We listed each deduction definition below. If you need more help with reporting deductions, contact us.
Paper filers: You must attach the Deduction Detail page to any tax return on which you take a deduction. If you do not complete and attach the Deduction Detail pages, we can't accept the information and you may be billed for additional taxes, interest, and penalties.
Amounts received as advancement or reimbursement when the customer or client alone is liable to pay for the procurement of goods and services. The taxpayer making the payment cannot have primary or secondary liability, other than as agent, to pay for the goods and services. See returns and allowances. WAC 458-20-111; WAC 458-20-108
Amounts derived from the distribution of water through an irrigation system, solely for irrigation purposes. WAC 458-20-179
Amounts expended to improve consumers' efficiency of energy use, or to otherwise reduce the use of electrical energy or gas by consumers, provided the installations of the measures to improve the efficiency were begun after June 12, 1980 and before January 1, 1990. WAC 458-20-17901
Amounts paid to a subcontractor of a public utility service that is jointly provided. This deduction is available to prime contractors of public utility services. Sellers of public utility commodities (gas, water, and electrical power) may also take a deduction under the Other line for sales for resale. Write "for resale" on the Other line. WAC 458-20-179
To qualify for this deduction, the income must be derived from the distribution of water and be used for capital improvements. Amounts which meet only one of these conditions are not deductible. WAC 458-20-179
Income subject to the service and other activities classification, the royalties classification, and other apportionable income B&O classifications must apportion income between states and/or countries. Economic Nexus page; WAC 458-20-19401
Activities conducted by qualifying artistic or cultural organizations are not subject to B&O tax. WAC 458-20-249
Amounts previously reported and determined to be noncollectable. These amounts must also be written off for IRS purposes. The bad debt credit or deduction is limited to the original retail seller. See Bad Debt Tax Credit. WAC 458-20-196; Special Notice – Bad Debt Deduction – Limited
The amount of the discount may be deducted from the gross proceeds of sales if such amount was previously reported. Discounts are typically used as incentives for early payment. WAC 458-20-108
Casual sales consist of amounts received for sales of tangible personal property by persons not usually selling such items. Note: The seller must collect and remit the sales tax. Accommodation sales are amounts received by a business for selling goods at cost to a like business to fill an existing order. WAC 458-20-106; WAC 458-20-208
Bona fide initiation fees and membership dues received by a business for which no goods or services are received and only give the payee the right to be a member. Contributions that are given as outright gifts for which no goods or services are received can also be deducted. WAC 458-20-183
Amounts for network telephone service, other than toll service, for residential customers and network telephone service paid for by using coins in a coin-operated telephone. WAC 458-20-245
Clay targets purchased by nonprofit gun clubs are exempt from retail sales and use tax when the targets are used in providing the activity of clay target shooting for a fee. This tax preference is subject to public disclosure 24 months after it was claimed. Special Notice - The Purchase of Clay Targets by a Nonprofit Gun Club; RCW 82.08.205; RCW 82.12.205
Water distribution businesses with a water system plan that includes plans for water conservation may deduct 75 percent of the amounts expended for water conservation. The plan must be filed with the Department of Health. (ESHB 1832, Chapter 237, Laws of 2001)
Sales of consigned goods when the seller collects and remits the retail sales tax. WAC 458-20-159
Selling dairy, fresh fruit/vegetable, or seafood products manufactured and sold by the manufacturer at wholesale to a customer that transports the product outside this state in the normal course of business. Special Notice – Dairy product manufacturers B&O tax deductions extended – Update on tax reporting requirements; Special Notice – Fresh Fruit or Vegetable Manufacturers B&O Tax Exemptions Extended – Change in Filing Requirements; Special Notice – Seafood product manufacturers B&O tax exemptions extended – Change in filing requirements; RCW 82.04.4266; RCW 82.04.4268; RCW 82.04.4269
Selling dairy products manufactured and sold by the manufacturer at wholesale to a customer who uses the dairy products as an ingredient or component in the manufacturing of another dairy product in Washington. Special Notice – Dairy product manufacturers B&O tax deductions extended – Update on tax reporting requirements; RCW 82.04.4268
Selling dairy or seafood products manufactured and sold by the manufacturer at retail to a customer that transports the product outside this state in the normal course of business. Special Notice – Dairy product manufacturers B&O tax deductions extended – Update on tax reporting requirements; Special Notice – Seafood product manufacturers B&O tax exemptions extended – Change in filing requirements; RCW 82.04.4268; RCW 82.04.4269
Beginning October 1, 2014, vessel deconstruction activities are exempt from retail sales and use taxes. The sales tax exemption only applies to deconstruction facilities holding the required permit. RCW 82.08.9996
You may take a business and occupation (B&O) tax deduction for Delivery System Reform Incentive Payments (DSRIP) if you are:
- an accountable community of health that receives DSRIP from the Washington Healthcare Authority;
- a hospital owned by a municipal corporation or political subdivision; or
- a hospital affiliated with a state institution.
