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Many real estate brokers hire sign posting businesses to setup and take down the signs on properties offered for sale. The broker typically owns their “for sale” signs, while the sign posting business owns the post on which the broker’s sign will hang. The sign posting business will dig a hole in the ground, temporarily install a post, and hang the broker’s sign on the post. Once the property is sold or the listing contract expires, the sign posting business will remove the post and sign, then backfill the hole.
The income the sign posting business receives from this service is subject to business and occupation (B&O) tax under the Service and Other Activities classification. Retail sales tax does not apply.
The temporary installation of the post does not permanently improve real property. In addition, this is not a rental, as the broker does not have dominion or control over the post. Therefore, this service does not qualify as a retail activity.
WAC 458-20-204 Outdoor advertising and advertising display services.
