Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

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Credits

Small Business B&O Tax Credit (Credit ID 815)

Businesses whose B&O tax liability is below a certain level are entitled to a credit. The credit varies depending on the amount of B&O tax due (the total of all classifications) after all other B&O tax credits have been taken. A small business B&O tax credit worksheet is available if you are file a paper return and are eligible for the credit. The credit is automatically calculated if you returns electronically.

B&O Tax Credit for Syrup Tax Paid (Credit ID 945)

A retailing business that pays syrup tax when buying carbonated beverage syrup to make carbonated fountain drinks can claim a B&O tax credit. The credit increases each year. The following requirements must be met in order to take this B&O tax credit:

  • Syrup must be used by the buyer in making carbonated drinks sold by the buyer.
  • The credit must be claimed in the tax reporting period when the syrup was purchased.
  • Any unused credit may be carried forward to future reporting periods for a maximum of one year (12 months from the end of the tax reporting period when the credit was earned).
  • No credit may exceed the B&O tax due.
  • No refunds for credits.


The credit must be reported under the “Credits” section of the tax return when claimed.