Taxicab owners renting their taxicabs to drivers must be registered with the Department of Revenue. They are obligated to collect and remit retail sales tax on the amounts received from the drivers for use of their taxicabs. In addition, B&O tax applies under the retailing classification.
Independent drivers who have a gross fare income of less than $12,000 annually, and have no other taxable income, are not required to register. See WAC 458-20-101.
For more information
If you have further questions, please contact us or write to Taxpayer Information and Education, Department of Revenue, PO Box 47478, Olympia WA 98504-7478.