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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Main Street Tax Credit Program

Issue Date

Intended audience: Registered businesses or persons contributing to a Main Street Organization.

Washington law provides a credit against the business and occupation tax (B&O) and the public utility tax (PUT) for approved contributions that are made by a business to a Main Street Organization or the Main Street Trust Fund. Effective Oct. 1, 2021, several changes are made to the Main Street Tax Credit Program.

What is new?

  • The statewide cap for approved credits has increased from $2.5M to $5M. Therefore, the department will re-open the 2021 application process at 8 a.m. on Oct. 1, 2021. The online application will remain open until the $5M cap has been met.
  • Effective 2022, applications will open at 8 a.m. on the second Monday in January.
  • Credit earned for contributions made in 2020 can be carried over for an additional two years, until Dec. 31, 2023. Carry-over of credit is not otherwise allowed.
  • Beginning with contributions made in 2021, the credit for contributions made to the Main Street Trust Fund increases from 50% to 75%.
  • Total credits allowed for contributions made to each qualified Main Street Organization has increased from $100K to $160K in a calendar year.

The expiration date is Jan. 1, 2032.

Questions?

Please visit our Credits page or call 360-705-6705.

See SHB 1279, Chapter 112, Laws of 2021.