# WAC 458-20-106: WAC 458-20-106. Casual or isolated sales—Business reorganizations > Washington · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_106 ## Section - **Citation:** WAC 458-20-106 - **Heading:** WAC 458-20-106. Casual or isolated sales—Business reorganizations - **Jurisdiction:** Washington - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Washington Administrative Code / Title 458 / Chapter 458-20 / Section 458-20-106 ## Text A casual or isolated sale is defined by RCW 82.04.040 as a sale made by a person who is not engaged in the business of selling the type of property involved. Any sales which are routine and continuous must be considered to be an integral part of the business operation and are not casual or isolated sales. Furthermore, persons who hold themselves out to the public as making sales at retail or wholesale are deemed to be engaged in the business of selling, and sales made by them of the type of property which they hold themselves out as selling, are not casual or isolated sales even though such sales are not made frequently. In addition the sale at retail by a manufacturer or wholesaler of an article of merchandise manufactured or wholesaled by him is not a casual or isolated sale, even though he may make but one such retail sale. Business and Occupation Tax The business and occupation tax does not apply to casual or isolated sales. Retail Sales Tax The retail sales tax applies to all casual or isolated retail sales made by a person who is engaged in the business activity; that is, a person required to be registered under WAC 458-20-101 . Persons not engaged in any business activity, that is, persons not required to be registered under WAC 458-20-101 , are not required to collect the retail sales tax upon casual or isolated sales. However, persons in business as selling agents who are authorized, engaged or employed to sell or call for bids on tangible personal property belonging to another, and so selling or calling, are deemed to be sellers, and shall collect the retail sales tax upon all retail sales made by them. The tax applies to all such sales even though the sales would have been casual or isolated sales if made directly by the owner of the property sold. A transfer of capital assets to or by a business is deemed not taxable to the extent the transfer is accomplished through an adjustment of the beneficial interest in the business. The following examples are instances when the tax will not apply. them. The tax applies to all such sales even though the sales would have been casual or isolated sales if made directly by the owner of the property sold. A transfer of capital assets to or by a business is deemed not taxable to the extent the transfer is accomplished through an adjustment of the beneficial interest in the business. The following examples are instances when the tax will not apply. (1) Transfers of capital assets between a corporation and a wholly-owned subsidiary, or between wholly-owned subsidiaries of the same corporation. (2) Transfers of capital assets by an individual or by a partnership to a corporation, or by a corporation to another corporation in exchange for capital stock therein. (3) Transfers of capital assets by a corporation to its stockholders in exchange for surrender of capital stock. (4) Transfers of capital assets pursuant to a reorganization under 26 U.S.C Section 368 of the Internal Revenue Code, when capital gain or ordinary income is not realized. (5) Transfers of capital assets to a partnership or joint venture in exchange for an interest in the partnership or joint venture; or by a partnership or joint venture to its members in exchange for a proportional reduction of the transferee's interest in the partnership or joint venture. (6) Transfer of an interest in a partnership by one partner to another; and transfers of interests in a partnership to third parties, when one or more of the original partners continues as a partner, or owner. The burden is upon the taxpayer to establish the facts concerning the adjustment of the beneficial interest in the business when exemption is claimed. Use Tax The use tax applies upon the use of any property purchased at a casual retail sale without payment of the retail sales tax, unless exempt by law. Uses which are exempt from the use tax are set out in RCW 82.12.030 es as a partner, or owner. The burden is upon the taxpayer to establish the facts concerning the adjustment of the beneficial interest in the business when exemption is claimed. Use Tax The use tax applies upon the use of any property purchased at a casual retail sale without payment of the retail sales tax, unless exempt by law. Uses which are exempt from the use tax are set out in RCW 82.12.030 . Where there has been a transfer of the capital assets to or by a business, the use of such property is not deemed taxable to the extent the transfer was accomplished through an adjustment of the beneficial interest in the business, provided, the transferor previously paid sales or use tax on the property transferred. (See the exempt situations listed under the retail sales tax subdivision of this rule.) ## Nearby sections - [WAC 458-20-100 WAC 458-20-100. Informal administrative reviews](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_100.md) - [WAC 458-20-101 WAC 458-20-101. Tax registration and tax reporting](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_101.md) - [WAC 458-20-102 WAC 458-20-102. Reseller permits](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_102.md) - [WAC 458-20-102A WAC 458-20-102A. Resale certificates](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_102A.md) - [WAC 458-20-103 WAC 458-20-103. Gift certificates — Sale deemed to occur and retail sales tax collected at time of redemption](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_103.md) - [WAC 458-20-104 WAC 458-20-104. Small business tax relief based on income of business](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_104.md) - [WAC 458-20-105 WAC 458-20-105. Employees distinguished from persons engaging in and operating a business](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_105.md) - [WAC 458-20-106 WAC 458-20-106. Casual or isolated sales—Business reorganizations](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_106.md) - [WAC 458-20-107 WAC 458-20-107. Requirement to separately state sales tax—Advertised prices including sales tax](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_107.md) - [WAC 458-20-108 WAC 458-20-108. Selling price — Credit card service fees, foreign currency, discounts, patronage dividends](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_108.md) - [WAC 458-20-109 WAC 458-20-109. Finance charges, carrying charges, interest, penalties](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_109.md) - [WAC 458-20-110 WAC 458-20-110. Delivery charges](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_110.md) - [WAC 458-20-111 WAC 458-20-111. Advances and reimbursements](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_111.md) - [WAC 458-20-112 WAC 458-20-112. Value of products](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_112.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_458_20_106. Check the current official text before relying on it. Not legal advice.