Articles

If a business earns income in an "apportionable" B&O classification (Service and Other Activities, royalties, and a short list of others) and is also taxable in another state or country, Washington law requires it to pay B&O tax on only the Washington share of that income.

Washington monthly excise returns are due the 25th of the following month, quarterly returns at the end of the month after the quarter, and annual returns on April 15 of the next year.

Starting Oct. 1, 2025, ESSB 5814 (ch. 422, Laws of 2025) made several services retail sales in Washington: advertising services, information technology services, custom website development, live presentations, investigation and security services (including armored car), temporary staffing, and custom software and customization of prewritten software.

Since Oct. 1, 2025, ESSB 5814 (ch. 422, Laws of 2025) has generally made temporary staffing services a retail sale in Washington, with some exceptions.

Since Oct. 1, 2025, Washington's Service and Other Activities B&O classification has three rates: 1.5%, 1.75% and 2.1%.

Quarterly filers' Q3 2026 Combined Excise Tax Return (July, August and September) is due Monday, Nov. 2, 2026, because Oct. 31 falls on a Saturday. DOR's 9% late penalty begins Nov. 3.

EHB 2487 rewrote the B&O exemption in RCW 82.04.320, retroactive to October 2, 2019, and repealed RCW 82.04.322. DOR's penalty and interest relief program requires an application on or before December 31, 2026.

The Washington Department of Revenue has issued interim guidance on how third-party developers report charges for work on master copies of software. DOR says these charges are generally taxed under the Service & Other Activities B&O classification, unless the charge is a royalty.

A DOR tax topic says income from DJ services falls under the Service & Other Activities B&O classification and that DJs don't collect retail sales tax. DJs do owe sales or use tax on the equipment they buy or rent.

Beginning January 1, 2027, a 9.9% (.099) tax applies to peer-to-peer car-sharing transactions in Washington when the vehicle was purchased using a reseller permit or other approved exemption certificate. The tax is in addition to retail sales tax.

Three practical questions about older contracts, the multiple points of use exemption for advertising, and ESSB 5814 penalty relief.

The Washington Department of Revenue has published a new special notice addressing prepayment of the capital gains tax. Here's what taxpayers and advisors should know before relying on it.

DOR's Update My Business Information page now lists a new phone number (360-705-6705) for Business Licensing Service inquiries, replacing the previously listed 360-705-6741. Verify the number before relying on any saved reference materials.

Washington DOR says administering the income tax created by SB 6346 will cost about $30 million a year and require roughly 130 employees. Larger $275 million and 300-employee figures include the bill’s Working Families Tax Credit expansion and refunds.

Washington DOR added a new tax topic page clarifying when casual or isolated sales are exempt from B&O tax—and when sales tax and reporting obligations still apply. Registered businesses that occasionally sell assets outside their normal course of business should review the guidance.

Analysis of Washington DOR guidance on attributing investment income under the apportionment cascade.

A proposal summary for replacing Washington's B&O tax with a Texas-style margins tax over a five-year transition period.