Business and occupation (B&O) tax is based upon the specific activity. Below are some typical activities performed by apiarists and the tax application for such activities.
Income from providing bee pollination services to a “farmer” by an eligible apiarist is exempt from business and occupation (B&O) tax. If you are an eligible apiarist and your business only provides pollination services to farmers, then you are not required to register with the Department of Revenue.
Income from providing pollination services to persons other than “farmers” is subject to B&O tax under the Service and Other Activities classification. Retail sales tax does not apply.
Sales of honey bee products
Wholesale sales (sales to someone who will resell your product) of honey bee products by an eligible apiarist are exempt from B&O tax. This includes sales of honey bees to farmers for the purpose of producing agricultural products for sale or for providing bee pollination services. If you are an eligible apiarist and your business only makes wholesale sales of honey bee products then you are not required to register with the Department of Revenue.
Retail sales (sales to the end consumer) of honey bee products are subject to B&O tax under the Retailing classification. Retail sales of honey bee products are also subject to litter tax. (WAC 458-20-243) Sales of honey for human consumption are exempt from sales tax as a food product; see (WAC 458-20-244).
Manufacturing and selling other products
If you manufacture (make) and sell other items (e.g. candles, soaps, etc.) then your income is subject to B&O tax under the Manufacturing classification. Additionally, the sale of such items is subject to B&O tax under either the Wholesaling or Retailing classification, depending on the type of sale. A Multiple Activities Tax Credit (MATC) is allowed, so that you only pay tax under one classification on items manufactured and sold in Washington. Additionally, you must collect retail sales tax on retail sales of such items.