Ticket sales

Ticket sales include sales of physical or digital tickets that allow admittance to a sporting event.

Reporting Requirements

Ticket sales are subject to Service and Other Activities business and occupation (B&O) tax. No retail sales tax is due on the entrance fee.

Separate service charges for tickets to professional sporting events are retail sales, subject to Retailing B&O tax and retail sales tax.

How is service income attributed?

Generally, service income is attributed to Washington according to where the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington.

If the business is unable to attribute service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.050 – “Sale at retail,” “retail sale.”
• RCW 82.04.290 – Tax on service and other activities.
• WAC 458-20-19402 – Single factor receipts apportionment – Generally.
• WAC 458-20-224 – Service and other business activities.
• Interim statement regarding the sourcing of service charges associated with tickets to professional sporting events

Ticket resale fees

Ticket resale platforms often charge a service fee to facilitate the sale.

Registration requirements

Fees charged when reselling a ticket through FIFA’s ticket resale platform are subject to Service and Other Activities B&O tax. No sales tax is due on these fees.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington. If the business is unable to attribute the service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.290 – Tax on service and other activities.
• WAC 458-20-19402 – Single factor receipts apportionment – Generally.
• WAC 458-20-224 – Service and other business activities.

Hospitality suite rights

Hospitality suites are rooms or blocks of rooms used as an exclusive, private event space during a sporting event.

Reporting requirements

Charges for hospitality suite rights are subject to Service and Other Activities B&O tax. No retail sales tax is due on these charges.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington. If the business is unable to attribute the service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.290 – Tax on service and other activities.
• WAC 458-20-19402 – Single factor receipts apportionment – Generally.
• WAC 458-20-224 – Service and other business activities.

Hospitality suite rights + tickets (bundled with food, merchandise, etc.)

Hospitality suites are rooms or blocks of rooms used as an exclusive, private event space during a sporting event.

Reporting requirements

Charges for hospitality suite rights that include prepared food, merchandise, and/or other retail items are subject to Retailing B&O tax. Retail sales tax is due on the total charges.

References

• RCW 82.08.190 – Bundled transactions – Definitions.
• RCW 82.08.195 – Bundled transactions – Tax imposed.

Sporting event ticket sales service fees

Some ticket sellers charge a separate service fee on ticket sales.

Reporting requirements

Separate service charges for tickets to professional sporting events are retail sales, subject to Retailing B&O tax and retail sales tax.

References

• RCW 82.04.050 – “Sale at retail,” “retail sale.”
• Interim statement regarding the sourcing of service charges associated with tickets to professional sporting events

Lodging - Short-term rentals (less than 30 days)

Short-term rentals of real estate are considered transient lodging. Transient means any guest, resident, or other occupant you provide lodging services to for less than one month or less than 30 days in a row, if the rental period does not start on the first day of the month. Lodging includes hotels and motels, as well as renting all or part of a private residence.

Reporting requirements

Businesses or individuals providing short-term rentals are are subject to Retailing business and occupation (B&O) tax classification, and they must collect sales tax on their gross income from lodging sales.

In addition to sales tax, most Washington locations impose additional lodging taxes that apply only to lodging sales. Lodging businesses must report their sales using the location code of the lodging facility.

You can find the correct location code by using our Tax Rate Lookup tool or lodging sales rates flyer.

If you contract with an online lodging marketplace for your rental property, the marketplace may collect sales and lodging taxes on your behalf.

References

• RCW 82.04.050 – “Sale at retail,” “retail sale.”
• WAC 458-20-166 – Hotels, motels, boarding houses, rooming houses, resorts, hostels, trailer camps, short-term rentals and similar lodging businesses.
• Lodging guide

Lodging - Long-term rentals (30 days or more)

Long-term rentals of real estateare considered non-transient rentals. Non-transient rentals are those with a rental period of one month or more, or with the guest remaining in continuous occupancy for 30 days or more when the rental period does not start on the first of the month.

Reporting requirements

Businesses or individuals providing long-term rentals (non-transient) are exempt from B&O tax and retail sales tax. However, income from providing a license to use of real property is subject to B&O tax and may be subject to retail sales tax. For more information, see our Tax Topic article titled Rental vs. License to Use Real Estate.

References

• RCW 82.04.290 – Tax on service and other activities.
• WAC 458-20-118 – Sale or rental of real estate, license to use real estate.
• WAC 458-20-166 – Hotels, motels, boarding houses, rooming houses, resorts, hostels, trailer camps, short-term rentals and similar lodging businesses.
• Lodging guide

Broadcasting rights

Broadcasting rights (often referred to as media rights) are legal permissions that allow a television network, radio station, streaming service, or other media outlet to transmit live or recorded content. These rights are typically protected by copyright laws and allow the content creator or owner to control how, when, and where the content is shown to the public.

Reporting requirements

The gross income from broadcasting (excluding sales to other broadcasters of the right to broadcast material) is reported under the Radio and Television Broadcasting business and occupation (B&O) tax classification.

