RCW 82.04.010
Introductory.
Unless the context clearly requires otherwise, the definitions set forth in the sections preceding RCW 82.04.220
apply throughout this chapter.
[
1996 c 93 s 4
;
1961 c 15 s 82.04.010
. Prior:
1955 c 389 s 2
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.020
"Tax year," "taxable year."
"Tax year" or "taxable year" means either the calendar year, or the taxpayer's fiscal year when permission is obtained from the department of revenue to use a fiscal year in lieu of the calendar year.
[
1975 1st ex.s. c 278 s 39
;
1961 c 15 s 82.04.020
. Prior:
1955 c 389 s 3
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part;
1935 c 180 s 5
; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.04.030
"Person," "company."
"Person" or "company", herein used interchangeably, means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the state of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the United States or any instrumentality thereof.
[
1995 c 318 s 1
;
1963 ex.s. c 28 s 1
;
1961 c 15 s 82.04.030
. Prior:
1955 c 389 s 4
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Effective date
—
1995 c 318:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [May 11, 1995]." [
1995 c 318 s 12
.]
Effective date
—
1963 ex.s. c 28:
"This act shall take effect on July 1, 1963." [
1963 ex.s. c 28 s 17
.]
International companies investing in Washington
—
Eligibility for excise tax incentives: RCW 43.330.068
.
RCW 82.04.035
"Plantation Christmas trees."
"Plantation Christmas trees" means Christmas trees which are exempt from the timber excise tax under RCW 84.33.170
.
[
1987 c 23 s 1
.]
RCW 82.04.040
"Sale," "casual or isolated sale," "lease or rental," "adoption fee," "animal care and control agency," "animal rescue group," "animal rescue organization," "senior living community."
(Effective until January 1, 2030.)
(1) Except as otherwise provided in this subsection, "sale" means any transfer of the ownership of, title to, or possession of property for a valuable consideration and includes any activity classified as a "sale at retail" or "retail sale" under RCW 82.04.050
. It includes lease or rental, conditional sale contracts, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. The term "sale" does not include the transfer of the ownership of, title to, or possession of:
(a) An animal by an animal rescue organization in exchange for the payment of an adoption fee;
(b) An abandoned vehicle sold by a registered tow truck operator to a successful bidder at public auction or, if there is no successful bidder, to a licensed vehicle wrecker, hulk hauler, or scrap processor, as provided in RCW 46.55.130
. Nothing in this subsection (1)(b) may be construed as providing an exemption from:
(i) The tax imposed by chapter
82.12
RCW on the use of an abandoned vehicle by any consumer; or
(ii) Taxes imposed under this chapter and chapter
82.08
RCW on automobile towing and automobile storage services provided by a registered tow truck operator; or
(c) Food, drink, or meals furnished by a senior living community to tenants as part of a rental or residency agreement for which no separate charge is made, regardless of whether the tenant is a resident for purposes of chapter
18.20
or
18.390
RCW.
(2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved.
(3)(a) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend. "Lease or rental" includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. Sec. 7701(h)(1), as amended or renumbered as of January 1, 2003. The definition in this subsection (3) must be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the United States internal revenue code, Washington state's commercial code, or other provisions of federal, state, or local law.
(b) "Lease or rental" does not include:
(i) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
(ii) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments, and payment of an option price does not exceed the greater of $100 or one percent of the total required payments; or
(iii) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the tangible personal property to perform as designed. For the purpose of this subsection (3)(b)(iii), an operator must do more than maintain, inspect, or set up the tangible personal property.
(4)(a) "Adoption fee" means an amount charged by an animal rescue organization to adopt an animal, except that "adoption fee" does not include any separately itemized charge for any incidental inanimate items provided to persons adopting an animal, including food, identification tags, collars, and leashes.
(b) "Animal care and control agency" means the same as in RCW 16.52.011
and also includes any similar entity operating outside of this state.
(c) "Animal rescue group" means a nonprofit organization that:
(i)(A) Is exempt from federal income taxation under 26 U.S.C. Sec. 501(c) of the federal internal revenue code as it exists on July 23, 2017; or
(B) Is registered as a charity with the Washington secretary of state under chapter
19.09
RCW, whether such registration is required by law or voluntary;
(ii) Has as its primary purpose the prevention of abuse, neglect, cruelty, exploitation, or homelessness of animals; and
(iii) Exclusively obtains dogs, cats, or other animals for placement that are:
(A) Stray or abandoned;
(B) Surrendered or relinquished by animal owners or caretakers;
(C) Transferred from other animal rescue organizations; or
(D) Born in the care of such nonprofit organization other than through intentional breeding by the nonprofit organization.
(d) "Animal rescue organization" means an animal care and control agency or an animal rescue group.
(e) "Senior living community" means any facility or campus operated by a person licensed or registered under chapter
18.20
or
18.390
RCW.
[
2023 c 416 s 1
;
2019 c 357 s 2
;
2017 c 323 s 201
;
2004 c 153 s 402
;
2003 c 168 s 103
;
1961 c 15 s 82.04.040
. Prior:
1959 ex.s. c 5 s 1
;
1959 ex.s. c 3 s 1
;
1955 c 389 s 5
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Expiration date
—
2023 c 416 s 1:
"Section 1 of this act expires January 1, 2030." [
2023 c 416 s 5
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 416:
See note following RCW 82.12.9993
.
Tax preference performance statement
—
2019 c 357:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 357, Laws of 2019. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief to certain businesses or individuals as indicated in RCW 82.32.808
(2)(e).
(3) It is the legislature's specific public policy objective to allow registered tow truck operators to recoup their expenditures associated with removing abandoned vehicles from the roads and highways of Washington.
(4) If a review finds that the average cost of towing, storing, and disposing of an abandoned vehicle exceeds the average revenue of the sale of an abandoned vehicle by an amount greater than the value of the retail sales and use tax authorized in section 2 of this act, then the legislature intends to extend the expiration date of this tax preference.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state." [
2019 c 357 s 1
.]
Expiration date
—
2019 c 357:
"This act expires January 1, 2030." [
2019 c 357 s 3
.]
Application
—
2017 c 323 ss 201 and 202:
"Sections 201 and 202 of this act apply both prospectively and retroactively to July 1, 2015." [
2017 c 323 s 203
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
"RCW 82.32.805
and
82.32.808
do not apply to any provisions of this act." [
2017 c 323 s 1101
.]
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
PDF
RCW 82.04.040
"Sale," "casual or isolated sale," "lease or rental," "adoption fee," "animal care and control agency," "animal rescue group," "animal rescue organization," "senior living community."
(Effective January 1, 2030.)
(1) Except as otherwise provided in this subsection, "sale" means any transfer of the ownership of, title to, or possession of property for a valuable consideration and includes any activity classified as a "sale at retail" or "retail sale" under RCW 82.04.050
. It includes lease or rental, conditional sale contracts, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. The term "sale" does not include the transfer of the ownership of, title to, or possession of:
(a) An animal by an animal rescue organization in exchange for the payment of an adoption fee; or
(b) Food, drink, or meals furnished by a senior living community to tenants as part of a rental or residency agreement for which no separate charge is made, regardless of whether the tenant is a resident for purposes of chapter
18.20
or
18.390
RCW.
(2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved.
(3)(a) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend. "Lease or rental" includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. Sec. 7701(h)(1), as amended or renumbered as of January 1, 2003. The definition in this subsection (3) must be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the United States internal revenue code, Washington state's commercial code, or other provisions of federal, state, or local law.
(b) "Lease or rental" does not include:
(i) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
(ii) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments, and payment of an option price does not exceed the greater of $100 or one percent of the total required payments; or
(iii) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the tangible personal property to perform as designed. For the purpose of this subsection (3)(b)(iii), an operator must do more than maintain, inspect, or set up the tangible personal property.
(4)(a) "Adoption fee" means an amount charged by an animal rescue organization to adopt an animal, except that "adoption fee" does not include any separately itemized charge for any incidental inanimate items provided to persons adopting an animal, including food, identification tags, collars, and leashes.
(b) "Animal care and control agency" means the same as in RCW 16.52.011
and also includes any similar entity operating outside of this state.
(c) "Animal rescue group" means a nonprofit organization that:
(i)(A) Is exempt from federal income taxation under 26 U.S.C. Sec. 501(c) of the federal internal revenue code as it exists on July 23, 2017; or
(B) Is registered as a charity with the Washington secretary of state under chapter
19.09
RCW, whether such registration is required by law or voluntary;
(ii) Has as its primary purpose the prevention of abuse, neglect, cruelty, exploitation, or homelessness of animals; and
(iii) Exclusively obtains dogs, cats, or other animals for placement that are:
(A) Stray or abandoned;
(B) Surrendered or relinquished by animal owners or caretakers;
(C) Transferred from other animal rescue organizations; or
(D) Born in the care of such nonprofit organization other than through intentional breeding by the nonprofit organization.
(d) "Animal rescue organization" means an animal care and control agency or an animal rescue group.
(e) "Senior living community" means any facility or campus operated by a person licensed or registered under chapter
18.20
or
18.390
RCW.
[
2023 c 416 s 2
;
2017 c 323 s 201
;
2004 c 153 s 402
;
2003 c 168 s 103
;
1961 c 15 s 82.04.040
. Prior:
1959 ex.s. c 5 s 1
;
1959 ex.s. c 3 s 1
;
1955 c 389 s 5
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Effective date
—
2023 c 416 s 2:
"Section 2 of this act takes effect January 1, 2030." [
2023 c 416 s 6
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 416:
See note following RCW 82.12.9993
.
Application
—
2017 c 323 ss 201 and 202:
"Sections 201 and 202 of this act apply both prospectively and retroactively to July 1, 2015." [
2017 c 323 s 203
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
"RCW 82.32.805
and
82.32.808
do not apply to any provisions of this act." [
2017 c 323 s 1101
.]
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.04.050
"Sale at retail," "retail sale."
(Effective until October 1, 2025.)
(1)(a) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than a sale to a person who:
(i) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person, but a purchase for the purpose of resale by a regional transit authority under RCW 81.112.300
is not a sale for resale; or
(ii) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or
(iii) Purchases for the purpose of consuming the property purchased in producing for sale as a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or
(iv) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or
(v) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065
; or
(vi) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (7) of this section, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person.
(b) The term includes every sale of tangible personal property that is used or consumed or to be used or consumed in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property is resold or used as provided in (a)(i) through (vi) of this subsection following such use.
(c) The term also means every sale of tangible personal property to persons engaged in any business that is taxable under *RCW 82.04.280
(1) (a), (b), and (g), 82.04.290, and
82.04.2908
.
(2) The term "sale at retail" or "retail sale" includes the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:
(a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of self-service laundry facilities, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;
(b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and also includes the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;
(c) The constructing, repairing, or improving of any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner;
(d) The cleaning, fumigating, razing, or moving of existing buildings or structures, but does not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" means those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting;
(e) Automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter
82.16
RCW;
(f) The furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it is presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it is presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same. For the purposes of this section, it is presumed that the sale of and charge made for the furnishing of lodging offered regularly for public occupancy for periods of less than a month constitutes a license to use or enjoy the property subject to sales and use tax and not a rental or lease of property;
(g) The installing, repairing, altering, or improving of digital goods for consumers;
(h) Persons taxable under (a), (b), (c), (d), (e), (f), and (g) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection may be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section may be construed to modify this subsection.
(3) The term "sale at retail" or "retail sale" includes the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities:
(a) Abstract, title insurance, and escrow services;
(b) Credit bureau services;
(c) Automobile parking and storage garage services;
(d) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility;
(e) Service charges associated with tickets to professional sporting events;
(f) The following personal services: Tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services; and
(g)(i) Operating an athletic or fitness facility, including all charges for the use of such a facility or for any associated services and amenities, except as provided in (g)(ii) of this subsection.
(ii) Notwithstanding anything to the contrary in (g)(i) of this subsection (3), the term "sale at retail" and "retail sale" under this subsection does not include:
(A) Separately stated charges for the use of an athletic or fitness facility where such use is primarily for a purpose other than engaging in or receiving instruction in a physical fitness activity;
(B) Separately stated charges for the use of a discrete portion of an athletic or fitness facility, other than a pool, where such discrete portion of the facility does not by itself meet the definition of "athletic or fitness facility" in this subsection;
(C) Separately stated charges for services, such as advertising, massage, nutritional consulting, and body composition testing, that do not require the customer to engage in physical fitness activities to receive the service. The exclusion in this subsection (3)(g)(ii)(C) does not apply to personal training services and instruction in a physical fitness activity;
(D) Separately stated charges for physical therapy provided by a physical therapist, as those terms are defined in RCW 18.74.010, or occupational therapy provided by an occupational therapy practitioner, as those terms are defined in RCW 18.59.020, when performed pursuant to a referral from an authorized health care practitioner or in consultation with an authorized health care practitioner. For the purposes of this subsection (3)(g)(ii)(D), an authorized health care practitioner means a health care practitioner licensed under chapter
18.83, 18.25, 18.36A, 18.57, 18.71, or
18.71A
RCW, or, until July 1, 2022, chapter
18.57A
RCW;
(E) Rent or association fees charged by a landlord or residential association to a tenant or residential owner with access to an athletic or fitness facility maintained by the landlord or residential association, unless the rent or fee varies depending on whether the tenant or owner has access to the facility;
(F) Services provided in the regular course of employment by an employee with access to an athletic or fitness facility maintained by the employer for use without charge by its employees or their family members;
(G) The provision of access to an athletic or fitness facility by an educational institution to its students and staff. However, charges made by an educational institution to its alumni or other members of the public for the use of any of the educational institution's athletic or fitness facilities are a retail sale under this subsection (3)(g). For purposes of this subsection (3)(g)(ii)(G), "educational institution" has the same meaning as in RCW 82.04.170
;
(H) Yoga, chi gong, or martial arts classes, training, or events held at a community center, park, school gymnasium, college or university, hospital or other medical facility, private residence, or any other facility that is not operated within and as part of an athletic or fitness facility.
(iii) Nothing in (g)(ii) of this subsection (3) may be construed to affect the taxation of sales made by the operator of an athletic or fitness facility, where such sales are defined as a retail sale under any provision of this section other than this subsection (3).
(iv) For the purposes of this subsection (3)(g), the following definitions apply:
(A) "Athletic or fitness facility" means an indoor or outdoor facility or portion of a facility that is primarily used for: Exercise classes; strength and conditioning programs; personal training services; tennis, racquetball, handball, squash, or pickleball; or other activities requiring the use of exercise or strength training equipment, such as treadmills, elliptical machines, stair climbers, stationary cycles, rowing machines, pilates equipment, balls, climbing ropes, jump ropes, and weightlifting equipment.
(B) "Martial arts" means any of the various systems of training for physical combat or self-defense. "Martial arts" includes, but is not limited to, karate, kung fu, tae kwon do, Krav Maga, boxing, kickboxing, jujitsu, shootfighting, wrestling, aikido, judo, hapkido, Kendo, tai chi, and mixed martial arts.
(C) "Physical fitness activities" means activities that involve physical exertion for the purpose of improving or maintaining the general fitness, strength, flexibility, conditioning, or health of the participant. "Physical fitness activities" includes participating in yoga, chi gong, or martial arts.
(4)(a) The term also includes the renting or leasing of tangible personal property to consumers.
(b) The term does not include the renting or leasing of tangible personal property where the lease or rental is for the purpose of sublease or subrent.
(5) The term also includes the providing of "competitive telephone service," "telecommunications service," or "ancillary services," as those terms are defined in RCW 82.04.065, to consumers.
