Grocery

1 The business activities

Every retail sale still counts for retailing B and O, and food, groceries and soft drinks count for the litter tax.

2 What's taxable

Washington exempts food from sales tax, except prepared food, soft drinks, bottled water and dietary supplements. SNAP is a separate, broader exemption, so soda and bottled water bought with benefits are exempt too. At the deli, food the store heats, or mixes and sells as one item, is prepared food, and taxable.

Product taxability →

3 The exemption proof it needs

A buyer who's reselling gives the grocer its reseller permit. The proof is the grocer's job, so keep that permit on file for five years.

Exemption proof →

4 The returns it files

Then there's no sales tax, and the grocer reports wholesaling B and O instead. And from January 1, 2027, the retailing and wholesaling B and O rates both rise to half a percent. Returns for January 2027 on use the new rate.

Every return Sundry prepares →