WSR 06-21-060



[ Filed October 16, 2006, 12:55 p.m. ]


The department of revenue has issued Excise Tax Advisory 2033.04 B&O Tax Exemption for Property Managers (RCW 82.04.394 -- On-Site Personnel Working at Multiple Properties (ETA 2033).

RCW 82.04.394 provides an exemption from the business and occupation (B&O) tax for amounts received by a property management company from the owner of a property for gross wages and benefits paid to on-site personnel. There are several conditions that must exist for the exemption to apply.

This advisory clarifies the statutory requirement that "[t]he on-site personnel is a person that works primarily at the owner's property. The advisory explains that nothing prohibits on-site personnel from performing services at multiple properties owned by the same owner. If the on-site personnel work at multiple properties owned by different owners, however, then the exemption is only available if a majority (more than 50%) of the services are performed for a single owner. In such a case, the exemption would apply only to the extent of that single owner's share of the on-site personnel's wages and benefits.

A copy of this document is available via the internet at or a request for copies may be directed to Roseanna Hodson, Interpretations and Technical Advice Unit, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 570-6119, fax (360) 586-5543.

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office