(6)(a) The term also includes the sale of prewritten computer software to a consumer, regardless of the method of delivery to the end user. For purposes of (a) and (b) of this subsection, the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized by the vendor or by the purchaser.
(b) The term "retail sale" does not include the sale of or charge made for:
(i) Custom software; or
(ii) The customization of prewritten computer software.
(c)(i) The term also includes the charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis.
(ii)(A) The service described in (c)(i) of this subsection (6) includes the right to access and use prewritten computer software to perform data processing.
(B) For purposes of this subsection (6)(c)(ii), "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities.
(7) The term also includes the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement. For purposes of this subsection, "sales price" has the same meaning as in RCW 82.08.010
.
(8)(a) The term also includes the following sales to consumers of digital goods, digital codes, and digital automated services:
(i) Sales in which the seller has granted the purchaser the right of permanent use;
(ii) Sales in which the seller has granted the purchaser a right of use that is less than permanent;
(iii) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and
(iv) Sales in which the purchaser is obligated to make continued payment as a condition of the sale.
(b) A retail sale of digital goods, digital codes, or digital automated services under this subsection (8) includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services.
(c) For purposes of this subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent.
(9) The term also includes the charge made for providing tangible personal property along with an operator for a fixed or indeterminate period of time. A consideration of this is that the operator is necessary for the tangible personal property to perform as designed. For the purpose of this subsection (9), an operator must do more than maintain, inspect, or set up the tangible personal property.
(10) The term does not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.
(11) The term also does not include sales of chemical sprays or washes to persons for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, nor does it include sales of feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials to: (a) Persons who participate in the federal conservation reserve program, the environmental quality incentives program, the wetlands reserve program, and the wildlife habitat incentives program, or their successors administered by the United States department of agriculture; (b) farmers for the purpose of producing for sale any agricultural product; (c) farmers for the purpose of providing bee pollination services; and (d) farmers acting under cooperative habitat development or access contracts with an organization exempt from federal income tax under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code or the Washington state department of fish and wildlife to produce or improve wildlife habitat on land that the farmer owns or leases.
(12) The term does not include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter
35.82
RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. Nor does the term include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor does the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development.
(13) The term does not include the sale of or charge made for labor, services, or tangible personal property pursuant to agreements providing maintenance services for bus, rail, or rail fixed guideway equipment when a regional transit authority is the recipient of the labor, services, or tangible personal property, and a transit agency, as defined in RCW 81.104.015, performs the labor or services.
(14) The term does not include the sale for resale of any service described in this section if the sale would otherwise constitute a "sale at retail" and "retail sale" under this section.
(15)(a) The term "sale at retail" or "retail sale" includes amounts charged, however labeled, to consumers to engage in any of the activities listed in this subsection (15)(a), including the furnishing of any associated equipment or, except as otherwise provided in this subsection, providing instruction in such activities, where such charges are not otherwise defined as a "sale at retail" or "retail sale" in this section:
(i)(A) Golf, including any variant in which either golf balls or golf clubs are used, such as miniature golf, hitting golf balls at a driving range, and golf simulators, and including fees charged by a golf course to a player for using his or her own cart. However, charges for golf instruction are not a retail sale, provided that if the instruction involves the use of a golfing facility that would otherwise require the payment of a fee, such as green fees or driving range fees, such fees, including the applicable retail sales tax, must be separately identified and charged by the golfing facility operator to the instructor or the person receiving the instruction.
(B) Notwithstanding (a)(i)(A) of this subsection (15) and except as otherwise provided in this subsection (15)(a)(i)(B), the term "sale at retail" or "retail sale" does not include amounts charged to participate in, or conduct, a golf tournament or other competitive event. However, amounts paid by event participants to the golf facility operator are retail sales under this subsection (15)(a)(i). Likewise, amounts paid by the event organizer to the golf facility are retail sales under this subsection (15)(a)(i), if such amounts vary based on the number of event participants;
(ii) Ballooning, hang gliding, indoor or outdoor sky diving, paragliding, parasailing, and similar activities;
(iii) Air hockey, billiards, pool, foosball, darts, shuffleboard, ping pong, and similar games;
(iv) Access to amusement park, theme park, and water park facilities, including but not limited to charges for admission and locker or cabana rentals. Discrete charges for rides or other attractions or entertainment that are in addition to the charge for admission are not a retail sale under this subsection (15)(a)(iv). For the purposes of this subsection, an amusement park or theme park is a location that provides permanently affixed amusement rides, games, and other entertainment, but does not include parks or zoos for which the primary purpose is the exhibition of wildlife, or fairs, carnivals, and festivals as defined in (b)(i) of this subsection;
(v) Batting cage activities;
(vi) Bowling, but not including competitive events, except that amounts paid by the event participants to the bowling alley operator are retail sales under this subsection (15)(a)(vi). Likewise, amounts paid by the event organizer to the operator of the bowling alley are retail sales under this subsection (15)(a)(vi), if such amounts vary based on the number of event participants;
(vii) Climbing on artificial climbing structures, whether indoors or outdoors;
(viii) Day trips for sightseeing purposes;
(ix) Bungee jumping, zip lining, and riding inside a ball, whether inflatable or otherwise;
(x) Horseback riding offered to the public, where the seller furnishes the horse to the buyer and providing instruction is not the primary focus of the activity, including guided rides, but not including therapeutic horseback riding provided by an instructor certified by a nonprofit organization that offers national or international certification for therapeutic riding instructors;
(xi) Fishing, including providing access to private fishing areas and charter or guided fishing, except that fishing contests and license fees imposed by a government entity are not a retail sale under this subsection;
(xii) Guided hunting and hunting at game farms and shooting preserves, except that hunting contests and license fees imposed by a government entity are not a retail sale under this subsection;
(xiii) Swimming, but only in respect to (A) recreational or fitness swimming that is open to the public, such as open swim, lap swimming, and special events like kids night out and pool parties during open swim time, and (B) pool parties for private events, such as birthdays, family gatherings, and employee outings. Fees for swimming lessons, to participate in swim meets and other competitions, or to join a swim team, club, or aquatic facility are not retail sales under this subsection (15)(a)(xiii);
(xiv) Go-karting, bumper cars, and other motorized activities where the seller provides the vehicle and the premises where the buyer will operate the vehicle;
(xv) Indoor or outdoor playground activities, such as inflatable bounce structures and other inflatables; mazes; trampolines; slides; ball pits; games of tag, including laser tag and soft-dart tag; and human gyroscope rides, regardless of whether such activities occur at the seller's place of business, but not including playground activities provided for children by a licensed child day care center or licensed family day care provider as those terms are defined in RCW 43.216.010
;
(xvi) Shooting sports and activities, such as target shooting, skeet, trap, sporting clays, "5" stand, and archery, but only in respect to discrete charges to members of the public to engage in these activities, but not including fees to enter a competitive event, instruction that is entirely or predominately classroom based, or to join or renew a membership at a club, range, or other facility;
(xvii) Paintball and airsoft activities;
(xviii) Skating, including ice skating, roller skating, and inline skating, but only in respect to discrete charges to members of the public to engage in skating activities, but not including skating lessons, competitive events, team activities, or fees to join or renew a membership at a skating facility, club, or other organization;
(xix) Nonmotorized snow sports and activities, such as downhill and cross-country skiing, snowboarding, ski jumping, sledding, snow tubing, snowshoeing, and similar snow sports and activities, whether engaged in outdoors or in an indoor facility with or without snow, but only in respect to discrete charges to the public for the use of land or facilities to engage in nonmotorized snow sports and activities, such as fees, however labeled, for the use of ski lifts and tows and daily or season passes for access to trails or other areas where nonmotorized snow sports and activities are conducted. However, fees for the following are not retail sales under this subsection (15)(a)(xix): (A) Instructional lessons; (B) permits issued by a governmental entity to park a vehicle on or access public lands; and (C) permits or leases granted by an owner of private timberland for recreational access to areas used primarily for growing and harvesting timber; and
(xx) Scuba diving; snorkeling; river rafting; surfing; kiteboarding; flyboarding; water slides; inflatables, such as water pillows, water trampolines, and water rollers; and similar water sports and activities.
(b) Notwithstanding anything to the contrary in this subsection (15), the term "sale at retail" or "retail sale" does not include charges:
(i) Made for admission to, and rides or attractions at, fairs, carnivals, and festivals. For the purposes of this subsection, fairs, carnivals, and festivals are events that do not exceed 21 days and a majority of the amusement rides, if any, are not affixed to real property;
(ii) Made by an educational institution to its students and staff for activities defined as retail sales by (a)(i) through (xx) of this subsection. However, charges made by an educational institution to its alumni or other members of the general public for these activities are a retail sale under this subsection (15). For purposes of this subsection (15)(b)(ii), "educational institution" has the same meaning as in RCW 82.04.170
;
(iii) Made by a vocational school for commercial diver training that is licensed by the workforce training and education coordinating board under chapter
28C.10
RCW; or
(iv) Made for day camps offered by a nonprofit organization or state or local governmental entity that provide youth not older than age 18, or that are focused on providing individuals with disabilities or mental illness, the opportunity to participate in a variety of supervised activities.
(16)(a) The term "sale at retail" or "retail sale" includes the purchase or acquisition of tangible personal property and specified services by a person who receives either a qualifying grant exempt from tax under RCW 82.04.767
or
82.16.320
or a grant deductible under RCW 82.04.4339, except for transactions excluded from the definition of "sale at retail" or "retail sale" by any other provision of this section. Nothing in this subsection (16) may be construed to limit the application of any other provision of this section to purchases by a recipient of either a qualifying grant exempt from tax under RCW 82.04.767
or a grant deductible under RCW 82.04.4339, or by any other person.
(b) For purposes of this subsection (16), "specified services" means:
(i) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation;
(ii) The clearing of land or the moving of earth, whether or not associated with activities described in (b)(i) of this subsection (16);
(iii) The razing or moving of existing buildings or structures; and
(iv) Landscape maintenance and horticultural services.
[
2021 c 296 s 8
;
2021 c 143 s 2
;
2021 c 4 s 3
; (2020 c 80 s 58 repealed by 2021 c 143 s 4);
2017 3rd sp.s. c 37 s 1201
;
2015 3rd sp.s. c 6 s 1105
; (2015 3rd sp.s. c 6 s 1104 expired January 1, 2016);
2015 c 169 s 1
;
2013 2nd sp.s. c 13 s 802
;
2011 c 174 s 202
. Prior:
2010 c 112 s 14
;
2010 c 111 s 201
;
2010 c 106 s 202
; prior:
2009 c 563 s 301
;
2009 c 535 s 301
; prior:
2007 c 54 s 4
;
2007 c 6 s 1004
; prior:
2005 c 515 s 2
;
2005 c 514 s 101
; prior:
2004 c 174 s 3
;
2004 c 153 s 407
;
2003 c 168 s 104
;
2002 c 178 s 1
;
2000 2nd sp.s. c 4 s 23
; prior:
1998 c 332 s 2
;
1998 c 315 s 1
;
1998 c 308 s 1
;
1998 c 275 s 1
;
1997 c 127 s 1
; prior:
1996 c 148 s 1
;
1996 c 112 s 1
;
1995 1st sp.s. c 12 s 2
;
1995 c 39 s 2
;
1993 sp.s. c 25 s 301
;
1988 c 253 s 1
; prior:
1987 c 285 s 1
;
1987 c 23 s 2
;
1986 c 231 s 1
;
1983 2nd ex.s. c 3 s 25
;
1981 c 144 s 3
;
1975 1st ex.s. c 291 s 5
;
1975 1st ex.s. c 90 s 1
;
1973 1st ex.s. c 145 s 1
;
1971 ex.s. c 299 s 3
;
1971 ex.s. c 281 s 1
;
1970 ex.s. c 8 s 1
; prior:
1969 ex.s. c 262 s 30
;
1969 ex.s. c 255 s 3
;
1967 ex.s. c 149 s 4
;
1965 ex.s. c 173 s 1
;
1963 c 7 s 1
; prior:
1961 ex.s. c 24 s 1
;
1961 c 293 s 1
;
1961 c 15 s 82.04.050
; prior:
1959 ex.s. c 5 s 2
;
1957 c 279 s 1
;
1955 c 389 s 6
;
1953 c 91 s 3
;
1951 2nd ex.s. c 28 s 3
; 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Reviser's note:
*(1) RCW 82.04.280
was amended by 2025 c 9 s 2, changing subsection (1)(g) to subsection (1)(f).
(2) This section was amended by 2021 c 143 s 2 and by 2021 c 296 s 8, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Finding
—
Intent
—
Effective date
—
2021 c 296:
See notes following RCW 82.14.310
.
Automatic expiration date and tax preference performance statement exemption
—
Effective date
—
2021 c 143:
See notes following RCW 82.04.4339
.
Retroactive application
—
Automatic expiration date and tax preference performance statement exemption
—
Effective date
—
2021 c 4:
See notes following RCW 82.04.767
.
Intent
—
2020 c 80:
See note following RCW 18.71A.010
.
Tax preference performance statement and expiration
—
2017 3rd sp.s. c 37 s 1201:
"RCW 82.32.805
and
82.32.808
do not apply to this part." [
2017 3rd sp.s. c 37 s 1202
.]
Expiration date
—
2015 3rd sp.s. c 6 s 1104:
"Section 1104 of this act expires January 1, 2016." [
2015 3rd sp.s. c 6 s 2304
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
Tax preference intended to be permanent
—
2015 3rd sp.s. c 6 ss 1102-1106:
See notes following RCW 82.04.330
.
Effective date
—
2015 c 169:
"This act takes effect January 1, 2016." [
2015 c 169 s 14
.]
Intent
—
2013 2nd sp.s. c 13:
"It is the intent of part VIII of this act to provide a sales tax exemption for cover charges to patrons at establishments that provide the opportunity to dance. The intent is to provide tax relief to businesses who have been reporting the income for cover charges under the service and other classification, but not intending to avoid their tax obligation of collecting retail sales tax because of department and taxpayer confusion regarding the appropriate tax treatment of this income. To ensure proper tax reporting in the future by businesses who provide the opportunity to dance, the legislature intends to review the tax preference and its actual fiscal impact on state revenues to determine if the fiscal impact to state revenues reasonably conforms with the fiscal estimate in the fiscal note for this legislation." [
2013 2nd sp.s. c 13 s 801
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
Retroactive application
—
2010 c 112:
See note following RCW 82.32.780
.
Purpose
—
2010 c 111:
"The 2009 legislature enacted Engrossed Substitute House Bill No. 2075 (chapter 535, Laws of 2009), an act relating to the excise taxation of certain products and services provided or furnished electronically. The bill took effect July 26, 2009.
Engrossed Substitute House Bill No. 2075, at eighty-five pages, was a comprehensive piece of legislation that made major changes to state and local sales and use taxes, as well as the state business and occupation tax. Moreover, Engrossed Substitute House Bill No. 2075 was a complex piece of legislation because of the intricate interrelationship between the sales tax and the business and occupation tax and also because the bill affects the taxation of products and services that involve technologies that are changing rapidly.
Because of the complexity and length of Engrossed Substitute House Bill No. 2075, it was the legislature's expectation that, in the course of implementing the bill, ambiguities and unintended consequences would be discovered, which, if not corrected, will unsettle expectations. Thus, the legislature further anticipated that it would need to consider legislation in the 2010 legislative session to address these issues.
Therefore, the purpose of this act is to clarify ambiguities, correct unintended consequences, restore expectations, and conform the law to the original intent of the legislature." [
2010 c 111 s 101
.]
Retroactive application
—
2010 c 111:
"(1) Except as provided in subsection (2) of this section, this act applies both prospectively and retroactively to July 26, 2009.
