Washington DOR Clarifies B&O Tax on Nonprofit Animal Rescue Income, Fees

The Washington Department of Revenue (DOR) has issued guidance clarifying the tax treatment of income for nonprofit animal rescue organizations. Income from mandatory pet adoption fees is subject to the business and occupation (B&O) tax under the Service and Other Activities classification, as it is considered payment for services related to animal care and placement. The guidance also addresses the taxability of donations, sales of goods, fundraising events, and purchases made by these organizations, with the Small Business B&O Tax Credit potentially offsetting tax liability for organizations with annual taxable income of $56,000 or less. [Wash. Dept of Revenue, Industry ...