TPS-TIE

If you provide solid waste, hazardous waste, recycling, or salvage services, use this guide to understand how state taxes apply to you.

Updated October 2018

If the materials are taken to a landfill, transfer station, or other facility for disposal, the materials are considered “solid waste” regardless of whether the materials could be recycled.

Market conditions and other factors may cause businesses collecting materials to determine that disposing the materials is more economically viable than recycling or salvaging them.

This publication was created to assist persons in the horse industry to better understand Washington State taxes and how they apply to their business.

For more information or answers to questions about Washington excise taxes, please contact us.

Updated June, 2018

Content

Sales of horses may be made through claiming races, auctions, on the farm, or by individuals. All sales are considered retail sales unless otherwise specified. The sale must be reported under the Retailing B&O tax classification and the Retail Sales Tax classification.

Income derived from breeding activities or stud fees is taxable under the Service B&O tax classification.

Semen sold for artificial insemination of livestock is a retail sale, subject to the Retailing B&O tax. An exemption from the retail sales tax is available for sales of semen used to artificially inseminate livestock (RCW 82.08.0272).

Income received by businesses or independent contractors for training, jockeying, buggy driving, exercising, riding, showing, grooming, or shoeing/plating horses is taxable under the Service and Other Activities B&O tax classification.

The amounts received from purses, bonuses, awards, and prizes won within Washington State are subject to the Service B&O tax classification. No deductions are allowed for amounts paid to jockeys, trainers, or other costs of doing business.

Income received for boarding horses is subject to the Service and Other Activities B&O tax. The stable owner may not deduct the fees associated with veterinarian charges, farrier charges, transportation costs, etc., from the boarding gross income, unless the stable owner is acting as an agent on behalf of the horse owner and has no liability for payment of such expenses, and the stable’s books reflect the principal/agent relationship.

Sales of feed to horse owners: Sales of feed for horses are generally subject to the retail sales tax.

Income received for the sale of pharmaceuticals is subject to Retailing B&O tax and retail sales tax. Certain animal pharmaceuticals are exempt from retail sale tax when sold to farmers and veterinarians. To qualify for the exemption the animal pharmaceutical must be administered to a horse that is raised by a farmer for the purpose of producing an agricultural product for sale. Also, the animal pharmaceutical must be approved by the United States Department of Agriculture (USDA) or the United States Food and Drug Administration (FDA).