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What is the leasehold tax?

It is a tax on the use of public property by private or commercial businesses. This tax is in lieu of the property tax.


How do I pay the tax?

Public entities that lease property to private lessees collect the tax and report it to the Department of Revenue quarterly on the Leasehold Excise Tax Return.

Lessees of federal property report directly to the Department of Revenue on the Leasehold Excise Tax Return. This form is filed annually.


What rate do I pay?

The Leasehold Excise Tax rate is .1284 of the rent paid for the property.


What are the funds used for?

Approximately 53 percent of the tax goes into the State General Fund and 47 percent of the tax is returned to the county and city in which the leased property is located.

 

 

 

 

More information

Leasehold Excise Tax Notifications (Listserv): Receive updates on forms, law changes, and other important information about leasehold excise tax.

Forms & publications

Leasehold Excise Tax Returns

Leasehold Location Codes (pdf)

Special Notice: Exemption for certain amateur radio repeaters (pdf)

References

Excise Tax Advisory (ETA) 3113 - Computing Leasehold Excise Tax at Public Marinas (pdf)

Tax Reference Manual (pdf)

Revised Code of Washington (RCW) 82.29A