Application of Sales & Use Taxes

What Is a Sales & Use Tax?

Most states impose sales and use taxes on the retail sale, lease, and rental of many goods, as well as some services. Many cities, counties, transit authorities, and special purpose districts impose additional local sales or use taxes.

Calculating Sales Tax

Sales and use tax is calculated by multiplying the purchase price by the applicable tax rate. Tax rates vary widely by jurisdiction. Sales tax is collected by the seller at the time of sale. Use tax is self assessed by a buyer who has not paid sales tax on a taxable purchase.

Sales taxes in the State of Washington, including those imposed by local governments, are administered by the Washington State Department of Revenue. Businesses are required to collect tax from customers, file returns, and remit the taxes to the state. View rules for calculating and reporting taxes, as well as tax rates and other information.

What Do Sales & Use Taxes Fund?

Sales and use taxes are used to fund the public services and infrastructure provided in the area in which the services are provided, the merchandise is delivered, or the construction project occurs.

Therefore, if you buy in Sequim, you support the City of Sequim in providing basic governmental services. Additionally, the City of Sequim allocates a portion of the local tax for the sole purpose of funding transportation improvement projects.