Washington State 2010 Tax Legislation Changes

Washington State 2010 Tax Legislation Changes:

Information is current as of 04/21/2010

1.  Effective May 1, 2010

a.  Temporary B&O Tax Increase (2ESSB 6143 Section 1001)


All business activity reportable under the "Service & Other Activities, and Gambling Contest of Chance (over $50,000)" B&O Tax classifications are subject to a temporary B&O tax increase of 0.3 percent, bringing
the rate to 1.8% and 1.93% respectively.  An exemption is provided for hospitals and scientific research and development activities.  Businesses, subjected to this increased rate may qualify for a maximum $70 monthly

b.  Cigarette and other tobacco products.


Increases the cigarette tax by 1.00 to $3.025 per pack.  Other tobacco products tax (except for moist snuff and little cigars) is increase to 95 percent of the current taxable sales price.  Taxes on cigars cannot exceed 65 cents per cigar.  The tax rate on moist snuff is $2.536 per can or package who’s net weight is 1.2 ounces of less.  The little cigar tax is equal to the cigarette tax. 

2.  Effective June 1, 2010

a.  Bottled exemption repealed (2ESSB 6143 Section 901).

All bottled water, including that which is deliverable in reusable contained is now taxable.  The only exemption is water used for medical reason or in areas where there is no source of potable water.

b.  Candy and Gum sales tax exemption repealed; B&O Jobs Credit (2ESSB 6143 Section 901).

All Sales of Candy and Gum are subject to the retail sales tax.  Candy manufacturers may receive a B&O tax credit of $1,000 for each employment position maintained for a calendar year.

Please see the Washington State Department of Revenue Web site for more information on these changes:


If you need assistance with updating your system tax configuration, please contact the CCS Retail Systems Support Department.

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