Income from renting chairs or booths in your parlor or salon is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax. It does not matter whether the rental charge is a flat fee or based on a percentage of sales.

 

Income from providing tattoo services is taxable under the Retailing business and occupation (B&O) tax classification, and you must collect sales tax. This includes charges for permanent makeup and microblading, as these are considered tattoo services.

Please note: If you are performing permanent makeup services, you may also find our Beauty and wellness services guide helpful.

Medical tattooing minimizes scarring or visually replaces a removed body feature resulting from a medical procedure. It is commonly used following reconstructive breast surgery or to replace lost skin pigmentation in individuals with vitiligo.

Income from medical tattoo services is taxable under the Service and Other Activities business and occupation (B&O) tax classification. You do not have to collect sales tax on medical tattoo services when proper documentation is provided.

Documentation may include, but is not limited to:

• Referrals from doctors (a prescription is not necessary).
• Documentation that includes the current procedural terminology (CPT) code for the service, if a CPT code exists.
• Insurance documents for such services.

Temporary tattoos can be drawn, painted, airbrushed, or self-applied.

The application of temporary tattoos or body art is considered a professional service and is taxable under the Service and Other Activities business and occupation (B&O) tax classification. The artist does not have to collect sales tax on these services.   

However, the sale of temporary tattoos for self-application is taxable under the Retailing B&O tax classification, and the seller must collect sales tax.

Self-applied temporary tattoos

• Decal-style tattoos: Press-on tattoos.
• Metallic jewelry tattoos: Foil variations of decal-style tattoos, applied with a foil stamping technique and protected by a transparent film.

Body art

• Airbrush tattoos: Created using a stencil and alcohol-based cosmetic inks, these tattoos are easily removed with rubbing alcohol or baby oil but do not last as long as press-on tattoos.
• Henna tattoos: Made from plant-derived henna, these tattoos stain the skin in reddish-orange to brown colors.

Tattoo removal services performed at a tattoo parlor are taxable under the Retailing business and occupation (B&O) tax classification, and the tattoo parlor must collect sales tax.

However, income from tattoo removal services performed by a medical professional at a medical facility is taxable under the Service and Other Activities B&O tax classification, and retail sales tax does not apply.

Income from body piercing services is generally taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax.

Separately stated charges for jewelry are taxable under the Retailing B&O tax classification, and you must collect sales tax.

However, if you charge a single non-itemized price that includes jewelry and a piercing service, and the value of the jewelry is more than 10% of the charge, you must collect sales tax on the entire charge. In this case, the charge is also subject to Retailing B&O tax.

Supplies

You must pay sales tax or use tax on purchases of supplies and other items that are used in providing your services. Examples of supplies include:

• Furniture.
• Computers.
• Tattoo tools such as tattoo machines, needles, tubes, tips, grips, covers, and power supplies.
• Body piercing tools such as forceps, calipers, pliers, dermal tools, closers, and clamps. 
• Supplies such as pens, paper, toilet paper, and tissues.

If your vendor does not collect sales tax, you must report use tax on the full value of the items, including shipping or delivery charges.

Purchases for resale

You do not have to pay sales tax or use tax on purchases for resale. You may provide your vendor with your reseller permit for these purchases. Examples of items you might purchase for resale include ink and body jewelry.

If you pay sales tax on items you resell, you may take a Taxable Amount for Tax Paid at Source deduction on your excise tax return. You can only take this deduction under the retail sales tax classification. You must keep copies of all purchase invoices or receipts for the purchases you deduct.

Personal property tax is due on most property used in conducting business. Personal property includes all assets and supplies used by the business, but it does not include inventory held for sale.

Examples of items that are subject to personal property tax include chairs, computers, tattoo tools, and piercing tools.

You do not pay personal property tax on the excise tax return. This tax is administered by your county assessor. Please see our Personal Property Tax Brochure for more information.