Booth/Chair Renter
A booth/chair renter is an independent person who performs cosmetology, barbering, esthetics, or manicuring services that require a professional license and pays a fee to the salon for use of the booth/chair. Generally, a booth/chair renter is required to have their own tax registration and is required to report their own income.
Business and Occupation (B&O) Tax
The B&O tax applies to the gross amount received from conducting business. There are different reporting classifications for retail sales, wholesale sales, professional services, etc. Each classification has its own tax rate. Persons performing more than one activity may be subject to B&O tax under more than one reporting classification.
Consumer
A consumer is any person who uses tangible personal property and receives services defined as retail sales. Such tangible personal property or services may be for personal use or for use when conducting business activities. If you're a seller, you need to know who is a consumer to know when to collect sales tax. If you're a buyer, you need to know when to pay sales tax and, if sales tax hasn't been paid, when to pay use tax or deferred sales tax.
Deferred Sales Tax
This tax applies under conditions where a person acquired goods without paying sales tax when sales tax was due. Generally, deferred sales tax applies when someone uses a resale certificate to purchase goods that are used and not resold (without use). When reporting deferred sales tax, place the taxable amount on the use tax line of the excise tax return.
Gross Amount
The term "gross amount," which appears at the top of column one on the excise tax return, is a "catch-all" term for whichever of the following terms is applicable to your business: "gross proceeds of sale," "gross income of the business," or "value of products." The gross amount includes all consideration received without deductions for the costs of doing business or other expenses.
Independent Contractor
An independent contractor is usually a person who engages in business activities other than as an employee. Determining whether a person is an independent contractor or an employee is important because independent contractors are subject to the B&O tax (and other business doingbusiness/businesstypes) and employees are not. Various factors determine whether one is an employee or an independent contractor. Generally, independent contractors are entitled to the gross income of the business, are liable for business losses and expenses, file a statement of business income and expenses (Schedule C) for federal income tax purposes, and may employ others, etc.
Master Business Application
This application is completed by persons that are required to register with one or more state agencies. Persons completing the application are assigned a UBI/tax registration number. The business then receives a Master License to post at the business location.
A completed resale certificate is given by a buyer to a seller to verify that the goods or retail services are being purchased for resale in the normal course of business without intervening use.
Retail Sales Tax
A tax imposed on the buyer of goods and certain retail services. However, the seller is responsible for collecting the tax from the consumer and remitting the tax to the Department of Revenue. The sales tax is a combined state and local tax.
RCW
Revised Code of Washington
UBI/Tax Registration Number
Sometimes called a registration, tax reporting account, "C," or resale number, the Unified Business Identifier (UBI) number is a nine-digit number used to identify persons engaging in business activities. The number is assigned when a person completes a Master Application to register with or obtain a license from state agencies. The departments of Revenue, Licensing, Employment Security, Labor and Industries, and the Corporations Division of the Secretary of State are among the state agencies participating in the UBI program.
Use Tax
Use tax is imposed on the acquisition of goods for consumer use in this state when the state's retail sales tax has not been paid. With respect to the use of goods as a consumer, either sales tax or use tax, but not both, applies. In this manner, use tax serves to complement the sales tax. Like the sales tax, the use tax is a combined state and local tax. Use tax rates and sales tax rates are the same.
WAC
Washington Administrative Code |