Minor final assembly completed in Washington

From the 2024 DOR Tax Exemption Study

82.04.4295 - Minor final assembly completed in Washington Description The value of a product initially manufactured outside the state may be deducted from the gross amount reported under the manufacturing B&O tax, by manufacturers in Washington, when the following criteria are met: - Any additional processing in Washington consists of minor final assembly. - Minor final assembly does not exceed 2% of the sales value. - The product is sold and shipped outside of Washington. The amount of the deduction is equal to the value of the product prior to being brought into Washington. Purpose Stimulates trade and imports of products through Washington ports. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would not increase revenues because currently no exemption taxpayers use it. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - No taxpayers currently use this deduction. We expect no usage during the forecasted period of this s