Business & Occupation (B&O) Tax

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Tumwater B&O Rate: .001 or .1%
Special Services B&O Rate:.002 or .2%

Business & Occupation (B&O) Tax

Local B&O Tax

The City of Tumwater collects and administers a local Business & Occupation tax as authorized by Tumwater Municipal Code (TMC) Chapter 5.08.

  • The tax applies to the gross revenues of businesses at the rate of one-tenth of one percent, except those engaged in certain types of service industries (see TMC 5.08.030§(Q)) which shall pay at the rate of two-tenths of one percent.
  • If the gross proceeds of sales or gross income of the business from all activities is less than $5,000 per quarter, no tax is due. 
  • The tax for annual filers is due on the last day of January. If the gross proceeds of sales or gross income of the business from all activities is less than $20,000 per year, no tax is due.
  • All businesses conducting business in Tumwater are required to file a quarterly or annual return, even if there has been no activity or no tax is due. 

Tumwater Municipal Code 5.08 - B&O Tax 

Tumwater Municipal Code 5.10 - B&O Tax Administrative Rules

B&O changes effective 1/1/2020 - starting 2020-Q1 (4/30/20 due date).

A city workgroup met over the summer of 2019 to review changes needed to the B&O model ordinance.

In the 2019 session, two bills passed that impact city B&O tax administration: HB 1403 related to service income apportionment and HB 1059 related to annual tax filing deadlines. The last major revisions to the B&O tax model ordinance took effect January 1, 2013.

The workgroup revised the model ordinance to include changes to RCW 35.102 and to reflect other changes made to state law since 2013. Cities must adopt mandatory changes to model ordinance with same effective date: January 1, 2020. Follow the links below to learn more.

B&O Model Ordinance Changes Effective 1/1/2020

Apportionment Model Rule Effective 1/1/2020

Electronic Delivery

Would you like to sign up to receive emails with online B&O tax filing information, pertinent tax/licensing updates and reminders (before the due date)? If your answer is yes,  just click the button below to get started!

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Online Filing

Our free electronic filing form is now live. Online filing requires your license # and an activity # provided by the B&O/Licensing Department. Please note each quarter will have its own activity #. Refund requests and prior period adjustments are not available online at this time, please see below for more information. If you would like to file your return online and do not have any of the required information or have any questions, please contact us at botax@ci.tumwater.wa.us or (360) 754-4136.

File Now

Filing $0 Returns Online

Please select "No" when asked if you have any receipts to report this filing period. Then all you will need to do is complete the Tax Preparer Information section and click "submit". 

Credit Card Payments

The City of Tumwater has a $3,000 credit card threshold. Payments $3,000 and over will still be able to submit a return but, will need to remit payment by check and mail to the City of Tumwater. An email confirmation* of payment due or successful processing will be sent to the email provided upon submission. We will be accepting free online tax credit card payments up to $3,000 using:

visa mastercard discover logos

*A successful submission confirmation does not necessarily mean that your payment was successful.  Please check your email to verify the credit card charge was successful or not.  If you do not see an email from botax@ci.tumwater.wa.us, please check your spam folder to ensure you will receive future correspondence from the City.  If your card was unsuccessful, you may remit payment via check.

B&O Tax Important Dates

1st Quarter – January 1st through March 31st – Due April 30th
2nd Quarter – April 1st through June 30th – Due July 31st
3rd Quarter – July 1st through September 30th – Due October 31st
4th Quarter – October 1st through December 31st – Due January 31st
Annual – January 1st through December 31st – Due January 31st

Printable Forms & Instructions

Service Income Apportionment Worksheet and Instructionspdf-icon-sm

The Service Income Apportionment Worksheet is only for business reporting apportioned sales under the Retail Service or Service & Other Activity categories, see Retail and Service Definition.

B&O Bulletinpdf-icon-sm

Tumwater B&O Quarterly Formpdf-icon-sm (print and mail with payment to the address listed below)

Tumwater B&O Annual Formpdf-icon-sm (print and mail with payment to the address listed below)

Business & Occupation Tax Refund/Amended Return Policy

All requests for amended returns, credits and refunds must be made in writing accompanying amended paper returns pursuant to TMC 5.10.100. Refunds may not be processed through our online system at this time. Please return requests to:

City of Tumwater
Attn: B&O Tax Dept
555 Israel Rd SW
Tumwater, WA 98501

Washington Department of Revenue

In addition to local B&O tax the state of Washington has a B&O tax, which is also a gross receipts tax remitted directly to the State. Tax is measured on the value of products, gross proceeds of sales, or gross income of the business.

Stay current:

WA B&O Tax FAQ

New nexus standard for retailing B&O tax

The test for determining whether an out-of-state business is subject to Washington’s business and occupation (B&O) tax changed on July 1, 2017. The change extends Washington’s “economic nexus” standard to businesses engaging in a retailing activity. As a result, a business engaged in a retailing activity has nexus with Washington State either by having a physical presence in this state or by exceeding an economic nexus threshold. (HB 2163, Chapter 28, Laws of 2017, 3rd Special Session, Part III)

Substitute Senate Bill 5581 - Bill implementation timeline

On March 14, 2019, Gov. Jay Inslee signed a bill that simplifies Washington tax responsibilities for out-of-state sellers without a physical presence in the state.

Questions?

The Business Licensing representative is available to answer any questions you may have.  You may contact the representative by either calling (360) 754-4136 or emailing licensing@ci.tumwater.wa.us