RCW 82.04.213
"Agricultural product," "farmer," "cannabis."
(1) "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: A product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.85.020
; plantation Christmas trees; short-rotation hardwoods as defined in RCW 84.33.035
; turf; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.85.020, or a bird, or insect, or the substances obtained from such an animal including honey bee products. "Agricultural product" does not include cannabis, useable cannabis, or cannabis-infused products, or animals defined as pet animals under RCW 16.70.020
.
(2) "Cannabis," "useable cannabis," and "cannabis-infused products" have the same meaning as in RCW 69.50.101
.
(3)(a) "Farmer" means any person engaged in the business of growing, raising, or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product to be sold, and the growing, raising, or producing honey bee products for sale, or providing bee pollination services, by an eligible apiarist. "Farmer" does not include a person growing, raising, or producing such products for the person's own consumption; a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house; or a person in respect to the business of taking, cultivating, or raising timber.
(b) "Eligible apiarist" means a person who owns or keeps one or more bee colonies and who grows, raises, or produces honey bee products for sale at wholesale and is registered under RCW 15.60.021
.
(c) "Honey bee products" means queen honey bees, packaged honey bees, honey, pollen, bees wax, propolis, or other substances obtained from honey bees. "Honey bee products" does not include manufactured substances or articles.
(4) The terms "agriculture," "farming," "horticulture," "horticultural," and "horticultural product" may not be construed to include or relate to cannabis, useable cannabis, or cannabis-infused products unless the applicable term is explicitly defined to include cannabis, useable cannabis, or cannabis-infused products.
[
2022 c 16 s 139
;
2015 3rd sp.s. c 6 s 1102
;
2014 c 140 s 2
. Prior:
2001 c 118 s 2
;
2001 c 97 s 3
;
1993 sp.s. c 25 s 302
.]
NOTES:
Reviser's note:
The definitions in this section have been alphabetized pursuant to RCW 1.08.015
(2)(k).
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
Tax preference intended to be permanent
—
2015 3rd sp.s. c 6 ss 1102-1106:
See notes following RCW 82.04.330
.
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
RCW 82.04.214
"Newspaper."
(1) "Newspaper" means:
(a) A publication issued regularly at stated intervals at least twice a month and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind, including any supplement of a printed newspaper; and
(b) An electronic version of a printed newspaper that:
(i) Shares content with the printed newspaper; and
(ii) Is prominently identified by the same name as the printed newspaper or otherwise conspicuously indicates that it is a complement to the printed newspaper.
(2) For purposes of this section, "supplement" means a printed publication, including a magazine or advertising section, that is:
(a) Labeled and identified as part of the printed newspaper; and
(b) Circulated or distributed:
(i) As an insert or attachment to the printed newspaper; or
(ii) Separate and apart from the printed newspaper so long as the distribution is within the general circulation area of the newspaper.
[
2012 2nd sp.s. c 6 s 601
;
2008 c 273 s 1
;
1994 c 22 s 1
;
1993 sp.s. c 25 s 304
.]
NOTES:
Reviser's note:
The effective date of section 603, chapter 6, Laws of 2015 3rd sp.s., that amended section 704, chapter 6, Laws of 2012 2nd sp.s. and removed the expiration date of section 601, chapter 6, Laws of 2012 2nd sp.s., takes effect September 1, 2015. See also effective date note following RCW 82.04.4266
for chapter 6, Laws of 2015 3rd sp.s.
Findings
—
Intent
—
Tax preference performance statement:
See note following RCW 82.04.260
for section 602, chapter 6, Laws of 2015 3rd sp.s.
Existing rights, liabilities, or obligations
—
Effective dates
—
Contingent effective dates
—
2012 2nd sp.s. c 6:
See notes following RCW 82.04.29005
.
Effective date
—
2008 c 273:
"This act takes effect July 1, 2008." [
2008 c 273 s 2
.]
Retroactive application
—
1994 c 22:
"This act shall apply retroactively to July 1, 1993." [
1994 c 22 s 2
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
RCW 82.04.215
"Computer," "computer software," "custom software," "customization of prewritten computer software," "master copies," "prewritten computer software," "retained rights."
(1) "Computer" means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions.
(2) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. All software is classified as either prewritten or custom. Consistent with this definition "computer software" includes only those sets of coded instructions intended for use by an end user and specifically excludes retained rights in software and master copies of software.
(3) "Custom software" means software created for a single person.
(4) "Customization of prewritten computer software" means any alteration, modification, or development of applications using or incorporating prewritten computer software for a specific person. "Customization of prewritten computer software" includes individualized configuration of software to work with other software and computer hardware but does not include routine installation. Customization of prewritten computer software does not change the underlying character or taxability of the original prewritten computer software.
(5) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license.
(6) "Prewritten computer software" means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. Prewritten computer software includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than such purchaser. Where a person modifies or enhances computer software of which such persons is not the author or creator, the person shall be deemed to be the author or creator only of the person's modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; however where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for the modification or enhancement, the modification or enhancement shall not constitute prewritten computer software.
(7) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor.
[
2003 c 168 s 601
;
1998 c 332 s 3
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
Findings
—
Intent
—
Effective date
—
1998 c 332:
See notes following RCW 82.04.29001
.
RCW 82.04.216
Exclusion of steam, electricity, or electrical energy from definition of certain terms.
Consistent with RCW 82.02.220, when the terms "tangible personal property," "ingredient," "component part," "incorporated into," "goods," "products," "by-products," "materials," "consumables," and other similar terms denoting tangible items that may be used, sold, or consumed are used in this chapter, the terms do not include steam, electricity, or electrical energy.
