Use tax is due if:
- goods are purchased in another state that does not have a sales tax or a state with a sales tax lower than Washington’s. For example, items you purchase in Oregon that are used in Washington are subject to use tax.
- goods are purchased from someone who is not authorized to collect sales tax. For example, purchases of furniture from an individual through a newspaper classified ad or a purchase of artwork from an individual collector.
- goods are purchased out-of-state by subscription, through the Internet, or from a mail order catalog company. Many of these companies collect Washington’s sales tax, but if the company from which you order does not, you owe the use tax.
- personal property is acquired with the purchase of real property.
Use tax is also due on:
You owe use tax when:
- the price of the lease, when goods are leased.
- goods purchased for use by a business and sales tax has not been paid. (Example: Supplies, fixtures, magazine subscription, etc.)
- gifts or prizes. Tax is determined on the value of the gift or prize unless the donor has paid the sales or use tax. (Example: You win a car in a raffle. The donor did not pay sales tax to the vendor, so use tax will be due when you license the vehicle.)
Use tax is not due if:
- the goods are first used in Washington.
- goods are purchased for resale without intervening use;
- goods purchased are to be used as an ingredient or part of a new product for sale;
- goods purchased are feed, seed, seedlings, fertilizer, spray materials, or agents for enhanced pollination, for use in producing agricultural products for sale.
- goods purchased are machinery and equipment used directly in a manufacturing operation.