Sales and use tax rate

AN ACT Relating to reducing the state sales and use tax rate; 1
amending RCW 82.08.020; and providing an effective date.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 82.08.020 and 2022 c 16 s 145 are each amended to 4
read as follows: 5
(1) There is levied and collected a tax equal to six ((and five-6
tenths)) percent of the selling price on each retail sale in this 7
state of: 8
(a) Tangible personal property, unless the sale is specifically 9
excluded from the RCW 82.04.050 definition of retail sale;10
(b) Digital goods, digital codes, and digital automated services, 11
if the sale is included within the RCW 82.04.050 definition of retail 12
sale; 13
(c) Services, other than digital automated services, included 14
within the RCW 82.04.050 definition of retail sale;15
(d) Extended warranties to consumers; and 16
(e) Anything else, the sale of which is included within the RCW 17
82.04.050 definition of retail sale. 18
(2) There is levied and collected an additional tax on each 19
retail car rental, regardless of whether the vehicle is licensed in 20
this state, equal to five and nine-tenths percent of the selling 21
H-0147.1
HOUSE BILL 1374
State of Washington 69th Legislature 2025 Regular Session
By Representatives Orcutt, Klicker, Couture, Jacobsen, Ley, Shavers,
and Dufault
Read first time 01/17/25. Referred to Committee on Finance.
p. 1 HB 1374
price. The revenue collected under this subsection must be deposited 1
in the multimodal transportation account created in RCW 47.66.070.2
(3) Beginning July 1, 2003, there is levied and collected an 3
additional tax of three-tenths of one percent of the selling price on 4
each retail sale of a motor vehicle in this state, other than retail 5
car rentals taxed under subsection (2) of this section. The revenue 6
collected under this subsection must be deposited in the multimodal 7
transportation account created in RCW 47.66.070. 8
(4) For purposes of subsection (3) of this section, "motor 9
vehicle" has the meaning provided in RCW 46.04.320, but does not 10
include: 11
(a) Farm tractors or farm vehicles as defined in RCW 46.04.180 12
and 46.04.181, unless the farm tractor or farm vehicle is for use in 13
the production of cannabis; 14
(b) Off-road vehicles as defined in RCW 46.04.365;15
(c) Nonhighway vehicles as defined in RCW 46.09.310; and16
(d) Snowmobiles as defined in RCW 46.04.546. 17
(5) Beginning on December 8, 2005, 0.16 percent of the taxes 18
collected under subsection (1) of this section must be dedicated to 19
funding comprehensive performance audits required under RCW 20
43.09.470. The revenue identified in this subsection must be 21
deposited in the performance audits of government account created in 22
RCW 43.09.475. 23
(6) The taxes imposed under this chapter apply to successive 24
retail sales of the same property. 25
(7) The rates provided in this section apply to taxes imposed 26
under chapter 82.12 RCW as provided in RCW 82.12.020.27
NEW SECTION. Sec. 2. This act takes effect October 1, 2025.28
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p. 2 HB 1374