Did your business participate in one of the below credits, exemptions, deferrals or preferential business & occupation (B&O) tax rates in 2018 offered by the state of Washington? If yes, you may have a responsibility to file an Annual Tax Performance Report. The Annual Tax Performance report replaces the Annual Survey and Annual Report required to be filed in previous years. The new Annual Performance Report should make filing easier for businesses who take advantage of Washington’s tax incentives. The report must be filed electronically with the Department of Revenue by May 31, 2019. You may file the report by logging into your Secure Access Washington (SAW) account with the Department of Revenue.
If you participated in any of the following incentive programs, you are required to file the Annual Tax Performance Report:
|Credits||Public Research University Machinery and Equipment Sales & Use Tax Exemption|
|Aerospace Preproduction Expenditures B&O Tax Credit||Renewable Energy Equipment Sales & Use Tax Exemption|
|Aerospace Property & Leasehold Excise Taxes B&O Tax Credit||Seafood Product Manufacturers B&O Tax Exemption|
|Aluminum Smelters Property Tax B&O Tax Credit||Semiconductor Sales & Use Tax Exemption (Expires December 1, 2018)|
|Aluminum Smelters Sales & Use Tax Credit||Solar Energy Systems Manufacturers or Processors Sales & Use Tax Exemption (Expires December 1, 2018)|
|Customized Employment Training Credit (Program expires July 1, 2017)||Deferrals|
|Washington Filmworks Contributors B&O Tax Credit||Biotechnology & Medical Device Manufacturing Sales & Use Tax Deferral (Expired January 1, 2017)|
|Renewable Energy Light and Power Business PUT Credit||Cold Storage Warehouse Sales & Use Tax Deferral|
|B&O and PUT Credit for Hiring Unemployed Veterans||Dairy Product Manufacturers Sales & Use Tax Deferral|
|Deductions & Exemptions||Fruit and Vegetable Processors Sales & Use Tax Deferral|
|Aerospace Computer, Software, and Peripherals Sales & Use Tax Exemption||High Technology Sales & Use Tax Deferral (Expired January 1, 2015)*|
|Aerospace FAR Part 145 Repair Station Sales & Use Tax Exemption||High Unemployment County Sales & Use Tax Deferral (Expires July 1, 2020)|
|Aerospace Leasehold Excise Tax Exemption for Superefficient Airplane Manufacturers||Manufacturer’s Sales & Use Tax Deferral (No longer taking applications for program. All projects allowed by statute were approved as of March 2016)|
|Aerospace Manufacturing Site Sales & Use Tax Exemption||Rural County Sales & Use Tax Deferral|
|Aerospace Personal Property Tax Exemption for Superefficient Airplane Manufacturers||Seafood Product Manufacturers Sales & Use Tax Deferral|
|Agricultural Crop Protection Products||Reduced Rates|
|Aluminum Smelters Use Tax Exemption for Compressed/Liquefied Natural Gas||Aerospace FAR Part 145 Repair Stations Reduced B&O Tax Rate|
|Dairy Products Manufacturers B&O Tax Deduction||Aerospace Manufacturers Reduced B&O Tax Rates|
|Data Center Sales & Use Tax Exemption||Aerospace Product Development Reduced B&O Tax Rate|
|Electrolytic Processing industry Tax Incentive||Aluminum Smelters Reduced B&O Tax Rates|
|Fruit and Vegetable Businesses B&O Tax Exemption||Newspaper Industry Reduced B&O Rate|
|Gas Distribution Business Sales & Use Tax Exemption||Semiconductor Manufacturers Reduced B&O Rate|
|Government Funded Mental Health Services Deduction||Solar Energy Systems Manufacturers or Wholesalers Reduced B&O Rates (Expires June 30, 2017)|
|Hog Fuel Sales & Use Tax Exemption||Timber Industry B&O Reduced Rates|
If you fail to file the performance report for a tax incentive claimed for the previous calendar year, a 35 percent penalty of the amount of the tax preference claimed will be assessed plus an additional 15 percent of the amount of the tax preference claimed for the previous calendar year if the person has previously been assessed the 35 percent penalty for late filing of a annual report and/or survey.
You must continue to file annual tax performance report even if the incentive claimed has expired.
All performance reports must be filed electronically. The Department of Revenue may allow you to file an extension of time to file the survey so long as you request the extension prior to the due date of May 31, 2019.
If you have any questions or need assistance in filing the Annual Tax Performance Report, please contact State and Local Tax Partner, Rachel A. Le Mieux, or State and Local Tax Senior Manager, Sonjia Barker at (206) 382-7777.