Does sales tax apply to banquet room charges?

Non-Lodging Facility: If a separate charge is made for the use of a banquet room, retail sales tax does not apply when rented from a non-lodging facility. This income is subject to B&O tax under the Service and Other Activities classification.

If a single charge is made for both a banquet room and meals/drinks, the total charge is subject to retailing B&O tax and retail sales tax must be collected.

Lodging Facility: In all cases, hotel and motel businesses must collect retail sales tax on banquet room charges whether separately stated or not. Hotel and motel businesses should refer to WAC 458-20-166.

Note: Mandatory gratuities are part of the selling price of the food or drinks even if separately stated. See the Gratuities Section.

Reference: WAC 458-20-118