Washington – High Unemployment County Tax Deferral Program

SALT Report 1570 – The Washington Department of Revenue released an updated list of counties that qualify for the High Unemployment County Sales and Use Tax Deferral Program.
Beginning July 1, 2012 The High Unemployment County Sales and Use Tax Deferral Program will provide a deferral of sales and use tax on purchases of machinery, equipment, and construction to approved businesses.  All businesses must be located in qualifying counties or Community Empowerment Zones and engaged in any of the following activities:
  • Manufacturing
  • Research and development laboratories
  • Commercial testing facilities, or
  • Vegetable seed conditioning
Qualified Counties

Qualifying counties are those that have an unemployment rate at least 20% above the state average for the three calendar years prior to the year the list is published.  This list is updated every two years.

All Community Empowerment Zones are eligible. They have a continuous eligible status and are not reevaluated annually.

Qualified Businesses

To qualify for the program a business must be located in a qualified county or CEZ and invest in one or both of the following activities:

  • The construction of new structures, or expansion or renovation of existing structures to increase floor space or production capacity used for the qualifying activities
  • The purchase of new industrial and research fixtures, equipment, and support facilities that are integral to the manufacturing or research and development operation
Deferral Certificates
Deferral certificates allow businesses to purchase the following items without paying retail sales tax:
  • Qualified buildings
  • Qualified machinery and equipment
  • Labor and services rendered in the planning, installation and construction of the project
For Further Information: