Generally, commercial fishing operations must pay retail sales or use tax on purchases of watercraft, component parts, and repairs. Use tax applies when sales tax was not paid at the time of purchase.
Retail sales tax and use tax do not apply to sales of the following when primarily used in conducting commercial deep sea fishing operations:
Consumables are goods purchased for use during the normal course of business. Commercial fishers must pay retail sales or use tax on all equipment and supplies unless a specific exemption applies. This includes but is not limited to, bait, bedding, table and kitchen wares, fishing nets, hooks, lines, floats, hand tools, ice, fuel, and lubricants.
Use tax applies when retail sales tax was not paid at the time of purchase.
Income from catching fish in Washington waters (within the three-mile limit) is subject to business and occupation (B&O) tax under the Extracting classification. The taxable amount is based on the value of the fish, which is usually the selling price. Persons performing extracting activities for other extractors are subject to the Extracting for Hire B&O tax upon their gross income from those services.
Your income from sales of fish to resellers in Washington is subject to business and occupation (B&O) tax under the Wholesaling classification when the buyer provides a valid reseller permit. You do not have to collect retail sales tax on wholesale sales.
You must keep copies of reseller permits for five years.
Sales made directly to the United States government are exempt from retail sales and lodging taxes. However, sales made to employees or representatives of the federal government (including members of the military) are not exempt, even if they will receive reimbursement from the federal government.
To qualify for an exemption, the purchase must be made with one of the following payment types:
Intended audience: Main street organizations.
Beginning Oct. 1, 2024, individual Main Street Organizations that reach the usual $160,000 per organization credit cap for contributions made, can exceed that cap in the fourth quarter of the year if credits are remaining under the $5 million statewide cap. The total credits allowed are on a first-come basis and may not exceed $250,000 annually for each Main Street Organization.
Intended audience: Child care providers.
Effective Oct. 1, 2024, there is a new business and occupation (B&O) tax exemption for certain child care services. This exemption expires Dec. 31, 2034.
Businesses primarily (more than 50%) engaged in providing child care.
Amounts received for providing care and supervision for a period of less than 24 hours to children that are either:
Intended audience: Manufacturers and processors for hire of semiconductor materials.
Effective April 1, 2024, the following existing tax preferences for the semiconductor industry are extended:
These tax preferences were previously set to expire Dec. 1, 2028.
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