RCW 82.04.260
Tax on manufacturers and processors of various foods and by-products
—
Research and development organizations
—
Travel agents
—
Certain international activities
—
Stevedoring and associated activities
—
Low-level waste disposers
—
Insurance producers, surplus line brokers, and title insurance agents
—
Hospitals
—
Commercial airplane activities
—
Timber product activities
—
Canned salmon processors.
(Effective until January 1, 2026.)
(1) Upon every person engaging within this state in the business of manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business is equal to the value of the flour, pearl barley, oil, canola meal, or canola by-product manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2035, seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; or selling manufactured seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing, to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales, multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state;
(c)(i) Except as provided otherwise in (c)(iii) of this subsection, beginning July 1, 2035, until January 1, 2046, dairy products; or selling dairy products that the person has manufactured to purchasers who either transport in the ordinary course of business the goods out of state or purchasers who use such dairy products as an ingredient or component in the manufacturing of a dairy product; as to such persons the tax imposed is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state or sold to a manufacturer for use as an ingredient or component in the manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products" means:
(A) Products, not including any cannabis-infused product, that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including by-products from the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than 70 percent dairy products that qualify under (c)(ii)(A) of this subsection, measured by weight or volume.
(iii) The preferential tax rate provided to taxpayers under this subsection (1)(c) does not apply to sales of dairy products on or after July 1, 2023, where a dairy product is used by the purchaser as an ingredient or component in the manufacturing in Washington of a dairy product;
(d)(i) Beginning July 1, 2035, fruits or vegetables by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables, or selling at wholesale fruits or vegetables manufactured by the seller by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables and sold to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state.
(ii) For purposes of this subsection (1)(d), "fruits" and "vegetables" do not include cannabis, useable cannabis, or cannabis-infused products; and
(e) Wood biomass fuel; as to such persons the amount of tax with respect to the business is equal to the value of wood biomass fuel manufactured, multiplied by the rate of 0.138 percent. For the purposes of this section, "wood biomass fuel" means a liquid or gaseous fuel that is produced from lignocellulosic feedstocks, including wood, forest, or field residue and dedicated energy crops, and that does not include wood treated with chemical preservations such as creosote, pentachlorophenol, or copper-chrome-arsenic.
(2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business is equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed is equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.
(5)(a) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was $250,000 or less; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(b) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was more than $250,000; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent through June 30, 2019, and 0.9 percent beginning July 1, 2019.
(6) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business is equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection are exempt from payment of taxes imposed by chapter
82.16
RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.
(8)(a) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 70A.380.010
; as to such persons the amount of the tax with respect to such business is equal to the gross income of the business, excluding any fees imposed under chapter
70A.384
RCW, multiplied by the rate of 3.3 percent.
(b) If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state must be determined in accordance with the methods of apportionment required under RCW 82.04.460
.
(9) Upon every person engaging within this state as an insurance producer or title insurance agent licensed under chapter
48.17
RCW or a surplus line broker licensed under chapter
48.15
RCW; as to such persons, the amount of the tax with respect to such licensed activities is equal to the gross income of such business multiplied by the rate of 0.484 percent.
(10) Upon every person engaging within this state in business as a hospital, as defined in chapter
70.41
RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities is equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter.
(11)(a) Beginning October 1, 2005, upon every person engaging within this state in the business of manufacturing commercial airplanes, or components of such airplanes, or making sales, at retail or wholesale, of commercial airplanes or components of such airplanes, manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007;
(ii) 0.2904 percent beginning July 1, 2007, through March 31, 2020; and
(iii) Beginning April 1, 2020, 0.484 percent, subject to any reduction required under (e) of this subsection (11). The tax rate in this subsection (11)(a)(iii) applies to all business activities described in this subsection (11)(a).
(b) Beginning July 1, 2008, upon every person who is not eligible to report under the provisions of (a) of this subsection (11) and is engaging within this state in the business of manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes, or making sales, at retail or wholesale, of such tooling manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of:
(i) 0.2904 percent through March 31, 2020; and
(ii) Beginning April 1, 2020, the following rates, which are subject to any reduction required under (e) of this subsection (11):
(A) The rate under RCW 82.04.250
(1) on the business of making retail sales of tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes; and
(B) 0.484 percent on all other business activities described in this subsection (11)(b).
(c) For the purposes of this subsection (11), "commercial airplane" and "component" have the same meanings as provided in RCW 82.32.550
.
(d)(i) In addition to all other requirements under this title, a person reporting under the tax rate provided in this subsection (11) must file a complete annual tax performance report with the department under RCW 82.32.534
. However, this requirement does not apply to persons reporting under the tax rate in (a)(iii) of this subsection (11), so long as that rate remains 0.484 percent, or under any of the tax rates in (b)(ii)(A) and (B) of this subsection (11), so long as those tax rates remain the rate imposed pursuant to RCW 82.04.250
(1) and 0.484 percent, respectively.
(ii) Nothing in (d)(i) of this subsection (11) may be construed as affecting the obligation of a person reporting under a tax rate provided in this subsection (11) to file a complete annual tax performance report with the department under RCW 82.32.534
: (A) Pursuant to another provision of this title as a result of claiming a tax credit or exemption; or (B) pursuant to (d)(i) of this subsection (11) as a result of claiming the tax rates in (a)(ii) or (b)(i) of this subsection (11) for periods ending before April 1, 2020.
(e)(i) After March 31, 2021, the tax rates under (a)(iii) and (b)(ii) of this subsection (11) must be reduced to 0.357 percent provided the conditions in RCW 82.04.2602
are met. The effective date of the rates authorized under this subsection (11)(e) must occur on the first day of the next calendar quarter that is at least 60 days after the department receives the last of the two written notices pursuant to RCW 82.04.2602
(3) and (4).
(ii) Both a significant commercial airplane manufacturer separately and the rest of the aerospace industry as a whole, receiving the rate of 0.357 percent under this subsection (11)(e) are subject to the aerospace apprenticeship utilization rates required under RCW 49.04.220
by April 1, 2026, or five years after the effective date of the 0.357 percent rate authorized under this subsection (11)(e), whichever is later, as determined by the department of labor and industries.
(iii) The provisions of RCW 82.32.805
and
82.32.808
do not apply to this subsection (11)(e).
(f)(i) Except as provided in (f)(ii) of this subsection (11), this subsection (11) does not apply on and after July 1, 2040.
(ii) With respect to the manufacturing of commercial airplanes or making sales, at retail or wholesale, of commercial airplanes, this subsection (11) does not apply on and after July 1st of the year in which the department makes a determination that any final assembly or wing assembly of any version or variant of a commercial airplane that is the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
has been sited outside the state of Washington. This subsection (11)(f)(ii) only applies to the manufacturing or sale of commercial airplanes that are the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
. This subsection (11)(f)(ii) continues to apply during the time that a person is subject to the tax rate in (a)(iii) of this subsection (11).
(g) For the purposes of this subsection, "a significant commercial airplane manufacturer" means a manufacturer of commercial airplanes with at least 50,000 full-time employees in Washington as of January 1, 2021.
(12)(a) Until July 1, 2045, upon every person engaging within this state in the business of extracting timber or extracting for hire timber; as to such persons the amount of tax with respect to the business is, in the case of extractors, equal to the value of products, including by-products, extracted, or in the case of extractors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(b) Until July 1, 2045, upon every person engaging within this state in the business of manufacturing or processing for hire: (i) Timber into timber products or wood products; (ii) timber products into other timber products or wood products; or (iii) products defined in RCW 19.27.570
(1); as to such persons the amount of the tax with respect to the business is, in the case of manufacturers, equal to the value of products, including by-products, manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(c) Until July 1, 2045, upon every person engaging within this state in the business of selling at wholesale: (i) Timber extracted by that person; (ii) timber products manufactured by that person from timber or other timber products; (iii) wood products manufactured by that person from timber or timber products; or (iv) products defined in RCW 19.27.570
(1) manufactured by that person; as to such persons the amount of the tax with respect to the business is equal to the gross proceeds of sales of the timber, timber products, wood products, or products defined in RCW 19.27.570
(1) multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(d) Until July 1, 2045, upon every person engaging within this state in the business of selling standing timber; as to such persons the amount of the tax with respect to the business is equal to the gross income of the business multiplied by the rate of 0.2904 percent. For purposes of this subsection (12)(d), "selling standing timber" means the sale of timber apart from the land, where the buyer is required to sever the timber within 30 months from the date of the original contract, regardless of the method of payment for the timber and whether title to the timber transfers before, upon, or after severance.
(e) For purposes of this subsection, the following definitions apply:
(i) "Biocomposite surface products" means surface material products containing, by weight or volume, more than 50 percent recycled paper and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven cellulosic fibers held together largely by hydrogen bonding. "Paper and paper products" includes newsprint; office, printing, fine, and pressure-sensitive papers; paper napkins, towels, and toilet tissue; kraft bag, construction, and other kraft industrial papers; paperboard, liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and related types of cellulosic products containing primarily, by weight or volume, cellulosic materials. "Paper and paper products" does not include books, newspapers, magazines, periodicals, and other printed publications, advertising materials, calendars, and similar types of printed materials.
(iii) "Recycled paper" means paper and paper products having 50 percent or more of their fiber content that comes from postconsumer waste. For purposes of this subsection (12)(e)(iii), "postconsumer waste" means a finished material that would normally be disposed of as solid waste, having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or publicly owned land. "Timber" does not include Christmas trees that are cultivated by agricultural methods or short-rotation hardwoods as defined in RCW 84.33.035
.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products obtained wholly from the processing of timber, short-rotation hardwoods as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional lumber; engineered wood products such as particleboard, oriented strand board, medium density fiberboard, and plywood; wood doors; wood windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a person reporting under the tax rate provided in this subsection (12) must file a complete annual tax performance report with the department under RCW 82.32.534
.
(g) Nothing in this subsection (12) may be construed to affect the taxation of any activity defined as a retail sale in RCW 82.04.050
(2) (b) or (c), defined as a wholesale sale in RCW 82.04.060
(2), or taxed under RCW 82.04.280
(1)(g).
(13) Upon every person engaging within this state in inspecting, testing, labeling, and storing canned salmon owned by another person, as to such persons, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.
[
2023 c 422 s 5
;
2023 c 286 s 3
;
2022 c 16 s 140
;
2021 c 145 s 7
;
2020 c 165 s 3
. Prior:
2019 c 425 s 1
;
2019 c 336 s 4
;
2018 c 164 s 3
;
2017 c 135 s 11
; prior:
2015 3rd sp.s. c 6 s 602
;
2015 3rd sp.s. c 6 s 205
; prior:
2014 c 140 s 6
; (2014 c 140 s 5 expired July 1, 2015);
2014 c 140 s 4
; (2014 c 140 s 3 expired July 1, 2015);
2013 3rd sp.s. c 2 s 6
; (2013 3rd sp.s. c 2 s 5 expired July 1, 2015);
2013 2nd sp.s. c 13 s 203
; (2013 2nd sp.s. c 13 s 202 expired July 1, 2015); prior: (2012 2nd sp.s. c 6 s 602 expired July 1, 2015);
2012 2nd sp.s. c 6 s 204
;
2011 c 2 s 203
(Initiative Measure No. 1107, approved November 2, 2010);
2010 1st sp.s. c 23 s 506
; (2010 1st sp.s. c 23 s 505 expired June 10, 2010);
2010 c 114 s 107
; prior:
2009 c 479 s 64
;
2009 c 461 s 1
;
2009 c 162 s 34
; prior:
2008 c 296 s 1
;
2008 c 217 s 100
;
2008 c 81 s 4
; prior:
2007 c 54 s 6
;
2007 c 48 s 2
; prior:
2006 c 354 s 4
;
2006 c 300 s 1
; prior:
2005 c 513 s 2
;
2005 c 443 s 4
; prior:
2003 2nd sp.s. c 1 s 4
;
2003 2nd sp.s. c 1 s 3
;
2003 c 339 s 11
;
2003 c 261 s 11
;
2001 2nd sp.s. c 25 s 2
; prior:
1998 c 312 s 5
;
1998 c 311 s 2
; prior:
1998 c 170 s 4
;
1996 c 148 s 2
;
1996 c 115 s 1
; prior:
1995 2nd sp.s. c 12 s 1
;
1995 2nd sp.s. c 6 s 1
;
1993 sp.s. c 25 s 104
;
1993 c 492 s 304
;
1991 c 272 s 15
;
1990 c 21 s 2
;
1987 c 139 s 1
; prior:
1985 c 471 s 1
;
1985 c 135 s 2
;
1983 2nd ex.s. c 3 s 5
; prior:
1983 1st ex.s. c 66 s 4
;
1983 1st ex.s. c 55 s 4
;
1982 2nd ex.s. c 13 s 1
;
1982 c 10 s 16
; prior:
1981 c 178 s 1
;
1981 c 172 s 3
;
1979 ex.s. c 196 s 2
;
1975 1st ex.s. c 291 s 7
;
1971 ex.s. c 281 s 5
;
1971 ex.s. c 186 s 3
;
1969 ex.s. c 262 s 36
;
1967 ex.s. c 149 s 10
;
1965 ex.s. c 173 s 6
;
1961 c 15 s 82.04.260
; prior:
1959 c 211 s 2
;
1955 c 389 s 46
; prior:
1953 c 91 s 4
;
1951 2nd ex.s. c 28 s 4
; 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
NOTES:
Reviser's note:
This section was amended by 2023 c 286 s 3 and by 2023 c 422 s 5, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Tax preference performance statement
—
2023 c 422 ss 2-5:
See note following RCW 82.04.4268
.
Findings
—
Effective date
—
Expiration date
—
2023 c 286:
See notes following RCW 82.04.759
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective date
—
2020 c 165:
See notes following RCW 82.04.2602
.
Effective date
—
2019 c 425:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2019." [
2019 c 425 s 2
.]
Findings
—
Intent
—
2019 c 336:
See notes following RCW 82.04.261
.
Tax preference performance statement
—
Effective date
—
2018 c 164:
See notes following RCW 82.08.900
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Expiration date
—
2015 3rd sp.s. c 6; 2012 2nd sp.s. c 6 s 602:
"Section 602 of this act expires July 1, 2015." [
2015 3rd sp.s. c 6 s 603
;
2012 2nd sp.s. c 6 s 704
.]
Findings
—
Intent
—
Tax preference performance statement
—
2015 3rd sp.s. c 6 s 602:
"(1) The legislature finds that over the last fifteen years, technological transformation and other developments have radically changed the newspaper industry business model, which remains in transition. The legislature further finds that the economic hardship wrought by this digital transformation has been substantial. The legislature finds that a strong and vibrant newspaper industry in Washington is beneficial to the state's citizens and to the conduct of good government at every level. The legislature further finds that advertising revenue of all United States newspapers fell from 63.5 billion dollars in 2000 to about twenty-three billion dollars in 2013, and is still falling. The legislature further finds that traditional news organizations' ability to support high quality news gathering and reporting relied primarily on a model in which advertisers paid to reach mass audiences attracted by newspapers. The legislature further finds that advertisers found it advantageous to pay to reach a mass audience because other advertising mediums were limited and less effective. The digital era has greatly fractured traditional spending by advertisers and turned this model on its head such that newspapers continue to require time to adapt so they may continue their public service mission. The legislature also finds that the business and occupation tax rate for the newspaper industry was pegged to the general manufacturing and wholesaling rate from 1937 until 2009, when the legislature extended tax relief to the industry due to this shift. It is the legislature's intent to extend this tax relief to the industry until its revenues and business model have stabilized. It is the legislature's further intent to provide a uniform tax rate for the industry to minimize the burden of reporting state business and occupation taxes for different types of revenue, which oftentimes are impossible to account for separately by the taxpayer.
