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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Swimming pools

This content clarifies when stand-alone swimming facilities are required to collect sales tax. 

Note: We do not consider stand-alone swimming facilities to be athletic or fitness facilities. The content we describe here only applies to stand-alone swimming facilities (city pools, private pool facilities, etc.); this content does not apply to swimming pools at athletic or fitness facilities (AFF).

What activity charges are subject to sales tax?

Under a 2016 law, stand-alone swimming facilities must collect sales tax on charges for the following activities:

  • Recreational or fitness swimming that is open to the public such as open swim and lap swimming.
  • Special events during open swim time such as ‘kid’s night out’ and pool parties.
  • Pool parties for private events such as birthdays, family gatherings, and employee outings.
  • Pool rental (i.e. lane rentals) while the pool is open to the public.

Retailing business and occupation (B&O) tax also applies to these charges.

What activity charges are not subject to sales tax?

The following activity charges conducted at a stand-alone swimming facility are not subject to sales tax:

  • Swimming lessons.
  • Joining a swim team or swim club.
  • Participating in swim meets or competitions.
  • Renting the pool/lanes (i.e. to a swim team or the organizer of a swim competition) when the pool is not open to the general public.

Generally, income that you receive from these activities is subject to B&O tax under the Service and Other Activities classification. However, municipalities (e.g. cities, towns, counties, etc.) that operate swimming pools should refer to WAC 458-20-189 to determine if their activity qualifies as an enterprise activity.

For more information, call us at 360-705-6705.