Here’s everything you need to know about the Washington Sales Tax.
What’s the Washington Sales Tax?
Washington sales tax is charged on items you purchase like clothes and electronics. In addition, Washington state imposes a sales tax on certain types of software usage.
Why am I being charged this tax now and not last year?
We have to charge taxes in Washington because one of our employees works in Washington and all cloud-based software companies with employees, offices, or property (“nexus”) in Washington are required to collect this tax from its WA state customers.
Do I have to pay this tax?
All Washington state customers are required to pay this tax.
How did Basecamp decide if I am a Washington state customer?
We used credit card billing zip codes to determine who should be charged the tax. All customers with WA state zip codes are required to pay the tax.
How does Basecamp calculate this tax?
Basecamp is required to charge the sum of the Washington state tax rate of 6.5% plus local taxes. Local taxes may vary by county (and in some cases by zip code). For example, if you’re in Benton county the local tax rate is 2.1%. This local tax rate is added to the state sales tax rate of 6.5%, resulting in a total rate of 8.6%. If your Basecamp invoice is $29 and you live in Benton county, you’ll see a additional charge of about $2.49. 100% of the tax we collect will be sent on to the state of Washington.
When did this tax start?
Basecamp began collecting this tax in February 2016. If you’re a Washington state customer, you’ll see a separate line item on your invoice.
Will other companies charge this tax?
Yes, all software companies that have nexus (employee, offices or property) in Washington state are required to collect this sales tax from its customers.
What does Basecamp do with the tax it collects?
100% of the taxes Basecamp collects are remitted directly to Washington state.
Will these tax rates change?
Yes, local taxes and state taxes may change. We’ll update our billing to reflect changes in tax rates.
What if I am no longer a WA state customer and need to update my billing info?
####What should I do if my questions aren’t answered here or I need help?
Please contact our support team and they will be able to assist you.