About Business Taxes

For businesses operating in Newcastle, understanding tax responsibilities is important. The City does not have a business and occupation (B&O) tax or a utility tax, but it does collect a 5% admissions tax on certain events and activities. For sales and use tax reporting, most of the city uses location code 1736, while a small portion outside a Regional Transit Authority area uses location code 4036.

Admissions Tax

The admissions tax applies to fees for eligible events and activities, including indoor and outdoor events, cover charges, season tickets, and certain membership fees.

Taxable activities include:

• Season tickets or membership fees
• Cover charges or entrance fees
• Admission to art or sporting events
• Admission to entertainment facilities such as carnivals or amusement parks
• Admission to recreational facilities such as swimming pools, soccer fields, or resorts

Exemptions include:

• Elementary or secondary school activities
• Church or religious organization activities
• Government activities
• City-sponsored or co-sponsored events
• Qualifying non-profit activities (see NMC 3.32.040)

Businesses or organizations hosting taxable admissions must submit an Application for Certificate of Registration to the City. The certificate must be displayed visibly for patrons, along with a sign near the point-of-sale listing the amount of the fee that applies to the admission tax. The tax must also be shown separately on receipts.

Payments are submitted using the Admissions Tax Return form. For temporary or one-time events, payment is due within 24 hours of the event. For ongoing operations, payments are submitted quarterly: April 30, July 31, October 31, and January 31.

Sales Tax

Businesses in Newcastle must collect the correct sales tax on retail sales, including tangible goods, certain services (like installation, repair, or cleaning), and digital products sold to consumers. The Washington State Department of Revenue’s Tax Rate Lookup Tool helps determine the correct local rate, local tax code, and confirmation number.