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TPS-TIE

Director fees subject to Business and Occupation (B&O) tax

Amounts received by an individual from a corporation for serving as a member of that corporation’s board of directors (director fees) are subject to the B&O tax. Corporate directors, while acting in that capacity, are not considered employees of the corporation whose board they serve on.

Director fees subject to B&O tax

All compensation received, in any form, for services rendered as a corporate director is subject to service and other activities B&O tax including, but not limited to:

Irrigation Districts Operating on US Government Property

It is common in Washington for irrigation districts to operate facilities owned by the Bureau of Reclamation (BOR), an agency of the US government. Does this relationship mean irrigation districts are exempt from sales and use tax on their purchases?

The department has determined that irrigation districts are not an instrumentality of the US government. Therefore, they do not qualify for a broad sales and use tax exemption for purchases made by the US government.

Foreign Diplomats Tax Exemption

Purchases made by foreign diplomats are generally exempt from retail sales tax if they use a valid Diplomatic Tax Exemption Card.

The U.S. Department of State issues Diplomatic Tax Exemption Cards. These cards allow cardholders to make certain purchases in the United States free from sales tax and other taxes imposed on the purchaser.

The cards have one of four distinct images of animals native to North America to indicate the level of tax exemption authorized by a particular Diplomatic Tax Exemption Card.

Personal property tax

Personal property tax

Everyone who uses personal property in a business must complete a personal property tax listing form. This listing must be filed with your county assessor’s office by April 30 of each year. Examples of personal property used in conducting business include, but are not limited to:

Common janitorial services

When you perform “janitorial services” that are regularly and normally performed by a commercial janitorial business, the income is subject to service and other activities business and occupation (B&O) tax. Retailing B&O and retail sales tax does not apply.

Examples of “janitorial services” include:

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