(2) Sections 202, 402, and 502 of this act, and those provisions of sections 401 and 501 of this act that eliminate the sales and use tax exemptions in RCW 82.08.02082
and
82.12.02082, apply prospectively only." [
2010 c 111 s 902
.]
Effective date
—
2010 c 111:
"This act takes effect July 1, 2010." [
2010 c 111 s 903
.]
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Finding
—
Intent
—
Construction
—
Effective date
—
Reports and recommendations
—
2009 c 563:
See notes following RCW 82.32.780
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Severability
—
2007 c 54:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
2007 c 54 s 32
.]
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Findings
—
2005 c 515:
"The legislature finds that:
(1) Public entities that receive tax dollars must continuously improve the way they operate and deliver service so citizens receive maximum value for their tax dollars; and
(2) An explicit statement clarifying that no sales or use tax shall apply to the entire charge paid by regional transit authorities for bus or rail combined operations and maintenance agreements that are provided to such authorities in support of their provision of urban transportation or transportation services is necessary to improve efficient service." [
2005 c 515 s 1
.]
Effective date
—
2005 c 514:
See note following RCW 83.100.230
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
Effective date
—
2004 c 174:
See note following RCW 82.04.2908
.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Retroactive application
—
Effective date
—
2002 c 178:
See notes following RCW 67.28.180
.
Findings
—
Construction
—
2000 2nd sp.s. c 4 ss 18-30:
See notes following RCW 81.112.300
.
Findings
—
Intent
—
Effective date
—
1998 c 332:
See notes following RCW 82.04.29001
.
Effective dates
—
1998 c 308:
"(1) Sections 1 through 4 of this act take effect July 1, 1998.
(2) Section 5 of this act takes effect July 1, 2003." [
1998 c 308 s 6
.]
Effective date
—
1998 c 275:
"This act takes effect July 1, 1998." [
1998 c 275 s 2
.]
Effective date
—
1997 c 127:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997." [
1997 c 127 s 2
.]
Severability
—
1996 c 148:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1996 c 148 s 7
.]
Effective date
—
1996 c 148:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect April 1, 1996." [
1996 c 148 s 8
.]
Effective date
—
1996 c 112:
"This act shall take effect July 1, 1996." [
1996 c 112 s 5
.]
Intent
—
1995 1st sp.s. c 12:
"It is the intent of the legislature that massage services be recognized as health care practitioners for the purposes of business and occupation tax application. To achieve this intent massage services are being removed from the definition of sale at retail and retail sale." [
1995 1st sp.s. c 12 s 1
.]
Effective date
—
1995 1st sp.s. c 12:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 1st sp.s. c 12 s 5
.]
Effective date
—
1995 c 39:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 c 39 s 3
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Intent
—
Severability
—
Effective date
—
1981 c 144:
See notes following RCW 82.16.010
.
Application to preexisting contracts
—
1975 1st ex.s. c 291; 1975 1st ex.s. c 90:
See note following RCW 82.12.010
.
Effective dates
—
1975 1st ex.s. c 291:
"This 1975 amendatory act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing institutions, and shall take effect immediately: PROVIDED, That sections 8 and 26 through 43 of this amendatory act shall be effective on and after January 1, 1976: PROVIDED FURTHER, That sections 2, 3, and 4, and subsections (1) and (2) of section 24 shall be effective on and after January 1, 1977: AND PROVIDED FURTHER, That subsections (3) through (15) of section 24 shall be effective on and after January 1, 1978." [
1975 1st ex.s. c 291 s 46
.]
Severability
—
1975 1st ex.s. c 291:
"If any provision of this 1975 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [
1975 1st ex.s. c 291 s 45
.]
Effective date
—
1975 1st ex.s. c 90:
"This 1975 amendatory act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1975." [
1975 1st ex.s. c 90 s 5
.]
Effective date
—
1973 1st ex.s. c 145:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1973." [
1973 1st ex.s. c 145 s 2
.]
Effective dates
—
1971 ex.s. c 299:
"This 1971 amendatory act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect as follows:
(1) Sections 1 through 12, 15 through 34 and 53 shall take effect July 1, 1971;
(2) Sections 13, 14, and 77 and 78 shall take effect June 1, 1971; and
(3) Sections 35 through 52 and 54 through 76 shall take effect as provided in section 53." [
1971 ex.s. c 299 s 79
.]
Severability
—
1971 ex.s. c 299:
"If any phrase, clause, subsection or section of this 1971 amendatory act shall be declared unconstitutional or invalid by any court of competent jurisdiction, it shall be conclusively presumed that the legislature would have enacted this 1971 amendatory act without the phrase, clause, subsection or section so held unconstitutional or invalid and the remainder of the act shall not be affected as a result of said part being held unconstitutional or invalid." [
1971 ex.s. c 299 s 78
.]
Construction
—
Severability
—
1969 ex.s. c 255:
See notes following RCW 35.58.272
.
Effective date
—
1967 ex.s. c 149:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1967." [
1967 ex.s. c 149 s 65
.]
Effective date
—
1965 ex.s. c 173:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect June 1, 1965." [
1965 ex.s. c 173 s 33
.]
Credit for retail sales or use taxes paid to other jurisdictions with respect to property used: RCW 82.12.035
.
"Services rendered in respect to" defined: RCW 82.04.051
.
PDF
RCW 82.04.050
"Sale at retail," "retail sale."
(Effective October 1, 2025.)
(1)(a) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than a sale to a person who:
(i) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person, but a purchase for the purpose of resale by a regional transit authority under RCW 81.112.300
is not a sale for resale; or
(ii) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or
(iii) Purchases for the purpose of consuming the property purchased in producing for sale as a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or
(iv) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or
(v) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065
; or
(vi) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (7) of this section, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person.
(b) The term includes every sale of tangible personal property that is used or consumed or to be used or consumed in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property is resold or used as provided in (a)(i) through (vi) of this subsection following such use.
(c) The term also means every sale of tangible personal property to persons engaged in any business that is taxable under *RCW 82.04.280
(1) (a), (b), and (g), 82.04.290, and
82.04.2908
.
(2) The term "sale at retail" or "retail sale" includes the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:
(a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of self-service laundry facilities, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;
(b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and also includes the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;
(c) The constructing, repairing, or improving of any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner;
(d) The cleaning, fumigating, razing, or moving of existing buildings or structures, but does not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" means those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting;
(e) Automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter
82.16
RCW;
(f) The furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it is presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it is presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same. For the purposes of this section, it is presumed that the sale of and charge made for the furnishing of lodging offered regularly for public occupancy for periods of less than a month constitutes a license to use or enjoy the property subject to sales and use tax and not a rental or lease of property;
(g) The installing, repairing, altering, or improving of digital goods for consumers;
(h) Persons taxable under (a), (b), (c), (d), (e), (f), and (g) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection may be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section may be construed to modify this subsection.
(3) The term "sale at retail" or "retail sale" includes the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities:
(a) Abstract, title insurance, and escrow services;
(b) Credit bureau services;
(c) Automobile parking and storage garage services;
(d) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility;
(e) Service charges associated with tickets to professional sporting events;
(f) The following personal services: Tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services;
(g) Information technology training services, technical support, and other services including, but not limited to, assisting with network operations and support, help desk services, in-person training related to hardware or software, network system support services, data entry services, and data processing services;
(h) Custom website development services. For the purposes of this subsection (3), "website development services" means the design, development, and support of a website provided by a website developer to a customer;
(i) Investigation, security services, security monitoring services, and armored car services including, but not limited to, background checks, security guard and patrol services, personal and event security, armored car transportation of cash and valuables, and security system services and monitoring. This does not include locksmith services;
(j) Temporary staffing services. For the purposes of this subsection (3), "temporary staffing services" means providing workers to other businesses, except for hospitals licensed under chapter
70.41
or
71.12
RCW, for limited periods of time to supplement their workforce and fill employment vacancies on a contract or for fee basis;
(k) Advertising services. (i) For the purposes of this subsection (3), "advertising services" means all digital and nondigital services related to the creation, preparation, production, or dissemination of advertisements including, but not limited to:
(A) Layout, art direction, graphic design, mechanical preparation, production supervision, placement, referrals, acquisition of advertising space, and rendering advice concerning the best methods of advertising products or services; and
(B) Online referrals, search engine marketing, and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign.
(ii) "Advertising services" do not include:
(A) Web hosting services and domain name registration;
(B) Services rendered in respect to the following:
(I) "Newspapers" as defined in RCW 82.04.214
;
(II) Printing or publishing under RCW 82.04.280
; and
(III) "Radio and television broadcasting" within this state as defined in RCW 82.04.281
; and
(C) Services rendered in respect to out-of-home advertising, including: Billboard advertising; street furniture advertising; transit advertising; place-based advertising, such as in-store display advertising or point-of-sale advertising; dynamic or static signage at live events; naming rights; and fixed signage advertising. Out-of-home advertising does not include direct mail;
(l) Live presentations including, but not limited to, lectures, seminars, workshops, or courses where participants attend either in-person or via the internet or telecommunications equipment that allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time; and
(m)(i) Operating an athletic or fitness facility, including all charges for the use of such a facility or for any associated services and amenities, except as provided in (m)(ii) of this subsection.
(ii) Notwithstanding anything to the contrary in (m)(i) of this subsection (3), the term "sale at retail" and "retail sale" under this subsection does not include:
(A) Separately stated charges for the use of an athletic or fitness facility where such use is primarily for a purpose other than engaging in or receiving instruction in a physical fitness activity;
(B) Separately stated charges for the use of a discrete portion of an athletic or fitness facility, other than a pool, where such discrete portion of the facility does not by itself meet the definition of "athletic or fitness facility" in this subsection;
(C) Separately stated charges for services, such as massage, nutritional consulting, and body composition testing, that do not require the customer to engage in physical fitness activities to receive the service. The exclusion in this subsection (3)(m)(ii)(C) does not apply to personal training services and instruction in a physical fitness activity;
(D) Separately stated charges for physical therapy provided by a physical therapist, as those terms are defined in RCW 18.74.010, or occupational therapy provided by an occupational therapy practitioner, as those terms are defined in RCW 18.59.020, when performed pursuant to a referral from an authorized health care practitioner or in consultation with an authorized health care practitioner. For the purposes of this subsection (3)(m)(ii)(D), an authorized health care practitioner means a health care practitioner licensed under chapter
18.83, 18.25, 18.36A, 18.57, 18.71, or
18.71A
RCW, or, until July 1, 2022, chapter
18.57A
RCW;
(E) Rent or association fees charged by a landlord or residential association to a tenant or residential owner with access to an athletic or fitness facility maintained by the landlord or residential association, unless the rent or fee varies depending on whether the tenant or owner has access to the facility;
(F) Services provided in the regular course of employment by an employee with access to an athletic or fitness facility maintained by the employer for use without charge by its employees or their family members;
(G) The provision of access to an athletic or fitness facility by an educational institution to its students and staff. However, charges made by an educational institution to its alumni or other members of the public for the use of any of the educational institution's athletic or fitness facilities are a retail sale under this subsection (3)(m). For purposes of this subsection (3)(m)(ii)(G), "educational institution" has the same meaning as in RCW 82.04.170
;
(H) Yoga, chi gong, or martial arts classes, training, or events held at a community center, park, school gymnasium, college or university, hospital or other medical facility, private residence, or any other facility that is not operated within and as part of an athletic or fitness facility.
(iii) Nothing in (m)(ii) of this subsection (3) may be construed to affect the taxation of sales made by the operator of an athletic or fitness facility, where such sales are defined as a retail sale under any provision of this section other than this subsection (3).
(iv) For the purposes of this subsection (3)(m), the following definitions apply:
(A) "Athletic or fitness facility" means an indoor or outdoor facility or portion of a facility that is primarily used for: Exercise classes; strength and conditioning programs; personal training services; tennis, racquetball, handball, squash, or pickleball; or other activities requiring the use of exercise or strength training equipment, such as treadmills, elliptical machines, stair climbers, stationary cycles, rowing machines, pilates equipment, balls, climbing ropes, jump ropes, and weightlifting equipment.
(B) "Martial arts" means any of the various systems of training for physical combat or self-defense. "Martial arts" includes, but is not limited to, karate, kung fu, tae kwon do, Krav Maga, boxing, kickboxing, jujitsu, shootfighting, wrestling, aikido, judo, hapkido, Kendo, tai chi, and mixed martial arts.
(C) "Physical fitness activities" means activities that involve physical exertion for the purpose of improving or maintaining the general fitness, strength, flexibility, conditioning, or health of the participant. "Physical fitness activities" includes participating in yoga, chi gong, or martial arts.
For the purposes of (g) through (i) and (k) of this subsection (3), the terms "sale at retail" and "retail sale" do not include a sale between members of an affiliated group as defined in RCW 82.04.299
(1)(f).
(4)(a) The term also includes the renting or leasing of tangible personal property to consumers.
(b) The term does not include the renting or leasing of tangible personal property where the lease or rental is for the purpose of sublease or subrent.
(5) The term also includes the providing of "competitive telephone service," "telecommunications service," or "ancillary services," as those terms are defined in RCW 82.04.065, to consumers.
(6)(a) The term also includes the sale of prewritten computer software, custom software, and customization of prewritten computer software to a consumer, regardless of the method of delivery to the end user. For purposes of this subsection (6)(a), the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized by the vendor or by the purchaser.
(b)(i) The term also includes the charge made to consumers for the right to access and use prewritten computer software, custom software, and customization of prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis.
(ii)(A) The service described in (b)(i) of this subsection (6) includes the right to access and use prewritten computer software, custom software, and customization of prewritten computer software to perform data processing.
(B) For purposes of this subsection (6)(b)(ii), "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities.
(7) The term also includes the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement. For purposes of this subsection, "sales price" has the same meaning as in RCW 82.08.010
.
(8)(a) The term also includes the following sales to consumers of digital goods, digital codes, and digital automated services:
(i) Sales in which the seller has granted the purchaser the right of permanent use;
(ii) Sales in which the seller has granted the purchaser a right of use that is less than permanent;
(iii) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and
(iv) Sales in which the purchaser is obligated to make continued payment as a condition of the sale.
(b) A retail sale of digital goods, digital codes, or digital automated services under this subsection (8) includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services.
(c) A retail sale of digital goods, digital codes, or digital automated services does not include the following services if the sale occurs between members of an affiliated group as defined in RCW 82.04.299
(1)(f):
(i) Any service that primarily involves the application of human effort by the seller, and the human effort originated after the customer requested the service;
(ii) Live presentations, such as lectures, seminars, workshops, or courses, where participants are connected to other participants via the internet or telecommunications equipment, which allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time;
(iii) Advertising services. For purposes of this subsection (8)(c), "advertising services" means all services directly related to the creation, preparation, production, or dissemination of advertisements. Advertising services include layout, art direction, graphic design, mechanical preparation, production supervision, placement, and rendering advice to a client concerning the best methods of advertising that client's products or services. Advertising services also include online referrals, search engine marketing and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign. Advertising services do not include web hosting services and domain name registration; and
(iv) Data processing services. For purposes of this subsection (8)(c), "data processing service" means a primarily automated service provided to a business or other organization where the primary object of the service is the systematic performance of operations by the service provider on data supplied in whole or in part by the customer to extract the required information in an appropriate form or to convert the data to usable information. Data processing services include check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. Data processing does not include the service described in subsection (6)(b) of this section.
(d) For purposes of this subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent.
