OUTLINE OF MAJOR TAXES IN WASHINGTON STATE

Washington State Department of Revenue
January 2004

Tax Source
RCW Citation

Tax Base

Tax Rate

Yield FY 2003 ($000,000)

Administration

Collection Procedure

STATE GENERAL AND SELECTIVE SALES TAXES

Beer Excise Tax (66.24.290)

Brewing or wholesaling of beer

$8.08 per 31 gallon barrel (sales > 60,000 barrels)

$30

Liquor Control Board

Paid by brewers or wholesalers

Brokered Natural Gas Tax (82.12.022)

Natural or manufactured gas consumed within the state which was not subject to public utility tax

3.852%

$24

Dept. of Revenue

Paid by users on special brokered natural gas tax return

Cigarette Tax

(82.24, 28A.47)

Sale, use, consumption, handling, or distribution of cigarettes

 

$1.425 per package of 20 cigarettes

$330

Dept. of Revenue

Distributors purchase tax stamps

Liquor Liter Tax (82.08.150)

Sales of hard liquor (spirits)

$2.44 per liter

$70

Liquor Control Board & Revenue

Included in purchase price

Liquor Sales Tax (82.08.150)

Sales of liquor and strong beer

Consumers, 20.5%; Class H, 13.7%

$63

Liquor Control Board & Revenue

Included in purchase price

Motor Fuels Taxes (82.36, 82.37, 82.38)

Sale or use of motor vehicle fuel or special fuels (propane, etc.)

28 cents per gallon

$752

Dept. of Licensing

Paid by distributor and included in pump price

Refuse Collection Tax (82.18)

Services provided by refuse collection businesses

3.6%

$26

Dept. of Revenue

Paid by refuse collection users

Rental Car Tax (82.08.020(2))

Retail car rentals

5.9%

$21

Dept. of Revenue

Paid by rental car firms

Retail Sales Tax (82.08) Selling price of tangible personal property & certain services purchased by consumers 6.5% (6.8% on sales and leases of new and used motor vehicles) $5,561 Dept. of Revenue Paid by purchaser to retailer who forwards to Revenue

Tobacco Products Tax (82.26)

Sale, use, etc., of other tobacco products

129.42% of wholesale price

$24

Dept. of Revenue

Paid by distributors

Use Tax

(82.12)

Privilege of using tangible personal property on which sales tax was not paid, measured by market value

6.5%

$377

Dept. of Revenue

Paid by user to Revenue (to County Auditor for vehicles)

Wine Excise Tax (66.24.210)

Wholesale sales of wine

22.67 cents per liter (45.11 cents for fortified wines)

$17

Liquor Control Board

Paid by wine wholesalers

STATE GROSS RECEIPTS BUSINESS TAXES

Business & Occupation Tax (82.04)

Gross income or proceeds of sales, or value of products for privilege of doing business

Major rates:
retailing, 0.471%; manufacturing/wholesaling, 0.484%;
services, 1.5%

$1,923

Dept. of Revenue

Business reporting monthly, quarterly, or annually

Insurance Premiums Tax (48.14)

Gross premiums received by licensed insurers

Ocean marine/trade, 0.95%;
other insurers, 2.0%

$317

Insurance Commissioner

Paid by insurance companies

Public Utility Tax

Gross operating revenue of public & privately owned public service firms (utilities)

Gas/sewer, 3.852%; water, 5.029%;
urban trans., 0.642%; motor & railroad trans., 1.926%;
power, 3.873%;
all others, 1.926%

$270

Dept. of Revenue

Business reporting monthly, quarterly, or annually

STATE PROPERTY TAX

State Property Tax Schools (84.52.065)

Assessed value of taxable real & personal property, adjusted to 100% true & fair value

Taxes due in calendar 2003: $2.92 per $1,000
of assessed value (local tax base)

$1,483

County Assessor & Treasurer, Revenue

Paid by levy for owners: 50% due
April 30 and balance due Oct. 31

STATE EXCISE TAXES IN LIEU OF PROPERTY TAX

Aircraft and Watercraft Excise Taxes (82.48 and 82.49)

Privilege of using aircraft and watercraft, measured by fair market value for boats and statutory fees for aircraft.

