Washington – Exemption for Manufacturers of Fruits and Vegetables, Seafood, and Dairy Products

SALT Report 2417 – The Washington Department of Revenue announced that the business and occupation tax exemptions for manufacturers of fresh fruit and vegetable products, dairy products, and seafood products has been extended until June 30, 2015.

The B&O tax exemptions provide:

  • An exemption from the manufacturing B&O tax on the value of products sold by fresh fruit, seafood, and dairy product manufacturers, or
  • An exemption from wholesaling B&O tax for products manufactured and sold by the manufacturer at wholesale to a customer that transports the product outside Washington in the normal course of business

If a manufacturer takes the wholesaling B&O exemption they will be required to keep records establishing that the items were transported by the purchaser in the ordinary course of business out of Washington. These records must be kept for a minimum of 5 years.

All businesses that claim an exemption will be required to electronically file an annual tax incentive survey by April 30 of the year following the year the exemption was claimed. Failure to file a survey will result in a tax assessment on all previously exempt income under the manufacturing and/or wholesaling classification.

There is no application required to claim the exemptions. However, to maintain eligibility the business will be required to file all returns and surveys through the Department’s E-file or My Account system.

For Further Information

Washington Department of Revenue – Special Notice