The Department of Revenue allows certain purchasers to pay use tax directly to the Department rather than to their vendors at the time of purchase. Businesses must present a copy of the Direct Pay Permit to the vendor. Vendors must retain a copy of the permit in their files to document the exempt sale. Sales should be reported under the Retailing and Retail Sales Tax classification. Identify the retail sales tax deduction on the deduction detail page of the tax return as "Direct Pay Permits." Not allowed against Retailing B&O. Special Notice – Certain Taxpayers To Pay Use Tax Directly to the Department of Revenue
Effective October 19, 2017, the law exempts certain sales of fertilizer, crop protection products and seeds between eligible distributors and eligible retailers from B&O tax when there is a specified percentage of common ownership between the distributor and retailers. RCW 82.04.628
Sales of food and food ingredients are exempt from retail sales tax. However, prepared foods, dietary supplements, and soft drinks are taxable. To review food definitions, see Special Notices. RCW 82.08.0293; WAC 458-20-244
Manufacturing dairy, fresh fruit/vegetables, or seafood products. Special Notice – Dairy product manufacturers B&O tax deductions extended – Update on tax reporting requirements; Special Notice – Fresh Fruit or Vegetable Manufacturers B&O Tax Exemptions Extended – Change in Filing Requirements; Special Notice – Seafood product manufacturers B&O tax exemptions extended – Change in filing requirements; RCW 82.04.4266; RCW 82.04.4268; RCW 82.04.4269
Exemption expired July 1, 2017
From October 1, 2013 through June 30, 2017 restaurants could take a sales tax exemption for purchases of the following items:
- Items used to flavor food that are completely or substantially consumed by combustion during the cooking process (e.g. wood chips, charcoal, charcoal briquettes, grape vines, etc.).
- Items comprised entirely of wood that support the food during the cooking process (e.g. cedar, maple or alder grilling planks)
For more information please see our Special Notice.
Freight and delivery costs incurred by a Washington manufacturer for out-of-state shipments. WAC 458-20-112
Amounts paid out or value of merchandise given as prizes in games of chance. WAC 458-20-131
An exemption from retail sales and use tax is provided to manufacturers and processors for hire on purchases of gases and chemicals used to produce semiconductor materials. Manufacturers of silicon solar wafers, silicon solar cells, thin film solar devices, solar grade silicon, or compound semiconductor solar wafers also qualify for this exemption. RCW 82.08.9651; RCW 82.12.9651; WAC 458-20-267
Deduction expired Jan. 1, 2020
This deduction is only available to a behavior health organization (BHO) or to health or social welfare organizations.
- BHOs may deduct amounts received from the state for distribution to a health or social welfare organization for mental health or chemical dependency services provided under a government-funded program.
- Health or social welfare organizations may deduct amounts received as compensation for mental health or chemical dependency services provided under a government-funded program.
- The deduction for mental health services is for amounts received on or after Aug. 1, 2011 and expired Jan. 1, 2020. The deduction for chemical dependency services is for amounts received on or after Apr. 1, 2016 and expired Jan. 1, 2020. Taxpayers claiming this deduction must file an Annual Tax Performance Report with the Department of Revenue. The report must be submitted by May 31 of each year. This tax preference is subject to public disclosure 24 months after it was claimed. Update: Chemical Dependency Services Added to B&O Tax Deduction for Providing Mental Health Services under a Government Funded Program.
Retail Sales and Use Tax is exempt on the purchase of hog fuel used to produce electricity, steam, heat, or biofuel. "Hog fuel" is defined as wood waste and other wood residuals including forest-derived biomass. Hog fuel does not include firewood or wood pellets. Special Notice - Sales/Use Tax Exemption on Purchases of Hog Fuel Extended; Annual Tax Performance Report required
Interest received on investments or loans primarily secured by first mortgages or trust deeds on nontransient residential properties. Interest received on obligations of the state of Washington, its political subdivisions, and municipal corporations. Interest received on direct obligations of the federal government. (Interest attributable to loans or other financial obligations on which the federal government is merely a guarantor or insurer does not qualify.) WAC 458-20-146; WAC 458-20-14601
This deduction only applies to sales of motor vehicles, campers, trailers, watercraft, farm machinery, and vessels. To claim the deduction, you must retain the appropriate sales tax exemption certificate for the type of property you sell.
Note: Sales of other tangible personal property is no longer exempt at the point of sale. Please see the Sales tax exemption for nonresidents information.
Nonprofit cooperative finance organizations may deduct income received from loans to rural electric cooperatives or other nonprofit or governmental utility service providers from the B&O tax. This tax preference is subject to public disclosure 24 months after it was claimed. RCW 82.04.43394
Goods sold and delivered to customers outside of Washington or transportation of persons or goods across state or international boundaries. Documentation is necessary. Note: Manufacturers and extractors who sell outside of Washington must report under manufacturing , or extracting classifications ; this deduction is not valid for those classifications. WAC 458-20-193; 458-20-193C
Sales of large private airplanes to nonresidents are exempt from retail sales and use tax when the airplanes are not required to be registered with the department of transportation under Chapter 47.68 RCW. The exemption also applies to charges made for repairing, cleaning, altering or improving large private airplanes owned by nonresidents. This tax preference is subject to public disclosure 24 months after it was claimed. RCW 82.08.215; RCW 82.12.215
This deduction is available to distributors and manufacturers of natural gas sold in a liquefied state. This gas must be used as transportation fuel for motor vehicles, vessels, or locomotive or railroad cars. Special Notice – Compressed Natural Gas and Liquefied Natural Gas Used a Transportation Fuel; RCW 82.16.310. Exemption form for purchasing CNG or LNG for transportation fuel use.
This applies only to those light and power businesses with retail power rates exceeding the state average power rates. RCW 82.16.053
You may take a business and occupation (B&O) tax deduction for Medicaid Quality Improvement Program Incentive Payments if you are one of the following:
- a managed care organization as defined in RCW 74.60.010
- a hospital owned by a municipal corporation or political subdivision
- a hospital affiliated with a state institution
Starting July 1, 2016, a retail sales tax exemption is allowed for sales of high-CBD compliant marijuana products by marijuana retailers with a medical endorsement to all consumers. Special Notice - Sales and Use Tax Exemptions for Marijuana Retailers with a Medical Endorsement
Medical Endorsed Retailer – Sales of Marijuana and Low-THC Products to Patients with Recognition Cards
Starting July 1, 2016, a retail sales tax exemption is allowed for sales of certain marijuana and low-THC products by marijuana retailers with a medical endorsement to qualifying patients and designated providers with recognition cards. Special Notice - Sales and Use Tax Exemptions for Marijuana Retailers with a Medical Endorsement
Sales of gasoline, diesel, and other fuels. Note: Only sellers of fuel may take this deduction. WAC 458-20-126
The selling price of motor vehicle fuel includes state and federal fuel taxes. B&O tax does not apply to these taxes. This deduction allows the wholesaler or retailer to exclude fuel taxes. Note: Only sellers of fuel may take this deduction. See Motor vehicle fuel tax rates. WAC 458-20-126
Sales of newspapers are not subject to sales tax. This does not include publications that are bound and/or stapled. WAC 458-20-143
Sales made in Washington by an out-of-state seller without activities in Washington, which establish, maintain or facilitate a market for its products or services. This also includes sales of consumer products made to or through a direct seller's representative. WAC 458-20-193; 458-20-246
Most allowable deductions are listed on the Deduction Detail sheet. Your business, however, may have a specific deduction allowed by law that is not listed. Please refer to the statute governing your type of business, or call your local Revenue office to ensure the deduction is valid. Invalid deductions will be disallowed. Use of the Other deduction line requires appropriate documentation or explanation. A 'resale' deduction is not valid under retail sales tax. Report amounts sold for resale under the wholesaling classification of the B&O tax. Also, there are no deductions for labor, materials, or any other costs of doing business.
