TPS-TIE

The rental or lease income received by a taxicab owner from an independent driver for use of the taxicab is subject to retailing B&O tax.

Income received by taxicab drivers (and taxicab owners operating their own taxicabs) for transporting passengers or property is subject to the public utility tax (PUT) under either the motor or urban transportation classifications. These classifications are defined in RCW 82.16.010 and outlined below.

Miscellaneous fees

Income received from miscellaneous fees (e.g., fuel surcharge, extra bag fee, additional passenger fee, airport fees, etc.) is subject to the PUT in the same manner as the fare income described above. Charges for these miscellaneous fees are not subject to retail sales tax.

Tips

Amounts received as voluntary tips are not subject to Washington’s taxes. However, if the tip is required or mandatory, it is subject to PUT tax as previously explained. Examples of required or mandatory tips include:

Taxicab owners

Taxicab owners renting their taxicabs to drivers must be registered with the Department of Revenue. They are obligated to collect and remit retail sales tax on the amounts received from the drivers for use of their taxicabs. In addition, B&O tax applies under the retailing classification.

State tax reporting for taxi drivers and related businesses

Motor & Urban Transportation Lookup Tool

State license endorsements:

Trucking is a multifaceted industry in the state of Washington. In addition to the hauling of goods into and through the state, many other business activities fall under the umbrella of “trucking” industry. These businesses include fuel stations, repair facilities, broker services, and leasing companies, to name a few.

Business and Occupation (B&O) tax: A gross receipts tax imposed on persons conducting business activities in Washington. There are different reporting classifications for various business activities. Each classification has its own tax rate. Persons performing more than one activity may be subject to B&O tax under more than one classification.

Registration & UBI number

Generally, every person doing a business activity in Washington must register with the state of Washington through the Business Licensing Service. Once registered, persons receive a nine-digit Unified Business Identifier (UBI) number. Generally, this number is also the Department of Revenue (DOR) Account ID. Businesses also receive the state Business License.

Washington’s major taxes

Persons engaged in trucking activities are potentially subject to the following taxes:

A business that performs hauling for hire within the state of Washington is subject to the Public Utility Tax (PUT) under either the Motor Transportation or the Urban Transportation classifications. Motor and urban transportation include the operation of motor-driven vehicles, upon public roads, used in transporting persons or property belonging to others, on a for hire basis. The PUT on transportation is generally computed only on those trips that originate and terminate within this state.

Example 1

Speedy Trucking is hired to pickup office furniture in City A and then deliver it to City C. The total mileage from the pickup point to the delivery point is twenty miles. The carrier will use a direct route from City A, through City B, and deliver the goods in City C. City B’s corporate limits are within five miles of both City A and C.