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Washington Sales Tax on Bag Fees

  • Aug 10, 2012 | Will Frei

Washington sales tax applies to fees on carry out bags, explains an update from the Washington Department of Revenue.

Some Washington cities now require retailers to charge customers a fee for certain carry out bags, such as the disposable plastic bags and paper bags used at grocery stores. The Department states that this kind of fee constitutes a ". . . retail sale, subject to retail sales tax and the retailing B&O tax."

In addition, Seattle, Bellingham and some other cities have passed, or may pass, ordinances  that ban the use of plastic carryout bags. These ordinances require, or allow, retailers to ". . . collect fees from customers who request paper carryout bags." According to the Department, these fees are also subject to sales tax.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.