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.

  1. Home
  2. Forms & Publications
  3. Publications By Subject
  4. Special Notices
  5. How Taxes Apply To Charges For Kiosk And Cart Spaces In Shoping Malls

How Taxes Apply to Charges for Kiosk and Cart Spaces in Shoping Malls

Issue Date

A kiosk or cart space is an unenclosed area located in the general spaces of a shopping mall. Kiosk or cart owners rent the space from the shopping mall.

A rental of real estate versus a license to use real estate

Since the cart or kiosk operator is not given exclusive dominion and control over the designated space, there is a presumption that the agreement between the mall and the kiosk or cart operator is a license to use real estate rather than an exempt rental of real estate.

Therefore, the income from a license to use real estate is subject to the business and occupation (B&O) tax under the service and other activities classification.

How to report receipts from mall cart and kiosk operators

Mall owners exceeding the $12,000 filing thresholds for taxable income are required to file an excise tax return to report receipts from kiosk and cart operators as outlined above. Mall owners may qualify for the small business B&O tax credit.

More information

If you have questions, call the Department of Revenue at 360-705-6705.