A qualified employer of record (paymaster) that provides payroll and related human resources services for an affiliated business may take a deduction from gross income for amounts received to cover employee costs of a qualified employee. A qualified employer of record or paymaster is a person who:
- Has no functional employment relationship with a qualified employee; and
- Has no contractual liability with a qualified employee for the employee costs.
A qualified employer of record may have statutory or common law liability to the qualified employees or to third parties for employee costs.
A qualified employer of record must be under common control with the affiliated business. "Common control" means the possession, directly or indirectly, of more than fifty percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise. This tax preference is subject to public disclosure 24 months after it was claimed. Special Notice - Paymaster Deduction
Sales of the above items for human use are exempt from sales tax when the buyer presents a prescription. WAC 458-20-18801
Sales of prescription drugs by religious or charitable nonprofit organizations operating kidney dialysis facilities, certain nursing homes, and homes for unwed mothers. WAC 458-20-168
Mint grower purchases of liquid propane and natural gas used to distill mint on a farm are exempt from sales and use tax. This tax preference is subject to public disclosure 24 months after it was claimed. Special Notice - Sales of Propane and Natural Gas to Mint Growers; RCW 82.08.220; RCW 82.12.220; WAC 458-20-210
Sales of purebred livestock for breeding purposes where the animals are registered with a nationally recognized breed association. Sellers must receive and retain an exemption certificate from the buyer. See the Farmers' Certificate for Wholesale Purchases and Sales Tax Exemption. WAC 458-20-210
Deduction expired Jun. 30, 2019
Sales of tangible personal property for use outside of Washington by residents of: Alaska, American Samoa, Alberta, Colorado, Delaware, Montana, New Hampshire, Northwest Territories, Nunavut, Oregon, and Yukon Territory. Tax exempt sales to these residents are at the discretion of the seller. Note: When making tax exempt sales, the seller must see photo identification, such as a driver's license, issued by the buyer's state of residence. The seller must also record certain information. This exemption only applies to sales of goods which will not be used in Washington. It does not apply to lodging, restaurant meals, or other sales which involve consumption in Washington. See Excise Tax Advisory (ETA) 3054.2011.
A business and occupation (B&O) tax exemption is available to qualifying
- blood banks
- tissue banks, and
- blood and tissue banks
for amounts they receive that are exempt from federal income tax. (RCW 82.04.324)
There is a deduction available to you on certain fees (Chapter 43.200 RCW, RCW 82.04.260, RCW 43.145.010) Note: Only select taxpayers who report income under the Radioactive Waste Disposal B&O tax classification use this deduction.
Network, national, or regional advertising income received by an individual broadcasting station. WAC 458-20-241
Special Notice - Change to the advertising deduction for radio and television broadcasting
Municipalities and businesses operating with permits filed with the Department of Ecology for reclaimed water may deduct 75 percent of their gross income. (ESHB 1832, Chapter 237, Laws of 2001)
Marketplace sellers may claim a retail sales tax deduction for sales where a marketplace facilitator collects and pays Washington sales tax on their behalf. Marketplace sellers owe retailing B&O tax on these sales. See Marketplace sellers.
Eligible farmers may purchase replacement parts for farm machinery and equipment without paying retail sales tax, starting July 1, 2006. Before claiming the exemption, farmers must apply to the Department of Revenue for an exemption certificate. Purchases made before July 1, 2006 are subject to sales or use tax. (Substitute House Bill (SHB) 2457, Chapter 172, Laws of 2006). See Updated Special Notice - Replacement Parts for Farm Machinery and Equipment - Sales and Use Tax Exemption.
This is a deduction for tobacco products that are destroyed or returned to the manufacturer, on which the tax was previously paid.
Amount of the sales price on which sales tax has been returned or credited to the purchaser. WAC 458-20-108
Sales of passenger motor vehicles which are to be used as ride-sharing vehicles. RCW 82.08.0287
For sale or lease of a qualifying new or used clean alternative fuel, and plug-in hybrid vehicle. Special Notice - New clean alternative fuel and plug-In hybrid vehicle sales/use tax exemptions Note: An additional addendum is required when taking this deduction.
