TPS-TIE

When does litter tax apply?

Litter tax applies when sales of food and beverages are:

• Assumed that the food will be eaten away from the seller's place of business.
• Packaged for sale in take-out or to-go containers.
• Wrapped in a way that makes it easy to carry the food away from the seller’s premises.
• Catered meals and beverages served with disposable plates, forks, spoons, cups, etc.

When does litter tax not apply?

Litter tax does not apply when food or beverages are served:

Your business overview

Customers use your business to store items inside portable storage containers. These containers can be left at the customer’s location (on-site self storage) or be taken back to your warehouse for safekeeping.

Portable self-storage business uses storage containers, trucks and lifts to load and unload storage containers to and from the trucks.

For a fee, your business will move the storage containers from one place (house or office), to a different place. This is done under the customer’s direction (curb-to-curb delivery service).

Businesses often purchase tangible personal property that is, or becomes, affixed to the ground and/or a structure. In some cases, these items become part of the real property. For example, a liquid storage tank may be purchased, delivered to a business site, and affixed in such a way as to be functional.

When a business is sold, the portion of the sale attributed to the value of the items included in the sale are subject to either retail sales tax or real estate excise tax.

What are termination fees?

Termination fees, also known as cancellation fees, are charges consumers must pay when they decide to end their contract or agreement prior to the agreed upon date. The fee(s) can can vary in amount, from a flat fee to several months’ worth of payments.

Are termination fees taxable?

Generally, yes. The amount that a vendor bills a customer for the early termination of a contract is taxable under the same tax classification used for reporting the payments made under the contract.

Starting a Business

When does a tribal member/citizen owned business need to apply for a business license or register with the Department of Revenue?

Tribal members/citizens must obtain a state license with the Department of Revenue if they are conducting business outside of their Indian country.  Outside of Indian Country the tribal member is subject to state regulations, except for treaty activities.  They must register with the Department to obtain a UBI number if they are  making sales of non-Indian goods to non-Indians, for which they must collect and

In the spirit of the Centennial Accord and in accordance with RCW 43.376 “Government-To-Government Relationships with Tribes” the Department recognizes the inherent authority of tribes to regulate and tax activities within its Indian country.  In addition, federal Indian law and policy supports the rights of self-governance for Indian Tribes.  Under these same principles, the state also has a recognized interest in taxes on non-Indian/state citizens.

Retail recreational services & athletic and fitness facilities

On January 1, 2016, changes in tax law take effect making it easier for these industries to understand how taxes apply to the activities they provide to consumers. The new law simplifies the taxation of recreational services and physical fitness services provided to consumers.

Is the rental charge for portable toilets subject to sales tax?

No, portable toilet rentals are not subject to retail sales tax. The rental charge is not considered to be a true rental since the owner is required under state law to service the unit while being used at the customer’s location.

How is the charge for portable toilets taxable?

The gross income received for the following services is subject to business and occupation (B&O) tax under the service and other activities classification:

The taxability of meals provided to residents at a senior living or care facility depends on whether the facility provides healthcare services.

This article discusses facilities that provide meals to residents and their visitors (not the general public).

No healthcare services provided

Meals provided by an independent senior living residence that is not a licensed boarding home and that does not provide healthcare services, are subject to retail sales tax.

Effective January 1, 2016: Race organizers don’t need to collect retail sales tax on fees charged to participate in running, biking, and racing events.

The race organizer is subject to the B&O tax under the Service and Other Activities classification on the participation fees it receives for such events, unless a specific B&O tax exemption applies. Retail sales tax is due for all registration fees for races that took place prior to January 1, 2016.