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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Adaptive housing for disabled veterans

Disabled veterans who receive an adaptive housing grant from the U.S. Department of Veterans Affairs can receive a refund of up to $2,500 of state sales tax paid on construction costs. The refund applies to sales tax paid for labor and/or materials for the adaptive housing project. The statewide annual limit for all refunds is $125,000 every fiscal year (July through June).

This chart shows how much has been refunded so far, and how much remains available for refund for the current fiscal year: 

Fiscal year cap Amounts refunded* Amount remaining this fiscal year
(July 2024 - June 2025)
$125,000 $0 $125,000

*Includes the amounts our department already refunded, and the amounts we approved for refund.


How to get a refund

Adaptive housing grant recipients can request a sales tax refund from the Department of Revenue. You do not need to request a sales tax refund from the seller.

You will need to include the following items with the refund application:

  • Copy of grant award letter from the U.S. Department of Veterans Affairs.
  • Contracts for installation/construction of adapted housing.
  • Invoices for qualifying material purchases.

Reference

RCW 82.08.0207 - Exemptions—Adapted housing—Disabled veterans—Construction.