Washington State

Office of the Attorney General

Attorney General

Bob Ferguson

AGO 1961 NO. 52 >

(1) Municipal corporations which operate "automobile parking and storage garage businesses" are subject to the retail sales tax imposed by § 1, chapter 24, Laws of 1961, (RCW 82.04.050) regardless of whether the collections are made by meters. (2) Municipal corporations are required to pay the business and occupation tax when they operate a parking lot.  However, when they lease the operation of the facilities to private parties the operator rather than the municipality must pay the tax. (3) Agencies of the state of Washington, such as the University of Washington, are not required to collect the sales tax and are not subject to the business and occupation tax.