What is the State and Local Use Tax?
Use Tax applies to the value of all articles used by businesses (as opposed to being sold to a customer) on which no Washington sales tax has been paid. As with sales tax, each taxing authority such as the state of Washington, cities, and regional authorities such as the Regional Transit Authority can add to the use tax charged. The total tax is collected and then distributed to each of the taxing authorities. Section III helps the state get the tax dollars to the proper authority.
Write the value of articles used on line 10 in the Gross Amount box.
- Multiply the Gross Amount by the rate shown and write the amount in the Tax Due box.
Lines 11 - 13
Write the location code(s) and rate(s) in the appropriate boxes for each location in which use tax is due. For location codes and rates, refer to the List of Local Sales and Use Tax Rates & Changes or to look up a specific address, go to the Department's Tax Rate Lookup Tool (GIS).
Note: If you need additional space to report local use taxes, please use the Local Sales and Use Tax Addendum (pdf).
Write the value of articles for each location code in the Value of Articles boxes.
Total the Value of Articles amounts and write this amount in the Total Value of Articles box. This amount must be the same as line 13, Gross Amount.
Multiply each value of articles amount by the local rate. Write the amount(s) in the Tax Due City or County box. Do not include Motor Vehicle Sales/Leases or Litter taxes here.