Revised Code of Washington
2023 Archive

Chapter 82.04 RCW
BUSINESS AND OCCUPATION TAX
PDF of Chapter Digest
PDF of Complete Chapter
Sections
82.04.010Introductory.
82.04.020"Tax year," "taxable year."
82.04.030"Person," "company."
82.04.035"Plantation Christmas trees."
82.04.040"Sale," "casual or isolated sale," "lease or rental," "adoption fee," "animal care and control agency," "animal rescue group," "animal rescue organization," "senior living community."
82.04.050"Sale at retail," "retail sale."
82.04.051"Services rendered in respect to"Taxation of hybrid or subsequent agreements.
82.04.060"Sale at wholesale," "wholesale sale."
82.04.062"Sale at wholesale," "sale at retail" excludes sale of precious metal bullion and monetized bullionComputation of tax.
82.04.065Telephone, telecommunications, and ancillary servicesDefinitions.
82.04.066"Engaging within this state," "engaging within the state."
82.04.067Substantial nexusEngaging in business.
82.04.070"Gross proceeds of sales."
82.04.080"Gross income of the business."
82.04.090"Value proceeding or accruing."
82.04.100"Extractor."
82.04.110"Manufacturer."
82.04.120"To manufacture."
82.04.130"Commercial or industrial use."
82.04.140"Business."
82.04.150"Engaging in business."
82.04.160"Cash discount."
82.04.170"Tuition fee."
82.04.180"Successor."
82.04.190"Consumer."
82.04.192Digital products definitions.
82.04.200"In this state," "within this state."
82.04.210"By-product."
82.04.212"Retail store or outlet."
82.04.213"Agricultural product," "farmer," "cannabis."
82.04.214"Newspaper."
82.04.215"Computer," "computer software," "custom software," "customization of prewritten computer software," "master copies," "prewritten computer software," "retained rights."
82.04.216Exclusion of steam, electricity, or electrical energy from definition of certain terms.
82.04.217"Direct service industrial customer," "aluminum smelter."
82.04.220Business and occupation tax imposed.
82.04.230Tax upon extractors.
82.04.240Tax on manufacturers.
82.04.2403Manufacturer tax not applicable to cleaning fish.
82.04.2404ManufacturersProcessors for hireSemiconductor materials.
82.04.250Tax on retailers.
82.04.255Tax on real estate brokers.
82.04.257Tax on digital products and services.
82.04.258Digital productsApportionable income.
82.04.260Tax on manufacturers and processors of various foods and by-productsResearch and development organizationsTravel agentsCertain international activitiesStevedoring and associated activitiesLow-level waste disposersInsurance producers, surplus line brokers, and title insurance agentsHospitalsCommercial airplane activitiesTimber product activitiesCanned salmon processors.
82.04.2602Tax on commercial airplane activitiesConditions for rate reduction.
82.04.261Surcharge on timber and wood product manufacturers, extractors, and wholesalers.
82.04.263Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development.
82.04.270Tax on wholesalers.
82.04.272Tax on warehousing and reselling prescription drugs.
82.04.280Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, radio and television broadcasting, government contractorsCold storage warehouse definedStorage warehouse definedPeriodical or magazine defined.
82.04.285Tax on contests of chance.
82.04.286Tax on horse races.
82.04.287Tax on alternative jet fuel.
82.04.290Tax on service and other activities.
82.04.29001Creation and distribution of custom softwareCustomization of prewritten computer softwareTaxable services.
82.04.29002Additional tax on certain business and service activities.
82.04.29004Additional tax on financial institutions.
82.04.29005Tax on loan interest2012 2nd sp.s. c 6.
82.04.2905Tax on providing day care.
82.04.2906Tax on certain chemical dependency services.
82.04.2907Tax on royalties.
82.04.2908Tax on provision of room and domiciliary care to assisted living facility residents.
82.04.2909Tax on aluminum smelters.
82.04.293International investment management servicesDefinitions.
82.04.294Tax on manufacturers or wholesalers of solar energy systems.
82.04.297Internet accessDefinitions.
82.04.298Tax on qualified grocery distribution cooperatives.
82.04.299Workforce education investment surcharge.
82.04.301ExemptionsCertain hospitals.
82.04.310ExemptionsPublic utilitiesElectrical energyNatural or manufactured gas.
82.04.311ExemptionsTobacco settlement authority.
82.04.315ExemptionsInternational banking facilities.
82.04.317ExemptionsMotor vehicle sales by manufacturers at wholesale auctions to dealers.
82.04.320ExemptionsInsurance business.
82.04.321ExemptionsQualified health plan patients.
82.04.322ExemptionsHealth maintenance organization, health care service contractor, certified health plan.
82.04.323ExemptionWashington health benefit exchange.
82.04.324ExemptionsQualifying blood, tissue, or blood and tissue banks.
82.04.326ExemptionsQualified organ procurement organizations.
82.04.327ExemptionsAdult family homes.
82.04.330ExemptionsSales of agricultural products.
82.04.331ExemptionsWholesale sales to farmers of seed for planting, conditioning seed for planting owned by others.
