Common terms

Business License Application: Most businesses operating in Washington State are required to register. You register by completing a Business License Application. When you submit your application, you will receive a Unified Business Identifier (UBI) number and a Business License to post at your location.

Consumer: A consumer is any person who acquires, possesses or uses tangible personal property, or is the recipient of retail services. The tangible personal property or retail services may be for personal or business activities. RCW 82.04.190

RCW: Revised Code of Washington (Washington statutes or “laws”)

Retail Sales Tax: Retail sales tax is a tax on the purchase of goods and retail services. Generally, sellers are responsible for collecting the tax from the consumer and sending it to DOR. Sales tax is a combined state and local tax.

UBI/Account ID: The Unified Business Identifier (UBI) is a nine-digit number used to identify registered businesses. The number is assigned when a person completes a Business License Application. In most cases, your UBI number will also be your Department of Revenue (DOR) Account ID.

Use Tax: Use tax applies when goods or services are acquired and sales tax is not paid. Either sales or use tax applies to the acquisition of goods or retail services. Like sales tax, use tax is a combined state and local tax. The use tax rate and sales tax rate are the same in any given location.

WAC: Washington Administrative Code (administrative rules)

Terms from the Insurer Holding Company Act (RCW 48.31B.005)

Affiliate: Two people are considered to be affiliated if one person, directly or indirectly, controls or is under common control with, the other.

Control: Control—along with controlling, controlled by, and under common control with—mean having the power, directly or indirectly, to affect the management and policies of a person. This can occur through the ownership of voting securities, by contract (other than a commercial contract for goods or non-management services) or otherwise, unless the power is the result of an official position with or corporate office held by the person.

Control is presumed to exist if a person, directly or indirectly, owns, controls, or can vote, ten percent or more of the voting securities of any other person. This presumption may be disputed by filing a disclaimer as provided in RCW 48.31B.025(11).

Insurance holding company system: An insurance holding company system consists of two or more affiliated persons, one or more of which is an insurer.

Insurer: Insurer includes every person who writes insurance contracts, excluding fraternal benefit societies (RCW 48.01.050). It does not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.

Person: A person is an individual, corporation, partnership, association, joint stock company, trust, unincorporated organization, or any combination of these working together.

Subsidiary: A person’s subsidiary is an affiliate directly or indirectly controlled by that person.