[
2003 c 168 s 702
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.04.217
"Direct service industrial customer," "aluminum smelter."
(1) "Direct service industrial customer" means the same as in RCW 82.16.0495
.
(2) "Aluminum smelter" means the manufacturing facility of any direct service industrial customer that processes alumina into aluminum.
[
2004 c 24 s 2
.]
NOTES:
Intent
—
Effective date
—
2004 c 24:
See notes following RCW 82.04.2909
.
RCW 82.04.220
Business and occupation tax imposed.
(1) There is levied and collected from every person that has a substantial nexus with this state, as provided in RCW 82.04.067, a tax for the act or privilege of engaging in business activities. The tax is measured by the application of rates against value of products, gross proceeds of sales, or gross income of the business, as the case may be.
(2)(a) A person who establishes or reestablishes a substantial nexus with this state after the first day of the current calendar year under the provisions of RCW 82.04.067
is subject to the tax imposed under this chapter for the current calendar year only on business activity occurring on and after the date that the person established or reestablished a substantial nexus with this state in the current calendar year.
(b) The provisions of (a) of this subsection do not apply to a person who met any of the criteria in RCW 82.04.067
(1) (a) through (c) during the immediately preceding calendar year, and such person is taxable under this chapter for the current calendar year in its entirety.
[
2021 c 145 s 5
;
2019 c 8 s 103
;
2017 3rd sp.s. c 28 s 303
;
2011 1st sp.s. c 20 s 101
;
2010 1st sp.s. c 23 s 102
;
1961 c 15 s 82.04.220
. Prior:
1955 c 389 s 42
; 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
—
2019 c 8 ss 102, 103, 107, and 701-703:
See note following RCW 82.04.067
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.
Existing rights and liability
—
Severability
—
Application
—
Effective dates
—
2017 3rd sp.s. c 28:
See notes following RCW 82.08.0531
.
Intent
—
2010 1st sp.s. c 23:
"In order to preserve funding for education, public safety, health care, environmental protection, and safety net services for children, elderly, disabled, and vulnerable people, it is the intent of the legislature to close obsolete tax preferences, clarify the legislature's intent regarding existing tax policy, and to ensure balanced tax policy while bolstering emerging industries." [
2010 1st sp.s. c 23 s 1
.]
Findings
—
Intent
—
2010 1st sp.s. c 23:
"(1) The legislature finds that out-of-state businesses that do not have a physical presence in Washington earn significant income from Washington residents from providing services or collecting royalties on the use of intangible property in this state. The legislature further finds that these businesses receive significant benefits and opportunities provided by the state, such as: Laws providing protection of business interests or regulating consumer credit; access to courts and judicial process to enforce business rights, including debt collection and intellectual property rights; an orderly and regulated marketplace; and police and fire protection and a transportation system benefiting in-state agents and other representatives of out-of-state businesses. Therefore, the legislature intends to extend the state's business and occupation tax to these companies to ensure that they pay their fair share of the cost of services that this state renders and the infrastructure it provides.
(2)(a) The legislature also finds that the current cost apportionment method in RCW 82.04.460
(1) for apportioning most service income has been difficult for both taxpayers and the department to apply due in large part (i) to the difficulty in assigning certain costs of doing business inside or outside of this state, and (ii) to its dissimilarity with the apportionment methods used in other states for their business activity taxes.
(b) The legislature further finds that there is a trend among states to adopt a single factor apportionment formula based on sales. The legislature recognizes that adoption of a sales factor only apportionment method has the advantages of simplifying apportionment and making Washington a more attractive place for businesses to expand their property and payroll. For these reasons, the legislature adopts single factor sales apportionment for purposes of apportioning royalty income and certain service income for state business and occupation tax purposes.
(c) Nothing in this act may be construed, however, to authorize apportionment of the gross income or value of products taxable under the following business and occupation tax classifications: Retailing, wholesaling, manufacturing, processing for hire, extracting, extracting for hire, printing, government contracting, public road construction, the classifications in RCW 82.04.280
(1) (b), (d), (f), and (g), and any other activity not specifically included in the definition of apportionable activities in RCW 82.04.460
.
(d) Nothing in this part is intended to modify the nexus and apportionment requirements for local gross receipts business and occupation taxes." [
2011 c 174 s 208
;
2010 1st sp.s. c 23 s 101
.]
Contingency
—
Application
—
2010 1st sp.s. c 23 ss 102-112:
See notes following RCW 82.04.067
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.04.4292
.
RCW 82.04.230
Tax upon extractors.
(Effective until January 1, 2027.)
Upon every person engaging within this state in business as an extractor, except persons taxable as an extractor under any other provision in this chapter; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted for sale or for commercial or industrial use, multiplied by the rate of 0.484 percent.
The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the state.
[
2006 c 300 s 5
;
1993 sp.s. c 25 s 101
;
1971 ex.s. c 281 s 2
;
1969 ex.s. c 262 s 33
;
1967 ex.s. c 149 s 7
;
1961 c 15 s 82.04.230
. Prior:
1955 c 389 s 43
; 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 dates
—
Contingent effective date
—
2006 c 300:
See note following RCW 82.04.261
.
Severability
—
1993 sp.s. c 25:
"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." [
1993 sp.s. c 25 s 1002
.]
