General manufacturing activities/operations

Manufacturing Business and Occupation (B&O) Tax

Persons who manufacture products in this state are subject to the manufacturing business and occupation (B&O) tax upon the value of the products, including by-products, unless the activity qualifies for one of the special manufacturing B&O tax rates discussed later in the chapter.

Retailing and Wholesaling B&O tax

Manufacturers who sell their products at retail or wholesale in this state are also subject to either the retailing or wholesaling B&O tax, as the case may be. In such cases, the manufacturer must report under both the "production" (manufacturing) and "selling" (wholesaling or retailing) classifications of the B&O tax.

Multiple Activities Tax Credit (MATC)

Manufacturers and extractors, who report B&O tax on multiple activities in Washington, may qualify for the multiple activities tax credit (MATC). The MATC is a B&O tax credit that is available to certain manufacturers, extractors, and sellers doing business in Washington. Businesses are eligible for this credit against the state B&O tax for gross receipts taxes paid in another jurisdiction or for taxes paid on multiple activities within Washington. The business must complete the Multiple Activities Tax Credit (Schedule C) each time the credit is claimed and attach it to their excise tax return. See WAC 458-20-19301 for a more detailed explanation of the MATC reporting requirements.