(2)(a) This subsection is the tax preference performance statement for the newspaper tax preferences in section 602 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(b) The legislature categorizes this tax preference as one intended to provide temporary tax relief as described in RCW 82.32.808
(2)(e).
(c) It is the legislature's specific public policy objective to provide business and occupation tax relief to the newspaper industry as it continues to adjust to significant revenue shifts and technological changes. As a secondary public policy objective, it is the legislature's intent to provide a permanent uniform rate for the industry.
(d) To measure the effectiveness of the preference provided in this act in achieving the specific public policy objective described in (c) of this subsection, the joint legislative audit and review committee must evaluate year-to-year changes in gross revenue derived from all sources for newspaper firms claiming the preferential tax rate under RCW 82.04.260
(14). If the average year-to-year change in gross revenue is positive, including the last three years included in the tax preference review by the joint legislative audit and review committee, it is the legislature's intent to allow the tax preference to expire and to reinstate the traditional rate of 0.484 percent.
(e)(i) The information provided in the annual tax preference accountability report submitted by taxpayers as required by the department of revenue and taxpayer data provided by the department of revenue is intended to provide the informational basis for the evaluation under (d) of this subsection.
(ii) In addition to the data source described under (e)(i) of this subsection, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (d) of this subsection." [
2015 3rd sp.s. c 6 s 601
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
2015 3rd sp.s. c 6 ss 202-205:
See note following RCW 82.04.4266
.
Contingent effective date
—
2014 c 140 s 6:
"Section 6 of this act takes effect July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 39
.]
Contingent expiration date
—
2014 c 140 s 5:
"Section 5 of this act expires July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 38
.]
Effective date
—
2014 c 140 s 4:
"Section 4 of this act takes effect July 1, 2015." [
2014 c 140 s 37
.]
Expiration date
—
2014 c 140 s 3:
"Section 3 of this act expires July 1, 2015." [
2014 c 140 s 36
.]
Effective date
—
2013 3rd sp.s. c 2 s 6:
"Subject to section 2 of this act, section 6 of this act takes effect July 1, 2015." [
2013 3rd sp.s. c 2 s 16
.]
Expiration date
—
2013 3rd sp.s. c 2 s 5:
"Subject to section 2 of this act, section 5 of this act expires July 1, 2015." [
2013 3rd sp.s. c 2 s 15
.]
Contingent effective date
—
2013 3rd sp.s. c 2:
See RCW 82.32.850
.
Findings
—
Intent
—
2013 3rd sp.s. c 2:
See note following RCW 82.32.850
.
Effective date
—
2013 2nd sp.s. c 13 s 203:
"Section 203 of this act takes effect July 1, 2015." [
2013 2nd sp.s. c 13 s 1902
.]
Expiration date
—
2013 2nd sp.s. c 13 s 202:
"Section 202 of this act expires July 1, 2015." [
2013 2nd sp.s. c 13 s 1901
.]
Intent
—
2013 2nd sp.s. c 13:
"The intent of part II of this act is to incentivize the creation of additional jobs in Washington in the dairy industry and related industries that manufacture dairy-based products. More specifically, it is the intent of part II of this act to encourage infant formula producers to locate new facilities in Washington or expand existing facilities in Washington through an extension of a preferential business and occupation tax rate for dairy producers. It is the further intent of the legislature to provide this tax incentive in a fiscally responsible manner where the actual revenue impact of the legislation substantially conforms with the fiscal estimate provided in the legislation's fiscal note." [
2013 2nd sp.s. c 13 s 201
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
Existing rights, liabilities, or obligations
—
Effective dates
—
Contingent effective dates
—
2012 2nd sp.s. c 6:
See notes following RCW 82.04.29005
.
Findings
—
Construction
—
2011 c 2 (Initiative Measure No. 1107):
See notes following RCW 82.08.0293
.
Expiration date
—
2010 1st sp.s. c 23 ss 503, 505, and 514:
See note following RCW 82.04.4266
.
Effective date
—
2010 1st sp.s. c 23 ss 504, 506, and 515:
See note following RCW 82.04.4266
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Effective date
—
Contingent effective date
—
2009 c 461:
See note following RCW 82.04.280
.
Effective date
—
2009 c 162:
See note following RCW 48.03.020
.
Retroactive application
—
2008 c 296:
"Section 1 of this act applies retroactively to July 1, 2007, as well as prospectively." [
2008 c 296 s 2
.]
Severability
—
Effective date
—
2008 c 217:
See notes following RCW 48.03.020
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Effective date
—
2007 c 48:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007." [
2007 c 48 s 9
.]
Effective dates
—
2006 c 354:
See note following RCW 82.04.4268
.
Effective dates
—
Contingent effective date
—
2006 c 300:
See note following RCW 82.04.261
.
Effective dates
—
2005 c 513:
See note following RCW 82.04.4266
.
Finding
—
Intent
—
Effective date
—
2005 c 443:
See notes following RCW 82.08.0255
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Effective dates
—
2003 c 339:
See note following RCW 84.36.640
.
Effective dates
—
2003 c 261:
See note following RCW 84.36.635
.
Purpose
—
Intent
—
2001 2nd sp.s. c 25:
"The purpose of sections 2 and 3 of this act is to provide a tax rate for persons who manufacture dairy products that is commensurate to the rate imposed on certain other processors of agricultural commodities. This tax rate applies to persons who manufacture dairy products from raw materials such as fluid milk, dehydrated milk, or by-products of milk such as cream, buttermilk, whey, butter, or casein. It is not the intent of the legislature to provide this tax rate to persons who use dairy products as an ingredient or component of their manufactured product, such as milk-based soups or pizza. It is the intent that persons who manufacture products such as milk, cheese, yogurt, ice cream, whey, or whey products be subject to this rate." [
2001 2nd sp.s. c 25 s 1
.]
Part headings not law
—
2001 2nd sp.s. c 25:
"Part headings used in this act are not any part of the law." [
2001 2nd sp.s. c 25 s 7
.]
Effective date
—
Savings
—
1998 c 312:
See notes following RCW 82.04.332
.
Effective date
—
1998 c 170:
See note following RCW 82.04.331
.
Severability
—
Effective date
—
1996 c 148:
See notes following RCW 82.04.050
.
Effective date
—
1996 c 115:
"This act shall take effect July 1, 1996." [
1996 c 115 s 2
.]
Effective date
—
1995 2nd sp.s. c 12:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 12 s 2
.]
Effective date
—
1995 2nd sp.s. c 6:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 6 s 2
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Findings
—
Intent
—
1993 c 492:
See notes following RCW 43.20.050
.
Short title
—
Savings
—
Reservation of legislative power
—
Effective dates
—
1993 c 492:
See RCW 43.72.910
through
43.72.915
.
Effective dates
—
1991 c 272:
See RCW 81.108.901
.
Severability
—
1985 c 471:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1985 c 471 s 17
.]
Effective date
—
1985 c 471:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985." [
1985 c 471 s 18
.]
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
Severability
—
1982 2nd ex.s. c 13:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1982 2nd ex.s. c 13 s 2
.]
Effective date
—
1982 2nd ex.s. c 13:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect August 1, 1982." [
1982 2nd ex.s. c 13 s 3
.]
Severability
—
1982 c 10:
See note following RCW 6.13.080
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Effective date
—
1971 ex.s. c 186:
See note following RCW 82.04.110
.
PDF
RCW 82.04.260
Tax on manufacturers and processors of various foods and by-products
—
Research and development organizations
—
Travel agents
—
Certain international activities
—
Stevedoring and associated activities
—
Low-level waste disposers
—
Insurance producers and surplus line brokers
—
Hospitals
—
Commercial airplane activities
—
Timber product activities
—
Canned salmon processors.
(Effective January 1, 2026, until January 1, 2027.)
(1) Upon every person engaging within this state in the business of manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business is equal to the value of the flour, pearl barley, oil, canola meal, or canola by-product manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2035, seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; or selling manufactured seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing, to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales, multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state;
(c)(i) Except as provided otherwise in (c)(iii) of this subsection, beginning July 1, 2035, until January 1, 2046, dairy products; or selling dairy products that the person has manufactured to purchasers who either transport in the ordinary course of business the goods out of state or purchasers who use such dairy products as an ingredient or component in the manufacturing of a dairy product; as to such persons the tax imposed is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state or sold to a manufacturer for use as an ingredient or component in the manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products" means:
(A) Products, not including any cannabis-infused product, that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including by-products from the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than 70 percent dairy products that qualify under (c)(ii)(A) of this subsection, measured by weight or volume.
(iii) The preferential tax rate provided to taxpayers under this subsection (1)(c) does not apply to sales of dairy products on or after July 1, 2023, where a dairy product is used by the purchaser as an ingredient or component in the manufacturing in Washington of a dairy product;
(d)(i) Beginning July 1, 2035, fruits or vegetables by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables, or selling at wholesale fruits or vegetables manufactured by the seller by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables and sold to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state.
(ii) For purposes of this subsection (1)(d), "fruits" and "vegetables" do not include cannabis, useable cannabis, or cannabis-infused products; and
(e) Wood biomass fuel; as to such persons the amount of tax with respect to the business is equal to the value of wood biomass fuel manufactured, multiplied by the rate of 0.138 percent. For the purposes of this section, "wood biomass fuel" means a liquid or gaseous fuel that is produced from lignocellulosic feedstocks, including wood, forest, or field residue and dedicated energy crops, and that does not include wood treated with chemical preservations such as creosote, pentachlorophenol, or copper-chrome-arsenic.
(2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business is equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed is equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.
(5)(a) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was $250,000 or less; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(b) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was more than $250,000; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent through June 30, 2019, and 0.9 percent beginning July 1, 2019.
(6) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business is equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection are exempt from payment of taxes imposed by chapter
82.16
RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.
(8)(a) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 70A.380.010
; as to such persons the amount of the tax with respect to such business is equal to the gross income of the business, excluding any fees imposed under chapter
70A.384
RCW, multiplied by the rate of 3.3 percent.
(b) If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state must be determined in accordance with the methods of apportionment required under RCW 82.04.460
.
(9) Upon every person engaging within this state as an insurance producer licensed under chapter
48.17
RCW or a surplus line broker licensed under chapter
48.15
RCW; as to such persons, the amount of the tax with respect to such licensed activities is equal to the gross income of such business multiplied by the rate of 0.484 percent.
(10) Upon every person engaging within this state in business as a hospital, as defined in chapter
70.41
RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities is equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter.
(11)(a) Beginning October 1, 2005, upon every person engaging within this state in the business of manufacturing commercial airplanes, or components of such airplanes, or making sales, at retail or wholesale, of commercial airplanes or components of such airplanes, manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007;
(ii) 0.2904 percent beginning July 1, 2007, through March 31, 2020; and
(iii) Beginning April 1, 2020, 0.484 percent, subject to any reduction required under (e) of this subsection (11). The tax rate in this subsection (11)(a)(iii) applies to all business activities described in this subsection (11)(a).
(b) Beginning July 1, 2008, upon every person who is not eligible to report under the provisions of (a) of this subsection (11) and is engaging within this state in the business of manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes, or making sales, at retail or wholesale, of such tooling manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of:
(i) 0.2904 percent through March 31, 2020; and
(ii) Beginning April 1, 2020, the following rates, which are subject to any reduction required under (e) of this subsection (11):
(A) The rate under RCW 82.04.250
(1) on the business of making retail sales of tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes; and
(B) 0.484 percent on all other business activities described in this subsection (11)(b).
(c) For the purposes of this subsection (11), "commercial airplane" and "component" have the same meanings as provided in RCW 82.32.550
.
(d)(i) In addition to all other requirements under this title, a person reporting under the tax rate provided in this subsection (11) must file a complete annual tax performance report with the department under RCW 82.32.534
. However, this requirement does not apply to persons reporting under the tax rate in (a)(iii) of this subsection (11), so long as that rate remains 0.484 percent, or under any of the tax rates in (b)(ii)(A) and (B) of this subsection (11), so long as those tax rates remain the rate imposed pursuant to RCW 82.04.250
(1) and 0.484 percent, respectively.
(ii) Nothing in (d)(i) of this subsection (11) may be construed as affecting the obligation of a person reporting under a tax rate provided in this subsection (11) to file a complete annual tax performance report with the department under RCW 82.32.534
: (A) Pursuant to another provision of this title as a result of claiming a tax credit or exemption; or (B) pursuant to (d)(i) of this subsection (11) as a result of claiming the tax rates in (a)(ii) or (b)(i) of this subsection (11) for periods ending before April 1, 2020.
(e)(i) After March 31, 2021, the tax rates under (a)(iii) and (b)(ii) of this subsection (11) must be reduced to 0.357 percent provided the conditions in RCW 82.04.2602
are met. The effective date of the rates authorized under this subsection (11)(e) must occur on the first day of the next calendar quarter that is at least 60 days after the department receives the last of the two written notices pursuant to RCW 82.04.2602
(3) and (4).
(ii) Both a significant commercial airplane manufacturer separately and the rest of the aerospace industry as a whole, receiving the rate of 0.357 percent under this subsection (11)(e) are subject to the aerospace apprenticeship utilization rates required under RCW 49.04.220
by April 1, 2026, or five years after the effective date of the 0.357 percent rate authorized under this subsection (11)(e), whichever is later, as determined by the department of labor and industries.
(iii) The provisions of RCW 82.32.805
and
82.32.808
do not apply to this subsection (11)(e).
(f)(i) Except as provided in (f)(ii) of this subsection (11), this subsection (11) does not apply on and after July 1, 2040.
(ii) With respect to the manufacturing of commercial airplanes or making sales, at retail or wholesale, of commercial airplanes, this subsection (11) does not apply on and after July 1st of the year in which the department makes a determination that any final assembly or wing assembly of any version or variant of a commercial airplane that is the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
has been sited outside the state of Washington. This subsection (11)(f)(ii) only applies to the manufacturing or sale of commercial airplanes that are the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
. This subsection (11)(f)(ii) continues to apply during the time that a person is subject to the tax rate in (a)(iii) of this subsection (11).
(g) For the purposes of this subsection, "a significant commercial airplane manufacturer" means a manufacturer of commercial airplanes with at least 50,000 full-time employees in Washington as of January 1, 2021.
(12)(a) Until July 1, 2045, upon every person engaging within this state in the business of extracting timber or extracting for hire timber; as to such persons the amount of tax with respect to the business is, in the case of extractors, equal to the value of products, including by-products, extracted, or in the case of extractors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(b) Until July 1, 2045, upon every person engaging within this state in the business of manufacturing or processing for hire: (i) Timber into timber products or wood products; (ii) timber products into other timber products or wood products; or (iii) products defined in RCW 19.27.570
(1); as to such persons the amount of the tax with respect to the business is, in the case of manufacturers, equal to the value of products, including by-products, manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(c) Until July 1, 2045, upon every person engaging within this state in the business of selling at wholesale: (i) Timber extracted by that person; (ii) timber products manufactured by that person from timber or other timber products; (iii) wood products manufactured by that person from timber or timber products; or (iv) products defined in RCW 19.27.570
(1) manufactured by that person; as to such persons the amount of the tax with respect to the business is equal to the gross proceeds of sales of the timber, timber products, wood products, or products defined in RCW 19.27.570
(1) multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(d) Until July 1, 2045, upon every person engaging within this state in the business of selling standing timber; as to such persons the amount of the tax with respect to the business is equal to the gross income of the business multiplied by the rate of 0.2904 percent. For purposes of this subsection (12)(d), "selling standing timber" means the sale of timber apart from the land, where the buyer is required to sever the timber within 30 months from the date of the original contract, regardless of the method of payment for the timber and whether title to the timber transfers before, upon, or after severance.
