BUSINESS AND OCCUPATION TAX
RCW 82.04
in effectContents
section82.04.010. Introductory.section82.04.020. "Tax year," "taxable year."section82.04.030. "Person," "company."section82.04.035. "Plantation Christmas trees."section82.04.040. "Sale," "casual or isolated sale," "lease or rental," "adoption fee," "animal care and control agency," "animal rescue group," "animal rescue organization," "senior living community." (Effective until January 1, 2030.)section82.04.040. "Sale," "casual or isolated sale," "lease or rental," "adoption fee," "animal care and control agency," "animal rescue group," "animal rescue organization," "senior living community." (Effective January 1, 2030.)section82.04.050. "Sale at retail," "retail sale." (Effective until October 1, 2025.)section82.04.050. "Sale at retail," "retail sale." (Effective October 1, 2025.)section82.04.051. "Services rendered in respect to" — Taxation of hybrid or subsequent agreements.section82.04.060. "Sale at wholesale," "wholesale sale."section82.04.062. "Sale at wholesale," "sale at retail" excludes sale of precious metal bullion and monetized bullion — Computation of tax. (Effective until January 1, 2026.)section82.04.065. Telephone, telecommunications, and ancillary services — Definitions.section82.04.066. "Engaging within this state," "engaging within the state."section82.04.067. Substantial nexus — Engaging in business.section82.04.070. "Gross proceeds of sales."section82.04.080. "Gross income of the business."section82.04.090. "Value proceeding or accruing."section82.04.100. "Extractor."section82.04.110. "Manufacturer."section82.04.120. "To manufacture."section82.04.130. "Commercial or industrial use."section82.04.140. "Business."section82.04.150. "Engaging in business."section82.04.160. "Cash discount."section82.04.170. "Tuition fee."section82.04.180. "Successor."section82.04.190. "Consumer."section82.04.192. Digital products definitions. (Effective until October 1, 2025.)section82.04.192. Digital products definitions. (Effective October 1, 2025.)section82.04.200. "In this state," "within this state."section82.04.210. "By-product."section82.04.212. "Retail store or outlet."section82.04.213. "Agricultural product," "farmer," "cannabis."section82.04.214. "Newspaper."section82.04.215. "Computer," "computer software," "custom software," "customization of prewritten computer software," "master copies," "prewritten computer software," "retained rights."section82.04.216. Exclusion of steam, electricity, or electrical energy from definition of certain terms.section82.04.217. "Direct service industrial customer," "aluminum smelter."section82.04.220. Business and occupation tax imposed.section82.04.230. Tax upon extractors. (Effective until January 1, 2027.)section82.04.230. Tax upon extractors. (Effective January 1, 2027.)section82.04.240. Tax on manufacturers. (Effective until January 1, 2027.)section82.04.240. Tax on manufacturers. (Effective January 1, 2027.)section82.04.241. Manufacturers — Semiconductor materials. (Contingent effective date; contingent expiration date.)section82.04.250. Tax on retailers. (Effective until January 1, 2027.)section82.04.250. Tax on retailers. (Effective January 1, 2027.)section82.04.255. Tax on real estate brokers.section82.04.257. Tax on digital products and services. (Effective until January 1, 2027.)section82.04.257. Tax on digital products and services. (Effective January 1, 2027.)section82.04.258. Digital products — Apportionable income.section82.04.260. Tax on manufacturers and processors of various foods and by-products — Research and development organizations — Travel agents — Certain international activities — Stevedoring and associated activities — Low-level waste disposers — Insurance producers, surplus line brokers, and title insurance agents — Hospitals — Commercial airplane activities — Timber product activities — Canned salmon processors. (Effective until January 1, 2026.)section82.04.260. Tax on manufacturers and processors of various foods and by-products — Research and development organizations — Travel agents — Certain international activities — Stevedoring and associated activities — Low-level waste disposers — Insurance producers and surplus line brokers — Hospitals — Commercial airplane activities — Timber product activities — Canned salmon processors. (Effective January 1, 2026, until January 1, 2027.)section82.04.260. Tax on manufacturers and processors of various foods and by-products — Research and development organizations — Travel agents — Certain international activities — Stevedoring and associated activities — Low-level waste disposers — Insurance producers and surplus line brokers — Hospitals — Commercial airplane activities — Timber product activities — Canned salmon processors. (Effective January 1, 2027, until January 1, 2034.)section82.04.260. Tax on manufacturers and processors of various foods and by-products — Research and development organizations — Travel agents — Certain international activities — Stevedoring and associated activities — Low-level waste disposers — Insurance producers and surplus line brokers — Hospitals — Commercial airplane activities — Timber product activities — Canned salmon processors. (Effective January 1, 2034.)section82.04.261. Surcharge on timber and wood product manufacturers, extractors, and wholesalers. (Expires July 1, 2045.)section82.04.263. Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development. (Effective until January 1, 2027.)section82.04.263. Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development. (Effective January 1, 2027.)section82.04.270. Tax on wholesalers. (Effective until January 1, 2027.)section82.04.270. Tax on wholesalers. (Effective January 1, 2027.)section82.04.272. Tax on warehousing and reselling prescription drugs.section82.04.280. Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, government contractors — Cold storage warehouse defined — Storage warehouse defined — Periodical or magazine defined. (Effective until January 1, 2026.)section82.04.280. Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, government contractors — Cold storage warehouse defined — Storage warehouse defined — Periodical or magazine defined. (Effective January 1, 2026, until January 1, 2027.)section82.04.280. Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, government contractors — Cold storage warehouse defined — Storage warehouse defined — Periodical or magazine defined. (Effective January 1, 2027.)section82.04.281. Tax on radio and television broadcasting.section82.04.285. Tax on contests of chance. (Effective until January 1, 2027.)section82.04.285. Tax on contests of chance. (Effective January 1, 2027.)section82.04.286. Tax on horse races.section82.04.287. Tax on alternative jet fuel.section82.04.288. Surcharge on Washington taxable income over $250,000,000 — Exemptions. (Effective January 1, 2026, until December 31, 2029.)section82.04.290. Tax on service and other activities. (Effective until October 1, 2025.)section82.04.290. Tax on service and other activities. (Effective October 1, 2025, until January 1, 2026.)section82.04.290. Tax on service and other activities. (Effective January 1, 2026, until April 1, 2026.)section82.04.290. Tax on service and other activities. (Effective April 1, 2026.)section82.04.293. International investment management services — Definitions.section82.04.294. Tax on manufacturers or wholesalers of solar energy systems. (Expires July 1, 2032.)section82.04.297. Internet access — Definitions.section82.04.298. Tax on qualified grocery distribution cooperatives.section82.04.299. Workforce education investment surcharge (as amended by 2025 c 401) . (Effective January 1, 2026.)section82.04.299. Workforce education investment surcharge (as amended by 2025 c 420) . (Effective January 1, 2026.)section82.04.301. Exemptions — Certain hospitals. (Expires January 1, 2030.)section82.04.310. Exemptions — Public utilities — Electrical energy — Natural or manufactured gas.section82.04.311. Exemptions — Tobacco settlement authority.section82.04.315. Exemptions — International banking facilities.section82.04.317. Exemptions — Motor vehicle sales by manufacturers at wholesale auctions to dealers.section82.04.320. Exemptions — Insurance business.section82.04.321. Exemptions — Qualified health plan patients.section82.04.322. Exemptions — Health maintenance organization, health care service contractor, certified health plan.section82.04.323. Exemption — Washington health benefit exchange.section82.04.324. Exemptions — Qualifying blood, tissue, or blood and tissue banks.section82.04.326. Exemptions — Qualified organ procurement organizations.section82.04.327. Exemptions — Adult family homes.section82.04.330. Exemptions — Sales of agricultural products.section82.04.331. Exemptions — Wholesale sales to farmers of seed for planting, conditioning seed for planting owned by others.section82.04.332. Exemptions — Buying and selling at wholesale unprocessed milk, wheat, oats, dry peas, dry beans, lentils, triticale, canola, corn, rye, and barley.section82.04.333. Exemptions — Small harvesters.section82.04.334. Exemptions — Standing timber.section82.04.335. Exemptions — Agricultural fairs.section82.04.337. Exemptions — Amounts received by hop growers or dealers for processed hops shipped outside the state.section82.04.338. Exemptions — Hop commodity commission or hop commodity board business.section82.04.339. Exemptions — Day care provided