TPS-TIE

This bail bond agency guide to excise taxes was created to assist persons engaged in writing bail bonds to better understand applicable Washington State taxes.

Updated April 2020

Contents

Common terms

Bail bond agency: A business licensed under chapter 18.185 RCW that sells and issues corporate surety bail bonds or that provides security in the form of personal or real property to ensure the appearance of a criminal defendant before the courts of this state or the United States.

Overview

The B&O tax is a gross receipts tax, assessed against an entity for conducting business in Washington. It applies to the gross income of the business. No deduction is allowed for labor, materials, taxes, or other costs of doing business.

The appropriate B&O tax classification depends on the nature of the business activity. Different tax classifications with different rates apply for various business activities. Businesses performing more than one activity may be subject to tax under one or more B&O tax classifications.

Generally, income is attributed to where the customer is located. For more information, see our guides regarding Apportionment and Out of state businesses reporting thresholds and nexus.

Retail sales tax/use tax

Retail sales tax must be collected on all retail sales and reported and remitted to the department.
In addition to state retail sales tax, many local taxing jurisdictions impose local retail sales taxes. WAC 458-20-145 provides information about the sourcing of retail sales for local retail sales tax purposes.

A bail bond agent or subagent must register with the department if annual gross business income is greater than $12,000. To register with the department you will need to complete a Business License Application.

All businesses must keep complete and accurate records from which the department may determine any tax for which the business may be liable. Such records must be preserved for a period of five years.

In general, records are to be kept, preserved, and presented upon request of the department which will demonstrate:

Audits are a routine procedure used to determine whether state excise taxes have been reported and paid correctly. The majority of businesses audited by the Department of Revenue (DOR) are chosen using statistical methods.

The period of time covered by an audit is generally four years plus the current reporting period. An audit by the DOR generally includes a review of all of the following reported on the Combined Excise Tax Return:

Bail bond agencies, and agents are required to register with various federal, state, and county agencies. The agency and reason for registration is listed below:

The Department of Revenue offers many services to make reporting your taxes as convenient as possible. The following list contains a sampling of the department’s services.

Internet

Our website offers a wide variety of information and resources for your business: