Current through Register Vol. 24-06, March 15, 2024
(2)
Other rules that may apply.
Readers may want to refer to other rules for additional information, including:
(a) WAC
458-20-118
Sale or rental of real estate, license to use real estate.
(b) WAC
458-20-166
Hotels, motels, boarding houses, rooming houses, resorts, hostels, trailer
camps, and similar lodging businesses.
(c) WAC
458-20-167
Educational institutions, school districts, student organizations, and private
schools.
(d) WAC
458-20-187
Tax responsibility of vending machine owners and operators.
(e) WAC
458-20-189
Sales to and by the state of Washington and municipal corporations including,
counties, cities, towns, school districts, and fire districts.
(f) WAC
458-20-211
Leases or rentals of tangible personal property, bailments.
(g) WAC
458-20-244
Food and food ingredients.
(4)
Taxability
of recreational services and activities.
(a) Charges, however labeled, to consumers
for engaging or participating in the recreational services and activities
listed in subsection (6) of this rule are retail sales subject to retailing
business and occupation (B&O) tax and retail sales tax. Unless otherwise
specified in this rule or in RCW 82.04.-050, charges to engage or participate
in a recreational service or activity include the furnishing of any related
equipment and charges for instructional lessons in the service or
activity.
(b) When there is a sale
of two or more distinct and identifiable products that includes a charge for a
product subject to retail sales tax and a charge for a product not subject to
retail sales tax, then retail sales tax applies to the entire selling price,
unless prices are separately identified by product on binding sales or other
supporting sale-related documentation made available to the customer. For
additional information about bundled transactions, see
RCW
82.08.190 and
82.08.195.
(c) Separate charges for the sale or rental
of tangible personal property, including equipment, gear, and supplies used to
engage or participate in recreational services and activities are subject to
retailing B&O and retail sales tax. Refer to WAC
458-20-211
for more information about these charges.
(d) A person who provides recreational
services and activities must pay retail sales or use tax on the purchase or
rental of tangible personal property the person uses as a consumer to provide
such services and activities, including equipment and supplies. Retail sales or
use tax need not be paid if a person purchases tangible personal property for
resale without intervening use. For additional information on sales for resale,
refer to WAC
458-20-102
Reseller permits.
(5)
Exclusions and exemptions.
(a)
Educational institutions. Charges made by an educational institution, as
defined in
RCW
82.04.170, to its students and staff for
recreational services and activities listed in subsection (6) of this rule, are
not retail sales and therefore are not subject to retailing B&O and retail
sales tax. However, charges made by an educational institution to its alumni or
to other members of the public for these same services and activities are
retail sales subject to retailing B&O and retail sales tax.
(b) Nonprofit youth organizations.
RCW
82.08.0291 exempts the sale of recreational
services and activities by a nonprofit youth organization to its members from
retail sales tax, but does not exempt the sale of these services and activities
from retailing B&O tax. For purposes of this rule, a nonprofit youth
organization is a nonprofit organization engaged in character building of youth
that qualifies for an exemption from property tax under
RCW
84.36.030(3).
(c) Fairs, carnivals, and festivals. Charges
for admission to, and rides or attractions at, fairs, carnivals, and festivals
are not retail sales and therefore not subject to retailing B&O and retail
sales tax. For purposes of this rule, fairs, carnivals, and festivals are
events that do not exceed twenty-one consecutive days and a majority of the
amusement rides, if any, are not affixed to real property.
(d) Diver training. Charges made by a
vocational school for commercial diver training that is licensed by the
workforce training and education coordinating board under chapter 28C.10 RCW,
are not retail sales and therefore not subject to retailing B&O and retail
sales tax.
(6)
Retail recreational services and activities. Gross income received
from providing the following exclusive list of recreational services and
activities is subject to retailing B&O tax and retail sales tax:
(a)
Air sports. Charges for
ballooning, hang gliding, indoor or outdoor sky diving, paragliding,
parasailing, and similar activities.
(b)
Amusement park, theme park, and
water park facilities. Charges for admission to an amusement park, theme
park, or water park, and locker or cabana rentals at such facilities. For
purposes of this rule, an amusement park or theme park is a location that
provides permanently affixed amusement rides, games, and other entertainment,
but does not include parks or zoos where the primary purpose is the exhibition
of wildlife, or fairs, carnivals, and festivals as described in subsection
(5)(c) of this rule. Separate charges for rides, attractions, or other
entertainment that are in addition to the admission charge are not retail sales
under this subsection.
Example 1. Adventure Land is an amusement park
that has an admission charge of ten dollars per person per day. The admission
charge grants guest access to most of the park's rides and attractions. In
addition, Adventure Land has a wooden roller coaster that guests must pay a
separate charge of two dollars per person to ride. The charge for admission is
subject to retailing B&O tax and retail sales tax. The charge for the
wooden roller coaster is subject to service and other activities B&O
tax.
