Revised Code of Washington
2024 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 bullion—Computation of tax.
82.04.065Telephone, telecommunications, and ancillary services—Definitions.
82.04.066"Engaging within this state," "engaging within the state."
82.04.067Substantial nexus—Engaging 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.
82.04.2404Manufacturers—Processors for hire—Semiconductor materials.
82.04.241Manufacturers—Semiconductor materials.
82.04.250Tax on retailers.
82.04.255Tax on real estate brokers.
82.04.257Tax on digital products and services.
82.04.258Digital products—Apportionable income.
82.04.260Tax 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.
82.04.2602Tax on commercial airplane activities—Conditions 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 contractors—Cold storage warehouse defined—Storage warehouse defined—Periodical 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 software—Customization of prewritten computer software—Taxable services.
82.04.29002Additional tax on certain business and service activities.
82.04.29004Additional tax on financial institutions.
82.04.29005Tax on loan interest—2012 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 services—Definitions.
82.04.294Tax on manufacturers or wholesalers of solar energy systems.
82.04.297Internet access—Definitions.
82.04.298Tax on qualified grocery distribution cooperatives.
82.04.299Workforce education investment surcharge.
82.04.301Exemptions—Certain hospitals.
82.04.310Exemptions—Public utilities—Electrical energy—Natural or manufactured gas.
82.04.311Exemptions—Tobacco settlement authority.
82.04.315Exemptions—International banking facilities.
82.04.317Exemptions—Motor vehicle sales by manufacturers at wholesale auctions to dealers.
82.04.320Exemptions—Insurance business.
82.04.321Exemptions—Qualified health plan patients.
82.04.322Exemptions—Health maintenance organization, health care service contractor, certified health plan.
82.04.323Exemption—Washington health benefit exchange.
82.04.324Exemptions—Qualifying blood, tissue, or blood and tissue banks.
82.04.326Exemptions—Qualified organ procurement organizations.
82.04.327Exemptions—Adult family homes.
82.04.330Exemptions—Sales of agricultural products.
82.04.331Exemptions—Wholesale sales to farmers of seed for planting, conditioning seed for planting owned by others.
82.04.332Exemptions—Buying and selling at wholesale unprocessed milk, wheat, oats, dry peas, dry beans, lentils, triticale, canola, corn, rye, and barley.
82.04.333Exemptions—Small harvesters.
82.04.334Exemptions—Standing timber.
82.04.335Exemptions—Agricultural fairs.
82.04.337Exemptions—Amounts received by hop growers or dealers for processed hops shipped outside the state.
82.04.338Exemptions—Hop commodity commission or hop commodity board business.
82.04.339Exemptions—Day care provided by churches.
82.04.3395Exemptions—Child care resource and referral services by nonprofit organizations.
82.04.340Exemptions—Boxing, sparring, or wrestling matches.
82.04.350Exemptions—Racing.
82.04.355Exemptions—Ride sharing.
82.04.360Exemptions—Employees—Independent contractors—Booth renters.
82.04.363Exemptions—Camp or conference center—Items sold or furnished by nonprofit organization.
82.04.3651Exemptions—Amounts received by nonprofit organizations for fund-raising activities.
82.04.367Exemptions—Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans.
82.04.368Exemptions—Nonprofit organizations—Credit and debt services.
82.04.370Exemptions—Certain fraternal and beneficiary organizations.
82.04.380Exemptions—Certain corporations furnishing aid and relief.
82.04.385Exemptions—Operation of sheltered workshops.
82.04.390Exemptions—Amounts derived from sale of real estate.
82.04.392Exemptions—Mortgage brokers' third-party provider services trust accounts.
82.04.399Exemptions—Sales of academic transcripts.
82.04.405Exemptions—Credit unions.
82.04.408Exemptions—Housing finance commission.
82.04.410Exemptions—Hatching eggs and poultry.
82.04.415Exemptions—Sand, gravel and rock taken from county or city pits or quarries, processing and handling costs.
82.04.416Exemptions—Operation of state route No. 16.
