AP Badge #11 - Sales & Tax Use-AP Badge #11 Recording

Video Transcription

Video Summary

This training explains Washington sales tax and use tax rules for school district accounts payable, including taxable/non-taxable purchases, digital products, and ASB fundraising exemptions. In Washington, school districts are not generally exempt from sales tax; vendors must separately state sales tax on invoices and charge the correct combined rate based on point-of-sale location or delivery destination. Local rates vary and rely on Department of Revenue (DOR) location codes. If a vendor charges the wrong rate, districts should request a corrected invoice rather than adjusting payment.<br /><br />Use tax applies when items are acquired for use in Washington without Washington sales tax (often from out-of-state vendors, reimbursements, purchasing cards, or petty cash). The district flags the transaction, charges use tax at the same rate as sales tax (based on first use), accrues it in a liability account, and remits it on the combined excise tax return.<br /><br />The module reviews common taxable items (equipment, supplies, construction, rentals, many services) and common exemptions (food ingredients, many professional services, newspapers, testing, internet access, janitorial, royalties). Digital goods/services are generally taxable, but some educational digital services/subscriptions may be exempt.<br /><br />Finally, it covers student stores and ASB fundraising: student stores pay tax when buying merchandise but do not charge students sales tax. ASB fundraisers may use reseller permits to buy items tax-exempt and avoid collecting sales tax, including yearbooks when run through ASB (not general fund). DOR resources and rulings are recommended for complex scenarios.

Keywords

Washington sales tax

Washington use tax

school district accounts payable

DOR location codes

combined sales tax rate

use tax accrual and remittance

digital goods and services taxation

ASB fundraising exemptions