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. Fire Districts - Reimbursements For Fire Services Performed For Other Fire Districts

Fire districts - Reimbursements for fire services performed for other fire districts

Fire districts, or fire protection districts, are subject to business and occupation (B&O) tax on certain income. However, they are not subject to the B&O tax on amounts earned from activities that are exclusively governmental.

Fire districts are created to provide fire protection for citizens and property within their geographic district. Fire districts are required to have a plan in place to deal with disasters beyond the resources of a single fire district. 

Fire districts are allowed to use their equipment and personnel beyond the boundaries of their district and doing so is an exclusively governmental function of the district. Income received for such services is not subject to B&O tax.