Washington sales tax on services

Another unique feature is that motor vehicle sales and the first 36 months of a motor vehicle lease are exempt from this portion of the sales tax. Any county may impose a 1. This tax does not require voter approval. The proceeds may may be used for eligible public sports stadium facilities and youth or amateur sports but may not be used to subsidize any professional sports team. King County RCW Transit agencies only. Public transit agencies may impose a sales tax up to 0.

This tax is typically imposed by public transportation benefit areas PTBAs and other transit districts, as very few cities or counties provide their own transit service directly. Some individual transit districts have higher maximum rates, and Kitsap Transit has additional sales tax authority up to 0. Eligible transit districts may also impose an additional sales tax up to 1.

This measure also requires voter approval, and currently Sound Transit is the only agency that has imposed the high-capacity transit sales tax. Any city or county may form a transportation benefit district TBD to generate revenue for specific transportation projects. One of the most common funding sources is a voted sales tax up to 10 years and 0. For more information and examples, see our Transportation Benefit Districts page. Pierce County only. Pierce County has imposed 0. Pierce County is the only agency with such authority, and the revenue is shared between the county and its cities and towns.

With a sales tax credit, the state credits a portion of its sales tax revenues to the local jurisdiction, but the total sales tax rate paid by the consumer remains unchanged. These sales tax credits are typically restricted to specific jurisdictions and often expire after a certain number of years. See our Lodging Tax page for more information. Local sales tax rates can vary significantly depending on which jurisdictions have imposed which local sales tax options.

To see which local governments in Washington have imposed which sales taxes and at what rates percentages , see our Tax and Population Data page. Sales tax revenues dollar amounts are impacted not only by the local sales tax rates, but also by the nature of the local economy and the quantity of taxable retail sales within a jurisdiction.

For most purchases, there is somewhere between a day to day time lag between collection the actual retail sale and local government receipt of the sales tax revenue from that sale. This is because most retailers remit sales taxes to DOR on a monthly basis, with payment due by the 25th of the following month RCW DOR then distributes those collections plus interest and minus any administrative fees to the local jurisdiction on the last business day of the following month.

For instance, if a sale is made in January — regardless of whether the sale took place on January 1 or January 31 — the sales tax is typically remitted to DOR by February 25, and DOR would then distribute the local portion of the sales tax to the local agency around March However, credits against the state sales tax rate that do not result in an increase to the consumer may take place on the first day of any month, and no sooner than 30 calendar days after DOR receives notice.

Below are some helpful resources from the state Department of Revenue regarding sales and use taxes:. Ballot Measure Results from the Primary Election. Kitsap Commissioners consider sales and use tax to fund affordable housing. The county currently assesses a 0. What are its options for increasing the sales tax I've been told that the public safety sales tax requires voter approval.

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COVID business relief is available. Reference: RCW Sales tax is imposed when tangible personal property is sold and delivered from the seller to the buyer consumer. Sales tax also applies on the charges for retail services performed for or provided to a consumer including the improvement or repair of real or personal property , recreational services and certain other services and activities.

The buyer must pay sales tax to the seller, and each seller must collect from the buyer the full amount of the tax. Vessel brokers and dealers are sellers under the law RCW Sellers must maintain documentation of out-of-state delivery.