The gross income from charges to other broadcasters for granting the right to use broadcast material is reported under the Royalties B&O tax classification.

How is royalty income attributed?

Generally, royalty income is attributed to Washington based on where the customer will use the intangible property. If the customer uses the intangible property in multiple states and the business can reasonably determine the amount of a specific receipt that relates to a use in Washington, it must attribute that receipt to Washington.

If you are unable to attribute the royalty income to the location of customer use, see the series of steps for attributing income on the Attributing royalty income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.281 – Tax on radio and television broadcasting.
• RCW 82.04.2907 – Tax on royalties.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19403 – Apportionable royalty receipts attribution.
• WAC 458-20-241 – Radio and television broadcasting.

Radio advertising

Radio advertising is the practice of purchasing airtime on radio stations to promote products or services. Common types of radio advertisements include:

• Commercials.
• Live reads.
• Testimonials.
• Sponsored segments.

Reporting requirements

The gross income from the sale of radio advertising is reported under the Radio and Television Broadcasting B&O tax classification.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.281 – Tax on radio and television broadcasting.
• WAC 458-20-241 – Radio and television broadcasting.

Other marketing rights

Marketing rights for access to intellectual property are legal rights that authorize a business or organization to use the intellectual property for marketing, promotional, or commercial purposes. These rights are generally granted through a contract or license agreement.

Reporting requirements

The gross income from charges for marketing rights to access intellectual property is reported under the Royalties B&O tax classification.

How is royalty income attributed?

Generally, royalty income is attributed to Washington based on where the customer will use the intellectual property. If the customer uses the intellectual property in multiple states and the business can reasonably determine the amount of a specific receipt that relates to a use in Washington, it must attribute that receipt to Washington.

If the business is unable to attribute royalty income to the location of customer use, see the series of steps for attributing income on the Attributing royalty income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.2907 – Tax on royalties.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19403 – Apportionable royalty receipts attribution.

Sponsorships, advertisements, or promotions not viewable on broadcasts

Non-broadcast sponsorships, advertisements, or promotions are elements of advertising that are visible to the live audience but do not appear in television or radio broadcasts.

Examples include, but are not limited to:

• In-stadium advertising.
• Brochure advertising.
• Gameday publication advertising.
• Other local advertising.

Reporting requirements

The gross income from the sale of non-broadcast sponsorships, advertisements, or promotions is reported under the Service and Other Activities B&O tax classification.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington. If the business is unable to attribute the service income based on where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.290 – Tax on service and other activities.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19401 – Minimum nexus thresholds for apportionable activities and selling activities.
• WAC 458-20-19402 – Single factor receipts apportionment.
• WAC 458-20-224 – Service and other business activities.

Sponsorships, advertisements, and promotions viewable on broadcasts

Sponsorships, advertisements, and promotions viewable on broadcasts are promotional content that are visible to the audience during a broadcast.

Examples include, but are not limited to:

• On-field signage.
• Jersey sponsors.
• Billboards.
• Scoreboards.
• Stadium naming rights.

Reporting requirements

The gross income from the sale of sponsorships, advertisements, or promotions viewable on broadcasts is reported under the Service and Other Activities B&O tax classification.

How is service income attributed?

Generally, service income is attributed to Washington based onwhere the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington. If the business is unable to attribute the service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.290 – Tax on service and other activities.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19401 – Minimum nexus thresholds for apportionable activities and selling activities.
• WAC 458-20-19402 – Single factor receipts apportionment. WAC 458-20-224 – Service and other business activities.

Sales of prepared food and soft drinks

Prepared food is food where the seller:

• Combines two or more food ingredients and sells it as a single item.
• Sells the food in a heated state or heats the food.
• Sells the food with eating utensils such as a plate, fork, knife, spoon, cup, or straw.

Soft drinks are beverages that are sealed and ready to drink, except those that contain milk, milk products, milk substitutes, or more than 50% fruit or vegetable juice.

Reporting requirements

Sales of prepared foods and soft drinks are subject to Retailing business and occupation (B&O) tax and retail sales tax. Sales tax is due at the location where the customer receives the item. You can find the correct location code by using our Tax Rate Lookup tool.

References

• RCW 82.04.050 – “Sale at retail,” “retail sale.”
• WAC 458-20-244 – Food and food ingredients.
• Restaurants and retailers of prepared foods

Sales of merchandise

Merchandise and licensed merchandise are considered tangible personal property, which is property that can be seen, weighed, measured, felt, or touched. Merchandise can include, but is not limited to:

• Clothing.
• Keychains.
• Posters.
• Toys.
• Commemorative decor.

Reporting requirements

Sales of merchandise are subject to Retailing business and occupation (B&O) tax and retail sales tax. Sales tax is due at the location where the customer receives the item. You can find the correct location code by using our Tax Rate Lookup tool.

References

• RCW 82.04.050 – “Sale at retail,” “retail sale.”

Licensing for merchandise, including brand licensing

Licensing rights are legal permissions that allow a manufacturer and/or seller to sell merchandise bearing the names and images owned by another organization. These rights are typically protected by copyright and/or trademark laws and allow the owner to control how, when, and where the names and images are used and sold.

