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Manufacturing
Businesses that manufacture or process for hire commercial airplanes or component parts of commercial airplanes are taxable under the Manufacturing of Commercial Airplanes or Components 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 airplanes or their component that are delivered to a customer outside of Washington can be deducted from selling classifications as Interstate and Foreign Sales.
Multiple Activities Tax Credit (MATC)
Businesses that perform more than one taxable activity for the same product will report each activity under the proper classification and then take 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)(a) …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.
