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Manufacturing
Businesses that manufacture or process for hire tooling specifically designed for use in manufacturing commercial airplanes or their components are taxable under the Manufacturing of Commercial Airplane Tooling business and occupation (B&O) tax classification.
Selling
Businesses that manufacture commercial airplanes or their component parts must also report their sales under one of the following B&O tax classifications:
Commercial airplane tooling delivered to a customer outside of Washington can be deducted from selling classifications as Interstate and Foreign Sales.
Multiple Activities Tax Credit (MATC)
When a business performs more than one taxable activity for the same product, it reports each activity under the proper classification but then takes the MATC so that B&O tax is only paid once.
For more information, please see the MATC section of this guide.
Definitions
Commercial airplane means an airplane certified by the Federal Aviation Administration for transporting persons or property and any military derivative of such an airplane.
Component means a part or system certified by the Federal Aviation Administration for installation or assembly into a commercial airplane.
Additional resources
References
- RCW 82.04.260(11)(b) …Commercial airplane activities…
- RCW 82.32.534 Annual report requirements for tax preferences.
- RCW 82.32.550 “Commercial airplane,” “component,” and “superefficient airplane” – Definitions.
- WAC 458-20-193 Interstate sales of tangible personal property.