Reporting requirements

The gross income from charges to others for granting the right to use images and names for merchandise is reported under the Royalties B&O tax classification.

How is royalty income attributed?

Generally, royalty income is attributed to Washington based on where the customer will use the intangible property. If the customer uses the intangible property in multiple states and the business can reasonably determine the amount of a specific receipt that relates to a use in Washington, it must attribute that receipt to Washington.

If you are unable to attribute the royalty income to the location of customer use, see the series of steps for attributing income on the Attributing royalty income page.

References

• RCW 82.04.2907 – Tax on royalties.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19403 – Apportionable royalty receipts attribution.

Player fees based on ticket sales

Players may receive compensation tied to ticket sales, public appearances, or participation in events related to a match or promotional activity.

Reporting requirements

When a player or the player’s business entity receives compensation for services performed in Washington, the income is generally subject to Service and Other Activities business and occupation (B&O) tax.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington. If the business is unable to attribute the service income based on where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.290 – Tax on service and other activities.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19401 – Minimum nexus thresholds for apportionable activities and selling activities.
• WAC 458-20-19402 – Single factor receipts apportionment.
• WAC 458-20-224 – Service and other business activities.

Player salary and compensation

Players may receive wages, bonuses, or other compensation from their team or governing organization.

Reporting requirements

Wages paid to employees are not subject to B&O tax. However, if compensation is paid to a business entity (for example, a personal services company representing the player), that entity may be subject to Service and Other Activities B&O tax on income earned for services performed in Washington.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington.

If the business is unable to attribute the service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.290 – Tax on service and other activities.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19401 – Minimum nexus thresholds for apportionable activities and selling activities.
• WAC 458-20-19402 – Single factor receipts apportionment.
• WAC 458-20-224 – Service and other business activities.

Team fees for participating in tournaments

Teams or governing organizations may receive payments for participation in tournaments, competitions, or related promotional events.

Reporting requirements

Compensation received for participating in tournaments in Washington is generally subject to Service and Other Activities B&O tax.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington.

If the business is unable to attribute the service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page.

References

• RCW 82.04.067 – Substantial nexus—Engaging in business.
• RCW 82.04.290 – Tax on service and other activities.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19401 – Minimum nexus thresholds for apportionable activities and selling activities.
• WAC 458-20-19402 – Single factor receipts apportionment.
• WAC 458-20-224 – Service and other business activities.

Team or player fines

Leagues or governing organizations may impose fines on players or teams for rule violations or disciplinary matters.

Reporting requirements

Penalties or fines are considered gross income from engaging in business and are subject to Service and Other Activities B&O tax.

How is service income attributed?

Generally, service income is attributed to Washington based on where the customer receives the benefit of the service. If the business can reasonably determine the amount of a specific benefit received in Washington, it must attribute that receipt to Washington.

If the business is unable to attribute the service income to the location where the customer receives the benefit of the service, see the series of steps for attributing income on the Attributing service income page

References

• RCW 82.04.080 – “Gross income of the business.”
• RCW 82.04.290 – Tax on service and other activities.
• RCW 82.04.460 – Apportionable income—Taxable in Washington and another state.
• RCW 82.04.462 – Apportionable income.
• WAC 458-20-19401 – Minimum nexus thresholds for apportionable activities and selling activities.
• WAC 458-20-19402 – Single factor receipts apportionment.
• WAC 458-20-224 – Service and other business activities.

Ride-share drivers

A ride-share driver is an individual or business that provides transportation in their private vehicle. Ride-share drivers often are connected with customers through an online ride-share platform.

Reporting requirements

Gross income from transporting others for hire within the state of Washington is subject to public utility tax (PUT) under either the Motor Transportation or Urban Transportation classification. This tax is due instead of the business & occupation (B&O) tax.

The tax on transporting others for hire is generally due only on those trips that begin and end within Washington. To find out under which transportation classification to report, use the Motor & Urban Transportation Lookup Tool.

References

• RCW 82.16.010 – Definitions.
• RCW 82.16.020 – Public utility tax imposed-Additional tax imposed-Deposit of moneys.
• WAC 458-20-180 – Motor carriers.

Peer-to-peer car owners

A business or individual who provides their private vehicle for others' use for a fee is a peer-to-peer car owner. Peer-to-peer car owners are usually connected with customers through an online peer-to-peer sharing platform.

Reporting requirements

The gross income from sharing a vehicle peer-to-peer is taxable under the Retailing B&O tax classification and retail sales tax. The peer-to-peer sharing platform generally collects and submits the retail sales tax on behalf of the vehicle owner. Please see our Marketplace sellers page for detailed reporting instructions.

References

• RCW 46.74A.010 – Definitions.
• RCW 82.04.050 – "Sale at retail," "retail sale."
• RCW 82.08.020 – Tax imposed-Retail sales-Retail car rental.

Parking Revenue

For information about how parking revenue is taxable, please see our Parking Fees article.