SALT Report 1222 – The Washington Department of Revenue has released a business and occupation tax (B&O) notice to advise that due to the passage of Initiative 1107 the qualifications for the fresh fruit and vegetable processors B&O tax exemption has changed.
- Processing must commence with fresh fruits or fresh vegetables
- The end product must be for human consumption as food, or animal consumption as feed
- Persons who only sort, wash, rinse, grade, wax, treat, package, or store fresh fruit or vegetables do not qualify for exemption
- The Manufacturing B&O tax on the value of the qualifying processed product; or
- The Wholesaling B&O tax on sales of the qualifying processed product to customers who transport the product out of Washington in the ordinary course of business.
The B&O tax exemption for fresh fruit and vegetable processors expires July 1, 2012.
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