Splitting or processing dried peas

Manufacturing

Businesses that split or process dried peas are taxable under the Splitting/Processing of Dried Peas classification of the business and occupation (B&O) tax.

Selling

Businesses that split or process dried peas must also report their sales under either the Wholesaling or Retailing B&O tax classification.

Retail sales of split or processed dried peas must also be reported under the Retail Sales tax classification. However, split or processed dried peas are generally exempt from sales tax in Washington and can be deducted as Exempt Food Sales.

Sales of split or processed dried peas delivered to customers outside of Washington may be deducted from selling activities 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.

Litter tax

Splitters and processors of dried peas must report Litter tax on products processed or sold (wholesale and retail) in Washington.