B&O tax rate for aerospace businesses
Effective April 1, 2020, Engrossed Senate Bill 6690 repealed the aerospace preferential rates in RCW 82.04.260(11). Businesses no longer report under the following line codes:
- Manufacturing of Commercial Airplanes, Components, or Aerospace Tooling.
- Wholesaling of Commercial Airplanes, Components, or Aerospace Tooling.
- Retailing of Commercial Airplanes, Components, or Aerospace Tooling.
Aerospace manufacturers of commercial airplanes and manufacturers of components
Beginning April 1, 2020, B&O tax rates for manufacturers of commercial airplanes and/or or manufacturers of components for commercial airplanes will increase. If you manufacture and/or sell commercial airplanes and/or manufacture components for commercial airplanes you should report under the following line codes:
- Manufacturing of Commercial Airplanes or Components (0.484%).
- Wholesaling of Commercial Airplanes or Components (0.484%).
- Retailing of Commercial Airplanes or Components (0.484%).
Aerospace tooling manufacturers
Beginning April 1, 2020, B&O tax rates for manufacturers of tooling will increase. If you manufacture and/or sell tooling that is used by manufacturers of commercial airplanes and/or manufacturers of their components, you should report under the standard B&O tax rates for manufacturing, processing for hire, wholesaling, and retailing.
Please see our Special Notice: Increased B&O tax rates for certain aerospace tax classifications and ESB 6690 for more information. If you have any questions or need assistance reporting, please contact us at 360-705-6216.