Ride-share & parking

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.