Manufacturing wheat into flour, barley into pearl barley, soybeans into soybean oil, or sunflower seed into sunflower oil

Manufacturing

Businesses that manufacture wheat into flour, soybeans into soybean oil, sunflower seeds into sunflower oil, and canola into canola oil, meal or canola byproducts are taxable under the Manufacturing Wheat into Flour, Soybean & Canola Processing business and occupation (B&O) tax classification.

Selling

Manufacturers selling these products must also report under either the Wholesaling or Retailing B&O tax classifications.

Retail sales of these products must also be reported under the Retail Sales tax classification. However, these products are generally exempt from sales tax and can be deducted as Exempt Food Sales. Businesses that deliver these products to customers outside of Washington may take an Interstate and Foreign Sales deduction from the following classifications:

• Wholesaling.
• Retailing.
• Retail 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.

Litter tax

Manufacturers of food for human or pet consumption must report Litter tax on products manufactured or sold (wholesale and retail) in Washington.