Effective dates
—
1993 sp.s. c 25:
"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, 1993, except:
(1) Sections 901 and 902 of this act take effect immediately [May 28, 1993].
(2) Sections 601 through 603 of this act take effect January 1, 1994." [
1993 sp.s. c 25 s 1003
.]
Part headings, captions not law
—
1993 sp.s. c 25:
"Part headings and captions as used in this act constitute no part of the law." [
1993 sp.s. c 25 s 1004
.]
PDF
RCW 82.04.230
Tax upon extractors.
(Effective January 1, 2027.)
Upon every person engaging within this state in business as an extractor, except persons taxable as an extractor under any other provision in this chapter; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted for sale or for commercial or industrial use, multiplied by the rate of 0.5 percent.
The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the state.
[
2025 c 420 s 101
;
2006 c 300 s 5
;
1993 sp.s. c 25 s 101
;
1971 ex.s. c 281 s 2
;
1969 ex.s. c 262 s 33
;
1967 ex.s. c 149 s 7
;
1961 c 15 s 82.04.230
. Prior:
1955 c 389 s 43
; 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:
"Sections 101 through 108 and 110 through 112 of this act take effect January 1, 2027." [
2025 c 420 s 504
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2025 c 420:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2025 c 420 s 501
.]
Necessity of act
—
2025 c 420:
"This act is necessary for the support of the state government and its existing public institutions." [
2025 c 420 s 503
.]
Effective dates
—
Contingent effective date
—
2006 c 300:
See note following RCW 82.04.261
.
Severability
—
1993 sp.s. c 25:
"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." [
1993 sp.s. c 25 s 1002
.]
Effective dates
—
1993 sp.s. c 25:
"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, 1993, except:
(1) Sections 901 and 902 of this act take effect immediately [May 28, 1993].
(2) Sections 601 through 603 of this act take effect January 1, 1994." [
1993 sp.s. c 25 s 1003
.]
Part headings, captions not law
—
1993 sp.s. c 25:
"Part headings and captions as used in this act constitute no part of the law." [
1993 sp.s. c 25 s 1004
.]
RCW 82.04.240
Tax on manufacturers.
(Effective until January 1, 2027.)
Upon every person engaging within this state in business as a manufacturer, except persons taxable as manufacturers under other provisions of this chapter; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured, multiplied by the rate of 0.484 percent.
The measure of the tax is the value of the products, including by-products, so manufactured regardless of the place of sale or the fact that deliveries may be made to points outside the state.
[
2004 c 24 s 4
; (2017 3rd sp.s. c 37 s 518); (2017 3rd sp.s. c 37 s 517 expired January 1, 2018); (2017 c 135 s 9); (2010 c 114 s 104); (2003 c 149 s 3);
1998 c 312 s 3
;
1993 sp.s. c 25 s 102
;
1981 c 172 s 1
;
1979 ex.s. c 196 s 1
;
1971 ex.s. c 281 s 3
;
1969 ex.s. c 262 s 34
;
1967 ex.s. c 149 s 8
;
1965 ex.s. c 173 s 5
;
1961 c 15 s 82.04.240
. Prior:
1959 c 211 s 1
;
1955 c 389 s 44
; 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
—
2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
See note following RCW 82.04.2404
.
Expiration date
—
2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525:
See note following RCW 82.04.2404
.
Contingent effective date
—
2017 c 135; 2010 c 114:
See RCW 82.32.790
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Finding
—
Intent
—
2010 c 114:
See note following RCW 82.32.534
.
Intent
—
Effective date
—
2004 c 24:
See notes following RCW 82.04.2909
.
Findings
—
Intent
—
2003 c 149:
See note following RCW 82.04.426
.
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:
"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, 1981, except section 9 of this act shall take effect September 1, 1981, sections 7 and 8 of this act shall take effect October 1, 1981, and section 10 of this act shall take effect July 1, 1983." [
1981 c 172 s 12
.]
Effective date
—
1979 ex.s. c 196:
"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 on July 1, 1979." [
1979 ex.s. c 196 s 15
.]
PDF
RCW 82.04.240
Tax on manufacturers.
(Effective January 1, 2027.)
Upon every person engaging within this state in business as a manufacturer, except persons taxable as manufacturers under other provisions of this chapter; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured, multiplied by the rate of 0.5 percent.
The measure of the tax is the value of the products, including by-products, so manufactured regardless of the place of sale or the fact that deliveries may be made to points outside the state.
[
2025 c 420 s 102
;
2004 c 24 s 4
; (2017 3rd sp.s. c 37 s 518); (2017 3rd sp.s. c 37 s 517 expired January 1, 2018); (2017 c 135 s 9); (2010 c 114 s 104); (2003 c 149 s 3);
1998 c 312 s 3
;
1993 sp.s. c 25 s 102
;
1981 c 172 s 1
;
1979 ex.s. c 196 s 1
;
1971 ex.s. c 281 s 3
;
1969 ex.s. c 262 s 34
;
1967 ex.s. c 149 s 8
;
1965 ex.s. c 173 s 5
;
1961 c 15 s 82.04.240
. Prior:
1959 c 211 s 1
;
1955 c 389 s 44
; 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
.
Effective date
—
2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
See note following RCW 82.04.2404
.
Expiration date
—
2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525:
See note following RCW 82.04.2404
.
Contingent effective date
—
2017 c 135; 2010 c 114:
See RCW 82.32.790
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Finding
—
Intent
—
2010 c 114:
See note following RCW 82.32.534
.
