide a terminal with regular public access without requiring our intercession?
Response:
The Department has determined that when a school purchases digital products that they make available free to their students as part of the school's curriculum, that is considered being made free to the general public and qualifies for the sales tax exemption. There is no requirement that the school makes the digital products available to non-students.
If you have further questions, please write again.
This ruling is binding<http://apps.leg.wa.gov/wac/default.aspx?cite=458-20-100>. If you disagree with this ruling, you have the right to an administrative review<http://dor.wa.gov/content/fileandpaytaxes/reviewsandappeals/>.
Sincerely,
Keri O'Connell
Tax Information Specialist | Washington State Department of Revenue | Rulings at dor.wa.gov<mailto:Rulings at dor.wa.gov>
Ahniwa D. Ferrari (he/him)
Associate Dean of Library Operations
The Evergreen State College | 2700 Evergreen Parkway NW | Olympia, WA 98505
ferraria at evergreen.edu<mailto:ferraria at evergreen.edu> | p. 360-867-6288 | f. 360-867-6790
From: LIBRARYDIR <librarydir-bounces at lists.ctc.edu> On Behalf Of Tammy Siebenberg via LIBRARYDIR
Sent: Wednesday, May 22, 2019 5:12 PM
To: 'Buschman, Mike' <mike.buschman at sos.wa.gov>; WACTC Library Directors <librarydir at lists.ctc.edu>
Cc: Tammy Siebenberg <tsiebenberg at yvcc.edu>
Subject: Re: [LIBRARYDIR] Sales Tax exemption for databases
Mike,
Thank you. This information is very helpful. And welcome to our community.
I read the information on the page you linked to and have one more question. Because library staff are also authorized library patrons, would software used by staff to run a library but that is not available to the general patron fall within the exemption?
Tammy
Tammy R. Siebenberg, MLIS
Director - Library & Media Services
Yakima Valley College
509.574.4984
tsiebenberg at yvcc.edu<mailto:tsiebenberg at yvcc.edu>
yvcc.edu<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fyvcc.edu%2F&data=02%7C01%7Cferraria%40evergreen.edu%7C691742094b8346882a4808d6df135bf9%7C22adcff7c06f49a68f2050711c40ddaa%7C0%7C0%7C636941671583266222&sdata=bUVnmyDG2sKrjmJDoPneurdVcpl2ZqZxqKcsZXvklRc%3D&reserved=0>
From: Buschman, Mike <mike.buschman at sos.wa.gov<mailto:mike.buschman at sos.wa.gov>>
Sent: Wednesday, May 22, 2019 4:45 PM
To: WACTC Library Directors <librarydir at lists.ctc.edu<mailto:librarydir at lists.ctc.edu>>
Cc: Tammy Siebenberg <tsiebenberg at yvcc.edu<mailto:tsiebenberg at yvcc.edu>>
Subject: RE: Sales Tax exemption for databases
There is a Sales Tax Information page<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sos.wa.gov%2Flibrary%2Flibraries%2Fprojects%2Fsdl%2Fhistory.aspx&data=02%7C01%7Cferraria%40evergreen.edu%7C691742094b8346882a4808d6df135bf9%7C22adcff7c06f49a68f2050711c40ddaa%7C0%7C0%7C636941671583276213&sdata=HSo4Uf%2FhmuMP4pH7wWIglrZIab7%2FjpUaC8FTmraENXM%3D&reserved=0> on the Washington State Library site that includes this block:
The newer legislation passed in 2010 changes the language of the exemption. Where the original legislation provided an exemption for "digital products or remote access software that will be made available free of charge for the use or enjoyment of others" the new legislation replaces the word "others" with the term "general public." The term "general public" is then defined as follows:
3) For purposes of this section, "general public," means all persons and not limited or restricted to a particular class of persons, except that the general public includes:
(a) A class of persons that is defined as all persons residing or owning property within the boundaries of a state, political subdivision of a state, or a municipal corporation; and
(b) With respect to libraries, authorized library patrons.
Mike
MIKE BUSCHMAN | LSTA Coordinator, Library Development
Washington State Library | Office of the Secretary of State
6880 Capitol Blvd SE, Tumwater, Washington
w: 360-704-5248 | m: 360-890-6924 | f: 360-586-7575
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~connecting Washington through the power of libraries~
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From: LIBRARYDIR [mailto:librarydir-bounces at lists.ctc.edu] On Behalf Of Tammy Siebenberg via LIBRARYDIR
Sent: Wednesday, May 22, 2019 3:38 PM
To: WACTC Library Directors <librarydir at lists.ctc.edu<mailto:librarydir at lists.ctc.edu>>
Cc: Tammy Siebenberg <tsiebenberg at yvcc.edu<mailto:tsiebenberg at yvcc.edu>>
Subject: Re: [LIBRARYDIR] Sales Tax exemption for databases
Ahniwa,
Is it possible to get a copy of the ruling you mention? We have one computer open to the walk-in public so that is how we have justified "public" access. The ruling you talk about would enable me to justify databases that are only available to a portion of our students and not on the public computer.