(e) For purposes of this subsection, the following definitions apply:
(i) "Biocomposite surface products" means surface material products containing, by weight or volume, more than 50 percent recycled paper and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven cellulosic fibers held together largely by hydrogen bonding. "Paper and paper products" includes newsprint; office, printing, fine, and pressure-sensitive papers; paper napkins, towels, and toilet tissue; kraft bag, construction, and other kraft industrial papers; paperboard, liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and related types of cellulosic products containing primarily, by weight or volume, cellulosic materials. "Paper and paper products" does not include books, newspapers, magazines, periodicals, and other printed publications, advertising materials, calendars, and similar types of printed materials.
(iii) "Recycled paper" means paper and paper products having 50 percent or more of their fiber content that comes from postconsumer waste. For purposes of this subsection (12)(e)(iii), "postconsumer waste" means a finished material that would normally be disposed of as solid waste, having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or publicly owned land. "Timber" does not include Christmas trees that are cultivated by agricultural methods or short-rotation hardwoods as defined in RCW 84.33.035
.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products obtained wholly from the processing of timber, short-rotation hardwoods as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional lumber; engineered wood products such as particleboard, oriented strand board, medium density fiberboard, and plywood; wood doors; wood windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a person reporting under the tax rate provided in this subsection (12) must file a complete annual tax performance report with the department under RCW 82.32.534
.
(g) Nothing in this subsection (12) may be construed to affect the taxation of any activity defined as a retail sale in RCW 82.04.050
(2) (b) or (c), defined as a wholesale sale in RCW 82.04.060
(2), or taxed under *RCW 82.04.280
(1)(g).
(13) Upon every person engaging within this state in inspecting, testing, labeling, and storing canned salmon owned by another person, as to such persons, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.
[
2025 c 423 s 101
. Prior:
2023 c 422 s 5
;
2023 c 286 s 3
;
2022 c 16 s 140
;
2021 c 145 s 7
;
2020 c 165 s 3
; prior:
2019 c 425 s 1
;
2019 c 336 s 4
;
2018 c 164 s 3
;
2017 c 135 s 11
; prior:
2015 3rd sp.s. c 6 s 602
;
2015 3rd sp.s. c 6 s 205
; prior:
2014 c 140 s 6
; (2014 c 140 s 5 expired July 1, 2015);
2014 c 140 s 4
; (2014 c 140 s 3 expired July 1, 2015);
2013 3rd sp.s. c 2 s 6
; (2013 3rd sp.s. c 2 s 5 expired July 1, 2015);
2013 2nd sp.s. c 13 s 203
; (2013 2nd sp.s. c 13 s 202 expired July 1, 2015); prior: (2012 2nd sp.s. c 6 s 602 expired July 1, 2015);
2012 2nd sp.s. c 6 s 204
;
2011 c 2 s 203
(Initiative Measure No. 1107, approved November 2, 2010);
2010 1st sp.s. c 23 s 506
; (2010 1st sp.s. c 23 s 505 expired June 10, 2010);
2010 c 114 s 107
; prior:
2009 c 479 s 64
;
2009 c 461 s 1
;
2009 c 162 s 34
; prior:
2008 c 296 s 1
;
2008 c 217 s 100
;
2008 c 81 s 4
; prior:
2007 c 54 s 6
;
2007 c 48 s 2
; prior:
2006 c 354 s 4
;
2006 c 300 s 1
; prior:
2005 c 513 s 2
;
2005 c 443 s 4
; prior:
2003 2nd sp.s. c 1 s 4
;
2003 2nd sp.s. c 1 s 3
;
2003 c 339 s 11
;
2003 c 261 s 11
;
2001 2nd sp.s. c 25 s 2
; prior:
1998 c 312 s 5
;
1998 c 311 s 2
; prior:
1998 c 170 s 4
;
1996 c 148 s 2
;
1996 c 115 s 1
; prior:
1995 2nd sp.s. c 12 s 1
;
1995 2nd sp.s. c 6 s 1
;
1993 sp.s. c 25 s 104
;
1993 c 492 s 304
;
1991 c 272 s 15
;
1990 c 21 s 2
;
1987 c 139 s 1
; prior:
1985 c 471 s 1
;
1985 c 135 s 2
;
1983 2nd ex.s. c 3 s 5
; prior:
1983 1st ex.s. c 66 s 4
;
1983 1st ex.s. c 55 s 4
;
1982 2nd ex.s. c 13 s 1
;
1982 c 10 s 16
; prior:
1981 c 178 s 1
;
1981 c 172 s 3
;
1979 ex.s. c 196 s 2
;
1975 1st ex.s. c 291 s 7
;
1971 ex.s. c 281 s 5
;
1971 ex.s. c 186 s 3
;
1969 ex.s. c 262 s 36
;
1967 ex.s. c 149 s 10
;
1965 ex.s. c 173 s 6
;
1961 c 15 s 82.04.260
; prior:
1959 c 211 s 2
;
1955 c 389 s 46
; prior:
1953 c 91 s 4
;
1951 2nd ex.s. c 28 s 4
; 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
NOTES:
*
Reviser's note:
RCW 82.04.280
was amended by 2025 c 9 s 2, changing subsection (1)(g) to subsection (1)(f).
Expiration date
—
2025 c 423 s 101:
"Section 101 of this act expires January 1, 2034." [
2025 c 423 s 403
.]
Effective date
—
2025 c 423 ss 101, 103, 104, 105, 201, and 202:
"Except for sections 102, 301, and 302 of this act, this act takes effect January 1, 2026." [
2025 c 423 s 406
.]
Finding
—
Intent
—
2025 c 423:
"(1) The legislature finds that, according to the most recent tax exemption study published by the department of revenue, there are currently 786 tax exemptions for the major state and local tax sources in Washington. The exemptions result in nearly $200,000,000,000 of taxpayer savings for the current biennium. The legislature acknowledges that certain tax preferences, such as the sales and use tax exemption for food and the working families tax credit, are intended to rebalance Washington's tax code for working people. However, the legislature further acknowledges that many existing tax preferences are the result of private interests securing preferential tax treatment.
(2) For that reason, the legislature enacted robust tax preference performance measures to create greater tax preference transparency and accountability and provide a framework for legislators to make informed decisions on the most efficient use of taxpayer dollars. To ensure tax exemptions meet certain public policy objectives, the joint legislative audit and review committee, a nonpartisan legislative agency, routinely evaluates tax preferences based on specific criteria provided in law and reports that information to the legislature each year. The reports provide accurate, comprehensive, unbiased data that policymakers may use to determine if a tax preference should be continued, modified, or repealed. Additionally, the citizen commission for performance measurement of tax preferences is responsible for selecting which tax preferences are reviewed each year and provides comment on the legislative auditor's reports. Both entities provide recommendations to the legislature on the effectiveness of a tax preference in meeting certain performance measures.
(3) Furthermore, the department of revenue assists in the tax preference evaluation process by collecting data from taxpayer beneficiaries and regularly reviewing changes in state and federal law. The analysis by the department and legislative auditor often reveals that a tax exemption is legally obsolete, meaning the specific legal conditions that existed when the exemption was enacted have since changed and the original legislative intent is no longer applicable. Additionally, some tax exemptions are simply not used and should be removed from the tax code to create better clarity for taxpayers.
(4) The legislature recognizes that more progress is needed for the state to have a fair and balanced tax system that provides sustainable and ample funding for public schools, health care, and other programs that protect the safety and well-being of the public, as well as social services that provide critical, basic-needs assistance for our state's most vulnerable residents. The legislature further recognizes that the tax preference performance review process provides an opportunity for policymakers to evaluate the tax code to ensure the state is not losing essential revenue due to inefficient or no longer applicable tax exemptions.
(5) Thus, the legislature intends to enact recommendations from the joint legislative audit and review committee, the citizen commission for performance measurement of tax preferences, and the department of revenue, including eliminating several obsolete tax preferences, clarifying legislative intent to better inform future tax preference performance reviews, adding expiration dates, and other actions aimed at creating a fair and balanced tax system." [
2025 c 423 s 1
.]
Necessity of act
—
2025 c 423:
"This act is necessary for the support of the state government and its existing public institutions." [
2025 c 423 s 402
.]
Tax preference performance statement
—
2023 c 422 ss 2-5:
See note following RCW 82.04.4268
.
Findings
—
Effective date
—
Expiration date
—
2023 c 286:
See notes following RCW 82.04.759
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective date
—
2020 c 165:
See notes following RCW 82.04.2602
.
Effective date
—
2019 c 425:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2019." [
2019 c 425 s 2
.]
Findings
—
Intent
—
2019 c 336:
See notes following RCW 82.04.261
.
Tax preference performance statement
—
Effective date
—
2018 c 164:
See notes following RCW 82.08.900
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Expiration date
—
2015 3rd sp.s. c 6; 2012 2nd sp.s. c 6 s 602:
"Section 602 of this act expires July 1, 2015." [
2015 3rd sp.s. c 6 s 603
;
2012 2nd sp.s. c 6 s 704
.]
Findings
—
Intent
—
Tax preference performance statement
—
2015 3rd sp.s. c 6 s 602:
"(1) The legislature finds that over the last fifteen years, technological transformation and other developments have radically changed the newspaper industry business model, which remains in transition. The legislature further finds that the economic hardship wrought by this digital transformation has been substantial. The legislature finds that a strong and vibrant newspaper industry in Washington is beneficial to the state's citizens and to the conduct of good government at every level. The legislature further finds that advertising revenue of all United States newspapers fell from 63.5 billion dollars in 2000 to about twenty-three billion dollars in 2013, and is still falling. The legislature further finds that traditional news organizations' ability to support high quality news gathering and reporting relied primarily on a model in which advertisers paid to reach mass audiences attracted by newspapers. The legislature further finds that advertisers found it advantageous to pay to reach a mass audience because other advertising mediums were limited and less effective. The digital era has greatly fractured traditional spending by advertisers and turned this model on its head such that newspapers continue to require time to adapt so they may continue their public service mission. The legislature also finds that the business and occupation tax rate for the newspaper industry was pegged to the general manufacturing and wholesaling rate from 1937 until 2009, when the legislature extended tax relief to the industry due to this shift. It is the legislature's intent to extend this tax relief to the industry until its revenues and business model have stabilized. It is the legislature's further intent to provide a uniform tax rate for the industry to minimize the burden of reporting state business and occupation taxes for different types of revenue, which oftentimes are impossible to account for separately by the taxpayer.
(2)(a) This subsection is the tax preference performance statement for the newspaper tax preferences in section 602 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(b) The legislature categorizes this tax preference as one intended to provide temporary tax relief as described in RCW 82.32.808
(2)(e).
(c) It is the legislature's specific public policy objective to provide business and occupation tax relief to the newspaper industry as it continues to adjust to significant revenue shifts and technological changes. As a secondary public policy objective, it is the legislature's intent to provide a permanent uniform rate for the industry.
(d) To measure the effectiveness of the preference provided in this act in achieving the specific public policy objective described in (c) of this subsection, the joint legislative audit and review committee must evaluate year-to-year changes in gross revenue derived from all sources for newspaper firms claiming the preferential tax rate under RCW 82.04.260
(14). If the average year-to-year change in gross revenue is positive, including the last three years included in the tax preference review by the joint legislative audit and review committee, it is the legislature's intent to allow the tax preference to expire and to reinstate the traditional rate of 0.484 percent.
(e)(i) The information provided in the annual tax preference accountability report submitted by taxpayers as required by the department of revenue and taxpayer data provided by the department of revenue is intended to provide the informational basis for the evaluation under (d) of this subsection.
(ii) In addition to the data source described under (e)(i) of this subsection, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (d) of this subsection." [
2015 3rd sp.s. c 6 s 601
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
2015 3rd sp.s. c 6 ss 202-205:
See note following RCW 82.04.4266
.
Contingent effective date
—
2014 c 140 s 6:
"Section 6 of this act takes effect July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 39
.]
Contingent expiration date
—
2014 c 140 s 5:
"Section 5 of this act expires July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 38
.]
Effective date
—
2014 c 140 s 4:
"Section 4 of this act takes effect July 1, 2015." [
2014 c 140 s 37
.]
Expiration date
—
2014 c 140 s 3:
"Section 3 of this act expires July 1, 2015." [
2014 c 140 s 36
.]
Effective date
—
2013 3rd sp.s. c 2 s 6:
"Subject to section 2 of this act, section 6 of this act takes effect July 1, 2015." [
2013 3rd sp.s. c 2 s 16
.]
Expiration date
—
2013 3rd sp.s. c 2 s 5:
"Subject to section 2 of this act, section 5 of this act expires July 1, 2015." [
2013 3rd sp.s. c 2 s 15
.]
Contingent effective date
—
2013 3rd sp.s. c 2:
See RCW 82.32.850
.
Findings
—
Intent
—
2013 3rd sp.s. c 2:
See note following RCW 82.32.850
.
Effective date
—
2013 2nd sp.s. c 13 s 203:
"Section 203 of this act takes effect July 1, 2015." [
2013 2nd sp.s. c 13 s 1902
.]
Expiration date
—
2013 2nd sp.s. c 13 s 202:
"Section 202 of this act expires July 1, 2015." [
2013 2nd sp.s. c 13 s 1901
.]
Intent
—
2013 2nd sp.s. c 13:
"The intent of part II of this act is to incentivize the creation of additional jobs in Washington in the dairy industry and related industries that manufacture dairy-based products. More specifically, it is the intent of part II of this act to encourage infant formula producers to locate new facilities in Washington or expand existing facilities in Washington through an extension of a preferential business and occupation tax rate for dairy producers. It is the further intent of the legislature to provide this tax incentive in a fiscally responsible manner where the actual revenue impact of the legislation substantially conforms with the fiscal estimate provided in the legislation's fiscal note." [
2013 2nd sp.s. c 13 s 201
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
Existing rights, liabilities, or obligations
—
Effective dates
—
Contingent effective dates
—
2012 2nd sp.s. c 6:
See notes following RCW 82.04.29005
.
Findings
—
Construction
—
2011 c 2 (Initiative Measure No. 1107):
See notes following RCW 82.08.0293
.
Expiration date
—
2010 1st sp.s. c 23 ss 503, 505, and 514:
See note following RCW 82.04.4266
.
Effective date
—
2010 1st sp.s. c 23 ss 504, 506, and 515:
See note following RCW 82.04.4266
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Effective date
—
Contingent effective date
—
2009 c 461:
See note following RCW 82.04.280
.
Effective date
—
2009 c 162:
See note following RCW 48.03.020
.
Retroactive application
—
2008 c 296:
"Section 1 of this act applies retroactively to July 1, 2007, as well as prospectively." [
2008 c 296 s 2
.]
