Overview
Washington regulates vending machines through business registration, Business and Occupation (B&O) tax compliance instead of sales tax, and comprehensive health permits for food vending operations. The state has progressive business regulations with enhanced worker protection and environmental requirements.
Washington uses B&O tax instead of traditional sales tax. Seattle and other major cities have additional business licensing requirements. Cannabis vending is legal with strict regulatory compliance.
Business Registration
Business registration is required for vending operators in Washington.
Registration Agency
Washington Secretary of State →
Registration Types
- LLC Formation ($200 filing fee)
- Corporation Formation ($200 filing fee)
- Partnership Registration ($200 filing fee)
- Foreign Entity Registration ($200 filing fee)
- Trade Name Registration ($5 filing fee)
Business entities must maintain a registered agent and office in Washington. Annual reports required for corporations and LLCs. Master Business License covers multiple state requirements.
Sales Tax
Tax Application
- General sales tax applies to vending: No
- Food tax variation: Exempt
- Local rates possible: No
- Resale certificate required: No
- Filing frequency: monthly for most businesses
Washington uses Business and Occupation (B&O) tax instead of sales tax. B&O tax rates vary by business classification. Retailing B&O tax rate is 0.471%. Local B&O taxes may also apply in some jurisdictions.
Registration
Forms: Master Business License Application, Reseller Permit (for purchasing)
Vending Operator License
Vending operator license is not required in Washington.
Machine Registration
Machine registration is not required in Washington.
Health Permit & Food Code
Health permits are required for:
- Machines dispensing potentially hazardous foods (TCS)
- Micro markets
- Fresh food vending
Agency: Washington Department of Health
Food Code: 2017 FDA Model Food Code with Washington modifications
Inspections: At least annually
Micro Markets
Micro markets are recognized in state code.
Permit required: Yes
Specific Requirements
- Food establishment permit required
- Food worker cards for handlers
- TCS foods require temperature control
- Adequate supervision or monitoring system
- Compliance with Washington food worker illness prevention rules
Product Restrictions
Restricted Products
- Alcohol: Prohibited in vending machines. Washington requires licensed establishments for alcohol sales through the Washington State Liquor and Cannabis Board with trained staff and age verification systems.
- Tobacco: Prohibited in accessible vending machines except in adult-only establishments. Age 21+ requirement. Employee-assisted sales required. Enhanced penalties for violations.
- CBD/Hemp: Hemp products must comply with Washington State Department of Agriculture hemp regulations and Liquor and Cannabis Board rules. Adult-use cannabis vending is legal with proper licensing and compliance.
- Age Verification: Strict age verification required for restricted products. ID required for anyone appearing under 30. Enhanced enforcement and penalties for age- restricted product violations.
Placement Rules
Schools
Federal Smart Snacks nutrition standards apply plus Washington-specific requirements. Office of Superintendent of Public Instruction administers comprehensive school nutrition programs with enhanced standards.
Public Buildings
Must comply with state and local procurement regulations. Vendor registration required for government contracts. Environmental sustainability requirements may apply to public contracts.
Private Property
Property owner permission required. Subject to local zoning and business regulations. Must comply with ADA accessibility requirements and Washington accessibility codes.
ADA & Accessibility
Must comply with ADA requirements and Washington State accessibility codes. Enhanced accessibility requirements beyond federal standards may apply in some jurisdictions.
Electrical & Fire Code
Must comply with Washington State Building Code and local fire codes. Building permits required for installations. Energy efficiency requirements may apply.
Local Permits
Washington has home rule, meaning local jurisdictions can impose additional requirements.
Typical Local Requirements
- City business license
- Local health permits for food vending
- Building permits for installations
- Environmental compliance permits
- Workers' compensation coverage
- Local B&O taxes (some jurisdictions)
Example Localities
Seattle
Business license required for vending operations. Health permits through Seattle-King County Health Department. Special permits for public spaces. Enhanced worker protection requirements. Environmental compliance may be required.
Spokane
Business license required. Health permits for food vending through Spokane Regional Health District. Building permits for installations. Zoning compliance required.
Tacoma
Business license required. Health permits for food vending through Tacoma-Pierce County Health Department. Building permits for installations. Special permits may be required for downtown areas.
Penalties & Enforcement
Common Violations
- Operating without Master Business License
- B&O tax non-compliance
- Food safety violations
- Operating without health permits
- Workers' compensation non-compliance
- Age-restricted product violations
Penalties
- B&O tax penalties: 5% of tax due per month
- Food safety violations: permit suspension or revocation
- Business license violations: fines vary by locality
- Workers' compensation violations: significant penalties
- Age restriction violations: enhanced fines and penalties
Key Contacts
Washington Department of Revenue
Phone: (360) 705-6705
Washington Department of Health
Phone: (360) 236-4300
Washington Secretary of State
Phone: (360) 725-0377
Washington State Liquor and Cannabis Board
Phone: (360) 664-1600
Frequently Asked Questions
How does Washington's B&O tax work for vending machines?
Washington uses Business and Occupation (B&O) tax instead of sales tax. Vending operations typically fall under the retailing classification with a 0.471% rate. You pay tax on gross receipts, not collect tax from customers. Local B&O taxes may also apply.
Are health permits required for food vending machines in Washington?
Yes, machines dispensing potentially hazardous foods and micro markets require food establishment permits. Food worker cards required for all food handlers, and permits cost around $300. Washington has enhanced food safety requirements.
Can I sell cannabis products through vending machines in Washington?
Yes, adult-use cannabis vending is legal in Washington with proper licensing through the Liquor and Cannabis Board. Strict compliance requirements apply including security, tracking, and age verification. Special cannabis retailer license required.
Do I need workers' compensation for vending operations?
Yes, Washington requires workers' compensation coverage for all employees. Even single-person operations may need coverage depending on business structure. Check with the Department of Labor and Industries for specific requirements.
What are Seattle's specific vending requirements?
Seattle requires business licenses for vending operations, health permits through Seattle-King County Health Department, and special permits for public spaces. Enhanced worker protection requirements and environmental compliance may apply.
What are the penalties for non-compliance in Washington?
Penalties include 5% per month on unpaid B&O taxes, permit suspension for food safety violations, varying fines for business license violations, significant penalties for workers' compensation violations, and enhanced fines for age-restricted product violations.
Sources
- Washington Department of Revenue - Business and Occupation Tax
- Washington Department of Health - Food Safety Program
- Washington Secretary of State - Corporations and Charities
- Washington OSPI - Child Nutrition Services
- Washington State Liquor and Cannabis Board
- City of Seattle - Business License Information
- City of Spokane - Business Registration
- City of Tacoma - Business Licenses