Intent
—
Effective date
—
2004 c 24:
See notes following RCW 82.04.2909
.
Findings
—
Intent
—
2003 c 149:
See note following RCW 82.04.426
.
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:
"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, 1981, except section 9 of this act shall take effect September 1, 1981, sections 7 and 8 of this act shall take effect October 1, 1981, and section 10 of this act shall take effect July 1, 1983." [
1981 c 172 s 12
.]
Effective date
—
1979 ex.s. c 196:
"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 on July 1, 1979." [
1979 ex.s. c 196 s 15
.]
RCW 82.04.2403
Manufacturer tax not applicable to cleaning fish.
The tax imposed by RCW 82.04.240
does not apply to cleaning fish. "Cleaning fish" means the removal of the head, fins, or viscera from fresh fish without further processing, other than freezing.
[
1994 c 167 s 1
.]
NOTES:
Effective date
—
1994 c 167:
"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 immediately [March 30, 1994]." [
1994 c 167 s 3
.]
RCW 82.04.2404
Manufacturers
—
Processors for hire
—
Semiconductor materials.
(Expires January 1, 2034.)
(1) Upon every person engaging within this state in the business of manufacturing or processing for hire semiconductor materials, 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, or, in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.275 percent.
(2) For the purposes of this section "semiconductor materials" means silicon crystals, silicon ingots, raw polished semiconductor wafers, and compound semiconductor wafers.
(3) A person reporting under the tax rate provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(4) Any person who has claimed the preferential tax rate under this section must reimburse the department for 50 percent of the amount of the tax preference under this section, if the number of persons employed by the person claiming the tax preference is less than 90 percent of the person's three-year employment average for the three years immediately preceding the year in which the preferential tax rate is claimed.
(5) This section expires January 1, 2034.
[
2024 c 261 s 10
;
2021 c 145 s 6
;
2017 3rd sp.s. c 37 s 503
; (2017 3rd sp.s. c 37 s 502 expired January 1, 2018);
2017 c 135 s 10
;
2010 c 114 s 105
;
2006 c 84 s 2
.]
NOTES:
Tax preference performance statement
—
2024 c 261 s 10:
"(1) This section is the tax preference performance statement for section 10, chapter 261, Laws of 2024. This 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.
(2) The tax preference performance statement in section 1, chapter 139, Laws of 2020 applies to the expansion of the tax preference in section 10, chapter 261, Laws of 2024." [
2024 c 261 s 14
.]
Effective date
—
2024 c 261:
See note following RCW 82.04.241
.
Effective date
—
2017 3rd sp.s. c 37 ss 102-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
"Sections 201, 203, 204, 205, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, and 707 of this act and parts I and VIII of this act take effect January 1, 2018." [
2017 3rd sp.s. c 37 s 1404
.]
Tax preference performance statement
—
2020 c 139; 2017 3rd sp.s. c 37 ss 502 and 503:
"(1) This section is the tax preference performance statement for the tax preferences contained in sections 502 and 503, chapter 37, Laws of 2017 3rd sp. sess. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, improve industry competitiveness, and create or retain jobs, as indicated in RCW 82.32.808
(2) (a) through (c).
(3) It is the legislature's specific public policy objective to maintain and expand business in the semiconductor cluster. It is the legislature's intent to extend by ten years the preferential tax rates for manufacturers and processors for hire of semiconductor materials in order to maintain and grow jobs in the semiconductor cluster.
(4) If a review finds that: (a) Since October 19, 2017, at least one project in the semiconductor cluster has located in Clark county, and that this project generates at least two thousand five hundred high-wage jobs, all of which pay twenty dollars per hour or more and at least eighty percent of which pay thirty-five dollars per hour or more; and (b) the number of jobs in the semiconductor cluster in Washington has increased since October 19, 2017, then the legislature intends to extend the expiration date of the tax preference.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to data from the department of revenue's annual survey for tax years ending before January 1, 2020, and annual tax performance report for subsequent tax years." [
2020 c 139 s 1
;
2017 3rd sp.s. c 37 s 501
.]
Expiration date
—
2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525:
"Sections 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525 of this act expire January 1, 2018." [
2017 3rd sp.s. c 37 s 1405
.]
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Effective date
—
2007 c 54 s 22
; 2006 c 84 ss 2-8:
"(1)(a) Sections 2 through 8, chapter 84, Laws of 2006 and section 22, chapter 54, Laws of 2007 are contingent upon the siting, expansion, or renovation, and commercial operation of a significant semiconductor materials fabrication facility or facilities in the state of Washington.
(b) For the purposes of this section:
(i) "Commercial operation" means the equipment and process qualifications in the new, expanded, or renovated building are completed and production for sale has begun.
(ii) "Semiconductor materials fabrication" means the manufacturing of silicon crystals, silicon ingots that are at least three hundred millimeters in diameter, raw polished semiconductor wafers that are at least three hundred millimeters in diameter, and compound semiconductor wafers that are at least three hundred millimeters in diameter.
(iii) "Significant" means that the combined investment or investments by a single person, occurring at any time before December 1, 2006, of new buildings, expansion or renovation of existing buildings, tenant improvements to buildings, and machinery and equipment in the buildings, at the commencement of commercial production, is at least three hundred fifty million dollars based on actual expenditures by the person.
(2) Except for section 1 of this act and this section, this act takes effect the first day of the month immediately following the department's determination that the contingency in subsection (1) of this section has occurred. The department shall make its determination regarding the contingency in subsection (1) of this section based on information provided to the department by affected taxpayers or representatives of affected taxpayers.
