Video games and arcade game trucks

Generally, charges for the following are subject to business and occupation (B&O) tax under the Service and Other Activities classification:

• Playing arcade-style video games.
• Providing and operating a truck or trailer fitted out as a video arcade where the customer and their guests enter to play video games.

Retail sales tax does not apply.

Retail sales Charges for playing online video games are subject to B&O tax under the Retailing classification, and the seller must collect sales tax. Sales of T-shirts, water bottles, and other tangible personal property are also subject to Retailing B&O and retail sales tax.