Tax Reference Manual 2005
WASHINGTON STATE DEPARTMENT OF REVENUE
Cindi L. Holmstrom, Director
RESEARCH DIVISION
Mary Welsh, Assistant Director
Compiled and edited by
Don Taylor, Revenue Analysis Manager
January 2005
Preface
PART I: INTRODUCTION
Overview Of The Washington Tax System
State and Local Government Revenues
State Government Revenues and Expenditures
Net Washington State Tax Collections
Initiative 601 Limitation
Comparisons With Other States
Washington's Tax History
Early Tax History
The Depression and the Revenue Act of 1935
Subsequent Tax Changes
Local Government Finance
Environmental Taxes
Rate Changes for Selected Major Taxes
PART II: DISCUSSION OF EACH TAX
GENERAL SALES TAXES - Taxes imposed on the
purchase or use of a wide variety of items and selected services which are paid by
consumers
Retail sales tax
(state)
Use tax (state)
Local retail sales/use taxes
SELECTIVE SALES TAXES - Taxes imposed on the
purchase of specific items which are either paid by or shifted forward to consumers
Cigarette tax
Tobacco products tax
Liquor sales tax
Liquor liter tax
Wine tax
Beer tax
Motor vehicle fuel tax
Special fuel tax
Aircraft fuel tax
State convention center taxes
Local hotel/motel tax (state-shared)
Special local hotel/motel taxes
Solid waste collection tax
Wood stove fee
Brokered natural gas use tax
Rental car taxes
Telephone taxes
GENERAL BUSINESS TAXES - Taxes imposed on most
business activities for the privilege of engaging in business
Business and
occupation tax
Municipal business taxes
Local B&O tax - transit
SELECTIVE BUSINESS TAXES - Taxes imposed on
specific business activities, usually for the privilege of engaging in business, even
though the burden may be shifted forward to consumers
Public utility
tax
Insurance premiums tax
Food fish/shellfish tax
Hazardous substance tax
Soft drinks syrup tax
Petroleum products tax
Oil spill tax
Litter tax
Parimutuel tax
Boxing and wrestling tax
Intermediate care facilities (IMR) tax
Local gambling taxes
Nursing home fee
PROPERTY TAXES - Taxes imposed annually on real
and personal property which are measured by the value of the property
Property Taxes
EXCISES IN LIEU OF PROPERTY TAX - Taxes imposed
on specified types of real or tangible personal property in lieu of assessment and
taxation under the property tax
Motor vehicle excise
tax
Aircraft excise tax
Watercraft excise tax
Travel trailer/camper excise tax
Timber excise tax
PUD privilege tax
Leasehold excise tax
PAYROLL TAXES - Compulsory payments by employers
which fund compensation programs for employees
Unemployment
compensation tax
Industrial insurance premiums
OTHER TAXES - A variety of other state and local
tax sources
Real estate excise
taxes
Estate and transfer tax
Local admissions taxes
Local household tax
Local taxes on parking
Local taxes on employees
Index
Bibliography