Is month-to-month rental subject to sales tax?

UPDATED: Sep 7, 2011

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Is month-to-month rental subject to sales tax?

If a person rents a room with a month-to-month rental agreement do they have to pay sales tax, if they stay for a month or more total? What if they start renting mid-month and pay for half a month, then pay for the next month on the 1st of the month?

Asked on September 7, 2011 under Real Estate Law, Washington


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The custom and practice in the residential and commercial real estate business is that sales tax is not included on any rental. The rent is typically a stated monthly amount, but certain utilities can be added onto the amount that vary from month to month.

I have never seen in the years that I have been practicing the imposition of sales tax upon a rental. The reason is that a rental is a rental and not an actual sale of a product to a consumer to keep, give away or dispose of such as clothes or a vehicle.

Landlords are required to report the income generated by their rentals for income tax purposes, at both the federal and state levels.

Good question.




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