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RCW 48.14.080 clearly states that insurers are subject to sales tax or use tax on tangible personal property, extended warranties, digital goods and codes, and retail services. It says:
- As to insurers, other than title insurers and taxpayers under RCW 48.14.0201, the taxes imposed by this title [the premiums taxes] are in lieu of all other taxes, except as otherwise provided in this section.
- Subsection (1) of this section [the exclusion] does not apply with respect to:
- Taxes on real and tangible personal property;
- Excise taxes on the sale, purchase, use, or possession of (i) real property; (ii) tangible personal property; (iii) extended warranties; (iv) [retail] services, including digital automated services as defined in RCW 82.04.192; and (v) digital goods and digital codes as those terms are defined in RCW 82.04.192.
All insurers and affiliates are responsible for paying either retail sales tax or use tax on goods and retail services used in their businesses. Use tax is due when goods or retail services are acquired without paying sales tax.
Example: If you purchased office supplies in Oregon for use in your Washington business, you owe use tax on those purchases. The use tax rate would be the same as the sales tax rate at the location the products are used.
Below is a list of some of the goods and retail services on which retail sales tax or use tax applies:
- Office furniture and artwork
- Office supplies
- Credit bureau services
- Extended warranties
- Computer hardware
- Computer software
- Reference materials
- Construction, repairs, and pest control services
- Telephone services
- Maintenance contracts
- Extended warranties
