Lodging businesses often provide other services in addition to lodging.
Some amenities are defined as retail sales or services, so they are subject to the Retailing business and occupation (B&O) tax and you must collect sales tax; lodging taxes may also apply. Examples of retail services common to lodging businesses include:
You may need to report the following taxes, in addition to state and local sales tax. To determine which lodging taxes apply to your business location, you may use our Tax rate lookup tool or see lodging sales rates.
Your business does not owe tax on tips or gratuities that customers give voluntarily. However, if you add a mandatory tip or gratuity to the bill, the charge becomes part of the selling price, and you need to charge tax on that amount. Such amounts are also subject to B&O tax.
The department does not consider a gratuity voluntary when the business states it will add a gratuity charge.
In addition to the state business and occupation (B&O) tax, some Washington cities impose a B&O/public utility tax. Our department does not administer these city taxes. You should contact each city or town you conduct business in about their specific taxes.
We assign most lodging businesses either a monthly or a quarterly filing frequency. All taxpayers must file and pay their taxes electronically.
The tax classifications listed below are commonly used on a lodging business tax return:
Yes, retail sales tax applies on fuel surcharges (and any similar itemized charges) added onto the price of a fishing charter.
Many businesses and organizations offer entertainment in the form of games. The business or organization may own the games or receive commission for allowing the games to be placed on their property.
Commissions: Income for allowing the placement of vending machines or games is subject to B&O tax under the Service and Other Activities classification.
Farmworker housing: Year-round or seasonal housing for agricultural employees provided by one of the following:
This article clarifies the taxability of income received by nonprofit animal rescue organizations from pet adoption fees, donations, sales, and fundraising activities. It doesn't address the sales of pets by animal breeders, pet stores, or other businesses.
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