Dear Clients of SKJ & Company, P.S.:
Please be advised that Washington State Retail Sales Tax (RST) and Lodging Tax rates are increasing as of January 1, 2020. We advise our clients to update their point-of-sale systems to reflect the new tax rate to collect the right amount of taxes from customers.
Tax rate increase applies to Retail Sales Tax and Lodging Tax. Please check your Location Code (as instructed in #3) and refer to the new tax rate schedule provided below.
RETAIL SALES TAX (RST)
Below link refers to new RST rates for each Location Code:
New tax rates below apply to lodging businesses such as hotels and motels. (Note: Lodging Tax and Convention Center Tax do not apply to sales where RST does not apply, such as over-30-day stays).
Below link refers to new Lodging Tax rates for each Location Code:
If your business is located in Skagit County Tourism Promotion Area (TPA), $2.00 tax applies per-room, per-night of stay. Below are the location codes within Skagit County TPA.
HOW TO FIND YOUR LOCATION CODE
Location Code can be found on your most recent Combined Excise Tax Return.
If your business provides lodging, the business may have separate Location Code for RST and Convention Tax. RST Location code can be found under Local City and/or County Sales Tax section of Combined Excise Tax Return, whereas Convention Tax Location Code is under Convention and Trade Center section of the same return.
All other businesses, please refer to Local City and/or County Sales Tax section of the Combined Excise Tax Return.
For more information, please refer to Washington State Department of Revenue’s Website (Link: https://dor.wa.gov/taxes-rates/sales-and-use-tax-rates/local-sales-tax-change-notices#Effective%202021), and if you have any questions or concerns, please contact our office.
SKJ & Company, P.S.