Note:  On July 1, 2008, sales tax collection will change for Washington retailers who deliver or ship goods to customers in Washington. On July 1, 2008, sales tax collection will be based on the location where the customer receives the merchandise. For more information on these changes see our Streamlined Sales and Use Tax page. For answers to specific questions about sales tax collection call the Telephone Information Center at (800) 647-7706.  

To ensure local governments receive the correct amount of tax money, retailers must code their sales accurately:

• Currently, goods and merchandise sales are coded to the location of the retail outlet or place at which or from which delivery is made. For most retailers, this is the location of the business. However, businesses making deliveries from their warehouse to their customer will use their warehouse location to determine their local tax code and rate.
• Labor and services are coded according to where they are performed. If an installation charge is normally added to the cost of an item, the entire charge for that item is coded to the site where it is installed. If the buyer picks up the item in person, the sale is coded to the retail outlet where the item was picked up.
• If goods are delivered into Washington from outside of the state and a local in-state facility, office, outlet, agent or other representative participated in the transaction, the location of the instate facility determines the place of sale for local tax purposes. If there is no local facility, the location of the customer determines the location code.
• Lease or rental of tangible personal property depends on the following:
• If a single payment is made, the lessor’s place of business determines the local tax rate.
• If the item is leased for a length of time and periodic payments are made, the local sales tax is coded to the lessee’s place of use.

Washington Administrative Code (WAC) 458-20-145