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Form Rev 41 0056 - Small Business B&o Tax Credit Worksheet - Washington Department Of Revenue Page 10

Washington State Department of Revenue

Instructions for Completing the Combined Excise Tax Return

Section II State Sales and Use Tax

What is the State Sales and Use Tax?

Sales tax is collected for the benefit of multiple taxing authorities. Each taxing authority such as the state of Washington, cities, and regional

authorities such as the Regional Transit Authority can add to the sales tax charged. The total tax is collected and then distributed to each of

the taxing authorities. Section II and III help the state get the tax dollars to the proper authority.

Use Tax applies to the value of all articles used by taxpayer in his business (as opposed to being sold to a customer) on which no Washington

sales tax has been paid.

Here is an example to show how the taxes collected in Seattle are distributed:

The

Local Sales & Use Tax Rates & Changes flyer

lists all the rates within the state of Washington. It is arranged by county, so for the Seattle

example, go to King County, and then find Seattle. Seattle is location code 1726. The 8.8% sales tax rate in Seattle is collected and then

distributed as follows: 6.5% goes to the state of Washington, 1.9% will go to the City of Seattle, and .4% will go to the Regional Transit

Authority. These 3 rates add up to the 8.8% total rate.

Line 17

State Retail Sales Tax

Write the gross amount of income in column 1. This amount must be the same as the gross amount on Line 16. (If you are a

printer and

publisher, or a

processor for

hire, special instructions apply. Please call for help if necessary.)

You may qualify for deductions. Write the total deductions in column 2. If you have no deductions, write 0 in column 2. Deductions must

be itemized on the

deduction detail

sheet, pages 3 & 4.

Subtract column 2 from column 1. Write this amount in column 3. This is your taxable amount.

Multiply the taxable amount in column 3 by the tax rate shown in column 4 (.065) and write this amount in column 5.

Line 18

State Use Tax/Deferred Sales Tax

Write the value of articles used on line 18, column 1.

Multiply the value of articles by the rate shown in column 4 (.065). Write the total in column 5.

Total the tax due amounts in column 5, lines 17 and 18, and write this amount in the Total State Sales & Use Tax box.

Table of Contents

Form Rev 41 0056 - Small Business B&o Tax Credit Worksheet - Washington Department Of Revenue Page 10