Enterprise activities | Washington Department of Revenue

Enterprise activities are activities financed and operated in a manner similar to a private business and includes activities in competition with private businesses. They are subject to tax in the same manner as a private business. Activities include sales of goods and services that are not exclusively governmental and are not directly related to providing public education.

The activity must also be funded by over 50% of user fees to be considered an enterprise activity. See non-enterprise activities for how to determine the percentage.

Application of tax

• Income received from enterprise activities is subject to the B&O tax under the appropriate classification.
• Retail sales tax must be collected on retail sales.

Examples of retail enterprise activities (subject to retailing B&O tax, subject to RST):

• Sales of meals to the public or to guests of students.
• Sales of tangible personal property, such as surplus equipment. (Excluding student store sales)
• Charges or fees to students, faculty, or the public for parking or parking stickers.

Examples of non-retail enterprise activities (subject to service and other activities B&O tax, exempt from RST):

• Commission income from allowing coin-operated machines on the school premises (telephones, candy, soda pop, etc.)
• Income from special event (non-school) admission fees.
• Rental income from renting conference facilities. (If funded over 50 percent with user fees)