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WACs > Title 458 > Chapter 458-20 > Section 458-20-202
458-20-201
458-20-203
No agency filings affecting this section since 2003
WAC 458-20-202
Pool purchases.
The term "pool purchase" means the joint purchase by two or more persons, engaging in independent business activities, of commodities in carload or truck load quantities for the purpose of obtaining a purchase price or freight rate which is less than when purchased or delivered in smaller quantities.
The term "principal member" means that member of the pool to whom the goods are charged by the vendor of the commodities purchased.
In computing tax liability of the principal member under chapter 82.04 RCW, there may be deducted from gross proceeds of sales the amount received by him from other members of the pool of their proportionate share of the cost thereof of the commodities purchased.
This deduction is allowed only when all of the following conditions are met:
(1) The amount received is included in gross proceeds of sales.
(2) The pool purchase agreement was entered into prior to the time of placing the order for the commodities purchased.
(3) The pool purchase agreement provides that each member shall accept a specific portion of the shipment.
(4) Division of the shipment is made prior to warehousing of the commodities by a member of the pool.
In no event will a "pool purchase" deduction be allowed when an agreement relative to the amount of the share to be distributed to any member is made after the date of the purchase order, or where one member of a pool pays an amount for his portion in excess of the proportionate amount paid by another member.
Revised June 1, 1970.
[Order ET 70-3, § 458-20-202 (Rule 202), filed 5/29/70, effective 7/1/70.]