Sales of add-on automotive adaptive equipment prescribed by a physician to a disabled veteran or a disabled member of the armed forces are exempt from retail sales tax and/or use tax. Labor and services charges incurred for installing and repairing the equipment is also exempt from retail sales and/or use tax. For more information, see Special Notice - Sales of Automotive Adaptive Equipment to Disabled Veterans.
A retail sales and use tax deduction is allowed on purchases of computer hardware, software, and computer peripherals, and charges for labor and services related to the installation of such equipment. The exemption is only available to manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, certificated FAR repair stations making retail sales, and aerospace tooling manufacturers. Special Notice for Manufacturers; Special Notice for Non-manufacturers; Special Notice for FAR Repair Stations; RCW 82.08.975; RCW 82.12.975
Retail sales tax does not apply to charges of labor and services provided during building construction by:
- a manufacturer who builds commercial airplanes, wings or fuselages, or
- a port district, political subdivision, or municipal corporation who is leasing to a manufacturer who builds commercial airplanes, wings or fuselages.
The sales tax exemption applies to:
- sales of tangible personal property used as a component during building construction, and
- charges made for labor and services, provided during general construction, that are not otherwise eligible for the Manufacturers Machinery and Equipment Sales Tax exemption.
The business must provide the seller with a completed exemption certificate. Special Notice – New and Extended Aerospace Tax Preferences.
Sales to qualifying businesses and to qualifying tenants of eligible server equipment to be installed, without intervening use, in an eligible computer data center, and to charges made for labor and services rendered in respect to installing eligible server equipment. The exemption also applies to sales to qualifying businesses and to qualifying tenants of eligible power infrastructure, including labor and services rendered in respect to constructing, installing, repairing, altering, or improving eligible power infrastructure. RCW 82.08.986; Special Notice - Tax Exemptions Extended for Certain Purchases by Eligible Data Centers and Their Tenants.
A deduction from retail sales and use tax for the purchase of feed used by an eligible apiarist in the raising of a bee colony used to make honey products. See Special Notice - Tax Exemptions for Honey Beekeepers for more information.
A retail sales and use tax deduction for the sales of bees to an eligible apiarist. To document the exempt purchases, the eligible apiarist (buyer) must provide the seller a properly completed Buyer's Retails Sales Tax Exemption Certificate at the time of purchase. For more information, see our Special Notice - Tax Exemptions for Honey Beekeepers.
Starting July 1, 2016, sales and donations of topical, nondigestible low-THC products by certain health care professionals to qualifying patients are exempt from sales tax. See Special Notice - Sales and use tax exemptions for certain low-THC products from health care professionals.
Sales and leases of machinery and equipment, including repair and replacement parts with a useful life in excess of one year, to manufacturers and processors for hire for direct use in manufacturing operations. This exemption includes charges for installation, labor and services. Sellers must obtain a Manufacturer's Sales and Use Tax Exemption Certificate for Manufacturing Machinery and Equipment from the buyer. WAC 458-20-13601
For sales of new battery-powered electric marine propulsion systems with continuous power greater than 15 kW and new vessels equipped with battery-powered electric marine propulsion systems with continuous power greater than 15 kW. For more information see Special Notice: New electric vessel and marine propulsion system tax exemption.
A retail sales and use tax deduction is allowed for the purchase of machinery and equipment used by certain facilities to generate electricity or produce thermal heat.
The general retail sales tax imposed under RCW 82.08.020 does not apply to the sale of spirits in their original container. RCW 82.08.150(8)
This deduction is limited to the sale of spirits in their original container. This is not a valid deduction for sales of poured drinks containing spirits for on-premises consumption. Poured drink spirits sales are subject to the retail sales tax under RCW 82.08.020.
The amount reported under this deduction classification should not be included in other Retail Sales tax deductions.
For sales and installation of batteries/fuel cells for electric vehicles, installation of battery/fuel cell electric vehicle infrastructure (including renewable hydrogen production facilities and hydrogen fueling stations), tangible personal property that will become a component of battery/fuel cell electric vehicle infrastructure during the course of installing, constructing, repairing, or improving, and the sale of zero emission buses. RCW 82.08.816 and RCW 82.12.816; Special Notice - Tax exemptions on electric vehicle infrastructure, electric vehicle batteries and fuel cells, and zero emissions buses
For the sale of power to an Electrolytic Processor. An Electrolytic Processor is a person who is engaged in a business that uses more than ten average megawatts of electricity per month in a chlor-alkali electrolytic process to split the electrochemical bonds of sodium chloride and water to make chlorine and sodium hydroxide. Does not include direct service industrial customers or their subsidiaries that contract for the purchase of power from the Bonneville power administration. RCW 82.16.0421.