82.04.418Exemptions—Grants by United States government to municipal corporations or political subdivisions.
82.04.419Exemptions—County, city, town, school district, or fire district activity.
82.04.4201Exemptions—Sales/leasebacks by regional transit authorities.
82.04.421Exemptions—Out-of-state membership sales in discount programs.
82.04.422Exemptions—Wholesale sales of motor vehicles.
82.04.423Exemptions—Sales by certain out-of-state persons to or through direct seller's representatives.
82.04.425Exemptions—Accommodation sales.
82.04.4251Exemptions—Convention and tourism promotion.
82.04.426Exemptions—Semiconductor microchips.
82.04.4261Exemptions—Federal small business innovation research program.
82.04.4262Exemptions—Federal small business technology transfer program.
82.04.4263Exemptions—Income received by the life sciences discovery fund authority.
82.04.4264Exemptions—Nonprofit assisted living facilities—Room and domiciliary care.
82.04.4265Exemptions—Comprehensive cancer centers.
82.04.4266Exemptions—Fruit and vegetable businesses.
82.04.4267Exemptions—Operation of parking/business improvement areas.
82.04.4268Exemptions—Dairy product businesses.
82.04.4269Exemptions—Seafood product businesses.
82.04.427Exemptions and credits—Pollution control facilities.
82.04.4271Deductions—Membership fees and certain service fees by nonprofit youth organization.
82.04.4272Deductions—Direct mail delivery charges.
82.04.4274Deductions—Nonprofit management companies—Personnel performing on-site functions.
82.04.4275Deductions—Child welfare services.
82.04.4276Deductions—Loans to rural electric cooperatives.
82.04.4281Deductions—Investments, dividends, interest on loans.
82.04.4282Deductions—Fees, dues, charges.
82.04.4283Deductions—Cash discount taken by purchaser.
82.04.4284Deductions—Bad debts.
82.04.4285Deductions—Motor vehicle fuel and special fuel taxes.
82.04.4286Deductions—Nontaxable business.
82.04.4287Deductions—Compensation for receiving, washing, etc., horticultural products for person exempt under RCW 82.04.330—Materials and supplies used.
82.04.4289Exemption—Compensation for patient services or attendant sales of drugs dispensed pursuant to prescription by certain nonprofit organizations.
82.04.4290Deductions—Mental health services or substance use disorder treatment services.
82.04.4291Deductions—Compensation received by a political subdivision from another political subdivision for services taxable under RCW 82.04.290.
82.04.4292Deductions—Interest on investments or loans secured by mortgages or deeds of trust.
82.04.4293Deductions—Interest on obligations of the state, its political subdivisions, and municipal corporations.
82.04.4294Deductions—Interest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives.
82.04.4295Deductions—Manufacturing activities completed outside the United States.
82.04.4296Deductions—Reimbursement for accommodation expenditures by funeral homes.
82.04.4297Deductions—Compensation from public entities for health or social welfare services—Exception.
82.04.4298Deductions—Repair, maintenance, replacement, etc., of residential structures and commonly held property—Eligible organizations.
82.04.431"Health or social welfare organization" defined—Conditions for exemption—"Health or social welfare services" defined.
82.04.4311Deductions—Compensation received under the federal medicare program by certain hospitals or health centers.
82.04.432Deductions—Municipal sewer service fees or charges.
82.04.4327Deductions—Artistic and cultural organizations.
82.04.4328"Artistic or cultural organization" defined.
82.04.433Deductions—Sales of fuel for consumption outside United States' waters by vessels in foreign commerce.
82.04.4331Deductions—Insurance claims for state health care coverage.
82.04.4332Deductions—Tuition fees of foreign degree-granting institutions.
82.04.4337Deductions—Certain amounts received by assisted living facilities.
82.04.4339Deductions—Salmon recovery grants.
82.04.43391Deductions—Commercial aircraft loan interest and fees.
82.04.43392Deductions—Qualified dispute resolution centers.
82.04.43393Deductions—Paymaster services.
82.04.43395Deductions—Accountable community of health.
82.04.43396Deductions—Scan-down allowances.