(c)
Bowling. Charges for:
(i)
Bowling;
(ii) Rental of bowling
shoes;
(iii) Bowling lessons;
and
(iv) The opportunity to
participate in competitive bowling events or tournaments when a participant
pays a fee to the bowling facility operator. This includes amounts paid by
event organizers to the bowling facility operator if the amounts vary based on
the number of participants.
Example 2. A high school is sponsoring and
organizing a bowling tournament that will be held at Bowling Alley Z to raise
money for new band uniforms. To enter the tournament, participants pay a fee of
twenty dollars per person to the local high school. The local high school
contracts with Bowling Alley Z to use its facilities for five hundred dollars
regardless of the number of participants. The fee does not vary based on the
number of participants. On the day of the tournament, the high school submits
full payment to Bowling Alley Z. If participants need to rent bowling shoes,
they pay Bowling Alley Z directly on the day of the tournament. The amount the
high school pays to Bowling Alley Z is subject to service and other activities
B&O tax because the high school is paying Bowling Alley Z on behalf of the
participants and the fee is not based on the number of participants. Any fee to
rent bowling shoes is subject to retailing B&O tax and retail sales
tax.
(d)
Climbing activities. Charges for climbing on artificial climbing
structures, whether indoors or outdoors.
(e)
Day trips for sightseeing
purposes. Charges for sightseeing trips, whether for educational,
instructional, or recreational purposes, that last less than twenty-four hours.
Examples of day trips for sightseeing purposes include wine tours, scenic
tours, culinary tours, educational or nature-related tours, or cultural tours.
For information on multiday sightseeing tours, refer to WAC
458-20-258
Travel agents and tour operators.
(f)
Fishing. Charges to fish,
access to private fishing areas, and charges for chartered or guided fishing
tours.
(g)
Golf.
Charges for golfing activities where golf balls or golf clubs are used
including charges for:
(i) Playing golf or
miniature golf;
(ii) Golfing
lessons, if the charge for the lesson is not stated separately from other golf
facility charges;
(iii) Hitting
golf balls at a driving range;
(iv)
Using a golf simulator;
(v) Renting
a golf cart;
(vi) Players to use
their own golf cart; and
(vii)
Players to participate in competitive golf events or tournaments where the
participant pays a fee to the golf facility operator. This includes amounts
paid by event organizers to the golf facility operator if the amounts vary
based on the number of participants.
Example 3. A charity is sponsoring and organizing
a golf tournament to raise funds to renovate a neighborhood playground. To
participate, players must pay fifty dollars per person to the golf course
facility on the day of the tournament. This charge does not include the rental
of a golf cart, which some participants elect to rent for twenty dollars per
golf cart. The amounts paid to the golf course facility by the participants are
subject to retailing B&O tax and retail sales tax. Amounts paid to rent a
golf cart are also subject to retailing B&O and retail sales tax.
Example 4. A local golf course offers footgolf, a
sport that combines components of soccer and golf using a soccer ball, every
Tuesday and charges ten dollars per person to play one round. Amounts paid by
participants to play footgolf are subject to the service and other activities
B&O tax because footgolf is not considered a golfing activity, as described
in (g) of this subsection, in which golf balls or golf clubs are
used.
(h)
Horseback riding. Charges for individual or group rides, guided or
unguided, offered to the public if the seller furnishes the horse to the rider
and the primary focus of the ride is not instructional.
(i)
Hunting. Charges for guided
hunting and hunting at game farms and shooting preserves.
(j)
Motorized activities.
Charges for go-karting, bumper cars, snowmobiles, all-terrain vehicles, and
other motorized activities where the seller provides both the vehicle and the
premises where the buyer will operate the vehicle. If the seller provides the
vehicle, but not the premises to operate the vehicle, then the charge is
considered a rental of tangible personal property and is subject to retailing
B&O and retail sales tax.
Example 5. For an hourly fee, City D racetrack
provides customers the opportunity to use its racetrack to ride all-terrain
vehicles and dirt bikes. Customers are required to provide their own
all-terrain vehicles and dirt bikes to ride on the racetrack. Because City D
only provides the premises on which customers ride their vehicles and bikes,
the hourly fee to use the racetrack is subject to service and other activities
B&O tax.
(k)
Playground activities. Charges for indoor or outdoor playground
activities such as: Inflatable bounce structures and other inflatables, mazes,
trampolines, slides, ball pits, games of tag, including laser tag and soft-dart
tag, and human gyroscope rides, regardless of whether the activities occur at
the seller's place of business.
