The B&O tax does not apply if you are a grape farmer that makes wholesale sales of grapes you produce on land you own or have right to possess, unless you use grapes you’ve grown to manufacture – see below. If such wholesale sales are your only sales, then you don’t need to get a UBI or tax account ID from the Department of Revenue. RCW 82.04.330
If you make wholesale sales of non-agricultural products (i.e., wine barrels, machinery or equipment) or of agricultural products that you did not grow yourself (i.e., grapes grown by another farmer), the gross income from such sales is subject to wholesaling B&O tax. If you have over $12,000 annual income from such sales, you must have a Department of Revenue tax account ID. WAC 458-20-101
If you make any wholesale sales, you will need to receive a completed reseller permit from the buyer to document the wholesale nature of the sale.
To report such sales on the tax return, report the gross sales amount under the wholesaling B&O tax classification.
Note: The term "farmer" does not include a person using grapes they have grown as ingredients in a manufacturing process such as making wine, or a person growing or producing grapes for his or her own consumption. Therefore, per RCW 82.04.213, persons who use their own agricultural product in a manufacturing process are excluded from the definition of "farmer" and are not eligible for the B&O tax exemption for wholesale sales under RCW 82.04.330.