Gratuities
Tips or gratuities given voluntarily by customers are not subject to tax. However, if the tip or gratuity
is added to the bill and is a mandatory charge for services, the charge becomes part of the selling price
and subject to tax.
One example of a situation in which charges for gratuities are not considered
voluntary is when the amount is agreed upon and the contract document states that
a gratuity "will be added."
References:
WAC
458-20-119 and
WAC
458-20-124
Unclaimed Property and Unredeemed Gift Certificates
Unclaimed property is money or intangible property held for a period of time with no owner contact. The
Washington Unclaimed Property Act protects unclaimed property until it is returned to its rightful owner
or their heir. The Department of Revenue acts as the custodian for safe keeping of the property until the
rightful owner can be located. Once the property is reported to the Department, it is available for refund
to the owner or legal claimant indefinitely.
Washington State law requires businesses and other organizations to review their records each year to determine
whether they hold any property that has been unclaimed for a set period of time. Businesses must file an annual
report and deliver the property to the state. The length of time property is abandoned before being turned over
to the state varies depending upon the type of property.
How to report unclaimed property
For information on how to report unclaimed property including unredeemed gift certificates, see our Unclaimed Property section, or write to:
Unclaimed Property
PO Box 47489
Olympia WA 98504-7489
Reference: RCW
63.29