Taxes & Incentives

Washington State Incentives and Taxes

Incentive Programs Deferrals,
Exemptions, and Credits

_{No corporate income tax}
_{No personal income tax}
_{No unitary tax (VAT)}
_{No inventory tax}
_{No tax on interest, dividends or capital gains}

Washington State has an assortment of tax incentives. Those most frequently implemented by Snohomish County businesses
are highlighted and listed below. For a complete overview of State incentives, please visit Washington State Department of Revenue.

All manufacturing equipment is exempt from the Sales and Use Tax.

Aerospace firms incentives:

_{Reduced B&O Tax rate for aerospace manufacturing.}
_{Credit against the B&O Tax for pre-production development expenditures.}
_{Credit against the B&O Tax for property/leasehold taxes paid on aerospace manufacturing facilities.}
_{Sales & Use Tax exemption for computer hardware/software and peripherals.}

High technology firms incentives:

_{Manufacturers of solar energy systems/components have a reduced B&O Tax rate. Additionally, installed equipment for the generation of alternative energy is exempt from the Sales Tax}.

Property Tax

Agriculture & food processing incentives:

_{B&O Tax exemption/deduction for manufacturers of fresh fruits and vegetables, seafood, and dairy products.}

Job training financial support:

_{The Job Skills Program offers customized training through the Community College system with 50% cost share by the State.}
_{The Customized Employment Training Program provides a credit against the B&O Tax for 50% of training costs.}

Property taxes are assessed and collected by the Snohomish County government. Taxes are distributed to the County, cities, school/hospital/library districts and the State.

Stanwood Property Tax Rate

$1.65 per $1000 of assessed value at 100% of market value.

Combined Snohomish County Tax Rate for Stanwood Property

10.78 %

Snohomish County Real and Personal Property Tax Rate

_{$11.20 per $1000 of assessed value at 100% of market value.}

_{Tax rates ranged from $ 7.6242 to $14.3786 depending on where you live in the County.}

_{Detailed property tax information is available through the Snohomish County Assessor}

Retail Sales Tax Rate

Washington State – 6.5%

Snohomish County – 0%

City of Stanwood – 2.7%
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Minimum Combined Sales Tax Rate Value – 9.2%

Retail Sales and Use Tax

The Sales and Use Tax is Washington’s principal revenue source. It is comprised of a state component at 6.5% and a local component at 1.2% – 3.8%; total 7.7% – 10.3%. Businesses making retail sales in Washington collect sales tax from their customer. A retail sale is the sale of tangible personal property. It is also the sale of services such as installation, repair, cleaning, altering, improving, construction, and decorating. Major exemptions to the sales tax include purchases for resale, groceries and prescription drugs, interstate and foreign sales, and manufacturing/processing equipment. The Use Tax is applied on taxable items purchased in another state and brought to Washington if that state did not collect sales tax. Use Tax rates are the same as Sales Tax.

Complete information on the Sales and Use Tax can be found through the Department of Revenue.

Business and Occupation Tax (B&O)

In place of a corporate income tax, Washington levies a B&O tax on the gross receipts of business activity occurring in the State. The primary rate classifications are:

CLASSIFICATION	RATE
Manufacturing (general)	0.484%
Manufacturing (aerospace – incl. parts, assemblies, and tooling)	0.2904%
Wholesaling	0.484%
Retailing	0.471%
Aerospace Product Development	0.9%
Services	1.5%

Complete information on the B&O tax and additional rate categories can be found through the Department of Revenue.

Local Taxes

Snohomish County cities use the issuance of the business license as their taxing vehicle. These license fees are not consistent from city to city. Some are a flat fee, some are a formula that can include number of employees, type of business and size of facility The City of Everett uses the local option Business and Occupation Tax. There is no license required on businesses located in unincorporated Snohomish County. Please refer to the local cities for tax information.