Severability
—
Effective date
—
2008 c 217:
See notes following RCW 48.03.020
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Effective date
—
2007 c 48:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007." [
2007 c 48 s 9
.]
Effective dates
—
2006 c 354:
See note following RCW 82.04.4268
.
Effective dates
—
Contingent effective date
—
2006 c 300:
See note following RCW 82.04.261
.
Effective dates
—
2005 c 513:
See note following RCW 82.04.4266
.
Finding
—
Intent
—
Effective date
—
2005 c 443:
See notes following RCW 82.08.0255
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Effective dates
—
2003 c 339:
See note following RCW 84.36.640
.
Effective dates
—
2003 c 261:
See note following RCW 84.36.635
.
Purpose
—
Intent
—
2001 2nd sp.s. c 25:
"The purpose of sections 2 and 3 of this act is to provide a tax rate for persons who manufacture dairy products that is commensurate to the rate imposed on certain other processors of agricultural commodities. This tax rate applies to persons who manufacture dairy products from raw materials such as fluid milk, dehydrated milk, or by-products of milk such as cream, buttermilk, whey, butter, or casein. It is not the intent of the legislature to provide this tax rate to persons who use dairy products as an ingredient or component of their manufactured product, such as milk-based soups or pizza. It is the intent that persons who manufacture products such as milk, cheese, yogurt, ice cream, whey, or whey products be subject to this rate." [
2001 2nd sp.s. c 25 s 1
.]
Part headings not law
—
2001 2nd sp.s. c 25:
"Part headings used in this act are not any part of the law." [
2001 2nd sp.s. c 25 s 7
.]
Effective date
—
Savings
—
1998 c 312:
See notes following RCW 82.04.332
.
Effective date
—
1998 c 170:
See note following RCW 82.04.331
.
Severability
—
Effective date
—
1996 c 148:
See notes following RCW 82.04.050
.
Effective date
—
1996 c 115:
"This act shall take effect July 1, 1996." [
1996 c 115 s 2
.]
Effective date
—
1995 2nd sp.s. c 12:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 12 s 2
.]
Effective date
—
1995 2nd sp.s. c 6:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 6 s 2
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Findings
—
Intent
—
1993 c 492:
See notes following RCW 43.20.050
.
Short title
—
Savings
—
Reservation of legislative power
—
Effective dates
—
1993 c 492:
See RCW 43.72.910
through
43.72.915
.
Effective dates
—
1991 c 272:
See RCW 81.108.901
.
Severability
—
1985 c 471:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1985 c 471 s 17
.]
Effective date
—
1985 c 471:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985." [
1985 c 471 s 18
.]
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
Severability
—
1982 2nd ex.s. c 13:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1982 2nd ex.s. c 13 s 2
.]
Effective date
—
1982 2nd ex.s. c 13:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect August 1, 1982." [
1982 2nd ex.s. c 13 s 3
.]
Severability
—
1982 c 10:
See note following RCW 6.13.080
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Effective date
—
1971 ex.s. c 186:
See note following RCW 82.04.110
.
PDF
RCW 82.04.260
Tax on manufacturers and processors of various foods and by-products
—
Research and development organizations
—
Travel agents
—
Certain international activities
—
Stevedoring and associated activities
—
Low-level waste disposers
—
Insurance producers and surplus line brokers
—
Hospitals
—
Commercial airplane activities
—
Timber product activities
—
Canned salmon processors.
(Effective January 1, 2027, until January 1, 2034.)
(1) Upon every person engaging within this state in the business of manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business is equal to the value of the flour, pearl barley, oil, canola meal, or canola by-product manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2035, seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; or selling manufactured seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing, to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales, multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state;
(c)(i) Except as provided otherwise in (c)(iii) of this subsection, beginning July 1, 2035, until January 1, 2046, dairy products; or selling dairy products that the person has manufactured to purchasers who either transport in the ordinary course of business the goods out of state or purchasers who use such dairy products as an ingredient or component in the manufacturing of a dairy product; as to such persons the tax imposed is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state or sold to a manufacturer for use as an ingredient or component in the manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products" means:
(A) Products, not including any cannabis-infused product, that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including by-products from the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than 70 percent dairy products that qualify under (c)(ii)(A) of this subsection, measured by weight or volume.
(iii) The preferential tax rate provided to taxpayers under this subsection (1)(c) does not apply to sales of dairy products on or after July 1, 2023, where a dairy product is used by the purchaser as an ingredient or component in the manufacturing in Washington of a dairy product;
(d)(i) Beginning July 1, 2035, fruits or vegetables by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables, or selling at wholesale fruits or vegetables manufactured by the seller by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables and sold to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state.
(ii) For purposes of this subsection (1)(d), "fruits" and "vegetables" do not include cannabis, useable cannabis, or cannabis-infused products; and
(e) Wood biomass fuel; as to such persons the amount of tax with respect to the business is equal to the value of wood biomass fuel manufactured, multiplied by the rate of 0.138 percent. For the purposes of this section, "wood biomass fuel" means a liquid or gaseous fuel that is produced from lignocellulosic feedstocks, including wood, forest, or field residue and dedicated energy crops, and that does not include wood treated with chemical preservations such as creosote, pentachlorophenol, or copper-chrome-arsenic.
(2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business is equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.5 percent.
(4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed is equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.
(5)(a) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was $250,000 or less; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(b) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was more than $250,000; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent through June 30, 2019, and 0.9 percent beginning July 1, 2019.
(6) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business is equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection are exempt from payment of taxes imposed by chapter
82.16
RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.
(8)(a) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 70A.380.010
; as to such persons the amount of the tax with respect to such business is equal to the gross income of the business, excluding any fees imposed under chapter
70A.384
RCW, multiplied by the rate of 3.3 percent.
(b) If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state must be determined in accordance with the methods of apportionment required under RCW 82.04.460
.
(9) Upon every person engaging within this state as an insurance producer licensed under chapter
48.17
RCW or a surplus line broker licensed under chapter
48.15
RCW; as to such persons, the amount of the tax with respect to such licensed activities is equal to the gross income of such business multiplied by the rate of 0.5 percent.
(10) Upon every person engaging within this state in business as a hospital, as defined in chapter
70.41
RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities is equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter.
(11)(a) Beginning October 1, 2005, upon every person engaging within this state in the business of manufacturing commercial airplanes, or components of such airplanes, or making sales, at retail or wholesale, of commercial airplanes or components of such airplanes, manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007;
(ii) 0.2904 percent beginning July 1, 2007, through March 31, 2020; and
(iii)(A) Beginning April 1, 2020, through December 31, 2026, 0.484 percent, subject to any reduction required under (e) of this subsection (11). The tax rate in this subsection (11)(a)(iii) applies to all business activities described in this subsection (11)(a).
(B) Beginning January 1, 2027, 0.5 percent, subject to any reduction required under (e) of this subsection (11). The tax rate in this subsection (11)(a)(iii) applies to all business activities described in this subsection (11)(a).
(b) Beginning July 1, 2008, upon every person who is not eligible to report under the provisions of (a) of this subsection (11) and is engaging within this state in the business of manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes, or making sales, at retail or wholesale, of such tooling manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of:
(i) 0.2904 percent through March 31, 2020;
(ii) Beginning April 1, 2020, through December 31, 2026, the following rates, which are subject to any reduction required under (e) of this subsection (11):
(A) The rate under RCW 82.04.250
(1) on the business of making retail sales of tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes; and
(B) 0.484 percent on all other business activities described in this subsection (11)(b); and
(iii) Beginning January 1, 2027, the following rates, which are subject to any reduction required under (e) of this subsection (11):
(A) The rate under RCW 82.04.250
(1) on the business of making retail sales of tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes; and
(B) 0.5 percent on all other business activities described in this subsection (11)(b).
(c) For the purposes of this subsection (11), "commercial airplane" and "component" have the same meanings as provided in RCW 82.32.550
.
(d)(i) In addition to all other requirements under this title, a person reporting under the tax rate provided in this subsection (11) must file a complete annual tax performance report with the department under RCW 82.32.534
. However, this requirement does not apply to persons reporting under the tax rate in (a)(iii) of this subsection (11), so long as that rate remains 0.5 percent, or under any of the tax rates in (b)(ii)(A) and (B) of this subsection (11), so long as those tax rates remain the rate imposed pursuant to RCW 82.04.250
(1) and 0.5 percent, respectively.
(ii) Nothing in (d)(i) of this subsection (11) may be construed as affecting the obligation of a person reporting under a tax rate provided in this subsection (11) to file a complete annual tax performance report with the department under RCW 82.32.534
: (A) Pursuant to another provision of this title as a result of claiming a tax credit or exemption; or (B) pursuant to (d)(i) of this subsection (11) as a result of claiming the tax rates in (a)(ii) or (b)(i) of this subsection (11) for periods ending before April 1, 2020.
(e)(i) After March 31, 2021, the tax rates under (a)(iii) and (b)(ii) of this subsection (11) must be reduced to 0.357 percent provided the conditions in RCW 82.04.2602
are met. The effective date of the rates authorized under this subsection (11)(e) must occur on the first day of the next calendar quarter that is at least 60 days after the department receives the last of the two written notices pursuant to RCW 82.04.2602
(3) and (4).
(ii) Both a significant commercial airplane manufacturer separately and the rest of the aerospace industry as a whole, receiving the rate of 0.357 percent under this subsection (11)(e) are subject to the aerospace apprenticeship utilization rates required under RCW 49.04.220
by April 1, 2026, or five years after the effective date of the 0.357 percent rate authorized under this subsection (11)(e), whichever is later, as determined by the department of labor and industries.
(iii) The provisions of RCW 82.32.805
and
82.32.808
do not apply to this subsection (11)(e).
(f)(i) Except as provided in (f)(ii) of this subsection (11), this subsection (11) does not apply on and after July 1, 2040.
(ii) With respect to the manufacturing of commercial airplanes or making sales, at retail or wholesale, of commercial airplanes, this subsection (11) does not apply on and after July 1st of the year in which the department makes a determination that any final assembly or wing assembly of any version or variant of a commercial airplane that is the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
has been sited outside the state of Washington. This subsection (11)(f)(ii) only applies to the manufacturing or sale of commercial airplanes that are the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
. This subsection (11)(f)(ii) continues to apply during the time that a person is subject to the tax rate in (a)(iii) of this subsection (11).
(g) For the purposes of this subsection, "a significant commercial airplane manufacturer" means a manufacturer of commercial airplanes with at least 50,000 full-time employees in Washington as of January 1, 2021.
(12)(a) Until July 1, 2045, upon every person engaging within this state in the business of extracting timber or extracting for hire timber; as to such persons the amount of tax with respect to the business is, in the case of extractors, equal to the value of products, including by-products, extracted, or in the case of extractors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(b) Until July 1, 2045, upon every person engaging within this state in the business of manufacturing or processing for hire: (i) Timber into timber products or wood products; (ii) timber products into other timber products or wood products; or (iii) products defined in RCW 19.27.570
(1); as to such persons the amount of the tax with respect to the business is, in the case of manufacturers, equal to the value of products, including by-products, manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(c) Until July 1, 2045, upon every person engaging within this state in the business of selling at wholesale: (i) Timber extracted by that person; (ii) timber products manufactured by that person from timber or other timber products; (iii) wood products manufactured by that person from timber or timber products; or (iv) products defined in RCW 19.27.570
(1) manufactured by that person; as to such persons the amount of the tax with respect to the business is equal to the gross proceeds of sales of the timber, timber products, wood products, or products defined in RCW 19.27.570
(1) multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(d) Until July 1, 2045, upon every person engaging within this state in the business of selling standing timber; as to such persons the amount of the tax with respect to the business is equal to the gross income of the business multiplied by the rate of 0.2904 percent. For purposes of this subsection (12)(d), "selling standing timber" means the sale of timber apart from the land, where the buyer is required to sever the timber within 30 months from the date of the original contract, regardless of the method of payment for the timber and whether title to the timber transfers before, upon, or after severance.
(e) For purposes of this subsection, the following definitions apply:
(i) "Biocomposite surface products" means surface material products containing, by weight or volume, more than 50 percent recycled paper and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven cellulosic fibers held together largely by hydrogen bonding. "Paper and paper products" includes newsprint; office, printing, fine, and pressure-sensitive papers; paper napkins, towels, and toilet tissue; kraft bag, construction, and other kraft industrial papers; paperboard, liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and related types of cellulosic products containing primarily, by weight or volume, cellulosic materials. "Paper and paper products" does not include books, newspapers, magazines, periodicals, and other printed publications, advertising materials, calendars, and similar types of printed materials.
(iii) "Recycled paper" means paper and paper products having 50 percent or more of their fiber content that comes from postconsumer waste. For purposes of this subsection (12)(e)(iii), "postconsumer waste" means a finished material that would normally be disposed of as solid waste, having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or publicly owned land. "Timber" does not include Christmas trees that are cultivated by agricultural methods or short-rotation hardwoods as defined in RCW 84.33.035
.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products obtained wholly from the processing of timber, short-rotation hardwoods as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional lumber; engineered wood products such as particleboard, oriented strand board, medium density fiberboard, and plywood; wood doors; wood windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a person reporting under the tax rate provided in this subsection (12) must file a complete annual tax performance report with the department under RCW 82.32.534
.
(g) Nothing in this subsection (12) may be construed to affect the taxation of any activity defined as a retail sale in RCW 82.04.050
(2) (b) or (c), defined as a wholesale sale in RCW 82.04.060
(2), or taxed under *RCW 82.04.280
(1)(g).
(13) Upon every person engaging within this state in inspecting, testing, labeling, and storing canned salmon owned by another person, as to such persons, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.5 percent.
