Commercial fishing privileges

From the 2024 DOR Tax Exemption Study

Det. No. 13-0001, 32 WTD 213 (October 4, 2013) 215 manufacturing income, and it should not be subject to the manufacturing B&O tax retroactively because in prior audits the Department did not find that the taxpayer was incorrectly reporting its income. ANALYSIS [1] Washington imposes the business and occupation (B&O) tax on the privilege of engaging in business in this state. RCW 82.04.220. The measure of the tax, as well as the tax rate, varies depending upon the nature, or classification, of the activity. Id. A taxpayer engaged in manufacturing activities is subject to the manufacturing B&O tax rate of .0484 percent, multiplied by the value of the products manufactured. RCW 82.04.240. RCW 82.04.120(1) defines the term “to manufacture” as follows: To manufacture” embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and includes: (a) The production or fabrication of special made or custom made articles; (b) The production or fabrication of dental a