Aircraft, $20-125; boats, 0.5%

$13

Dept. of Licensing, County Auditors

Paid annually by owners with license fees

Leasehold Excise Tax (82.29A)

Rental value of leased publicly owned property

State tax rate of 12.84% less local taxes up to 6%

$19

Dept. of Revenue

Paid to lessors and sent to Revenue

PUD Excise Tax (54.28)

Privilege of producing energy by public utility districts

2.14% of gross revenues plus 5.35% of 1st 4 mills per KWH

$37

Dept. of Revenue

Paid annually by PUDs

Timber Excise Tax (84.33.041)

Stumpage value of timber at the time of harvest

Public lands, 5.0%; private lands, 1.0%

$8

Dept. of Revenue

Paid quarterly by harvesters

OTHER STATE TAXES

Carbonated Beverage "Syrup" Tax (82.64)

Wholesale or retail sales of syrup used to make carbonated beverages

$1.00 per gallon of syrup

$9

Dept. of Revenue

Paid to Revenue by in-state sellers of carbonated beverages

Enhanced 911 Tax

Telephone lines, land and wireless

$0.20 per line

$10

Dept. of Revenue

Added to telephone bills and paid to DOR by telephone companies

Estate and Transfer Tax (83.100)

Amount of credit allowed under federal estate tax, as of 1/1/01

No additional state tax

$122

Dept. of Revenue

Estates file within 9 months

Food Fish & Shellfish Tax (82.27.020)

Price paid by first commercial processor of food fish or shellfish

Chinook salmon, 5.62%; sockeye salmon, 3.37%; oysters, 0.086%; sea urchins/cucumbers, 4.92%; other, 2.25%

$2

Dept. of Revenue

Paid by commercial fishermen & processors

Hazardous Substances Tax (82.21)

Value of certain chemicals and other products at time of first possession in state

0.7%

$51 (incl. local)

Dept. of Revenue

Paid to Revenue by party first possessing substance in state

Oil Spill Tax (82.23B)

Crude oil & petroleum products delivered at marine terminals within the state

$.05 per 42 gallon barrel

$6

Dept. of Revenue

Collected by marine terminal operators & paid to Revenue

Petroleum Products Tax (82.23A)

Wholesale value of petroleum products derived from crude oil at time of first possession in this state

0.5% (tax reimposed as of 7/1/03)

--

Dept. of Revenue

Paid to Revenue by first possessor of petroleum products

Real Estate Excise Tax (82.45.060)

Sales of real property

1.28% of selling price

$514

Revenue and County Treasurer

Sellers pay tax when affidavit is recorded

State Convention Center (67.40.090)

Accommodations in King County hotels with 60+ units

Seattle, 7%; the rest of King County 2.8%

$38

Dept. of Revenue

Paid to retailer who forwards tax to Revenue

MAJOR LOCAL GOVERNMENT TAX SOURCES (yield is latest year available)

Baseball Sales/Use Sales in King County 0.017% ** $6 Revenue Calculated by Revenue
Food & Beverage Prepared foods and drinks (King County only) 0.5% $16 Revenue Collected by retailers & forwarded to Revenue
Football Sales/Use Sales in King County 0.016% ** $6 Revenue Calculated by Revenue

Hotel/Motel Tax  (67.28.180)

Transient rental income

2.0% of sales tax (6.5%)

$45

Dept. of Revenue

Reported by retailers; state reimburses cities and counties

Leasehold Excise Tax (82.29 A)

Rental value of leased publicly owned property

Up to 6%

$16

Dept. of Revenue

Paid to lessors and sent to Revenue

Local Property Taxes (84.52 and others)

Assessed value of taxable real and personal property 

Due in calendar year 2003: average local regular & special levy rate, $9.41

$4,769

(Due in CY 2003)

County Assessor & Treasurer, Revenue

Paid by owners: 50% due April 30 and balance due Oct. 31

Local Real Estate Excise (82.46)

Sales of real property

Generally 0.25% or 0.5% of selling price

$177

County Treasurer

Sellers pay when sales affidavit is filed

Local Retail Sales & Use Taxes (82.14)

Same as state sales/use tax

City/county, 0.5-1.0%;
Transit, 0.1-0.9%;
Criminal Justice, 0.1%;
Public Facilities, 0.1%;
Juvenile Detention, 0.1%;
High Cap. Transit, 0.4%;
Rural counties, 0.08%;
Regional Centers, 0.033%;
Pierce County Zoo, 0.1%
Emergency Comm., 0.1%

$907
$565
$90
$6
$28
$205
$16
$11
$10
$1

Dept. of Revenue

Retailers report sales by local code

Municipal Business Taxes and Licenses (35 & 35A)

Gross revenue or flat fees based on class of business, number of employees, etc.

Business: generally 0.05-0.2%
Utilities: generally
2-6%

$204

$477

City Clerk

Paid by local firms within taxing jurisdiction

Special Hotel/Motel Tax (67.28)

Transient rental income

Many cities and counties levy additional taxes ranging from 2.0% to 5.0%

Included above

Dept. of Revenue

Paid to retailers who forward tax to Revenue

Timber Excise Tax
(84.33.051)

Stumpage value of timber at the time of harvest

Private lands, 4.0%

$28

Dept. of Revenue

Paid quarterly by harvesters

** Deducted from state tax