(9) The term also includes the charge made for providing tangible personal property along with an operator for a fixed or indeterminate period of time. A consideration of this is that the operator is necessary for the tangible personal property to perform as designed. For the purpose of this subsection (9), an operator must do more than maintain, inspect, or set up the tangible personal property.
(10) The term does not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.
(11) The term also does not include sales of chemical sprays or washes to persons for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, nor does it include sales of feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials to: (a) Persons who participate in the federal conservation reserve program, the environmental quality incentives program, the wetlands reserve program, and the wildlife habitat incentives program, or their successors administered by the United States department of agriculture; (b) farmers for the purpose of producing for sale any agricultural product; (c) farmers for the purpose of providing bee pollination services; and (d) farmers acting under cooperative habitat development or access contracts with an organization exempt from federal income tax under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code or the Washington state department of fish and wildlife to produce or improve wildlife habitat on land that the farmer owns or leases.
(12) The term does not include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter
35.82
RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. Nor does the term include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor does the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development.
(13) The term does not include the sale of or charge made for labor, services, or tangible personal property pursuant to agreements providing maintenance services for bus, rail, or rail fixed guideway equipment when a regional transit authority is the recipient of the labor, services, or tangible personal property, and a transit agency, as defined in RCW 81.104.015, performs the labor or services.
(14) The term does not include the sale for resale of any service described in this section if the sale would otherwise constitute a "sale at retail" and "retail sale" under this section.
(15)(a) The term "sale at retail" or "retail sale" includes amounts charged, however labeled, to consumers to engage in any of the activities listed in this subsection (15)(a), including the furnishing of any associated equipment or, except as otherwise provided in this subsection, providing instruction in such activities, where such charges are not otherwise defined as a "sale at retail" or "retail sale" in this section:
(i)(A) Golf, including any variant in which either golf balls or golf clubs are used, such as miniature golf, hitting golf balls at a driving range, and golf simulators, and including fees charged by a golf course to a player for using his or her own cart. However, charges for golf instruction are not a retail sale, provided that if the instruction involves the use of a golfing facility that would otherwise require the payment of a fee, such as green fees or driving range fees, such fees, including the applicable retail sales tax, must be separately identified and charged by the golfing facility operator to the instructor or the person receiving the instruction.
(B) Notwithstanding (a)(i)(A) of this subsection (15) and except as otherwise provided in this subsection (15)(a)(i)(B), the term "sale at retail" or "retail sale" does not include amounts charged to participate in, or conduct, a golf tournament or other competitive event. However, amounts paid by event participants to the golf facility operator are retail sales under this subsection (15)(a)(i). Likewise, amounts paid by the event organizer to the golf facility are retail sales under this subsection (15)(a)(i), if such amounts vary based on the number of event participants;
(ii) Ballooning, hang gliding, indoor or outdoor sky diving, paragliding, parasailing, and similar activities;
(iii) Air hockey, billiards, pool, foosball, darts, shuffleboard, ping pong, and similar games;
(iv) Access to amusement park, theme park, and water park facilities, including but not limited to charges for admission and locker or cabana rentals. Discrete charges for rides or other attractions or entertainment that are in addition to the charge for admission are not a retail sale under this subsection (15)(a)(iv). For the purposes of this subsection, an amusement park or theme park is a location that provides permanently affixed amusement rides, games, and other entertainment, but does not include parks or zoos for which the primary purpose is the exhibition of wildlife, or fairs, carnivals, and festivals as defined in (b)(i) of this subsection;
(v) Batting cage activities;
(vi) Bowling, but not including competitive events, except that amounts paid by the event participants to the bowling alley operator are retail sales under this subsection (15)(a)(vi). Likewise, amounts paid by the event organizer to the operator of the bowling alley are retail sales under this subsection (15)(a)(vi), if such amounts vary based on the number of event participants;
(vii) Climbing on artificial climbing structures, whether indoors or outdoors;
(viii) Day trips for sightseeing purposes;
(ix) Bungee jumping, zip lining, and riding inside a ball, whether inflatable or otherwise;
(x) Horseback riding offered to the public, where the seller furnishes the horse to the buyer and providing instruction is not the primary focus of the activity, including guided rides, but not including therapeutic horseback riding provided by an instructor certified by a nonprofit organization that offers national or international certification for therapeutic riding instructors;
(xi) Fishing, including providing access to private fishing areas and charter or guided fishing, except that fishing contests and license fees imposed by a government entity are not a retail sale under this subsection;
(xii) Guided hunting and hunting at game farms and shooting preserves, except that hunting contests and license fees imposed by a government entity are not a retail sale under this subsection;
(xiii) Swimming, but only in respect to (A) recreational or fitness swimming that is open to the public, such as open swim, lap swimming, and special events like kids night out and pool parties during open swim time, and (B) pool parties for private events, such as birthdays, family gatherings, and employee outings. Fees for swimming lessons, to participate in swim meets and other competitions, or to join a swim team, club, or aquatic facility are not retail sales under this subsection (15)(a)(xiii);
(xiv) Go-karting, bumper cars, and other motorized activities where the seller provides the vehicle and the premises where the buyer will operate the vehicle;
(xv) Indoor or outdoor playground activities, such as inflatable bounce structures and other inflatables; mazes; trampolines; slides; ball pits; games of tag, including laser tag and soft-dart tag; and human gyroscope rides, regardless of whether such activities occur at the seller's place of business, but not including playground activities provided for children by a licensed child day care center or licensed family day care provider as those terms are defined in RCW 43.216.010
;
(xvi) Shooting sports and activities, such as target shooting, skeet, trap, sporting clays, "5" stand, and archery, but only in respect to discrete charges to members of the public to engage in these activities, but not including fees to enter a competitive event, instruction that is entirely or predominately classroom based, or to join or renew a membership at a club, range, or other facility;
(xvii) Paintball and airsoft activities;
(xviii) Skating, including ice skating, roller skating, and inline skating, but only in respect to discrete charges to members of the public to engage in skating activities, but not including skating lessons, competitive events, team activities, or fees to join or renew a membership at a skating facility, club, or other organization;
(xix) Nonmotorized snow sports and activities, such as downhill and cross-country skiing, snowboarding, ski jumping, sledding, snow tubing, snowshoeing, and similar snow sports and activities, whether engaged in outdoors or in an indoor facility with or without snow, but only in respect to discrete charges to the public for the use of land or facilities to engage in nonmotorized snow sports and activities, such as fees, however labeled, for the use of ski lifts and tows and daily or season passes for access to trails or other areas where nonmotorized snow sports and activities are conducted. However, fees for the following are not retail sales under this subsection (15)(a)(xix): (A) Instructional lessons; (B) permits issued by a governmental entity to park a vehicle on or access public lands; and (C) permits or leases granted by an owner of private timberland for recreational access to areas used primarily for growing and harvesting timber; and
(xx) Scuba diving; snorkeling; river rafting; surfing; kiteboarding; flyboarding; water slides; inflatables, such as water pillows, water trampolines, and water rollers; and similar water sports and activities.
(b) Notwithstanding anything to the contrary in this subsection (15), the term "sale at retail" or "retail sale" does not include charges:
(i) Made for admission to, and rides or attractions at, fairs, carnivals, and festivals. For the purposes of this subsection, fairs, carnivals, and festivals are events that do not exceed 21 days and a majority of the amusement rides, if any, are not affixed to real property;
(ii) Made by an educational institution to its students and staff for activities defined as retail sales by (a)(i) through (xx) of this subsection. However, charges made by an educational institution to its alumni or other members of the general public for these activities are a retail sale under this subsection (15). For purposes of this subsection (15)(b)(ii), "educational institution" has the same meaning as in RCW 82.04.170
;
(iii) Made by a vocational school for commercial diver training that is licensed by the workforce training and education coordinating board under chapter
28C.10
RCW; or
(iv) Made for day camps offered by a nonprofit organization or state or local governmental entity that provide youth not older than age 18, or that are focused on providing individuals with disabilities or mental illness, the opportunity to participate in a variety of supervised activities.
(16)(a) The term "sale at retail" or "retail sale" includes the purchase or acquisition of tangible personal property and specified services by a person who receives either a qualifying grant exempt from tax under RCW 82.04.767
or
82.16.320
or a grant deductible under RCW 82.04.4339, except for transactions excluded from the definition of "sale at retail" or "retail sale" by any other provision of this section. Nothing in this subsection (16) may be construed to limit the application of any other provision of this section to purchases by a recipient of either a qualifying grant exempt from tax under RCW 82.04.767
or a grant deductible under RCW 82.04.4339, or by any other person.
(b) For purposes of this subsection (16), "specified services" means:
(i) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation;
(ii) The clearing of land or the moving of earth, whether or not associated with activities described in (b)(i) of this subsection (16);
(iii) The razing or moving of existing buildings or structures; and
(iv) Landscape maintenance and horticultural services.
[
2025 c 422 s 101
. Prior:
2021 c 296 s 8
;
2021 c 143 s 2
;
2021 c 4 s 3
; (2020 c 80 s 58 repealed by 2021 c 143 s 4);
2017 3rd sp.s. c 37 s 1201
;
2015 3rd sp.s. c 6 s 1105
; (2015 3rd sp.s. c 6 s 1104 expired January 1, 2016);
2015 c 169 s 1
;
2013 2nd sp.s. c 13 s 802
;
2011 c 174 s 202
; prior:
2010 c 112 s 14
;
2010 c 111 s 201
;
2010 c 106 s 202
; prior:
2009 c 563 s 301
;
2009 c 535 s 301
; prior:
2007 c 54 s 4
;
2007 c 6 s 1004
; prior:
2005 c 515 s 2
;
2005 c 514 s 101
; prior:
2004 c 174 s 3
;
2004 c 153 s 407
;
2003 c 168 s 104
;
2002 c 178 s 1
;
2000 2nd sp.s. c 4 s 23
; prior:
1998 c 332 s 2
;
1998 c 315 s 1
;
1998 c 308 s 1
;
1998 c 275 s 1
;
1997 c 127 s 1
; prior:
1996 c 148 s 1
;
1996 c 112 s 1
;
1995 1st sp.s. c 12 s 2
;
1995 c 39 s 2
;
1993 sp.s. c 25 s 301
;
1988 c 253 s 1
; prior:
1987 c 285 s 1
;
1987 c 23 s 2
;
1986 c 231 s 1
;
1983 2nd ex.s. c 3 s 25
;
1981 c 144 s 3
;
1975 1st ex.s. c 291 s 5
;
1975 1st ex.s. c 90 s 1
;
1973 1st ex.s. c 145 s 1
;
1971 ex.s. c 299 s 3
;
1971 ex.s. c 281 s 1
;
1970 ex.s. c 8 s 1
; prior:
1969 ex.s. c 262 s 30
;
1969 ex.s. c 255 s 3
;
1967 ex.s. c 149 s 4
;
1965 ex.s. c 173 s 1
;
1963 c 7 s 1
; prior:
1961 ex.s. c 24 s 1
;
1961 c 293 s 1
;
1961 c 15 s 82.04.050
; prior:
1959 ex.s. c 5 s 2
;
1957 c 279 s 1
;
1955 c 389 s 6
;
1953 c 91 s 3
;
1951 2nd ex.s. c 28 s 3
; 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
*Reviser's note:
RCW 82.04.280
was amended by 2025 c 9 s 2, changing subsection (1)(g) to subsection (1)(f).
Effective date
—
2025 c 422 ss 101 and 201:
"Sections 101 and 201 of this act take effect October 1, 2025." [
2025 c 422 s 403
.]
Findings
—
Intent
—
2025 c 422:
"The legislature finds that, through the state's general fund, the state funds public schools, health care, and social services that help Washingtonians to succeed and thrive. These revenues help the state meet its paramount duty to amply provide every child in the state with an education, including children who qualify for special education services, creating the opportunity for each child to succeed in school and achieve success in life. Revenues generated by this act will support health care and other programs that protect the safety and well-being of the public, including behavioral health services for those living with mental illness or substance use disorder, as well as supervision of individuals who have committed crimes. These revenues will also fund social services that provide critical, basic needs assistance for our state's most vulnerable residents, including support for those with developmental disabilities and long-term care for the elderly.
Furthermore, the legislature finds that the state's tax code must be periodically reviewed and updated to ensure that tax policy reflects our modern economy. The legislature recognizes that our state and nation have moved away from a predominantly goods-based economy towards a more service-based economy. As a result, Washington's tax code, which is heavily reliant on sales taxes, continues to reach a narrowing share of economic activity subject to the retail sales tax. Similar to the marketplace fairness act of 2017, which extended retail sales tax to remote retailers with no physical presence in the state to ensure the tax code reflected the growing shift of retail sales toward online sales and away from brick-and-mortar stores located in the state, so too must this legislature consider extending the retail sales tax to computer-related services, as well as remove exemptions to the retail sales tax for digital automated services which have not been updated since 2009, and other services to which it is more appropriate to apply retail sales tax in the state's current economy. The legislature further recognizes that taxes on tobacco products, which have largely gone unchanged over the last several decades, do not adequately capture new and emerging nicotine products. As certain new products come onto the market, they are exempt from excise tax, creating an unfair advantage in the market against their competitors.
Thus, to help meet the state's paramount duty of amply providing every child in the state with an education and to support the health and well-being of Washingtonians, the legislature intends to modernize the sales tax and taxes on nicotine products by extending retail sales tax to select services, repealing certain sales tax exemptions, applying taxes on tobacco to new nicotine products, and requiring certain large businesses to make a one-time prepayment of state sales tax collections." [
2025 c 422 s 1
.]
Necessity of act
—
2025 c 422:
"This act is necessary for the support of the state government and its existing public institutions." [
2025 c 422 s 402
.]
Finding
—
Intent
—
Effective date
—
2021 c 296:
See notes following RCW 82.14.310
.
Automatic expiration date and tax preference performance statement exemption
—
Effective date
—
2021 c 143:
See notes following RCW 82.04.4339
.
Retroactive application
—
Automatic expiration date and tax preference performance statement exemption
—
Effective date
—
2021 c 4:
See notes following RCW 82.04.767
.
Intent
—
2020 c 80:
See note following RCW 18.71A.010
.
Tax preference performance statement and expiration
—
2017 3rd sp.s. c 37 s 1201:
"RCW 82.32.805
and
82.32.808
do not apply to this part." [
2017 3rd sp.s. c 37 s 1202
.]
Expiration date
—
2015 3rd sp.s. c 6 s 1104:
"Section 1104 of this act expires January 1, 2016." [
2015 3rd sp.s. c 6 s 2304
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
Tax preference intended to be permanent
—
2015 3rd sp.s. c 6 ss 1102-1106:
See notes following RCW 82.04.330
.
Effective date
—
2015 c 169:
"This act takes effect January 1, 2016." [
2015 c 169 s 14
.]
Intent
—
2013 2nd sp.s. c 13:
"It is the intent of part VIII of this act to provide a sales tax exemption for cover charges to patrons at establishments that provide the opportunity to dance. The intent is to provide tax relief to businesses who have been reporting the income for cover charges under the service and other classification, but not intending to avoid their tax obligation of collecting retail sales tax because of department and taxpayer confusion regarding the appropriate tax treatment of this income. To ensure proper tax reporting in the future by businesses who provide the opportunity to dance, the legislature intends to review the tax preference and its actual fiscal impact on state revenues to determine if the fiscal impact to state revenues reasonably conforms with the fiscal estimate in the fiscal note for this legislation." [
2013 2nd sp.s. c 13 s 801
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
Retroactive application
—
2010 c 112:
See note following RCW 82.32.780
.
Purpose
—
2010 c 111:
"The 2009 legislature enacted Engrossed Substitute House Bill No. 2075 (chapter 535, Laws of 2009), an act relating to the excise taxation of certain products and services provided or furnished electronically. The bill took effect July 26, 2009.