(3) The department of revenue shall provide notice of the effective date of sections 2 through 8, chapter 84, Laws of 2006 [December 1, 2006] to affected taxpayers, the legislature, the office of the code reviser, and others as deemed appropriate by the department." [
2007 c 54 s 29
;
2006 c 84 s 9
.]
Findings
—
Intent
—
2006 c 84:
"The legislature finds that the welfare of the people of the state of Washington is positively impacted through the encouragement and expansion of family wage employment in the state's manufacturing industries. The legislature further finds that targeting tax incentives to focus on key industry clusters is an important business climate strategy. Washington state has recognized the semiconductor industry, which includes the design and manufacture of semiconductor materials, as one of the state's existing key industry clusters. Businesses in this cluster in the state of Washington are facing increasing pressure to expand elsewhere. The sales and use tax exemptions for manufacturing machinery and equipment enacted by the 1995 legislature improved Washington's ability to compete with other states for manufacturing investment. In 2003 the legislature enacted comprehensive tax incentives for the semiconductor cluster that address activities of the lead product industry and its suppliers and customers. These tax incentives are contingent on the investment of at least one billion dollars in a new semiconductor microchip fabrication facility in this state, which has not occurred. This investment criteria failed to recognize the significance of potential investment in the advanced semiconductor materials sector. Therefore, the legislature intends to complement existing comprehensive tax incentives for the semiconductor cluster to address activities of the advanced semiconductor materials product industry and its suppliers and customers. Tax incentives for the semiconductor cluster are important in both retention and expansion of existing businesses and attraction of new businesses, all of which will strengthen this cluster. The legislature also recognizes that the semiconductor industry involves major investment that results in significant construction projects, which will create jobs and bring many indirect benefits to the state during the construction phase." [
2006 c 84 s 1
.]
RCW 82.04.241
Manufacturers
—
Semiconductor materials.
(Contingent effective date; contingent expiration date.)
(1) Upon every person engaging within this state in the business of manufacturing semiconductor materials, 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, or, in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.275 percent. For the purposes of this subsection "semiconductor materials" means silicon crystals, silicon ingots, raw polished semiconductor wafers, compound semiconductors, integrated circuits, and microchips.
(2) A person reporting under the tax rate provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(3) Pursuant to RCW 82.32.790, this section is contingent on the siting and commercial operation of a significant semiconductor microchip fabrication facility in the state of Washington.
(4) Any person who has claimed the preferential rate under this section must reimburse the department for 50 percent of the amount of the tax preference under this section if the number of persons employed by the person claiming the tax preference is less than 90 percent of the person's three-year employment average for the three years immediately preceding the year in which the preferential rate is claimed.
(5) This section expires January 1, 2034, unless the contingency in RCW 82.32.790
(2) occurs.
[
2024 c 261 s 2
.]
NOTES:
Tax preference performance statement exemption
—
2024 c 261 ss 2-9:
"RCW 82.32.808
does not apply to sections 2 through 9 of this act." [
2024 c 261 s 13
.]
Effective date
—
2024 c 261:
"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 26, 2024]." [
2024 c 261 s 16
.]
RCW 82.04.250
Tax on retailers.
(Effective until January 1, 2027.)
(1) Upon every person engaging within this state in the business of making sales at retail, except persons taxable as retailers under other provisions of this chapter, as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of 0.471 percent.
(2) Upon every person engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter
82.08
RCW by reason of RCW 82.08.0261, 82.08.0262, or
82.08.0263, except persons taxable under RCW 82.04.260
(11) or subsection (3) of this section, as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of 0.484 percent.
(3)(a) Until July 1, 2040, upon every person classified by the federal aviation administration as a federal aviation regulation part 145 certificated repair station and that is engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter
82.08
RCW by reason of RCW 82.08.0261, 82.08.0262, or
82.08.0263, as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of .2904 percent.
(b) A person reporting under the tax rate provided in this subsection (3) must file a complete annual report with the department under RCW 82.32.534
.
[
2014 c 97 s 402
; (2014 c 97 s 401 expired July 9, 2014);
2013 3rd sp.s. c 2 s 7
;
2010 1st sp.s. c 23 s 509
; (2010 1st sp.s. c 23 s 508 expired July 1, 2011); (2010 1st sp.s. c 23 s 507 expired July 13, 2010);
2010 1st sp.s. c 11 s 1
; (2010 c 114 s 106 expired July 1, 2011);
2008 c 81 s 5
; (2007 c 54 s 5 repealed by 2010 1st sp.s. c 11 s 7);
2006 c 177 s 5
;
2003 2nd sp.s. c 1 s 2
; (2003 1st sp.s. c 2 s 1 expired July 1, 2006). Prior:
1998 c 343 s 5
;
1998 c 312 s 4
;
1993 sp.s. c 25 s 103
;
1981 c 172 s 2
;
1971 ex.s. c 281 s 4
;
1971 ex.s. c 186 s 2
;
1969 ex.s. c 262 s 35
;
1967 ex.s. c 149 s 9
;
1961 c 15 s 82.04.250
; prior:
1955 c 389 s 45
; 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:
Contingent expiration date
—
2014 c 97 ss 401 and 403:
"Sections 401 and 403 of this act expire on the date that sections 402 and 404 of this act take effect." [
2014 c 97 s 605
.]
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
—
2010 1st sp.s. c 23 s 509:
"Section 509 of this act takes effect July 1, 2011." [
2010 1st sp.s. c 23 s 1717
.]
