Recreational services – general information

Recreational services fall into two general categories:

• Retail recreational services.
• Other (nonretail) recreational services.

Retail recreational services

Retail recreational services include activities that are either:

• Specifically defined as retail sales by statute.
• Included in the definition of an athletic or fitness facility (AFF) and occur at an AFF.

Income from providing recreational services specifically defined as retail sales is subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax. This is true no matter where the activity occurs.

However, income from recreational services that are merely included in the definition of an athletic or fitness facility is only subject to sales tax when the activity occurs at an AFF.

Other (nonretail) recreational services

Income from providing nonretail recreational services is generally subject to B&O tax under the Service and Other Activities classification. This includes activities that are any of the following:

• Not specifically defined as retail sales.
• Specifically excluded from the definition of retail sales.
• Included in the definition of AFFs, but do not occur at an AFF.

For more information about specific recreational services, please see other sections of this guide.

If you do not see your activity listed, or it is listed but you are still unsure, email us at Rulings@dor.wa.gov with a detailed explanation of the activities your business provides. We will respond to you with a written ruling explaining how your activities are taxable.