Example 6. Kidz Learning for Life is an enrichment
and physical development center for children under eight years old. The center
offers physical coordination classes for infants and toddlers, and dance,
music, and art classes for older children. The center also provides an outdoor
trampoline for children ages four to eight years old. Parents are required to
stay at the center during classes, and depending on the class, may be required
to participate with their child. Parents can either pay a monthly membership
charge that allows for unlimited classes or may pay on a per class basis. Both
charges are subject to the service and other activities B&O tax because the
types of classes offered by Kidz Learning for Life are not considered
playground activities for the purposes of (k) of this subsection.
Example 7. Fun Zone Extreme is an indoor
playground facility that offers multiple unstructured play activities for
children seventeen and under. Some of the activities include laser tag,
inflatable bounce structures, ball pits, and climbing structures, such as a
rock wall. To participate in all of the activities Fun Zone Extreme offers,
customers pay an admission fee based on their age and the fee allows the
participant unlimited use of the facility for the entire day. The admission fee
charged to customers is subject to retailing B&O and retail sales tax
because the activities at Fun Zone Extreme are considered playground activities
for the purposes of (k) of this subsection.
Example 8. Each autumn, a local farmer opens his
property to the public to use for various family-related activities. The
property is open to visitors, free of charge, from September 15th through
October 31st. Activities available on the property include a corn maze,
inflatable bounce structures for children, and a petting zoo. Although general
admission is free, the owner charges a fee of five dollars per person to go
through the corn maze. The fee charged to customers to use the corn maze is
subject to retailing B&O and retail sales tax.
(l)
Shooting sports and
activities. Charges to the public to engage in shooting sports and
activities, such as target shooting, skeet, sporting clays, "5" stand, and
archery.
(m)
Skating.
Charges to the public to participate in skating, including ice skating, roller
skating, and inline skating.
(n)
Snow sports and activities (nonmotorized). Charges to the public
for the use of land or facilities to engage in the following nonmotorized snow
sports and activities: Downhill and cross-country skiing, snowboarding, ski
jumping, sledding, snow tubing, snowshoeing, and similar snow sports and
activities. This includes charges for the use of ski lifts and tows for snow
sports and activities and daily or season passes for access to trails or other
areas where nonmotor-ized snow sports and activities are conducted.
The snow sports and activities listed in (n) of this subsection
may occur at an outdoor facility in natural or artificial snow, or at an indoor
facility with no snow or artificial snow.
Example 9. During the summer months, Flurry
Mountain ski lodge allows the public access to its land for hiking. Flurry
Mountain charges a daily fee to hike on the land and a fee to use the ski lift
to obtain access to elevated hiking areas. Because the fees for hiking and
using the ski lift are not considered snow sports and activities, both fees are
subject to service and other activities B&O tax.
(o)
Swimming. Charges for
recreational or fitness swimming that is open to the public, such as open swim,
lap swim, and special events like kids night out and pool parties during open
swim time, and pool parties for private events, such as birthdays, family
gatherings, and employee outings. Charges for swimming lessons or participating
in swim meets or swim competitions are not retail sales unless provided by an
athletic or fitness facility as defined in
RCW
82.04.050.
Example 10. Swim Center, Inc. is an aquatics
center that provides swimming lessons and water fitness classes. All swimming
lessons and water fitness classes are subject to separate monthly fees. Swim
Center, Inc. is not considered an "athletic or fitness facility" as that term
is defined in
RCW
82.04.050. Accordingly, charges for swimming
lessons are subject to service and other activities B&O tax. However, fees
charged for water fitness classes are subject to retailing B&O and retail
sales tax.
(p)
Table
games. Charges to play air hockey, billiards, pool, foosball,
shuffleboard, ping-pong, and similar games.
(q)
Water sports and activities.
Charges for scuba diving, snorkeling, river rafting, surfing, kiteboarding,
flyboard-ing, water slides, water trampolines, water pillows, water rollers,
and similar water sports and activities such as canoeing and
kayaking.
Example 11. Main Street Marina charges separately
for kayak and canoe rentals and private lessons on how to operate the
watercraft. The charge to rent a kayak or canoe is considered the rental of
tangible personal property and is subject to retailing B&O and retail sales
tax. Charges for kayaking and canoeing lessons are also subject to retailing
B&O and retail sales tax.
(r)
Miscellaneous recreational services and activities. Charges for
bungee jumping, zip lining, activities involving riding inside a ball, such as
zorbing or water walking, paint-ball activities, airsoft activities, batting
cage activities, and darts, both electronic and
nonelectronic.
Statutory Authority:
RCW
82.32.300. 95-22-100, § 458-20-183,
filed 11/1/95, effective 12/2/95; 84-12-046 (Order ET 84-2), § 458-20-183,
filed 6/1/84. Statutory Authority:
RCW
82.01.060(2) and
82.32.300. 78-07-045 (Order ET
78-4), § 458-20-183, filed 6/27/78; Order ET 70-3, § 458-20-183 (Rule
183), filed 5/29/70, effective 7/1/70.