Tax & Accounting Blog

Temporary Washington State Sales/Use Tax Increase in Legislation

Indirect Tax, ONESOURCE, Sales and Use Tax April 29, 2011

Washington state Senator Paull Shin has proposed a bill, WA S.B. 5937, that is championing a temporary increase to the state sales and use tax rate. If the bill is passed the rate will increase from 6.5% to 7.5% from 1 June 2011 until 30 June 2013. In addition, there is a stipulation in the bill that states if the state’s unemployment rate decreases to 6.5% for four consecutive months then the tax rate would decrease to 7.0%. If the unemployment rate were to drop to 5.0% then the tax rate would go back to 6.5%.