Engrossed Substitute House Bill No. 2075, at eighty-five pages, was a comprehensive piece of legislation that made major changes to state and local sales and use taxes, as well as the state business and occupation tax. Moreover, Engrossed Substitute House Bill No. 2075 was a complex piece of legislation because of the intricate interrelationship between the sales tax and the business and occupation tax and also because the bill affects the taxation of products and services that involve technologies that are changing rapidly.
Because of the complexity and length of Engrossed Substitute House Bill No. 2075, it was the legislature's expectation that, in the course of implementing the bill, ambiguities and unintended consequences would be discovered, which, if not corrected, will unsettle expectations. Thus, the legislature further anticipated that it would need to consider legislation in the 2010 legislative session to address these issues.
Therefore, the purpose of this act is to clarify ambiguities, correct unintended consequences, restore expectations, and conform the law to the original intent of the legislature." [
2010 c 111 s 101
.]
Retroactive application
—
2010 c 111:
"(1) Except as provided in subsection (2) of this section, this act applies both prospectively and retroactively to July 26, 2009.
(2) Sections 202, 402, and 502 of this act, and those provisions of sections 401 and 501 of this act that eliminate the sales and use tax exemptions in RCW 82.08.02082
and
82.12.02082, apply prospectively only." [
2010 c 111 s 902
.]
Effective date
—
2010 c 111:
"This act takes effect July 1, 2010." [
2010 c 111 s 903
.]
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Finding
—
Intent
—
Construction
—
Effective date
—
Reports and recommendations
—
2009 c 563:
See notes following RCW 82.32.780
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Severability
—
2007 c 54:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
2007 c 54 s 32
.]
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Findings
—
2005 c 515:
"The legislature finds that:
(1) Public entities that receive tax dollars must continuously improve the way they operate and deliver service so citizens receive maximum value for their tax dollars; and
(2) An explicit statement clarifying that no sales or use tax shall apply to the entire charge paid by regional transit authorities for bus or rail combined operations and maintenance agreements that are provided to such authorities in support of their provision of urban transportation or transportation services is necessary to improve efficient service." [
2005 c 515 s 1
.]
Effective date
—
2005 c 514:
See note following RCW 83.100.230
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
Effective date
—
2004 c 174:
See note following RCW 82.04.2908
.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Retroactive application
—
Effective date
—
2002 c 178:
See notes following RCW 67.28.180
.
Findings
—
Construction
—
2000 2nd sp.s. c 4 ss 18-30:
See notes following RCW 81.112.300
.
Findings
—
Intent
—
Effective date
—
1998 c 332:
See notes following RCW 82.04.29001
.
Effective dates
—
1998 c 308:
"(1) Sections 1 through 4 of this act take effect July 1, 1998.
(2) Section 5 of this act takes effect July 1, 2003." [
1998 c 308 s 6
.]
Effective date
—
1998 c 275:
"This act takes effect July 1, 1998." [
1998 c 275 s 2
.]
Effective date
—
1997 c 127:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997." [
1997 c 127 s 2
.]
Severability
—
1996 c 148:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1996 c 148 s 7
.]
Effective date
—
1996 c 148:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect April 1, 1996." [
1996 c 148 s 8
.]
Effective date
—
1996 c 112:
"This act shall take effect July 1, 1996." [
1996 c 112 s 5
.]
Intent
—
1995 1st sp.s. c 12:
"It is the intent of the legislature that massage services be recognized as health care practitioners for the purposes of business and occupation tax application. To achieve this intent massage services are being removed from the definition of sale at retail and retail sale." [
1995 1st sp.s. c 12 s 1
.]
Effective date
—
1995 1st sp.s. c 12:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 1st sp.s. c 12 s 5
.]
Effective date
—
1995 c 39:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 c 39 s 3
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Intent
—
Severability
—
Effective date
—
1981 c 144:
See notes following RCW 82.16.010
.
Application to preexisting contracts
—
1975 1st ex.s. c 291; 1975 1st ex.s. c 90:
See note following RCW 82.12.010
.
Effective dates
—
1975 1st ex.s. c 291:
"This 1975 amendatory act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing institutions, and shall take effect immediately: PROVIDED, That sections 8 and 26 through 43 of this amendatory act shall be effective on and after January 1, 1976: PROVIDED FURTHER, That sections 2, 3, and 4, and subsections (1) and (2) of section 24 shall be effective on and after January 1, 1977: AND PROVIDED FURTHER, That subsections (3) through (15) of section 24 shall be effective on and after January 1, 1978." [
1975 1st ex.s. c 291 s 46
.]
Severability
—
1975 1st ex.s. c 291:
"If any provision of this 1975 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [
1975 1st ex.s. c 291 s 45
.]
Effective date
—
1975 1st ex.s. c 90:
"This 1975 amendatory act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1975." [
1975 1st ex.s. c 90 s 5
.]
Effective date
—
1973 1st ex.s. c 145:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1973." [
1973 1st ex.s. c 145 s 2
.]
Effective dates
—
1971 ex.s. c 299:
"This 1971 amendatory act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect as follows:
(1) Sections 1 through 12, 15 through 34 and 53 shall take effect July 1, 1971;
(2) Sections 13, 14, and 77 and 78 shall take effect June 1, 1971; and
(3) Sections 35 through 52 and 54 through 76 shall take effect as provided in section 53." [
1971 ex.s. c 299 s 79
.]
Severability
—
1971 ex.s. c 299:
"If any phrase, clause, subsection or section of this 1971 amendatory act shall be declared unconstitutional or invalid by any court of competent jurisdiction, it shall be conclusively presumed that the legislature would have enacted this 1971 amendatory act without the phrase, clause, subsection or section so held unconstitutional or invalid and the remainder of the act shall not be affected as a result of said part being held unconstitutional or invalid." [
1971 ex.s. c 299 s 78
.]
Construction
—
Severability
—
1969 ex.s. c 255:
See notes following RCW 35.58.272
.
Effective date
—
1967 ex.s. c 149:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1967." [
1967 ex.s. c 149 s 65
.]
Effective date
—
1965 ex.s. c 173:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect June 1, 1965." [
1965 ex.s. c 173 s 33
.]
Credit for retail sales or use taxes paid to other jurisdictions with respect to property used: RCW 82.12.035
.
"Services rendered in respect to" defined: RCW 82.04.051
.
RCW 82.04.051
"Services rendered in respect to"
—
Taxation of hybrid or subsequent agreements.
(1) As used in RCW 82.04.050
and including for the purposes of the taxes imposed in chapter
82.08
RCW in addition to the taxes imposed in this chapter, the term "services rendered in respect to" means, in the context of constructing, building, repairing, improving, and decorating buildings or other structures, those services that are directly related to the constructing, building, repairing, improving, and decorating of buildings or other structures and that are performed by a person who is responsible for the performance of the constructing, building, repairing, improving, or decorating activity. The term does not include services such as engineering, architectural, surveying, flagging, accounting, legal, consulting, land development or management, or administrative services provided to the consumer of, or person responsible for performing, the constructing, building, repairing, improving, or decorating services.
(2) A contract or agreement under which a person is responsible for both services that would otherwise be subject to tax as a service under RCW 82.04.290
(2) and also constructing, building, repairing, improving, or decorating activities that would otherwise be subject to tax under another section of this chapter is subject to the tax that applies to the predominant activity under the contract or agreement.
(3) Unless otherwise provided by law, a contract or agreement under which a person is responsible for activities that are subject to tax as a service under RCW 82.04.290
(2), and a subsequent contract or agreement under which the same person is responsible for constructing, building, repairing, improving, or decorating activities subject to tax under another section of this chapter, shall not be combined and taxed as a single activity if at the time of the first contract or agreement it was not contemplated by the parties, as evidenced by the facts, that the same person would be awarded both contracts.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Land development or management" means site identification, zoning, permitting, and other preconstruction regulatory services provided to the consumer of the constructing, building, repairing, improving, or decorating services. This includes, but is not limited to, acting as an owner's representative during any design or construction period, including recommending a contractor, monitoring the budget and schedule, approving invoices, and interacting on the behalf of the consumer with the person who has control over the work itself or responsible for the performance of the work.
(b) "Responsible for the performance" means that the person is obligated to perform the activities, either personally or through a third party. A person who reviews work for a consumer, retailer, or wholesaler but does not supervise or direct the work is not responsible for the performance of the work. A person who is financially obligated for the work, such as a bank, but who does not have control over the work itself is not responsible for the performance of the work.
[
2021 c 145 s 4
;
2020 c 109 s 2
;
1999 c 212 s 2
.]
NOTES:
Finding
—
Intent
—
2020 c 109; 1999 c 212:
"(1) The legislature finds that the taxation of "services rendered in respect to constructing buildings or other structures" has generally included the entire transaction for construction, including certain services provided directly to the consumer or owner rather than the person engaged in the performance of the constructing activity. Changes in business practices and recent administrative and court decisions have confused the issue. Recognizing the need to remove barriers to the creation of affordable housing, it is the intent of the legislature to clarify which services, if standing alone and not part of the construction agreement, are taxed as retail or wholesale sales, and which services will continue to be taxed as a service.
(2) It is further the intent of the legislature to confirm that the entire price for the construction of a building or other structure for a consumer or owner continues to be a retail sale, even though some of the individual services reflected in the price, if provided alone, would be taxed as services and not as separate retail or wholesale sales.
(3) Therefore, the intent of this act is to maintain the application of the law and not to extend retail treatment to activities not previously treated as retail activities. Services that are otherwise subject to tax as a service under RCW 82.04.290
(2), including but not limited to engineering, architectural, surveying, flagging, accounting, legal, consulting, or administrative services, remain subject to tax as a service under RCW 82.04.290
(2), if the person responsible for the performance of those services is not also responsible for the performance of the constructing, building, repairing, improving, or decorating activities. Additionally, unless otherwise provided by law, a person entering into an agreement to be responsible for the performance of services otherwise subject to tax as a service under RCW 82.04.290
(2), and subsequently entering into a separate agreement to be responsible for the performance of constructing, building, repairing, improving, or decorating activities, is subject to tax as a service under RCW 82.04.290
(2) with respect to the first agreement, and is subject to tax under the appropriate section of chapter
82.04
RCW with respect to the second agreement, if at the time of the first agreement there was no contemplation by the parties, as evidenced by the facts, that the agreements would be awarded to the same person." [
2020 c 109 s 1
;
1999 c 212 s 1
.]
RCW 82.04.060
"Sale at wholesale," "wholesale sale."
"Sale at wholesale" or "wholesale sale" means:
(1) Any sale, which is not a sale at retail, of:
(a) Tangible personal property;
(b) Services defined as a retail sale in RCW 82.04.050
(2) (a) or (g);
(c) Activities defined as a retail sale in RCW 82.04.050
(15);
(d) Prewritten computer software;
(e) Services described in *RCW 82.04.050
(6)(c);
(f) Extended warranties as defined in RCW 82.04.050
(7);
(g) Competitive telephone service, ancillary services, or telecommunications service as those terms are defined in RCW 82.04.065
; or
(h) Digital goods, digital codes, or digital automated services;
(2) Any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale by RCW 82.04.050
when rendered to or for consumers. For the purposes of this subsection (2), "real or personal property" does not include any natural products named in RCW 82.04.100
; and
(3) The sale of any service for resale, if the sale is excluded from the definition of "sale at retail" and "retail sale" in RCW 82.04.050
(14).
[
2017 c 323 s 512
;
2015 c 169 s 2
;
2010 c 106 s 203
;
2009 c 535 s 403
;
2007 c 6 s 1007
;
2005 c 514 s 102
;
2002 c 367 s 1
;
1998 c 332 s 5
;
1996 c 148 s 3
;
1983 2nd ex.s. c 3 s 26
;
1961 c 15 s 82.04.060
. Prior:
1955 ex.s. c 10 s 4
;
1955 c 389 s 7
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
*
Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Effective date
—
2015 c 169:
See note following RCW 82.04.050
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Effective date
—
2005 c 514:
See note following RCW 83.100.230
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
Severability
—
2002 c 367:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
2002 c 367 s 7
.]
Effective date
—
2002 c 367:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect June 1, 2002." [
2002 c 367 s 8
.]
Findings
—
Intent
—
Effective date
—
1998 c 332:
See notes following RCW 82.04.29001
.
Severability
—
Effective date
—
1996 c 148:
See notes following RCW 82.04.050
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
RCW 82.04.062
"Sale at wholesale," "sale at retail" excludes sale of precious metal bullion and monetized bullion
—
Computation of tax.
(Effective until January 1, 2026.)
(1) For purposes of this chapter, "wholesale sale," "sale at wholesale," "retail sale," and "sale at retail" do not include the sale of precious metal bullion or monetized bullion.
(2) In computing tax under this chapter on the business of making sales of precious metal bullion or monetized bullion, the tax shall be imposed on the amounts received as commissions upon transactions for the accounts of customers over and above the amount paid to other dealers associated in such transactions, but no deduction or offset is allowed on account of salaries or commissions paid to salesmen or other employees.
(3) For purposes of this section, "precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art.
[
1985 c 471 s 5
.]
NOTES:
Severability
—
Effective date
—
1985 c 471:
See notes following RCW 82.04.260
.
RCW 82.04.065
Telephone, telecommunications, and ancillary services
—
Definitions.
(1) "800 service" means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers designated by the federal communications commission.
(2) "900 service" means an inbound toll "telecommunications service" purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service" does not include the charge for: Collection services provided by the seller of the telecommunications services to the subscriber, or services or products sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers designated by the federal communications commission.
(3) "Ancillary services" means services that are associated with or incidental to the provision of "telecommunications services," including but not limited to "detailed telecommunications billing," "directory assistance," "vertical service," and "voice mail services."
(4) "Charges for mobile telecommunications services" means any charge for, or associated with, the provision of commercial mobile radio service, as defined in section 20.3, Title 47 C.F.R. as in effect on June 1, 1999, or any charge for, or associated with, a service provided as an adjunct to a commercial mobile radio service, regardless of whether individual transmissions originate or terminate within the licensed service area of the mobile telecommunications service provider.
(5) "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title
80
RCW and for which a separate charge is made.
(6) "Conference-bridging service" means an ancillary service that links two or more participants of an audio or videoconference call and may include the provision of a telephone number. "Conference-bridging service" does not include the telecommunications services used to reach the conference bridge.
(7) "Customer" means: (a) The person or entity that contracts with the home service provider for mobile telecommunications services; or (b) the end user of the mobile telecommunications service, if the end user of mobile telecommunications services is not the contracting party, but this subsection (7)(b) applies only for the purpose of determining the place of primary use. The term does not include a reseller of mobile telecommunications service, or a serving carrier under an arrangement to serve the customer outside the home service provider's licensed service area.
(8) "Designated database provider" means a person representing all the political subdivisions of the state that is:
(a) Responsible for providing an electronic database prescribed in 4 U.S.C. Sec. 119(a) if the state has not provided an electronic database; and
(b) Approved by municipal and county associations or leagues of the state whose responsibility it would otherwise be to provide a database prescribed by 4 U.S.C. Secs. 116 through 126.
(9) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.
(10) "Directory assistance" means an ancillary service of providing telephone number information, and/or address information.
(11) "Enhanced zip code" means a United States postal zip code of nine or more digits.
(12) "Fixed wireless service" means a telecommunications service that provides radio communication between fixed points.
(13) "Home service provider" means the facilities-based carrier or reseller with whom the customer contracts for the provision of mobile telecommunications services.