[
2025 c 423 s 101
;
2025 c 420 s 112
. Prior:
2023 c 422 s 5
;
2023 c 286 s 3
;
2022 c 16 s 140
;
2021 c 145 s 7
;
2020 c 165 s 3
; prior:
2019 c 425 s 1
;
2019 c 336 s 4
;
2018 c 164 s 3
;
2017 c 135 s 11
; prior:
2015 3rd sp.s. c 6 s 602
;
2015 3rd sp.s. c 6 s 205
; prior:
2014 c 140 s 6
; (2014 c 140 s 5 expired July 1, 2015);
2014 c 140 s 4
; (2014 c 140 s 3 expired July 1, 2015);
2013 3rd sp.s. c 2 s 6
; (2013 3rd sp.s. c 2 s 5 expired July 1, 2015);
2013 2nd sp.s. c 13 s 203
; (2013 2nd sp.s. c 13 s 202 expired July 1, 2015); prior: (2012 2nd sp.s. c 6 s 602 expired July 1, 2015);
2012 2nd sp.s. c 6 s 204
;
2011 c 2 s 203
(Initiative Measure No. 1107, approved November 2, 2010);
2010 1st sp.s. c 23 s 506
; (2010 1st sp.s. c 23 s 505 expired June 10, 2010);
2010 c 114 s 107
; prior:
2009 c 479 s 64
;
2009 c 461 s 1
;
2009 c 162 s 34
; prior:
2008 c 296 s 1
;
2008 c 217 s 100
;
2008 c 81 s 4
; prior:
2007 c 54 s 6
;
2007 c 48 s 2
; prior:
2006 c 354 s 4
;
2006 c 300 s 1
; prior:
2005 c 513 s 2
;
2005 c 443 s 4
; prior:
2003 2nd sp.s. c 1 s 4
;
2003 2nd sp.s. c 1 s 3
;
2003 c 339 s 11
;
2003 c 261 s 11
;
2001 2nd sp.s. c 25 s 2
; prior:
1998 c 312 s 5
;
1998 c 311 s 2
; prior:
1998 c 170 s 4
;
1996 c 148 s 2
;
1996 c 115 s 1
; prior:
1995 2nd sp.s. c 12 s 1
;
1995 2nd sp.s. c 6 s 1
;
1993 sp.s. c 25 s 104
;
1993 c 492 s 304
;
1991 c 272 s 15
;
1990 c 21 s 2
;
1987 c 139 s 1
; prior:
1985 c 471 s 1
;
1985 c 135 s 2
;
1983 2nd ex.s. c 3 s 5
; prior:
1983 1st ex.s. c 66 s 4
;
1983 1st ex.s. c 55 s 4
;
1982 2nd ex.s. c 13 s 1
;
1982 c 10 s 16
; prior:
1981 c 178 s 1
;
1981 c 172 s 3
;
1979 ex.s. c 196 s 2
;
1975 1st ex.s. c 291 s 7
;
1971 ex.s. c 281 s 5
;
1971 ex.s. c 186 s 3
;
1969 ex.s. c 262 s 36
;
1967 ex.s. c 149 s 10
;
1965 ex.s. c 173 s 6
;
1961 c 15 s 82.04.260
; prior:
1959 c 211 s 2
;
1955 c 389 s 46
; prior:
1953 c 91 s 4
;
1951 2nd ex.s. c 28 s 4
; 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
NOTES:
Reviser's note:
*(1) RCW 82.04.280
was amended by 2025 c 9 s 2, changing subsection (1)(g) to subsection (1)(f).
(2) This section was amended by 2025 c 420 s 112 and by 2025 c 423 s 101, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Expiration date
—
2025 c 423 s 101:
"Section 101 of this act expires January 1, 2034." [
2025 c 423 s 403
.]
Effective date
—
2025 c 423 ss 101, 103, 104, 105, 201, and 202:
"Except for sections 102, 301, and 302 of this act, this act takes effect January 1, 2026." [
2025 c 423 s 406
.]
Finding
—
Intent
—
2025 c 423:
"(1) The legislature finds that, according to the most recent tax exemption study published by the department of revenue, there are currently 786 tax exemptions for the major state and local tax sources in Washington. The exemptions result in nearly $200,000,000,000 of taxpayer savings for the current biennium. The legislature acknowledges that certain tax preferences, such as the sales and use tax exemption for food and the working families tax credit, are intended to rebalance Washington's tax code for working people. However, the legislature further acknowledges that many existing tax preferences are the result of private interests securing preferential tax treatment.
(2) For that reason, the legislature enacted robust tax preference performance measures to create greater tax preference transparency and accountability and provide a framework for legislators to make informed decisions on the most efficient use of taxpayer dollars. To ensure tax exemptions meet certain public policy objectives, the joint legislative audit and review committee, a nonpartisan legislative agency, routinely evaluates tax preferences based on specific criteria provided in law and reports that information to the legislature each year. The reports provide accurate, comprehensive, unbiased data that policymakers may use to determine if a tax preference should be continued, modified, or repealed. Additionally, the citizen commission for performance measurement of tax preferences is responsible for selecting which tax preferences are reviewed each year and provides comment on the legislative auditor's reports. Both entities provide recommendations to the legislature on the effectiveness of a tax preference in meeting certain performance measures.
(3) Furthermore, the department of revenue assists in the tax preference evaluation process by collecting data from taxpayer beneficiaries and regularly reviewing changes in state and federal law. The analysis by the department and legislative auditor often reveals that a tax exemption is legally obsolete, meaning the specific legal conditions that existed when the exemption was enacted have since changed and the original legislative intent is no longer applicable. Additionally, some tax exemptions are simply not used and should be removed from the tax code to create better clarity for taxpayers.
(4) The legislature recognizes that more progress is needed for the state to have a fair and balanced tax system that provides sustainable and ample funding for public schools, health care, and other programs that protect the safety and well-being of the public, as well as social services that provide critical, basic-needs assistance for our state's most vulnerable residents. The legislature further recognizes that the tax preference performance review process provides an opportunity for policymakers to evaluate the tax code to ensure the state is not losing essential revenue due to inefficient or no longer applicable tax exemptions.
(5) Thus, the legislature intends to enact recommendations from the joint legislative audit and review committee, the citizen commission for performance measurement of tax preferences, and the department of revenue, including eliminating several obsolete tax preferences, clarifying legislative intent to better inform future tax preference performance reviews, adding expiration dates, and other actions aimed at creating a fair and balanced tax system." [
2025 c 423 s 1
.]
Necessity of act
—
2025 c 423:
"This act is necessary for the support of the state government and its existing public institutions." [
2025 c 423 s 402
.]
Expiration date
—
2025 c 420 s 112:
"Section 112 of this act expires January 1, 2034." [
2025 c 420 s 506
.]
Effective date
—
2025 c 420 ss 101-108 and 110-112:
See note following RCW 82.04.230
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
Necessity of act
—
2025 c 420:
See notes following RCW 82.04.230
.
Tax preference performance statement
—
2023 c 422 ss 2-5:
See note following RCW 82.04.4268
.
Findings
—
Effective date
—
Expiration date
—
2023 c 286:
See notes following RCW 82.04.759
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective date
—
2020 c 165:
See notes following RCW 82.04.2602
.
Effective date
—
2019 c 425:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2019." [
2019 c 425 s 2
.]
Findings
—
Intent
—
2019 c 336:
See notes following RCW 82.04.261
.
Tax preference performance statement
—
Effective date
—
2018 c 164:
See notes following RCW 82.08.900
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Expiration date
—
2015 3rd sp.s. c 6; 2012 2nd sp.s. c 6 s 602:
"Section 602 of this act expires July 1, 2015." [
2015 3rd sp.s. c 6 s 603
;
2012 2nd sp.s. c 6 s 704
.]
Findings
—
Intent
—
Tax preference performance statement
—
2015 3rd sp.s. c 6 s 602:
"(1) The legislature finds that over the last fifteen years, technological transformation and other developments have radically changed the newspaper industry business model, which remains in transition. The legislature further finds that the economic hardship wrought by this digital transformation has been substantial. The legislature finds that a strong and vibrant newspaper industry in Washington is beneficial to the state's citizens and to the conduct of good government at every level. The legislature further finds that advertising revenue of all United States newspapers fell from 63.5 billion dollars in 2000 to about twenty-three billion dollars in 2013, and is still falling. The legislature further finds that traditional news organizations' ability to support high quality news gathering and reporting relied primarily on a model in which advertisers paid to reach mass audiences attracted by newspapers. The legislature further finds that advertisers found it advantageous to pay to reach a mass audience because other advertising mediums were limited and less effective. The digital era has greatly fractured traditional spending by advertisers and turned this model on its head such that newspapers continue to require time to adapt so they may continue their public service mission. The legislature also finds that the business and occupation tax rate for the newspaper industry was pegged to the general manufacturing and wholesaling rate from 1937 until 2009, when the legislature extended tax relief to the industry due to this shift. It is the legislature's intent to extend this tax relief to the industry until its revenues and business model have stabilized. It is the legislature's further intent to provide a uniform tax rate for the industry to minimize the burden of reporting state business and occupation taxes for different types of revenue, which oftentimes are impossible to account for separately by the taxpayer.
(2)(a) This subsection is the tax preference performance statement for the newspaper tax preferences in section 602 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(b) The legislature categorizes this tax preference as one intended to provide temporary tax relief as described in RCW 82.32.808
(2)(e).
(c) It is the legislature's specific public policy objective to provide business and occupation tax relief to the newspaper industry as it continues to adjust to significant revenue shifts and technological changes. As a secondary public policy objective, it is the legislature's intent to provide a permanent uniform rate for the industry.
(d) To measure the effectiveness of the preference provided in this act in achieving the specific public policy objective described in (c) of this subsection, the joint legislative audit and review committee must evaluate year-to-year changes in gross revenue derived from all sources for newspaper firms claiming the preferential tax rate under RCW 82.04.260
(14). If the average year-to-year change in gross revenue is positive, including the last three years included in the tax preference review by the joint legislative audit and review committee, it is the legislature's intent to allow the tax preference to expire and to reinstate the traditional rate of 0.484 percent.
(e)(i) The information provided in the annual tax preference accountability report submitted by taxpayers as required by the department of revenue and taxpayer data provided by the department of revenue is intended to provide the informational basis for the evaluation under (d) of this subsection.
(ii) In addition to the data source described under (e)(i) of this subsection, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (d) of this subsection." [
2015 3rd sp.s. c 6 s 601
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
2015 3rd sp.s. c 6 ss 202-205:
See note following RCW 82.04.4266
.
Contingent effective date
—
2014 c 140 s 6:
"Section 6 of this act takes effect July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 39
.]
Contingent expiration date
—
2014 c 140 s 5:
"Section 5 of this act expires July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 38
.]
Effective date
—
2014 c 140 s 4:
"Section 4 of this act takes effect July 1, 2015." [
2014 c 140 s 37
.]
Expiration date
—
2014 c 140 s 3:
"Section 3 of this act expires July 1, 2015." [
2014 c 140 s 36
.]
Effective date
—
2013 3rd sp.s. c 2 s 6:
"Subject to section 2 of this act, section 6 of this act takes effect July 1, 2015." [
2013 3rd sp.s. c 2 s 16
.]
Expiration date
—
2013 3rd sp.s. c 2 s 5:
"Subject to section 2 of this act, section 5 of this act expires July 1, 2015." [
2013 3rd sp.s. c 2 s 15
.]
Contingent effective date
—
2013 3rd sp.s. c 2:
See RCW 82.32.850
.
Findings
—
Intent
—
2013 3rd sp.s. c 2:
See note following RCW 82.32.850
.
Effective date
—
2013 2nd sp.s. c 13 s 203:
"Section 203 of this act takes effect July 1, 2015." [
2013 2nd sp.s. c 13 s 1902
.]
Expiration date
—
2013 2nd sp.s. c 13 s 202:
"Section 202 of this act expires July 1, 2015." [
2013 2nd sp.s. c 13 s 1901
.]
Intent
—
2013 2nd sp.s. c 13:
"The intent of part II of this act is to incentivize the creation of additional jobs in Washington in the dairy industry and related industries that manufacture dairy-based products. More specifically, it is the intent of part II of this act to encourage infant formula producers to locate new facilities in Washington or expand existing facilities in Washington through an extension of a preferential business and occupation tax rate for dairy producers. It is the further intent of the legislature to provide this tax incentive in a fiscally responsible manner where the actual revenue impact of the legislation substantially conforms with the fiscal estimate provided in the legislation's fiscal note." [
2013 2nd sp.s. c 13 s 201
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
Existing rights, liabilities, or obligations
—
Effective dates
—
Contingent effective dates
—
2012 2nd sp.s. c 6:
See notes following RCW 82.04.29005
.
Findings
—
Construction
—
2011 c 2 (Initiative Measure No. 1107):
See notes following RCW 82.08.0293
.
Expiration date
—
2010 1st sp.s. c 23 ss 503, 505, and 514:
See note following RCW 82.04.4266
.
Effective date
—
2010 1st sp.s. c 23 ss 504, 506, and 515:
See note following RCW 82.04.4266
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Effective date
—
Contingent effective date
—
2009 c 461:
See note following RCW 82.04.280
.
Effective date
—
2009 c 162:
See note following RCW 48.03.020
.
Retroactive application
—
2008 c 296:
"Section 1 of this act applies retroactively to July 1, 2007, as well as prospectively." [
2008 c 296 s 2
.]
Severability
—
Effective date
—
2008 c 217:
See notes following RCW 48.03.020
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Effective date
—
2007 c 48:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007." [
2007 c 48 s 9
.]
Effective dates
—
2006 c 354:
See note following RCW 82.04.4268
.
Effective dates
—
Contingent effective date
—
2006 c 300:
See note following RCW 82.04.261
.
Effective dates
—
2005 c 513:
See note following RCW 82.04.4266
.
Finding
—
Intent
—
Effective date
—
2005 c 443:
See notes following RCW 82.08.0255
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Effective dates
—
2003 c 339:
See note following RCW 84.36.640
.
Effective dates
—
2003 c 261:
See note following RCW 84.36.635
.
Purpose
—
Intent
—
2001 2nd sp.s. c 25:
"The purpose of sections 2 and 3 of this act is to provide a tax rate for persons who manufacture dairy products that is commensurate to the rate imposed on certain other processors of agricultural commodities. This tax rate applies to persons who manufacture dairy products from raw materials such as fluid milk, dehydrated milk, or by-products of milk such as cream, buttermilk, whey, butter, or casein. It is not the intent of the legislature to provide this tax rate to persons who use dairy products as an ingredient or component of their manufactured product, such as milk-based soups or pizza. It is the intent that persons who manufacture products such as milk, cheese, yogurt, ice cream, whey, or whey products be subject to this rate." [
2001 2nd sp.s. c 25 s 1
.]
Part headings not law
—
2001 2nd sp.s. c 25:
"Part headings used in this act are not any part of the law." [
2001 2nd sp.s. c 25 s 7
.]
Effective date
—
Savings
—
1998 c 312:
See notes following RCW 82.04.332
.
Effective date
—
1998 c 170:
See note following RCW 82.04.331
.
Severability
—
Effective date
—
1996 c 148:
See notes following RCW 82.04.050
.
Effective date
—
1996 c 115:
"This act shall take effect July 1, 1996." [
1996 c 115 s 2
.]
Effective date
—
1995 2nd sp.s. c 12:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 12 s 2
.]
Effective date
—
1995 2nd sp.s. c 6:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 6 s 2
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Findings
—
Intent
—
1993 c 492:
See notes following RCW 43.20.050
.
Short title
—
Savings
—
Reservation of legislative power
—
Effective dates
—
1993 c 492:
See RCW 43.72.910
through
43.72.915
.
Effective dates
—
1991 c 272:
See RCW 81.108.901
.
Severability
—
1985 c 471:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1985 c 471 s 17
.]
Effective date
—
1985 c 471:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985." [
1985 c 471 s 18
.]
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
Severability
—
1982 2nd ex.s. c 13:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1982 2nd ex.s. c 13 s 2
.]
Effective date
—
1982 2nd ex.s. c 13:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect August 1, 1982." [
1982 2nd ex.s. c 13 s 3
.]
Severability
—
1982 c 10:
See note following RCW 6.13.080
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Effective date
—
1971 ex.s. c 186:
See note following RCW 82.04.110
.
PDF
RCW 82.04.260
Tax on manufacturers and processors of various foods and by-products
—
Research and development organizations
—
Travel agents
—
Certain international activities
—
Stevedoring and associated activities
—
Low-level waste disposers
—
Insurance producers and surplus line brokers
—
Hospitals
—
Commercial airplane activities
—
Timber product activities
—
Canned salmon processors.
(Effective January 1, 2034.)
(1) Upon every person engaging within this state in the business of manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business is equal to the value of the flour, pearl barley, oil, canola meal, or canola by-product manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2035, seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; or selling manufactured seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing, to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales, multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state;
(c)(i) Except as provided otherwise in (c)(iii) of this subsection, beginning July 1, 2035, until January 1, 2046, dairy products; or selling dairy products that the person has manufactured to purchasers who either transport in the ordinary course of business the goods out of state or purchasers who use such dairy products as an ingredient or component in the manufacturing of a dairy product; as to such persons the tax imposed is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state or sold to a manufacturer for use as an ingredient or component in the manufacturing of a dairy product.
