Page 200 - Washington Nonprofit Handbook 2018 Edition

Department of Revenue quarterly publishes the Local Sales and Use Tax Flyer that
contains the codes, rates, and reports of recent changes. The flyer appears online
at https://dor.wa.gov/get-form-or-publication/forms-subject/local-sales-and-use-tax
-rates-and-changes-flyer.

CHAPTER 55. Use Tax Issues for Nonprofit Organizations

Washington imposes a tax on the user of any article of tangible personal
property or certain services acquired by purchase or gift where the user or donor
has not paid the retail sales tax.

a. Rates and Reporting

The use tax rates are the same as the combined state and local portions of
the retail sales tax.

Nonprofits are required to accrue and remit their use tax obligations on the
Combined Excise Tax Return, the same form used to pay the B&O tax and remit
collected sales tax. Smaller organizations that are not required to be registered
with the Department of Revenue can remit their use tax obligations on the
Consumer Use Tax Return, which is available from the Department of Revenue.

b. Liability When No Sales Tax Is Collected

Most nonprofit organizations, like most other consumers and businesses,
have contingent use tax liabilities for small items purchased such as:

• Computer equipment, computer parts, software licenses, and software
purchased from out-of-state sources;

• Purchases from small in-state unregistered service providers such as
contractors, landscapers, and information technology service
providers;

• Any mail order catalog items;

• Items purchased over the Internet;

• Fixed assets shipped into Washington from a seller outside of
Washington who does not collect the retail sales tax;

• Magazine and periodical subscriptions; and

WASHINGTON NONPROFIT HANDBOOK -189- 2018