Product taxability
Washington's odd cases, for the bookkeeper: candy is exempt but soda and bottled water are taxable, the 75 percent prepared-food rule, the services that became retail sales on October 1, 2025, and excise measured per liter and per unit. Each decision lands on a line of the return and on the Sundry Worksheet.
- 0:00 Candy and soda
- 0:23 Prepared food
- 0:37 The services law
- 0:54 Excise
- 1:02 On the return
- 1:16 End card
Transcript
Dana My corner-store client asks me: is candy taxable?
Sal Not in Washington. Candy is food, and food is exempt from retail sales tax.
Sal The exceptions are prepared food, soft drinks, bottled water and dietary supplements. So the soda next to the candy is taxable, and so is the bottled water.
Sal And exempt food still counts toward retailing B and O.
Dana What about a deli?
Sal Prepared food is food sold hot, with utensils, or mixed by the seller. And a seller that makes utensils available and sells more than seventy-five percent prepared food collects sales tax on most of its food.
Sal Services changed too. From October first, twenty twenty-five, ESSB 5814 made these retail sales: advertising, custom software and websites, IT training and support, temporary staffing, live presentations, and investigation and security.
Sal Excise works differently. The product is classified, then measured: spirits per liter as well as on price, cigarettes per cigarette.
Sal Each decision carries through to a line on the return. The Sundry Worksheet mirrors that return line for line, and every line opens to the transactions behind it.
Sal Every product, against its statute. It's at sundry.tax/taxability.