Effective date
—
2010 1st sp.s. c 23 s 508:
"Section 508 of this act takes effect July 13, 2010." [
2010 1st sp.s. c 23 s 1715
.]
Expiration date
—
2010 1st sp.s. c 23 s 508:
"Section 508 of this act expires July 1, 2011." [
2010 1st sp.s. c 23 s 1716
.]
Expiration date
—
2010 1st sp.s. c 23 s 507:
"Section 507 of this act expires July 13, 2010." [
2010 1st sp.s. c 23 s 1714
.]
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
.
Expiration date
—
2010 c 114 s 106:
"Section 106 of this act expires July 1, 2011." [
2010 c 114 s 204
.]
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Expiration date
—
2008 c 81 s 5:
"Section 5 of this act expires July 1, 2011." [
2008 c 81 s 19
.]  This expiration date was repealed by
2010 1st sp.s. c 11 s 7
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Effective date
—
2007 c 54 s 5:
"Section 5 of this act takes effect July 1, 2011." [
2007 c 54 s 30
.]  This effective date was repealed by
2010 1st sp.s. c 11 s 7
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Expiration date
—
2006 c 177 s 5:
"Section 5 of this act expires July 1, 2011." [
2006 c 177 s 14
.]  This expiration date was repealed by
2010 1st sp.s. c 11 s 7
.
Effective date
—
2006 c 177 ss 1-9:
"Sections 1 through 9 of this act take effect July 1, 2006." [
2006 c 177 s 12
.]
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Expiration date
—
2003 1st sp.s. c 2:
"This act expires July 1, 2006." [
2003 1st sp.s. c 2 s 3
.]
Effective date
—
2003 1st sp.s. c 2:
"This act takes effect August 1, 2003." [
2003 1st sp.s. c 2 s 4
.]
Effective date
—
1998 c 343:
See note following RCW 82.04.272
.
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 82.04.250
Tax on retailers.
(Effective January 1, 2027.)
(1) Upon every person engaging within this state in the business of making sales at retail, except persons taxable as retailers under other provisions of this chapter, as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of 0.5 percent.
(2) Upon every person engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter
82.08
RCW by reason of RCW 82.08.0261, 82.08.0262, or
82.08.0263, except persons taxable under RCW 82.04.260
(11) or subsection (3) of this section, as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of 0.5 percent.
(3)(a) Until July 1, 2040, upon every person classified by the federal aviation administration as a federal aviation regulation part 145 certificated repair station and that is engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter
82.08
RCW by reason of RCW 82.08.0261, 82.08.0262, or
82.08.0263, as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of .2904 percent.
(b) A person reporting under the tax rate provided in this subsection (3) must file a complete annual report with the department under RCW 82.32.534
.
[
2025 c 420 s 103
;
2014 c 97 s 402
; (2014 c 97 s 401 expired July 9, 2014);
2013 3rd sp.s. c 2 s 7
;
2010 1st sp.s. c 23 s 509
; (2010 1st sp.s. c 23 s 508 expired July 1, 2011); (2010 1st sp.s. c 23 s 507 expired July 13, 2010);
2010 1st sp.s. c 11 s 1
; (2010 c 114 s 106 expired July 1, 2011);
2008 c 81 s 5
; (2007 c 54 s 5 repealed by 2010 1st sp.s. c 11 s 7);
2006 c 177 s 5
;
2003 2nd sp.s. c 1 s 2
; (2003 1st sp.s. c 2 s 1 expired July 1, 2006). Prior:
1998 c 343 s 5
;
1998 c 312 s 4
;
1993 sp.s. c 25 s 103
;
1981 c 172 s 2
;
1971 ex.s. c 281 s 4
;
1971 ex.s. c 186 s 2
;
1969 ex.s. c 262 s 35
;
1967 ex.s. c 149 s 9
;
1961 c 15 s 82.04.250
; prior:
1955 c 389 s 45
; 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
.
Contingent expiration date
—
2014 c 97 ss 401 and 403:
"Sections 401 and 403 of this act expire on the date that sections 402 and 404 of this act take effect." [
2014 c 97 s 605
.]
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
—
2010 1st sp.s. c 23 s 509:
"Section 509 of this act takes effect July 1, 2011." [
2010 1st sp.s. c 23 s 1717
.]
Effective date
—
2010 1st sp.s. c 23 s 508:
"Section 508 of this act takes effect July 13, 2010." [
2010 1st sp.s. c 23 s 1715
.]
Expiration date
—
2010 1st sp.s. c 23 s 508:
"Section 508 of this act expires July 1, 2011." [
2010 1st sp.s. c 23 s 1716
.]
Expiration date
—
2010 1st sp.s. c 23 s 507:
"Section 507 of this act expires July 13, 2010." [
2010 1st sp.s. c 23 s 1714
.]
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
.
Expiration date
—
2010 c 114 s 106:
"Section 106 of this act expires July 1, 2011." [
2010 c 114 s 204
.]
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Expiration date
—
2008 c 81 s 5:
"Section 5 of this act expires July 1, 2011." [
2008 c 81 s 19
.]  This expiration date was repealed by
2010 1st sp.s. c 11 s 7
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Effective date
—
2007 c 54 s 5:
"Section 5 of this act takes effect July 1, 2011." [
2007 c 54 s 30
.]  This effective date was repealed by
2010 1st sp.s. c 11 s 7
.
Severability
—
2007 c 54:
See note following RCW 82.04.050
.
