Taxicab owners renting their taxicabs to drivers must be registered [1] with the Department of Revenue. They are obligated to collect and remit retail sales tax on the amounts received from the drivers for use of their taxicabs. In addition, B&O tax applies under the retailing classification.
Independent drivers who have a gross fare income of less than $12,000 annually, and have no other taxable income, are not required to register. See WAC 458-20-101 [2].
If you have further questions, please contact us [3] or write to Taxpayer Information and Education, Department of Revenue, PO Box 47478, Olympia WA 98504-7478.
Links
[1] https://dor.wa.gov/open-business/apply-business-license
[2] http://apps.leg.wa.gov/wac/default.aspx?cite=458-20-101
[3] https://dor.wa.gov/contact-us