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.
Our web site offers a wide variety of information and resources for your business:
For specific questions about Washington excise taxes, please contact us.
Updated January 2015
Your business is considered a private mailing business if:
This tax classification applies to you if there are sales (or rental) of goods and certain services to customers. You need to report the income of such sales under this classification. The Retailing B&O tax rate is 0.471 percent (.00471) of your gross receipts.
In addition, retail sales tax must also be collected on all sales subject to the retailing classification of the B&O tax, unless a specific retail sales tax deduction or exemption applies.
If your business sells retail products or provides retail services to a customer then you must collect retail sales tax. The income from retailing activity is reported under the Retailing B&O tax classification. The Retailing B&O tax rate is .471 percent (.00471) of your gross receipts.
Use tax is a tax on the use of goods or certain services in Washington when sales tax has not been paid. Goods used in this state are subject to either the sales or use tax, but not both.
Use tax is based on the value of the article or service and includes charges for labor, materials, freight, handling, or any other amount paid or accrued when separately stated on an invoice.
Examples of when use tax is due include:
If you purchase items for resell, you need to complete and submit a reseller permit to the seller (person or business you went through). If the seller does not receive a properly completed reseller permit they must charge you (the buyer) retail sales tax.
Reseller permits may only be used to purchase property or services that are:
If you sell the following items, you are subject to litter tax:
These products contribute to Washington’s litter problem. This tax is reported and paid on your Excise Tax Return. Visit Washington Administrative Code (WAC) 458-20-243 for additional information.
For assistance or questions call 360-705-6705.
If you have a tax-related question specific to your business, you may request more specific help. You can email the department at rulings@dor.wa.gov and we will send you a binding tax ruling, which is a letter that describes your tax obligation in greater detail. You must include the business name and other business details you find important. Tax rulings are binding on both the taxpayer and the Department of Revenue.
Business and Occupation Tax: The B&O tax applies to you if you conduct business activities in Washington. The tax is a gross receipts tax. This means there are no deductions for labor, materials, taxes, or other costs of doing business. There are different reporting classifications for various business activities. Each classification has its own tax rate. If you perform more than one activity, you may be subject to B&O tax under more than one classification.
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