There are limited deductions from the B&O tax and public utility tax. There are no deductions for amounts paid to the worker, amounts deducted for payroll taxes, or any other expenses paid or accrued. See Deductions for more information.
The burden to establish the proper B&O tax classification rests with the staffing business. Because the classification depends upon the services provided by the worker, the staffing company must obtain sufficient information from the customer to classify the income correctly.
A person who is enrolled with the tribe upon whose territory an activity is taking place.
The spouse of a tribal member, if the treatment of Washington Administrative Code (WAC) 458-20-192 does not conflict with tribal law, is a tribal member.
Following is a discussion of specific applications of the B&O tax for a variety of industries. Please also refer to the web site information contained in these discussions. In addition, you may refer to the "decision trees" that may be helpful in identifying the correct reporting classification for various industries.
A seller is required to maintain appropriate records on the tax-exempt status of applicable business transactions. The seller must obtain a completed Tax Exemption for Sales to Tribes from the buyer.
Generally, the state may not tax Indians or Indian tribes in Indian country. The term "Indian" includes only those persons, and qualifying spouses, who are enrolled with the tribe upon whose territory the activity takes place and does not include Indians who are members of other tribes.
If the tax falls on an Indian or a tribe, the tax is not imposed if the activity takes place in Indian country or the activity is treaty fishing rights-related activity.
Retail sales tax: Retail sales tax does not apply to the construction charges of a prime contractor to a tribe or enrolled member when the construction is performed in Indian country. In the case of construction that is performed both in and outside Indian country, only the portion of the contract that relates to work done in Indian country is excluded from tax.
With the exception of treaty fishery activity, Indians conducting business outside of Indian country are generally subject to the excise tax, including the business and occupation (B&O) tax, the public utility tax, and retail sales tax.
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