What is included in Washington State Excise Tax?

November 14, 2023

In Washington State, excise taxes are imposed on specific goods and activities. Here are some of the key components of excise taxes in Washington:

Business and Occupation (B&O) Tax:

The B&O tax is a gross receipts tax applied to the gross income of a business.

The tax rates vary depending on the type of business activity, and there are different classifications for various industries.

Retail Sales Tax:

Retail sales tax is levied on the retail sale of tangible personal property and certain services.

The statewide base rate is supplemented by local sales taxes, which may vary by jurisdiction.

Use Tax:

Use tax is similar to sales tax but is applied when tangible personal property is acquired for use in Washington without paying retail sales tax.

This is often applicable when goods are purchased from out-of-state retailers or online sellers who do not collect Washington sales tax.

Liquor Sales Tax:

Washington imposes an excise tax on the sale of alcoholic beverages, commonly known as liquor sales tax.

Cigarette and Tobacco Products Tax:

Excise taxes are applied to the sale or distribution of cigarettes and other tobacco products.

Motor Vehicle Fuel Tax:

This tax is imposed on the sale or distribution of motor vehicle fuel, including gasoline and diesel.

Real Estate Excise Tax (REET):

REET is applied to the sale of real property in Washington State.

Insurance Premiums Tax:

This tax is imposed on insurance companies based on the premiums they collect.

Marijuana Excise Tax:

With the legalization of recreational marijuana, Washington State imposes an excise tax on the sale of marijuana products.

Admissions Tax:

An excise tax may be levied on the admission charges to various forms of entertainment or recreational activities.

It's crucial for businesses to understand the specific tax obligations related to their industry and activities. Tax rates, regulations, and exemptions may change, so it's advisable to consult with a tax professional or the Washington State Department of Revenue for the most up-to-date information https://dor.wa.gov/file-pay-taxes

Explore Questions

I have an LLC. How do I file my taxes with the IRS each year?

What is the Beneficial Ownership Report and does my business have to do it?

I need to hire my first employee. What do I do?

How do I know if I should do my own accounting or hire an accountant to do it for my business?

In what business situations should I consult an attorney?

What types of business insurance do I need for my business?

What is included in Washington State Excise Tax?

How can I find out if a physical location I am interested in has the right zoning for my type of business?

Can an LLC have investors or shareholders?

Do I need a resellers permit?

How can I ensure that an independent contract I have hired won't be classified as an employee of my business?

How do I understand permitting requirements if I am opening a physical store location?

How much should I charge for my products and/or services?

When should I update my business plan?

How do I know if I need a food cottage permit or if I have to prepare food I am selling for my business in a certified commercial kitchen?

Should I elect to have my LLC taxed as an S Corp?