Director's Rule 5-112

Commercial or industrial use

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Commercial or industrial use

(1) Definition. The term 'commercial or industrial use' means the following uses of products; including by-products, by the extractor or manufacturer thereof:

(a) Any use as a consumer (SMC 5.30.025 (G));

(b)  Any use in the manufacturing of articles, substances or commodities (SMC 5.30.035 (H)); and

(c) Consigning, shipping or transferring extracted or manufactured products to another either without consideration or in the performance of contracts.

(2) Examples. Following are examples of commercial or industrial use:

(a) The use of lumber by the manufacturer thereof to build a shed for its own use.

(b) The use of a motor truck by the manufacturer thereof as a service truck for itself.

(c) The use by a boat manufacturer of patterns, jigs, and dies which it has manufactured.

(d) The use by a contractor building or improving a publicly owned road of crushed rock or pit run gravel which it has extracted.

(3) Business license tax. Persons manufacturing or extracting tangible personal property for commercial or industrial use are subject to tax under the classifications manufacturing or extracting, as the case may be. The tax is measured by the value of the product manufactured or extracted and used.

Effective: July 15, 2005


I, Kenneth J. Nakatsu, Director of the Department of Executive Administration of the City of Seattle, do hereby certify under penalty of perjury of law, that the within and foregoing is a true and correct copy as adopted by the City of Seattle, Department of Executive Administration.

City Finance

Jamie Carnell, Interim Director
Address: 700 Fifth Ave., 4th Floor, Seattle, WA, 98104
Mailing Address: P.O. Box 34214, Seattle, WA, 98124-4214
Phone: (206) 684-8484
Hours: 8:30 a.m.-4 p.m.

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City Finance manages the financial operations of the City of Seattle and oversees the City’s financial controls and enterprise reporting while working to achieve the goals set by the Mayor and the City Council.