Sales Tax Deferral on Construction
For qualifying manufacturers, deferrals are available on the sales
tax associated with the construction of new manufacturing facilities.
Warehouse Distribution Facilities
Qualifying distribution centers may apply for exemption of the state
portion of sales tax on the construction of new warehouse distribution
facilities over 200,000 square feet.
Distressed Area Business & Occupation Tax Credit
A $2,000 or $4,000 credit against the Business and Occupation Tax
is available for each new employment position created by a qualifying
Sales and Use Tax Exemption on Machinery and Equipment
If qualified, processors for hire and manufacturers conducting research
and development are not required to pay local or state sales or
use tax on machinery and equipment used directly in the manufacturing
or research and development process. In addition, charges for labor
and services for installing machinery and equipment are exempt from
the sales or use tax.
Funding is available for qualifying public facilities improvements.
This is a special program directed by Mason County. This fund is
only available to rural communities in Washington State. Mason County
can provide public infrastructure improvements through this fund.
This is an excellent state program providing loan and grant funding
for public infrastructure improvements needed to serve industry.
Industrial Revenue Bonds
Industrial Revenue Bonds (IRBs) serve to finance the acquisition,
construction, enlargement or improvement of industrial development
facilities. These bonds are issued by local governments to honor
that purpose. The key advantage of IRBs lies in their tax-exempt
status. Interest paid to the buyer of the bonds is not subject to
federal income tax. As a result, the bond buyer will accept a lower
rate of interest on the bonds.
Major Local and State Taxes
- Unicorporated Retail Sales Tax 8.30%
- City Retail Sales Tax 8.30%
- State Occupation Tax 0.00484% on gross receipts (most manufactures)
- Property Tax Rates Average for 2005 is $11.49 (assessed per $1000 value on property)
- No corporate income tax.
- No personal income tax.
- No inventory tax.
- No unitary tax.
- No tax on interest, dividends, or capital gains.
- No local county B & O tax (in qualifying areas).
Foreign Trade Zone
Firms pay no tariffs on any imported raw materials used to create
their products when the products are shipped overseas. If these
products are sold in the U.S., companies pay duty only when the
products are shipped and only on that portion of foreign materials
that actually went into the product, not the waste. Foreign and
domestic goods may be processed or stored without payment of customs
duties and without being subject to other regulations normally applied
to customs entries. Materials maybe sorted, reassembled, repackaged,
manipulated, processed, used in manufacturing, or stored in the
Foreign Trade Zone.