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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Sales on Tribal Land

Washington state recognizes 32 federally recognized Indian Tribes. Please see the Government Office of Indian Affairs website for more information. Enrolled members or citizens of these tribes are exempt from retail sales tax when receiving retail goods and services on their tribe’s reservation land, trust land, or certain federally restricted lands located outside their reservation.  

Washington state has entered into compacts with multiple tribes to distribute a portion of state tax revenues to the tribes for retail sales transactions made between non-members in certain areas. These areas are identified by location codes that specify the name of the compacted tribe and neighboring city or county. For a full list of compacted tribes, please see our retail tax compacts webpage.

For sales on tribal land, please use the tax rate lookup tool to verify the location code associated with the delivery or service address. The tax rate lookup tool contains the most up-to-date information and is updated on January 1, April 1, and July 1 of each year. Businesses should update their tax software to match the department’s most current rate and boundary file.

Who does this apply to?

Businesses making sales, delivering goods, or performing retail services on or to tribal land.

Sales in Indian country follow these guidelines:

Retail sales to non-tribal members on tribal land

Sales of retail goods and services to non-tribal members on tribal land are reported to specific location codes, which indicate that funds must be distributed to a compacted tribe. Using incorrect location codes may result in funds being collected at the wrong rate and distributed incorrectly.

For a list of location codes for compacted tribes please see our retail taxes compacts webpage.

Example: A retailing store not owned by a tribe or tribal member sells apparel at the Quil Ceda Village. This business should report sales to non-members of the Tulalip Tribes to location code 4233 – Tulalip Tribes - Snohomish-PTBA Non-RTA. Businesses should also contact tribal and local tax authorities for any other tax reporting obligations.

Example: An online retailer delivers hair products to a non-tribal member residing within the Puyallup Tribe’s reservation. The tax rate lookup tool identifies location code 2741 – Puyallup Tribe- Tacoma for the customer’s address. The retailer should collect and report sales tax at the current rate listed for location code 2741 – Puyallup Tribe- Tacoma.

Retail sale to a tribe, tribal member, or tribal owned entity on tribal land

If a sale is made to an enrolled tribal member on their tribal land, that sale is generally not subject to retail sales tax. The seller must complete and retain a Tax Exemption for Sales to Tribes form. Please see this form for further instructions.

Retail sales tax must be collected if a Tax Exemption for Sales to Tribes form cannot be completed.

Example: Business A is a non-tribally owned business selling trading cards during a convention at tribally owned resort (resort). The resort is located on land compacted to the Washington recognized tribe. A tribal member buys cards from Business A, but Business A cannot complete the Tax Exemption for Sales to Tribes form. Business A should collect retail sales tax and report it to the proper location code identified by the tax rate lookup tool.

If the tribal member later provides qualifying identification, they can request a refund of retail sales tax from Business A or from the department.

For more information, see our sales to Indians in Indian country landing page.