Tuesday, January 11, 2011

Seattle has multiple sales tax rates?

YES Seattle and King County has two sales tax rates depending on what you are selling! And yes the two sales tax rates can apply to the same business depending on how it is selling the items. I'm not going to quote rates or try to replace the experts at the Department of Revenue but please reserach this out to make sure you are charging the correct Sales Tax rates on your products.

Here it is in a nutshell Retail Goods are at one rate. Retail goods in this case mean non restaurant food or beverage. Prepared food and berverages served ready to consume at an eating establishment is a different sales tax rate. Here is the KICKER if you sell both you must collect the proper tax rate by item. Lets say you sell hot dags and soda but also sell t-shirts and hats. The food is one sales tax rate the T-Shirts and Hats are another even in the same transaction!

Click here For a good Cash Register in the Seattle Area that can do this. Lets hope it does not get any worse and we end up with three rates! Don't even get me started on desination tax Washington also employs!

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