Sales & Use Tax Updates (08.05.26)-WASBO-DOR Sales & Use Tax Q&A

WASBO-DOR Sales & Use Tax Q&A

Pdf Summary

This WASBO/DOR webinar follow-up summarizes Washington sales and use tax rules for K–12 schools, districts, ESDs, and ASBs. Key points include:

- <strong>Live trainings/presentations:</strong> Usually treated the same for tax purposes. Author talks are taxable entertainment unless the author is teaching on the book’s topic.
- <strong>Digital products/SaaS:</strong> Schools may use the Digital Products & Remote Access Software Exemption for SaaS and online curriculum made available free to students. It generally does not apply to software used only by staff. Online newspaper subscriptions are exempt.
- <strong>Retail services:</strong> Fingerprinting is now a taxable investigative/security service, but K–12 schools, districts, and ESDs can use an exemption certificate starting July 1, 2026. Job postings are generally not advertising services unless bundled into a broader digital automated service.
- <strong>Staffing through ESDs:</strong> Shared staff under interlocal agreements are excluded from retail sale rules, so no exemption certificate is needed.

For <strong>student stores and ASBs</strong>:
- ASB stores must collect sales tax on prepared food and other taxable sales.
- ASBs may use reseller permits for items they resell and can claim deductions for tax paid at source.
- The fundraising exemption does not apply to stores operated regularly.
- Yearbook tax treatment depends on who buys and resells them.
- District-operated student stores are treated differently because schools are considered the consumer.

For <strong>district sales</strong>:
- Parking permits/fees and parking fines are taxable.
- School meals sold to students, faculty, or staff are generally not taxed.
- Surplus sales are taxable, but not subject to B&O tax as casual sales.
- Facility rentals are generally subject to Service & Other Activities B&O tax.
- Childcare with meals is not taxable.

<strong>Exemptions/forms</strong>: Certificates are transaction-specific; some may remain valid indefinitely under blanket use rules. Buyers must provide exemption documentation.

<strong>Other notes</strong>: Refunds may be available for tax paid in error, and the law changed on October 1, 2025, July 1, 2026, and January 1, 2029.

Keywords

Washington sales tax

K-12 schools

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ASB student stores

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facility rentals B&O

exemption certificates