State Local Taxes 08

Table 14. TAXATION

Washington is one of seven states that does not tax individual income, and one of only four states that does not have a corporate tax. In addition, Washington has implemented a number of business and tax incentives to reduce the cost of business relocation and expansion in the state. New and existing manufacturers, research and development firms and certain high technology companies in Washington can benefit from several targeted tax incentives. Corporate Income Tax/Franchise Tax Rate (range) Formula (e.g. Sales, Property & Payroll) Federal Taxes Deductible Accelerated Depreciation Permitted (Yes or No) Personal Income Tax Rate (Range) Earned Income Unearned Income (e.g. Dividend) Local Occupation Tax (Paid by Employee) City Residents Non-City Residents Local Wage Tax (Paid by Employer) City Residents Non-City Residents Gross Receipts Tax Rate by Type of Business Manufacturing 0.00484 on parts sold in state Wholesaling 0.00484 on sales in state Retailing 0.00471 on sales in state Service and other activities 0.015 on sales in state Sales/Use Tax Rate State Local Total Sales Tax Rate by Utility: Electric Power Natural Gas Fuel Oil Water Sewer Hazardous Waste Disposal Telephone Local Long Distance In State Long Distance Out of State Machinery & Equipment Subject to Sales/Use Tax Production Non-Production Pollution Control Office Furniture/Fixtures/Equipment Sales/Use Tax (Yes or No) on Office Building Construction Materials Industrial Building Construction Materials Manufacturers' Raw Materials Standard Software Custom Software Intangible Property Washington does not tax intangible property Real Property Tax Rates Major Employment Centers City Millage State/County Millage School Millage

State none none none none State none none none Rate none none Rate none none

Local none none none none Local none none none Basis none none Basis none none

6.5% 1.7% 8.2% none none none none none none 6% City Utility Users Tax 6% City Utility Users Tax 6% City Utility Users Tax none 8.2% none 8.2% yes no no no no

Vancouver 2.25853 3.05225 4.03107

Camas 3.48246 3.05225 4.03107

Washougal Ridgefield Battle Ground 2.8015 0.96561 1.42984 3.05225 3.05225 3.05225 3.36216 1.4553 2.49776

Special District Millage 0.85702 0.67503 0.67503 Total Millage 10.19887 11.24081 9.89094 Assessment Ratio (%) 100% 100% 100% Effective Rate per $100 1.04789 1.15705 1.11845 Personal Property Taxes are levied on real property and the assets of businesses. State Property Tax Effective Rate per $100. Real and Personal Property are taxes at the same Millage rate. Included in State/County Millage Real Property Included in State/County Millage Personal Property (machinery/equipment) Subject to Personal Property Tax Production Machinery & Equipment yes Non Production Machinery & Equipment yes Pollution Control yes Inventory no Raw Materials no Work in Progress no Finished Goods no Freeport Legislation no Applicable to Warehousing no Applicable to Manufacturing no Goods Stored in a Public Warehouse no Office Furniture-Fixtures yes Computer Equipment yes Workstations yes Telephones yes Furniture yes Company Vehicles no Standard Software yes Custom Software yes

2.01877 7.49193 100% 0.78934

805 Broadway, Suite 412, Vancouver, WA 98860 tel 360-694-5006 fax 360-576-1054 www.credc.org

0.33061 7.31046 100% 0.61128