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Washington sales tax is 6.5% as levied by the state legislature. Most of the food items and prescribed medicines are exempt from sales tax in Washington State. The local authorities in Washington can implement surtax of 0.7% to 2.4%.
Since 1st January 2004, some amendments are done on the taxation in Washington. According to that a number of food items and food ingredients are exempted from the sales tax. The dietary supplements, prepared foods, soft drinks and doughnuts when sold with eating utensils are taxable in Washington. Over-the-counter medicines are also taxable in Washington.
The counties, municipalities, cities and the regional transit authorities are allowed to collect additional sales tax in Washington. The local sales tax rate is variable and it may range from 0.7% to 2.4% adding to the 6.5% base state sales tax rate. The combined sales tax that is levied on the purchasers on every purchase in Washington varies with the local tax rate of the county or city. The non-Washington residents with the proof of their address can enjoy tax exemption if the item purchased in the state is used outside the state.
The retail sales tax in Washington is the principal tax source of the state. The businesses that are making retail sales in the state collect sales tax from their customer. All the businesses need to have sales tax license issued from The Department of Revenue in order to do business in the state. In the state of Washington the sale of any tangible property is taxable unless it is already specifically exempted from taxation. The services that come under taxation in Washington are - cleaning, repairing, installation, altering, decorating, construction, improving real or personal property, lawn maintenance, amusement and recreational activities and physical fitness activities. The sales tax amount that is collected in Washington is considered to be trust funds and is remitted to the Washington Department of Revenue.
In Washington the sellers are liable to pay sales tax to the Department of Revenue whether or not it is collected or not. The consumers pay use tax in Washington if for a particular purchase or consumption the seller fails to collect the sales tax. The example of such purchase is online shopping or cable television shopping channels.