(14) "Licensed service area" means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.
(15) "Mobile telecommunications service" means commercial mobile radio service, as defined in section 20.3, Title 47 C.F.R. as in effect on June 1, 1999.
(16) "Mobile telecommunications service provider" means a home service provider or a serving carrier.
(17) "Mobile wireless service" means a telecommunications service that is transmitted, conveyed, or routed regardless of the technology used, whereby the origination and/or termination points of the transmission, conveyance, or routing are not fixed, including, by way of example only, telecommunications services that are provided by a commercial mobile radio service provider.
(18) "Paging service" means a telecommunications service that provides transmission of coded radio signals for the purpose of activating specific pagers; these transmissions may include messages and/or sounds.
(19) "Place of primary use" means the street address representative of where the customer's use of the mobile telecommunications service primarily occurs, which must be:
(a) The residential street address or the primary business street address of the customer; and
(b) Within the licensed service area of the home service provider.
(20) "Prepaid calling service" means the right to access exclusively telecommunications services, which must be paid for in advance and which enable the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount.
(21) "Prepaid telephone calling service" means the right to purchase exclusively telecommunications services that must be paid for in advance, that enables the origination of calls using an access number, authorization code, or both, whether manually or electronically dialed, if the remaining amount of units of service that have been prepaid is known by the provider of the prepaid service on a continuous basis.
(22) "Prepaid wireless calling service" means a telecommunications service that provides the right to use mobile wireless service as well as other nontelecommunications services including the download of digital products delivered electronically, content, and ancillary services, which must be paid for in advance and that is sold in predetermined units or dollars of which the number declines with use in a known amount.
(23) "Private communications service" means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which the channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of the channel or channels.
(24) "Reseller" means a provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service. "Reseller" does not include a serving carrier with whom a home service provider arranges for the services to its customers outside the home service provider's licensed service area.
(25) "Serving carrier" means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider's or reseller's licensed service area.
(26) "Taxing jurisdiction" means any of the several states, the District of Columbia, or any territory or possession of the United States, any municipality, city, county, township, parish, transportation district, or assessment jurisdiction, or other political subdivision within the territorial limits of the United States with the authority to impose a tax, charge, or fee.
(27) "Telecommunications service" means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. "Telecommunications service" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over internet protocol services or is classified by the federal communications commission as enhanced or value added. "Telecommunications service" does not include:
(a) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information;
(b) Installation or maintenance of wiring or equipment on a customer's premises;
(c) Tangible personal property;
(d) Advertising, including but not limited to directory advertising;
(e) Billing and collection services provided to third parties;
(f) Internet access service;
(g) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Radio and television audio and video programming services include but are not limited to cable service as defined in 47 U.S.C. Sec. 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in section 20.3, Title 47 C.F.R.;
(h) Ancillary services;
(i) Digital products delivered electronically, including but not limited to music, video, reading materials, or ring tones; or
(j) Software delivered electronically.
(28) "Value-added nonvoice data service" means a service that otherwise meets the definition of telecommunications services in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for a purpose other than transmission, conveyance, or routing.
(29) "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, that offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference-bridging services.
(30) "Voice mail service" means an ancillary service that enables the customer to store, send, or receive recorded messages. "Voice mail service" does not include any vertical services that the customer may be required to have in order to use the voice mail service.
[
2009 c 535 s 413
;
2007 c 6 s 1003
;
2007 c 6 s 1002
;
2002 c 67 s 2
;
1997 c 304 s 5
;
1983 2nd ex.s. c 3 s 24
.]
NOTES:
Reviser's note:
The definitions in this section have been alphabetized pursuant to RCW 1.08.015
(2)(k).
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
*Contingent effective date
—
2007 c 6 ss 1003, 1006, 1014, and 1018:
"Sections 1003, 1006, 1014, and 1018 of this act take effect the later of: The date chapter 67, Laws of 2002, becomes null and void; or July 1, 2008." [
2007 c 6 s 1707
.]
*Reviser's note:
2002 C 67 s 18 was repealed by 2007 c 54 s 2 without cognizance of its amendment by
2007 c 6 s 1701
. That section has been decodified for publication purposes under RCW 1.12.025
.
Finding
—
Effective date
—
2002 c 67:
See notes following RCW 82.04.530
.
Findings
—
Severability
—
Effective date
—
1997 c 304:
See notes following RCW 35.21.717
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
License fees or taxes on telephone business by cities: RCW 35.21.712
through
35.21.715
.
Sales tax exemption for certain telephone, telecommunications, and ancillary services: RCW 82.08.0289
.
RCW 82.04.066
"Engaging within this state," "engaging within the state."
"Engaging within this state" and "engaging within the state," when used in connection with any apportionable activity as defined in RCW 82.04.460
or selling activity taxable under RCW 82.04.250
(1), 82.04.257
(1), 82.04.270, or other provision of this chapter means that a person generates gross income of the business from sources within this state, such as customers or intangible property located in this state, regardless of whether the person is physically present in this state.
[
2019 c 8 s 702
;
2017 3rd sp.s. c 28 s 301
;
2015 3rd sp.s. c 5 s 203
;
2010 1st sp.s. c 23 s 103
.]
NOTES:
Effective date
—
2019 c 8 ss 102, 103, 107, and 701-703:
See note following RCW 82.04.067
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Existing rights and liability
—
Severability
—
Application
—
Effective dates
—
2017 3rd sp.s. c 28:
See notes following RCW 82.08.0531
.
Construction
—
2017 c 323:
See note following RCW 82.08.052
.
Effective dates
—
Finding
—
Intent
—
2015 3rd sp.s. c 5:
See notes following RCW 82.08.052
.
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
RCW 82.04.067
Substantial nexus
—
Engaging in business.
(1) A person engaging in business is deemed to have substantial nexus with this state if, in the current or immediately preceding calendar year, the person is:
(a) An individual and is a resident or domiciliary of this state;
(b) A business entity and is organized or commercially domiciled in this state; or
(c) A nonresident individual or a business entity that is organized or commercially domiciled outside this state, and the person had:
(i) More than one hundred thousand dollars of cumulative gross receipts from this state; or
(ii) Subject to the limitation in RCW 82.32.531, physical presence in this state, which need only be demonstrably more than a slightest presence.
(2)(a) Cumulative gross receipts counting toward the threshold in subsection (1)(c)(i) of this section include all of a person's gross income of the business attributed to this state. For purposes of this subsection, gross income of the business is attributed to this state as follows:
(i) For apportionable income, all amounts included in the numerator of the receipts factor under RCW 82.04.462
and, in the case of financial institutions, all amounts included in the numerator of the receipts factor under the rule adopted by the department as authorized in RCW 82.04.460
(2); and
(ii) For all other income, the gross income of the business allocated to this state in accordance with the sourcing provisions of RCW 82.32.730
.
(b) For a marketplace facilitator, cumulative gross receipts counting toward the threshold in subsection (1)(c)(i) of this section include, in addition to the gross proceeds of its own sales, the cumulative gross proceeds from sales by all marketplace sellers through the marketplace facilitator's marketplace, including marketplace sellers that do not have a substantial nexus with this state under the provisions of this section.
(3)(a) For purposes of subsection (1)(c)(ii) of this section, a person is physically present in this state if the person has property or employees in this state.
(b) A person is also physically present in this state for the purposes of subsection (1)(c)(ii) of this section if the person, either directly or through an agent or other representative, engages in activities in this state that are significantly associated with the person's ability to establish or maintain a market for its products in this state.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Apportionable income" has the same meaning as provided in RCW 82.04.460
.
(b) "Marketplace," "marketplace facilitator," and "marketplace seller" have the same meaning as provided in RCW 82.08.010
.
(c) "Product" has the same meaning as provided in RCW 82.32.023
.
[
2019 c 8 s 102
;
2019 c 8 s 101
;
2017 3rd sp.s. c 28 s 302
;
2016 c 137 s 2
;
2015 3rd sp.s. c 5 s 204
;
2010 1st sp.s. c 23 s 104
.]
NOTES:
Effective date
—
2019 c 8 ss 102, 103, 107, and 701-703:
"Sections 102, 103, 107, 701, 702, and 703 of this act take effect January 1, 2020." [
2019 c 8 s 806
.]
Effective date
—
2019 c 8 ss 101, 104, 106, 201, 402-405, and 501:
See note following RCW 82.02.250
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Existing rights and liability
—
Severability
—
Application
—
Effective dates
—
2017 3rd sp.s. c 28:
See notes following RCW 82.08.0531
.
Construction
—
2017 c 323:
See note following RCW 82.08.052
.
Effective date
—
2016 c 137:
"This act takes effect July 1, 2016." [
2016 c 137 s 4
.]
Effective dates
—
Finding
—
Intent
—
2015 3rd sp.s. c 5:
See notes following RCW 82.08.052
.
Contingency
—
2010 1st sp.s. c 23 ss 102-112:
"If a court of competent jurisdiction, in a final judgment not subject to appeal, adjudges any provision of section 104(1)(c) of this act unconstitutional or otherwise invalid, Part I of this act is null and void in its entirety." [
2010 1st sp.s. c 23 s 1701
.]
Application
—
2010 1st sp.s. c 23 ss 102-112:
"Part I of this act applies with respect to gross income of the business, as defined in RCW 82.04.080, including gross income from royalties as defined in RCW 82.04.2907, generated on and after June 1, 2010. For purposes of calculating the thresholds in section 104(1)(c) of this act for the 2010 tax year, property, payroll, and receipts are based on the entire 2010 tax year." [
2010 1st sp.s. c 23 s 1702
.]
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
RCW 82.04.070
"Gross proceeds of sales."
"Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property, digital goods, digital codes, digital automated services, and/or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses.
[
2009 c 535 s 404
;
1961 c 15 s 82.04.070
. Prior:
1955 c 389 s 8
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
RCW 82.04.080
"Gross income of the business."
(1) "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses.
(2) Financial institutions must determine gains realized from trading in stocks, bonds, and other evidences of indebtedness on a net annualized basis. For purposes of this subsection, a financial institution means a person within the scope of the rule adopted by the department under the authority of RCW 82.04.460
(2).
[
2010 1st sp.s. c 23 s 109
;
1961 c 15 s 82.04.080
. Prior:
1955 c 389 s 9
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
RCW 82.04.090
"Value proceeding or accruing."
"Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. However, persons operating grain warehouses licensed under chapter
22.09
RCW may elect to report the value proceeding or accruing from grain warehouse operations on either a cash receipts or accrual basis. The department of revenue may provide by regulation that the value proceeding or accruing from sales on the installment plan under conditional contracts of sale may be reported as of the dates when the payments become due.
[
2001 c 20 s 1
;
1975 1st ex.s. c 278 s 40
;
1961 c 15 s 82.04.090
. Prior:
1955 c 389 s 10
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Effective date
—
2001 c 20:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2001." [
2001 c 20 s 2
.]
Construction
—
Severability
—
1975 1st ex.s. c 278:
See notes following RCW 11.08.160
.
RCW 82.04.100
"Extractor."
"Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product, or fells, cuts or takes timber, Christmas trees other than plantation Christmas trees, or other natural products, or takes fish, shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; persons meeting the definition of farmer under RCW 82.04.213
; or persons producing cannabis.
[
2022 c 16 s 138
;
2014 c 140 s 1
;
2001 c 118 s 1
;
1987 c 23 s 3
;
1985 c 148 s 2
;
1965 ex.s. c 173 s 2
;
1961 c 15 s 82.04.100
. Prior:
1955 c 389 s 11
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
1965 ex.s. c 173:
See note following RCW 82.04.050
.
Withdrawal of gas from underground reservoir not deemed taking or producing under RCW 82.04.100
: RCW 80.40.010
.
RCW 82.04.110
"Manufacturer."
(1) Except as otherwise provided in this section, "manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from his or her own materials or ingredients any articles, substances, or commodities.
(2)(a) When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, all or a portion of the materials that become a part or whole of the manufactured article, the department shall prescribe equitable rules for determining tax liability.
(b) A person who produces aluminum master alloys is a processor for hire rather than a manufacturer, regardless of the portion of the aluminum provided by that person's customer. For the purposes of this subsection (2)(b), "aluminum master alloy" means an alloy registered with the aluminum association as a grain refiner or a hardener alloy using the American national standards institute designating system H35.3.
(3) A nonresident of this state who is the owner of materials processed for it in this state by a processor for hire shall not be deemed to be engaged in business in this state as a manufacturer because of the performance of such processing work for it in this state.
(4) The owner of materials from which a nuclear fuel assembly is made for it by a processor for hire shall not be subject to tax under this chapter as a manufacturer of the fuel assembly.
(5) For purposes of this section, the terms "articles," "substances," "materials," "ingredients," and "commodities" do not include digital goods.
[
2009 c 535 s 405
;
1997 c 453 s 1
;
1971 ex.s. c 186 s 1
;
1961 c 15 s 82.04.110
. Prior:
1955 c 389 s 12
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Effective date
—
1997 c 453:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997." [
1997 c 453 s 2
.]
Effective date
—
1971 ex.s. c 186:
"The effective date of this 1971 amendatory act is July 1, 1971." [
1971 ex.s. c 186 s 5
.]
RCW 82.04.120
"To manufacture."
(1) "To manufacture" embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and includes:
(a) The production or fabrication of special made or custom made articles;
(b) The production or fabrication of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician;
(c) Cutting, delimbing, and measuring of felled, cut, or taken trees;
(d) Crushing and/or blending of rock, sand, stone, gravel, or ore;
(e) The production of compressed natural gas or liquefied natural gas for use as a transportation fuel as defined in RCW 82.16.310
; and
(f) The production or processing of renewable natural gas.
(2) "To manufacture" does not include:
(a) Conditioning of seed for use in planting; cubing hay or alfalfa;
(b) Activities which consist of cutting, grading, or ice glazing seafood which has been cooked, frozen, or canned outside this state;
(c) The growing, harvesting, or producing of agricultural products;
(d) Packing of agricultural products, including sorting, washing, rinsing, grading, waxing, treating with fungicide, packaging, chilling, or placing in controlled atmospheric storage;
(e) The production of digital goods;
(f) The production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser; and
(g) Except as provided in subsection (1)(e) of this section, any activity that is integral to any public service business as defined in RCW 82.16.010
and with respect to which the gross income associated with such activity: (i) Is subject to tax under chapter
82.16
RCW; or (ii) would be subject to tax under chapter
82.16
RCW if such activity were conducted in this state or if not for an exemption or deduction.
(3) With respect to wastewater treatment facilities:
(a) "To manufacture" does not include the treatment of wastewater, the production of reclaimed water, and the production of class B biosolids; and
(b) "To manufacture" does include the production of class A or exceptional quality biosolids, but only with respect to the processing activities that occur after the biosolids have reached class B standards.
[
2019 c 202 s 3
;
2014 c 216 s 303
;
2011 c 23 s 3
;
2009 c 535 s 406
;
2003 c 168 s 604
;
1999 sp.s. c 9 s 1
;
1999 c 211 s 2
;
1998 c 168 s 1
;
1997 c 384 s 1
;
1989 c 302 s 201
. Prior:
1989 c 302 s 101
;
1987 c 493 s 1
;
1982 2nd ex.s. c 9 s 2
;
1975 1st ex.s. c 291 s 6
;
1965 ex.s. c 173 s 3
;
1961 c 15 s 82.04.120
; prior:
1959 ex.s. c 3 s 2
;
1955 c 389 s 13
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Automatic expiration date and tax preference performance statement exemption
—
2019 c 202:
See note following RCW 82.16.310
.
Effective date
—
Findings
—
Tax preference performance statement
—
2014 c 216:
See notes following RCW 82.38.030
.
