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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Gratuities

Gratuities received voluntarily are exempt from retail sales tax and Retailing B&O tax. However, when a business adds the gratuity amount to the check, bill, receipt, etc., retail sales tax and Retailing B&O tax apply. When the gratuity is not clearly voluntary, it becomes part of the selling price subject to tax.

For more information please see our Gratuities tax topics article.