Retail Sales Tax

• As of April 2011, the state of Washington levies a 6.5 percent sales and use tax on taxable items or services. Many jurisdictions within the state, including cities and counties, charge an additional tax. Certain items may also be taxed at higher rates. Those doing business in the state must be aware of the sales tax in their jurisdiction and keep abreast of any changes in the sales tax rate or tax on different categories of items or services.
  
  

Taxable Items

• Retail sales tax is required on all sales of tangible personal property. It is also levied on the sale of various services. These include repairs, installing, improving, cleaning, decorating or constructing. Other services that must charge tax include recreational, physical fitness and sporting activities, lawn care and maintenance, work on real estate or personal property, amusement and entertainment. The Washington Department of Revenue states that "some areas levy an additional tax for transient rentals (less than 30 consecutive days) of hotel/motels, RV parks, or any other type of lodging."
  
  

Tax-Exempt Items

• Tax-exempt items in Washington state include prescription medications and food purchased in grocery stores. Newspapers are also exempt. Sales to the federal government, Indian tribes, foreign and interstate sales do not require sales tax collection. Machinery and equipment purchased for manufacturing purposes are exempt. Sales to nonresidents of Washington are exempt, but the Washington Department of Revenue has strict standards as to residency status.
  
  

Washington Residents

• For exemption purposes, people may be considered residents if "they take actions which indicate that they intend to live in this state on more than a temporary or transient basis," according to the Washington Department of Revenue. By department standards, anyone who has a Washington driver's license, is registered to vote in the state, holds a state hunting or fishing license, holds a state business or professional license, uses a state address for federal tax purposes, receives public assistance in Washington, or maintains a residence is considered a resident and must pay retail sales taxes. Anyone living in a motor home or houseboat, which is not a permanent address, is considered a Washington resident if they previously lived in the state and have no other permanent address.