Business & Occupation Tax

The City of Everett Business and Occupation Tax (B&O) is based on the gross receipts of your business. This is similar to the taxation method used by the State of Washington. If your business location is outside the city limits of Everett, you are taxed only on revenues earned within the city.

The present tax rate is 0.1% (0.001). This is multiplied by your gross receipts to compute your taxes due. Please report any revenues earned prior to licensing.

Tax Form Information
Tax forms will be mailed automatically. Please complete and return the tax form by the due date, even if no taxes are owed. If you do not return the tax form by the due date, penalties and interest will be assessed. To close your account, you must return your general business license and submit a written request.

Penalties Increase for late B&O Taxes
The Washington State Department of Revenue, through legislation (ESSB 6138) passed on July 1, 2015, increased the penalty rates for late payment of Business and Occupation (B&O) taxes.  This change was effective on August 1, 2015, and increases late penalty rates as follows:
 
  • From 5 percent to 9 percent of the amount of the tax if payment is postmarked after the due date
  • From 15 percent to 19 percent of the amount of the tax if payment is postmarked after the last day of the month following the due date; and
  • From 25 percent to 29 percent if postmarked after the last day of the second month following the due date
  • No penalty may be less than five dollars.

All individuals and companies doing business in Everett, whether located inside or outside the City limits, must register with the City Clerk’s Office. B&O tax is a gross receipts tax and is measured on the value of products, gross proceeds of sale, or gross income of the business.

For more information about the new state legislation, click here

Tax Code Changes of Note
In accordance with RCW 35.102.130, the City of Everett has adopted Allocation and Apportionment provisions as part of the Business & Occupation (B&O) Tax changes that took effect on January 1, 2008. These changes were a legislative requirement (EHB 2030) for all cities that currently collect B&O Taxes.  Beginning January 1, 2008, specific rules for revenue allocation and apportionment to the jurisdictions in which you engage in business will vary depending on the classification under which your business income is reported.  

The forms listed below contain additional information regarding multiple activities tax credit and service income apportionment.