The Manufacturer's Sales and Use Tax Exemption Certificate is a vital tool for qualified manufacturers and processors for hire, enabling them to benefit from tax exemptions on manufacturing machinery and equipment. This certificate can be issued as either a Single Use Certificate, which applies to individual exempt item purchases, or a Blanket Certificate, maintaining its validity through an ongoing buyer and seller business relationship, defined by at least one sale transaction within a twelve-month period. Required details for this form include buyer/user identification, such as the Unified Business Identifier (UBI) or Revenue Tax Registration Number, alongside the name and address of both the buyer/user and the seller. It's imperative for the buyer/user to certify their qualification for the exemption by detailing their engagement in manufacturing or processing activities and affirming that the purchased items will be directly employed in these operations. Notably, House Bill 1347 has further clarified eligibility criteria, expanding it to include four-year higher education institutions for equipment used in technological research and development operations while explicitly excluding certain entities like state departments and public utilities. Furthermore, the exemption criteria cover a wide range of uses for the machinery and equipment, stipulating its direct involvement in the manufacturing process. However, the certificate does not cover consumable items, hand-powered tools, or property with a lifespan of less than one year, among others. It's crucial for sellers to retain a copy of the certificate for record-keeping purposes, excluding it from the Combined Excise Tax Return documentation, emphasizing the legal obligations and penalties associated with fraudulent claims. This exemption certificate represents a significant fiscal management tool for eligible manufacturers and processors, facilitating a more cost-effective procurement of essential manufacturing machinery and equipment.
| Question | Answer |
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| Form Name | Form Rev 27 0021E |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | Excise, Consumable, clarifies, 0021e |
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Manufacturer’s Sales and Use Tax Exemption Certificate |
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For Manufacturing Machinery and Equipment |
Type of Certificate |
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Single Use Certificate |
A single use certificate must be used each time an exempt item is a purchased. |
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Blanket Certificate |
Blanket certificates are valid for as long as the buyer and seller have a recurring business relationship. A |
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“recurring business relationship” means at least one sale transaction within a period of twelve months. |
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RCW 82.08.050 (7)(c)). |
1.Buyer/User UBI/Revenue Tax Registration No.
2.Name of Buyer/User
3.Address of Buyer/User
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4. Name of Seller
The buyer/user certifies that it is a qualified manufacturer engaged in manufacturing or processing for hire activities and that the items purchased will be used directly in manufacturing or processing for hire operation. The seller must keep a copy of
the certificate for his/her records. Do not attach to the Combined Excise Tax Return.
House Bill 1347 (Laws of 2011) clarifies those qualified to use the manufacturing machinery and equipment exemption, and updates the definition of “manufacturer,” “manufacturing,” and “manufacturing operation.”
Changes include, but are not limited to:
The state and its departments and institutions, public utilities, and others taxable under public utility tax ARE NOT eligible for the exemption.
To be considered “used directly” in a manufacturing operation or research and development operation, the machinery and equipment must:
Act upon or interact with an item of tangible personal property;
Convey, transport, handle, or temporarily store an item of tangible personal property at the manufacturing site;
Control, guide, measure, verify, align, regulate, or test tangible personal property;
Provide physical support for or access to tangible personal property;
Produce steam or mechanical power for, or lubricate machinery and equipment;
Produce another item of tangible personal property for use in the manufacturing operation or research and development operation;
Place tangible personal property in the container, package, or wrapping in which the tangible personal property is normally sold or transported;
Be integral to research and development as defined in RCW 82.63.010; or
Be for repair and replacement parts or repair and cleaning labor for eligible items.
The sales and use tax exemption does not include:
Consumable items;
Property with a useful life of less than one year;
Building fixtures that are not integral to the manufacturing operation that are permanently affixed to and become a physical part of a building. This includes utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical.
This certificate is given with full knowledge of, and subject to, the legally prescribed penalties for fraud and tax evasion.
Authorized Agent of Buyer/User (please print) |
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Authorized Signature |
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Date |
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For tax assistance or to request this document in an alternate format, visit http://dor.wa.gov or call
REV 27 0021e (10/5/11)