WAC 258 | Washington Department of Revenue

Revised Codes of Washington (RCW)
Document Reference	Description	Date of Issue	Status
82.04.070	"Gross proceeds of sales."
82.04.090	"Value proceeding or accruing."
82.04.260	Travel Agents

Washington Administrative Codes (WAC)
Document Reference	Description	Date of Issue	Status
458-20-258	Travel agents and tour operators.Effective 9/2/90
458-20-258	Travel agents and tour operators describes the business and occupation (B&O), retail sales, and use tax responsibilities of persons providing travel agent and/or tour operator services. The Department is amending this rule to reflect current law and clarify the tax reporting responsibilities of persons engaged in travel agent and tour operator businesses.

Special Notices (SN)
Document Reference	Description	Date of Issue	Status
N/A	New Apportionment Method
N/A	Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients
N/A	Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income
N/A	B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)
N/A	Tour Providers and Tour Operators
N/A	Tour Providers and Amusement & Recreation Services
N/A	New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

Washington Tax Decisions (WTD)
Document Reference	Description	Date of Issue	Status
1 WTD 161	USE TAX; TRAVEL AGENCY; CONSUMABLE ITEMS; TRAVEL PUBLICATIONS. A travel agency is subject to use tax upon the use of travel magazines, trade journals, the official Airlines Guide and promotional materials where retail sales tax was not paid when the items were acquired. Where a seller has not collected the full amount of the retail sales tax, the Department may collect the tax from the buyer.RCW 82.08.050.
10 WTD 270	SERVICE B&O TAX -- TRAVEL AGENT COMMISSIONS -- TOUR OPERATORS -- TOUR PACKAGES. Travel agents and tour operators provide identifiably different services for their clients/customers and are consequently liable for different business taxes.SINCE THE ISSUANCE OF THIS DETERMINATION, THE DEPARTMENT HAS RESOLVED THE TAX CLASSIFICATION BY PROMULGATION OF WAC 458-20-258, ATTACHED. RULE 258 NOW DESCRIBES THE CORRECT TAX CLASSIFICATION FOR SUCH ACTIVITIES.
11 WTD 395	BUSINESS AND OCCUPATION TAX -- TRAVEL AGENTS AND TOUR OPERATORS -- SALE OF PRE-PACKAGED TOURS -- "AT RISK." When a taxpayer sells pre-packaged tours put together by someone else who is "at risk" for charges by third party providers, the taxpayer will be taxed like a travel agent under the special travel agent rate when (1) it is paid like a travel agent by way of commissions or internal discounts, and (2) will not be "at risk" for payment to third party providers if travelers cancel their journeys.
19 WTD 312	SERVICE B&O TAX – TOUR OPERATOR – TRAVEL AGENT COMMISSIONS.The gross receipts of a tour operator are taxable as service B&O without any deductions except for pass-through expenses.Commissions paid to travel agents are not pass-through expenses.Therefore, a tour operator must include commissions paid to travel agents when reporting its gross receipts for service B&O tax purposes.
6 WTD 273	B&O TAX -- SERVICE -- DEDUCTION -- ADVANCE/REIMBURSEMENT -- TOUR OPERATOR -- AGENT OF TOURIST -- PAYMENTS TO THIRD PARTY SERVICE PROVIDERS. Where a tour operator has a contractual arrangement with the tourist to be its agent in securing the services of third providers per packaged tours, the tour operator's payments to the service providers are deductible from the measure of the tax under Rule 111's advance/reimbursement principle.