Effective August 1, 2017, the State of Washington will extend its retail sales tax to sales of bottled water. The sales tax expansion is part of a revenue bill (HB 2163) passed to raise funds for the recently enacted state budget. Bottled water was taxable until 2004, and was then tax exempt for the next six years. Bottled water, along with candy, was made taxable by the legislature in June of 2010, only to become exempt once again on December 2, 2010 when Washington voters passed Initiative 1107 rejecting the tax.
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