Findings
—
Application
—
2011 c 23:
See notes following RCW 82.08.02565
.
Effective date
—
Construction
—
2011 c 23:
See notes following RCW 82.08.025651
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Intent
—
1999 sp.s. c 9:
"This act is intended to clarify that this is the intent of the legislature both retroactively and prospectively." [
1999 sp.s. c 9 s 4
.]
Severability
—
1999 sp.s. c 9:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1999 sp.s. c 9 s 5
.]
Effective date
—
1999 sp.s. c 9:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [June 7, 1999]." [
1999 sp.s. c 9 s 6
.]
Intent
—
1999 c 211 ss 2 and 3:
"The legislature intends that sections 2 and 3 of this act be clarifying in nature and are retroactive in response to the administrative difficulties encountered in implementing the original legislation." [
1999 c 211 s 4
.]
Effective date
—
1999 c 211 ss 1-4:
"Sections 1 through 4 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [May 7, 1999]." [
1999 c 211 s 7
.]
Finding
—
Intent
—
1999 c 211:
See note following RCW 82.08.02565
.
Effective date
—
1998 c 168:
"This act takes effect October 1, 1998." [
1998 c 168 s 4
.]
Effective date
—
1997 c 384:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997." [
1997 c 384 s 3
.]
Finding
—
Purpose
—
1989 c 302:
"(1) The legislature finds that chapter 9, Laws of 1982 2nd ex. sess. was intended to extend state public utility taxation to electrical energy generated in this state for eventual distribution outside this state. The legislature further finds that chapter 9, Laws of 1982 2nd ex. sess. was held unconstitutional by the Thurston county superior court in
Washington Water Power v. State of Washington
(memorandum opinion No. 83-2-00977-1). The purpose of *Part I of this act is to recognize the effect of that decision by correcting the relevant RCW sections to read as though the legislature had not enacted chapter 9, Laws of 1982 2nd ex. sess., and thereby make clear the effect of subsequent amendments in *Part II of this act.
(2) The purpose of *Part II of this act is to provide a constitutional means of replacing the revenue lost as a result of the Washington Water Power decision." [
1989 c 302 s 1
.]
*Reviser's note:
For "Part" division see 1989 c 302.
Effective date
—
1982 2nd ex.s. c 9:
See note following RCW 82.16.010
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 82.04.130
"Commercial or industrial use."
"Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereof:
(1) Any use as a consumer; and
(2) The manufacturing of articles, substances or commodities.
[
1967 ex.s. c 149 s 5
;
1961 c 15 s 82.04.130
. Prior:
1955 c 389 s 14
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.140
"Business."
"Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly.
[
1961 c 15 s 82.04.140
. Prior:
1955 c 389 s 15
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.150
"Engaging in business."
"Engaging in business" means commencing, conducting, or continuing in business and also the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business.
[
1961 c 15 s 82.04.150
. Prior:
1955 c 389 s 16
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.160
"Cash discount."
"Cash discount" means a deduction from the invoice price of goods or charge for services which is allowed if the bill is paid on or before a specified date.
[
1961 c 15 s 82.04.160
. Prior:
1955 c 389 s 17
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.170
"Tuition fee."
"Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a nonprofit organization, as defined by the internal revenue code Sec. 501(c)(3), if such educational institution grants college credit for coursework successfully completed through the educational program, or an approved branch campus of a foreign degree-granting institution in compliance with chapter
28B.90
RCW, and in accordance with RCW 82.04.4332
or defined as a degree-granting institution under RCW 28B.85.010
(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions.
[
1993 sp.s. c 18 s 37
;
1993 c 181 s 13
;
1992 c 206 s 1
;
1985 c 135 s 1
;
1961 c 15 s 82.04.170
. Prior:
1955 c 389 s 18
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Reviser's note:
This section was amended by 1993 c 181 s 13 and by 1993 sp.s. c 18 s 37, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Effective date
—
1993 sp.s. c 18:
See note following RCW 28B.12.060
.
Effective dates
—
1992 c 206:
"This act shall take effect July 1, 1992, except sections 7 and 8 of this act which shall take effect January 1, 1993, and sections 9 through 12 of this act which are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect June 1, 1992." [
1992 c 206 s 16
.]
RCW 82.04.180
"Successor."
(1) "Successor" means:
(a) Any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, more than fifty percent of the fair market value of either the (i) tangible assets or (ii) intangible assets of the taxpayer; or
(b) A surviving corporation of a statutory merger.
(2) Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor.
[
2003 1st sp.s. c 13 s 11
;
1985 c 414 s 6
;
1961 c 15 s 82.04.180
. Prior:
1955 c 389 s 19
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Effective dates
—
2003 1st sp.s. c 13:
See note following RCW 82.32.045
.
RCW 82.04.190
"Consumer."
"Consumer" means the following:
(1) Except as provided otherwise in this section, any person who purchases, acquires, owns, holds, or uses any article of tangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than for the purpose of:
(a) Resale as tangible personal property in the regular course of business;
(b) Incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers;
(c) Consuming such property in producing for sale as a new article of tangible personal property or a new substance, of which such property becomes an ingredient or component or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale;
(d) Consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or
(e) Satisfying the person's obligations under an extended warranty as defined in RCW 82.04.050
(7), if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person;
(2)(a) Any person engaged in any business activity taxable under RCW 82.04.290
or
82.04.2908
; (b) any person who purchases, acquires, or uses any competitive telephone service, ancillary services, or telecommunications service as those terms are defined in RCW 82.04.065, other than for resale in the regular course of business; (c) any person who purchases, acquires, or uses any service defined in RCW 82.04.050
(2) (a) or (g), other than for resale in the regular course of business or for the purpose of satisfying the person's obligations under an extended warranty as defined in RCW 82.04.050
(7); (d) any person who makes a purchase meeting the definition of "sale at retail" and "retail sale" under RCW 82.04.050
(15), other than for resale in the regular course of business; (e) any person who purchases or acquires an extended warranty as defined in RCW 82.04.050
(7) other than for resale in the regular course of business; and (f) any person who is an end user of software. For purposes of this subsection (2)(f) and RCW 82.04.050
(6), a person who purchases or otherwise acquires prewritten computer software, who provides services described in *RCW 82.04.050
(6)(c) and who will charge consumers for the right to access and use the prewritten computer software, is not an end user of the prewritten computer software;
(3) Any person engaged in the business of contracting for the building, repairing or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state of Washington or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind as defined in RCW 82.04.280, in respect to tangible personal property when such person incorporates such property as an ingredient or component of such publicly owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right-of-way of such street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of such mass public transportation terminal or parking facility;
(4) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business, excluding only (a) municipal corporations or political subdivisions of the state in respect to labor and services rendered to their real property which is used or held for public road purposes, and (b) the United States, instrumentalities thereof, and county and city housing authorities created pursuant to chapter
35.82
RCW in respect to labor and services rendered to their real property. Nothing contained in this or any other subsection of this definition may be construed to modify any other definition of "consumer";
(5) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business;
(6) Any person engaged in the business of constructing, repairing, decorating, or improving new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter
35.82
RCW, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation; also, any person engaged in the business of clearing land and moving earth of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter
35.82
RCW. Any such person is a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person, except that consumer does not include any person engaged in the business of constructing, repairing, decorating, or improving new or existing buildings or other structures under, upon, or above real property of or for the United States, or any instrumentality thereof, if the investment project would qualify for sales and use tax deferral under chapter
82.63
RCW if undertaken by a private entity;
(7) Any person who is a lessor of machinery and equipment, the rental of which is exempt from the tax imposed by RCW 82.08.020
under RCW 82.08.02565, with respect to the sale of or charge made for tangible personal property consumed in respect to repairing the machinery and equipment, if the tangible personal property has a useful life of less than one year. Nothing contained in this or any other subsection of this section may be construed to modify any other definition of "consumer";
(8) Any person engaged in the business of cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development;
(9) Any person who is an owner, lessee, or has the right of possession of tangible personal property that, under the terms of an extended warranty as defined in RCW 82.04.050
(7), has been repaired or is replacement property, but only with respect to the sale of or charge made for the repairing of the tangible personal property or the replacement property;
(10) Any person who purchases, acquires, or uses services described in *RCW 82.04.050
(6)(c) other than:
(a) For resale in the regular course of business; or
(b) For purposes of consuming the service described in *RCW 82.04.050
(6)(c) in producing for sale a new product, but only if such service becomes a component of the new product. For purposes of this subsection (10), "product" means a digital product, an article of tangible personal property, or the service described in *RCW 82.04.050
(6)(c);
(11)(a) Any end user of a digital product or digital code. "Consumer" does not include any person who is not an end user of a digital product or a digital code and purchases, acquires, owns, holds, or uses any digital product or digital code for purposes of consuming the digital product or digital code in producing for sale a new product, but only if the digital product or digital code becomes a component of the new product. A digital code becomes a component of a new product if the digital good or digital automated service acquired through the use of the digital code becomes incorporated into a new product. For purposes of this subsection, "product" has the same meaning as in subsection (10) of this section.
(b)(i) For purposes of this subsection, "end user" means any taxpayer as defined in RCW 82.12.010
other than a taxpayer who receives by contract a digital product for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition of the product, in whole or in part, to others. A person that purchases digital products or digital codes for the purpose of giving away such products or codes will not be considered to have engaged in the distribution or redistribution of such products or codes and will be treated as an end user;
(ii) If a purchaser of a digital code does not receive the contractual right to further redistribute, after the digital code is redeemed, the underlying digital product to which the digital code relates, then the purchaser of the digital code is an end user. If the purchaser of the digital code receives the contractual right to further redistribute, after the digital code is redeemed, the underlying digital product to which the digital code relates, then the purchaser of the digital code is not an end user. A purchaser of a digital code who has the contractual right to further redistribute the digital code is an end user if that purchaser does not have the right to further redistribute, after the digital code is redeemed, the underlying digital product to which the digital code relates;
(12) Any person who provides services described in RCW 82.04.050
(9). Any such person is a consumer with respect to the purchase, acquisition, or use of the tangible personal property that the person provides along with an operator in rendering services defined as a retail sale in RCW 82.04.050
(9). Any such person may also be a consumer under other provisions of this section;
(13) Any person who purchases, acquires, owns, holds, or uses chemical sprays or washes for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, or who purchases feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials, is not a consumer of such items, but only to the extent that the items:
(a) Are used in relation to the person's participation in the federal conservation reserve program, the environmental quality incentives program, the wetlands reserve program, the wildlife habitat incentives program, or their successors administered by the United States department of agriculture;
(b) Are for use by a farmer for the purpose of producing for sale any agricultural product; or
(c) Are for use by a farmer to produce or improve wildlife habitat on land the farmer owns or leases while acting under cooperative habitat development or access contracts with an organization exempt from federal income tax under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code or the Washington state department of fish and wildlife;
(14) A regional transit authority is not a consumer with respect to labor, services, or tangible personal property purchased pursuant to agreements providing maintenance services for bus, rail, or rail fixed guideway equipment when a transit agency, as defined in RCW 81.104.015, performs the labor or services; and
(15) The term "consumer" does not include:
(a) An animal rescue organization with respect to animals under its care and control; and
(b) Any person with respect to an animal adopted by that person from an animal rescue organization.
[
2017 c 323 s 513
;
2017 c 323 s 202
;
2015 c 169 s 3
;
2014 c 97 s 302
. Prior:
2010 c 111 s 202
;
2010 c 106 s 204
;
2009 c 535 s 302
;
2007 c 6 s 1008
;
2005 c 514 s 103
; prior:
2004 c 174 s 4
;
2004 c 2 s 8
;
2002 c 367 s 2
; prior:
1998 c 332 s 6
;
1998 c 308 s 2
; prior:
1996 c 173 s 2
;
1996 c 148 s 4
;
1996 c 112 s 2
;
1995 1st sp.s. c 3 s 4
;
1986 c 231 s 2
;
1985 c 134 s 1
;
1983 2nd ex.s. c 3 s 27
;
1975 1st ex.s. c 90 s 2
;
1971 ex.s. c 299 s 4
;
1969 ex.s. c 255 s 4
;
1967 ex.s. c 149 s 6
;
1965 ex.s. c 173 s 4
;
1961 c 15 s 82.04.190
; prior:
1959 ex.s. c 3 s 3
;
1957 c 279 s 2
;
1955 c 389 s 20
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
NOTES:
Reviser's note:
*(1) RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025.
(2) This section was amended by 2017 c 323 s 202 and by 2017 c 323 s 513, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Application
—
2017 c 323 ss 201 and 202:
See note following RCW 82.04.040
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Effective date
—
2015 c 169:
See note following RCW 82.04.050
.
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Effective date
—
2005 c 514:
See note following RCW 83.100.230
.
Part headings not law
—
Severability
—
2005 c 514:
See notes following RCW 82.12.808
.
Effective date
—
2004 c 174:
See note following RCW 82.04.2908
.
Severability
—
Effective date
—
2002 c 367:
See notes following RCW 82.04.060
.
Findings
—
Intent
—
Effective date
—
1998 c 332:
See notes following RCW 82.04.29001
.
Effective dates
—
1998 c 308:
See note following RCW 82.04.050
.
Findings
—
Intent
—
1996 c 173:
See note following RCW 82.08.02565
.
Severability
—
Effective date
—
1996 c 148:
See notes following RCW 82.04.050
.
Effective date
—
1996 c 112:
See note following RCW 82.04.050
.
Findings
—
Effective date
—
1995 1st sp.s. c 3:
See notes following RCW 82.08.02565
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Application to preexisting contracts
—
1975 1st ex.s. c 90:
See note following RCW 82.12.010
.
Effective date
—
1975 1st ex.s. c 90:
See note following RCW 82.04.050
.
Effective dates
—
Severability
—
1971 ex.s. c 299:
See notes following RCW 82.04.050
.
Construction
—
Severability
—
1969 ex.s. c 255:
See notes following RCW 35.58.272
.
RCW 82.04.192
Digital products definitions.
(Effective until October 1, 2025.)
(1) "Digital audio works" means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones.
(2) "Digital audiovisual works" means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.
(3)(a) "Digital automated service," except as provided in (b) of this subsection (3), means any service transferred electronically that uses one or more software applications.
(b) "Digital automated service" does not include:
(i) Any service that primarily involves the application of human effort by the seller, and the human effort originated after the customer requested the service;
(ii) The loaning or transferring of money or the purchase, sale, or transfer of financial instruments. For purposes of this subsection (3)(b)(ii), "financial instruments" include cash, accounts receivable and payable, loans and notes receivable and payable, debt securities, equity securities, as well as derivative contracts such as forward contracts, swap contracts, and options;
(iii) Dispensing cash or other physical items from a machine;
(iv) Payment processing services;
(v) Parimutuel wagering and handicapping contests as authorized by chapter
67.16
RCW;
(vi) Telecommunications services and ancillary services as those terms are defined in RCW 82.04.065
;
(vii) The internet and internet access as those terms are defined in RCW 82.04.297
;
(viii) The service described in RCW 82.04.050
(6)(c);
(ix) Online educational programs provided by a:
(A) Public or private elementary or secondary school; or
(B) An institution of higher education as defined in sections 1001 or 1002 of the federal higher education act of 1965 (Title 20 U.S.C. Secs. 1001 and 1002), as existing on July 1, 2009. For purposes of this subsection (3)(b)(ix)(B), an online educational program must be encompassed within the institution's accreditation;
(x) Live presentations, such as lectures, seminars, workshops, or courses, where participants are connected to other participants via the internet or telecommunications equipment, which allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time;
(xi) Travel agent services, including online travel services, and automated systems used by travel agents to book reservations;
(xii)(A) A service that allows the person receiving the service to make online sales of products or services, digital or otherwise, using either: (I) The service provider's website; or (II) the service recipient's website, but only when the service provider's technology is used in creating or hosting the service recipient's website or is used in processing orders from customers using the service recipient's website.