Expiration date
—
2006 c 177 s 5:
"Section 5 of this act expires July 1, 2011." [
2006 c 177 s 14
.]  This expiration date was repealed by
2010 1st sp.s. c 11 s 7
.
Effective date
—
2006 c 177 ss 1-9:
"Sections 1 through 9 of this act take effect July 1, 2006." [
2006 c 177 s 12
.]
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
Expiration date
—
2003 1st sp.s. c 2:
"This act expires July 1, 2006." [
2003 1st sp.s. c 2 s 3
.]
Effective date
—
2003 1st sp.s. c 2:
"This act takes effect August 1, 2003." [
2003 1st sp.s. c 2 s 4
.]
Effective date
—
1998 c 343:
See note following RCW 82.04.272
.
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 82.04.255
Tax on real estate brokers.
(1) Upon every person engaging within the state in the business of providing real estate brokerage services; as to such persons, the amount of the tax with respect to such business is equal to the gross income of the business, multiplied by the rate of 1.5 percent.
(2) The measure of the tax on real estate commissions earned by the real estate firm is the gross commission earned by the particular real estate firm including that portion of the commission paid to brokers, including designated and managing brokers, in the same firm on a particular transaction. However, when a real estate commission on a particular transaction is divided among real estate firms at the closing of the transaction, including a firm located out of state, each firm must pay the tax only upon its respective shares of said commission. Moreover, when the real estate firm has paid the tax as provided herein, brokers, including designated and managing brokers, within the same real estate firm may not be required to pay a similar tax upon the same transaction. If any firm located out of state receives a share of commission on a particular transaction, that company or broker must pay the tax based on the requirements of this section and RCW 82.04.067
.
(3) For the purposes of this section, "broker," "designated broker," "managing broker," and "real estate firm" have the same meaning as provided in RCW 18.85.011
.
[
2011 c 322 s 2
;
1997 c 7 s 1
;
1996 c 1 s 1
;
1993 sp.s. c 25 s 202
;
1985 c 32 s 2
;
1983 2nd ex.s. c 3 s 1
;
1983 c 9 s 1
;
1970 ex.s. c 65 s 3
.]
NOTES:
Intent
—
2011 c 322:
"The legislature intends to clarify existing law that the basis for determining the business and occupation tax for real estate firms is the commission amount received by each real estate firm involved in a real estate transaction. In clarifying existing law, the legislature intends to preserve the historic method of calculating business and occupation tax for real estate firms." [
2011 c 322 s 1
.]
Savings
—
1997 c 7:
"This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed in this act or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections." [
1997 c 7 s 6
.]
Effective date
—
1997 c 7:
"This act takes effect July 1, 1998." [
1997 c 7 s 7
.]
Effective date
—
1996 c 1:
"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 January 1, 1996." [
1996 c 1 s 5
.]
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Construction
—
1983 2nd ex.s. c 3:
"This act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the sections amended or repealed in this act or under any rule, regulation, or order adopted under those sections, nor as affecting any proceeding instituted under those sections." [
1983 2nd ex.s. c 3 s 65
.]
Severability
—
1983 2nd ex.s. c 3:
"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." [
1983 2nd ex.s. c 3 s 66
.]
Effective dates
—
1983 2nd ex.s. c 3:
"(1) 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, 1983, except that:
(a) Sections 42 through 50, and 52, 53, 65, and 66 of this act shall take effect June 30, 1983;
(b) Sections 1 through 4 of this act shall take effect July 1, 1983, except as provided in subsection (2) of this section;
(c) Sections 21, 22, and 51 of this act shall take effect January 1, 1984. Section 51 of this act shall be effective for property taxes levied in 1983 and due in 1984, and thereafter; and
(d) Section 63 of this act shall take effect April 1, 1985, and shall be effective in respect to taxable activities occurring on and after April 1, 1985; and
(e) The extension under this act of the retail sales tax to certain sales of telephone service shall apply to telephone service billed on or after July 1, 1983, whether or not such service was rendered before that date.
(f) Sections 61 and 62 of this act shall take effect on the day either of the following events occurs, whichever is earlier:
(i) A temporary or permanent injunction or order becomes effective which prohibits in whole or in part the collection of taxes at the rates specified in section 6, chapter 7, Laws of 1983; or
(ii) A decision of a court in this state invalidating in whole or in part section 6, chapter 7, Laws of 1983, becomes final.
(2) The legislature finds that the amendments contained in sections 1 through 4 of this act constitute an integrated and inseparable entity and if any one or more of those sections does not become law, the remaining sections shall not take effect. If sections 1 through 4 of this act do not become law, the governor shall in that event reduce approved allotments under RCW 43.88.110
for the 1983-85 biennium by four percent." [
1983 2nd ex.s. c 3 s 67
.]
Reviser's note:
(1) "Sections 42 through 50 and 52" consist of the 1983 2nd ex.s. c 3 amendments to RCW 82.49.010, 88.02.020, 88.02.030, 88.02.050, and
88.02.110
and the enactment of RCW 43.51.400, 82.49.020, 82.49.070, 88.02.070, and
88.02.080
. "Section 53" consists of the enactment of a new section which appears as a footnote to RCW 88.02.020, and "sections 65 and 66" consist of the enactment of new sections which appear as footnotes to RCW 82.04.255
above.
(2) "Sections 1 through 4" consist of the 1983 2nd ex.s. c 3 ss 1-4 amendments to RCW 82.04.255, 82.04.290, 82.04.2904, and
82.04.2901, respectively.
