The state of Washington has published an article clarifying the application of sales and business and occupational taxes to providers of online classes. Live online classes which allow for direct interaction between presenter and participants are not subject to retail sales taxes, and the revenue from these activities are subject to the B&O Service and Other Activities rate. Classes that do not allow for real time interaction, or that only provide a chat room or digital help desk for prerecorded videos, are subject to retail sales tax and the B&O Retailing rate. Businesses offering online classes in Washington, especially those that provide both live and asynchronous instruction, should keep these distinctions in mind to ensure they are correctly collecting tax and reporting their income. (Online instructional classes, Washington State Department of Revenue; WAC 458-20-15503(303)(J); RCW 82.04.192(3)(b)(X))