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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Valet services

Valet services are not subject to retail sales tax when both of the following conditions are met:

  • The valet parking services are provided at a location where the valet is not also providing the parking lot or garage. 
  • There is no charge to the vehicle driver/owner for valet or parking services.

If both conditions are met, the income the valet service receives is subject to business and occupation (B&O) tax under the service and other activities classification.

If the valet service is providing the parking lot or garage and charging the customer for the valet service, then this is a charge for automobile parking. Automobile parking services are subject to retailing B&O tax and retail sales tax. 

References

RCW 82.04.050 – Sales at retail, retail sales

Automobile parking