Purchases of art objects or property by artistic or cultural organizations for use in displaying art objects or providing exhibitions are exempt from sales tax. The seller must obtain a Buyers Retail Sales Tax Exemption Certificate from the buyer. WAC 458-20-249
Sales delivered on Indian reservations or trust lands to an enrolled member of that tribe. Every member of a recognized tribe has an enrollment document. A seller making a tax exempt sale to a Native American must copy the information. Records must show that the seller, its employees, or a for-hire carrier acting as the vendor's agent, delivered the goods to, or performed services on, the reservation or trust land of the tribe in which the purchaser is enrolled. Copies should be kept by the seller. WAC 458-20-192; Retail sales tax exemption form: Tax Exemption for Sales to Tribes.
Persons who collect the refuse collection tax and who, themselves, use the services of others for the transfer, storage, or disposal of the waste collected are not required to again pay the tax to such other service providers. The refuse collection business must provide the other refuse service provider with a refuse collector's exemption certificate. WAC 458-20-250
Nonprofit blood and tissue banks are exempt from retail sales and use tax on purchases of medical supplies, chemicals and materials. However, the exemption does not extend to construction materials, office equipment and supplies, or vehicles. RCW 82.08.02805; RCW 82.12.02747
Sales of tangible personal property or labor to repair or install tangible personal property for the U.S. Government, its institutions, departments, and industries. WAC 458-20-190; WAC 458-20-250; Special Notice - How to document your United States government credit card purchases
This exemption applies to sales of, or labor and services rendered in repairing, cleaning, altering, or improving large private airplanes owned by nonresidents of this state. RCW 82.08.215
Amounts received as scan-down allowances on food and food ingredients for human and pet consumption when no additional services (for example advertising or product placement) are required.
Small Harvesters may deduct up to one hundred thousand dollars per tax year from their gross receipts or value of products proceeding or accruing from timber harvested. Amounts above the one hundred thousand dollars remain subject to B&O tax. This deduction is allowed under the Extracting Timber B&O and Wholesaling of Timber or Wood Products B&O tax classifications, under the Small Harvester. RCW 84.33.035, and WAC 458-20-13501.
Qualifying international investment management service companies (IIMS) are exempt from sales and use taxes when they purchase or use standard financial information. The purchases are exempt regardless of how the information is transmitted to the buyer:
- digital download,
- over the Internet, or
- tangible media such as a disc or via paper.
A buyer may claim the exemption on no more than $15 million in purchases per calendar year. This tax preference is subject to public disclosure 24 months after it was claimed. Special Notice - Taxation of international investment management companies; RCW 82.08.207; RCW 82.12.207; WAC 458-20-15503
Used to "back out" the amount of retail sales tax included in the gross amount reported on Retailing  and Retail Sales  only if the gross amount includes retail sales tax.
Amount on which sales tax was previously paid on goods purchased for resale without intervening use. WAC 458-20-102
Sales tax does not apply to the value of property traded in on the purchase of property of the same kind. B&O tax does apply to that value. WAC 458-20-247
Starting July 1, 2019, B&O tax does not apply to a hospital doing business in this state that meets all three of the following requirements:
- It is a “hospital” as defined under chapter 70.41 RCW.
- It is owned by a county with a population greater than two million.
- It is managed by a state university.
This exemption expires Jan. 1, 2030. (SHB 2168, Chapter 451, Laws of 2019)
Marketplace sellers may claim a retail sales tax deduction for sales where they (or a marketplace facilitator) will notify their customers of Washington’s use tax reporting requirements. Marketplace sellers owe retailing B&O tax on these sales. See use tax notice and reporting penalties.
Sales of wax or ceramic materials used to create molds consumed during the process of creating ferrous and nonferrous investment castings used in industrial applications are exempt from retail sales and use tax. Labor and services used to create patterns and shells used as molds also qualify. Special Notice - Sales Tax Exemption for Investment Casting Process; RCW 82.08.983; RCW 82.12.983