Until June 30, 2024, the following activities are subject to a reduced business and occupation (B&O) tax rate of 0.2904%: sales of standing timber that must be severed from the land within thirty months, extracting for hire timber, manufacturing or processing for hire timber into timber products or wood products, and sales at wholesale. This preferential rate also applies to the manufacturing and processing for hire of timber products into other timber products or wood products. Businesses manufacturing or processing for hire wood products or other wood products do not qualify for this reduced B&O rate. Taxpayers reporting under the reduced B&O tax rate must file all required tax returns and the annual surveys using the state’s E-file system. Also, businesses reporting under the reduced rate are subject to a surcharge at the rate of 0.00052%. Timber harvesters who extract or extract for others less than two million board feet of timber for sale or for commercial or industrial use may deduct up to $100,000 per tax year from their gross receipts. (Special Notice, Washington State Department of Revenue, September 29, 2008)