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ITA
Valuing asphalt and aggregates used in public road construction
Intended audience: Public road contractors who manufacture or extract asphalt or aggregates.
What’s new?
Effective August 1, 2023, there is a new method for valuing asphalt and aggregates manufactured or extracted by a public road contractor and then used by the contractor in a public road construction project taxable under RCW 82.04.280(1)(b).
Sales and use tax exemption for purchases of mobility enhancing equipment
Intended audience: Complex needs patients.
Effective August 1, 2023, there is a sales and use tax exemption for the purchase of mobility enhancing equipment used by a complex needs patient. This equipment must meet the user’s specific and unique medical, physical, and functional needs and capacities for basic activities when medically necessary to prevent hospitalization or institutionalization.
Medicaid Incentive Payments
Qualifying hospitals, managed care organizations, and accountable communities of health may claim a B&O tax deduction for certain Medicaid incentive payments as follows.
Qualifying hospitals
A hospital can take a deduction if it meets one of the following:
Senior living communities – tenant meals – sales and use tax exemption
Intended audience: Senior living communities.
Beginning July 23, 2023, the value of meals furnished to independent living tenants of senior living communities as part of their rental agreement is not subject to sales or use tax when there is no separate charge for the meals. However, senior living communities must still pay B&O tax on the fair selling price of such food, drink, and meals under the service and other activities B&O tax classification or under the classification which otherwise applies to that community.
How to calculate tax due on meals provided by senior living communities for July 2023 & Q3/2023
Effective July 23,2023, the value of food, drinks, meals furnished to tenants of senior living communities as part of their rental agreement are not subject sales or use tax when charges for such food, drinks, meals are not separately stated. However, the value of such meals is subject to business and occupation (B&O) tax under the Service and Other Activities classification.
Business and occupation (B&O) tax rate increase for Contests of Chance ($50,000 or more a year) and Parimutuel Wagering
Intended audience: Businesses operating contests chance and parimutuel wagering.
Effective July 1, 2023, the tax rate imposed on businesses operating Contests of Chance ($50,000 a year or greater) increases from 1.63% to 1.7% through June 30, 2024, and 1.76% thereafter. The tax rate imposed on businesses engaging in Parimutuel Wagering increases from from .13% to .20% through June 30, 2024, and .26% thereafter.
How do I report my income beginning July 1, 2023?
Gambling Contests of chance (less than $50,000 a year)
Aviation fuel sales reporting for airport funding purposes
Intended audience: Sellers of aviation fuel.
What is happening?
Starting July 1, 2023, a new worksheet and new lines codes will be available on the excise tax return for sellers of aviation fuel. These lines codes will be used to report the amount of aviation fuel reported under the local sales/use, petroleum products, hazardous substance, and oil spill prevention/response tax classifications.