(3) "Sections 21, 22, and 51" consist of the 1983 2nd ex.s. c 3 amendments to RCW 82.48.010, 82.48.030, and
84.36.080, respectively.
(4) "Section 63" consists of the 1983 2nd ex.s. c 3 amendment to RCW 82.32.045
.
(5) "Sections 61 and 62" consist of the 1983 2nd ex.s. c 3 ss 61 and 62 amendments to RCW 82.04.2901
and
82.08.020, respectively. For the effective date of sections 61 and 62, see
Bond v. Burrows
, 103 Wn.2d 153 (1984).
Construction
—
1983 c 9:
"This act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the sections amended in this act, nor any rule, regulation, or order adopted nor any proceeding instituted under those sections." [
1983 c 9 s 6
.]
Severability
—
1983 c 9:
"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." [
1983 c 9 s 7
.]
Effective date
—
1983 c 9:
"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 March 1, 1983. The additional taxes and tax rate changes imposed under this act shall take effect on the dates designated in this act notwithstanding the date this act becomes law under Article III, section 12 of the state Constitution." [
1983 c 9 s 8
.]
Effective date
—
Severability
—
1970 ex.s. c 65:
See notes following RCW 82.03.050
.
RCW 82.04.257
Tax on digital products and services.
(Effective until January 1, 2027.)
(1) Except as provided in subsection (2) of this section, upon every person engaging within this state in the business of making sales at retail or wholesale of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c), as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of 0.471 percent in the case of retail sales and by the rate of 0.484 percent in the case of wholesale sales.
(2) Persons providing subscription television services or subscription radio services are subject to tax under RCW 82.04.290
(2) on the gross income of the business received from providing such services.
(3) For purposes of this section, a person is considered to be engaging within this state in the business of making sales of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c), if the person makes sales of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c) and the sales are sourced to this state under RCW 82.32.730
for sales tax purposes or would have been sourced to this state under RCW 82.32.730
if the sale had been taxable under chapter
82.08
RCW.
(4) A person subject to tax under this section is subject to the mandatory electronic filing and payment requirements in RCW 82.32.080
.
[
2017 c 323 s 515
;
2010 c 111 s 301
;
2009 c 535 s 401
.]
NOTES:
*Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
PDF
RCW 82.04.257
Tax on digital products and services.
(Effective January 1, 2027.)
(1) Except as provided in subsection (2) of this section, upon every person engaging within this state in the business of making sales at retail or wholesale of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c), as to such persons, the amount of tax with respect to such business is equal to the gross proceeds of sales of the business, multiplied by the rate of 0.5 percent in the case of retail sales and by the rate of 0.5 percent in the case of wholesale sales.
(2) Persons providing subscription television services or subscription radio services are subject to tax under RCW 82.04.290
(2) on the gross income of the business received from providing such services.
(3) For purposes of this section, a person is considered to be engaging within this state in the business of making sales of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c), if the person makes sales of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c) and the sales are sourced to this state under RCW 82.32.730
for sales tax purposes or would have been sourced to this state under RCW 82.32.730
if the sale had been taxable under chapter
82.08
RCW.
(4) A person subject to tax under this section is subject to the mandatory electronic filing and payment requirements in RCW 82.32.080
.
[
2025 c 420 s 104
;
2017 c 323 s 515
;
2010 c 111 s 301
;
2009 c 535 s 401
.]
NOTES:
*Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025.
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 exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Purpose
—
Retroactive application
—
Effective date
—
2010 c 111:
See notes following RCW 82.04.050
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
RCW 82.04.258
Digital products
—
Apportionable income.
(1)(a) Any person subject to tax under RCW 82.04.257
engaging both within and outside this state in the business of making sales at retail or wholesale of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c), must apportion to this state that portion of apportionable income derived from activity performed within this state as provided in subsection (2) of this section.
(b) For purposes of this subsection, a person is considered to be engaging outside this state in the business of making sales of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c) if the person makes any sales of digital goods, digital codes, digital automated services, or services described in *RCW 82.04.050
(2)(g) or (6)(c) that are sourced to a jurisdiction other than Washington under RCW 82.32.730
for sales tax purposes or would have been sourced to a jurisdiction other than Washington under RCW 82.32.730
if the sale had been a retail sale.
(2) Apportionable income must be apportioned to Washington by multiplying the apportionable income by the sales factor.
(3)(a) The sales factor is a fraction, the numerator of which is the total receipts of the taxpayer from making sales of digital goods, digital codes, digital automated services, and services described in *RCW 82.04.050
(2)(g) or (6)(c) in this state during the tax period, and the denominator of which is the total receipts of the taxpayer derived from such activity everywhere during the tax period.
(b) For purposes of computing the sales factor, sales are considered in this state if the sale was sourced to this state under RCW 82.32.730
for sales tax purposes or would have been sourced to this state under RCW 82.32.730
if the sale had been taxable under chapter
82.08
RCW.
(4) For purposes of this section, "apportionable income" means the gross income of the business taxable under RCW 82.04.257, including income received from activities outside this state if the income would be taxable under RCW 82.04.257
if received from activities in this state.
[
2017 c 323 s 516
;
2009 c 535 s 402
.]
NOTES:
*
Reviser's note:
RCW 82.04.050
was amended by 2025 c 422 s 101, changing subsection (6)(c) to subsection (6)(b), effective October 1, 2025.
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2017 c 323:
See note following RCW 82.04.040
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.