Retail sales tax applies to sales of merchandise that are sold through a vending machine. Gross receipts are subject to retailing B&O tax.
Merchandise includes items such as cigarettes, toiletries and toys.
The person that owns the machine should report and pay the tax. The owner may back out the amount of sales tax from the total amount received in the machines to arrive at the gross taxable amount.
Based on your business activities the taxes below may apply to your business.
The carbonated beverage tax (CBT) was repealed by Initiative 1107, effective December 2, 2010. Businesses are not subject to the carbonated beverage tax after that date.
In addition to collecting the state and local sales tax, sellers in certain locations may be required to collect additional local taxes.
Unclaimed property is money or intangible property held for a period of time with no owner contact. The Washington Unclaimed Property Act protects unclaimed property until it is returned to its rightful owner or their heir. The Department of Revenue acts as custodian for safe keeping of the property until the rightful owner can be located. When reported to the Department, abandoned property is available for refund to the owner or legal claimant indefinitely.
School districts are considered municipal corporations and are required to collect and remit:
School districts are not eligible to make purchases using a reseller permit. Because school districts do not typically collect retail sales tax, they must pay retail sales tax on all retail items they purchase (see below).
School districts must pay retail sales tax or use tax on the following goods and services:
When meals are prepared offsite and sold to the school district, retail sales tax applies on the charge for the meals and the seller is subject to B&O tax under the Retailing classification on this income.
Income for the management of a food service program is subject to B&O tax under the Service and Other Activities classification. Such contracts are not subject to retail sales tax.
Sales of meals by the school to students, faculty, and staff are not subject to retail sales tax.
Nonenterprise activities are activities not financed and operated in a manner similar to a private business. Activities include all sales of goods and services that are exclusively governmental in nature, and related to providing public education.
Nonenterprise activities also include activities funded by less than 50% of user fees or charges to consumers.
For example, the cost of maintaining recreational facilities that a school may lease to organizations or groups is rarely, if ever, funded more than 50 percent with amounts charged to those groups or organizations.
Enterprise activities are activities financed and operated in a manner similar to a private business and includes activities in competition with private businesses. They are subject to tax in the same manner as a private business. Activities include sales of goods and services that are not exclusively governmental and are not directly related to providing public education.
The activity must also be funded by over 50% of user fees to be considered an enterprise activity. See non-enterprise activities for how to determine the percentage.
The school is considered the consumer of all goods that pass through a student store operated by the school. Therefore, the school is not eligible to use a reseller permit and must pay retail sales tax at the time of purchase on all taxable goods sold at student stores, such as student supplies, soft drinks, etc.
The school does not report the sales from the student store as these sales are not taxable and retail sales tax is not collected from students.
Sales made by Associated Student Body (ASB) organizations, Parent Teacher Associations (PTA), Parent Teacher Student Associations (PTSA), and Booster Clubs on a regular recurring basis are taxable in the same manner as sales made by regular business operations. These events include, but are not limited to, sales at the student store, concession stands at sporting events, ongoing sales of spirit wear, and weekly or monthly popcorn sales.
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