82.04.332ExemptionsBuying and selling at wholesale unprocessed milk, wheat, oats, dry peas, dry beans, lentils, triticale, canola, corn, rye, and barley.
82.04.333ExemptionsSmall harvesters.
82.04.334ExemptionsStanding timber.
82.04.335ExemptionsAgricultural fairs.
82.04.337ExemptionsAmounts received by hop growers or dealers for processed hops shipped outside the state.
82.04.338ExemptionsHop commodity commission or hop commodity board business.
82.04.339ExemptionsDay care provided by churches.
82.04.3395ExemptionsChild care resource and referral services by nonprofit organizations.
82.04.340ExemptionsBoxing, sparring, or wrestling matches.
82.04.350ExemptionsRacing.
82.04.355ExemptionsRide sharing.
82.04.360ExemptionsEmployeesIndependent contractorsBooth renters.
82.04.363ExemptionsCamp or conference centerItems sold or furnished by nonprofit organization.
82.04.3651ExemptionsAmounts received by nonprofit organizations for fund-raising activities.
82.04.367ExemptionsNonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans.
82.04.368ExemptionsNonprofit organizationsCredit and debt services.
82.04.370ExemptionsCertain fraternal and beneficiary organizations.
82.04.380ExemptionsCertain corporations furnishing aid and relief.
82.04.385ExemptionsOperation of sheltered workshops.
82.04.390ExemptionsAmounts derived from sale of real estate.
82.04.392ExemptionsMortgage brokers' third-party provider services trust accounts.
82.04.399ExemptionsSales of academic transcripts.
82.04.405ExemptionsCredit unions.
82.04.408ExemptionsHousing finance commission.
82.04.410ExemptionsHatching eggs and poultry.
82.04.415ExemptionsSand, gravel and rock taken from county or city pits or quarries, processing and handling costs.
82.04.416ExemptionsOperation of state route No. 16.
82.04.418ExemptionsGrants by United States government to municipal corporations or political subdivisions.
82.04.419ExemptionsCounty, city, town, school district, or fire district activity.
82.04.4201ExemptionsSales/leasebacks by regional transit authorities.
82.04.421ExemptionsOut-of-state membership sales in discount programs.
82.04.422ExemptionsWholesale sales of motor vehicles.
82.04.423ExemptionsSales by certain out-of-state persons to or through direct seller's representatives.
82.04.425ExemptionsAccommodation sales.
82.04.4251ExemptionsConvention and tourism promotion.
82.04.426ExemptionsSemiconductor microchips.
82.04.4261ExemptionsFederal small business innovation research program.
82.04.4262ExemptionsFederal small business technology transfer program.
82.04.4263ExemptionsIncome received by the life sciences discovery fund authority.
82.04.4264ExemptionsNonprofit assisted living facilitiesRoom and domiciliary care.
82.04.4265ExemptionsComprehensive cancer centers.
82.04.4266ExemptionsFruit and vegetable businesses.
82.04.4267ExemptionsOperation of parking/business improvement areas.
82.04.4268ExemptionsDairy product businesses.
82.04.4269ExemptionsSeafood product businesses.
82.04.427Exemptions and creditsPollution control facilities.
82.04.4271DeductionsMembership fees and certain service fees by nonprofit youth organization.
82.04.4272DeductionsDirect mail delivery charges.
82.04.4274DeductionsNonprofit management companiesPersonnel performing on-site functions.
82.04.4275DeductionsChild welfare services.
82.04.4276DeductionsLoans to rural electric cooperatives.
82.04.4281DeductionsInvestments, dividends, interest on loans.
82.04.4282DeductionsFees, dues, charges.
82.04.4283DeductionsCash discount taken by purchaser.
82.04.4284DeductionsBad debts.
82.04.4285DeductionsMotor vehicle fuel and special fuel taxes.
82.04.4286DeductionsNontaxable business.
82.04.4287DeductionsCompensation for receiving, washing, etc., horticultural products for person exempt under RCW 82.04.330Materials and supplies used.
82.04.4289ExemptionCompensation for patient services or attendant sales of drugs dispensed pursuant to prescription by certain nonprofit organizations.
82.04.4290DeductionsMental health services or substance use disorder treatment services.
82.04.4291DeductionsCompensation received by a political subdivision from another political subdivision for services taxable under RCW 82.04.290.
82.04.4292DeductionsInterest on investments or loans secured by mortgages or deeds of trust.
82.04.4293DeductionsInterest on obligations of the state, its political subdivisions, and municipal corporations.
82.04.4294DeductionsInterest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives.
82.04.4295DeductionsManufacturing activities completed outside the United States.
82.04.4296DeductionsReimbursement for accommodation expenditures by funeral homes.
82.04.4297DeductionsCompensation from public entities for health or social welfare servicesException.
82.04.4298DeductionsRepair, maintenance, replacement, etc., of residential structures and commonly held propertyEligible organizations.
82.04.431"Health or social welfare organization" definedConditions for exemption"Health or social welfare services" defined.
82.04.4311DeductionsCompensation received under the federal medicare program by certain hospitals or health centers.