(B) The service described in this subsection (3)(b)(xii) does not include the underlying sale of the products or services, digital or otherwise, by the person receiving the service;
(xiii) Advertising services. For purposes of this subsection (3)(b)(xiii), "advertising services" means all services directly related to the creation, preparation, production, or the dissemination of advertisements. Advertising services include layout, art direction, graphic design, mechanical preparation, production supervision, placement, and rendering advice to a client concerning the best methods of advertising that client's products or services. Advertising services also include online referrals, search engine marketing and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign. Advertising services do not include web hosting services and domain name registration;
(xiv) The mere storage of digital products, digital codes, computer software, or master copies of software. This exclusion from the definition of digital automated services includes providing space on a server for web hosting or the backing up of data or other information;
(xv) Data processing services. For purposes of this subsection (3)(b)(xv), "data processing service" means a primarily automated service provided to a business or other organization where the primary object of the service is the systematic performance of operations by the service provider on data supplied in whole or in part by the customer to extract the required information in an appropriate form or to convert the data to usable information. Data processing services include check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. Data processing does not include the service described in RCW 82.04.050
(6)(c); and
(xvi) Digital goods.
(4) "Digital books" means works that are generally recognized in the ordinary and usual sense as books.
(5) "Digital code" means a code that provides a purchaser with the right to obtain one or more digital products, if all of the digital products to be obtained through the use of the code have the same sales and use tax treatment. "Digital code" does not include a code that represents a stored monetary value that is deducted from a total as it is used by the purchaser. "Digital code" also does not include a code that represents a redeemable card, gift card, or gift certificate that entitles the holder to select digital products of an indicated cash value. A digital code may be obtained by any means, including email or by tangible means regardless of its designation as song code, video code, book code, or some other term.
(6)(a) "Digital goods," except as provided in (b) of this subsection (6), means sounds, images, data, facts, or information, or any combination thereof, transferred electronically, including, but not limited to, specified digital products and other products transferred electronically not included within the definition of specified digital products.
(b) The term "digital goods" does not include:
(i) Telecommunications services and ancillary services as those terms are defined in RCW 82.04.065
;
(ii) Computer software as defined in RCW 82.04.215
;
(iii) The internet and internet access as those terms are defined in RCW 82.04.297
;
(iv)(A) Except as provided in (b)(iv)(B) of this subsection (6), the representation of a personal or professional service in electronic form, such as an electronic copy of an engineering report prepared by an engineer, where the service primarily involves the application of human effort by the service provider, and the human effort originated after the customer requested the service.
(B) The exclusion in (b)(iv)(A) of this subsection (6) does not apply to photographers in respect to amounts received for the taking of photographs that are transferred electronically to the customer, but only if the customer is an end user, as defined in RCW 82.04.190
(11), of the photographs. Such amounts are considered to be for the sale of digital goods; and
(v) Services and activities excluded from the definition of digital automated services in subsection (3)(b)(i) through (xv) of this section and not otherwise described in (b)(i) through (iv) of this subsection (6).
(7) "Digital products" means digital goods and digital automated services.
(8) "Electronically transferred" or "transferred electronically" means obtained by the purchaser by means other than tangible storage media. It is not necessary that a copy of the product be physically transferred to the purchaser. So long as the purchaser may access the product, it will be considered to have been electronically transferred to the purchaser.
(9) "Specified digital products" means electronically transferred digital audiovisual works, digital audio works, and digital books.
(10) "Subscription radio services" means the sale of audio programming by a radio broadcaster as defined in RCW 82.08.0208, except as otherwise provided in this subsection. "Subscription radio services" does not include audio programming that is sold on a pay-per-program basis or that allows the buyer to access a library of programs at any time for a specific charge for that service.
(11) "Subscription television services" means the sale of video programming by a television broadcaster as defined in RCW 82.08.0208, except as otherwise provided in this subsection. "Subscription television services" does not include video programming that is sold on a pay-per-program basis or that allows the buyer to access a library of programs at any time for a specific charge for that service, but only if the seller is not subject to a franchise fee in this state under the authority of Title 47 U.S.C. Sec. 542(a) on the gross revenue derived from the sale.
[
2020 c 139 s 4
;
2017 c 323 s 514
;
2010 c 111 s 203
;
2009 c 535 s 201
.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Intent
—
2009 c 535:
"(1) In 2007, the legislature directed the department of revenue (department) to conduct a study of the taxation of electronically delivered products (digital products). In conducting the study, the department was assisted by a committee comprised of legislators, academics, and individuals representing different segments of government and industry (the "study committee").
(2) At the conclusion of the study, the department issued its final report December 5, 2008. The final report noted that any recommendations to the legislature should promote the following goals: (a) Simplicity and fairness; (b) conformity with the streamlined sales and use tax agreement; (c) neutrality regardless of industry, content, and delivery method while taking the purchaser's underlying property rights into account; (d) consideration given to the revenue impact of potential changes to the tax base; (e) consideration given to the impact caused by the pyramiding of business inputs; (f) maintaining or enhancing the competitiveness of businesses located in Washington; and (g) maintaining certainty, consistency, durability, and equity despite changes in technology and business models.
(3) While the department's final report did not contain recommendations for the legislature, the report's conclusion notes that the study committee found that legislation implementing digital products tax policy is necessary in 2009 to: (a) Protect the sales and use tax base; (b) establish certainty in our tax code; (c) maintain conformity with the streamlined sales and use tax agreement; and (d) encourage economic development.
(4) This act is the outgrowth of the work of the department and the study committee. The purpose of this act is to implement those findings of the study committee noted in subsection (3) of this section. This act also takes into account the goals noted in subsection (2) of this section. Moreover, this act contains specific provisions to: (a) Provide protections for taxpayers who failed to pay or collect tax on digital products for periods before July 26, 2009; and (b) promote the location of server farms and data centers in this state by preventing the department from considering a person's ownership of, or rights in, digital goods or digital codes residing on servers located in this state in determining whether the person has nexus with this state for purposes of the taxes imposed in Title
82
RCW." [
2009 c 535 s 101
.]
Construction
—
2009 c 535:
"This act does not have any impact whatsoever on the characterization of digital goods and digital codes as tangible or intangible personal property for purposes of property taxation and may not be used in any way in construing any provision of Title
84
RCW." [
2009 c 535 s 1201
.]
Construction
—
2009 c 535:
"The repeals in sections 515 and 623 of this act do not affect any existing right acquired or liability or obligation incurred under the statutes repealed or under any rule or order adopted under those statutes nor do they affect any proceedings instituted under them." [
2009 c 535 s 1203
.]
PDF
RCW 82.04.192
Digital products definitions.
(Effective October 1, 2025.)
(1) "Digital audio works" means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones.
(2) "Digital audiovisual works" means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.
(3)(a) "Digital automated service," except as provided in (b) of this subsection (3), means any service transferred electronically that uses one or more software applications.
(b) "Digital automated service" does not include:
(i) The loaning or transferring of money or the purchase, sale, or transfer of financial instruments. For purposes of this subsection (3)(b)(i), "financial instruments" include cash, accounts receivable and payable, loans and notes receivable and payable, debt securities, equity securities, as well as derivative contracts such as forward contracts, swap contracts, and options;
(ii) Dispensing cash or other physical items from a machine;
(iii) Payment processing services;
(iv) Parimutuel wagering and handicapping contests as authorized by chapter
67.16
RCW;
(v) Telecommunications services and ancillary services as those terms are defined in RCW 82.04.065
;
(vi) The internet and internet access as those terms are defined in RCW 82.04.297
;
(vii) The service described in RCW 82.04.050
(6)(b);
(viii) Online educational programs provided by a:
(A) Public or private elementary or secondary school; or
(B) An institution of higher education as defined in sections 1001 or 1002 of the federal higher education act of 1965 (Title 20 U.S.C. Secs. 1001 and 1002), as existing on July 1, 2009. For purposes of this subsection (3)(b)(viii)(B), an online educational program must be encompassed within the institution's accreditation;
(ix) Travel agent services, including online travel services, and automated systems used by travel agents to book reservations;
(x)(A) A service that allows the person receiving the service to make online sales of products or services, digital or otherwise, using either: (I) The service provider's website; or (II) the service recipient's website, but only when the service provider's technology is used in creating or hosting the service recipient's website or is used in processing orders from customers using the service recipient's website.
(B) The service described in this subsection (3)(b)(x) does not include the underlying sale of the products or services, digital or otherwise, by the person receiving the service;
(xi) Telehealth as defined in RCW 18.134.010
or telemedicine as defined in RCW 48.43.735
;
(xii) The mere storage of digital products, digital codes, computer software, or master copies of software. This exclusion from the definition of digital automated services includes providing space on a server for web hosting or the backing up of data or other information; and
(xiii) Digital goods.
(4) "Digital books" means works that are generally recognized in the ordinary and usual sense as books.
(5) "Digital code" means a code that provides a purchaser with the right to obtain one or more digital products, if all of the digital products to be obtained through the use of the code have the same sales and use tax treatment. "Digital code" does not include a code that represents a stored monetary value that is deducted from a total as it is used by the purchaser. "Digital code" also does not include a code that represents a redeemable card, gift card, or gift certificate that entitles the holder to select digital products of an indicated cash value. A digital code may be obtained by any means, including email or by tangible means regardless of its designation as song code, video code, book code, or some other term.
(6)(a) "Digital goods," except as provided in (b) of this subsection (6), means sounds, images, data, facts, or information, or any combination thereof, transferred electronically, including, but not limited to, specified digital products and other products transferred electronically not included within the definition of specified digital products.
(b) The term "digital goods" does not include:
(i) Telecommunications services and ancillary services as those terms are defined in RCW 82.04.065
;
(ii) Computer software as defined in RCW 82.04.215
;
(iii) The internet and internet access as those terms are defined in RCW 82.04.297
;
(iv)(A) Except as provided in (b)(iv)(B) of this subsection (6), the representation of a personal or professional service in electronic form, such as an electronic copy of an engineering report prepared by an engineer, where the service primarily involves the application of human effort by the service provider, and the human effort originated after the customer requested the service.
(B) The exclusion in (b)(iv)(A) of this subsection (6) does not apply to photographers in respect to amounts received for the taking of photographs that are transferred electronically to the customer, but only if the customer is an end user, as defined in RCW 82.04.190
(11), of the photographs. Such amounts are considered to be for the sale of digital goods; and
(v) Services and activities excluded from the definition of digital automated services in subsection (3)(b)(i) through (xii) of this section and not otherwise described in (b)(i) through (iv) of this subsection (6).
(7) "Digital products" means digital goods and digital automated services.
(8) "Electronically transferred" or "transferred electronically" means obtained by the purchaser by means other than tangible storage media. It is not necessary that a copy of the product be physically transferred to the purchaser. So long as the purchaser may access the product, it will be considered to have been electronically transferred to the purchaser.
(9) "Specified digital products" means electronically transferred digital audiovisual works, digital audio works, and digital books.
(10) "Subscription radio services" means the sale of audio programming by a radio broadcaster as defined in RCW 82.08.0208, except as otherwise provided in this subsection. "Subscription radio services" does not include audio programming that is sold on a pay-per-program basis or that allows the buyer to access a library of programs at any time for a specific charge for that service.
(11) "Subscription television services" means the sale of video programming by a television broadcaster as defined in RCW 82.08.0208, except as otherwise provided in this subsection. "Subscription television services" does not include video programming that is sold on a pay-per-program basis or that allows the buyer to access a library of programs at any time for a specific charge for that service, but only if the seller is not subject to a franchise fee in this state under the authority of Title 47 U.S.C. Sec. 542(a) on the gross revenue derived from the sale.
[
2025 c 422 s 201
;
2020 c 139 s 4
;
2017 c 323 s 514
;
2010 c 111 s 203
;
2009 c 535 s 201
.]
NOTES:
Effective date
—
2025 c 422 ss 101 and 201:
See note following RCW 82.04.050
.
Findings
—
Intent
—
Necessity of act
—
2025 c 422:
See notes following RCW 82.04.050
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Intent
—
2009 c 535:
"(1) In 2007, the legislature directed the department of revenue (department) to conduct a study of the taxation of electronically delivered products (digital products). In conducting the study, the department was assisted by a committee comprised of legislators, academics, and individuals representing different segments of government and industry (the "study committee").
(2) At the conclusion of the study, the department issued its final report December 5, 2008. The final report noted that any recommendations to the legislature should promote the following goals: (a) Simplicity and fairness; (b) conformity with the streamlined sales and use tax agreement; (c) neutrality regardless of industry, content, and delivery method while taking the purchaser's underlying property rights into account; (d) consideration given to the revenue impact of potential changes to the tax base; (e) consideration given to the impact caused by the pyramiding of business inputs; (f) maintaining or enhancing the competitiveness of businesses located in Washington; and (g) maintaining certainty, consistency, durability, and equity despite changes in technology and business models.
(3) While the department's final report did not contain recommendations for the legislature, the report's conclusion notes that the study committee found that legislation implementing digital products tax policy is necessary in 2009 to: (a) Protect the sales and use tax base; (b) establish certainty in our tax code; (c) maintain conformity with the streamlined sales and use tax agreement; and (d) encourage economic development.
(4) This act is the outgrowth of the work of the department and the study committee. The purpose of this act is to implement those findings of the study committee noted in subsection (3) of this section. This act also takes into account the goals noted in subsection (2) of this section. Moreover, this act contains specific provisions to: (a) Provide protections for taxpayers who failed to pay or collect tax on digital products for periods before July 26, 2009; and (b) promote the location of server farms and data centers in this state by preventing the department from considering a person's ownership of, or rights in, digital goods or digital codes residing on servers located in this state in determining whether the person has nexus with this state for purposes of the taxes imposed in Title
82
RCW." [
2009 c 535 s 101
.]
Construction
—
2009 c 535:
"This act does not have any impact whatsoever on the characterization of digital goods and digital codes as tangible or intangible personal property for purposes of property taxation and may not be used in any way in construing any provision of Title
84
RCW." [
2009 c 535 s 1201
.]
Construction
—
2009 c 535:
"The repeals in sections 515 and 623 of this act do not affect any existing right acquired or liability or obligation incurred under the statutes repealed or under any rule or order adopted under those statutes nor do they affect any proceedings instituted under them." [
2009 c 535 s 1203
.]
RCW 82.04.200
"In this state," "within this state."
"In this state" or "within this state" includes all federal areas lying within the exterior boundaries of the state.
[
1961 c 15 s 82.04.200
. Prior:
1955 c 389 s 21
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.210
"By-product."
"By-product" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities.
[
1961 c 15 s 82.04.210
. Prior:
1955 c 389 s 22
; prior: 1949 c 228 s 2, part; 1945 c 249 s 1, part; 1943 c 156 s 2, part; 1941 c 178 s 2, part; 1939 c 225 s 2, part; 1937 c 227 s 2, part; 1935 c 180 s 5, part; Rem. Supp. 1949 s 8370-5, part.]
RCW 82.04.212
"Retail store or outlet."
"Retail store or outlet" does not mean a device or apparatus through which sales are activated by coin deposits but the phrase shall include automats or business establishments retailing diversified goods primarily through the use of such devices or apparatus.
[
1961 c 15 s 82.04.212
. Prior:
1959 c 232 s 1
.]