Tag: Tax exemption
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Long-Term Rentals Are Not Subject to Washington’s B&O Tax
If you rent out residential or commercial real estate in Washington on a long-term basis, that rental income is not subject to the state’s business and occupation (B&O) tax—or to retail sales tax. The exemption is well established, but it is narrower than many owners assume: it turns on how long the tenant stays and…
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Washington Manufacturers: Do Not Overlook the Sales/Use Tax Exemption for Machinery and Equipment
Washington manufacturers often focus on income, payroll, and B&O tax planning, but the sales/use tax treatment of machinery and equipment can be just as important when a business is expanding a production line, modernizing a plant, replacing critical components, or building out a research or testing function. The Washington Department of Revenue’s Manufacturers’ Sales and…