A Washington State Department of Revenue program is available to wholesalers, retail distribution centers, and third party warehousers. The exemption is available for warehouses of 200,000 or more square feet. Sales tax on the construction costs for new warehouses (or an expansion to a warehouse that meets the 200,000 square foot requirement) qualify for 100% exemption. Material-handling equipment and racking equipment in warehouses are eligible for 50% exemption.
Requirements for Eligibility
The program has specific requirements for eligibility. If retail sales occur at a facility, it is ineligible for the exemption. Manufacturers do not qualify for the exemption if any part of the manufacturing operation takes place in the warehouse.
More information about this program can be obtained by contacting the Department of Revenue at (800) 647-7706.