All-City
Hair Salon provides hair, tanning, massage, and nail services. In addition
to the two partners, they have an independent stylist that rents a booth/chair
and provides hair services. The independent's customers pay that stylist directly.
The booth renter pays a flat fee of $250 a month. The salon has a nail technician
and a masseuse that are employees. Tanning beds and spas are also available to
the salon's customers.
The salon has a monthly reporting frequency. During the month of September 2002,
salon revenues were as follows:
| Salon | Independent | Classification |
| | | |
| Haircuts | $5,500 | $1,200 |
Service and Other Activities |
| Colors/tints | 3,000 | 400 |
Service and Other Activities |
| Permanents | 1,000 | 100 |
Service and Other Activities |
| Sales of cosmetic products | 3,000 | 200 |
Retailing |
| Sales of hair dryers, curlers, brushes, etc. | 1,700 | 500 | Retailing |
| Wholesale sales | 750 | | Wholesaling |
| Tanning | 2,000 | | Retailing |
| Spas/steam baths | 2,500 | | Retailing |
| Nail services | 4,000 | |
Service and Other Activities |
| Massages | 2,200 | |
Service and Other Activities |
| Tips | 900 | 300 | Exempt |
| Booth/chair rental | 250 | |
Service and Other Activities |
See a
sample excise tax return for All-City Hair Salon. The business
is located in Seattle. The four-digit location code is 1726 and the local tax rate is 8.8%
Also, see a
sample tax return for the independent, John's Booth.
doingbusiness/businesstypes for the salon and the independent booth renter are as follows:
| Salon | Independent |
| | |
| Service and Other Activities B&O tax | $15,950 | $1,700 |
| Wholesaling B&O | 750 | |
| Retailing B&O | 9,200 | 700 |
| Retail Sales Tax | 9,200 | 700 |
| Location Code 1726 | 9,200 | 700 |
| RTA | 9,200 | 700 |
| Litter Tax | 3,000 | 200 |