by churches.section82.04.340. Exemptions — Boxing, sparring, or wrestling matches.section82.04.350. Exemptions — Racing.section82.04.355. Exemptions — Ride sharing.section82.04.360. Exemptions — Employees — Independent contractors — Booth renters.section82.04.363. Exemptions — Camp or conference center — Items sold or furnished by nonprofit organization.section82.04.367. Exemptions — Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans.section82.04.368. Exemptions — Nonprofit organizations — Credit and debt services.section82.04.370. Exemptions — Certain fraternal and beneficiary organizations.section82.04.380. Exemptions — Certain corporations furnishing aid and relief.section82.04.385. Exemptions — Operation of sheltered workshops.section82.04.390. Exemptions — Amounts derived from sale of real estate. (Effective until April 1, 2026.)section82.04.390. Exemptions — Amounts derived from sale of real estate. (Effective April 1, 2026.)section82.04.392. Exemptions — Mortgage brokers' third-party provider services trust accounts.section82.04.399. Exemptions — Sales of academic transcripts.section82.04.405. Exemptions — Credit unions. (Effective until January 1, 2026.)section82.04.405. Credit unions — Tax — Exemptions. (Effective January 1, 2026.)section82.04.408. Exemptions — Housing finance commission.section82.04.410. Exemptions — Hatching eggs and poultry.section82.04.415. Exemptions — Sand, gravel and rock taken from county or city pits or quarries, processing and handling costs.section82.04.416. Exemptions — Operation of state route No. 16.section82.04.418. Exemptions — Grants by United States government to municipal corporations or political subdivisions.section82.04.419. Exemptions — County, city, town, school district, or fire district activity.section82.04.421. Exemptions — Out-of-state membership sales in discount programs.section82.04.422. Exemptions — Wholesale sales of motor vehicles.section82.04.423. Exemptions — Sales by certain out-of-state persons to or through direct seller's representatives.section82.04.425. Exemptions — Accommodation sales.section82.04.426. Exemptions — Semiconductor microchips. (Contingent effective date; contingent expiration date.)section82.04.427. Exemptions and credits — Pollution control facilities.section82.04.431. "Health or social welfare organization" defined — Conditions for exemption — "Health or social welfare services" defined.section82.04.432. Deductions — Municipal sewer service fees or charges.section82.04.433. Deductions — Sales of fuel for consumption outside United States' waters by vessels in foreign commerce.section82.04.434. Credit — Public safety standards and testing. (Effective until January 1, 2026.)section82.04.436. Credit — Manufacture of alternative jet fuel.section82.04.440. Credit — Persons taxable on multiple activities.section82.04.447. Credit — Natural or manufactured gas purchased by direct service industrial customers — Reports.section82.04.448. Credit — Manufacturing semiconductor materials. (Contingent effective date; contingent expiration date.)section82.04.449. Credit — Washington customized employment training program — Report to the legislature. (Expires July 1, 2033.)section82.04.450. Value of products, how determined.section82.04.460. Apportionable income — Taxable in Washington and another state. (Effective until January 1, 2034.)section82.04.460. Apportionable income — Taxable in Washington and another state. (Effective January 1, 2034.)section82.04.462. Apportionable income.section82.04.470. Wholesale sale — Reseller permit — Exemption certificates — Burden of proof — Tax liability.section82.04.480. Sales in own name — Sales as agent.section82.04.500. Tax part of operating overhead.section82.04.510. General administrative provisions invoked.section82.04.520. Administrative provisions for motor vehicle sales by courtesy dealers.section82.04.530. Telecommunications service providers — Calculation of gross proceeds.section82.04.535. Gross proceeds of sales calculation for mobile telecommunications service provider.section82.04.540. Professional employer organizations — Taxable under RCW 82.04.290 (2) — Deduction.section82.04.545. Exemptions — Sales of electricity or gas to silicon smelters. (Contingent expiration date.)section82.04.600. Exemptions — Materials printed in county, city, town, school district, educational service district, library or library district.section82.04.601. Exemptions — Affixing stamp services for cigarette sales.section82.04.610. Exemptions — Import or export commerce.section82.04.615. Exemptions — Certain limited purpose public corporations, commissions, and authorities.section82.04.620. Exemptions — Certain prescription drugs.section82.04.627. Exemptions — Commercial airplane parts.section82.04.628. Exemptions — Commercial fertilizer, agricultural crop protection products, and seed.section82.04.635. Exemptions — Nonprofits providing legal services to low-income persons.section82.04.640. Exemptions — Washington vaccine association — Certain assessments received.section82.04.645. Exemptions — Financial institutions — Amounts received from certain affiliated persons.section82.04.650. Exemptions — Investment conduits and securitization entities.section82.04.655. Exemptions — Joint municipal utility services authorities.section82.04.660. Exemptions — Environmental handling charges — Mercury-containing lights. (Effective until January 1, 2035.)section82.04.665. Exemptions — Adaptive recreational and rehabilitation facilities. (Expires January 1, 2035.)section82.04.750. Exemptions — Restaurant employee meals.section82.04.755. Exemptions — Grants received by a nonprofit organization for the program established under RCW 70A.200.140 (1)(b)(ii).section82.04.756. Exemptions — Cannabis cooperatives.section82.04.758. Exceptions — Services for farms.section82.04.759. Exemptions — Newspapers — Eligible digital content. (Effective until January 1, 2026.)section82.04.759. Exemptions — Newspapers — Eligible digital content. (Effective January 1, 2026, until January 1, 2034.)section82.04.760. Tax preferences — Expiration dates.section82.04.765. Exemptions — Receipts attributable to assessment on architectural paint imposed pursuant to chapter 70A.515 RCW.section82.04.767. Exemptions — Qualifying grants — National emergency or state of emergency.section82.04.769. Application of chapter — Allowances, offset credits, and price ceiling units under chapter 70A.65 RCW.section82.04.770. Deduction of amounts derived from charge collected pursuant to chapter 70A.530 RCW.section82.04.775. Application of chapter — Amounts received under chapter 70A.535 RCW.section82.04.777. Application of chapter — Amounts received under chapter 70A.555 RCW.section82.04.900. Construction — 1961 c 15.section82.04.2403. Manufacturer tax not applicable to cleaning fish.section82.04.2404. Manufacturers — Processors for hire — Semiconductor materials. (Expires January 1, 2034.)section82.04.2602. Tax on commercial airplane activities — Conditions for rate reduction.section82.04.2905. Tax on providing day care. (Effective until January 1, 2027.)section82.04.2905. Tax on providing day care. (Effective January 1, 2027.)section82.04.2906. Tax on certain chemical dependency services. (Effective until January 1, 2027.)section82.04.2906. Tax on certain chemical dependency services. (Effective January 1, 2027.)section82.04.2907. Tax on royalties.section82.04.2908. Tax on provision of room and domiciliary care to assisted living facility residents.section82.04.2909. Tax on aluminum smelters. (Expires January 1, 2027.)section82.04.3395. Exemptions — Child care resource and referral services by nonprofit organizations.section82.04.3651. Exemptions — Amounts received by nonprofit organizations for fund-raising activities.section82.04.4201. Exemptions — Sales/leasebacks by regional transit authorities.section82.04.4251. Exemptions — Convention and tourism promotion.section82.04.4261. Exemptions — Federal small business innovation research program.section82.04.4262. Exemptions — Federal small business technology transfer program.section82.04.4263. Exemptions — Income received by the life sciences discovery fund authority.section82.04.4264. Exemptions — Nonprofit assisted living facilities — Room and domiciliary care.section82.04.4265. Exemptions — Comprehensive cancer centers.section82.04.4266. Exemptions — Fruit and vegetable businesses. (Expires July 1, 2035.)section82.04.4267. Exemptions — Operation of parking/business improvement areas.section82.04.4268. Exemptions — Dairy product businesses. (Expires July 1, 2035.)section82.04.4269. Exemptions — Seafood product businesses. (Expires July 1, 2035.)section82.04.4271. Deductions — Membership fees and certain service fees by nonprofit youth organization.section82.04.4272. Deductions — Direct mail delivery charges.section82.04.4274. Deductions — Nonprofit management companies — Personnel performing on-site functions.section82.04.4275. Deductions — Child welfare services.section82.04.4276. Deductions — Loans to rural electric cooperatives. (Expires January 1, 2034.)section82.04.4281. Deductions — Investments, dividends, interest on loans. (Effective until January 1, 2026.)section82.04.4281. Deductions — Investments, dividends, interest on loans — Rules. (Effective January 1, 2026.)section82.04.4282. Deductions — Fees, dues, charges.section82.04.4283. Deductions — Cash discount taken by purchaser.section82.04.4284. Deductions — Bad