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.

  1. Home
  2. Education
  3. Industry Guides
  4. Taxicabs (may Also Apply To Limousines)
  5. Registration Requirements

Registration requirements

Taxicab owners

Taxicab owners renting their taxicabs to drivers must be registered with the Department of Revenue. They are obligated to collect and remit retail sales tax on the amounts received from the drivers for use of their taxicabs. In addition, B&O tax applies under the retailing classification.

Independent drivers

Independent drivers who have a gross fare income of less than $12,000 annually, and have no other taxable income, are not required to register. See WAC 458-20-101.

For more information

If you have further questions, please contact us or write to Interpretations and Technical Advice, Department of Revenue, PO Box 47453, Olympia WA 98504-7453.