Basically, you can take a credit against the Manufacturing B&O tax in an amount equal to the Wholesaling or Retailing B&O tax due on the selling activity. However, you may be entitled to the Multiple Activities Tax Credit (MATC). The Manufacturing B&O tax rate is 0.484 percent (0.00484) of your gross receipts.įor products manufactured and sold in Washington, a business owner is subject to both the Manufacturing B&O Tax and the Wholesaling or Retailing B&O Tax. The tax amount is based on the value of the manufactured products or by-products. This tax classification applies if you manufacture products in Washington, whether for your own use or for sale (as tangible property) to another person. You can sell a portion of your supply at wholesale if the business owner gives you a reseller permit. Keep the reseller permit in your records for five years.Įxample: A private mailbox business runs out of shipping boxes (packaging). If you are selling items at wholesale you must receive a reseller permit from the buyer. The Wholesaling B&O tax rate is 0.484 percent (0.00484) of your gross receipts. You need to report the income of such sales under this classification. This tax classification applies to you if there are sales of goods and certain services to a person who will resell to others.
To see a more specific list of activities and tangible items that apply to this tax classification, visit the Retail Sales Tax section. In addition, retail sales tax must also be collected on all sales subject to the retailing classification of the B&O tax, unless a specific retail sales tax deduction or exemption applies. The Retailing B&O tax rate is 0.471 percent (.00471) of your gross receipts. This tax classification applies to you if there are sales (or rental) of goods and certain services to customers.
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