Valet services are not subject to retail sales tax when both of the following conditions are met:
- The valet parking services are provided at a location where the valet is not also providing the parking lot or garage.
- There is no charge to the vehicle driver/owner for valet or parking services.
The income the valet service receives is subject to business and occupation (B&O) tax under the Service and Other Activities classification.
If the valet service is providing the parking lot or garage and charging the customer for the valet service, then this service is subject to retail sales tax. This is a charge for “Automobile Parking,” which is a retail sale (RCW 82.04.050). The income the valet service receives is also subject to B&O tax under the Retailing classification.