Is the rental charge for portable toilets subject to sales tax?
No. The income received for the following services is subject to business and occupation (B&O) tax under the Service and Other Activities classification:
- Delivery of the portable chemical toilet to the customer’s location.
- Maintaining the unit while at the customer’s location (as required by state law).
- Picking up the unit at the end of the contract.
The owner of the portable toilet is required under state law to service the unit while being used at the customer’s location. Because of this law, portable toilets are not considered to be a true rental.
Are portable toilets and maintenance supplies subject to sales tax?
Yes. The owner of the portable toilets must pay sales tax or use tax on each unit, because they are not re-renting the units to the customers. The owner must also pay sales tax or use tax on the chemicals, toilet paper, and other supplies required to maintain the units.
More information on routine service requirements for portable toilets can be found in WAC 296-155-140.
Additional information on true rentals can be found in WAC 458-20-211.