Sales Tax Code
What is Sales and 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. 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. Rules for calculating and reporting taxes, as well as tax rates and other information can be found at the Department of Revenue Home Page.
Buying in Sequim Counts!
Sales and use taxes are used to fund the public services and infrastructure 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. (See Sequim TBD)
What are the state and local tax rates in this area?
State and Local Sales Tax Rates
What is the Sequim TBD and why are the local tax rates higher than other areas in Clallam County?
The Sequim TBD or Transportation Benefit District was established as a quasi-municipal corporation, an independent taxing district, on July 14, 2008. The TBD was created for the sole purpose of acquiring, constructing, improving, providing and funding transportation improvements within the District. The boundaries of the TBD are identical with the City of Sequim limits. Voters approved a ballot measure in November 2009 to authorize a sale and use tax of two-tenth’s of one percent (0.2%) to be collected within the TBD, effective April 1, 2010.