A business that performs hauling for hire within the state of Washington is subject to the Public Utility Tax (PUT) under either the Motor Transportation or the Urban Transportation classification. The PUT on hauling for hire is generally due only on those trips that begin and end within Washington.
The term “hauling for hire” means the business of operating any motor vehicle to transport people or property owned by others, for a fee.
Examples include:
Hauling for hire does not include:
The Motor Transportation PUT classification applies to all in-state hauls unless the haul qualifies as an Urban Transportation haul.
The Urban Transportation PUT classification applies when the origin and destination of a haul are within any of the following:
Mileage between cities, and between pickup and delivery points are determined by a straight line distance rather than road miles.
The motor and urban transportation classifications of the PUT rates are:
Classification | Rate |
---|---|
Motor Transportation | 1.926% (.01926) |
Urban Transportation | 0.642% (.00642) |
You must maintain detailed records for any hauls that you report under the Urban Transportation PUT classification. In the event of an audit, any hauls reported under the Urban Transportation PUT classification that cannot be verified may be reclassified to the Motor Transportation PUT classification.
You must report your total gross income from hauling for hire under either the Motor Transportation PUT classification or the Urban Transportation PUT classification. The two most common deductions available for these classifications are described below. You cannot deduct your costs of doing business, or any amounts retained by freight brokers.
This deduction is available for amounts you pay to another hauler for hire to complete a portion of a haul you are contracted to complete.
Example: You are hired to haul goods from Olympia to Spokane. You haul the goods from Olympia to North Bend. You hire another transportation company to haul the goods from North Bend to Spokane. You may deduct the amount you pay to the other transportation company.
This deduction is available for any of the following types of hauls: