Effective July 23, 2023, Washington state has revised its tax rules regarding meals provided to residents of senior living communities. If the charges for food, drinks, and meals are not separately stated in the rental agreement, they will no longer be subject to sales or use tax. Instead, the value of these meals will be subject to business and occupation (B&O) tax under the “Service and Other Activities” classification. Senior living communities that do charge separately for food, drinks, or meals must continue to collect sales tax.
Source: salestaxinstitute.com
