06/30/2009: "New Tax Law Started Last Year"

No longer do Washington retailers collect local sales tax based on the jurisdiction from which a product is shipped or delivered. This cost local communities the tax money collected from sales to their citizens. But a change in the tax law means when you buy off-island, the tax money returns to the County.

Things changed starting July 1, 2008, when begin collecting sales tax based on the location where the customer receives the goods; the destination of the sale.

This switch to destination-based sourcing of local sales tax stems from legislation enacted during the 2007 legislative session that conformed Washington’s sales tax system to the national Streamlined Sales and Use Tax Agreement (SSUTA), allowing Washington to participate in this national program as a member state.

The SSUTA seeks to preserve the economic vitality of brick-and-mortar businesses by reducing the competitive advantage held by out-of-state sellers who don’t charge sales tax. By standardizing the way each state taxes goods.

the goal is to encourage remote seller to collect and remit sales tax in all states. More than 1,000 Internet and mail order sellers have agreed to voluntarily collect and remit sales tax on sales to customers in member states.

The legislation included a mitigation provision that will provide assistance to those jurisdictions that experience a loss of revenue as a result of this change. For information about this change and the mitigation program, please refer to Washington State Department of Revenue’s website at http:// destinationtax.dor.wa.gov.