Tammy
Tammy R. Siebenberg, MLIS
Director - Library & Media Services
Yakima Valley College
509.574.4984
tsiebenberg at yvcc.edu<mailto:tsiebenberg at yvcc.edu>
yvcc.edu<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fyvcc.edu%2F&data=02%7C01%7Cferraria%40evergreen.edu%7C691742094b8346882a4808d6df135bf9%7C22adcff7c06f49a68f2050711c40ddaa%7C0%7C0%7C636941671583296205&sdata=SZNbIwR%2FwDuPIDh1joEa59xjBM9pS28Zzig3fjpJEmc%3D&reserved=0>
From: LIBRARYDIR <librarydir-bounces at lists.ctc.edu<mailto:librarydir-bounces at lists.ctc.edu>> On Behalf Of Mindy Coslor via LIBRARYDIR
Sent: Wednesday, May 22, 2019 11:35 AM
To: Ferrari, Ahniwa <ferraria at evergreen.edu<mailto:ferraria at evergreen.edu>>; WACTC Library Directors <librarydir at lists.ctc.edu<mailto:librarydir at lists.ctc.edu>>
Cc: Mindy Coslor <Mindy.Coslor at skagit.edu<mailto:Mindy.Coslor at skagit.edu>>
Subject: Re: [LIBRARYDIR] Sales Tax exemption for databases
Thanks. Good to know.
Mindy Coslor, PhD
Director of Library Services
Skagit Valley College
2405 E College Way
Mount Vernon, WA 98273
360.416.7761
From: Ferrari, Ahniwa <ferraria at evergreen.edu<mailto:ferraria at evergreen.edu>>
Sent: Wednesday, May 22, 2019 10:37 AM
To: WACTC Library Directors <librarydir at lists.ctc.edu<mailto:librarydir at lists.ctc.edu>>
Cc: Mindy Coslor <Mindy.Coslor at skagit.edu<mailto:Mindy.Coslor at skagit.edu>>
Subject: RE: Sales Tax exemption for databases
And FWIW I got a ruling at one point that our students count as "general public." Checking this box doesn't imply that we need to make these databases available to just anyone who walks through our doors that isn't associated with our schools.
Ahniwa D. Ferrari (he/him)
Associate Dean of Library Operations
The Evergreen State College | 2700 Evergreen Parkway NW | Olympia, WA 98505
ferraria at evergreen.edu<mailto:ferraria at evergreen.edu> | p. 360-867-6288 | f. 360-867-6790
From: LIBRARYDIR <librarydir-bounces at lists.ctc.edu<mailto:librarydir-bounces at lists.ctc.edu>> On Behalf Of Mindy Coslor via LIBRARYDIR
Sent: Tuesday, May 21, 2019 1:05 PM
To: WACTC Library Directors <librarydir at lists.ctc.edu<mailto:librarydir at lists.ctc.edu>>
Cc: Mindy Coslor <Mindy.Coslor at skagit.edu<mailto:Mindy.Coslor at skagit.edu>>
Subject: Re: [LIBRARYDIR] Sales Tax exemption for databases
P.S. check the first exemption.
Mindy Coslor, PhD
Director of Library Services
Skagit Valley College
2405 E College Way
Mount Vernon, WA 98273
360.416.7761
From: LIBRARYDIR <librarydir-bounces at lists.ctc.edu<mailto:librarydir-bounces at lists.ctc.edu>> On Behalf Of Mindy Coslor via LIBRARYDIR
Sent: Tuesday, May 21, 2019 1:03 PM
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Cc: Mindy Coslor <Mindy.Coslor at skagit.edu<mailto:Mindy.Coslor at skagit.edu>>
Subject: Re: [LIBRARYDIR] Sales Tax exemption for databases
I send them all the time. It is just routine. Here is a blank form.
Mindy Coslor, PhD
Director of Library Services
Skagit Valley College
2405 E College Way
Mount Vernon, WA 98273
360.416.7761
From: LIBRARYDIR <librarydir-bounces at lists.ctc.edu<mailto:librarydir-bounces at lists.ctc.edu>> On Behalf Of Jacquelyn Ray via LIBRARYDIR
Sent: Tuesday, May 21, 2019 11:55 AM
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Cc: Jacquelyn Ray <jacquelyn.ray at wwcc.edu<mailto:jacquelyn.ray at wwcc.edu>>
Subject: [LIBRARYDIR] Sales Tax exemption for databases
Hi all~
I have two database companies asking for tax exemption documentation and it seems we don't pay sales tax on most of our databases but have not completed a form in the past for these other vendors. (Which has made me realize that I've primarily worked in two of the five states w/o a sales tax! :)
Have any of you experienced this and know the form that I should (if any) use? I'm reviewing a couple of documents from the Department of Revenue: "Digital Products and Remote Access Software Exemption Certificate" and none of the exemptions seem to precisely apply but I am also reviewing a Special Notice indicating "Online Searchable Databases are Digital Automated Services" which makes this seem applicable.
Sorry for the tedious question but I was thinking this group might have the quick/easy answer.
Thank you!
Jackie
Jacquelyn Ray, MLIS, MA|Library Director<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.wwcc.edu%2Flibrary&data=02%7C01%7Cferraria%40evergreen.edu%7C691742094b8346882a4808d6df135bf9%7C22adcff7c06f49a68f2050711c40ddaa%7C0%7C0%7C636941671583306202&sdata=S%2FBAcwbJpxXsqxTYxUdCYHO7cKoWB65pSYor2mbcZ0I%3D&reserved=0>
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