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II

What is the State and Local Use Tax?

Use Tax applies to the value of all articles used by businesses (as opposed to being sold to a customer) on which no Washington sales tax has been paid. As with sales tax, each taxing authority such as the state of Washington, cities, and regional authorities such as the Regional Transit Authority can add to the use tax charged.  The total tax is collected and then distributed to each of the taxing authorities.  Section III helps the state get the tax dollars to the proper authority.

arrow Helpful Hints for Reporting Sales and Use Tax

Line 6

State Use Tax/Deferred Sales Tax

  1. Under Gross Amount, enter the value of articles used or consumed in Washington State on which sales tax has not been paid.

  2. Multiply the Gross Amount by the rate shown and enter the amount under Tax Due.

 

Lines 7 - 9

Local Use Tax/Deferred Sales Tax

  1. Enter the location code and local rate for each location in which tax is due. For location codes and rates, refer to the List of Local Sales and Use Tax Rates & Changes, or our Tax Rate Lookup Tool (GIS) to search for a specific address. 

    Note:  If you have more than two locations, please report all information on the Local Sales Tax Addendum (pdf).

  2. Enter the taxable amount for each location code under Value of Articles.

  3. Multiply the value of articles by the rate and enter the amount under Tax Due City or County.

  4. Add the Value of Article amounts and enter the sum under Total Value of Articles.

 

Line 10

Regional Transit Authority (RTA) Tax

Effective January 1, 2008, the RTA tax will no longer be reported on a separate line. Include the RTA tax with the local tax rate for locations within the RTA boundary.

 

Line 11

Litter Tax
Litter tax is owed on the sales of products in the following categories:

  1. Food for human or pet consumption (to go orders)
  2. Groceries
  3. Cigarette and tobacco products
  4. Soft drinks and
  5. carbonated beverages
  6. Beer and other malt beverages
  7. Wine
  8. Newspapers and magazines
  9. Household paper and paper products
  10. Glass, metal, plastic or fiber containers
  11. Cleaning agents
  12. Toiletries
  13. Non-drug drugstore sundry products

Write the taxable sales for litter tax under Taxable Amount. Multiply the taxable amount by the rate (.00015) and write the amount under Tax Due.

 

Line 12

Total Tax Due from Section
Add the amount from the Tax Due boxes (lines 6-11) and enter the sum on line 12. Transfer this total to page 1, line 21.

 

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