(ii) For the purposes of this subsection (1)(c), "dairy products" means:
(A) Products, not including any cannabis-infused product, that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including by-products from the manufacturing of the dairy products, such as whey and casein; and
(B) Products comprised of not less than 70 percent dairy products that qualify under (c)(ii)(A) of this subsection, measured by weight or volume.
(iii) The preferential tax rate provided to taxpayers under this subsection (1)(c) does not apply to sales of dairy products on or after July 1, 2023, where a dairy product is used by the purchaser as an ingredient or component in the manufacturing in Washington of a dairy product;
(d)(i) Beginning July 1, 2035, fruits or vegetables by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables, or selling at wholesale fruits or vegetables manufactured by the seller by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables and sold to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business is equal to the value of the products manufactured or the gross proceeds derived from such sales multiplied by the rate of 0.138 percent. Sellers must keep and preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser in the ordinary course of business out of this state.
(ii) For purposes of this subsection (1)(d), "fruits" and "vegetables" do not include cannabis, useable cannabis, or cannabis-infused products; and
(e) Wood biomass fuel; as to such persons the amount of tax with respect to the business is equal to the value of wood biomass fuel manufactured, multiplied by the rate of 0.138 percent. For the purposes of this section, "wood biomass fuel" means a liquid or gaseous fuel that is produced from lignocellulosic feedstocks, including wood, forest, or field residue and dedicated energy crops, and that does not include wood treated with chemical preservations such as creosote, pentachlorophenol, or copper-chrome-arsenic.
(2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business is equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.5 percent.
(4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed is equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.
(5)(a) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was $250,000 or less; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(b) Upon every person engaging within this state in the business of acting as a travel agent or tour operator and whose annual taxable amount for the prior calendar year from such business was more than $250,000; as to such persons the amount of the tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent through June 30, 2019, and 0.9 percent beginning July 1, 2019.
(6) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities is equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business is equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection are exempt from payment of taxes imposed by chapter
82.16
RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.
(8)(a) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 70A.380.010
; as to such persons the amount of the tax with respect to such business is equal to the gross income of the business, excluding any fees imposed under chapter
70A.384
RCW, multiplied by the rate of 3.3 percent.
(b) If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state must be determined in accordance with the methods of apportionment required under RCW 82.04.460
.
(9) Upon every person engaging within this state as an insurance producer licensed under chapter
48.17
RCW or a surplus line broker licensed under chapter
48.15
RCW; as to such persons, the amount of the tax with respect to such licensed activities is equal to the gross income of such business multiplied by the rate of 0.5 percent.
(10) Upon every person engaging within this state in business as a hospital, as defined in chapter
70.41
RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities is equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter.
(11)(a) Beginning October 1, 2005, upon every person engaging within this state in the business of manufacturing commercial airplanes, or components of such airplanes, or making sales, at retail or wholesale, of commercial airplanes or components of such airplanes, manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007;
(ii) 0.2904 percent beginning July 1, 2007, through March 31, 2020; and
(iii)(A) Beginning April 1, 2020, through December 31, 2026, 0.484 percent, subject to any reduction required under (e) of this subsection (11). The tax rate in this subsection (11)(a)(iii) applies to all business activities described in this subsection (11)(a).
(B) Beginning January 1, 2027, 0.5 percent, subject to any reduction required under (e) of this subsection (11). The tax rate in this subsection (11)(a)(iii) applies to all business activities described in this subsection (11)(a).
(b) Beginning July 1, 2008, upon every person who is not eligible to report under the provisions of (a) of this subsection (11) and is engaging within this state in the business of manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes, or making sales, at retail or wholesale, of such tooling manufactured by the seller, as to such persons the amount of tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured and the gross proceeds of sales of the product manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of:
(i) 0.2904 percent through March 31, 2020;
(ii) Beginning April 1, 2020, the following rates, which are subject to any reduction required under (e) of this subsection (11):
(A) The rate under RCW 82.04.250
(1) on the business of making retail sales of tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes; and
(B) 0.484 percent on all other business activities described in this subsection (11)(b); and
(iii) Beginning January 1, 2027, the following rates, which are subject to any reduction required under (e) of this subsection (11):
(A) The rate under RCW 82.04.250
(1) on the business of making retail sales of tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes; and
(B) 0.5 percent on all other business activities described in this subsection (11)(b).
(c) For the purposes of this subsection (11), "commercial airplane" and "component" have the same meanings as provided in RCW 82.32.550
.
(d)(i) In addition to all other requirements under this title, a person reporting under the tax rate provided in this subsection (11) must file a complete annual tax performance report with the department under RCW 82.32.534
. However, this requirement does not apply to persons reporting under the tax rate in (a)(iii) of this subsection (11), so long as that rate remains 0.5 percent, or under any of the tax rates in (b)(ii)(A) and (B) of this subsection (11), so long as those tax rates remain the rate imposed pursuant to RCW 82.04.250
(1) and 0.484 percent, respectively.
(ii) Nothing in (d)(i) of this subsection (11) may be construed as affecting the obligation of a person reporting under a tax rate provided in this subsection (11) to file a complete annual tax performance report with the department under RCW 82.32.534
: (A) Pursuant to another provision of this title as a result of claiming a tax credit or exemption; or (B) pursuant to (d)(i) of this subsection (11) as a result of claiming the tax rates in (a)(ii) or (b)(i) of this subsection (11) for periods ending before April 1, 2020.
(e)(i) After March 31, 2021, the tax rates under (a)(iii) and (b)(ii) of this subsection (11) must be reduced to 0.357 percent provided the conditions in RCW 82.04.2602
are met. The effective date of the rates authorized under this subsection (11)(e) must occur on the first day of the next calendar quarter that is at least 60 days after the department receives the last of the two written notices pursuant to RCW 82.04.2602
(3) and (4).
(ii) Both a significant commercial airplane manufacturer separately and the rest of the aerospace industry as a whole, receiving the rate of 0.357 percent under this subsection (11)(e) are subject to the aerospace apprenticeship utilization rates required under RCW 49.04.220
by April 1, 2026, or five years after the effective date of the 0.357 percent rate authorized under this subsection (11)(e), whichever is later, as determined by the department of labor and industries.
(iii) The provisions of RCW 82.32.805
and
82.32.808
do not apply to this subsection (11)(e).
(f)(i) Except as provided in (f)(ii) of this subsection (11), this subsection (11) does not apply on and after July 1, 2040.
(ii) With respect to the manufacturing of commercial airplanes or making sales, at retail or wholesale, of commercial airplanes, this subsection (11) does not apply on and after July 1st of the year in which the department makes a determination that any final assembly or wing assembly of any version or variant of a commercial airplane that is the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
has been sited outside the state of Washington. This subsection (11)(f)(ii) only applies to the manufacturing or sale of commercial airplanes that are the basis of a siting of a significant commercial airplane manufacturing program in the state under RCW 82.32.850
. This subsection (11)(f)(ii) continues to apply during the time that a person is subject to the tax rate in (a)(iii) of this subsection (11).
(g) For the purposes of this subsection, "a significant commercial airplane manufacturer" means a manufacturer of commercial airplanes with at least 50,000 full-time employees in Washington as of January 1, 2021.
(12)(a) Until July 1, 2045, upon every person engaging within this state in the business of extracting timber or extracting for hire timber; as to such persons the amount of tax with respect to the business is, in the case of extractors, equal to the value of products, including by-products, extracted, or in the case of extractors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(b) Until July 1, 2045, upon every person engaging within this state in the business of manufacturing or processing for hire: (i) Timber into timber products or wood products; (ii) timber products into other timber products or wood products; or (iii) products defined in RCW 19.27.570
(1); as to such persons the amount of the tax with respect to the business is, in the case of manufacturers, equal to the value of products, including by-products, manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(c) Until July 1, 2045, upon every person engaging within this state in the business of selling at wholesale: (i) Timber extracted by that person; (ii) timber products manufactured by that person from timber or other timber products; (iii) wood products manufactured by that person from timber or timber products; or (iv) products defined in RCW 19.27.570
(1) manufactured by that person; as to such persons the amount of the tax with respect to the business is equal to the gross proceeds of sales of the timber, timber products, wood products, or products defined in RCW 19.27.570
(1) multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2045.
(d) Until July 1, 2045, upon every person engaging within this state in the business of selling standing timber; as to such persons the amount of the tax with respect to the business is equal to the gross income of the business multiplied by the rate of 0.2904 percent. For purposes of this subsection (12)(d), "selling standing timber" means the sale of timber apart from the land, where the buyer is required to sever the timber within 30 months from the date of the original contract, regardless of the method of payment for the timber and whether title to the timber transfers before, upon, or after severance.
(e) For purposes of this subsection, the following definitions apply:
(i) "Biocomposite surface products" means surface material products containing, by weight or volume, more than 50 percent recycled paper and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven cellulosic fibers held together largely by hydrogen bonding. "Paper and paper products" includes newsprint; office, printing, fine, and pressure-sensitive papers; paper napkins, towels, and toilet tissue; kraft bag, construction, and other kraft industrial papers; paperboard, liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and related types of cellulosic products containing primarily, by weight or volume, cellulosic materials. "Paper and paper products" does not include books, newspapers, magazines, periodicals, and other printed publications, advertising materials, calendars, and similar types of printed materials.
(iii) "Recycled paper" means paper and paper products having 50 percent or more of their fiber content that comes from postconsumer waste. For purposes of this subsection (12)(e)(iii), "postconsumer waste" means a finished material that would normally be disposed of as solid waste, having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or publicly owned land. "Timber" does not include Christmas trees that are cultivated by agricultural methods or short-rotation hardwoods as defined in RCW 84.33.035
.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products obtained wholly from the processing of timber, short-rotation hardwoods as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional lumber; engineered wood products such as particleboard, oriented strand board, medium density fiberboard, and plywood; wood doors; wood windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a person reporting under the tax rate provided in this subsection (12) must file a complete annual tax performance report with the department under RCW 82.32.534
.
(g) Nothing in this subsection (12) may be construed to affect the taxation of any activity defined as a retail sale in RCW 82.04.050
(2) (b) or (c), defined as a wholesale sale in RCW 82.04.060
(2), or taxed under *RCW 82.04.280
(1)(g).
(13) Upon every person engaging within this state in inspecting, testing, labeling, and storing canned salmon owned by another person, as to such persons, the amount of tax with respect to such activities is equal to the gross income derived from such activities multiplied by the rate of 0.5 percent.
(14)(a) Upon every person engaging within this state in the business of printing a newspaper, publishing a newspaper, or both, the amount of tax on such business is equal to the gross income of the business multiplied by the rate of 0.35 percent until July 1, 2024, and 0.5 percent thereafter.
(b) A person reporting under the tax rate provided in this subsection (14) must file a complete annual tax performance report with the department under RCW 82.32.534
.
[
2025 c 423 s 102
;
2025 c 420 s 113
. Prior:
2023 c 422 s 5
;
2023 c 286 s 3
;
2022 c 16 s 140
;
2021 c 145 s 7
;
2020 c 165 s 3
; prior:
2019 c 425 s 1
;
2019 c 336 s 4
;
2018 c 164 s 3
;
2017 c 135 s 11
; prior:
2015 3rd sp.s. c 6 s 602
;
2015 3rd sp.s. c 6 s 205
; prior:
2014 c 140 s 6
; (2014 c 140 s 5 expired July 1, 2015);
2014 c 140 s 4
; (2014 c 140 s 3 expired July 1, 2015);
2013 3rd sp.s. c 2 s 6
; (2013 3rd sp.s. c 2 s 5 expired July 1, 2015);
2013 2nd sp.s. c 13 s 203
; (2013 2nd sp.s. c 13 s 202 expired July 1, 2015); prior: (2012 2nd sp.s. c 6 s 602 expired July 1, 2015);
2012 2nd sp.s. c 6 s 204
;
2011 c 2 s 203
(Initiative Measure No. 1107, approved November 2, 2010);
2010 1st sp.s. c 23 s 506
; (2010 1st sp.s. c 23 s 505 expired June 10, 2010);
2010 c 114 s 107
; prior:
2009 c 479 s 64
;
2009 c 461 s 1
;
2009 c 162 s 34
; prior:
2008 c 296 s 1
;
2008 c 217 s 100
;
2008 c 81 s 4
; prior:
2007 c 54 s 6
;
2007 c 48 s 2
; prior:
2006 c 354 s 4
;
2006 c 300 s 1
; prior:
2005 c 513 s 2
;
2005 c 443 s 4
; prior:
2003 2nd sp.s. c 1 s 4
;
2003 2nd sp.s. c 1 s 3
;
2003 c 339 s 11
;
2003 c 261 s 11
;
2001 2nd sp.s. c 25 s 2
; prior:
1998 c 312 s 5
;
1998 c 311 s 2
; prior:
1998 c 170 s 4
;
1996 c 148 s 2
;
1996 c 115 s 1
; prior:
1995 2nd sp.s. c 12 s 1
;
1995 2nd sp.s. c 6 s 1
;
1993 sp.s. c 25 s 104
;
1993 c 492 s 304
;
1991 c 272 s 15
;
1990 c 21 s 2
;
1987 c 139 s 1
; prior:
1985 c 471 s 1
;
1985 c 135 s 2
;
1983 2nd ex.s. c 3 s 5
; prior:
1983 1st ex.s. c 66 s 4
;
1983 1st ex.s. c 55 s 4
;
1982 2nd ex.s. c 13 s 1
;
1982 c 10 s 16
; prior:
1981 c 178 s 1
;
1981 c 172 s 3
;
1979 ex.s. c 196 s 2
;
1975 1st ex.s. c 291 s 7
;
1971 ex.s. c 281 s 5
;
1971 ex.s. c 186 s 3
;
1969 ex.s. c 262 s 36
;
1967 ex.s. c 149 s 10
;
1965 ex.s. c 173 s 6
;
1961 c 15 s 82.04.260
; prior:
1959 c 211 s 2
;
1955 c 389 s 46
; prior:
1953 c 91 s 4
;
1951 2nd ex.s. c 28 s 4
; 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
NOTES:
Reviser's note:
*(1) RCW 82.04.280
was amended by 2025 c 9 s 2, changing subsection (1)(g) to subsection (1)(f).
(2) This section was amended by 2025 c 420 s 113 and by 2025 c 423 s 102, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Effective date
—
2025 c 423 s 102:
"Section 102 of this act takes effect January 1, 2034." [
2025 c 423 s 404
.]
Finding
—
Intent
—
2025 c 423:
"(1) The legislature finds that, according to the most recent tax exemption study published by the department of revenue, there are currently 786 tax exemptions for the major state and local tax sources in Washington. The exemptions result in nearly $200,000,000,000 of taxpayer savings for the current biennium. The legislature acknowledges that certain tax preferences, such as the sales and use tax exemption for food and the working families tax credit, are intended to rebalance Washington's tax code for working people. However, the legislature further acknowledges that many existing tax preferences are the result of private interests securing preferential tax treatment.
