Generally, there are two classifications of B&O tax for veterinary businesses: Service and Other Activities classification and the Retailing classification. Retail sales tax also applies on retail sales unless there is a specific exemption.
The Service and Other Activities B&O tax classification applies to the gross income derived from Veterinary services.
All consumers, whether a business, independent contractor, or individual, are required by law to pay retail sales tax or use tax on taxable goods to be used in Washington. Use tax is due on items purchased for use in Washington, if retail sales tax was not paid. For example, tack purchased out of state, or through catalogs or magazines, is subject to use tax, if retail sales tax is not included in the bill. Geldings and spayed horses purchased out of state for use in this state are also subject to use tax. The use tax rate is the same as the retail sales tax rate.
Business & Occupation (B&O) Tax: The B&O tax is the tax applied to the gross amount received from conducting business. There are different reporting classifications for retail sales, wholesale sales, professional services, etc. Each classification has its own tax rate. Persons performing more than one activity may be subject to B&O tax under more than one reporting classification.
We know that tax reporting for hospitals can be a challenge. That's why we have compiled a list of common problems found during Department of Revenue audit examinations, as well as solutions to avoid these common pitfalls.
For medical clinics not operated by a hospital or under a hospital license, please refer to our Medical Clinics Guide.
Income is often reported under the wrong tax classification on the excise tax return.
Hospital income is subject to different tax classifications, depending on the:
To report your income correctly, become familiar with the common tax classifications for hospitals:
Hospitals often overlook uncashed checks and do not report them as unclaimed property.
When a hospital issues a high volume of checks, uncashed checks are sometimes missed. Unclaimed property can become "buried" in your outstanding check report because:
Hospitals do not understand what is covered under the nonprofit property tax exemption.
Hospitals are typically the most complex nonprofit property tax exemption. The exemption includes:
The Indian Tax Guide was created to assist persons engaging in activities within Indian country or with Indian tribes or tribal members. The information contained in this guide provides guidance for activities such as the sales of tangible personal property or retail services, and treaty fishery activity or the exercise of other treaty rights.
What are recyclable or salvaged materials?
Materials that are economically viable for further use and that are not delivered to a landfill or other disposal site as solid waste.
Are charges for collecting recyclable/salvaged goods subject to the solid waste collection tax?
No. Charges for the collection of recyclable materials are not subject to the solid waste collection tax.
How are recycling/salvage businesses taxed?
The following taxes apply:
These three examples show how taxes apply to solid waste, recycling or salvage collection and haul away.
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