Washington DOR Issues Information on Sales, Excise Taxability of Home Warranties

The Washington Department of Revenue Aug. 1 issued information on the taxability of home warranties for sales and use and excise tax purposes. The information includes: 1) the income earned from the repair of real property (“home warranty”) is subject to business and occupation (B&O) tax under the Service and Other Activities classification; 2) generally, repairs to real property are subject to retail sales tax; 3) the repair cost to fix a product is subject to B&O tax if the product is not covered by a home warranty and the repair person must collect retail sales tax from the customer; ...