82.04.432DeductionsMunicipal sewer service fees or charges.
82.04.4327DeductionsArtistic and cultural organizations.
82.04.4328"Artistic or cultural organization" defined.
82.04.433DeductionsSales of fuel for consumption outside United States' waters by vessels in foreign commerce.
82.04.4331DeductionsInsurance claims for state health care coverage.
82.04.4332DeductionsTuition fees of foreign degree-granting institutions.
82.04.4337DeductionsCertain amounts received by assisted living facilities.
82.04.4339DeductionsSalmon recovery grants.
82.04.43391DeductionsCommercial aircraft loan interest and fees.
82.04.43392DeductionsQualified dispute resolution centers.
82.04.43393DeductionsPaymaster services.
82.04.43395DeductionsAccountable community of health.
82.04.43396DeductionsScan-down allowances.
82.04.434CreditPublic safety standards and testing.
82.04.436CreditManufacture of alternative jet fuel.
82.04.4361CreditAlternative jet fuel.
82.04.440CreditPersons taxable on multiple activities.
82.04.4451Credit against tax dueMaximum creditTable.
82.04.44525CreditNew employment for international service activities in eligible areasDesignation of census tracts for eligibilityRecordsTax due upon ineligibilityInterest assessmentInformation from employment security department.
82.04.4461CreditPreproduction development expenditures.
82.04.4463CreditProperty and leasehold taxes paid on property used for manufacture of commercial airplanes.
82.04.447CreditNatural or manufactured gas purchased by direct service industrial customersReports.
82.04.448CreditManufacturing semiconductor materials.
82.04.4481CreditProperty taxes paid by aluminum smelter.
82.04.4482CreditSales of electricity or gas to an aluminum smelter.
82.04.4486CreditSyrup taxes paid by buyer.
82.04.4488CreditConversion to worker-owned cooperative, employee ownership trust, or employee stock ownership plan.
82.04.4489CreditMotion picture competitiveness program.
82.04.449CreditWashington customized employment training programReport to the legislature.
82.04.4496CreditClean alternative fuel commercial vehicles.
82.04.4497CreditSale or exchange of long-term capital assets.
82.04.4499CreditEquitable access to credit program.
82.04.450Value of products, how determined.
82.04.460Apportionable incomeTaxable in Washington and another state.
82.04.462Apportionable income.
82.04.470Wholesale saleReseller permitExemption certificatesBurden of proofTax liability.
82.04.480Sales in own nameSales as agent.
82.04.500Tax part of operating overhead.
82.04.510General administrative provisions invoked.
82.04.520Administrative provisions for motor vehicle sales by courtesy dealers.
82.04.530Telecommunications service providersCalculation of gross proceeds.
82.04.535Gross proceeds of sales calculation for mobile telecommunications service provider.
82.04.540Professional employer organizationsTaxable under RCW 82.04.290(2)Deduction.
82.04.545ExemptionsSales of electricity or gas to silicon smelters.
82.04.600ExemptionsMaterials printed in county, city, town, school district, educational service district, library or library district.
82.04.601ExemptionsAffixing stamp services for cigarette sales.
82.04.610ExemptionsImport or export commerce.
82.04.615ExemptionsCertain limited purpose public corporations, commissions, and authorities.
82.04.620ExemptionsCertain prescription drugs.
82.04.627ExemptionsCommercial airplane parts.
82.04.628ExemptionsCommercial fertilizer, agricultural crop protection products, and seed.
82.04.635ExemptionsNonprofits providing legal services to low-income persons.
82.04.640ExemptionsWashington vaccine associationCertain assessments received.
82.04.645ExemptionsFinancial institutionsAmounts received from certain affiliated persons.
82.04.650ExemptionsInvestment conduits and securitization entities.
82.04.655ExemptionsJoint municipal utility services authorities.
82.04.660ExemptionsEnvironmental handling chargesMercury-containing lights.
82.04.750ExemptionsRestaurant employee meals.
82.04.755ExemptionsGrants received by a nonprofit organization for the program established under RCW 70A.200.140(1)(b)(ii).
82.04.756ExemptionsCannabis cooperatives.
82.04.758ExceptionsServices for farms.
82.04.759ExemptionsNewspapersEligible digital content.
82.04.760Tax preferencesExpiration dates.
82.04.765ExemptionsReceipts attributable to assessment on architectural paint imposed pursuant to chapter 70A.515 RCW.
82.04.767ExemptionsQualifying grantsNational emergency or state of emergency.
82.04.770Deduction of amounts derived from charge collected pursuant to chapter 70A.530 RCW.
82.04.775Application of chapterAmounts received under chapter 70A.535 RCW.
82.04.777Application of chapterAmounts received under chapter 70A.555 RCW.
82.04.900Construction1961 c 15.
NOTES:
Admission tax
cities: RCW 35.21.280.
counties: Chapter 36.38 RCW.
Commute trip reduction incentives: Chapter 82.70 RCW.
Housing authorities, tax exemption: Chapter 35.82 RCW.
Public utility districts, privilege taxes: Chapter 54.28 RCW.