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What code do I use for my local tax?

Sales of Items Originating in Washington State

  • Use the location code & rate for the place where the goods are delivered to the customer in Washington.

Example: A customer from Gig Harbor orders goods from a store located within the city limits of Tacoma. The customer has the store deliver the goods to his or her home in Gig Harbor. The sale occurs at Gig Harbor, the place where the customer receives the goods from the seller.

 

For Sales of Items Shipped to a Customer in Washington From a Registered Out-of-State Seller

  • Use the customer’s address.

Example: A customer from Olympia orders goods from a business in Los Angeles. Use the customer’s address (ship-to address). It doesn’t matter whether the seller has a representative in another location in Washington. 

Sales of Retail Services, Installation, and Construction

Businesses performing retail services or selling products requiring significant installation must use the location code where the service or installation takes place.

Example: A Bellevue store sells carpet to a Redmond customer and installs the carpet in the customer's Redmond home.  Collect sales tax at the Redmond rate and use that code.

Lease or Rental of Tangible Personal Property

For a short-term lease, use the seller's (lessor's) store location. Short-term leases are generally for less than 30 days and do not require periodic payments.

Example: A Spokane business rents a rototiller to a customer in Airway Heights for two days. The business will collect and code the local tax to Spokane.

For long-term leases, use the customer's (lessee's) location.  Long-term leases are generally 30 days or more and require periodic payments.

Example: A person in Yakima enters into a 36-month vehicle lease with a Seattle leasing company.  The Seattle Company will collect the applicable rate for Yakima.

If you are unsure which local sales and use tax rate to charge, or which location code to use, you can access the Department's Tax Rate Lookup Tool (GIS) or call 1-800-647-7706. 

 

Reporting Local Sales and Use Tax Rate Changes

(WAC 458-20-199; -235)

Occasionally the tax rate changes or, due to incorporation, an area changes their four-digit location codes in the middle of a reporting period.  If changes take place, the income before and after the change must be split on the Excise Tax Return between the old rate and the new rate, or the old location code and the new location code.

 

Example: The city of Bellingham increased its tax rate effective April 1, 2005 . For sales taking place in Bellingham before April 1, the local tax rate was .017.  Sales taking place on or after April 1 are taxed at .018.

Tax rate example 1

 

Example: The city of Spokane Valley incorporated as of April 1, 2003. For sales taking place before April 1, the local tax is coded to 3200. Sales taking place on or after April 1 are coded to the new location code of 3213.

Use Tax rate example 2

 

If you have made a mistake on a past return, you must file an amended tax return.

 

 

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