WAC 267

Tax on manufacturers and processors of various foods and by-products -- Research and development organizations -- Travel agents -- Certain international activities -- Stevedoring and associated activities -- Low-level waste disposers -- Insurance agents, brokers, and solicitors--Hospitals -- Commercial airplane activities -- Timber product activities -- Canned salmon processors.

Tax on aluminum smelters.

Tax on manufacturers or wholesalers of solar energy systems.

Credit -- Preproduction development expenditures

Credit -- Property and leasehold taxes paid on property

Credit -- Property taxes paid by aluminum smelter.

Exemptions -- Tangible personal property used at an aluminum smelter.

Exemptions -- Labor, services, and personal property related to the manufacture of super efficient airplanes

Exemptions -- Tangible personal property used at an aluminum smelter.

Exemptions -- Labor, services, and personal property related to the manufacture of super efficient airplanes.

Exemptions -- Sales to electrolytic processing businesses.

Annual reports for certain tax adjustments. Adopted on an emergency basis effective 1/7/05. Updated 09/21/06 and effective 10/22/06.

WAC 458-20-267 (Rule 267)In order to take certain tax exemptions, credits, and rates ("tax adjustments"), taxpayers must file an annual report with the Department of Revenue detailing employment, wages, and employer-provided health and retirement benefits per job at the manufacturing site.

Annual Reports for certain adjustments In order to take certain tax exemptions, credits, and rates (“tax adjustments”), taxpayers must file either an annual report or annual survey depending on the tax adjustments being taken. The annual report or survey must be filed with the Department of Revenue detailing employment, wages, and employer-provided health and retirement benefits. These rules explain who is required to and how to file an annual report or annual survey, and what information must be included.

Annual Reports for Certain Tax Adjustments WAC 458-20-267, titled: “Annual reports for certain tax adjustments” (Rule 267) is amended at the introduction in section (1) of the rule by changing the phrase “aerospace manufacturing” for clarity to “aerospace industry” and adding the phrase “government funded mental health services.” Rule 267 is also amended to add the government funded mental health services tax preference to the annual report requirement. Further, section (3) of the rule is amended to update the filing requirements and correct caption grammatical errors.

Sales Tax Exemption on Solar and Other Renewable Energy Systems Change to Program

Renewable Energy Systems Sales and Use Tax Exemption Due to Expire

Renewable Energy System Cost Recovery Program - Production Incentive

Equipment Approved for "Made in Washington" Renewable Energy Systems Cost Recovery Incentive Payments

Reduced B&O tax rate for manufacturers of solar energy systems and certain components of those systems extended; Sales/use tax exemption for processing semiconductor materials amended

Renewable Energy Cost Recovery Incentive Program, Modifications to Program

New Apportionment Method

Renewable Energy Cost Recovery Incentive Program, Modifications to Program

Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients

Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

Manufacturers of Solar Systems Using Sterling Converters Receive Reduced B&O Tax Rate

Renewable Energy Industry Incentives

Solar Sterling Converter Manufactured in Washington Added to Renewable Energy Cost Recovery Incentive Payment Program

Tax Incentives for Generation of Electricity from Renewable Resources

RULE 267; RCW 82.04.260, RCW 82.32.545: BUSINESS AND OCCUPATION (B&O) TAX – AEROSPACE MANUFACTURER’S PREFERENTIAL RATE – ANNUAL REPORT REQUIREMENT – DEADLINE FOR SUBMISSION OF ANNUAL REPORT. Taxpayer petitioned the Department for a refund of the difference between Wholesaling B&O tax it paid for 2008 and 2009 and the preferential Aerospace Manufacturer’s rate. Taxpayer filed the required annual reports for 2008 and 2009 in the latter part of 2012.

RCW 82.08.975; RCW 82.12.975: RETAIL SALES TAX – USE TAX – AEROSPACE PRODUCTS AND SERVICES – PURCHASE AND USE OF COMPUTERS. Taxpayer claimed that certain computers it purchased were exempt from retail sales tax and use tax because they were used primarily in the development, design, and engineering of aerospace products or in providing aerospace services. However, Taxpayer failed to produce documentation supporting its claim, and, therefore, failed to meet its burden of proving it was entitled to the exemption.

RULE 267; RCW 82.32.545; RCW 82.32.534: B&O TAX – AEROSPACE MANUFACTURER’S PREFERENTIAL RATE – ANNUAL REPORT REQUIREMENT – DEADLINE FOR SUBMISSION OF ANNUAL REPORT. Taxpayer was precluded from reporting its business activity under the Aerospace Manufacturer’s preferential B&O tax rate because it failed to file the required annual report by the deadline under the requirements of both former RCW 82.32.545, and its replacement, RCW 82.32.534.

RCW 82.04.2404: B&O TAX -- MANUFACTURING -- PREFERENTIAL RATE -- SEMICONDUCTOR MATERIALS – INTERMEDIATE PROCESS. Because the manufacture of compound semiconductor wafers that a taxpayer will incorporate into an end product being produced for sale is not subject to any manufacturing tax, the preferential manufacturing rate does not apply.

RCW 82.08.9651 AND RCW 82.12.9651: RETAIL SALES AND USE TAXES – EXEMPTION -- MANUFACTURE OF SEMICONDUCTOR MATERIALS GASSES AND CHEMICALS -- INTERMEDIATE MANUFACTURING PROCESS. The retail sales and use tax exemptions for gases and chemical used in the manufacture of semiconductor materials applies even when the manufacture of compound semiconductor wafers is an intermediate manufacturing step of a final product for sale.