Presumably you are not an insurance company that is receiving the premiums as that is what is subject to sales tax for insurers in Washington state.
"Income received by insurers that is subject to the premiums tax, is exempt from business and occupation (B&O) tax (RCW 82.04.320). However, the B&O tax exemption does not extend to sales tax or use tax
. Insurers are consumers of tangible personal property and retail services, and must pay sales or use tax on the goods and retail services used in Washington."
Commissions are not an item that is subject to Washington state sales tax. See the chart at http://dor.wa.gov/Docs/Pubs/ExciseTax/FilTaxReturn/MajorTaxes.htm
and the article at http://dor.wa.gov/docs/reports/2010/tax_reference_2010/07sales.pdf
"The definition of retail sale is contained in RCW 82.04.050. Because services are not specifically defined as being taxable, most services rendered to persons and businesses are not subject to sales tax. This includes medical, legal, accounting, and similar services performed by professionals, as well as services of barber shops, beauty parlors, funeral homes, cable TV companies, etc."
Title insurance is the only item listed as subject to sales tax in RCW 82.04.050
Commissions are subject to the business and occupation (B&O) tax as explained at http://dor.wa.gov/content/fileandpaytaxes/beforeifile/def_txclassbando.aspx#0014
"Insurance agents, brokers, or solicitors. The amount of gross income is determined by the amount of gross commissions received, not by the gross premiums paid by the insured. “Gross income” includes gross receipts
from commissions, fees, and other amounts which the agent, broker, or solicitor receives or becomes entitled to receive. It does not include amounts held in trust for the insurer or the client. No deduction
is allowed for commissions, fees, or salaries paid to other agents, brokers, or solicitors, or for other expenses of doing business. Each person acting in the capacity of agent, broker, or solicitor is presumed to be engaging in business and subject to the B&O tax unless such person can demonstrate the he or she is a bona fide employee. WAC 458-20-164"
Services are not generally subject to sales tax, either state or local.
If you buy items for use in the insurance business for which sales tax is not paid then use tax will be paid and the item will be listed under both state and local sales tax. For more details see http://dor.wa.gov/content/findtaxesandrates/usetax/
The business will include in gross income subject to B&O tax the amount of gross receipts from commissions, fees, and other amounts received or entitled to receive.
Please ask if you need clarification.