WASHINGTON STATE TAXES Please go to the Washington State Department of Revenue website here (Links to an external site.) (Links to an external site.). Click on the FIND TAXES AND RATES drop down menu. Answer these questions for each menu option: SALES AND USE TAX RATES – Find the rates for the following cities for April 1, 2018. These rates are not necessarily the rate they have today.

QUESTION

WASHINGTON STATE TAXES

Please go to the Washington State Department of Revenue website here (Links to an external site.) (Links to an external site.).

Click on the FIND TAXES AND RATES drop down menu. Answer these questions for each menu option:

SALES AND USE TAX RATES – Find the rates for the following cities for April 1, 2018. These rates are not necessarily the rate they have today.

Algona

Brewster

Granite Falls

King County Unincorporated Non-RTA

Lynnwood

Republic

Selah

TAX INCENTIVES

What sales and use tax deferral programs exist? There are six of them.

BUSINESS AND OCCUPATION TAXES – Washington is the only state whose sole business tax is based on 100% of sales (gross sales).

Look up the following tax rates, then show how much tax a business would owe under each type of tax if their gross sales for a month were $500,000.

Retail B&O

Wholesale B&O

Service and Other Activities B&O (Attorneys, Accountants, Doctors, etc.)

Prescription Drug Warehousing B&O

Manufacturing of Aluminum Smelters B&O

Manufacturing or Wholesaling of Solar Energy B&O

RETAIL SALES TAX

What is an Interstate and Foreign Sale?

USE TAX

What is Use Tax?

PROPERTY TAX

Who do you pay property taxes to in Washington State?

OTHER TAXES

What tax is specifically a King County tax? (NOT the King County Food and Beverage Tax, which expired in 2011.)

INCOME TAX

What is the maximum amount of state sales tax and property tax (combined together) that you can deduct on your personal income tax returns until 2025?

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FEDERAL TAXES

Please click here (Links to an external site.) (Links to an external site.) to read a review of the latest changes in Federal Tax Law. While you are reading, look for answers to the following questions:

Who benefits most from the personal income tax bracket changes? Would a change in the “cost of living” (say New York City versus Moses Lake) make a difference? Please explain your answer.

Who benefits least from the personal income tax bracket changes? Would your answer be different if you were considering a two-income household instead of a single income (only one parent works or a single parent) household? Please explain your answer.

ANSWER