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.

Chair and booth rental

Income from renting chairs or booths in your parlor or salon is taxable under the Service and Other Activities business and occupation (B&O) tax classification, and you do not have to collect sales tax. It does not matter whether the rental charge is a flat fee or based on a percentage of sales.

 

References

WAC 458-20-118 Sale or rental of real estate, license to use real estate

Rental vs. License to Use Real Estate