The MATC is available when businesses or persons engage in multiple taxable activities in one or more cities with an eligible gross receipts tax, or external credit.
The MATC also applies to businesses or persons who engage in business activities that are subject to tax under two or more tax classifications on the same revenue, or internal credit. If the business or 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 the Tacoma Municipal Code Chapter 6A.30.070, which covers manufacturing and extracting tax owed, 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.
Qualifying for the MATC
Any business or person that extracts, manufactures, or prints and then sells a product within the City of Tacoma that has been subject to an eligible gross receipts tax on the extraction, manufacture, or printing of a product is eligible for the credit. Any business or person that manufactures a product outside Tacoma in another city that imposes an eligible gross receipts tax, and then sells the product into the City of Tacoma is eligible for the credit. In order to qualify as an eligible gross receipt tax, the tax must be imposed at the local level.