ITA

Motor vehicle fuel sales

Motor vehicle fuel is gasoline or other in flammable gas or liquid that is used for the propulsion of motor vehicles. Motor vehicle fuel includes the following:

• Gasoline
• Gasohol
• Diesel

Sales of motor vehicle fuel are not subject to retail sales tax; however, special fuel taxes do apply. Fuel taxes are paid to the distributor when fuel is purchased, and are passed on to the consumer. The sale of motor vehicle fuel is reported under the retailing and retail sales tax lines on the excise tax return.

The sale of goods through a consignment arrangement is taxed in the following manner:

A business making retail consignment sales must collect sales tax. Generally, consignment sellers remit sales tax directly to the Department (on behalf of the owner of the consigned goods). Examples of items sold on consignment at convenience stores and gas stations include crafted items such as handmade greeting cards and handmade jewelry.

Litter tax

Litter tax is imposed on those industries whose products are reasonably related to the litter problem. The tax applies to manufacturers, wholesalers, and retailers of products falling into the following thirteen categories:

Good record keeping is an important element of running a successful business. The law requires businesses to keep complete and adequate records for a period of at least five years. In general, records should be kept that provide:

• The amount of gross receipts and sales from all sources, including barter or exchange transactions.
• Supporting documentation for all deductions, exemptions, or credits claimed.

Other important records to keep include:

Audits are a routine procedure used to determine whether state excise taxes are being reported and paid correctly. The majority of businesses audited by the Department are chosen using statistical methods. An audit period generally covers four years plus the current reporting period.

During the audit, the auditor reviews the business records to verify that taxes were properly reported. A review includes:

Guided hunting and fishing trips are amusement and recreation activities and therefore classified as retail sales. Persons providing guided hunting and fishing trips are required to collect and remit sales tax on their charges for this service. It doesn't matter whether the hunting or fishing guide provides the necessary equipment or gear to the customer, or the customer uses his or her own equipment and gear.

Vessel deconstruction services are exempt from sales/use tax. This exemption expires Jan. 1, 2025. (RCW 82.08.9996, RCW 82.12.9996).

Qualifying deconstruction services:

To qualify for the exemption, the deconstruction services must be performed at one of the following:

In Washington, nonprofit organizations are generally taxed like any other business. They must pay business and occupation (B&O) tax on gross revenues generated from regular business activities they conduct. They must pay sales tax on all goods and retail services they purchase as consumers, such as supplies, lodging, equipment, and construction services. In addition, nonprofit organizations must collect and remit retail sales tax on their sales of goods and retail services.

Convenience stores and gas stations purchase many items that will be resold during the regular course of business without intervening use. These items may be purchased without payment of sales tax.

In order to purchase items without paying sales tax, the purchaser (store or gas station owner) must provide the seller with a reseller permit. The reseller permit is a document that validates goods are being purchased for resale in the regular course of business without intervening use by the business.

Small Business B&O Tax Credit (Credit ID 815)

Businesses whose B&O tax liability is below a certain level are entitled to a credit. The credit varies depending on the amount of B&O tax due (the total of all classifications) after all other B&O tax credits have been taken. A small business B&O tax credit worksheet is available if you are file a paper return and are eligible for the credit. The credit is automatically calculated if you returns electronically.