Common terms

Bail bond agency: A business licensed under chapter 18.185 RCW that sells and issues corporate surety bail bonds or that provides security in the form of personal or real property to ensure the appearance of a criminal defendant before the courts of this state or the United States.

Bail bond agent: A person licensed under chapter 18.185 RCW who is employed by a bail bond agency and engages in the sale or issuance of bail bonds, but is not a clerical, secretarial, or other support person who does not participate in the sale or issuance of bail bonds.

Business and occupation (B&O) tax: B&O tax applies to the gross amount received from conducting business in Washington. There are different reporting classifications for various business activities such as retail sales, wholesale sales, and professional services. Each classification has its own tax rate.

Each business owes B&O tax on gross income resulting from its activities. Unlike an income tax that applies to net income, there are no deductions for labor, materials, taxes, rent, or other costs of doing business.

Collateral or security: Property of any kind given as security to obtain a bail bond.

Consumer: A consumer is any person who uses tangible personal property or receives services defined as retail sales. Such tangible personal property or services may be for personal use or conducting business activities. All sales of tangible personal property and retail services are presumed to be to a consumer. The seller has the duty to retain documentation showing that a sale is not at retail.

Gross amount: The term “gross amount,” which appears at the top of Column One on the Combined Excise Tax Return, is a “catch-all” term for whichever of the following terms is applicable to your business; “gross proceeds of sale,” or “gross income of the business.” The gross amount includes all consideration received without deductions for the costs of doing business or other expenses.

Business license: Persons wishing to register a business with one or more state agencies must complete a Business License Application. Upon submitting a Business License Application the person receives a Unified Business Identifier (UBI) number. The person then receives a Business License to post at the business location.

Reseller permit: A seller must obtain a reseller permit from the buyer to document the wholesale nature of any sale.

Retail sales tax: Retail sales tax is a tax imposed on the buyer of goods and retail services. Sellers are responsible for collecting the tax from the consumer and remitting the tax to the Department of Revenue. The term “sales tax” refers to the combined state and local portion of the tax.

RCW: Revised Code of Washington (Washington statutes or “laws”).

UBI/Account ID: Sometimes called a registration number, tax number, “C” number, or resale number, the Unified Business Identifier (UBI) number is a nine-digit number used to identify registered businesses. The number is assigned when a person completes a Business License Application to register with or obtain a license from state agencies. The Departments of Revenue, Licensing, Employment Security, Labor & Industries and the Corporations Division of the Secretary of State are among the state agencies participating in the UBI program. In most cases, your UBI number will also be your DOR account ID. Spouses who file separately and corporations who file multiple accounts are assigned separate DOR account IDs as needed.

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 applies, but not both. 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 (administrative rules).

References:
RCW 18.185.010
RCW 82.04.070
RCW 82.04.080
RCW 82.32.780
WAC 458-20-178