82.04.434Credit—Public safety standards and testing.
82.04.436Credit—Manufacture of alternative jet fuel.
82.04.4361Credit—Alternative jet fuel.
82.04.440Credit—Persons taxable on multiple activities.
82.04.4451Credit against tax due—Maximum credit—Table.
82.04.44525Credit—New employment for international service activities in eligible areas—Designation of census tracts for eligibility—Records—Tax due upon ineligibility—Interest assessment—Information from employment security department.
82.04.4461Credit—Preproduction development expenditures.
82.04.4463Credit—Property and leasehold taxes paid on property used for manufacture of commercial airplanes.
82.04.447Credit—Natural or manufactured gas purchased by direct service industrial customers—Reports.
82.04.448Credit—Manufacturing semiconductor materials.
82.04.4481Credit—Property taxes paid by aluminum smelter.
82.04.4482Credit—Sales of electricity or gas to an aluminum smelter.
82.04.4486Credit—Syrup taxes paid by buyer.
82.04.4488Credit—Conversion to worker-owned cooperative, employee ownership trust, or employee stock ownership plan.
82.04.4489Credit—Motion picture competitiveness program.
82.04.449Credit—Washington customized employment training program—Report to the legislature.
82.04.4496Credit—Clean alternative fuel commercial vehicles.
82.04.4497Credit—Sale or exchange of long-term capital assets.
82.04.4499Credit—Equitable access to credit program.
82.04.450Value of products, how determined.
82.04.460Apportionable income—Taxable in Washington and another state.
82.04.462Apportionable income.
82.04.470Wholesale sale—Reseller permit—Exemption certificates—Burden of proof—Tax liability.
82.04.480Sales in own name—Sales 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 providers—Calculation of gross proceeds.
82.04.535Gross proceeds of sales calculation for mobile telecommunications service provider.
82.04.540Professional employer organizations—Taxable under RCW 82.04.290(2)—Deduction.
82.04.545Exemptions—Sales of electricity or gas to silicon smelters.
82.04.600Exemptions—Materials printed in county, city, town, school district, educational service district, library or library district.
82.04.601Exemptions—Affixing stamp services for cigarette sales.
82.04.610Exemptions—Import or export commerce.
82.04.615Exemptions—Certain limited purpose public corporations, commissions, and authorities.
82.04.620Exemptions—Certain prescription drugs.
82.04.627Exemptions—Commercial airplane parts.
82.04.628Exemptions—Commercial fertilizer, agricultural crop protection products, and seed.
82.04.635Exemptions—Nonprofits providing legal services to low-income persons.
82.04.640Exemptions—Washington vaccine association—Certain assessments received.
82.04.645Exemptions—Financial institutions—Amounts received from certain affiliated persons.
82.04.650Exemptions—Investment conduits and securitization entities.
82.04.655Exemptions—Joint municipal utility services authorities.
82.04.660Exemptions—Environmental handling charges—Mercury-containing lights.
82.04.665Exemptions—Adaptive recreational and rehabilitation facilities.
82.04.750Exemptions—Restaurant employee meals.
82.04.755Exemptions—Grants received by a nonprofit organization for the program established under RCW 70A.200.140(1)(b)(ii).
82.04.756Exemptions—Cannabis cooperatives.
82.04.758Exceptions—Services for farms.
82.04.759Exemptions—Newspapers—Eligible digital content.
82.04.760Tax preferences—Expiration dates.
82.04.765Exemptions—Receipts attributable to assessment on architectural paint imposed pursuant to chapter 70A.515 RCW.
82.04.767Exemptions—Qualifying grants—National emergency or state of emergency.
82.04.769Application of chapter—Allowances, offset credits, and price ceiling units under chapter 70A.65 RCW.
82.04.770Deduction of amounts derived from charge collected pursuant to chapter 70A.530 RCW.
82.04.775Application of chapter—Amounts received under chapter 70A.535 RCW.
82.04.777Application of chapter—Amounts received under chapter 70A.555 RCW.
82.04.900Construction—1961 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.