(1) There shall be exempted from the total gross income upon which the taxes are computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state of Washington, as excise taxes levied or imposed upon the sale or distribution of property or services.

(2) There shall be exempted from the total gross income upon which the taxes are computed all bad debts for services incurred, rendered, or charged for during the tax year. Debts shall be deemed bad and uncollectible when the same have been written off the books of the taxpayer. In the event debts are subsequently collected, the income shall be reported on the return for the month in which the debts are collected and at the rate prevailing in the tax year when collected.

(3) There shall be exempted from the total gross income upon which the taxes are computed all cash discounts allowed and actually granted to customers of the taxpayer during the tax year. (Ord. 98-14 §4, 1998; Ord. 92-7 §7, 1992; Ord. 81-71 §5, 1981; Ord. 80-65 §3, 1980; Ord. A-657B §8, 1966. Formerly 6.02.080).