Washington’s tax structure provides several advantages to businesses operating within the state. As a gross receipts tax, the B&O tax is simple to calculate, predictable and consistent. The absence of any state or local income taxes on businesses or individuals is a huge advantage over most other states, both for the business owners directly, and in terms of attracting bright, talented employees to work in the state. Sales tax exemptions are provided for key industries such as manufacturing, aerospace, semiconductors, farming, renewable energy and biofuels. Washington’s property tax rates are also quite reasonable compared to many of the other U.S. states. Overall, the state’s tax system contributes to the generally favorable business climate that the state provides.