Businesses are eligible to claim a tax credit of up to $1,000 toward the cost of implementing the destination-based sales tax or two years of subsidized service from a Certified Service Provider (see RCW 82.32.760).
You will be eligible for either of these two options if:
- You are registered with the Department and making sales of delivered tangible personal property on June 30, 2008, and
- During the calendar year of 2008 you meet all of the following:
- You have a physical presence in Washington
- You have Washington gross income of less than $500,000
- You have at least 5% of your gross income from sales of delivered taxable goods
- You have at least 1% of your gross income from sales of delivered taxable goods outside the local jurisdiction where most local sales tax is reported
The credit may be applied toward the purchase or modification of equipment such as cash registers or hardware and software, labor, including the hiring of professionals such as accountants, consultants, or attorneys, or internal payroll expenses. These costs must be incurred between July 1, 2007 and June 30, 2009 to be eligible. Businesses can start claiming the credit on:
- the July 2008 tax return (due in August) for monthly filers
- the Q3, 2008 tax return (due in October) for quarterly filers
- the 2008 annual tax return (due in January 2009) for annual filers
The credit must be claimed by the first tax return due after June 30, 2009:
- the June 2009 tax return (due in July 2009) for monthly filers
- the Q2, 2009 tax return (due in July 2009) for quarterly filers
- the 2009 annual tax return (due in January 2010) for annual filers
To be eligible for the Certified Service Provider option, you must begin using the services of a Certified Service Provider by June 30, 2009. For more information on Certified Service Providers, please visit the national Streamlined Sales Tax Governing Board web site.