(2) For that reason, the legislature enacted robust tax preference performance measures to create greater tax preference transparency and accountability and provide a framework for legislators to make informed decisions on the most efficient use of taxpayer dollars. To ensure tax exemptions meet certain public policy objectives, the joint legislative audit and review committee, a nonpartisan legislative agency, routinely evaluates tax preferences based on specific criteria provided in law and reports that information to the legislature each year. The reports provide accurate, comprehensive, unbiased data that policymakers may use to determine if a tax preference should be continued, modified, or repealed. Additionally, the citizen commission for performance measurement of tax preferences is responsible for selecting which tax preferences are reviewed each year and provides comment on the legislative auditor's reports. Both entities provide recommendations to the legislature on the effectiveness of a tax preference in meeting certain performance measures.
(3) Furthermore, the department of revenue assists in the tax preference evaluation process by collecting data from taxpayer beneficiaries and regularly reviewing changes in state and federal law. The analysis by the department and legislative auditor often reveals that a tax exemption is legally obsolete, meaning the specific legal conditions that existed when the exemption was enacted have since changed and the original legislative intent is no longer applicable. Additionally, some tax exemptions are simply not used and should be removed from the tax code to create better clarity for taxpayers.
(4) The legislature recognizes that more progress is needed for the state to have a fair and balanced tax system that provides sustainable and ample funding for public schools, health care, and other programs that protect the safety and well-being of the public, as well as social services that provide critical, basic-needs assistance for our state's most vulnerable residents. The legislature further recognizes that the tax preference performance review process provides an opportunity for policymakers to evaluate the tax code to ensure the state is not losing essential revenue due to inefficient or no longer applicable tax exemptions.
(5) Thus, the legislature intends to enact recommendations from the joint legislative audit and review committee, the citizen commission for performance measurement of tax preferences, and the department of revenue, including eliminating several obsolete tax preferences, clarifying legislative intent to better inform future tax preference performance reviews, adding expiration dates, and other actions aimed at creating a fair and balanced tax system." [
2025 c 423 s 1
.]
Necessity of act
—
2025 c 423:
"This act is necessary for the support of the state government and its existing public institutions." [
2025 c 423 s 402
.]
Effective date
—
2025 c 420 s 113:
"Section 113 of this act takes effect January 1, 2034." [
2025 c 420 s 505
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
Necessity of act
—
2025 c 420:
See notes following RCW 82.04.230
.
Tax preference performance statement
—
2023 c 422 ss 2-5:
See note following RCW 82.04.4268
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective date
—
2020 c 165:
See notes following RCW 82.04.2602
.
Effective date
—
2019 c 425:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2019." [
2019 c 425 s 2
.]
Findings
—
Intent
—
2019 c 336:
See notes following RCW 82.04.261
.
Tax preference performance statement
—
Effective date
—
2018 c 164:
See notes following RCW 82.08.900
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Expiration date
—
2015 3rd sp.s. c 6; 2012 2nd sp.s. c 6 s 602:
"Section 602 of this act expires July 1, 2015." [
2015 3rd sp.s. c 6 s 603
;
2012 2nd sp.s. c 6 s 704
.]
Findings
—
Intent
—
Tax preference performance statement
—
2015 3rd sp.s. c 6 s 602:
"(1) The legislature finds that over the last fifteen years, technological transformation and other developments have radically changed the newspaper industry business model, which remains in transition. The legislature further finds that the economic hardship wrought by this digital transformation has been substantial. The legislature finds that a strong and vibrant newspaper industry in Washington is beneficial to the state's citizens and to the conduct of good government at every level. The legislature further finds that advertising revenue of all United States newspapers fell from 63.5 billion dollars in 2000 to about twenty-three billion dollars in 2013, and is still falling. The legislature further finds that traditional news organizations' ability to support high quality news gathering and reporting relied primarily on a model in which advertisers paid to reach mass audiences attracted by newspapers. The legislature further finds that advertisers found it advantageous to pay to reach a mass audience because other advertising mediums were limited and less effective. The digital era has greatly fractured traditional spending by advertisers and turned this model on its head such that newspapers continue to require time to adapt so they may continue their public service mission. The legislature also finds that the business and occupation tax rate for the newspaper industry was pegged to the general manufacturing and wholesaling rate from 1937 until 2009, when the legislature extended tax relief to the industry due to this shift. It is the legislature's intent to extend this tax relief to the industry until its revenues and business model have stabilized. It is the legislature's further intent to provide a uniform tax rate for the industry to minimize the burden of reporting state business and occupation taxes for different types of revenue, which oftentimes are impossible to account for separately by the taxpayer.
(2)(a) This subsection is the tax preference performance statement for the newspaper tax preferences in section 602 of this act. The performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(b) The legislature categorizes this tax preference as one intended to provide temporary tax relief as described in RCW 82.32.808
(2)(e).
(c) It is the legislature's specific public policy objective to provide business and occupation tax relief to the newspaper industry as it continues to adjust to significant revenue shifts and technological changes. As a secondary public policy objective, it is the legislature's intent to provide a permanent uniform rate for the industry.
(d) To measure the effectiveness of the preference provided in this act in achieving the specific public policy objective described in (c) of this subsection, the joint legislative audit and review committee must evaluate year-to-year changes in gross revenue derived from all sources for newspaper firms claiming the preferential tax rate under RCW 82.04.260
(14). If the average year-to-year change in gross revenue is positive, including the last three years included in the tax preference review by the joint legislative audit and review committee, it is the legislature's intent to allow the tax preference to expire and to reinstate the traditional rate of 0.484 percent.
(e)(i) The information provided in the annual tax preference accountability report submitted by taxpayers as required by the department of revenue and taxpayer data provided by the department of revenue is intended to provide the informational basis for the evaluation under (d) of this subsection.
(ii) In addition to the data source described under (e)(i) of this subsection, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (d) of this subsection." [
2015 3rd sp.s. c 6 s 601
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
2015 3rd sp.s. c 6 ss 202-205:
See note following RCW 82.04.4266
.
Contingent effective date
—
2014 c 140 s 6:
"Section 6 of this act takes effect July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 39
.]
Contingent expiration date
—
2014 c 140 s 5:
"Section 5 of this act expires July 1, 2015, subject to the contingency stated in section 2, chapter 2, Laws of 2013 3rd sp. sess." [
2014 c 140 s 38
.]
Effective date
—
2014 c 140 s 4:
"Section 4 of this act takes effect July 1, 2015." [
2014 c 140 s 37
.]
Expiration date
—
2014 c 140 s 3:
"Section 3 of this act expires July 1, 2015." [
2014 c 140 s 36
.]
Effective date
—
2013 3rd sp.s. c 2 s 6:
"Subject to section 2 of this act, section 6 of this act takes effect July 1, 2015." [
2013 3rd sp.s. c 2 s 16
.]
Expiration date
—
2013 3rd sp.s. c 2 s 5:
"Subject to section 2 of this act, section 5 of this act expires July 1, 2015." [
2013 3rd sp.s. c 2 s 15
.]
Contingent effective date
—
2013 3rd sp.s. c 2:
See RCW 82.32.850
.
Findings
—
Intent
—
2013 3rd sp.s. c 2:
See note following RCW 82.32.850
.
Effective date
—
2013 2nd sp.s. c 13 s 203:
"Section 203 of this act takes effect July 1, 2015." [
2013 2nd sp.s. c 13 s 1902
.]
Expiration date
—
2013 2nd sp.s. c 13 s 202:
"Section 202 of this act expires July 1, 2015." [
2013 2nd sp.s. c 13 s 1901
.]
Intent
—
2013 2nd sp.s. c 13:
"The intent of part II of this act is to incentivize the creation of additional jobs in Washington in the dairy industry and related industries that manufacture dairy-based products. More specifically, it is the intent of part II of this act to encourage infant formula producers to locate new facilities in Washington or expand existing facilities in Washington through an extension of a preferential business and occupation tax rate for dairy producers. It is the further intent of the legislature to provide this tax incentive in a fiscally responsible manner where the actual revenue impact of the legislation substantially conforms with the fiscal estimate provided in the legislation's fiscal note." [
2013 2nd sp.s. c 13 s 201
.]
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.
Existing rights, liabilities, or obligations
—
Effective dates
—
Contingent effective dates
—
2012 2nd sp.s. c 6:
See notes following RCW 82.04.29005
.
Findings
—
Construction
—
2011 c 2 (Initiative Measure No. 1107):
See notes following RCW 82.08.0293
.
Expiration date
—
2010 1st sp.s. c 23 ss 503, 505, and 514:
See note following RCW 82.04.4266
.
Effective date
—
2010 1st sp.s. c 23 ss 504, 506, and 515:
See note following RCW 82.04.4266
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Effective date
—
Contingent effective date
—
2009 c 461:
See note following RCW 82.04.280
.
Effective date
—
2009 c 162:
See note following RCW 48.03.020
.
Retroactive application
—
2008 c 296:
"Section 1 of this act applies retroactively to July 1, 2007, as well as prospectively." [
2008 c 296 s 2
.]
Severability
—
Effective date
—
2008 c 217:
See notes following RCW 48.03.020
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Effective date
—
2007 c 48:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007." [
2007 c 48 s 9
.]
Effective dates
—
2006 c 354:
See note following RCW 82.04.4268
.
Effective dates
—
Contingent effective date
—
2006 c 300:
See note following RCW 82.04.261
.
Effective dates
—
2005 c 513:
See note following RCW 82.04.4266
.
Finding
—
Intent
—
Effective date
—
2005 c 443:
See notes following RCW 82.08.0255
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Effective dates
—
2003 c 339:
See note following RCW 84.36.640
.
Effective dates
—
2003 c 261:
See note following RCW 84.36.635
.
Purpose
—
Intent
—
2001 2nd sp.s. c 25:
"The purpose of sections 2 and 3 of this act is to provide a tax rate for persons who manufacture dairy products that is commensurate to the rate imposed on certain other processors of agricultural commodities. This tax rate applies to persons who manufacture dairy products from raw materials such as fluid milk, dehydrated milk, or by-products of milk such as cream, buttermilk, whey, butter, or casein. It is not the intent of the legislature to provide this tax rate to persons who use dairy products as an ingredient or component of their manufactured product, such as milk-based soups or pizza. It is the intent that persons who manufacture products such as milk, cheese, yogurt, ice cream, whey, or whey products be subject to this rate." [
2001 2nd sp.s. c 25 s 1
.]
Part headings not law
—
2001 2nd sp.s. c 25:
"Part headings used in this act are not any part of the law." [
2001 2nd sp.s. c 25 s 7
.]
Effective date
—
Savings
—
1998 c 312:
See notes following RCW 82.04.332
.
Effective date
—
1998 c 170:
See note following RCW 82.04.331
.
Severability
—
Effective date
—
1996 c 148:
See notes following RCW 82.04.050
.
Effective date
—
1996 c 115:
"This act shall take effect July 1, 1996." [
1996 c 115 s 2
.]
Effective date
—
1995 2nd sp.s. c 12:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 12 s 2
.]
Effective date
—
1995 2nd sp.s. c 6:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 6 s 2
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Findings
—
Intent
—
1993 c 492:
See notes following RCW 43.20.050
.
Short title
—
Savings
—
Reservation of legislative power
—
Effective dates
—
1993 c 492:
See RCW 43.72.910
through
43.72.915
.
Effective dates
—
1991 c 272:
See RCW 81.108.901
.
Severability
—
1985 c 471:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1985 c 471 s 17
.]
Effective date
—
1985 c 471:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985." [
1985 c 471 s 18
.]
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
Severability
—
1982 2nd ex.s. c 13:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1982 2nd ex.s. c 13 s 2
.]
Effective date
—
1982 2nd ex.s. c 13:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect August 1, 1982." [
1982 2nd ex.s. c 13 s 3
.]
Severability
—
1982 c 10:
See note following RCW 6.13.080
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Effective date
—
1971 ex.s. c 186:
See note following RCW 82.04.110
.
RCW 82.04.2602
Tax on commercial airplane activities
—
Conditions for rate reduction.
The rate of 0.357 percent authorized pursuant to RCW 82.04.260
(11)(e) may be imposed only if the following conditions are met:
(1) The department of commerce verifies with the United States trade representative that the United States and the European Union have entered into a written agreement that resolves any world trade organization disputes involving large civil aircraft.
(2) Such agreement expressly allows a business and occupation tax rate reduction for commercial airplane manufacturers to 0.357 percent or less.
(3) The department of commerce notifies the department in writing that the conditions of subsections (1) and (2) of this section are met and provides a copy of the agreement between the United States and the European Union or other document providing for the business and occupation tax rate reduction to the department.
(4) The department of labor and industries notifies the department in writing that a significant commercial airplane manufacturer has at least a three-tenths of one percent aerospace apprenticeship utilization rate of its qualified apprenticeable workforce in Washington, as defined in RCW 49.04.220
.
(5) Within thirty days of receiving the last of the written notices described in subsections (3) and (4) of this section, the department must provide written notice to the chief clerk of the house of representatives, the secretary of the senate, the office of the code reviser, and others as deemed appropriate by the department, that the tax rates in RCW 82.04.260
(11)(e) are reduced to 0.357 percent and the effective date of the rate reduction.
(6) Any rate reduction to 0.357 percent pursuant to this section and RCW 82.04.260
(11)(e) must occur on the first day of the next calendar quarter that is at least sixty days after the department receives the last of the written notices described in subsections (3) and (4) of this section.
(7) For the purpose of this section, "world trade organization disputes involving large civil airplanes" means any disputes filed by the United States or the European Union prior to March 25, 2020, that involve either allegations of subsidies to large civil airplanes, or allegations of taxes imposed by Washington on commercial airplanes, or both.
[
2020 c 165 s 2
.]
NOTES:
Findings
—
Intent
—
2020 c 165:
"(1) Over the past two decades, the legislature has taken significant action to promote a positive business environment for Washington's aerospace industry. The legislature finds that the industry plays a significant role not only in the health of Washington's economy, but also in the health of the United States economy. Moreover, the domestic aerospace industry has faced significant challenges with the large subsidies provided to international competitors.
(2) The legislature finds that a commitment to the elimination of trade barriers for aerospace as well as several other vital Washington exports is important. The legislature also wishes to help bring the United States into full compliance with a recent world trade organization ruling asserting Washington's business and occupation tax rate of 0.2904 percent violates world trade organization rules. The legislature hopes this action to help bring the United States into compliance will end the threat of retaliatory tariffs against many of Washington's industries, including agricultural products, fish, wine, and intellectual property.
(3) The legislature appreciates the state aerospace industry's commitment to complying with the world trade organization ruling by advocating for the repeal of the preferential business and occupation tax. The legislature hopes that the repeal of this Washington aerospace preference will ensure continued economic success and competitiveness for the industry as well as many other industries. The legislature further hopes that the repeal of the 0.2904 business and occupation tax will allow for the complete resolution of all trade disputes surrounding large civil aircraft.
(4) The legislature further finds that the people of Washington benefit from the presence of the aerospace industry in Washington state. The industry provides good wages and benefits for thousands of engineers, technicians, mechanics, and support staff working across the state. Furthermore, the legislature has a goal of preserving and growing employment in Washington state. The legislature intends that the future consideration of all tax measures will work to achieve this goal in a manner compliant with the world trade organization." [
2020 c 165 s 1
.]
Effective date
—
2020 c 165:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 25, 2020]." [
2020 c 165 s 6
.]
RCW 82.04.261
Surcharge on timber and wood product manufacturers, extractors, and wholesalers.
