Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

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  5. Filing And Paying Lodging Business Taxes

Filing and paying lodging business taxes

We assign most lodging businesses either a monthly or a quarterly filing frequency. All taxpayers must file and pay their taxes electronically.

The tax classifications listed below are commonly used on a lodging business tax return:

Tax classification What to report
Retailing B&O tax Gross amounts you receive for lodging and other retail sales.
Service and other activities B&O tax Gross amounts you receive for resort fees, commissions, etc.
Retail sales tax Gross amounts you receive for lodging and other retail sales.
Use tax The value of goods you use in Washington when you have not paid sales tax.
Local sales/use tax Gross amounts you receive for lodging and other retail sales by location/The value of goods you use in Washington when you have not paid sales tax.
Transient rental income Taxable income you receive from transient lodging, reported by location code.
Convention and trade center tax Taxable amounts you receive for lodging in King County.
Special hotel/motel tax Taxable amounts you receive for lodging. Due in many areas - Use the Tax Rate Lookup tool or see lodging sales rates.
Tourism promotion area (TPA) charges Total room nights rented per location for lodging businesses with more than 40 units in a tourism promotion area. Use the Tax Rate Lookup tool or see lodging sales rates.