Skip to main content
Manufacturing – definition
A manufacturer is anyone who makes products for sale or commercial or industrial use, using their own materials or ingredients, either by doing the work themselves or hiring others.
Manufacturer does not include:
TPS
Investment casting
Investment casting is a foundry process where a mold (or investment) is made by applying multiple layers of ceramic material to a wax shell. Once the ceramic hardens, the mold is heated to melt and drain the wax, leaving behind a hollow ceramic shell.
Retail sales and use tax do not apply to either of the following when they are for use in industrial applications:
General manufacturing
Manufacturing
Persons that manufacture products in this state are generally taxable under the Manufacturing business and occupation (B&O) tax classification on the value of the products, including by-products.
Selling
Manufacturers must also report their sales under the Wholesaling B&O or Retailing B&O and Retail Sales tax classifications.
Freight on out-of-state deliveries
Manufacturers may take a deduction from the manufacturing business and occupation (B&O) tax for the actual cost of delivering manufactured products to customers outside of Washington. The manufacturer is not required to invoice or bill the customer for delivery. However, any amounts invoiced or billed to the customer are part of gross income and must be reported. The manufacturer must be able to show that the amount deducted is the actual cost of delivering the products.
The manufacturer will:
Extracting and manufacturing activities
Logging
Extracting: Felling, cutting (severing), or taking of trees are extracting activities. The Extracting business and occupation (B&O) tax applies to the value of the products, which is the value of the severed trees prior to any cutting, delimbing, or other manufacturing activity.
Special event promoter’s requirements
If you promote special events, you are required to make a “good faith effort” to verify your vendors have an active registration with the Department of Revenue.
Who is an event promoter?
An event promoter is a person who organizes, operates, or sponsors a special event and who contracts with participating vendors.
A person is not a promoter if they only provide a venue, supplies, furnishings, fixtures, equipment, or services for a special event but do not organize, operate, or sponsor it.
Join the free tax workshop Dec. 11 in Kent
OLYMPIA, Wash. –– Dec. 5, 2024 –– Are you new to owning a business or confused about your state tax responsibilities as a business owner?
The Washington State Department of Revenue is offering a free in-person tax workshop Dec. 11 in Kent. During this workshop, you will have the opportunity to learn about Washington excise taxes, reporting classifications, deductions, sales tax collections and recordkeeping requirements. You can also ask questions about taxes that apply specifically to your business.
Retail sales increase slightly in first-quarter 2024
OLYMPIA, Wash. – Aug. 22, 2024 –– First-quarter 2024 taxable retail sales saw a small increase of 0.3% across the state over the first quarter of 2023, reaching $52.9 billion.
Free tax workshop Aug. 21 in Vancouver
OLYMPIA, Wash. – Aug. 19, 2024 – Are you new to owning a business or confused about your state tax responsibilities as a business owner?
Join the Washington State Department of Revenue for a free in-person tax workshop Aug. 21 in Vancouver. You will have the opportunity to learn about Washington excise taxes, reporting classifications, deductions, sales tax collections and recordkeeping requirements. You can also ask questions about taxes that apply specifically to your business.
Business Tax Basics - Kent
Attend a free tax workshop to learn about your tax reporting responsibilities. We will discuss tax classifications, deductions, sales tax collection, and recordkeeping requirements. You'll also have the opportunity to ask questions about taxes that apply specifically to your business.
