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The Law Offices of Ralph W. Flick, P.S.
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Overview of Washington Taxes

 

The State of Washington levies more than one hundred different types of taxes, such as the cigarette tax, litter tax, hazardous substance tax, leasehold excise tax, natural gas tax, oil spill tax, and many more. In addition to state taxes, counties and cities regularly impose taxes on property, certain business activities, and gambling. Whichever tax may concern you, Attorney Fabio Ambrosio can represent his clients through tax audits and assessments, as well as in administrative or judicial appeals.

 

 

 

Washington State Income Tax
 

The State of Washington does not levy an income tax on individuals. This is why most of the State’s revenue comes from taxing businesses (through B&O taxes) and consumers (through sales and use taxes). The State of Washington levies more than one hundred different taxes. Some of these taxes are called excise taxes, which means that they are imposed on "transactions," rather than property or income. 

 
Washington Taxes on Businesses

 

Sales & Use Tax 

   

While Oregon, Montana, and Alaska generally do not levy sales or use taxes, the State of Washington has one of the highest sales and use tax rates in the nation. This has made the State of Washington a beehive of sales and use tax controversies, many of which are difficult to understand and analyze.  In addition to the sales tax imposed by the state, counties and cities may also impose another layer of sales tax.

 

 

Business and Occupation (B&O) Tax

 

Washington is one of few states that impose a Business and Occupation (B&O) tax on gross revenue (rather than net income). Strictly speaking, this is not an income tax, but rather a tax imposed on all Washington businesses for the privilege of doing business in Washington. In practical terms, this means that no deduction may be used to reduce the tax base (your gross revenue) on which a B&O tax is assessed. 

 

 

 
City Taxes

 

In addition to all applicable state and county taxes, cities may also impose an additional layer of tax on activities that fall within the purview of the city's regulatory powers. The City of Seattle, for example, imposes an admission tax (for admissions to entertainment or recreation events), a business license tax (for businesses with an annual taxable gross revenue greater than $80,000), a gambling tax (on the gross revenue generated by gambling activities), and an occupation utility tax (for utility companies).

 

 

County Taxes

 

Depending in which county you live or work, you may be subject to several additional taxes. Generally, your county will impose a tax on appreciation of property. King County, for example, levies two types of property taxes, one on real property and one on personal property used in the operation of business activities.

 

The Bottom Line: Generally, a state and local tax problem starts with an audit and with an assessment of tax liability. At this point, you are left with the option to pay the tax or appeal the assessment. Attorney Ralph Flick can advise his clients with regard to state and local tax planning, compliance, and litigation. Attorney Ralph Flick can also represent his clients through tax audits and assessments, as well as in administrative and judicial appeals.