(Expires July 1, 2045.)
(1) In addition to the taxes imposed under RCW 82.04.260
(12), a surcharge is imposed on those persons who are subject to any of the taxes imposed under RCW 82.04.260
(12). Except as otherwise provided in this section, the surcharge is equal to 0.052 percent. The surcharge is added to the rates provided in RCW 82.04.260
(12) (a), (b), (c), and (d).
(2) All receipts from the surcharge imposed under this section must be deposited into the forest and fish support account created in RCW 76.09.405, with any receipts above eight million dollars per biennium specifically used as additional funding for tribal participation grants.
(3)(a) The surcharge imposed under this section is suspended if:
(i) Before July 1, 2024, receipts from the surcharge total at least eight million five hundred thousand dollars during any fiscal biennium;
(ii) Between July 1, 2024, through June 30, 2029, receipts from the surcharge total at least nine million dollars during any fiscal biennium; and
(iii) After June 30, 2029, the receipts from the surcharge total at least nine million five hundred thousand dollars during any fiscal biennium.
(b) The suspension of the surcharge under this subsection (3) takes effect on the first day of the calendar month that is at least thirty days after the end of the month during which the department determines that receipts from the surcharge total the values specified in this subsection (3) during the fiscal biennium. The surcharge is imposed again at the beginning of the following fiscal biennium.
(4) This section expires July 1, 2045.
[
2021 c 145 s 8
;
2019 c 336 s 5
;
2017 c 323 s 501
;
2010 1st sp.s. c 23 s 510
. Prior:
2007 c 54 s 7
;
2007 c 48 s 4
;
2006 c 300 s 2
.]
NOTES:
Finding
—
Intent
—
2019 c 336:
"The legislature finds that while many parts of the state are thriving economically, some rural and distressed communities have struggled to keep pace. These communities represent significant opportunity for economic growth and innovation. However, businesses and entrepreneurs often find it difficult to obtain the capital they need to expand and grow in these areas. Therefore, it is the intent of the legislature to study the creation of a program to incentivize private investments and job creation in rural and distressed communities while ensuring no loss of revenue to the state." [
2019 c 336 s 1
.]
Findings
—
2019 c 336:
"(1) The legislature finds that the Washington state forest practices habitat conservation plan was approved in 2006 by the United States fish and wildlife service and the national oceanic and atmospheric administration's marine fisheries service. The legislature further finds that the conservation plan protects habitat of aquatic species, supports economically viable and healthy forests, and creates regulatory stability for landowners. The legislature further finds that funding for the adaptive management program and participation grants are required to implement the forest and fish agreement and meet the goals of the conservation plan. The legislature further finds that the surcharge on the timber products business and occupation tax rate was agreed to by the forest products industry, tribal leaders, and stakeholders as a way to provide funding and safeguard the future of the conservation plan. The legislature further finds that the forestry industry assumed significant financial obligation with the enactment of this conservation plan, in exchange for operational certainty under the endangered species act. Therefore, the legislature concludes that the timber products business and occupation tax rate and the surcharge should continue until the expiration date of the forest and fish agreement, in 2056.
(2) The legislature finds that Washington has one of the strongest economies in the country. However, the local economies in some rural counties continue to struggle. The legislature further finds that the economic prosperity of our state must be shared by all of our communities. The legislature further finds that forest product sectors provide family-wage jobs in economically struggling areas of the state. The legislature further finds that in 2017 the Washington forest products industry, directly and indirectly, employed one hundred one thousand workers, earning 5.5 billion dollars in wages. Therefore, the legislature concludes that the forest products industries support our local rural economies and contribute towards the effort to lower unemployment rates across the state, especially in rural areas." [
2019 c 336 s 3
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Savings
—
2007 c 48:
"The expiration of RCW 82.04.261
does not affect any existing right acquired or liability or obligation incurred under that section or under any rule or order adopted under that section, nor does it affect any proceeding instituted under that section." [
2007 c 48 s 8
.]
Effective date
—
2007 c 48:
See note following RCW 82.04.260
.
Effective dates
—
Contingent effective date
—
2006 c 300:
"(1) Sections 1, 3, 4 through 6, and 8 through 12 of this act take effect July 1, 2006.
(2) Section 2 of this act takes effect July 1, 2007.
(3) Section 7 of this act takes effect if the contingency in *section 12 of this act occurs." [
2006 c 300 s 13
.]
*Reviser's note:
See RCW 82.32.790
.
RCW 82.04.263
Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development.
(Effective until January 1, 2027.)
(1) Upon every person engaging within this state in the business of cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business multiplied by the rate of 0.471 percent.
(2) For the purposes of this chapter, "cleaning up radioactive waste and other by-products of weapons production and nuclear research and development" means:
(a) The activities of handling, storing, treating, immobilizing, stabilizing, or disposing of radioactive waste, radioactive tank waste and capsules, nonradioactive hazardous solid and liquid wastes, or spent nuclear fuel;
(b) Spent nuclear fuel conditioning;
(c) Removal of contamination in soils and groundwater;
(d) Decontamination and decommissioning of facilities; and
(e) Services supporting the performance of cleanup. For the purposes of this subsection (2)(e), a service supports the performance of cleanup if it:
(i) Is within the scope of work under a clean-up contract with the United States department of energy; or
(ii) Assists in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy under a subcontract entered into with the prime contractor or another subcontractor in furtherance of a clean-up contract between the United States department of energy and a prime contractor.
(3) A service does not assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy if the same services are routinely provided to businesses not engaged in clean-up activities, except that the following services are always deemed to contribute to the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy:
(a) Information technology and computer support services;
(b) Services rendered in respect to infrastructure; and
(c) Security, safety, and health services.
(4) The legislature intends that the examples provided in this subsection be used as a guideline when determining whether a service is "routinely provided to businesses not engaged in clean-up activities" as that phrase is used in subsection (3) of this section.
(a) The radioactive waste clean-up classification does not apply to general accounting services but does apply to performance audits performed for persons cleaning up radioactive waste.
(b) The radioactive waste clean-up classification does not apply to general legal services but does apply to those legal services that assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy. Thus, legal services provided to contest any local, state, or federal tax liability or to defend a company against a workers' compensation claim arising from a worksite injury do not qualify for the radioactive waste clean-up classification. But, legal services related to the resolution of a contractual dispute between the parties to a clean-up contract between the United States department of energy and a prime contractor do qualify.
(c) General office janitorial services do not qualify for the radioactive waste clean-up classification, but the specialized cleaning of equipment exposed to radioactive waste does qualify.
[
2009 c 469 s 202
;
1996 c 112 s 3
.]
NOTES:
Finding
—
Intent
—
2009 c 469:
"(1) The legislature finds that the cleaning up of radioactive waste at the Hanford site is crucial to the environment in this state. The legislature intends to include services supporting the cleanup within the radioactive waste clean-up business and occupation tax classification, but it is not the legislature's intent to extend the radioactive waste clean-up classification to all business activities conducted at the Hanford site or performed for persons engaged in the performance of cleanup.
(2) It is the legislature's intent in enacting this legislation to ensure that the radioactive waste clean-up business and occupation tax classification applies to all services contributing to the performance of a clean-up project at the Hanford site other than services that are routinely provided to any business, including businesses that are not engaged in clean-up activities." [
2009 c 469 s 201
.]
Effective date
—
1996 c 112:
See note following RCW 82.04.050
.
PDF
RCW 82.04.263
Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development.
(Effective January 1, 2027.)
(1) Upon every person engaging within this state in the business of cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business multiplied by the rate of 0.5 percent.
(2) For the purposes of this chapter, "cleaning up radioactive waste and other by-products of weapons production and nuclear research and development" means:
(a) The activities of handling, storing, treating, immobilizing, stabilizing, or disposing of radioactive waste, radioactive tank waste and capsules, nonradioactive hazardous solid and liquid wastes, or spent nuclear fuel;
(b) Spent nuclear fuel conditioning;
(c) Removal of contamination in soils and groundwater;
(d) Decontamination and decommissioning of facilities; and
(e) Services supporting the performance of cleanup. For the purposes of this subsection (2)(e), a service supports the performance of cleanup if it:
(i) Is within the scope of work under a clean-up contract with the United States department of energy; or
(ii) Assists in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy under a subcontract entered into with the prime contractor or another subcontractor in furtherance of a clean-up contract between the United States department of energy and a prime contractor.
(3) A service does not assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy if the same services are routinely provided to businesses not engaged in clean-up activities, except that the following services are always deemed to contribute to the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy:
(a) Information technology and computer support services;
(b) Services rendered in respect to infrastructure; and
(c) Security, safety, and health services.
(4) The legislature intends that the examples provided in this subsection be used as a guideline when determining whether a service is "routinely provided to businesses not engaged in clean-up activities" as that phrase is used in subsection (3) of this section.
(a) The radioactive waste clean-up classification does not apply to general accounting services but does apply to performance audits performed for persons cleaning up radioactive waste.
(b) The radioactive waste clean-up classification does not apply to general legal services but does apply to those legal services that assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy. Thus, legal services provided to contest any local, state, or federal tax liability or to defend a company against a workers' compensation claim arising from a worksite injury do not qualify for the radioactive waste clean-up classification. But, legal services related to the resolution of a contractual dispute between the parties to a clean-up contract between the United States department of energy and a prime contractor do qualify.
(c) General office janitorial services do not qualify for the radioactive waste clean-up classification, but the specialized cleaning of equipment exposed to radioactive waste does qualify.
[
2025 c 420 s 105
;
2009 c 469 s 202
;
1996 c 112 s 3
.]
NOTES:
Effective date
—
2025 c 420 ss 101-108 and 110-112:
See note following RCW 82.04.230
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
Necessity of act
—
2025 c 420:
See notes following RCW 82.04.230
.
Finding
—
Intent
—
2009 c 469:
"(1) The legislature finds that the cleaning up of radioactive waste at the Hanford site is crucial to the environment in this state. The legislature intends to include services supporting the cleanup within the radioactive waste clean-up business and occupation tax classification, but it is not the legislature's intent to extend the radioactive waste clean-up classification to all business activities conducted at the Hanford site or performed for persons engaged in the performance of cleanup.
(2) It is the legislature's intent in enacting this legislation to ensure that the radioactive waste clean-up business and occupation tax classification applies to all services contributing to the performance of a clean-up project at the Hanford site other than services that are routinely provided to any business, including businesses that are not engaged in clean-up activities." [
2009 c 469 s 201
.]
Effective date
—
1996 c 112:
See note following RCW 82.04.050
.
RCW 82.04.270
Tax on wholesalers.
(Effective until January 1, 2027.)
Upon every person engaging within this state in the business of making sales at wholesale, except persons taxable as wholesalers under other provisions of this chapter; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.484 percent.
[
2004 c 24 s 5
;
2003 2nd sp.s. c 1 s 5
;
2001 1st sp.s. c 9 s 3
; (2001 1st sp.s. c 9 s 2 expired July 1, 2001);
1999 c 358 s 2
. Prior:
1999 c 358 s 1
;
1998 c 343 s 2
;
1998 c 329 s 1
;
1998 c 312 s 6
;
1994 c 124 s 2
;
1993 sp.s. c 25 s 105
;
1981 c 172 s 4
;
1971 ex.s. c 281 s 6
;
1971 ex.s. c 186 s 4
;
1969 ex.s. c 262 s 37
;
1967 ex.s. c 149 s 11
;
1961 c 15 s 82.04.270
; prior:
1959 ex.s. c 5 s 3
;
1955 c 389 s 47
; prior: 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
NOTES:
Intent
—
Effective date
—
2004 c 24:
See notes following RCW 82.04.2909
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Effective dates
—
2001 1st sp.s. c 9:
See note following RCW 82.04.298
.
Expiration dates
—
2001 1st sp.s. c 9:
See note following RCW 82.04.290
.
Effective date
—
1999 c 358 s 2:
"Section 2 of this act takes effect July 1, 2001." [
1999 c 358 s 23
.]
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
Effective date
—
1998 c 343:
See note following RCW 82.04.272
.
Effective date
—
1998 c 329:
"This act takes effect July 1, 1998." [
1998 c 329 s 2
.]
Effective date
—
Savings
—
1998 c 312:
See notes following RCW 82.04.332
.
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1971 ex.s. c 186:
See note following RCW 82.04.110
.
PDF
RCW 82.04.270
Tax on wholesalers.
(Effective January 1, 2027.)
Upon every person engaging within this state in the business of making sales at wholesale, except persons taxable as wholesalers under other provisions of this chapter; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.5 percent.
[
2025 c 420 s 106
;
2004 c 24 s 5
;
2003 2nd sp.s. c 1 s 5
;
2001 1st sp.s. c 9 s 3
; (2001 1st sp.s. c 9 s 2 expired July 1, 2001);
1999 c 358 s 2
. Prior:
1999 c 358 s 1
;
1998 c 343 s 2
;
1998 c 329 s 1
;
1998 c 312 s 6
;
1994 c 124 s 2
;
1993 sp.s. c 25 s 105
;
1981 c 172 s 4
;
1971 ex.s. c 281 s 6
;
1971 ex.s. c 186 s 4
;
1969 ex.s. c 262 s 37
;
1967 ex.s. c 149 s 11
;
1961 c 15 s 82.04.270
; prior:
1959 ex.s. c 5 s 3
;
1955 c 389 s 47
; prior: 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
NOTES:
Effective date
—
2025 c 420 ss 101-108 and 110-112:
See note following RCW 82.04.230
.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
Necessity of act
—
2025 c 420:
See notes following RCW 82.04.230
.
Intent
—
Effective date
—
2004 c 24:
See notes following RCW 82.04.2909
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Effective dates
—
2001 1st sp.s. c 9:
See note following RCW 82.04.298
.
Expiration dates
—
2001 1st sp.s. c 9:
See note following RCW 82.04.290
.
Effective date
—
1999 c 358 s 2:
"Section 2 of this act takes effect July 1, 2001." [
1999 c 358 s 23
.]
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
Effective date
—
1998 c 343:
See note following RCW 82.04.272
.
Effective date
—
1998 c 329:
"This act takes effect July 1, 1998." [
1998 c 329 s 2
.]
Effective date
—
Savings
—
1998 c 312:
See notes following RCW 82.04.332
.
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Effective dates
—
1981 c 172:
See note following RCW 82.04.240
.
Effective date
—
1971 ex.s. c 186:
See note following RCW 82.04.110
.
RCW 82.04.272
Tax on warehousing and reselling prescription drugs.
(1) Upon every person engaging within this state in the business of warehousing and reselling drugs for human use pursuant to a prescription; as to such persons, the amount of the tax shall be equal to the gross income of the business multiplied by the rate of 0.138 percent.
(2) For the purposes of this section:
(a) "Prescription" and "drug" have the same meaning as in RCW 82.08.0281
; and
(b) "Warehousing and reselling drugs for human use pursuant to a prescription" means the buying of drugs for human use pursuant to a prescription from a manufacturer or another wholesaler, and reselling of the drugs to persons selling at retail or to hospitals, clinics, health care providers, or other providers of health care services, by a wholesaler or retailer who is registered with the federal drug enforcement administration and licensed by the pharmacy quality assurance commission.
[
2013 c 19 s 127
;
2003 c 168 s 401
;
1998 c 343 s 1
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Effective date
—
1998 c 343:
"This act takes effect July 1, 2001." [
1998 c 343 s 6
.]