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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Lodging - nontransient (long-term)

The law states a person is a nontransient when the rental period is one month or more, or they remain in continuous occupancy for 30 days in a row or more when the rental period does not start on the first of the month.

A guest, resident, or other occupant who purchases lodging is a nontransient on the 30th day, even if they change rooms or lodging units during the continuous thirty-day period.

An occupant who contracts in advance and remains in continuous occupancy for the initial 30 days is considered a nontransient from the time they start occupying the unit. The business does not need to charge tax on charges for nontransient lodging. Additionally, income from nontransient rentals is exempt from B&O tax.

For more information, see our Tax Topic article titled Rental vs. License to Use Real Estate.

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