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Multiple Activities Tax Credit

The MATC is available when businesses or persons engage in multiple taxable activities in one or more cities with an eligible gross receipts tax, or external credit.  The MATC also applies to businesses or persons who engage in business activities that are subject to tax under two or more tax classifications on the same revenue, or internal credit. If the business or person both manufactures and sells the product, then both activities are taxable under the applicable tax classifications.  The amount of the credit for any reporting period shall not exceed the tax liability arising under the Tacoma Municipal Code Chapter 6A.30.070, which covers manufacturing and extracting tax owed, with respect to the sale of those products. The MATC form is required to be filed and accompany the corresponding tax return, for each reporting period a credit is claimed.

Qualifying for the MATC

Any business or person that extracts, manufactures, or prints and then sells a product within the City of Tacoma that has been subject to an eligible gross receipts tax on the extraction, manufacture, or printing of a product is eligible for the credit. Any business or person that manufactures a product outside Tacoma in another city that imposes an eligible gross receipts tax, and then sells the product into the City of Tacoma is eligible for the credit. In order to qualify as an eligible gross receipt tax, the tax must be imposed at the local level.

Forms

To print a City of Tacoma Business & Occupation tax form, please visit Tacoma Services, your online source for account documents. If you need help getting your business logged in, please call (253) 591-5252 so we can walk you through the process. 
Multiple Activities Tax Credit Form
Form Instructions

Examples

These examples should be used only as a general guide. The tax status of each situation must be determined after a review of all of the facts and circumstances.
Company A is a Tacoma based manufacturer that sells their manufactured product within Tacoma. Company A will report its gross sales and compute the Tacoma B&O tax under both the manufacturing and the applicable selling classification, either retail or wholesale classification. The MATC will be allowed under the selling classification for the manufacturing tax paid so that the B&O tax is only paid once. The MATC form would be required to be completed and filed with the return.

Company B is a Bellevue based manufacturer that sells their manufactured product in Tacoma. Company B reports and pays a B&O tax in Bellevue under the manufacturing classification. Company B will report to Tacoma its gross sales and compute the tax under the applicable selling classification. The MATC will be allowed against the Tacoma selling tax up to the amount of tax paid to Bellevue on the manufacturing activity associated with those sales.  Company B would complete an MATC form for a credit of the tax paid to Bellevue.  Company B is also required to document the tax they paid to Bellevue.

Company C is a Tacoma based manufacturer that sells their manufactured product outside Tacoma. Company C reports and pays a B&O tax under the manufacturing classification only.  The MATC will not be allowed in this instance. 

Company D is a Tacoma based manufacturer that sells their manufactured product in another B&O city. Company D reports and pays a B&O tax under the manufacturing classification to Tacoma and the other city would grant the company a MATC.

Company E is a Tacoma based manufacturer that sells their manufactured product outside Washington, Company E reports and pays a B&O tax under the manufacturing classification.  The MATC does not apply in this instance.

Company F is a Tacoma taxpayer that purchases goods from another company and then resells them in Tacoma.  Company F reports and pays a B&O tax under the retailing classification if sold to the end user or they pay the B&O tax under the wholesale classification if the goods are sold to another company.  The MATC would not apply in this instance.

The material in this site is intended for general informational purposes only. While it is current at the time of publication, changes to the Tacoma Municipal Code (TMC) or state law may invalidate some of this information. In the event of a conflict between this guide and the TMC, the TMC will prevail.