Manufacturing B&O tax classifications

Manufacturing B&O tax classifications

Manufacturing – "Catch All" classification if manufacturing activity is not provided a special B&O tax rate. RCW 82.04.240

Commercial Aircraft Manufacturing – RCW 82.04.260(11)

Wood Biomass Fuel Manufacturing – RCW 82.04.260(1)(f)

Manufacturing wheat into flour, barley into pearl barley, soybeans into soybean oil, or sunflower seeds into sunflower oil – RCW 82.04.260(1)(a)

Splitting or processing dried peas – RCW 82.04.260(2)

Manufacturing seafood products that remain in a raw, raw frozen, or raw salted state – RCW 82.04.4269

Manufacturing dairy products – RCW 82.04.4268

  • B&O tax deduction on manufacturing activity; Also applies to:
    • Selling at retail or wholesale dairy products manufactured by the seller to purchasers who the goods out of this state; and
    • Wholesale sales by dairy product manufacturer to a customer who uses such dairy products as an ingredient or component in the manufacturing of another dairy product in Washington.
  • Deductions expire July 1, 2025 , then activities will be subject to reduced B&O tax rate. See Dairy products manufacturers' B&O tax exemptions.
  • Cannabis is not a dairy product: Cannabis infused products, including cannabis concentrates, are not dairy products. This means the processing of cannabis infused products that contain dairy ingredients do not qualify for this B&O tax exemption or the reduced rate starting July 1, 2025. 

Manufacturing fresh fruits and vegetables by canning, preserving, freezing, processing, or dehydrating – RCW 82.04.4266

  • B&O tax exemption on manufacturing activity. Also applies to wholesale sales by the manufacturer when product is transported outside the state by the purchasers. Exemption expires July 1, 2025, then activities will be subject to reduced B&O tax rate. See Fresh fruit or vegetable manufacturers B&O tax exemptions.
  • Cannabis is not a fresh fruit or vegetable: Cannabis, useable cannabis, and cannabis infused products, including cannabis concentrates, are not fresh fruits or vegetables. This means the processing of cannabis into useable cannabis, cannabis infused products, or cannabis concentrates (including cannabis infused products that contain fruits or vegetables) does not qualify for this B&O tax exemption or the reduced rate starting July 1, 2025. 

Slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale - combines manufacturing and non-manufacturing activities into a single taxable business activity. Includes meat processing that results in a non- perishable product (canned foods). Excise Tax Advisory (ETA) 3112 (2011)

Manufacturing Timber or Wood Products – RCW 82.04.260(12). See our Special Notice: Timber Activities - Eligibility Expanded to Mass Timber Product Manufacturers and Expiration Date Extended for Preferential Rate

Manufacturing Semiconductor Materials – RCW 82.04.2404

Manufacturing Solar Energy Systems and Components of Solar Energy Systems – RCW 82.04.294

Processing for hire – RCW 82.04.280(1)(c)

Printing and Publishing – RCW 82.04.280(1)(a)