Multiple Activities Tax Credit (MATC)

Overview

The Multiple Activities Tax Credit (MATC) is available for persons who engage in multiple taxable activities in one or more cities with an eligible gross receipts tax. If the 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 Seattle Municipal Code Chapter 5.45 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.

Download the MATC form and instructions.

Who qualifies for the MATC credit?

Any company that extracts, manufactures, or prints and then sells a product within Seattle that has been subject to an eligible gross receipts tax on the extraction, manufacture, or printing of a product is eligible for the credit (See SMC 5.45.070). Any person that manufactures a product outside Seattle in another city that imposes an eligible gross receipt tax, and then sells the product into Seattle is eligible for the credit. In order to qualify as an eligible gross receipt tax, the tax must be imposed at the local level. If you have questions whether or not a tax qualifies or is eligible, please call or email us as instructed below.

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, a Seattle based manufacturer, sells their manufactured product within Seattle. Company A will report its gross sales and compute the Seattle business license tax (B&O tax) under both the manufacturing and retail classification. The MATC will be allowed under the selling classification for the manufacturing tax paid so that the business license tax is only paid once.

Company B, a Bellevue based manufacturer, sells their manufactured product in Seattle. Company B reports and pays a B&O tax in Bellevue under the manufacturing classification. Company B will report to Seattle its gross sales and compute the tax under the applicable selling classification. The MATC will be allowed against the Seattle selling tax up to the amount of tax paid to Bellevue on the manufacturing activity associated with those sales.

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