TPS-TIE

Income from sales of products to your customers is generally taxable under the Retailing business and occupation (B&O) tax classification, and you must collect sales tax.

The sales tax rate is based on the location where your customer receives the goods. Usually, that is the location of your salon. You can find the appropriate sales tax rate by using our Tax Rate Lookup tool.

There are specific licensing requirements in Washington for those who work in the beauty industry. Regardless of whether you plan to operate as a business or as an employee, you must be licensed by the Department of Licensing (DOL). Please see the Business and professional licenses page on the DOL website for more information.

The convention and trade center tax is a tax the consumer pays for lodging on stays less than 30 days at lodging businesses in King County.

Businesses providing transient lodging are taxable under the Retailing business and occupation (B&O) tax classification and they must collect sales tax on gross income from lodging sales. Transient means any guest, resident, or other occupant you provide lodging services to for less than one month or less than 30 days in a row, if the rental period does not start on the first day of the month.

If your business earns income from personal or professional services or activities that have not been specifically classified by statute, you may be subject to B&O tax under the service and other activities classification.

Examples of income subject to the Service and Other Activities B&O tax include:

Effective May 10, 2021, lodging businesses that collect a Parking and Business Improvement Area special assessment from their guests do not have to collect sales tax or pay B&O tax on such charges.

These charges are not considered part of the selling price and do not have to be reported on your excise tax return if they are separately stated from the room rate on all sales documents.

References

RCW 35.87A.010(2)(b)

Everyone who uses personal property in a business must complete a personal property tax listing form. This listing must be filed with your county assessor’s office by April 30 of each year. Examples of personal property used in conducting business include, but are not limited to:

Everyone who uses personal property in a business must complete a personal property tax listing form. This listing must be filed with your county assessor’s office by April 30 of each year. Examples of personal property used in conducting business include, but are not limited to: