What is the rental car tax?
It is a tax paid by the consumer on the rental of a passenger car for a period of less than 30 days.
How do I pay the tax?
The rental company reports the tax to the Department of Revenue on a Rental Car Tax Addendum.
What rate do I pay?
The rental car tax is in addition to the retail sales tax. The rates are:
|State rental rate||.059|
|County rental rate||
.01 (Franklin, Pierce, King, Kittitas, and Spokane Counties)
.02 (King County Stadium Tax) See note below
|Regional Transit Authority (RTA)||.008|
What are the funds used for?
|State rental rate||Deposited into the multimodal transportation account per RCW 47.66.070.|
|County car rental rate||After state administrative costs, local receipts are distributed to counties for construction or operating public sports stadiums or youth or amateur sports activities or facilities.|
|King County rental rate||
After state administrative costs, receipts are distributed to King County for bonds or related design and preconstruction costs for a professional baseball stadium in Seattle.
Note: The King County Stadium Tax expired October 1, 2011. Effective tax rates for car rentals in King County (both RTA and Non-RTA) will therefore be reduced by 2 percent. Businesses must continue to collect the additional 2 percent tax on car rentals through September 30, 2011.
|Regional Transit Authority||Devoted to financing a high capacity, rapid transit system.|