debts.section82.04.4285. Deductions — Motor vehicle fuel and special fuel taxes.section82.04.4286. Deductions — Nontaxable business.section82.04.4287. Deductions — Compensation for receiving, washing, etc., horticultural products for person exempt under RCW 82.04.330 — Materials and supplies used.section82.04.4289. Exemption — Compensation for patient services or attendant sales of drugs dispensed pursuant to prescription by certain nonprofit organizations.section82.04.4290. Deductions — Mental health services or substance use disorder treatment services. (Expires January 1, 2032.)section82.04.4291. Deductions — Compensation received by a political subdivision from another political subdivision for services taxable under RCW 82.04.290 .section82.04.4292. Deductions — Interest on investments or loans secured by mortgages or deeds of trust.section82.04.4293. Deductions — Interest on obligations of the state, its political subdivisions, and municipal corporations.section82.04.4294. Deductions — Interest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives.section82.04.4295. Deductions — Manufacturing activities completed outside the United States.section82.04.4296. Deductions — Reimbursement for accommodation expenditures by funeral homes.section82.04.4297. Deductions — Compensation from public entities for health or social welfare services — Exception.section82.04.4298. Deductions — Repair, maintenance, replacement, etc., of residential structures and commonly held property — Eligible organizations. (Effective until January 1, 2028.)section82.04.4298. Deductions — Repair, maintenance, replacement, management, or improvement of residential structures and common elements — Eligible organizations. (Effective January 1, 2028.)section82.04.4311. Deductions — Compensation received under the federal medicare program by certain hospitals or health centers.section82.04.4327. Deductions — Artistic and cultural organizations.section82.04.4328. "Artistic or cultural organization" defined.section82.04.4331. Deductions — Insurance claims for state health care coverage.section82.04.4332. Deductions — Tuition fees of foreign degree-granting institutions.section82.04.4337. Deductions — Certain amounts received by assisted living facilities.section82.04.4339. Deductions — Salmon recovery grants.section82.04.4361. Credit — Alternative jet fuel.section82.04.4451. Credit against tax due — Maximum credit — Table.section82.04.4461. Credit — Preproduction development expenditures. (Expires July 1, 2040.)section82.04.4463. Credit — Property and leasehold taxes paid on property used for manufacture of commercial airplanes. (Expires July 1, 2040.)section82.04.4481. Credit — Property taxes paid by aluminum smelter.section82.04.4482. Credit — Sales of electricity or gas to an aluminum smelter.section82.04.4486. Credit — Syrup taxes paid by buyer.section82.04.4488. Credit — Conversion to worker-owned cooperative, employee ownership trust, or employee stock ownership plan. (Expires July 1, 2026.)section82.04.4489. Credit — Motion picture competitiveness program.section82.04.4496. Credit — Clean alternative fuel commercial vehicles.section82.04.4497. Credit — Sale or exchange of long-term capital assets. (Expires January 1, 2026.)section82.04.4499. Credit — Equitable access to credit program. (Expires July 1, 2027.)section82.04.29001. Creation and distribution of custom software — Customization of prewritten computer software — Taxable services.section82.04.29002. Additional tax on certain business and service activities.section82.04.29004. Additional tax on financial institutions. (Effective until October 1, 2025.)section82.04.29004. Additional tax on financial institutions. (Effective October 1, 2025, until January 1, 2026.)section82.04.29004. Additional tax on financial institutions. (Effective January 1, 2026.)section82.04.29005. Tax on loan interest — 2012 2nd sp.s. c 6.section82.04.43391. Deductions — Commercial aircraft loan interest and fees.section82.04.43392. Deductions — Qualified dispute resolution centers.section82.04.43393. Deductions — Paymaster services.section82.04.43395. Deductions — Accountable community of health.section82.04.43396. Deductions — Scan-down allowances.section82.04.43397. Deductions — Processors of electronic transactions. (Effective January 1, 2026.)section82.04.44525. Credit — New employment for international service activities in eligible areas — Designation of census tracts for eligibility — Records — Tax due upon ineligibility — Interest assessment — Information from employment security department. (Effective until January 1, 2026.)
Source: WA Statutes (Official Site)URL: https://app.leg.wa.gov/RCW/default.aspx?cite=82.04&full=trueFetched: 6/29/2026